The purpose of Maritime Radio Accounting Authorities is to facilitate the
effective collection and distribution of telecommunications charges for non-emergency
radio telephone and telex calls from ships into the international subscriber
networks.
The Radiocommunications Agency is responsible for appointing and monitoring
Accounting Authorities based in the United Kingdom, or authorised to account
for ships registered in the United Kingdom. Accounting Authorities are important
to the economy - the market leaders have large foreign currency earnings and
turn over several tens of millions of pounds p.a. - yet there is very little
known about these operations outside the shipping industry. Even within the
industry there is often a poor understanding of how Accounting Authorities
operate and how their operations are governed.
The basic role, responsibilities and duties of Accounting Authorities derive
from the International Telecommunication Union (ITU) Convention and are set
down in Article 66 of the Radio Regulations and Appendix 2 of the International
Telecommunication Regulations. Recommendation D90 of the ITU Telecommunication
Standardisation Sector gives directions on charging, accounting and refunds
in the Maritime Mobile and Maritime Mobile-Satellite Services.
There is, however, little direct guidance on the standards of business
practice that ought to be provided by an Accounting Authority, or on the role
of an Administration in monitoring standards. This information sheet is intended
to give an outline of the purpose and function of Accounting Authorities and
to provide guidance on the role of both Accounting Authorities and Administrations
in promoting high standards of business efficiency and competitiveness within
an effective regulatory framework.
Why
are Accounting Authorities needed?
Maritime Radio Traffic Accounting came into existence to reduce the number
and variety of bills and settlements passing between operators and shipowners,
which then needed extensive administrative effort to process e.g. identify
calls, convert call charges to and from various currencies, reconcile these
charges, etc.
Historically, an Accounting Authority was associated with a marine radio
equipment supplier. Radio Traffic Accounting thus became an integral part
of the normal business, which also included the supply of radio officers to
vessels.
The current market situation in mobile communications is changing rapidly
with the advent of satellite systems, and the move away from terrestrial systems
as the sole means of radio communications. For maritime mobile communications
in particular, recent developments have brought far-reaching changes in systems,
equipment and procedures, e.g:
the introduction of the Global Maritime Distress and Safety System
(GMDSS);
easier, more reliable access to international telephone and data networks;
and
the use of advanced billing systems such as credit/charge cards.
What is the role
of an Accounting Authority?
An Accounting Authority effectively acts as an intermediary, between the
mobile subscriber and the service providers/network operators. As such, Accounting
Authorities must undertake to operate in accordance with the International
Regulations and Recommendations of the ITU which define their responsibilities
and duties.
Financial
responsibility
In the modern environment, an Accounting Authority must be a business entity
willing and able to provide a continuous worldwide service to maritime subscribers.
An Accounting Authority must also have the resources and expertise necessary
to handle the complexities of billing international mobile traffic.
Accounting Authorities are responsible for:
the collection of charges from ship radio station licensees for maritime
terrestrial and satellite telecommunications services on the basis of
accounts received from service providers and network operators;
the payment of charges to service providers and network operators for
telecommunication services used by those ship radio station licensees
or shipowners for whom they have account responsibility, and ensuring
that these payments are made in accordance with the applicable ITU Regulations
and Recommendations.
Information
exchange
The prompt and accurate exchange and dissemination of information is essential
to the proper functioning of the international maritime radio billing system,
and to maintaining effective quality control.
Accounting Authorities are therefore expected to:
notify the appropriate service providers of new subscribers and any
change in status of existing subscribers, e.g. a change in ownership or
flag and/or the cessation of contract, or the deletion of a subscriber
- notification should, as far as practical, be immediate; and
provide updated mobile subscriber lists to service providers on a regular
basis, and issue new lists at least every 90 days with all changes identified
clearly.
What
is the role of an Administration?
Registration
A national Administration is responsible for registering Accounting Authorities
based within its territory with the ITU, and allocating each with a unique
Accounting Authority Identification Code (AAIC). The AAIC consists of a two
letter country code followed by a two digit numeric code denoting the particular
Accounting Authority.
It is important to note that the AAIC is allocated by the country in which
the Accounting Authority is based, regardless of whether or not the Accounting
Authority concerned is responsible for ships licensed by that Administration.
An Administration may also designate Accounting Authorities registered by
other Administrations to account for its own licensed ships. All such designations
shall be notified to the ITU, but the current status of the AAIC should first
be confirmed with the Administration of the country in which the Accounting
Authority is based.
An Administration therefore maintains, and notifies to the ITU, two lists
of recognised Accounting Authorities. List A details only those Accounting
Authorities authorised to account for ships licensed by that Administration,
irrespective of whether or not the Accounting Authority is based within the
Administration’s territory. List B, in contrast, details all the Accounting
Authorities based within an Administration’s territory, though not necessarily
authorised to account for ships licensed by that Administration. A List B
Accounting Authority does not have to be on the List A of its home Administration
for it to be accepted on to the List A of another Administration.
A combined alphabetical list of all recognised Accounting Authorities,
together with their AAIC numbers, is also supplied to the ITU. Administrations
are, of course, responsible for providing rapid notification to the ITU of
any additions, amendments or deletions to their Accounting Authority listings.
Regulation
The activities of Accounting Authorities need to be regulated both to maintain
a competitive business environment and to ensure that business operations
are carried out on a sound financial and managerial basis. Administrations
should therefore conduct an annual review of the financial position and effectiveness
of each Accounting Authority. Recommendation D90 urges all Administrations
to ensure that the number of their List A Accounting Authorities does not
exceed a maximum of 25.
A more effective, yet competitive, regulatory regime is, however, required.
Recommendation D90 is currently undergoing a review which addresses the key
issue of monitoring performance and quality. This should help to foster a
competitive environment by encouraging Administrations to remove non-performing
or dormant Accounting Authorities from their listings.
United
Kingdom Accounting Authorities
The Radiocommunications Agency’s regulatory policy is intended to maintain
a competitive business environment for UK Accounting Authorities. To this
end, the Agency has already instituted its own annual review procedure, and
strictly applies the Recommendation D90 limit of 25, or fewer, List A Accounting
Authorities. Non-functional Accounting Authorities will be removed from the
UK listings and individual businesses will not be permitted to operate with
multiple AAIC numbers.
If indicated by the need to maintain effective competition, or to provide
for distinct market sectors in the field of maritime communications, new applications
to act as UK Maritime Radio Accounting may be invited. Evidence of appropriate
management expertise and financial standing would be required, as would a
comprehensive business plan.
Further
information
For further information on Accounting Authorities, or copies of the current
UK listings of Accounting Authorities, please contact the Radio Regulatory
Unit at:
Aeronautical &
Maritime Licensing Section
Radiocommunications
Agency
Wyndham House
189 Marsh Wall
London E14 9SX
