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Wholesale VoiP & CNAM dip fees compensation

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By Mark O'Breeze

Wholesale Telecom Penalties and Surcharges

Over the past 6 months carriers in the United States have been continuously made it harder and harder for high volume sip VoIP customers to make a profit. They imposed all kinds of new penalties and surcharges that can cost a lot of money. Penalties for a too low ARS, ALOC and incomplete calls.


This trend was started by Qwest Communications and more and more downstream voip providers are imposing similar penalties. Thus making dialer traffic more and more unprofitable and more expensive.

Caller ID, how it works and where the revenue comes form


Explanation of the CNAM DIP fees process


How CNAM dip compensation works

A "dip" is the process by which telecom companies exchange caller ID information. This process is completed on a call by call basis and provides calling name and number to caller ID subscribers. Each time a call is being received by a number that supports caller id, the local phone company receiving the call compensates the phone company that the call originated from for providing them with CNAM - caller name.

Each of these CNAM “dip” transactions is fee based so every time you “dip” into the database the originating teleco is compensated.

Many call centers are not aware that this “dip” takes place and that they can receive compensation for every call that “dips” into the database.

Additional Benefits of CNAM CallerID

Many call centers and telemarketing companies do not use an alphanumeric callerid (CNAM) on their outbound calls. However this can negatively effect their campaigns.

When they call someone that is subscribed to callerid, the caller name in such cases often shows up as "out of region" or "unknown". This can reduce the number of people actually answering their phone.

Increase ASR

By using a descriptive callerid that tells the consumer what the call center is calling about the answer ratio increases dramatically.

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