Active Radar Calibrators (ARC), also called calibration transponders, are often used as reference targets for absolute radiometric calibration of radar systems due to their large achievable Radar Cross-Section (RCS). However, before using a transponder as a reference target, the hardware itself has to be calibrated. A novel method, called the three-transponder method, was proposed some years ago and allows for RCS calibration of digital transponders without using any RCS targets as reference. In this paper, this technique is further refined and applied to a setup utilizing only one digital transponder. The accurate measurement design is described and a novel, elaborated data processing scheme is developed to minimize remaining noise and clutter effects in the data. A comprehensive error analysis is presented in the second part of this paper.