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Rerating - what is it and how does it affect you?

Until recently, the price you paid for making a call as a guest in another operators network was based on the cost the visited network charged to your home operator plus a small administrative margin. In principle a simple and logic process. As GSM became more popular around the globe it grew and more operators began roaming with each other. The result is that it became increasingly difficult as a consumer to understand how much a call would actually cost when visiting a foreign network.

Network operators began to respond to this unsatisfactory situation a few years ago and the solution is termed "re-rating". In short it means that the charge a network makes defines in which zone it will be placed in. These zones has clear and visible costs attached which enables us as callers to understand what to expect on our bills at the end of the month. Or, if you are using pre-paid, how much time will be left on your account.

For the visited operator to fit into one of your home operator zones, the cost charged by the visited operator must of course be lower than the cost for the caller in that specific zone. Otherwise the home operator would be making an economical loss in providing the service.

Generally the zones are differentiated in relatively small increments, with one or two major exceptions, these are the highest zones in which calls to the most distant corners of our earth are made, and, for calls made over satellite.

For satellite operators, re-rating meant they where put in the premium rated zone, i.e the one with the highest calling costs.

Seanet has taken a leading role to, where possible, ensure that calls made in the C-Cell network are placed in zones making cost of calls similar to those made within Europe.

 


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