This report will analyze the FCC's Accounting Rate policy by placing it within the general construct of international telecommunications and assessing whether FCC justifications and methodologies are appropriate and equitable in addressing the need for accounting rate reform. The first part of the report will provide a basic understanding of the subject by explaining concepts such as cost, market structure and regulation, supply and demand, the pricing of international calls, and trade in international telecommunications. Chapter two of this report will explore the multilateral backdrop within which these topics occur; more specifically, it will explore the effects of the WTO Basic Telecom Agreement on international telecommunications and the relationship it has to the FCC Accounting Rate Benchmark Order. Chapter three will review the FCC policy in detail, presenting policy justifications and the methodologies used to develop the ARBO. The last chapter of the report will examine international response to the Order, submit arguments for and against the policy, and conclude with a final analysis of the ARBO's appropriateness in light of today's changing markets.
--from the author's introduction.