Concept of Tariff
in Multimedia Age


The multimedia age will require high-speed transmission and reception of a large amount of video and data signals along with sound and voice data. For development of multimedia, a variety of network services should be introduced to meet these needs, along with the development of applications, LANs, terminals, and contents. It is important for the new tariff to meet various needs at an appropriate rate.

Basic Concept of Tariff in Multimedia Age

  1. New tariff system based on the flat rate independent of the distance and duration, suitable for transmission of a large amount of information, instead of a tariff system with the telephone-type distance and duration as the charging factors
  2. Various charging methods reflecting various communication systems (synchronous/asynchronous, fixed/variable speed, connection/connection-less type)
  3. Various charging methods reflecting various service grades [guarantee type (highly reliable)/best-effort type (reasonable)]
  4. Customization of tariff system allowing the charging method depending on the service type, call time and duration, and traffic for each user
Communication system A B C D
Synchronous Asynchronous
Fixed speed Variable speed
Connection type Connection-less type
Transmission/reception of audio, video, and data signals at fixed speed (Telephone, line switching data communications) Transmission/reception of video signals at variable speed (Video transmission service at variable speed) Transmission/reception of data signals in connection mode (Packet, frame relay, cell relay) Transmission/reception of data signals in connection-less mode (IP routing service typical of the Internet)
Cost structure (image) Cost image Subscriber access system
Network system
Depending on service grade
Charge (basic pattern) Dual charging of "flat rate + meter rate" Flat rate
  • Flat rate by capacity (speed) for the subscriber access system
  • Meter rate for the network system
    Charging depending on the traffic (*) and distance (The difference also depends on each service class. A => C: Reduction)
  • Same as left
  • Flat rate for the network system

Charging independent of the traffic and distance

The flat rate is available even for communication systems A, B, and C, reflecting diversified service grades.
(For example, communication is disabled when the line is in a jam; service is available only when it is slack.)

*The charging unit is: "speed x duration" for fixed-speed type; "amount of information transmitted" for variable-speed type.