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Telecom & Media  

The convergence of the telecoms and media industries is driving innovation at an unprecedented pace and blurring the boundaries between content and infrastructure providers. With huge investments in 3G licenses and the need to provide new infrastructure for new services, companies face significant uncertainty about the future. Will wireless shopping and location-based commerce take off? Will streaming video or mobile gaming prove to be the ‘killer application’ of 3G? Can media and telecoms companies afford to ignore any of these as-yet unproven services?

At the same time, the rapid expansion of the telecom and other high-tech industries has been followed by a debilitating downturn with a reduction in investment for the future. Yet businesses that have cut their IT investments still expect hardware and software vendors to develop cutting edge products and services. In such an environment, telecoms and media companies face significant challenges as to how they can create value in the future.

The Real Options Group can help organizations navigate such turbulent waters with comprehensive services including consultancy and access to our ROG Software platform. Its user-friendly interface encourages managers to visually lay out and experiment with options available to them, giving them new insights into value creation within the company and its projects.

ROG can help Telecom and Media companies companies address critical issues and questions such as:

·         How much is this new technology (e.g., fiber) or asset (e.g., bandwidth) worth? How can we value intellectual property rights? How much should we bid for a UMTS license?

·         Should we invest only in what we believe may be the leading technology or in several technological options given the technological, demand and competitive uncertainties?

·         How can we prioritize our product development or capital allocation efforts under budget constraints? When should we abandon projects or divisions, expedite, expand or redirect our activities?

·         How can we achieve a balanced portfolio of cash-generating vs growth opportunities?

·         How would our strategic investment affect our competitors, how might they respond, and what impact would their reaction have on our value?

·         Should we divest this division, make this acquisition, pursue a strategic alliance or proceed alone?

·         Can we acquire a customer base, and then cross-sell new services to them?

·         Should we enter a licensing agreement, and on which terms?