Section 24 in International Telecommunication Cable Landing Stations Access Facilitation Charges and Co-location Charges Regulations, 2012
24. The Authority analyzed the effect of 'utilisation factor' on the cost recovery. There could be one view that there is no need to provide any further margin and 100 % utilisation has to be taken, as interfaces during the network design have been taken on the basis of demand projections in the market and discussions with all the stakeholders, especially with these two OCLSs. However, there is always some uncertainty of the demand in the market. Now, the question arises as to how much cushion/margin to be provided for this uncertainty. As one increases/decreases 'utilisation factor', it has direct bearing on the charges paid by the seekers. Very low 'utilisation factor' would burden the seekers and would create non level playing fields as OCLSs, being integrated operators, are competing in the same market. Therefore there is a need to have reasonable balance so that it protects the interest of both the seekers and providers.
