"Capacity swaps" have been used by telecommunications companies as a means to prematurely recognize revenue.

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Capacity swaps involve swapping or exchanging parts of a company's network capacity with another company. By doing so, the first company can recognize revenue from the unused capacity, which may not actually exist. This practice has been used by some telecommunications companies to prematurely recognize revenue, and has led to regulatory scrutiny and legal cases.

"Capacity Swaps" Have Been Used by Telecommunications Companies as a Means