Accounting Standards and Regulations for the Type I Telecommunications Enterprises Article 20

Operating costs shall be attributed, under Articles 16 through 19, either directly to individual Licensed Service segments or to cost pools called Network Components, Supporting Functions, and General Administrative and Miscellaneous Functions. These are defined as follows:a. Services cost pool: This pool contains the costs that can be directly identified with a particular Licensed Service segment, including those costs of network components, supporting functions, as well as general administrative and miscellaneous functions that can be directly attributed to a particular Licensed Service segment.b. Network Components cost pool: This pool contains the costs relating to the various components of transmission, switching, local loop and other network plant and systems. The costs will be in respect of network components that cannot be attributed directly to a particular Licensed Service segment as they are utilized in the provision of a number of services.c. Supporting Functions cost pool: This pool contains the costs of functions necessary for the provision of services to the customers and for supporting the network components, excluding those functions which can be directly attributed to a particular Licensed Service segment. Examples of supporting functions include network planning, power plant, billing, maintenance, and customer services.d. General Administrative and Miscellaneous Functions cost pool: This pool contains the costs of functions that are not related to the provision of a particular service but are an important part of the operations of an Operator. Examples of such costs include planning, personnel, and general finance.Operating costs are those direct and indirect costs necessary and reasonable for an Operator to provide services. Examples of such costs include depreciation, personnel costs, and advertising expenditures.Operating costs with similar drivers may be combined in the attribution process.