# Presentation: 318931

## Argos New Tariff StructureAgenda 

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

## 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.

## 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**

## 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.

## 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

## Addressing JTA GuidelinesRole 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

## 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)

## 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

## TENTATIVE FIVE YEAR PLAN

## 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