Charging and Accounting for Network Use So far we have concerned ourselves entirely with the technical and operational side of running networks and providing telecommunications services. Network operators, if they wantto stay in business, also need to think about capital and operational costs, and how to recover them from their customers. | Networks and Telecommunications Design and Operation Second Edition. Martin P. Clark Copyright 1991 1997 John Wiley Sons Ltd ISBNs 0-471-97346-7 Hardback 0-470-84158-3 Electronic 35 Charging and Accounting for Network Use So far we have concerned ourselves entirely with the technical and operational side of running networks and providing telecommunications services. Network operators if they want to stay in business also need to think about capital and operational costs and how to recover them from their customers. For a network to be financially sound and independent its tariff structure needs to cover the total expenditure made up of provision of lineplant exchanges and buildings . capital costs service maintenance and administration costs interest on capital depreciation of equipment research and development future capital investment profit and shareholders earnings Government regulation in some countries set tight financial limits on profits and targets whereas in other countries the tariff structure is tailored to meet political ends and financing is direct from government coffers. Nonetheless the financial practices of charging and accounting for network use are common throughout the world and they reflect the principles explained in this chapter. RECOMPENSE FOR NETWORK USE Public telecommunications customers will be familiar with the arrival of their monthly or quarterly bill comprising both subscription charges paying for the rental of their line and a charge for usage the number of calls made or packets of data sent etc. . The practice of charging for network use is not confined to public networks private network operators especially the large corporations are increasingly levying internal 647 648 CHARGING AND ACCOUNTING FOR NETWORK USE transfer charges on individual departments for their use of telecommunications services. This is to keep close control of areas of company activity representing either profit centres or cost centres . Additionally .
