Termination rates are the charges which one telecommunications operator charges to another for terminating calls on its network.
Traditionally, three models for charging these fees are known: calling party pays (CPP), bill and keep (BAK, peering), receiving party pays (RPP). For example, a customer of T-Mobile wishes to call a friend who has a Vodafone mobile. T-Mobile will charge the customer a fee per minute (the retail charge) for this call. Vodafone will charge T-Mobile a fee for terminating the call on its network. This termination rate therefore forms part of T-Mobile's cost of providing the call to its customer.
Termination rates may be commercially negotiated or may be regulated. Historically there was, and in some countries still is, much debate about the best level for interconnection rates.
Helgi Library 
