Abstract
The existing Determination on the Weighted Average Cost of Capital (WACC) to be used in the telecommunications sector was issued in 2016 and is due to be updated. This Consultation Document contains the Office of Utilities Regulation’s (OUR’s) approach to updating the parameters that are involved in the estimation of the WACC for fixed and mobile telecommunications carriers in the Jamaican telecommunications sector. The calculation of the WACC involves the estimation of a number of parameters, including the cost of equity (following the Capital Asset Pricing Model) and the cost of debt. The data sources and the methodology followed to calculate the WACC parameters are consistent with what was determined by the OUR in the 2016 WACC estimation which was largely consistent with the methodology that was determined by the OUR in the 2010 WACC estimation exercise.
Associated Documents:
- Digicel’s Comments on Submissions to the Office of Utilities Regulation Consultation Document on the Estimate of Weighted Average Cost of Capital for Telecommunications
- CarriersCABLE AND WIRELESS (CWJ) REPLY – COMMENTS ON Estimate of Weighted Average Cost of Capital for Telecommunications Carriers 2020 Aug 11
- Digicel’s Comments to OUR – Consultation Document on Estimate of the Weighted Average Cost of Capital for Telecommunications Carriers 2020 July 22
- CACU – Estimate of the WACC for Telecommunications Carriers 2020 JULY 22