Balancing act in telecom : the dilemma of debt, divestment, and the dawn of satellite internet /
Lifetel, a (fictional) telecom company in India, is contemplating selling its tower business to raise funds. The advent of satellite internet technology challenges the traditional model of wired and tower-based connectivity. On the one hand, divesting the tower business could provide the necessary c...
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| Format: | eBook |
| Language: | English |
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London :
SAGE Publications: SAGE Business Cases Originals,
2024.
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| Series: | SAGE Business cases.
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| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | Lifetel, a (fictional) telecom company in India, is contemplating selling its tower business to raise funds. The advent of satellite internet technology challenges the traditional model of wired and tower-based connectivity. On the one hand, divesting the tower business could provide the necessary cash infusion to offset debts and invest in other business areas. On the other hand, it could leave the company susceptible to disruption by satellite internet providers capable of delivering fast and reliable connectivity. This case study underlines the need for telecom companies to stay abreast of technological advancements and market trends while balancing short-term financial pressures. It emphasizes the significance of strategic planning and decision-making in a rapidly evolving industry, one in which innovation can swiftly alter the rules of the game. Transitioning from a tower-based to a satellite-based internet connectivity model might entail significant costs, including the creation of new infrastructure and staff training to handle the new technology. Legal and regulatory challenges associated with switching to a new model could further contribute to the costs and complexities of the transition. Students are asked to analyze the company's current market positioning, evaluate the potential implications of divesting its tower business, and propose strategic recommendations for navigating the disruptive impact of satellite internet technology. This involves applying key concepts in strategic management, technology innovation, financial planning, and risk assessment. The goal is to develop a solution that addresses the company's immediate financial pressures while also ensuring its long-term competitiveness and sustainability in the telecom industry. |
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| Physical Description: | 1 online resource. |
| ISBN: | 9781071941577 1071941577 |