A taxa de remuneração do capital e a nova regulação das telecomunicações
[Cost of capital and the new regulation of telecommunications services]
AbstractAn adequate rate of return on capital yielded by the regulated firms is a central issue related to the new cost-based approach adopted by the Brazilian Telecommunication Regulatory Agency (Anatel). In this context, careful attention must be given to the Weighted Average Cost of Capital (WACC) estimation. Downside bias can harm innovation and infrastructure future investment decisions and upside bias contradicts the government main directive to reduce tariffs and foster competition, in fact, both mistakes reduces social welfare. In this respect, the article intends to offer methodological insights, based on well-accepted theoretical achievements and best practices abroad, for the task of estimate a telecom WACC taking account of specific regulatory and sectorial Brazilian characteristics.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5400.
Date of creation: Mar 2006
Date of revision:
Custo de Capital; Telecomunicações; Revisão Tarifária;
Other versions of this item:
- Gabriel Fiuza de Bragança & Katia Rocha & Fernando Camacho, 2006. "A Taxa de Remuneração do Capital e a Nova Regulação das Telecomunicações," Discussion Papers 1160, Instituto de Pesquisa Econômica Aplicada - IPEA.
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
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[The remuneration of capital in the telecommunications and the new Brazilian regulatory context]," MPRA Paper 5399, University Library of Munich, Germany.
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