A taxa de remuneração do capital e a nova regulação das telecomunicações

An adequate rate of return on capital yielded by the regulated firms is a central issue related to the new cost-based approach adopted by the Brazilian Telecommunication Regulatory Agency (Anatel). In this context, careful attention must be given to the Weighted Average Cost of Capital (WACC) estimation. Downside bias can harm innovation and infrastructure future investment decisions and upside bias contradicts the government main directive to reduce tariffs and foster competition, in fact, both mistakes reduces social welfare. In this respect, the article intends to offer methodological insights, based on well-accepted theoretical achievements and best practices abroad, for the task of estimate a telecom WACC taking account of specific regulatory and sectorial Brazilian characteristics.