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Settlement Methods
4.2
24 October 2008
Copyright Notice
Copyright 2008 GSM Association
Antitrust Notice
The information contain herein is in full compliance with the GSM Associations antitrust compliance policy.
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GSM Association
Official Document: BA.04
Table of Contents
SETTLEMENT METHODS.................................................................................................3
1. GENERAL SETTLEMENT METHODS........................................................................3
2. SETTLEMENT OF DISPUTED AMOUNTS..................................................................3
3. SETTLEMENT OF THE INVOICE AMOUNTS...............................................................4
4. BANK CHARGES...................................................................................................6
DOCUMENT MANAGEMENT.............................................................................................8
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GSM Association
Official Document: BA.04
1. SETTLEMENT METHODS
GSM Operators whose Customers roam internationally or use other services of networks
other than their own HPMN will be billed in respect of the services used. It is important
therefore that the invoicing party should have confidence that their bills will be paid in a
timely fashion.
1.2 The GSM Association recommended settlement methods are the following:
- (2) Direct Full Payment with Currency conversion - Direct Payment in the
Local or Payment Currency of the invoicing PMN Operator as calculated from
the SDR amount indicated on the invoice and/or credit note.
1.3 PMNs may bilaterally agree on other settlement methods (e.g. by use of any other
financial clearing house).
2.1 Unless otherwise agreed and in order not to delay the settlement process, payment
for undisputed amounts shall be made by the agreed due date (as stated in the
Agreement). Dispute resolution shall follow the process described in BA.01 If the
debtor is ultimately found liable for the disputed charges, the interest rate as stated
in the Agreement shall be applied to the disputed charges beginning from the
agreed due date of the invoice from which the dispute arose .
However if the disputed amount is less than 7.5% of the total invoice or ten
thousand (10,000) SDR, whichever is the lesser amount, then payment by the
debtor will be made in full. If the debtor is ultimately found not liable for the disputed
charges, it can then submit a request for a Credit Note to the creditor according to
the process described in BA01.
2.2 Non settlement should only result from e.g. bankruptcy or other financial problems
and not from a dispute as to the amount payable.
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GSM Association
Official Document: BA.04
2.3 The general rules concerning the right to claim for disputed amounts and the
resolution of these claims when no agreement has been reached are detailed in
BA.01.
Due date of the monthly invoices has been agreed between operators, the due date
is stated in AA.13 C3.2 duly signed by the operators.
If the payment is not received by the creditor by the due date, creditor has a right to
charge an interest amount on the overdue amount (unless there is a dispute).
Interest rates have also been agreed and stated in AA.13 C3.2.
Operators may change the currency, which they agreed for settlement of roaming
and interworking charges. In case, an operator would like to change the currency,
the AA.13 C3.2 or the relevant interworking agreement must be re-negotiated and
the date from when the change take effect agreed and a new AA.13 C3.2 signed by
the operators.
Debtor should send a payment notification by e-mail to the creditor which contains a
detailed payment information of the payments made. This will help creditor to match
the payment amounts with the related invoices accurately. Payment notifications
must be made available within 5 days of the payments made.
Operators might change bank account that they declared for the settlement. The
amended information must be indicated in AA.14. Operator should notify his
Partners via email to access his latest AA.14 via the InfoCentre.
Operators should only consider the bank account information in AA.14. Any given
information regarding bank accounts on monthly invoices or other sources must be
ignored.
It shall be common practice for roaming partners to settle charges for roaming traffic
on a monthly basis.
However, the due amounts associated to the settlement of roaming traffic of many
roaming relationships are often quite small, sometimes less than the bank fees
associated to the execution of a payment.
This can happen when a particular roaming relationship does not generate a high
volume of roaming traffic or when the inbound roaming traffic outbalances the
outbound roaming traffic by a small amount, when using the Netting Procedure.
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GSM Association
Official Document: BA.04
When this is the case, the two parties may agree in implementing a specific
settlement procedure for small amounts (annually, quarterly, etc.).
One criterion to set such debt threshold could be to calculate bank charges for one year
and compare it to the actual revenue associated with that partners roaming traffic.
In case different settlement currencies are requested by the two parties, equivalent debt
thresholds have to be defined for both currencies.
Having agreed the applicable debt thresholds, each party will act as follows:
For each invoice period and for each new due amount resulting from the agreed settlement
method, the resulting debtor will add this due debt amount to the total of previously due
debt amounts not yet settled.
In case the new total of due debt amounts will exceed the applicable debt threshold, the
debtor will execute a single payment transaction to settle the total of due debt amounts, that
will then be reset to zero accordingly;
Otherwise, the total of due debt amounts will be carried forward to the next invoice period.
However, each party agree to settle the total of due debt amounts once per year during one
specific invoice period, to be agreed by the parties, and independently from the previous
rule. This will ensure that any outstanding due amount will be settle at least once per year.
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GSM Association
Official Document: BA.04
Example Scenario:
Roaming Relationship between PMN A and PMN B
Agreed Settlement Method: Direct Payment
Debt Threshold for PMN A: 800 USD (PMN Bs settlement currency)
Debt Threshold for PMN B: 500 EUR (PMN As settlement currency)
Agreed invoice period for yearly settlement: April
4. BANK CHARGES
Where bank fees occur, any such expenses imposed by the debtors bank(s)
including intermediate and correspondent banks used by the debtor to make the
payment, shall be borne by the debtor.
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GSM Association
Official Document: BA.04
In the case where the debtor pays in a different currency than agreed in the
applicable annex or pays the wrong bank account, the creditor has the right to
request a credit from the debtor for the extra cost
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GSM Association
Official Document: BA.04
DOCUMENT MANAGEMENT
Document History
Other Information
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GSM Association
Official Document: BA.04
Type Description
Document Owner BARG - FCSIG
Editor / Company Marcel Stevens (BASE)
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