ITU-T D.300 R

TELECOMMUNICATION (03/95)
STANDARDIZATION SECTOR
OF ITU

RECOMMENDATIONS FOR REGIONAL
APPLICATION

STANDARDS RATES APPLICABLE IN THE
INTERNATIONAL TELECOMMUNICATION SERVICES

DETERMINATION OF ACCOUNTING RATE
SHARES IN TELEPHONE RELATIONS
BETWEEN COUNTRIES IN EUROPE
AND THE MEDITERRANEAN BASIN

ITU-T Recommendation D.300 R

(Previously "CCITT Recommendation")

FOREWORD

The ITU-T (Telecommunication Standardization Sector) is a permanent organ of the International Telecommunication Union (ITU). The ITU-T is responsible for studying technical, operating and tariff questions and issuing Recommendations on them with a view to standardizing telecommunications on a worldwide basis.

The World Telecommunication Standardization Conference (WTSC), which meets every four years, establishes the topics for study by the ITU-T Study Groups which, in their turn, produce Recommendations on these topics.

The approval of Recommendations by the Members of the ITU-T is covered by the procedure laid down in WTSC Resolution No. 1 (Helsinki, March 1-12, 1993).

ITU-T Recommendation D.300 R was revised by ITU-T Study Group 3 (1993-1996) and was approved under the WTSC Resolution No. 1 procedure on the 20th of March 1995.

In this Recommendation, the expression "Administration" is used for conciseness to indicate both a telecommunication administration and a recognized operating agency.

All rights reserved. No part of this publication may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying and microfilm, without permission in writing from the ITU.

Recommendation D.300 R (03/95)

Page

INTRODUCTION

When, in full exercise of their sovereignty, the Administrations of the countries of Europe and the Mediterranean Basin negotiate among themselves agreements for determining the accounting rate shares to be applied in their telephone relations, it is recommended that they take into consideration:

- for the determination of accounting rate shares and accounting rates, the provisions of clause 2 (Determination of accounting rate) of this Recommendation and the provisions of Recommendation D.307 R;

- for fixing tariffs for frontier relations, the provisions contained in clause 4 of this Recommendation.

Recommendation D.300 R

Recommendation D.300 R (03/95)

1 Explanation of some of the terms used in this Recommendation

An explanation of some of the terms used in this Recommendation is given in Recommendation D.000.

2 Determination of accounting rate share in telephone relations between countries in Europe and the Mediterranean Basin

2.1 General

2.1.1 Since the setting-up of any international call involves both the international network and the national networks of the terminal countries, the accounting rate share due to each country is derived from three basic elements, to which separate standard rates are applied:

- the line (transmission) part of the international network, which includes the various transmission systems used and is a function of the distance;

- the international exchange, i.e. the switching part of the international circuit, plus the terminal transmission equipment;

- the national extension, which covers the cost of the national exchanges and trunk transmission means for the delivery of international calls. Noting the definition of national extension in Recommendation D.000 the TEUREM Group did not include the local loop in its cost analysis.

2.1.2 In special cases where the line (transmission) part of an international connection is:

- a tropospheric scatter link; or

- a HF radio link,

the provisions of this Recommendation with regard to the determination of an accounting rate share in relation to the length of the international circuit are not applicable, and accounting rate shares should be agreed upon between the Administrations concerned.

Cases in which the line (transmission) part of a connection is a satellite link are dealt with in Annex B.

2.2 Charging zones

For calculating accounting rate shares, each country may be divided into charging zones. If need be, different charging zones may be fixed in a given country for traffic exchanged with different countries.

It is desirable that the number of charging zones for international traffic, in any one country, should be reduced to a minimum. As a general rule, in services between non-adjacent countries, each country should constitute one single zone.

2.3 Calculation of distances (line part)

2.3.1 Distances to be taken into consideration

2.3.1.1 General case

2.3.1.1.1 In determining the share payable to a country for the use of international circuits, the distance to be taken into consideration is:

In a terminal country

- The crowflight distance between:

a) the point at which the international circuit crosses the frontier; and

b) the international exchange at which the circuit terminates.

In a transit country

- The crowflight distance between the two frontier points at which the international circuit enters and leaves the country in question.

2.3.1.1.2  The same provisions apply to the determination of crowflight distances for groups, supergroups, mastergroups and supermastergroups.

The above provisions for the calculation of distances apply to international circuits both on land cables and on radio-relay links.

2.3.1.2 Special cases

2.3.1.2.1 Radio-relay links crossing the sea or a third country

When a frontier is crossed by a radio-relay section of an international circuit passing over a third country or over the sea, without an intermediate relay station, the frontier point for measuring the circuit length shall be the point midway between the two relay stations on either side of the frontier.

2.3.1.2.2 Submarine cables

With regard to international circuits which are routed in submarine cables, the distance to be used for accounting will be calculated as follows:

a) for the land section of the circuit to the submarine cable station, the distance shall be calculated in accordance with the general principles (i.e. the crowflight distance), it being assumed that the point at which the circuit crosses the frontier is the cable station;

b) for the submarine cable section, the distance used shall be the actual route distance between the submarine cable stations as determined and agreed by the joint owners of the cable; the distance will be divided appropriately (normally 50/50) between the countries at the extremities of the cable.

2.3.1.2.3 Special itineraries

In exceptional circumstances, multiplication factors may be applied to the crowflight distance, from which the terminal and transit shares are calculated, to take account of special itineraries. For example, in the case of a direct transit country, the crowflight distance between the points on the frontier at which the circuit enters and leaves the country may (in exceptional circumstances) be replaced by a length representing the sum of two crowflight segments making up a broken line, etc.

2.3.2 Possibility of weighting distances

For calculation of the crowflight distances for the international section, a weighting according to the number of circuits is normally applied in a given relation to simplify accounting:

- when there are several international arteries with different itineraries terminating at an international exchange;

- when there are several international exchanges in a country for the relation concerned.

This weighting serves to determine a length (crowflight distance) for fixing the accounting rate share relating to the international section and it would remain in force as long as the structure of the network was not significantly changed. This length of the international section would then be used to fix the international section element for the charges for international telephone and telegraph circuits, groups, supergroups, mastergroups and supermastergroups.

2.3.3 Rounding off distances

2.3.3.1 Distances less than 50 km shall be rounded up to 50 km.

Example: distance of 24 km rounded up to 50 km.

2.3.3.2 Other distances shall be rounded to the nearest multiple of 50 km.

Examples

- distance of 72 km rounded to 50 km;

- distance of 126 km rounded to 150 km;

- distance of 175 km rounded to 200 km.

2.3.3.3 This rounding rule applies to the distances in each of the terminal countries and in each of the transit countries and is applied to the total distance calculated for any one country. It is applicable to the remuneration of Administrations both on the basis of a flat-rate price for the facilities made available and on the basis of traffic units.

2.3.3.4 When distances are weighted in accordance with the provisions of 2.3.2 above, the rounding shall be applied only after the weighted distance has been calculated.

2.3.4 Existence of several routes in a given relation

When in a given relation there are several routes traversing different countries, these transit countries shall in all cases receive the share or flat-rate price normally due to them for the distance between the points of entry and exit; any cost of equalizing collection charges in a relation comprising different routes shall be borne solely by the Administration of the country of origin and no deduction shall be made from the remuneration due to the transit countries.

2.4 Standard rates to be applied for international accounting4)

For international accounting purposes, there are two methods of remuneration for the facilities made available by Administrations:

- on the basis of traffic units;

- on the basis of a flat-rate price for the facilities made available.

2.4.1 Remuneration on the basis of traffic units

2.4.1.1 Considering that increasing use is being made of digital systems and channels in the operation of telephone relations between countries in Europe and the Mediterranean Basin, standard per-minute rates have been calculated for automatic traffic, taking into account the results of the former Recommendation D.300 R (Red Book) referring to only analogue system and from digital cost analyses carried out in 1990.

2.4.1.2 Since the degree of digitization varies from country to country and over time, the method of determining accounting rate shares in this Recommendation uses a simplified division into categories to better reflect differences in cost structures among Administrations.

2.4.1.3 In order to reflect the actual costs, a degree of digitization is applied to all three network components (national extension, international exchange and international transmission) relevant for establishing an accounting rate.

2.4.1.4 Accounting rates between two parties in a bilateral relation can be calculated from the rates detailed in the table below (see 2.4.1.5).

2.4.1.5 Standard accounting rate shares components in SDRs per minute

2.4.1.6 The accounting rates between two parties should be based on the more conservative, i.e. the lower degree of digitization for each of the network components.

2.4.1.7 A worked example is shown below.

In this example, the degree of digitization for the three network components is given for two countries (half of the international circuit being 100 km).

Accounting rate share = 0.1026 + 0.0129 + 0.0044 ´ 1 = 0.1199 SDR.

2.4.1.8 A possible method on how to establish the degree of digitization for each of the components is shown in Annex A.

2.4.1.9 The accounting rate shares shown in the table at 2.4.1.5 constitute a standard per category. Administrations may agree on lower rates. For instance, this could be the case where the limits of the category are approached.

2.4.1.10 To determine accounting rate shares components (in SDR/minute) due to transit countries can be calculated from the table shown below.

2.4.1.11 To determine the accounting rate shares due to destination and transit countries in manual operation, the following standard rates, per minute of conversation time, are recommended.

2.4.1.12 a) The standard rates shown under 2.4.1.5, 2.4.1.10 and 2.4.1.11 for the line element per 100 km of circuit and per minute may not be appropriate to some small capacity submarine cables. In these cases, the rates should be fixed by agreement among the parties concerned.

b) The standard rates for the exchange component under 2.4.1.5, 2.4.1.10 and 2.4.1.11 include the cost of the transmission equipments for one extremity in terminal operation and for two extremities in transit operation.

2.4.2 Remuneration on the basis of a flat-rate price for the facilities made available

2.4.2.1 Remuneration of a direct transit country

2.4.2.1.1 To determine the flat-rate price for remuneration for the analogue transmission facilities made available by Administrations, the following standard rates are recommended.

2.4.2.1.2 When digital facilities are made available, they should be remunerated according to the standard rates given in Recommendation D.307 R.

2.4.2.1.3 When a circuit leased to a private user passes through a direct transit country, the Administration of this country will be remunerated by the Administrations of the terminal countries with a flat-rate price on the same basis as if the circuit were an ordinary public service circuit.

2.4.2.2 Remuneration of a country of destination

To determine the flat-rate price for remuneration of countries of destination for facilities made available by Administrations, the following standard rates are recommended:

1) For the transmission channel (line part, component B): see 2.4.2.1.

2) For the international exchange (including the terminal transmission equipment)

- per year and per international circuit connected:

3) For the national extension

- per year and per international circuit connected:

- manual operation (analogue):

· 3420 SDR

- automatic operation (analogue/digital):

2.5 Remuneration for facilities made available for the extension of intercontinental circuits

In principle, the rates mentioned in clause 2 above apply also to the remuneration of facilities made available for the extension of intercontinental cable or satellite circuits.

3 Collection charges in telephone relations between countries in Europe and the Mediterranean Basin

3.1 General

3.1.1 The establishment of the collection charge is a national matter. However, the level of the tariff levied on the user should be cost-oriented having due regard to the universal nature of the telephone service.

3.1.2 In considering the collection charges for a relation in which automatic and semi-automatic working both exist, each Administration should decide to fix its charges, either

- by establishing different charges for each method of operation; or

- by establishing a single collection charge weighted according to the volume of each type of traffic.

3.1.3 To recover the costs of operator assistance, Administrations may levy additional charges per call, the level of which is a national matter.

3.2 Charging zones

For fixing collection charges each country may be divided into charging zones. If need be, different charging zones may be fixed in a given country for traffic exchanged with different countries.

It is desirable that the number of charging zones for international traffic, in any one country, should be reduced to a minimum. As a general rule, in services between non-adjacent countries, each country should constitute one single zone.

The fixing of zones for collection charges does not imply the same for zones for accounting rate shares which can be weighted appropriately to make allowances for a zonal structure. Similarly, the fixing of zones for accounting rate shares (see 2.2) does not imply any requirement for fixing zones for collection charges.

4 Frontier relations between countries in Europe and the Mediterranean Basin

The conditions governing the establishment and operation of frontier relations depend largely on the structure of the national networks in the frontier areas. These conditions tend to alter, particularly as a result of network automation, which leads in turn to automation of frontier relations. Consequently, the collection charges applied to these relations are tending to become increasingly subject to limitations imposed by the automatic charging equipments used.

Whenever the situation permits, there should be no exchange of international accounts for frontier calls, the entire charge being retained by the Administration which collects it. The latter should, however, supply all frontier traffic information required to the Administration of the country of destination.

Annex A

Guidelines for determining the degree of digitization

A.1 National extension

The national extension consists of a number of network elements. International traffic, incoming as well as outgoing, is routed via these network elements from the international exchange to the subscriber line and vice versa. For each network element a different degree of digitization may be found. This is the result of the national network evolution-plan towards a digitized network. To deal with this complicated network situation in a practical way, the following simple method is proposed for determining an "all-in" degree of digitization for the national extension.

(The figures used are an example and should be replaced by figures applicable to your own circuit-switched network.)

- To determine the average digitization degree of (local and trunk) exchanges (Dexch%) in your national extension:

	Number	%
· number of switched 4 kHz circuits	= 1000	33.3%
· number of switched 64 kbit/s circuits	= 2000	66.7%	(Dexch%)

- To determine the average digitization degree of the transmission part (Dtrans%) in your national extension on the basis of km circuits:

	Kilometres	%
· total length of 4 kHz circuits	= 10 000	40%
· total length of 64 kbit/s circuits	= 15 000	60%	(Dtrans%)

- To obtain an average degree of digitization of the national extension, calculate an arithmetic mean of these two values:

= D%

Example with figures:

= 63.35%

A.2 International exchange

According to the proportion of circuits (outgoing and incoming) terminating at each type of international exchange (analogue and digital) utilized in a bilateral relation.

A.3 International transmission

According to the proportion of circuits (incoming and outgoing) 4 kHz analogue and 64 kbit/s digital utilized in a bilateral relation.

Annex B

Remuneration for the facilities used to set up telephone-type (4 kHz analogue circuits
and 64 kbit/s bearer) satellite circuits (INTELSAT system) via an earth station
in Europe and the Mediterranean Basin

B.1 Flat-rate charges for the provision of telephone-type (4 kHz analogue circuits and 64 kbit/s bearer) circuits set-up via a foreign European earth station

Preliminary note

The charges are the same, whether the circuit is used in an intra-European or an intercontinental relation.

When an Administration operates a direct satellite circuit set-up via a foreign European earth station, the following standard rates are recommended for the remuneration of the facilities provided by the country operating the earth station.

B.1.1 For the remuneration of the international circuit section between the border of the outgoing terminal country and the international exchange of the country operating the earth station5):

- 392 SDR per 100 km of transmission channel (line part) per annum, or the standard rates set out in Recommendation D.307 R when a digital circuit is used;

- where appropriate, the amount laid down in 2.4.2.2, 2) a), to pay for the terminal equipment (component A) in the international exchange.

B.1.2 For the remuneration of the earth station and the national extension from the international exchange mentioned in B.1.1 above, to that station:

- 9000 SDR per circuit and per annum.

B.1.3 For the remuneration of the space segment, the amount fixed by INTELSAT and usually payable directly to that organization.

B.2 Traffic unit price applicable in telephone relations between countries of Europe and the Mediterranean Basin, for traffic routed via satellite links

Preliminary note

The same standard rates are used to determine the accounting rate shares payable to terminal and transit (switched transit) countries.

B.2.1 Routing via satellite links only

When, in a given relation, all traffic is routed using international satellite links, the terrestrial distance between the respective international terminal or transit exchanges is disregarded. The costs to be taken into account for determining the terminal or transit shares relating to the use of the link are:

- the cost of the earth station and the national terrestrial extension to the international exchange in the same country (including a component A in the exchange);

- the cost of the space segment.

The accounting rate shares applicable per minute are as follows:

- for the earth station and the national terrestrial extension to the international exchange in the same country (including a component A in the exchange): 0.116 SDR;

- for the space segment: 0.047 SDR.

B.2.2 Routing via satellite and terrestrial links

When, in a given relation, international traffic is routed via both satellite and terrestrial links, account should be taken of the provisions of 2.3 concerning the calculation of terrestrial circuit distances, as well as of the cost elements involved in satellite routing specified in B.2.1 above. When these two components have been calculated separately, a weighting factor based on the number of circuits set up on each transmission medium is applied to determine the transmission (line part) element of the accounting rate.

NOTE - To take account of the relatively low utilization factor of certain earth stations, a correction factor may be applied to the standard rates given in this annex by the Administrations owning the stations concerned.