Common use of Calculation Basis Clause in Contracts

Calculation Basis. The Tariff charged to each Client is calculated so that the full costs from the Service Provider are recovered (including a return) on a non-discriminatory basis from all users of the DTT Multiplexing, Distribution and Transmission Broadcast Service in accordance with the requirements of ComReg Decision D11/13. Tariffs are derived from the Tariff Model constructed on the basis of assumptions as regards, without limitation, the overall costs of the Service Provider and/or the number, types and total average bit rate consumption per year of the Content Transport Streams. Using the Tariff Model, the calculation of the Tariff charged to a Client is based on: (i) the relative consumption of the multiplexes’ bitrate by a Client's Content Transport Stream(s) (as compared to the Total Content Transport Stream(s)); (ii) a cost per kbps, derived from the actual and estimated number and type of Content Transport Streams using the multiplexes during the Term; and (iii) The smoothing of the Tariff over a five year period from 1st April 2014 to 31st March 2019 (“the Smoothing Period”) on the basis of the level of new or enhanced Content Transport Streams that the Service Provider reasonably believes will be contracted for during the Smoothing Period, with the Tariff being smoothed over such period on a pro rata basis of such estimates.