The development towards packet switching is a process that will take a number of years. For some time still to come, circuit switched services will be important in the fixed network area as well as the mobile area. For international communication, the consequence is that service provision will still be running on the basis of well-known structures - including debatable, to say the least, tariff schemes. In fixed line communication, international tariffs have for many years been priced high above costs, based on international accounting rates, and this system continues in the mobile area with high international roaming prices. When dealing with international communication, this is an issue where a discussion on regulatory intervention is obviously required[1].
International tariffs for circuit switched services have been on the agenda in international organizations, e.g. the International Telecommunication Union (ITU) and the World Trade Organization (WTO), for a long time. It has been difficult to make any progress, primarily because operators have an interest in high international tariffs, as they make money on this traffic and have a cartel-like mutual benefit in keeping international tariffs high. In connection with developing countries, it should also be mentioned that with regard to countries with a larger ‘export’ than ‘import’ of communication services in the shape of either incoming traffic or roaming of mobile users from other countries, there has also been a certain reluctance towards abandoning the international accounting rate system and now also the roaming system. The reason is that the income from these areas, in some countries, still constitutes an important share of total income of operators. However, with the liberalization and the processes of privatization, the interests of operators and public authorities will increasingly diverge, and public authorities will be more inclined to see to the interests of the users of communication services, which include reasonable rates. Moreover, the massive bypass occurring across the world also puts great pressure on the international settlement regime and will ultimately make it meaningless.
ENDNOTES
[1] In the mobile area, the International Telecommunication Users Group (INTUG) has been very active in working for lower international mobile tariffs.