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Abstract :
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This document outlines the Secretariat's proposals for reforming the Satellite Network Filings (SNF) cost recovery model. At recent meetings of the Council and working groups, the Secretariat advised delegates that since 2021 the revenue collected from SNF fees, based on the current methodology, has decreased significantly. This results in structural underfunding for the Radiocommunication Bureau (BR), and as a result 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. To that end, in 2025 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 Council Working Group on Finance and Human Resources (CWG-FHR) was instructed to submit proposals for a revised framework. The proposal in this document introduces an activity-based costing model, improves the methodology for calculating costs across ITU, and aligns SNF fees with those costs, using cost causation principles.
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