Falling through the cracks: International accounting rate reform at the ITU and WTO

Rob Frieden

Telecommunications Policy, 1998, vol. 22, issue 11, 963-975

Abstract: Heightened attention to international accounting rates at the ITU and the WTO has led some observers to conclude that carriers soon will impose cost-based termination charges. This article concludes that while accounting rates have declined on some routes, many incumbent carriers can and will delay or thwart progress. The article examines the FCC's unilateral regulatory initiative as evidence of a growing schism between governments keen on immediate progress and those that fear a 'free fall' in accounting rates and quick end to settlement surpluses. The article also considers technological innovations like call-back and Internet telephony with an eye toward assesssing whether and how widespread accounting rate reductions will occur.

Date: 1998
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