What are intercapital or on-net calls?
When we talk of an ‘intercapital’ call or ‘on-net’ call, we are usually referring to a situation where one carrier, having picked up the call from Telstra, is able to deliver it to the destination’s local Telstra exchange without having to use another carrier. Most carriers have their own connections between capital cities but very few have their own connections to rural towns. Thus many carriers have to purchase from Telstra a long-distance connection from their switch to the rural town in order to connect such calls. This is why non-intercapital (“off-net”) calls are generally more expensive.