Editing T-carrier (section)

== Carrier pricing ==
Carriers price DS1 lines in many different ways. However, most boil down to two simple components: [[local loop]] (the cost the local incumbent charges to transport the signal from the end user's [[telephone exchange|central office]], otherwise known as a CO, to the point of presence, otherwise known as a POP, of the carrier) and the port (the cost to access the telephone network or the Internet through the carrier's network). Typically, the port price is based upon access speed and yearly commitment level while the loop is based on geography. The farther the CO and POP, the more the loop costs.

The loop price has several components built into it, including the mileage calculation (performed in V/H coordinates, not standard GPS coordinates) and the telco piece. Each local Bell operating company—namely [[Verizon]], [[AT&T Inc.]], and [[Qwest]]—charge T-carriers different price per mile rates. Therefore, the price calculation has two distance steps: geomapping and the determination of local price arrangements.

While most carriers utilize a geographic pricing model as described above, some Competitive Local Exchange Carriers ([[Competitive local exchange carrier|CLEC]]s), such as [[TelePacific Communications|TelePacific]], [[Integra Telecom]], [[tw telecom]], [[Windstream]], [[Level 3 Communications]], and [[XO Communications]] offer national pricing.

Under this DS1 pricing model, a provider charges the same price in every geography it services. National pricing is an outgrowth of increased competition in the T-carrier market space and the commoditization of T-carrier products.<ref>{{cite web | last = Sweeney | first = Terry | title = T1 Price Drop Means Good Deals For Smart Shoppers | publisher = InformationWeek.com | date = December 25, 2000 | url = http://www.informationweek.com/817/teeone.htm | access-date = 2008-01-03  }}</ref> Providers that have adopted a national pricing strategy may experience widely varying margins as their suppliers, the Bell operating companies (e.g., [[Verizon]], [[AT&T Inc.]], and [[Qwest]]), maintain geographic pricing models, albeit at wholesale prices.

For voice DS1 lines, the calculation is mostly the same, except that the port (required for Internet access) is replaced by LDU (otherwise known as Long Distance Usage). Once the price of the loop is determined, only voice-related charges are added to the total. In short, the total price = loop + LDU x minutes used.