Aug 6, 2009

Telecom headlines - An Asset Sale and A Fire Sale (Review)

1) An interesting kind of "asset sale" happened in US when AT&T paid Sprint $59 M for spectrum swap. The article here "AT&T pays Sprint $59M in spectrum swap" has details.

It would be interesting to educate ourselves about how the valuation of spectrum was arrived at. Hypothetically speaking, the variables needed are
ARPU, delta in ARPU, subscriber, growth rate of subs, spectral efficiency in terms of users per band....hmmm...what else? Can't think of anything.

2) Now the fire sale in Canada - Canadian Govt. takes notice of Ericsson's acquisition of Nortel's wireless business. Isn't this a little too late. It is just sad to see a fine institution like Nortel go down this way. Was bailout an option here? Considering a lot of Canadians felt this was a sort of national symbol...bailout until few months ago was an option. But not anymore. More details on AllAboutNortel article

- Sid

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