A method and system for determining a billing rate of a telecommunications connection is disclosed. The method and system may be used in a location aware telecommunications system that can determine the location of a telecommunications unit (TU) being used within the system. The geographic location of a mobile unit (MU) is determined, and compared to a list a predetermined subsidized zones. When the MU initiates or receives a call from within a subsidized zone, and the MU is otherwise responsible for paying a predetermined billing rate associated with the call, the predetermined rate is subsidized for at least the portion of the call made while the MU is located within the subsidized zone.