an incentive for greater efficiency; (d) using marketing data for setting the appropriate rate of return based on the cost of capital; (e) using the hybrid capital asset pricing model incorporating the country risk and correction coefficient for calculating the cost of equity, Local loop unbundling 52. The Authority shall ensure that- (a) new entrants are authorized to access the local loop on the basis of a preestablished schedule; (b) new entrants commit, in their respective proposals, to install some minimum infrastructure capacity, whereas operators having significant market power commit to provide access to copper pairs to the new entrant as well as the possibility of colocation on its premises in order to facilitate unbundling; (c) the unbundling offer, including the list of services offered at the request of the Authority, shall be approved by the Authority; (d) the new entrant has access to the information needed for unbundling purposes and the information related to unbundling is exchanged electronically between operators and competitors; (e) a schedule for unbundling established with a view to liberalization of fixed communications, privileging unbundling with shared line access initially; and (f) guidelines are provided on use of the “scissors test” in order to compare retail prices and unbundling. 73

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