Cost of Cap­i­tal

Once a year - on 30th June - the Bundesnetzagentur 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, the Bundesnetzagentur has taken into consideration the expert opinion of Prof. Stehle and Prof. Dr. Betzer (see Prof. Richard Stehle and Prof. André Betzer: „Report on the Risk-free Rate when Determining the Cost of Equity and the Cost of Debt in Telecommunication Rate Regulation“, Berlin and Wuppertal, August 2021).

Time series CAPM-WACC (pre-tax real)

ref. date

WACC fixed network

WACC 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 Studies

Prof. Richard Stehle and Prof. André Betzer: „Report on the Risk-free Rate when Determining the Cost of Equity and the Cost of Debt in Telecommunication Rate Regulation“, Berlin and Wuppertal, August 2021
Study 2021 (pdf / 3 MB)

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)