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					UIT - Secteur de la normalisation des télécommunications
ITU - Telecommunication Standardization Sector
UIT - Sector de Normalización de las Telecomunicaciones

Study Period 2001-2004

Regional Tariff                                                               Contributi on tardive 
Group for Latin                                                                                     
                                    TAL Group                                 Delayed Contributi on  D.3
America/Caribbean             
                                                                              Contribuci ón tardía 


La Havana, 22-25 October 2001

                                                                     Texte disponible seulement en 
                                                                                                   
                                                                     Text available only in         E
                                                                     Texto disponible solamente en 
                                                                                                   


SOURCE*:           TSB

TITLE:             RESULT OF INQUIRY INTO ACCOUNTING RATES AND COLLECTION CHARGES


                                                   ___________________

1        General
1.1    As part of the preparation for the first meeting of the TAL Group in La Havana, Cuba, the
TAL Group had decided to collect some information regarding the collection charges and
accounting rates in its region.

1.2     Collective letter 2/TAL containing the Questionnaire was sent out in September 2001. The
Questionnaire was designed to throw more light on the tariff situation in the TAL Group countries.
It should also help to identify the step to be taken by the TAL Group countries in the matter of
reforming the accounting rates.

1.3     Out of some forty countries invited to supply information, 7 sent a positive reply. Where
replies received from administrations were not entirely clear, the TSB contacted the person
responsible in order to obtain further details. In principle, all complete replies were regarded as
valid.

1.4      The replies received have been treated as strictly confidential and the results are summarized
in the table given in Attachment 1. The results must be considered with some caution as they are
based only on the data of top ten traffic relations.


* Contact:      TSB                                                  Tel:    +41 22 730 5989
                                                                     Fax : +41 22 730 5853
                                                                     E-mail: saburo.tanaka@itu.int
Attention: This is not a publication made available to the public, but an internal ITU-T Document intended only for use by the
Member States of the ITU, by ITU-T Sector Members and Associates, and their respective staff and collaborators in their ITU related
work. It shall not be made available to, and used by, any other persons or entities without the prior written consent of the ITU-T.

ITU-T\COM-T\TAL\D\003E
                                                  2

2       Results

2.1     Relations between TAL Group countries
2.1.1 Out of 35 relations between TAL Group countries, 33 (94.3%) were direct relations and 2
(8.3%) transit relations.
2.1.2 The average accounting rate applied in the TAL Group region was 0.592 SDR in December
1999 and 0.49 in 2000 (average reduction of 11.09%).
2.1.3 In 1999, the highest and the lowest accounting rates applied between the TAL Group
countries were respectively 1.05 SDR and 0.36 SDR. In 2000, they were respectively 0.98 SDR and
0.32 SDR.
2.1.4 The average transit rate of two transit relations was 0.195 SDR in 1999 and there was no
change for 2000.
2.1.5 The average collection charge was 0.687 SDR in 1999 and 0.656 SDR in 2000 (reduction of
4.5%).
2.1.6 The indicative target rate recommended in the Recommendation D.140, Annex E - for the
average teledensity of the TAL region (13.61) - is 0.324 SDR. If we compare with the current
average accounting rate applied in the region, the recommended average value has not yet been
achieved in December 2000.
2.1.7 We also note that 31 relations among 35 have reduced accounting rates between 1999 and
2000.


2.2     Intercontinental relations
2.2.1 Out of 35 intercontinental relations, 34 were direct relations and only one was a transit
relation.
2.2.2 The average accounting rate applied for intercontinental relations was 0.652 SDR in 1999
and 0.506 SDR in 2000 (reduction of 22.4%). At least for five main relations, the accounting rates’
reduction is higher in the non-TAL Group region (22.4%) than in the TAL Group region (11.09).
2.2.3 In 1999, the highest and the lowest accounting rates applied in the intercontinental relations
were respectively 1.950 SDR and 0.30 SDR. In 2000, they were 1.650 SDR and 0.260 SDR.
2.2.4   The only transit rate quoted was 0.46 SDR in 1999, and remains unchanged in 2000.
2.2.5 The average collection charge for intercontinental relations was 0.827 SDR in 1999 and
0.747 SDR in 2000 (reduction of 9.7%).
2.2.6   We note also that among 35 relations, 30 (85.7%) have reduced their accounting rates.


2.3     Financial impact
2.3.1 The average incoming traffic of countries for top ten traffic relations (5 in TAL region and 5
intercontinental) was 310.2 million minutes in 1999 and 331.6 million minutes in 2000 (increase of
6.1%).
2.3.2 The average outgoing traffic was 147.2 million minutes in 1999 and 151.8 million minutes
in 2000 (increase of 3.03%).
2.3.3 As there are more incoming traffic than outgoing traffic, the international settlement of
balance of accounts is positive for TAL Group countries (for top ten traffic relations, 5 in TAL
region and 5 intercontinental), in average 45 million SDR in 1999 and 39 million SDR in 2000.

ITU-T\COM-T\TAL\D\003E
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2.3.4 The net average international revenue (the sum of net impayments and collection revenues
for top ten traffic relations) slightly decreased from 154.1 million SDR in 1999 to 142.6 million
SDR in 2000 (reduction of 7.5 %), probably due to the rapid decrease of accounting rates and
collection charges. However, if the national revenue increases and new services are introduced, the
total revenue of the operator will probably increase.


3      Conclusion and observation
3.1     The average accounting rate of 10 TAL Group countries was 0.94 SDR in 1997, 0.774 SDR
in 1998, 0.622 SDR in 1999 and 0.498 SDR in 2000 (but only for top five traffic relations in TAL
region, and five top intercontinental traffic relations). The comparison with the average accounting
rates in the world can be found in Attachment 2.

3.2    In December 2000, the TAL Group’s average accounting rate was below the world
accounting rate average but much higher than the USA/rest of the world average accounting rate.

3.3     However, there is a quick decrease of accounting rates in TAL Group countries and if this
movement continues, the TAL Group countries will probably be able to meet the target rates
established in Annex E to Recommendation D.140 (However only for top ten relations).

3.4    If we look at individual countries’ situation, most of them loose their net international
revenue. However, part of this may be due to the change of national currency conversion rate
between 1999 and 2000.

3.5     At least for top ten traffic relations, the rapid reduction of accounting rates (19.9%) and the
reduction of collection charges (7.3%) between 1999 and 2000 have slightly affected the net
international revenue. The average net international revenue of TAL region’s administrations
decreased from 154.1 million to 142.5 million SDR (7.53%). However, the result needs to be
analyzed with more information if we wish to have the exact impact of the rapid decrease of
accounting rates and collection charges in the region.



Attachments: 2




ITU-T\COM-T\TAL\D\003E
                                                                        4
                                                                  Attachment 1
                                                         to Delayed Contribution TAL/3

                                                          SUMMARY RESULTS


                                                                        Average
 Adminis-                 Average Acc.rates/ Average Acc.rates/                                                                            Net
                                                                        transit     Total incoming Total outgoing       Settlement
  tration        Year      Collection Charges Collection Charges                                                                      international
                                                                         share         traffic        traffic            balance
                                  (TAL)            (Non TAL)                                                                             revenue

                 1999       0,454       0,205        0,798      0,679                158 746 090           55 397 740   41 626 530      73 036 084
     A
                 2000       0,494       0,245        0,452        0,4                 155 162 712          58 486 805   21 792 274       42 918 411
                 1999       0,744         0,97       0,984      1,448                  51 832 149          30 086 023     9 120 805     41 152 272
     B
                 2000       0,554         0,97       0,826      1,448                 54 730 585           29 633 887    8 348 602      40 205 680
                 1999       0,66        0,652        0,602      1,007                  48 915 986          17 765 575    9 334 870      24 101 457
     C
                 2000       0,508       0,622         0,48      0,806                 102 167 087          16 740 109   20 497 163      32 479 523
                 1999       0,508       0,484        0,518      0,582                276 765 770           65 807 108   54 542 576      90 657 952
     D
                 2000       0,41        0,509        0,382      0,642                283 246 102           67 433 609   41 583 497      81 583 266
                 1999       0,655         1,05       0,431      0,625                832 562 050          486 321 500   94 004 309     501 253 536
     E
                 2000       0,495         0,96       0,398      0,594                887 093 000          491 267 000   88 368 154     470 040 158
                 1999       0,702       0,823          0,81     0,895                179 362 280           67 864 558    42 146 139    100 434 254
     F
                 2000       0,591       0,702        0,612      0,822                168 926 730           70 264 321   29 672 719      83 212 397
                 1999       0,418       0,627        0,422      0,556                623 328 150          307 911 362   66 237 525    248 323 380
     G
                 2000       0,378       0,588        0,395       0,52                668 190 542          328 672 450    65 611 871    247 680 177
  Average        1999      0,592        0,687        0,652     0,827                310 216 068       147 307 695       45 287 536    154 136 991
   ADM           2000      0,490        0,657        0,506     0,747                331 359 537       151 785 454       39 410 611    142 588 516

Note: Rates are expressed in SDR, traffic is expressed in minutes (1SDR = 1.28171 US$, 15 October 2001)

ITU-T\COM-T\TAL\D\003E
                                                                                               5
                                                                                    Attachment 2
                                                                           to Delayed Contribution TAL/3


                                                                 SETTLEMENT RATES MOVEMENT




                                        1,2
                                                                                                                                                                ITU
                                                                                                                                                                USA
                                                1,060
                                                         1,040                                                                                                  TAS
                                                                  1,010
                                                                           1       0,980                                                                        TAF
                                          1
                                                                                           0,950                                                                TAL
                                                                                                        0,910
                                                                                                                 0,865
                                                                                                                          0,845
     Average accounting rate (in SDR)




                                                                                                                                   0,805
                                        0,8


                                                                                                                                           0,670
                                                                                                                                  0,635
                                                                                                                                                     0,595
                                        0,6                                                                                                                   0,541
                                                                                                                                            0,580
                                                0,505                                                                                               0,540
                                                         0,513
                                                                                                                0,487                                                   0,474
                                                                 0,449                                                   0,467
                                                                                                                                            0,470
                                                                                                                                  0,420
                                                                           0,401
                                        0,4                                        0,374                                                   0,374                0,406
                                                                                               0,347                                                  0,387
                                                                                                                                                                        0,334
                                                                                                       0,306                                        0,318
                                                                                                                0,272                                           0,311
                                                                                                                         0,252                                          0,249
                                                                                                                                  0,230                 0,287
                                                                                                                                           0,195
                                        0,2
                                                                                                                                                    0,153     0,129
                                                                                                                                                                        0,122




                                          0
                                              1988 1989 1990              1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
                                                                                                   Years (January)


Notes:
1.                                      The ITU line represents half of the accounting rates movement between 1988 and 1998. The data from 1999 to
                                        2001 have been calculated from the settlement rates data received.
2.                                      For “TAF” and “TAL”, only the settlement rates of the 10 major traffic relations have been taken into account.
3.                                      TAS data are those obtained in the TAS cost studies.
4.                                      USA line represents the average half accounting rates of USA/rest of the world, data provided by the FCC.

ITU-T\COM-T\TAL\D\003E
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                         _____________




ITU-T\COM-T\TAL\D\003E

				
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