Argos New Tariff Structure Agenda

1
Argos New Tariff StructureAgenda

• JTA Guidelines and Constraints
• Addressing guidelines principles
• New Tariff structure
• Next Steps

2
JTA New tariff from 2005, Guidelines

• The benefits of JTA participation should be
  shared equally amongst all participants (Users).
• The revenue collected from Users should meet the
  costs of providing the service.
• Developments required by Users should be funded
  by Users.
• (iv) Costs of developments not of benefit (or of
  marginal benefit) and not driven by User
  requirements should not fall on Users.

3
JTA New tariff from 2005, Guidelines

• There should be a clear division between a basic
  (funded) service and other (e.g. value added)
  services.
• The Tariff structure should be simplified to
  reduce the number of service categories.
• System developments should be fully sponsored and
  those affecting Users agreed in advance.
• THE TARIFF SHOULD ALSO PROVIDE INCENTIVE TO
  INCREASE SYSTEM USE

4
JTA Constraints

• (i) A clear statement of the cost of User
  participation should be made annually, with an
  annual (budget) forecast including the impact of
  developments.
• (ii) The Tariff should be designed to meet the
  identified costs and an allowance made for agreed
  development share and contingencies.
• (iii) The base line for 2005 participation was
  suggested as the actual costs of the JTA for
  2004.
• The transition to the new tariff agreement in
  2005 should be as seamless as possible.

5
Addressing JTA Guidelines Principles

• JTA users pay for JTA related costs only
• Methodology to calculate JTA related cost has
  been completed.
• Simplifying the system
• Same price for all (bonus discrepancy effect
  removed)
• Invoicing upon actual consumption and not
  committed number
• No more supplements, excess use, administrative
  fees etc
• Just one service category location and/or data
  collection
• Basic service includes multi-satellite and
  Location /Auxiliary location
• A 5 Year Plan is used to balance charges and
  revenues, adjust cost parameters according to
  system use growth

6
Addressing JTA GuidelinesRole of the ROCs

• Provide country forecast for next year(s)
• Invoice their Users
• Impact of user direct invoicing also under study
• Invoicing frequency TBD
• Inform Users in their country and promote Argos
  applications

7
Tentative New Tariff structure

• What is charged through the JTA
• Argos basic services (includes multisat and
  Auxiliary Location /service Plus, administrative
  fees, no more over 6 loc/10 data collection
  excess)
• Databank, ADS and other added-value services
  charged separately
• Services categories
• One service only Location and/or Data collection
• Accounting units
• Monthly fee active PTTs (seen at least once in
  the month)
• Upon consumption PTT day unit (seen at least
  once in the day)

8
Tentative New Tariff structure

• PTT Year Price (YP) A Months B Day Units
• Argos revenue JTA Argos Expenses (JAE)
• JAE (plan) Sum (YP) on all PTTs
• A and B adjustment to find an as seamless as
  possible a solution
• Simulations with Y2003 values

9
TENTATIVE FIVE YEAR PLAN
10
Next Steps

• Complete simulations, draft the proposed
  solution(s) for JTA meeting
• Obtain agreement on a solution AND a 5 Y plan at
  JTA meeting
• Inform Users
• Set-up the solution and monitoring tools for
  Y2005
• Opscom 2005 report on the implementation
• JTA 2005 report on the implementation and
  results, apply adjustment if needed