Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Two reports on rate of return for telecommunications

Commerce Commission publishes expert reports on rate of return on capital for telecommunications services
Issued 23 June 2014

Release No. 119

The Commerce Commission today published two expert reports about the rate of return on capital for the unbundled copper local loop (UCLL) network and the unbundled bitstream access (UBA) service.

The allowed rate of return on capital is also known as the ‘weighted average cost of capital’ (WACC).

As part of the final pricing principle (FPP) process, the Commission needs to determine a WACC for the UCLL and UBA services. The Commission commissioned two expert reports to assist in reaching a view regarding the WACC for UCLL and UBA.

The first report is by Associate Professor Martin Lally of Victoria University of Wellington and addresses the tax-adjusted market risk premium (TAMRP) and the methodology for estimating the cost of debt.

The second report, by Oxera Consulting Ltd, covers asset beta, leverage and an appropriate long-term credit rating.

The Commission invites interested parties to submit their comments on the papers, by 5pm Monday 21 July 2014. There will then be two weeks for cross-submissions, which should be submitted by 5pm Monday 4 August 2014.

There will be a further opportunity to submit on WACC, including the specific parameter values the Commission decides to adopt, in response to the draft UCLL and UBA price review determinations to be released on 1 December 2014.

You can find the expert reports on the Commission’s website on the UCLL and UBA final pricing principle price review page.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Port Study: Port To Ship Out – No Departure Date

Interest groups in Auckland and its waterfront chose a group of representatives to determine the future of the port. Their consensus is that the Port is going to have to move but not before a credible location is confirmed... More>>

ALSO:

Tax: GST Threshold For Online Purchases Won't Lower Before 2018

The government wants to lower the threshold on online purchases which qualify for GST from mid-2018, but says more work is needed and there will be no change without public consultation. More>>

ALSO:

North Canterbury: Government Extends Drought Classification

The government has extended a drought classification for the eastern South Island until the end of the year, meaning the area will have officially been in drought for almost two years, the longest period for such a category. More>>

ALSO:

Negotiations Fail: Christchurch Convention Centre Build To Proceed Without PCNZ

After protracted negotiations, the government has ditched the construction consortium it picked to build Christchurch's replacement convention centre, which it now anticipates delivering at least two years behind the original schedule. More>>

ALSO:

Other Centres' Convention Centres:

Ruataniwha: Greenpeace Launches Legal Challenge Against $1b Dam Plan

Greenpeace NZ is launching a legal challenge against a controversial plan to build a dam that’s set to cost close to $1 billion and will pollute a region’s rivers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news