This article starts from the premise of the new cost-oriented regulatory framework for interconnection of telecommunication networks in Brazil, established starting in 2005, and proposes using the real options metodology to calculated the return on capital of local fixed operators for purposes...

An adequate rate of return on capital yielded by the regulated firms is a central issuerelated to the new cost-based approach adopted by the Brazilian TelecommunicationRegulatory Agency (Anatel). In this context, careful attention must be given to theWeighted Average Cost of Capital (WACC)...