---
title: "Charging plan in a telephone network"
subject: "Telecommunications"
chapter: 7
key: "semester_8/telecommunications:charging-plan-telephone"
source: https://www.bctengineer.com/q/semester_8/telecommunications/charging-plan-telephone
site: BCT Engineering
---

# Charging plan in a telephone network

Telecommunications · Chapter 7: Telecommunication Regulation

- Asked in: 2070 Asar, 4 marks
- Video: [Lec-27_Numbering and Charging Plan | Telecommunication Engineering | ICT Engineering](https://www.youtube.com/watch?v=RCy6gQcVyWU) — Computer_IT_ICT Engineering Department : LJIET
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/telecommunications/charging-plan-telephone
- Whole chapter: https://www.bctengineer.com/md/semester_8/telecommunications/chapter-7

## Question

Describe the charging plan used in a telephone network.

## Short answer

A telephone charging plan includes installation, monthly rental, and usage charges based on duration, distance, and time of day. Charging can be flat rate, message rate, or measured (time-distance) rate. Billing uses periodic pulse metering, detailed call records (CDRs), or real-time prepaid deduction.

## Answer

A **charging plan** (tariff plan) is the method used to calculate how much a subscriber pays for telephone service. Charges should recover costs, be fair to users and be simple to apply.

#### Components of a charge

1. **Installation (connection) charge:** one-time fee for a new line.
2. **Rental:** fixed monthly charge for access.
3. **Call (usage) charge:** depends on
   - **duration** of the call,
   - **distance** (local, national/STD, international/ISD),
   - **time of day** (peak or off-peak).
4. **Charges for special services:** value-added services, data.

#### Types of charging

- **Flat rate:** fixed monthly charge, unlimited local calls.
- **Message rate:** fixed charge per call regardless of duration.
- **Measured (time and distance) rate:** charge per unit of time, with the unit rate depending on distance and time.

#### Methods of recording

- **Periodic pulse metering (Karlsson method):** the exchange sends metering pulses at a rate set by the distance band; each pulse adds one unit to the subscriber's meter. A longer distance gives a higher pulse rate.
- **Detailed billing / CDR (AMA):** the SPC exchange records each call (calling and called number, start time, duration) in a call detail record; the billing system prices it. This also supports itemised bills.
- **Prepaid charging:** an IN/online charging system deducts balance in real time.

```text
 Call --> Exchange --> metering pulses / CDR
                          |
                    Billing system --> Bill
```

**Example:** if a local unit is Rs 1 per 3 minutes, a 7-minute local call is charged 3 units = Rs 3.

## Related in Telecommunications

- [NTA regulations and charging plan](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Anta-regulation-charging-plan) — Telecommunications, chapter 7, asked 2×
- [Short note: Telephone numbering in PSTN](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Ashort-note-pstn-numbering) — Telecommunications, chapter 7, asked 2×
- [Telephone exchange and switching hierarchy](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Aexchange-switching-hierarchy) — Telecommunications, chapter 1, asked 3×
- [Switching hierarchy and evolution until the telephone](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Aswitching-hierarchy-telephone-evolution) — Telecommunications, chapter 1, asked 3×
- [Telephone exchange structure; TST vs STS](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Aexchange-structure-tst-sts) — Telecommunications, chapter 4
- [Network planning for remote area telephony](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Anetwork-planning-remote-area) — Telecommunications, chapter 1

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