Cost of Cap­i­tal

Once a year - on 30th June - the Bundesnetzagentur (BNetzA) is setting the Telecom WACC (CAPM-WACC). The current estimation of the cost of capital is – for a transitional period - based on a glide path leading to the full implementation of the European Commission’s “Commission Notice on the calculation of the cost of capital for legacy infrastructure in the context of the Commission’s review of national notifications in the EU electronic communications sector” (2019/C 375/01). The Commission Notice refers to the calculation of the cost of capital for the fixed network. Additionally, BNetzA has taken into consideration the expert opinion of Prof. Stehle and Prof. Dr. Betzer (see: „Wissenschaftliches Gutachten zur Höhe des risikofreien Zinssatzes bei der Ermittlung der Eigen- und der Fremdkapitalrendite in der Entgeltregulierung im Telekommunikationsbereich“, Berlin und Wuppertal, August 2021. This document will be available in English in due time).

Time series CAPM-WACC (pre-tax real)
ref. dateWACC fixed networkWACC mobile network
30.06.20107,117,88
30.09.20126,777,15
30.09.20136,586,84
30.06.20146,206,38
30.06.20155,906,02
30.06.20165,635,72
30.06.20175,205,26
30.06.20184,874,91
30.06.20194,394,42
30.06.20203,64
30.06.20213,12

Published Study (in English):

Setting the Telecom WACC: Procedures and Estimates of the German Network Regulator Bundesnetzagentur (BNetzA), Prof. Richard Stehle, Ph.D. Wirtschaftswissenschaftliche Fakultät, Humboldt-Universität zu Berlin, Berlin, November 2016 (Market Risk Premium-Study in German: April 2016)
Study 2016 (pdf / 569 KB)