This article concerns the international economic relationships between the telecommunications operators which enable them to connect international calls. It focuses on how these rela- tionships are evolving, and on the regulatory policies affecting them. It summarises the existing arrangements concerning accounting rates and settle- ments; analyses the intense pressures for change; and suggests the kinds of changes that could result. It also pres- ents views of which outcomes should be preferred, and what choices by na- tional policy makers and regulators will make such outcomes probable.
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