International accounting rates: a perspective

The US has been trying to lower the absolute level of international accounting rates to lessen its telecommunications settlement deficit. Efforts focus on the overall level of accounting, but it is the cost-based division of the accounting rate that is responsible for the commercial potency. Cost-based accounting rates in a developing world may be of little help to the US, and the developing world may adversely be affected by fierce competition. The Group of 7 partners and the International Telecommunication Union are lending cooperation to the lesser developed countries.