The entity in question functions as an intermediary within the telecommunications infrastructure, specifically dealing with voice traffic. It operates without bias towards any particular originating or terminating service provider. Its role is to efficiently route calls between different networks, often acting as a wholesale service. For example, a small regional telephone company might utilize this type of carrier to connect its customers’ calls to users on larger, national networks.
This approach offers several advantages, including reduced infrastructure costs for individual service providers. By outsourcing the complexities of inter-network routing, providers can focus on their core business of serving customers. Historically, these entities emerged to address the challenges of interconnecting disparate telephone systems, allowing for widespread connectivity and facilitating competition among service providers. Their presence promotes efficiency and cost-effectiveness within the telecommunications ecosystem.