Tucows 2014 Annual Report Download - page 71
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Please find page 71 of the 2014 Tucows annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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Revenues derived from provisioning mobile phone service to individuals and small businesses through the Ting
website, are recognized once services have been provided. This is based upon either usage (e.g., minutes of traffic/bytes
of data processed), period of time (e.g., monthly service fees), various regulatory fees imposed on us by governmental
authorities or other established fee schedules. Revenues for wireless services are billed based on the actual amount of
monthly services utilized by each customer during their billing cycle on a postpaid basis. Our billing cycle for each
customer is computed based on their activation date and not on our reporting period. As a result, we are required to
estimate the amount of revenues earned but not billed from the end of each billing cycle to the end of each reporting
period. These estimates are based on an assessment of the actual services rendered to each customer since the last billing
period against our rate plans existing at that time. Adjustments affecting revenue may occur in periods subsequent to the
billing period when the services were provided and are recognized as revenue during the current billing cycle. In addition,
revenues associated with the sale of wireless devices and accessories to subscribers is recognized when title and risk of
loss is transferred to the subscriber and shipment has occurred. Incentive marketing credits given to customers are
recorded as a reduction of revenue.
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