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Work item:
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TR_PrepaidCredits
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Subject/title:
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Prepaid telephone credits: economic and accounting considerations for market regulation and transparency
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Status:
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Under study
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Approval process:
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Agreement
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Type of work item:
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Technical report
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Version:
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New
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Equivalent number:
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-
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Timing:
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2026 (Medium priority)
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Liaison:
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-
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Supporting members:
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Congo (Rep. of the), Cameroon, Sao Tome and Principe, Cote d’Ivoire, Dem. Rep. of Congo, Mali, Nigeria, Togo, Mozambique, India, Tactikom
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Summary:
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Prepaid telephone services are a widely used model in electronic communications, especially in Africa, due to their flexibility and accessibility. Despite their success, these services raise problems of economic and accounting recognition, in particular as regards the nature of the revenues generated, the time at which they are recorded, and their contribution to regulatory mechanisms (e.g. universal service).
Depending on the country, prepaid top-ups are treated either as deliveries of goods (immediate recognition of income) or as services (progressive recognition). This discrepancy creates difficulties for operators, especially multinational groups that have to consolidate revenues recorded differently in different jurisdictions. In addition, the accounting treatment of unused appropriations (expired or unconsumed) also varies, which affects the comparability of financial statements and regulatory reports.
For example, the European Union and CEMAC consider telecommunications as the provision of services, while the WAEMU treats them as supplies of goods. These differences underscore the need for a common frame of reference.
ITU-T Study Group 3 is invited to consider this issue from an economic and accounting point of view, with a view to proposing harmonized guidelines.
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Comment:
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-
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Reference(s):
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Historic references:
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Contact(s):
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| ITU-T A.5 justification(s): |
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First registration in the WP:
2025-04-23 17:22:31
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Last update:
2025-04-29 12:13:55
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