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Glossary of terms

Glossary of terms

Annex to the Secretary General's Report to the Second World Telecommunication Policy Forum, 16-18 March, 1998

Accounting rate: Defined in the International Telecommunication Regulations as "The rate agreed between administrations (or recognized private operating agencies) in a given relation that is used for the establishment of international accounts".

Call origination: The service of originating a telephone, fax or other telecommunication call from the calling party

Call termination: The service of terminating a telephone, fax or other telecommunication call to the called party.

Defined in the International Telecommunication Regulations as "The rate agreed between administrations (or recognized private operating agencies) in a given relation that is used for the establishment of international accounts".
Call termination charge: Call termination charge: A charge applied by a carrier for terminating a call which might be either:

• a single charge applied to all incoming traffic under a traditional half-circuit regime, applied in a cost-oriented, non-discriminatory and transparent manner; or

• an unbundled termination charge broken down into the basic cost elements of international transmission, international gateway and national extension, and possibly an element of subsidy.

Full-circuit regime: A term used to describe a system in which a carrier, or an alliance of carriers, pays the full cost of an international circuit up to the point of interconnection to the network of a foreign operator, on the territory of that operator.

Half-circuit regime: A term used to describe a system in which two or more carriers jointly share the cost of an international circuit between origination and termination.

Least developed country (LDC): A term which refers to the 48 countries and territories which are recognized by the United Nations General Assembly as being among the least developed countries and which are accorded special priority for the purpose of granting assistance.

Modes of delivery: The General Agreement on Trade in Services (GATS) recognises four modes of delivery of traded services:
  1. Cross-border supply: the supply of a service, such as an international telephone call, from the territory of one WTO Member into that of any other;
  2. Consumption abroad: the supply of a service in the territory of one WTO Member to a service consumer, for instance a tourist, of any other ;
  3. Commercial presence: the supply of a service by a service supplier of one WTO Member, through commercial presence in the territory of any other, for instance by establishing a local switch;
  4. Presence of natural persons: the supply of a service by a service supplier of one WTO Member, through presence of natural persons, for instance employees of that service supplier, in the territory of any other.
Settlement payment: The net payment made in settlement of international telecommunication accounts between two carriers where traffic in one direction exceeds that flowing in the other direction.

Settlement rate: The rate at which the balance of international telecommunication accounts is payable; normally half the accounting rate..

Trade in telecommunications: A term defined in ITU's 1997 "World Telecommunication Development Report: Trade in Telecommunications" as "Sales of telecommunication equipment or services that cross national borders". Trade in telecommunication services also covers "transactions" that cross national borders which would cover foreign investment, such as the acquisition of shares in telephone companies by foreign investors, or joint ventures between local and foreign partners to establish new telecommunication service companies.

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