38. The Authority also observed that the linear 'conversion factor' of 4 in respect of cost of interface hardware that is STM-1/STM-4/STM-16/STM-64, as suggested by the two OCLSs is also not based on sound economic principles. The contention that the interface hardware cost is a linear multiple of the physical capacity is not always true. Some stakeholders in their counter comments have also submitted that the cost of various hardware modules is not linearly relatable to the capacity of the hardware. Moreover, for calculating the cost per unit capacity it is prudent to take into consideration all the other common factors used for cost calculation per unit capacity rather than the cost of the interfaces only. Further, the purpose of 'conversion factor' is not for calculation of the cost but is relevant only for allocation of the cost.
