A Real Options Analysis of TransEuropean Telecommunications Wireline Video Deployment

53 Pages Posted: 15 Oct 2012

See all articles by Marcel Boyer

Marcel Boyer

CIRANO, Université de Monréal

Eric Gravel

StatLog Consulting

Date Written: September 15, 2012

Abstract

The goal of this paper is to demonstrate how the RO methodology can be applied to evaluate TransEurope Communications (TEC) investment projects. Although realistic, the business case analysed here is fictional. The main conclusion and lesson of this exercise is: One cannot determine a value maximizing investment strategy if one does not value managerial flexibility in an appropriate way.

Keywords: investment evaluation, telecoms, real options, managerial flexibility

Suggested Citation

Boyer, Marcel and Gravel, Eric, A Real Options Analysis of TransEuropean Telecommunications Wireline Video Deployment (September 15, 2012). CIRANO - Scientific Publications 2012s-25, Available at SSRN: https://ssrn.com/abstract=2161859 or http://dx.doi.org/10.2139/ssrn.2161859

Marcel Boyer (Contact Author)

CIRANO, Université de Monréal ( email )

1400-1130 Sharbrooke St. West
Montreal, Quebec H3A 2M8
Canada
514 985-4000 (Phone)
514-985-4039 (Fax)

HOME PAGE: http://www.cirano.qc.ca/~boyerm

Eric Gravel

StatLog Consulting ( email )

4673 Clara Brousseau
Québec City, Québec G1Y 3M9
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
25
Abstract Views
457
PlumX Metrics