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Abstract :
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This document outlines the secretariat's proposed methodology for recovery of satellite network filings (SNF) costs. At recent meetings of the Council and the Council Working Group on finance and human resources (CWG-FHR), the secretariat advised delegates that since 2021, the revenue collected from SNF fees, based on the current methodology, has failed to recover the full costs of the work undertaken by the secretariat to process SNF. This situation has resulted from significant increases in the volume and complexity of filings, without corresponding and proportionate increases in the fees charged. In recent years, therefore, the cost of processing of SNF has been subsidized using ITU's regular budget, contrary to the intention of Plenipotentiary Resolution 91 (Rev. Bucharest, 2022).
Following efforts by the secretariat to demonstrate this misalignment, delegates expressed concern that more detailed information is needed to support the costs in relation to the direct and indirect cost elements included and to allow for data-based decision-making. In 2025, the Council implemented an interim increase in SNF fees, which provided additional revenue to offset part of the imbalance for a 2-year period, and the secretariat, under the guidance of the CWG-FHR, was instructed to submit proposals for a revised framework.
The proposal in this document seeks to address the recent discussions and concerns by delegates, by proposing an activity-based costing model which will provide for a more accurate methodology for calculating costs across ITU, and aligning SNF fees with those costs, using cost causation principles.
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