BIPT Council decision of 26 february 2015 regarding the cost of capital for operators with a significant market power in Belgium

This decision concerns the determination of the weighted cost of capital (WACC) to be used in the computation of cost oriented prices. The WACC values will be used in several upcoming tariff decisions, e.g. in the incumbent Belgacom’s upcoming reference offers:

  • BRIO (interconnection);
  • BRUO (unbundled access);
  • BROBA and WBA VDSL2 (bitstream access);
  • BROTSoLL (leased lines).

Moreover, this WACC will also be used in the calculation of the maximum fixed and mobile termination rates for the SMP operators designated in the upcoming market reviews concerning markets 1(2014) and 2(2014). The draft decision contains an annex on new values of cost oriented services as well. More precisely, this chapter modifies the prices of:

  • Ethernet transport fixed part: BROBA ADSL/ADSL2+/ReADSL with voice; BROBA ADSL/ADSL2+/ReADSL without voice; BROBA SDSL; WBA VDSL2 with voice; WBA VDSL2 without voice.
  • Ethernet transport variable part: Shared VLAN & Dedicated VLAN; BROBA Shared VLAN & Dedicated VLAN; WBA VDSL2 Shared VLAN & Dedicated VLAN.
  • Wholesale multicast: Monthly Multicast Recurring Fee per User Line; Monthly Shared TV Channel Recurring Fee; Monthly Ordered Dedicated Capacity Recurring Fee. These new tariffs for Ethernet and multicast will enter into force on 1 May 2015.

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