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Module 6: Billing


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Local Interconnection Services (LIS)
          Wireline Interconnection Agreement
Wireline Interconnection Agreements outline how and when customers are billed. This agreement specifies all types of billing which is dependant on the service, for example, transit and local non-transit usage.

There are three billing options for Local Exchange Service (Local/EAS) non-transit MOUís between two companies. They are:
  • Reciprocal Compensation - Terminating Party bills for Exchange Service (EAS/Local) calls according to the Interconnection Agreement MOU charges which may include EO Call Termination, Tandem Switching, Tandem Transmission Fixed and Per Mile or Internet Service Providers (ISP) Federal Communications Commission (FCC) ordered rates.

  • Bill and Keep (B&K) - Both Parties provide the Exchange Service (EAS/Local) and bill their end-users. No Exchange Service (EAS/Local) MOU monies will be transferred between the two companies.

  • Traffic Balance (TB) - If the directional balance of Exchange Service (EAS/Local) traffic on a LIS trunk group stays within a declared percentage (usually +/- 5% to 10%), bill and keep rules apply. Your Interconnection Agreement states how often traffic balance should be monitored, i.e., monthly, quarterly or on a six-month basis, etc. Exchange Service (EAS/Local) usage between the two Parties will not bill until an out-of-balance threshold has been exceeded. When either Party proves that the traffic balance threshold has been exceeded, a change of Interconnection Agreement type must be agreed upon between both Parties before billing can occur.
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