an incentive for greater efficiency;
(d) using marketing data for setting the
appropriate rate of return based on the
cost of capital;
(e) using the hybrid capital asset pricing model
incorporating the country risk and
correction coefficient for calculating the
cost of equity,
Local loop
unbundling
52. The Authority shall ensure that-
(a) new entrants are authorized to access the
local loop on the basis of a pre
established schedule;
(b) new entrants commit, in their respective
proposals, to install some minimum infra
structure capacity, whereas operators
having significant market power commit to
provide access to copper pairs to the new
entrant as well as the possibility of co
location on its premises in order to facilitate
unbundling;
(c) the unbundling offer, including the list of
services offered at the request of the
Authority, shall be approved by the
Authority;
(d) the new entrant has access to the inform
ation needed for unbundling purposes
and the information related to unbundling
is exchanged electronically between ope
rators and competitors;
(e) a schedule for unbundling established with
a view to liberalization of fixed communica
tions, privileging unbundling with shared
line access initially; and
(f) guidelines are provided on use of the
“scissors test” in order to compare retail
prices and unbundling.
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