Termination rates

Termination rates are like fees that phone companies pay to each other so that they can connect their calls. When you make a call from one phone company to another, your call has to go through different phone networks until it reaches its destination. This process costs money because phone companies have to use each other's networks to complete the call.

Termination rates are the fees that phone companies charge each other for using their network to complete the call. Think of it like borrowing your friend's toy for a little bit - you have to give them something in return for using it. Similarly, phone companies have to pay each other fees for using their networks to complete calls.

These fees are important because they can affect how much you pay for your phone calls. If a phone company has to pay a high fee to another company every time you make a call, that cost may be passed on to you as the customer in the form of higher prices.

So, termination rates can be thought of as the fees that phone companies pay each other to connect their calls, and these fees can ultimately impact how much you pay for your phone calls.