Principles of ADS-B Cost Apportionment and Service Arrangements

Basics of ADS-B Sharing
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Principal Engineer (Surveillance)
SEA/BOB ADS-B WG/8 – SP/11
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Cost Apportionment Principles
Arrangements to Provide Services
Data Sharing Agreement
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General: User-pay principle
If an ADS-B GS serves solely (or significantly)
the need of the owner ANSP, the cost of
installation and maintenance should be borne by
the owner ANSP.
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If an ADS-B GS provides surveillance data to the
owner ANSP as well as the adjacent ANSPs, the
owner ANSP may, if it desires to do so, work out
the cost apportionment with the adjacent
ANSPs. The cost components below may be
considered:
(i) installation of the ADS-B ground station;
(ii) maintenance & operations of the ADS-B ground
station; and
(iii) sharing of ADS-B surveillance data.
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If it is necessary for an ADS-B ground station to
be installed in one State which serves solely (or
significantly) the needs of an adjacent ANSP
(the user ANSP), the cost of installation and
maintenance of the ADS-B ground station
should as far as possible be borne by the user
ANSP.
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The tier of service level should also be
considered when formulating the actual cost
apportion.
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Indonesia - Singapore
Exchanges ADS-B data without cost
Cost of VHF facilities charged to Singapore
Singapore – Vietnam
Cost of implementing and maintaining ADS-B and
VHF charged to Singapore
Australia – Indonesia
Exchanges ADS-B data without cost
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Provider provides the service
Provider will install the equipment and performs the
maintenance
User pays the provider directly
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Delegating the responsibility to appointed
company
Provider agreeing to data sharing
Provider appoints a company to provide services
User pays the appointed company directly
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Mixture of both
Part of the services performed by providers
Part of the services performed by appointed company
User pays to both provider and appointed company
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Third Parties Service Provider
States become users and all pay to the service
provider.
States can negotiate directly with service provider.
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Upfront payment vs recovery over a period
Upfront payment
Higher upfront cost
Recovery over a period
Interest may be imposed
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Pre-amble
ADS-B enhances safety
APANPIRG, IATA and CANSO encourages such collaboration
Definitions and Interpretations
Defines the various terms
Objective of the Agreement
Improve safety and operational efficiency by providing ADS-B coverage
Where applicable, in areas including and up to 150NM from FIR boundary
Provision of Equipment and Private Circuits
Parties responsible for providing equipment and private circuits in their premises.
They will collaborate for testing.
Operations and Maintenance
Parties responsible for maintain equipment and private circuits in their premises.
Parties inform each other in the event of breaks in service.
Modifications
Parties to reach an agreement whenever modifications are necessary
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The agreed cost apportionment
Limitations on Use and Communication of ADS-B Data
Data will be used for civil air traffic control
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[To be mutually agreed]
Force Majeure
Provider will not be in breach if service breaks during force mejeure
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[To be mutually agreed]
Final Provisions
Nothing in the agreement prejudice primary obligation of parties to provide safe ATC.
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The agreed duration of the agreement.
Entire Agreement
Stating that the Agreement is the entire agreement. No other side agreements
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Amendment
No modification of agreement unless in writing and signed by authorised representative.
Rights of Third Parties
Rights of third parties are excluded
Annex A - Providers and Users of ADS-B and DCPC Facilities
To identify the providers and the users
Annex B - Implementation Schedule
To state the implementation and testing schedule of the various facilities
Annex C – Technical Scope of Works
To define the scope of works of each party and the technical details of the facilities.
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To define the manner cost is shared and the manner of payment.
Annex E – Correspondence
To define the official means of correspondence.
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Contract period
Some organisations have maximum number of years
for agreements
Depreciation period of equipment
Some organisations impose depreciation periods
Capital investment has to be recovery by end of
depreciation period
Choice of words
Different States interprete words slightly differently
Need to find compromise
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Financing
Some organisations pay capital investment upfront
Others pay over a certain period
Bank interest is a consideration
Payment
Choice of currency
Payments dates
Before or after service
Loss of services
Penalty
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Understanding the principles of cost apportionment in ADS-B systems is crucial for effective service arrangements. The general user-pay principle dictates that the owner ANSP bears the installation and maintenance costs if the ADS-B ground station serves their needs solely. However, when providing surveillance data to adjacent ANSPs, cost-sharing arrangements can be negotiated. Various factors such as service level tiers and cross-border data exchanges influence the cost apportionment decisions. This comprehensive overview delves into the intricate details of allocating costs and establishing service agreements in the realm of ADS-B technology.


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  1. SEA/BOB ADS-B WG/8 SP/11 Basics of ADS-B Sharing Ho Wee Sin Principal Engineer (Surveillance)

  2. Contents Cost Apportionment Principles Arrangements to Provide Services Data Sharing Agreement

  3. COST APPORTIONMENT PRINCIPLES

  4. Cost-Apportionment Principles General: User-pay principle If an ADS-B GS serves solely (or significantly) the need of the owner ANSP, the cost of installation and maintenance should be borne by the owner ANSP.

  5. Cost-Apportionment Principles If an ADS-B GS provides surveillance data to the owner ANSP as well as the adjacent ANSPs, the owner ANSP may, if it desires to do so, work out the cost apportionment with the adjacent ANSPs. The cost components below may be considered: (i) installation of the ADS-B ground station; (ii) maintenance & operations of the ADS-B ground station; and (iii) sharing of ADS-B surveillance data.

  6. Cost-Apportionment Principles If it is necessary for an ADS-B ground station to be installed in one State which serves solely (or significantly) the needs of an adjacent ANSP (the user ANSP), the cost of installation and maintenance of the ADS-B ground station should as far as possible be borne by the user ANSP.

  7. Cost-Apportionment Principles The tier of service level should also be considered when formulating the actual cost apportion.

  8. Cost-Apportionment Principles Indonesia - Singapore Exchanges ADS-B data without cost Cost of VHF facilities charged to Singapore Singapore Vietnam Cost of implementing and maintaining ADS-B and VHF charged to Singapore Australia Indonesia Exchanges ADS-B data without cost

  9. ARRANGEMENT TO PROVIDE SERVICES

  10. Possible arrangements (1) Provider provides the service Provider will install the equipment and performs the maintenance User pays the provider directly

  11. Possible arrangements (2) Delegating the responsibility to appointed company Provider agreeing to data sharing Provider appoints a company to provide services User pays the appointed company directly

  12. Possible arrangements (3) Mixture of both Part of the services performed by providers Part of the services performed by appointed company User pays to both provider and appointed company

  13. Possible arrangement (4) Third Parties Service Provider States become users and all pay to the service provider. States can negotiate directly with service provider.

  14. Financing Models Upfront payment vs recovery over a period Upfront payment Higher upfront cost Recovery over a period Interest may be imposed

  15. DATA SHARING AGREEMENT

  16. Items in Data Sharing Agreement Pre-amble ADS-B enhances safety APANPIRG, IATA and CANSO encourages such collaboration Definitions and Interpretations Defines the various terms Objective of the Agreement Improve safety and operational efficiency by providing ADS-B coverage Where applicable, in areas including and up to 150NM from FIR boundary Provision of Equipment and Private Circuits Parties responsible for providing equipment and private circuits in their premises. They will collaborate for testing. Operations and Maintenance Parties responsible for maintain equipment and private circuits in their premises. Parties inform each other in the event of breaks in service. Modifications Parties to reach an agreement whenever modifications are necessary

  17. Items in Data Sharing Agreement Costs The agreed cost apportionment Limitations on Use and Communication of ADS-B Data Data will be used for civil air traffic control Liability [To be mutually agreed] Force Majeure Provider will not be in breach if service breaks during force mejeure Settlement of Disputes [To be mutually agreed] Final Provisions Nothing in the agreement prejudice primary obligation of parties to provide safe ATC. Duration The agreed duration of the agreement. Entire Agreement Stating that the Agreement is the entire agreement. No other side agreements

  18. Items in Data Sharing Agreement Amendment No modification of agreement unless in writing and signed by authorised representative. Rights of Third Parties Rights of third parties are excluded Annex A - Providers and Users of ADS-B and DCPC Facilities To identify the providers and the users Annex B - Implementation Schedule To state the implementation and testing schedule of the various facilities Annex C Technical Scope of Works To define the scope of works of each party and the technical details of the facilities. Annex D Cost To define the manner cost is shared and the manner of payment. Annex E Correspondence To define the official means of correspondence.

  19. Likely issues to be resolved Contract period Some organisations have maximum number of years for agreements Depreciation period of equipment Some organisations impose depreciation periods Capital investment has to be recovery by end of depreciation period Choice of words Different States interprete words slightly differently Need to find compromise

  20. Likely issues to be resolved Financing Some organisations pay capital investment upfront Others pay over a certain period Bank interest is a consideration Payment Choice of currency Payments dates Before or after service Loss of services Penalty

  21. Thank You

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