New Traffic Pumping Study: $150M Annual Cost to US Wireless Providers

Connectiv Solutions, a US vendor of network efficiency products, has issued a new study into traffic pumping; you can obtain the report from here. Put simply, traffic pumping is the practice of driving up traffic to terminating carriers that charge the highest termination fees. As the calls are generally free to the end user, the extra cost is suffered by their service providers. The report says that traffic pumping companies earned USD150M from US wireless providers during 2010. The cost is forecast to rise to USD170M in 2011. Last year, TEOCO issued its own report into traffic pumping, which put the annual cost to US carriers at USD400M.

Eric Priezkalns
Eric Priezkalns
Eric is a recognized expert on communications risk and assurance. He was Director of Risk Management for Qatar Telecom and has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and others.

Eric was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He was a member of Qatar's National Committee for Internet Safety and the first leader of the TM Forum's Enterprise Risk Management team. Eric currently sits on the committee of the Risk & Assurance Group. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.

Commsrisk is edited by Eric. Look here for more about Eric's history as editor.