CS3260 Tutorial 10    -    (week Nov 3 – Nov 7)

10A. A call-back service takes advantage of differences between the rates for inbound and outbound international direct dial (IDD) calls. Presently, the rates for IDD calls from the United States to India are much lower than those for calls in the opposite direction. A call-back service arranges for calls from India to the United States to originate from the United States.

a) How would the call-back service affect the revenues of Indian IDD service providers?

b) How would call-back affect the revenues that Indian service providers receive in settlement payments?

c) The US Federal Communications Commission (FCC) would like to reduce the several billions of dollars a year that US carriers must pay to foreign carriers in settlement payments. The FCC also aims to reduce the worldwide cost of telecommunications. Explain the conflict between these two objectives.

10B. On May 15, 2002 StarHub and SCV announced that they have signed a binding merger agreement, subject to IDA’s approvals.

a) What would be the advantages of two companies after the merger? Explain in relation to the contents of this course.

b) Although Singtel has no business in television services, it opposed StarHub-SCV merger. What would be the reasons?

c) About a month later, IDA approved this proposed merger. When IDA reviewed the merger proposal, what factors do you think it considered (or should consider) for decision?