How Libon pricing is dependant on international operator charges

Libon
Libon
Jul 28, 2017 · 2 min read

We’ve recently been analysing feedback from customers about Libon’s prices. Since this is a hot topic, we want to take the time to explain to you, our customer, how this all works and especially: how do we set our prices?

Let’s take an example:

I’d like to make a call to the United States from my Orange landline in France. When I place my call, it travels across the Atlantic ocean until its arrives at AT&T in the United States, where the friend I am calling is a customer.

My friend picks up the phone and after speaking about important things, such as presidents Trump and Macron, we both hang up. After that — and without you knowing — an exchange of both technical and financial information takes place between AT&T and Orange: AT&T sends a bill for the “cost of receiving the phone call’’ and Orange puts this on my phone bill.

What this means is that a local telecom operator who receives (in the sector we speak of terminating) calls from an international telecom operator will charge the call minutes at a wholesale price to the phone company who started the communication.

To sum up:

1. AT&T makes Orange pay for every minute of the call from Orange’s network to AT&T’s.

2. Orange propagates these charges to the customer’s phone bill.

It’s the same procedure for every other operator all around the world, and it’s similar here in Libon. Even if you have paid for an unlimited plan that includes calls to the US, Orange still pays for each of your calls.

In Libon, we negotiate with every single local telecom operator around the world so as to guarantee the best prices and quality to our users, even if that means rolling up our sleeves and working for hours and days on contracts and negotiations to get the best possible deal.

❤ Libon team

Libon
Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade