Decree No. 388 / 2006 Coll.
Ordinance on the net cost of universal service in electronic communications
Valid
Order
Effective from 01.09.2006
388
DECLARATION
of 19 July 2006
on the net cost of universal service in electronic communications
According to Article 48 (7) of Act No. 127 / 2005 Coll., on Electronic Communications and on the amendment of certain related laws (Act on Electronic Communications), as amended, the Ministry of Informatics provides:
Subject matter
This decree provides for a procedure for the calculation and determination of the net costs of the provision of universal service in electronic communications, including criteria for assessing the intolerable burden, a procedure for the calculation of the net costs of the provision of the sub-service, a procedure for defining the market advantages and documents to be supported by such calculations.
Calculation of the net costs of the universal service sub-services
(1) Net costs (1) for the provision of universal service are calculated as the sum of the net costs of each sub-service provided under the universal service.
(2) The net cost of the sub-service expressed in CZK is calculated using the formula:
CN = Nv-TVus + NIus,
where is
CN net cost of the sub-service
NV costs that an entrepreneur would avoid if it did not have an obligation to provide universal service, which is the difference between the cost effectively and effectively incurred of the sub-service of an entrepreneur with a duty to provide universal service and the cost effectively and effectively incurred for the sub-service of an entrepreneur without the obligation to provide universal service (EFSA)
TVus market benefits of an entrepreneur with a duty to provide universal service
NIus an appropriate amount of return on investments incurred for the provision of the sub-service.
(3) The cost effectively and effectively incurred by an entrepreneur under the obligation to provide a sub-universal service is clearly necessary for the provision of this service in the quality and under the conditions laid down in Decree No. 162 / 2005 Coll., on the determination of the quality parameters of the universal service and its limit values, and reported in accordance with a measure of a general nature issued under Section 86 (3) of the Act.
(4) The cost effectively and effectively incurred by an entrepreneur without the obligation to provide a sub-universal service is evidently necessary for the provision of a sub-universal service in the quality and under the conditions laid down in Decree No. 162 / 2005 Coll., on the determination of the quality parameters of the universal service and its limit values, and reported in accordance with a measure of a general nature issued under Paragraph 86 (3) of the Act, which an entrepreneur would have incurred in a situation where a universal service should not be required.
(5) The appropriate volume of return on investment shall be determined as the product of the pre-tax percentage of return on capital employed, as laid down in a general measure issued pursuant to Paragraph 86 (3) of the Act, and the remaining prices of the investment evidently necessary to provide a sub-service determined as an average for the settlement period.
(6) The market advantage from the provision of the sub-service shall be determined as the sum of the revenues from the provision of the sub-service, the revenues related to the provision of the sub-service and the monetary quantification of the indirect benefits that an entrepreneur has to provide the sub-service. The indirect advantage is the cost savings achieved in connection with the provision of the sub-service.
Criteria for the assessment of intolerable loads
The Authority shall apply the criteria for the assessment of the intolerable load:
(a) a comparison of the total net cost of an entrepreneur with the obligation to provide a sub-service with the pre-tax profit of that entrepreneur; and
(b) a comparison of the total net cost of the entrepreneur with the obligation to provide the sub-service with the total amount of the revenues of the undertaking's communication activity.
The pre-tax profit for the purposes of this decree is the operating profit from the operation of the communication activity of that entrepreneur.
Documents to be supported by net cost calculations
(1) The universal service provider requesting reimbursement of the net costs shall submit to the Office, together with the calculation of the net costs referred to in Article 2, for the settlement period:
(a) the accounts drawn up under the special legislation2),
(b) the results of separate cost and revenue records;
(c) depreciation plan 2) and depreciation applied for the settlement period;
(d) an overview of the costs which the universal service provider would not have incurred had the universal service obligation not been imposed on it;
(e) a list and quantification of the market benefits supported by accounting documents.
(2) The provider providing the sub-service referred to in Article 38 (2) (a) of the Act shall, for the settlement period together with the documents referred to in paragraph 1, provide the Office with a list of newly established and operational end points used to access the Internet at a fixed location, indicating the average unit cost of setting up the network end point and the total number of network end points operated used to access the Internet.
(3) The Provider providing the sub-service referred to in Article 38 (2) (b) of the Act shall, for the settlement period together with the documents referred to in paragraph 1, submit a statement indicating the total number of network end points operated, used in a fixed place for the voice communication service and a list of newly established and operational end points used only for the voice communication service, indicating the average unit costs of setting up the network end point.
(4) The Provider who provides the sub-service pursuant to Section 38 (2) (c) of the Act shall, for the settlement period, submit to the Office, together with the documents referred to in paragraph 1, a list of consumers to whom a specially equipped telecommunications terminal equipment has been provided in a given year and a list of consumers using a special tariff pursuant to Section 43 (2) (b) of the Act.
(5) The Provider who provides the sub-service pursuant to § 38 (2) (d) (2) and (4) of the Act shall, for the settlement period, submit to the Office, together with the documents referred to in paragraph 1, a list of consumers to whom the additional service has been provided, indicating the amount of the price advantage.
(6) The provider which provides special prices pursuant to Section 38 (3) of the Act submits to the Office, for the settlement period, a list of persons with special social needs and to whom special prices have been provided under Section 38 (4) of the Act, indicating the amount of the price advantage.
Efficacy
This decree shall take effect on the first day of the month following its publication.
Minister:
Ing. Bérová v. r.
1) Article 48 of Act No. 127 / 2005 Coll., on Electronic Communications and on the amendment of certain related laws (Act on Electronic Communications), as amended.
2) Act No. 563 / 1991 Coll., on Accounting, as amended.
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Regulation Information
| Citation | Decree No. 388 / 2006 Coll., on the net cost of universal service in electronic communications |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.08.2006 |
|---|---|
| Effective from | 01.09.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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