Calling party’s network pays meaning

Calling party’s network pays (CPNP) describes the wholesale charging model for voice call termination where the originating communications provider pays the terminating provider a termination charge to complete the call; the called party’s provider does not pay for termination. At retail level, the caller typically bears the cost, not the recipient. The term is a descriptive expression used in telecommunications regulation, interconnection agreements and competition cases, rather than a defined statutory term. Key legal features include regulated termination charges (mobile termination rates (MTRs) and fixed termination rates (FTRs)), usually priced per minute or per second and capped by the national regulator. In the UK, Ofcom sets charge controls; in Ireland, ComReg applies EU-derived regulation. The concept is consistent across England & Wales, Scotland, Northern Ireland and Ireland, but specific caps and implementation rules differ by jurisdiction. CPNP contrasts with “bill-and-keep”, where networks exchange traffic with zero or reciprocal charges. The model is central to drafting and negotiating interconnection agreements, assessing cost recovery, and resolving disputes about excessive termination charges, refusal to interconnect, on‑net/off‑net pricing, and potential margin squeeze or foreclosure in wholesale call termination markets.