In late September 1999, representatives Telstri, Japan Telecom, Teleglobe and met to discuss the structure of the Australia-Japan Cable (AJC) project $ 520 million submarine cable system, which will operate from Australia to Japan. Sponsors excited possible greater returns need to act quickly to capitalize on the projected power shortage of broadband in Australia. As telecommunications companies, sponsors need additional capacity to service their retail and wholesale customers. As owners of the cable system, they wanted to make the appropriate return on investment while reducing the risks of ownership. Need to move quickly in the face of strong demand, competition and technological uncertainty made it particularly risky to invest at this time. "Hide
by Benjamin C. Esty, Carrie Ferman Source: Harvard Business School 18 pages. Publication Date: August 12, 2002. Prod. #: 203029-PDF-ENG