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International telephony revenue settlement reform

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  • Thuswaldner, Andreas

Abstract

The method preferred by the majority of carriers for revenue settlement in international telephony is the Accounting Revenue Division Procedure (ARDP). It was developed for a monopoly environment, and it is becoming less suitable in an increasingly competitive global environment. This paper presents a model to relate the ARDP to revenue settlement in a free economy. We conclude that, in general, cost-oriented accounting rates cannot exist, that symmetrical settlement rates are likely to benefit carriers of developed countries, and that policies intended to adapt the ARDP to a competitive environment, cannot succeed unless it is recognized that accounting rate reductions must go hand in hand with the modification of the 50/50 revenue sharing principle of the ARDP.

Suggested Citation

  • Thuswaldner, Andreas, 1998. "International telephony revenue settlement reform," Telecommunications Policy, Elsevier, vol. 22(8), pages 681-696, September.
  • Handle: RePEc:eee:telpol:v:22:y:1998:i:8:p:681-696
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    Cited by:

    1. Francesco Castelli & José Luis Gómez Barroso & Claudio Leporelli, 2000. "Global Universal Service and International Settlement Reform," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 69(4), pages 679-694.

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