billandkeep

Bill and keep (B&K) is a model for interconnection settlements in telecommunications. Under a bill-and-keep arrangement, two networks that exchange traffic do not charge each other for terminating calls. Each operator keeps the revenue from its own end users and bears the costs of delivering traffic within its network; there is no monetary payment between the networks for termination. B&K is typically adopted when the traffic exchanged is roughly balanced, reducing the need for complex intercarrier billing.

Implementation and scope vary. In a full B&K setup, traffic is exchanged at agreed peering points and each network counts the traffic it originates and terminates, with no per-minute termination charges billed to the other party. Some arrangements are hybrid or transitional, allowing certain categories of traffic to incur charges or permitting staged transitions as markets and regulations evolve.

Advantages commonly cited include lower administrative and billing costs, fewer disputes over termination charges, and simpler interconnection arrangements. Disadvantages can arise when traffic is highly unbalanced: a network that sends much more traffic to others may perceive a loss of revenue or negotiating leverage. Critics also worry that B&K may affect investment incentives or market dynamics, particularly for smaller or newer operators in asymmetrical markets.

Regulatory and market contexts vary by jurisdiction. Some regulators promote bill-and-keep as a default or interim solution to simplify interconnection and reduce regulatory burdens, while others maintain traditional termination charges or allow hybrid models. In practice, the appropriateness of B&K depends on traffic patterns, market structure, and policy goals.