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ITU model for the Calculation of Costs, Tariffs and Rates for Telephone Services

Negotiating tariffs or rates is a delicate matter, whether it is for a new operator entering a liberalized market or a regulator wishing to set affordable tariffs for national calls without compromising competitiveness among operators.

COSITU is a practical tool from ITU's Market, Economics and Finance Unit to automate:

  • the calculation of costs,

  • taxes related to the exchange of international traffic (accounting, settlement and termination rates),

  • interconnection rates between local operators, and

  • tariffs for national and international telephone services taking into account the impact of Universal Service Obligations decided by public authorities.

This model can be applied to both fixed and mobile services.

About COSITU Methodology

Trends in Economics and Finance Volume I: Cost, Tariff and Interconnection Rate Calculation Methodology and Application to Case Studies

Describes the methodology on which COSITU is based and presents the results emerging from typical case studies carried out on the basis of this methodology, with a view to serving as a guide for comparative values.

 

 

 

Guide on Data Collection for the Application of the COSITU Model
This data collection guide is a follow-up to the COSITU user manual. It provides a methodology to help telecommunication regulators and operators to collect data to efficiently calculate costs and tariffs for national and international telephone services,
both fixed and mobile.

COSITU Service Pack 2

 


The COSITU SP2 includes, amongst other improvements, the possibility to estimate sensitivity to market risk (BETA) in the calculation of capital costs; the possibility of excluding the interurban service in the determination of the amount of access deficit where regulatory policies demand (e.g. Venezuela); plus visibility of intangible assets whose treatment is different from tangible assets. COSITU’s message system has also been revised with a view to furnishing practical recommendations.

Operators and Regulators who have already acquired one of the previous versions of the software may download COSITU SP2 by following the instructions below.

 

Exchange rates in terms of Special Drawing Rights (SDR)  

SDR current and historical exchange rates can be obtained from the International Monetary Fund (IMF):

and a fact sheet regarding the Special Drawing Rights from:

 

Contact  

COSITU
Regulatory and Market Environment Unit
International Telecommunication Union
Tel: +41 22 730 5791 / 6350
Fax: +41 22 730 5484
E-mail: cositu@itu.int

 

 

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Updated : 2012-03-01