EU report challenges progress on digital targets and NGA competitiveness…but suggests the wrong answer.
In a sad definition of what we all know, an EU report here highlights a failure to implement the recommendations of the September 2010 report MORE »
The rise of the NBN
From Qatar to Australia the talk has been of government driven, national broadband networks. Having created one from scratch with the Ventura Team partners – MORE »
One Day MBA book to be published in April
The definitive, pragmatic guide for understanding and managing businesses in the toughest of circumstances, because it has never been more important to ensure that you MORE »
Business case craziness
Company X decided to negotiate for a few extra million dollars off their network capex. The delay cost them a loss of $50 million in MORE »
$135 per month is a hefty average bill for US CATV customers (£84 per month though – similar to mine in London). TV demand softening as people consume content more in the on demand or app type buying model OTT. For FTTH: good – people want a big pipe; bad – price sensitivity high because of the economic climate.
New thinking by the Pirates
This is not strictly about finance but I had to share it as an example of regulatory arbitrage. Using magnet links only the Pirate Bay is down to 100Mb or so in size so they idea of hosting quite literally in the clouds using drones should be feasible.
http://torrentfreak.com/the-pirate-bays-attacks-censorship-with-server-drones-120318/
Interesting that almost bankrupt Eircom sees FTTH as a way to return to health
Eircom to plough on with EUR400m broadband plan; ailing firm seeks white knight.
Interesting to see management reaching for FTTH when the chips are down. Only way to secure long term growth I assume.
FTTH M&A in Norway
Power companies sold FTTH businesses to EQT private equity
EU report challenges progress on digital targets and NGA competitiveness…but suggests the wrong answer.
In a sad definition of what we all know, an EU report here highlights a failure to implement the recommendations of the September 2010 report on regulated access to NGA networks.
The report made it a requirement for firms in dominant positions to open up their networks for use by competitors.
However, where we’d question the findings of the report, they recommend reduction of copper network access charges to promote investment in NGA. Actually we think there is a good case for increasing the charges for both incumbent’s retail operations and competitors alike. In that way, the incremental business case is more likely to be positive for a move to fibre.
In our upcoming report on FTTH financing for the FTTH Council of Europe, we will be recommending obsolescence clawback as a better alternative.
It’s a little unfair to go on the headlines alone, but I think there’s a real issue here and maybe a mistake being made.
EU regulation hampers investment say investors
In FTTH, cashflows from obsolete assets are a major issue but it seems from this article that investors are aware of the need for a fibre upgrade. Cue off balance sheet financing!
The rise of the NBN
From Qatar to Australia the talk has been of government driven, national broadband networks. Having created one from scratch with the Ventura Team partners – it’s an extraordinary complex undertaking and requires careful setting up. Anyone can waste money, but using national resources wisely and getting low cost broadband to the masses is the objective.
We’ll be talking more about this topic soon but the picture shows Doha, which looks like becoming the most dynamic place in the GCC. It was fascinating to see people working away like ants from the dizzy heights of a major tower.
One Day MBA book to be published in April
The definitive, pragmatic guide for understanding and managing businesses in the toughest of circumstances, because it has never been more important to ensure that you understand the fundamentals of business and can adapt your business strategy to succeed in these uncertain times.
One-Day MBA, a brand new book from ICSA and Winmark Europe, provides you with everything you need to gain the necessary skills for creating winning strategies and suggests practical steps to allow you to immediately apply them to your business. It contains all the essential topics covered in a first-class MBA, including Strategy, Marketing, Finance, Product Innovation, Management, Leadership, Diagnosing Organisations, Project Management and Change Management. It combines theoretical approaches with real-world experience from seasoned professionals.
Business case craziness
Company X decided to negotiate for a few extra million dollars off their network capex. The delay cost them a loss of $50 million in revenue over five years. Changing the timing of capex payments took an NPV of 7 million on a project up to 45 million. There’s too much theoretical stuff going on and not enough pragmatic thinking.
