Costs of efficient service provision

(1) The costs of efficient service provision comprise the long-run incremental costs of service provision and a reasonable mark-up for output-independent common costs, including a reasonable return on capital employed, insofar as those costs are respectively necessary for service provision.
(2) Expenditure not included in the costs of efficient service provision is taken into account in addition to subsection (1) only insofar and for as long as a legal obligation to do so exists, or the undertaking applying for approval demonstrates some other objective justification. Expenditure to be taken into account may also include fees for decision chamber proceedings.
(3) In determining the reasonable return on capital employed, the Federal Network Agency takes into account, in particular, 1. the capital structure of the regulated undertaking, 2. conditions on national and international capital markets and the valuation of the regulated undertaking on those markets, 3. the requirements as to the return on capital employed, having regard also to the service-specific risks of the capital employed; this also includes taking into account any specific investment risks under section 38(5), point 1, 4. the long-term stability of the economic framework conditions, including with regard to the competitive situation in telecommunications markets, 5. EU-wide harmonisation of methods for determining the interest rate.
(4) Expenditure resulting from a change in the identity of the undertaking may not be taken into account either in determining the costs of efficient service provision under subsection (1) or as expenditure under subsection (2).