DSpace Repository

Real Options and the Regulation of Brazilian Fixed-Line Telephone Operators: The Mark-up on the Cost of Capital

Show simple item record

dc.contributor.author de Braganca, Gabriel Fiuza
dc.contributor.author Rocha, Katia
dc.contributor.author Moreira, Rafael Henrique Rodrigues
dc.date.accessioned 2015-02-11T21:39:10Z
dc.date.accessioned 2022-07-06T22:49:34Z
dc.date.available 2015-02-11T21:39:10Z
dc.date.available 2022-07-06T22:49:34Z
dc.date.copyright 27/05/2008
dc.date.issued 2008
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/19098
dc.description.abstract This study argues in favour of the real option methodology to calculate the access price for Brazilian fixed-line phone operators. The new cost-oriented regulatory framework for interconnection of telecommunication networks established in 2005 poses questions regarding the adequate remuneration of investments. By investing in a fixed-line telephone network while giving access to new entrants the incumbent is actually providing an option to access its infrastructure. Since options aren't costless to properly compensate the investment an effort to estimate the option premium is justified. We suggest a pragmatic approach where the real options rationality appears as a mark-up over the sector's cost of capital. Failing to consider the real option granted by incumbents discourages investment in infrastructure in the sector and hinders the intertemporal maximization of social welfare. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.rights Permission to publish research outputs of the New Zealand Institute for the Study of Competition and Regulation has been granted to the Victoria University of Wellington Library. Refer to the permission letter in record: https://ir.wgtn.ac.nz/handle/123456789/18870 en_NZ
dc.title Real Options and the Regulation of Brazilian Fixed-Line Telephone Operators: The Mark-up on the Cost of Capital en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit New Zealand Institute for the Study of Competition and Regulation en_NZ
vuwschema.contributor.unit Victoria Business School: Orauariki en_NZ
vuwschema.subject.anzsrcfor 149999 Economics not elsewhere classified en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 389999 Other economics not elsewhere classified en_NZ


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace


Browse

My Account