(1) Where, following a request for compensation from a provider, the Regulator considers that the provision of a universal service obligation may represent an unfair burden on the provider, the Regulator shall, in accordance with paragraph (3), calculate the net costs of such provision.

(2) A request under paragraph (1) shall be accompanied by such supporting information as may be reasonably required by the Regulator for the purpose of paragraph (3). The data may be based on such period as may be specified by the Regulator.

(3) The Regulator shall calculate the net costs of its provision based on -

(a) the net costs, taking into account any market benefit which accrues to a provider designated for -

(i) the provision of a universal service obligation, or

(ii) the continuation of the existing universal service as set out in Regulation 73, in accordance with Schedule 6, or

(b) where applicable, the net costs identified by a designation method in accordance with Regulation 72(4).