Finally, Kuwait has joined the world in implementing true CPP or calling party pays. Well, the mobile to mobile phone calls were already free, but calls originated from the PSTN network were paid for by the receiver. This was simply because the PSTN calls were free, The mobile network was being used and somebody had to pay for that. But this model takes it into a totally new era where the calling party doesn’t pay if the call is originated from a PSTN line.
The operator will lose out on revenue generated from calls originated from PSTN lines, and all those who have a PSTN line will use that to make a call to the mobiles, except when a mobile to mobile call is absolutely necessary.
Is this the effect of competition or just another multilateral agreement between the operators to level the playing field or was it just pulling the rug out from under the new operator in town. Either way, a huge chunk of the revenue from these calls will be off the books.
If the telecom sector is liberalized further and these cellular operators are allowed to use VOIP or their own gateway, they will be able to generate more revenue from international calls, and perhaps cut down on the menace of illegal internet telephony.