Why did Ofcom publish a second consultation?
In January 2005, Ofcom published a first consultation on calculating the weighted average cost of capital for companies in the communications industry. Some parts of the first consultation were focused on BT, whilst others applied equally across all of the industry, including broadcasting and mobile communications. Some of the responses to the first consultation argued that Ofcom should collect further evidence and carry out further analysis relating to calculating a weighted avergage cost of capital for different parts of BT’s business. We carried out further work following these comments and published a second consultation on these issues in June 2005.
