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E-mail: post@comcom.ge
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+995 32 2921667
ComCom Sets a New Weighted Average Cost of Capital for the Telecommunications Sector
The Communications Commission has updated the methodology for calculating the weighted average cost of capital (WACC) for the telecommunications sector and, starting from 2026, set a new rate of 13.90% for the next regulatory period. In addition, the Commission will further incentivise the introduction of next-generation technologies, network upgrades, and the development of underserved areas by assigning a higher WACC of 15.90%.
The most recent amendment to ComCom’s 2017 decision “On Determining the Weighted Average Cost of Capital (WACC) for Mobile and Fixed Networks” was made in 2022, when the relevant WACC rate was established. Considering that three years have passed since the adoption of that decision, ComCom deemed it appropriate to review the methodology and update the rate accordingly.
For this project, ComCom received advisory support from The Brattle Group Limited, a company with extensive experience working with the European Commission, which is critically important for ensuring both the accuracy of the methodology and the alignment of the results with European standards.
The advisory document developed as part of the project was sent to the authorised persons in the field of electronic communications in December 2025, and it was also published on the Communications Commission’s website. In addition, working meetings were held with operators, discussing the methodology for calculating the rate together with the consulting company’s experts. For their part, operators provided feedback, and the Commission took their arguments into account on certain issues.
WACC is one of the key financial indicators for the development of the sector, as it determines the reasonable rate of return that should be reflected in regulated tariffs when setting network access tariffs for operators with significant market power. At the same time, it helps ensure fairness of market entry conditions, promotes healthy competition, supports the development of the telecommunications sector, and improves consumer access to the telecom services.
