City Telecom: How David Took on Goliaths in the Telecom Infrastructure Race

Published 22 Feb 2010
Reference 5674
Region Asia
Summary

A young, start-up telecom company has to decide whether or not to undertake a massive investment in telecom infrastructure, given significant uncertainty in the technology and in the market potential.

Teaching objectives

The case (1) Allows students to use analytical frameworks (such as NPV) to analyse investment decisions under uncertainty, but also to appreciate the issues beyond the NPV calculations. (2) Illustrates successful entrepreneurship in a highly competitive market. (3) Illustrates the way in which a firm?s competitive strategy, investment decisions and financing capabilities are intricately inter-related.

Keywords
  • Net Present Value
  • Investment Decisions
  • Entrepreneurship
  • Telecom infrastructuring investments
  • RD0110
  • AR2010
  • AR0910