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Ministry of Justice of Ukraine

April 22, 2009

No. 363/16379

THE DECISION OF THE NATIONAL COMMISSION CONCERNING REGULATION OF COMMUNICATION OF UKRAINE

of April 2, 2009 No. 1438

About approval of the Procedure for regulation of rates for public telecommunication services

(as amended on 07-02-2017)

According to articles 18 and 67 of the Law of Ukraine "About telecommunication" the National commission on questions of regulation of communication of Ukraine RESHILA:

1. Approve the Procedure for regulation of rates for public telecommunication services which is applied.

2. To submit to economic management, Legal management in the procedure established by the legislation this decision on state registration to the Ministry of Justice of Ukraine.

3. The decision becomes effective from the date of its official publication.

Chairman

S. Kolobov

Approved by the Decision of the National commission on questions of regulation of communication of Ukraine of April 2, 2009, No. 1438

Procedure for regulation of rates for public telecommunication services

1. General provisions

1.1. This Procedure determines the mechanism of forming and establishment of rates for public telecommunication services.

1.2. This Procedure extends to all operators who provide public telecommunication services and are located in the territory of Ukraine.

1.3. Regulation of rates for public telecommunication services is performed by the National commission performing state regulation in the field of communication and informatization by limiting establishment of rates for services which list is determined by the Law of Ukraine "About telecommunications".

1.4. NKRSI in case of decision making concerning limiting establishment of rates considers information on activities of operators of telecommunications, and also other information on results of promulgation of such decisions and public listenings.

1.5. In this Procedure terms are used in such value:

economically reasonable expenses - expenses which determination is performed with observance of requirements of standards, standard rates, regulations, production schedules and taking into account of provision of services of the normalized quality;

cost public telecommunication uslugekonomichesk reasonable expenses which join in production cost, administrative expenses, expenses on sale connected with provision of public telecommunication services;

calculation of cost of public telecommunication service - determination of the size of expenses per unit of telecommunication services in separate expense types;

operating activiies - the main activities of operators of telecommunications, and also other types of activity which are not investing or financial activities.

2. Forming of rates for public telecommunication services

2.1. Forming of rates for public telecommunication services is performed based on calculations of rates which are carried out by operators of telecommunications proceeding from economically reasonable expenses received based on accounting data and data of income distribution on types of activity or with use of regulatory method based on the state and industry standard rates of use of material and fuel and energy resources, regulations and quotations on compensation.

2.2. The structure of economically reasonable expenses connected with provision of public telecommunication services joins expenses of operating activiies.

2.3. The list and structure of expenditure items are determined by the operator depending on type of service by provision of public telecommunication services and features of production process.

2.4. Join in expenses of operating activiies:

cost of sales (services);

administrative expenses;

distribution costs;

other operating expenses.

2.5. Cost of sales (services) joins direct material expenses, direct expenses on the compensation, other direct expenses and general production expenses connected with provision of public telecommunication services.

2.5.1. Direct material expenses the expenses connected with use of materials, spare parts, the acquired components and other materials necessary for ensuring production process are included.

2.5.2. Level of direct expenses on compensation is determined according to the legislation, and also general and industry agreements, the collective agreement. Direct expenses on compensation are included:

expenses on base pay of production personnel which activities are directly connected with production process of provision of public telecommunication services which are determined proceeding from the number of personnel, the tariff charges (salaries), price-work quotations for working and official pay rates for heads, specialists, employees;

expenses on the additional salary of production personnel which are determined proceeding from the amount of the established surcharges, allowances, the warranty and compensation payments provided by the current legislation, the awards connected with accomplishment of shop orders and functions;

other incentive and compensation payments to production personnel established according to the legislation.

2.5.3. Other direct expenses are included:

the amounts of assignments on social actions for production personnel, expenses on which payment directly join in production cost of services and in expenses of auxiliary productions;

depreciation of the main production means, other non-current tangible and intangible assets of production assignment;

other production expenses which can be directly carried to specific expense object.

2.5.4. General production expenses are included:

1) the expenses connected with:

production organization and management of the main and auxiliary production of divisions which are determined proceeding from the number of personnel, tariff and qualification structure of management personnel of workshops and sections and the tariff charges (salaries) (the main and additional salary, warranty and compensation payments, assignments on social actions, payment of official journeys, costs on preparation and retraining of personnel);

content, operation, repair, insurance, lease of fixed assets and other non-current assets of general production assignment, protection of subjects to production assignment, fee of other specialized enterprises, accomplishment of the scheduled works provided by project technical documentation;

heating, lighting, water supply, drainage system and content of production rooms;

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