Bandwidth.com, a privately held telecommunications company, announced that it has signed a commercial deal with the Verizon wireline companies under which the parties agree to terminate each other’s VoIP traffic at a rate of $0.0007 per minute.
According to Bandwidth.com, the agreed upon rate, which applies to traffic that originates from or terminates to a VoIP end user, provides the companies with cost certainty for the traffic they exchange.
"For too long, uncertainty over what charges apply to VoIP traffic has served as a wall to the innovations customers want and the lower prices they need," said John Murdock, President of Bandwidth.com.
"We are delighted to be working with Verizon in reaching a commercial deal that hopefully will serve as a path for the industry and service providers to move forward and better serve customers," he added.
According to Murdock, this agreement demonstrates how VoIP and other innovative services can flourish through private agreements.
We know from our experience first hand how such services can spur economic growth and workplace productivity, while lowering costs and generating job growth," Murdock noted.