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The Telecommunications (Interconnection) Regulations 1997

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SCHEDULE 5

The cost of universal service obligations shall be calculated as the difference between the net cost for an organisation of operating with the universal service obligations and operating without the universal service obligations. The calculation shall be based upon the costs attributable to—

(i)elements of the service which can only be provided at a loss or provided under cost conditions falling outside normal commercial standards; and

(ii)end-users or groups of end-users who, taking into account the cost of providing the network and service, the revenue generated and any geographical averaging of prices imposed by the licence, can only be served at a loss or under cost conditions falling outside normal commercial standards.

Revenues shall be taken into account in calculating the net costs. Costs and revenues should be forward-looking.

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