Public Consultation on the Definition of the Relevant Cost of Capital

ictQATAR Issues Public Consultation on Cost of Capital for the purpose of Regulatory Accounting.

The Supreme Council of Information and Communication Technology (ictQATAR) has published a public consultation on the definition of the relevant Cost of Capital for the purposes of Regulatory Accounting.

As the dominant service provider in Qatar, Qtel is under the obligation to develop a Regulatory Accounting System (RAS). The weighted average cost of capital (WACC) is an important input factor in the development of the RAS.

The WACC defines the fair profit margin that an operator should obtain from its investment in the business. A fair profit margin provides the operator with sufficient funds to cover its costs, while encouraging additional investment. Pricing services that include fair and efficient costs, including an accurate WACC, encourages competition and growth in the market.

Licensed telecommunications operators and other interested parties are invited to respond to the public consultation via email at rschnepfleitner@ict.gov.qa. Inquiries for clarification can also be sent to the same email address. The deadline for submission of comments is July 9, 2011.