Cost of Cap­i­tal

Once a year - on 30th June - the Bundesnetzagentur (BNetzA) is setting the Telecom WACC (CAPM-WACC). As of 30th June 2020 the estimation of the cost of capital is based on 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.

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*

* This is a transitional value that represents the arithmetic mean of the WACC set by the Bundesnetzagentur for 2019 and the WACC determined for 2020 on the basis of the Commission Notice.

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)