Toolkit

Table of Contents Table of Practice Notes Table of Reference Documents Glossary
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Practice Note

COSITU: ITU Model for the Calculation of Costs, Tariffs and Rates for Telephone Services

The COSITU model permits network operators, service providers, regulators, and policy makers to calculate costs, taxes related to trade in international traffic, interconnection rates between local and international operators, and tariffs for national and international telephone services, both for fixed and mobile.

COSITU is based on enhanced fully distributed costing principles, as adopted in the ITU-T D series of recommendations. These can be viewed here (under "Recommendations", click on "D-series").

Various categories of fixed and mobile operators can use COSITU:

  • Vertical operators managing international and national traffic with complete geographical coverage,
  • National operators with urban and interurban area coverage,
  • National operators with urban area coverage only.

In addition, regulators and public authorities in developing countries can use COSITU as a policy-making tool, to calculate costs, tariffs, and rates for telephone services.

COSITU can calculate cost-oriented tariffs for the following categories of telecommunication services:

  • Urban,
  • Interurban,
  • International,
  • Subregional, and
  • Interconnection.

The model also allows users to:

  • Simulate the effect on service tariffs of universal service or tariff rebalancing policies, and
  • Calculate inefficiency costs, and
  • Benchmark computed data.

For further information on COSITU, refer to the documents attached to this note, or visit the COSITU website.

 

See Also

3.3.3 Commonly Used Cost Models

Last updated 02 Dec 2008

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