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COSITUThe ITU model for the calculation of

telephone service costs, tariffs and interconnection charges

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COSITU

Is the software developed by the Telecommunication development Bureau (BDT) for the calculation of costs, tariffs and rates for telephone services fix and mobile, national and international, including VoIP, Internet, etc. This software is based on Series D of ITU-T Recommendations.

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Main users of COSITU

• Telecommunication Operators: fixed and mobile

• Regulation Authorities and policy makers in developing countries

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Telecommunication Operators

• COSITU can be used by all categories of network operators - fixed and mobile - independently of their network configuration.

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Telecommunication Operators

• COSITU permits network operators to:– Calculate the cost of all services

• Basic telecommunication services• Transit services• Interconnection services

– Calculate service tariffs• Cost-oriented• Cost-based

– Simulate• Contributions to Universal Service Obligations (USO)• Tariff rebalancing• Different tariff scenarios • Monthly subscription fees

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Regulation Authorities and policy makers in developing countries

• COSITU as a tool for policy elaboration can help to:– The definition of the price of service policy

• Free prices• Regulated prices

– the definition of the policy of Universal Service Obligation (USO)

• COSITU as a tool for the follow-up and control of tariffs:– Definition of costs and tariffs with reference to the market– Definition of deficits by service– Fulfilling of USO– Simulation of scenarios to facilitate the negotiation of tariffs

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Services for which COSITU calculates costs

• Basic telephone services:– Local/Urban– Trunk/Interurban– International outgoing– International incoming– Subregional outgoing– Subregional incoming

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Definition of services for which COSITU calculates costs

• Local/Urban: Traffic carried solely within the network of the operator for which the calculations are made, between users located in the same local charging area,

• Trunk/Interurban: Traffic carried solely within the network of the operator for which the calculations are made, between users located in different local charging areas,

• International outgoing: A call from an end-user, connected to the access network of the provider who also operates the international gateway used, to a correspondent located outside the national boundaries,

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Definition of services for which COSITU calculates costs

• Incoming international: A call from a user located outside the national boundaries to an end-user connected to the access network of the provider who also operates the international gateway used,

• Outgoing subregional: A call from an end-user, connected to the access network of the provider who also operates the international gateway used, to a correspondent located outside the national boundaries, in a country which can be accessed by terrestrial media that are also used for trunk calls,

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Definition of services for which COSITU calculates costs

• Subregional incoming: A call from a user located outside the national boundaries, in a country which can be accessed by terrestrial media also used for trunk traffic, to an end-user connected to the access network of the provider who also operates the international gateway used,

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Services for which COSITU calculates costs

• Transit services– International to international traffic– International to subregional traffic– Subregional to international traffic– Subregional to subregional traffic

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Definition of services for which COSITU calculates costs

• International to international: A call between two non-subregional international correspondents via the international gateway of the operator for which the calculations are made,

• International to subregional: A call from a non-subregional international correspondent to a subregional correspondent via the international gateway of the operator for which the calculations are made,

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Definition of services for which COSITU calculates costs

• Subregional to international: A call from a subregional correspondent to a non-subregional international correspondent via the international gateway of the operator for which the calculations are made,

• Subregional to subregional: A call between two subregional correspondents via the international gateway of the operator for which the calculations are made,

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Services for which COSITU calculates costs

• Interconnection services– International to national traffic– National to international traffic– Outgoing national traffic– Incoming national, single transit traffic– Incoming national, double transit traffic– National to national traffic

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Definition of services for which COSITU calculates costs

• International to national: A call from an international correspondent to an end-user connected to the access network of an operator, without an international gateway, located within the same political borders as the operator of the international gateway for which the calculations are made,

• National to international: A call from an end-user connected to the access network of an operator, without an international gateway, located within the same political borders as the operator of the international gateway for which the calculations are made, to an international correspondent,

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Definition of services for which COSITU calculates costs

• Outgoing national: A call from an end-user of the network of the operator for which the calculations are made to another operator located within the same political borders as the first operator,

• Incoming national, single transit: A call coming from the network of another national operator to an end-user located in the charging area of the interconnection point and connected to the network of the operator for which the calculations are made,

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Definition of services for which COSITU calculates costs

• Incoming national, double transit: A call coming from the network of another national operator to an end-user located outside the charging area of the interconnection point and connected to the network of the operator for which the calculations are made,

• National to national: A transit call between two national operators via the network of the operator for which the calculations are made,

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Stages of cost-orientated/based charging allowed by COSITU

•Cost of network components•Operation and maintenance costs•Service traffic

•Amortization rules•Equipment price trends•Cost of capital

•Cost of functional support•Identifiable direct and indirect costs•Other common costs•Routing table•Cost distribution

•Unit endogenous cost of services•Tax components•Universal service obligations

•Cost-orientated endogenous tariffs•Tariff rebalancing•USO simulation

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COSSITU Server

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DISSEMINATION OF COSITU IN THE REGION

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COSITU dissemination programme

• The ‘train the trainer’ programme that BDT is organizing, consists of four workshops:– Central America – Nicaragua (November 2003)– Train the Trainer session (Geneva, 23-25 June 2004)– Caribbean Workshop (June 2004)– South America (September 2004)

• At present 3 experts are being trained and will continue to work for the region within the Centreof Excellence for America CoE programme.

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The COSITU Team

• All members of the team come from outside the CoE, from Regulators and Operators.

• The team consists of people with experience in network engineering and finance.

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The COSITU Team

• The team will work directly with the CoE• Countries interested in obtaining COSITU and in specialized

training can contact the CoE.• It is recommended that both Regulators and Operators (if

possible, fixed and mobile) are involved in the COSITU training in order to obtain better results.

• Each entity should organize its own team (taking into account finance, marketing and network engineering) and bring its own information/data, to obtain real results.

It is important that those being trained should have experience in network engineering and finance, but specially to work in a “team” so that they can apply the software efficiently and

guarantee the functionality.

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Contact at the CoE

Mrs. Melba Rivera de ReyesProgramme Coordinator

Centre of Excellence for AmericaAvenida Donato Alvarez 380

5147 CórdobaArgentina

Tel: +54 351 414 44 44 Ext. 141Fax: +54 351 414 44 00

E-mail: mlreyes@ubp.edu.ar

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http://www.itu.int/ITU-D/finance/COSITU/