Wholesale Interconnect Billing and Settlement FAQs

Q: What is interconnect billing and settlement in wholesale telecoms?

A: Interconnect billing and settlement is the process by which telecom operators charge each other for carrying voice, SMS, IP, and data traffic across their networks. Typically, this involves applying agreed wholesale rates for the termination or transit of traffic. 

At iCONX, we streamline this process by automating usage capture, event rating, invoice generation, and reconciliation, making settlements more efficient and reducing the risk of disputes.

Q. Why is interconnect billing important?

A: Interconnect billing plays a critical role in ensuring telecom operators are fairly compensated when other networks use their infrastructure. Charges are typically set by national regulators for local traffic and governed by bilateral contracts for international and wholesale services. 

With over 20 years of experience, iCONX has been a trusted provider of interconnect billing solutions to some of the world’s leading telecom brands. We continue to evolve our offerings to meet the dynamic needs of the global telecoms market.

Q: Why do carriers need a dedicated wholesale billing & settlement platform for interconnect traffic?

A: Unlike retail billing, wholesale interconnect involves extremely high volumes of transactions, frequent rate updates, complex rating models, regulatory obligations, and tight reconciliation timelines. 

iCONX is a dedicated platform specifically designed to manage these demands, replacing manual processes and outdated systems with automation, near real-time data, and built-in controls that enhance revenue assurance and operational efficiency.

Q. How is traffic measured for interconnect billing?

A: Traffic for interconnect billing is typically measured using Event Detail Records (EDRs) or Call Detail Records (CDRs) generated by network elements. These records contain the essential usage data needed for accurate rating and billing, such as:

  • Duration – for voice services (e.g., per second or per minute)
  • Volume – for data or IP traffic (e.g., measured in MB or GB)
  • Event count – for services like SMS (e.g., messages sent for A2P or P2P)

iCONX is network element agnostic and built to integrate with any platform, enabling the rating of all wholesale traffic types efficiently and accurately.

Q: How can carriers manage interconnect agreements and updates efficiently?

A: Managing interconnect agreements and rate updates involves handling high volumes of complex rate sheets, ensuring accuracy across multiple partners, and reacting quickly to frequent changes—all while maintaining compliance with contractual terms. 

iCONX simplifies this process with automated rate import, validation, version control, and distribution tools. Our platform supports flexible agreement structures and provides full audit trails, helping carriers streamline operations, reduce manual errors, and ensure timely updates. 

Q: How is the reconciliation and settlement of interconnect charges handled between carriers?

A: Wholesale carriers reconcile call records by matching their own usage data with that of their interconnect partners—comparing rated CDRs and invoice summaries to identify discrepancies. This process is crucial for revenue assurance, accurate settlement, and resolving billing disputes efficiently. 

iCONX automates the reconciliation of partner invoices with internal rated records and partner rates and codes, quickly identifying mismatches in volume, value, or destination. Built-in workflows and audit trails streamline dispute resolution and reduce manual effort. iCONX reduces the time and cost of reconciliation, increases accuracy, and strengthens partner relationships.

Routing Optimisation & Least Cost Routing (LCR) FAQs

Q: What is Least Cost Routing (LCR)

A: Least Cost Routing (LCR) is the process of selecting the most cost-effective path for delivering voice or messaging traffic across multiple interconnected networks. Routing optimisation allows carriers to route traffic dynamically based on LCR price, as well as additional factors including bilateral commitments, quality, capacity, and route availability. 

iCONX delivers a unified, scalable, and proven wholesale platform—trusted by global telcos for over 20 years—to drive intelligent routing decisions that protect margins and simplify operations.

Q. Why is routing optimisation important for carriers?

A: Routing optimisation directly impacts profitability, service quality, and competitiveness. By continuously evaluating and adjusting routes, carriers can reduce termination costs, meet bilateral commitments, improve margins, and remain competitive in a high-volume, low-margin environment. 

iCONX’s platform enables dynamic, rules-based routing decisions using real-time rate and traffic data, maximising profitability while ensuring service quality.

Q. What risks do carriers face without effective Least Cost Routing (LCR)?

A: Without LCR, carriers may overpay for traffic termination, suffer quality degradation, and miss revenue opportunities due to inefficient routing. 

iCONX reduces these risks through a robust, auditable platform that ensures optimal routing choices and supports swap deals and compliance with commercial agreements.

Q. How often do telecom carriers need to update their routing?

A: Routing updates should occur as frequently as rate changes, typically daily. However, modern wholesale operations demand more than just routine updates. Carriers need the ability to adjust routing dynamically at a granular level, including full or partial CLI (Calling Line Identification), to respond swiftly to quality issues, customer complaints, and fraudulent activity.

iCONX automates routing updates using real-time rate and traffic data, enabling dynamic, rules-based decisions for voice and SMS traffic. The platform supports CLI-level control for granular routing and includes fraud detection tools to monitor traffic patterns and block suspicious routes, ensuring cost efficiency, quality, and revenue protection.

SMS & Messaging Interconnect FAQs

Q: What is the difference between P2P and A2P messaging in telecoms?

A: P2P (person-to-person) is used between individuals. A2P (application-to-person) comes from businesses and is typically high volume with changing rates (think banking alerts, OTPs). For interconnect billing, A2P traffic often attracts specific wholesale charges, while P2P is often subject to different regulatory treatment.

iCONX helps operators accurately manage and monetise both P2P and A2P traffic through automated rating, routing, and settlement tools. The platform supports large-scale message processing, ensures proper billing, and protects revenue—especially for high-value A2P traffic—while maintaining compliance with interconnect agreements and regulatory requirements.

Q. How do carriers rate SMS traffic for interconnect billing?

A: SMS traffic is rated on a per-message basis, using the route, destination, and traffic type (A2P or P2P, P2A). Effective rating must also support charging for successful delivery, and in many cases, origin-based charges apply based on the sender’s identity or network. 

iCONX enables carriers to manage this complexity through a flexible, rule-driven rating engine. It supports differentiated pricing models for submission, delivery, and origin, tailored to each interconnect partner or message type. This ensures accurate real-time billing, full audit trails, and compliance with evolving messaging agreements.

Q. How is SMS traffic routed between carriers?

A: SMS routing involves delivering messages through direct or transit connections based on cost, quality, and regulatory constraints. Carriers often route traffic through SMS hubs or aggregators.

iCONX supports intelligent SMS routing decisions by integrating cost, partner terms, and quality metrics into an optimised routing table that is provisioned on the SMS platform, ensuring optimal delivery paths that maximise revenue and minimise failures.

Q. What challenges are involved in SMS interconnect settlement?

A: High message volumes, traffic type identification, and discrepancies in delivery reports can make SMS settlement complex.

iCONX simplifies this by automating reconciliation, generating clear partner reports, and supporting structured workflows for managing disputes and approvals.

Data and IP Interconnect Services FAQs

Q. What is IP and data interconnect billing?

A: IP and data interconnect billing refers to the process of measuring, rating, and invoicing data traffic exchanged between telecom carriers or service providers. This can include internet traffic, peering, international data roaming, or content delivery services.

iCONX provides a flexible platform to rate and reconcile high-volume IP and data traffic with full visibility, helping carriers manage usage, apply correct rates, and automate settlements.

Q. How is data usage measured for interconnect billing?

A: Data usage is typically measured in megabytes (MB) or gigabytes (GB) using IP Detail Records (IPDRs) from a data or IP network platform.

iCONX is network-agnostic and can ingest IPDRs or other usage formats, apply real-time rating, and manage traffic by volume, destination, or partner.

Q. What challenges are unique to IP interconnect billing?

A: Challenges include large volumes of traffic, complex rating tiers, real-time usage tracking, and a lack of uniform record formats between partners.

iCONX’s scalable architecture processes high volumes of data records efficiently, supports multiple record formats, and applies complex tiered pricing models with precision, ensuring accurate rating and billing across a wide range of IP services.

Origin Based Rating in Wholesale Telecoms FAQs

Q. What is Origin-Based Rating (OBR) in telecoms?

A: OBR is a billing method where the cost of terminating a call depends not only on the destination, but also on the origin of the call. OBR was introduced in 2016 to balance interconnect rates variances between low e.g., France, and high termination destinations e.g., Nigeria. 

iCONX delivers advanced, rule-driven rating logic that dynamically applies origin-based rates with high accuracy for both voice and messaging wholesale traffic. Origin-destination combinations are easily integrated across all core functions, including autoloading of origin rates, rating, billing, pricing, bilateral management, routing, and reporting.

Q. Why is OBR important in wholesale billing?

A: Voice agreements lack standardisation for OBR rates and include complex granular agreement rules that can differ by carrier network. OBR rates are commonly 10× higher than standard termination, and origin call data may be missing or invalid (e.g., “invalid CLI”), triggering premium OBR surcharges. Incorrect management of OBR can expose a carrier’s business to bill shock and billing disputes.

iCONX automates the application of carrier-specific origin rates and simplifies billing for complex call scenarios, minimising manual intervention and revenue leakage. 

Q. How does OBR affect Least Cost Routing (LCR)?

A: OBR adds complexity to routing decisions, as the cost can vary for the same destination based on the call origin, impacting profitability and route selection.

iCONX integrates OBR logic directly into its LCR and bilateral trading modules, enabling dynamic routing decisions that reflect both origin and destination pricing for maximum margin control.

Fraud Management in Wholesale FAQs

Q: What types of fraud affect wholesale telecoms, and how can they be prevented?

A: Common fraud types include: 

  • International Revenue Share Fraud (IRSF): Fraudsters generate calls to high-tariff numbers they control, sharing revenue with local operators. 
  • SIM Box (Bypass) Fraud: Illegally rerouting international calls to appear as local, avoiding higher termination fees. 
  • Wangiri Fraud: One-ring calls entice recipients to call back premium-rate numbers
  • PBX Hacking: Unauthorized access to private branch exchanges to make fraudulent calls. 
  • CLI Spoofing: Manipulating the caller ID to disguise the call’s origin, more recently in use to avoid higher Origin-Based Rating (OBR) surcharges.

iCONX’s Fraud Management System (FMS) employs AI-driven analytics to monitor call detail records (CDRs) in real-time, identifying patterns indicative of these fraud types. By cross-referencing with an industry-leading knowledge base, iCONX can swiftly detect and block suspicious activities.

Q: What does it mean if a dialled phone number is “unallocated”?

A: It means the number isn’t currently assigned to any user. 

Using its fraud knowledge base, the iCONX systems can detect unallocated numbers, helping avoid billing issues and improving fraud detection.

Q. How can operators stay updated on emerging fraud trends?

A: Staying informed about emerging fraud trends is crucial for proactive prevention and requires access to up-to-date intelligence and industry insights.

iCONX offers a subscription-based Knowledge Base that provides a best-of-breed aggregation of customer and market intelligence, updated and shared with subscribing customers, along with a constantly refreshed World Numbering Plan optimized for wholesale fraud purpose.

Deployment & Integration Options FAQs

Q: Is the iCONX system available on-premises or as a cloud service?

A: Yes, iCONX is flexible. Deploy it on-premises, in the cloud, or as a fully managed service—whatever fits your needs. You get full control and functionality either way.

Q: Can the iCONX platform integrate with our existing BSS/OSS systems?

A: Definitely. We integrate smoothly with your BSS/OSS stack. Our platform connects with your current tools via APIs or custom interfaces, so everything works together from the start.