How International call rates are charged and determined? Who selects call rates differently for each country?

Question

Well what im trying to mean here is, like if you want to call International places the call rates differ from each country. I want to know why is it like that and who regulates and sets the charges per minute for these all? Im also wondering that its not even distance wise, because even many countries far away from US will have 3 cents a minute, wheareas some countries close by would be more expensive per minute.
How does all these things work? Who sets the call rates and why does it differ? What things are considered before setting a call rate for a particular country? I tried to think a lot but it doesnt make any proper sense or logic behind all this. Any help would be greatly appreciated.

Answer 1

As a former AT&T employee who was involved in billing I have some idea.

1. Each country sets charges for calls originating or terminating in that country. E.g., for a call from US to France, part of the rate is determined by US and French tariffs. That makes up part of the rates.

2. Each company determines the cost of providing the service (e.g., salaries and infrastructure).

3. Each company sets a profit margin.

4. Some companies charge different rates based on time of day or day of week. Rates are usually higher during peak calling times.

5. Some companies have special calling plans that provide discounts for some callers.

Hope that helps.

Note: I believe that Internet calls might skip some of the country charges and be cheaper.

Answer 2

Some countries charge a lot for the calls inside their country. You are paying extra for those in country rates. These countries have monopolies that are usually state owned.