Section 34 in International Telecommunication Cable Landing Stations Access Facilitation Charges and Co-location Charges Regulations, 2012
34. The OCLSs will be able to recover their cost fully, irrespective of the conversion factor. Higher conversion factor will increase the prices of higher capacity and lower the prices of lower capacity. Further, if higher conversion factor is taken into account, there is no advantage to seekers in taking higher capacity, forcing them to seek lower capacity multiple times. In this exercise, allocation of cost to various capacities ensures that total cost is recovered for the designed network. The conversion factor does not have any impact on the recovery of the total cost; it only changes comparative AFC of different capacities.
