News & insights

CEPA was commissioned by Ofcom to provide an independent view of relevant betas and other Weighted Average Cost of Capital (WACC) parameters in support of the Telecoms Access Review (TAR), which aims to promote competition and investment in fibre networks. Ofcom has now published our final report alongside its statement.

For this assignment, the CEPA team estimated the asset beta for BT Group and a range of benchmarks, including UK and European telecoms companies, UK utilities, and ICT companies. CEPA proposed asset beta ranges to Ofcom that reflect a mechanistic summary of a broad quantitative evidence base, as well as adjustments where justified by our assessments of broader market evidence, relative risk across comparators and over time, and the robustness of different data points.

Our final report constitutes an update to our February 2025 report that was published alongside the TAR consultation. In this report, we reference stakeholder submissions to the consultation and how those informed our final position.