White Papers
Deciding on the Right Timing of VDSL Roll-Outs: A Real Options Approach
Overview Incumbents worldwide are faced with increased competition from various sides such as cable operators and Other Licensed Operators (OLOs). The marginal cost of rolling out VDSL is high to even prohibitive in certain geographic areas. It is therefore imperative for the operator to develop methodologies for valuing the flexibility in such investment strategies: which rollout investment projects should be launched in the short, medium and long term and equally important? - Which rollout projects should never be launched? This paper proposes the use of a real options option approach widely applied in financial theory as a means to capture the value of flexibility in future VDSL rollout investments.
| Publisher | Telenor | File Format | |
|---|---|---|---|
| Date Published | May 2002 | ||
| Format | White Papers | ||
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