Business case
A telecom operator had been granted several licences in an Asian country and had invested over several years to build the infrastructure required to launch its services. The licences were revoked before the business had fully launched, leaving the operator with substantial network investment but limited subscriber history and no contemporaneous management forecasts.
The analysis gave the Tribunal a valuation framework that did not depend on unsupported early-stage forecasts. After direct and cross-examination, the Tribunal could assess the business by reference to technical network-completion requirements, competitive positioning and telecom operating economics, rather than by extrapolating a speculative launch case.
We valued the business in the counterfactual scenario in which the licences had remained in force. Working with an industry expert, our experts provided oral evidence on achievable market share, remaining network capital expenditure, subscriber ramp-up and normalised profitability against the operator’s actual stage of development and the economics of the local telecoms market.