Schedule 10: Recovery of OFCOM’s initial costs
This Schedule requires OFCOM to seek to recover their "initial costs", which are defined at paragraph 1(3)(a).
	Paragraph 1 makes it clear that the amount to be recovered is the amount of Wireless Telegraphy Act (WTA) receipts retained by OFCOM to meet those costs. The first phase of this process is set out in paragraph 2. OFCOM will charge additional fees over a number of years, beginning after the initial charging year. The aggregate of those fees will equal the total of OFCOM’s initial costs. Paragraph 7(5) sets out that that period will be no less than 3 and no more than 5 years.
	Once that phase has been completed, there will be a second phase, as set out in paragraph 3. In the first year of the second phase OFCOM will charge fees to recover the outstanding amount, which is the amount of the additional fees yet to be recovered, which OFCOM consider are not likely to be paid or recovered, less any amount specified by the Secretary of State under paragraph 3(5). This process is repeated if necessary until all the money is either recovered, or OFCOM consider it is likely to be recovered, or the Secretary of State makes a determination under paragraph 4(2) that it does not need to be recovered. Paragraph 5 enables OFCOM to refund part of a fee where a provider is only a regulated service for part of a year.
	Under paragraph 7 the Secretary of State must make regulations providing details of the additional fees, including the initial costs, the charging years, and the computation model. Before doing so they must consult OFCOM and regulated service providers.