Call-back operators have secured a profitable arbitrage opportunity created by the disparity between actual and tariffed costs of international calling and the failure of accounting rates to reflect declining costs. Without operating agreements and often without legal authorization these operators provide callers in high cost areas with out-bound calling capability that appears to originate from areas with lower costs. Technological innovation and entrepreneurial craftiness make it all but impossible for nations to prohibit call-back services. This article will examine call-back and other arbitrage services with an eye toward assessing whether and how the current accounting rate regime will collapse.
All Science Journal Classification (ASJC) codes
- Human Factors and Ergonomics
- Information Systems
- Electrical and Electronic Engineering