Section 35 in International Telecommunication Cable Landing Stations Access Facilitation Charges and Co-location Charges Regulations, 2012
35. As mentioned above, taking a conversion factor of 4 does not fit into the principle of economies of scale. Therefore, Authority considered other similarly placed services and their market scenarios. The Authority observed that in case of Domestic Leased Circuit also similar network elements are used and similar capacities are bought/sold using an average conversion factor of 2.6. Since conversion factor of 2.6 is market driven and reflects market reality, it would be more appropriate to use this figure. Moreover, conversion factor of 2.6 reasonably fits into the principle of economies of scale. As explained above, the conversion factor does not have any bearing on the total cost recovery and therefore should not affect any stakeholders' interest negatively.
