301Net universal service cost of a carrier for a financial year

##### 301 Net universal service cost of a carrier for a financial year (1) A participating carrier’s net universal service cost for a financial year is: (a) if the carrier is a universal service carrier in relation to that financial year and the amount worked out using the formula in subsection (2) is greater than zero dollars—that amount; or (b) otherwise—zero dollars. (2) The formula is: Avoidable costs — Revenue forgone where: > Avoidable costs means the total of: (a) the amount (if any) by which the total costs (in this definition called the operating costs) incurred by the carrier during that financial year (other than the allowances, costs and amounts referred to in paragraphs (b), (c) and (d)) exceed what it is reasonable to expect that the operating costs would have been if the carrier had not supplied services to net cost areas during the financial year; and (b) the amount (if any) by which the total allowances made by the carrier for depreciation during that financial year of capital items exceed what it is reasonable to expect that the total allowances so made would have been if the carrier had not supplied services to net cost areas during the financial year; and (c) the amount (if any) by which the carrier’s total opportunity costs of capital for that financial year exceed what it is reasonable to expect that those costs would have been if the carrier had not supplied services to net cost areas during the financial year; and (d) the amounts (if any) specified, for the purposes of this paragraph, in such provisions of determinations under section 302 as apply in relation to the carrier, in relation to the financial year, because of section 303; > Revenue forgone means an amount equal to so much of the revenue earned by the carrier during that financial year as it is reasonable to expect that the carrier would not have earned during that financial year if the carrier had not supplied services to net cost areas during that financial year. (3) A reference in subsection (2) to a carrier supplying services to net cost areas during a financial year is a reference to the carrier: (a) supplying standard telephone services to persons in the net cost areas for that financial year for which the carrier was the universal service carrier; or (b) supplying, installing or maintaining payphones in those areas; during that financial year. (4) A participating carrier’s net universal service cost under this section for a financial year must be determined in accordance with such provisions of determinations under section 302 as apply in relation to the carrier, in relation to the financial year, because of section 303.