Issues in Telecommunications Development, Volume II

Reforming the International Accounting Rate System. Part I Overview. Part II Case Studies

image of Issues in Telecommunications Development, Volume II

On behalf of the ITU, the Telecommunication Development Bureau has taken on the responsibility of assisting countries as they restructure their telecommunication sectors to meet the challenges of globalization and liberalization. Reports from Seminars/Workshops at which developing country representatives reviewed the moves towards international accounting rate reform and a number of papers dealing with cost calculation methodologies are in Part 1, and in Part 2 there are 11 Country Case Studies.



Review of cost issues in international settlements toward a new theoretical framework

The centre of the policy and economic debates surrounding accounting/settlement rate reform is the question of costs. There is a broad consensus that settlement payments – or any new mechanism for inter-country carrier compensation – must become more “cost-based”, that present rates are well above cost, that market forces will increasingly drive settlement charges toward cost, even where administrations may wish to forestall such movement.


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