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Percentage of Interstate Usage (PIU)

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In an Inter-exchange Carrier (IXC) switched access billing environment, most Local Exchange Carriers allow IXCs to submit a factor expressed as a percent to be used to allocate the originating and terminating minutes of use to the interstate jurisdiction. This factor known as the PIU (Percent Interstate Use) is applied by the LEC to all minutes of use collected by the LEC having been handed off to or received from the IXC during a given billing month. The balance of minutes are then billed at the appropriate state jurisdiction rates.

Over time, because of significant differences in state and interstate switched access rate levels, coupled with technological changes in switch recording, the necessity and even advisability to rely strictly on an IXC for a factor to be used to allocate minutes of use to the interstate jurisdiction has become a subject of much discussion.

AMADEUS enables the LEC to utilize its own billing input details for a given IXC to develop PIU, as well as other jurisdictional factors on a quarterly basis. This gives the LEC the flexibility to apply a PIU that it has validated prior to inter-exchange switched access billing. The results have proven to be very positive in terms of its effect on LEC revenue streams.

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PIU Analysis

Terminating MOU Validation

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