Indian Telecom Infrastructure Ltd. (INTELFRA) is about to develop a proprietary basic telecom basic infrastructure and deliver that infrastructure on demand to the customers in Lake East, India. Utilizing the telecom infrastructure (TI) services supplied by INTELFRA, customers will no longer need to incur the high fixed costs of building the necessary infrastructure by themselves, or commit to long term fixed price outsourcing contracts.
Though the business is guaranteeing, TI services necessitated significant ex ante development and start up costs, as well as the demand was doubtful because Lake East is an approaching township containing both residential and commercial spaces. Pricing became a challenging yet critical business choice for INTELFRA. Low prices would not be lucrative, possibly even inadequate to cover the high investment costs, although high prices could drive customers away. This case addresses the vital pricing problems facing telecom infrastructure services providers.
PUBLICATION DATE: June 28, 2011 PRODUCT #: HKU929-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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