5.3.3 Straight-line depreciation has the advantage, that it can be easily
based on operator accounts. However, the main disadvantage is that the
return on capital changes significantly over time: As return on capital is
based on the net book value of an asset, this net book value decreases over
the life time of an asset to zero, leading to a very high price at the
beginning of the asset life time and a zero price at the end.
5.3.4 A more adequate approach for service price setting are annuities, as
they keep the combination of depreciation and return on capital constant
over the life-time of an asset.
The formula for calculating the annualization factor of annuities is:
Cost of capital/{1-[1/(1+cost of capital)]^asset life}
5.4 Implementation of maximum service prices
The results for maximum service prices for passive infrastructure sharing
are shown in Annex F. This Annex also shows, how operator cost inputs
have been applied to arrive at the maximum service prices.
5.4.1 Annex F section (I.) shows the maximum monthly service prices for
tower sharing for the three different lattice tower categories. These prices
are applicable, if an infrastructure seeker only wants to share access to a
tower and can provide his own electricity supply.
5.4.2 Annex F section (II.) shows the additional maximum monthly service
price for sharing electricity from the infrastructure provider. These prices
include all charges for electricity and fuel usage and are in addition to the
applicable tower sharing price of Annex F section (I.).
Prices in Annex F section (II.) are based on the assumption, that the on-site
power generator has sufficient spare capacity to cater for the needs of
both, the infrastructure provider and the infrastructure seeker.
5.4.3 In the case that the existing on-site generator of the infrastructure
provider does not have sufficient capacity to supply the additional power
for an infrastructure seeker, both parties need to agree on one of the
following two options for upgrading the on-site generator:
5.4.3.1 Option (1) for generator upgrade: The infrastructure provider
arranges and pays for the generator upgrade. In this case the infrastructure
provider can charge an additional monthly fee for annualized cost of the
generator upgrade. Annex F section (III.) shows this additional monthly fee
for this generator upgrade.
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