Agenda• Company Overview• Project Overview  – Technology Involved  – Market Analysis  – SWOT Analysis• Financial Analysis•...
Company Overview• Broadband Data Communication Service  Provider• Founded in 1994 by Craig McCaw• Major Stake Holders
Project Overview        “Bridge Digital Divide”• Technology Involved• Technology Advantage• Market Analysis  – Current Mar...
Technology Involved• Constellation of 288 LEO satellites for  providing Data Communication Service
Technological Advantage
Market Analysis– Current Market– Customer Base– Competitor Analysis
Current Market @ 1million/yr                                        •Growing                                            •R...
• Access Methods - Enterprise                                       •M/S drop by 23%                                      ...
• Access Methods – Home Business                                       •Dial up M/S drop by 46%                           ...
• Access Methods – Consumer             •Dial up M/S drop by 36%             •High Speed @ Low Cost             •Cable M/S...
•Dialup consumption↓price constant•DSL, T1, Cable price↓consumption↑
Customer Base
Customer Base
Competitor Analysis                                         Per Unit Cost for launch                                      ...
SWOT Analysis
Financial Analysis
•Failure of Iridium & other narrow                         spectrum Challenges              •Telecomm Stock price LOW     ...
Recommendations• Appoint a technology partner• Deal should be auctioned where more than 1  partner• Appoint local partners...
Thank You
Teledesic Case Study
Teledesic Case Study
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Teledesic Case Study

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Teledesic Case Study

  1. 1. Agenda• Company Overview• Project Overview – Technology Involved – Market Analysis – SWOT Analysis• Financial Analysis• Challenges• Recommendation
  2. 2. Company Overview• Broadband Data Communication Service Provider• Founded in 1994 by Craig McCaw• Major Stake Holders
  3. 3. Project Overview “Bridge Digital Divide”• Technology Involved• Technology Advantage• Market Analysis – Current Market – Customer Base – Competitor Analysis
  4. 4. Technology Involved• Constellation of 288 LEO satellites for providing Data Communication Service
  5. 5. Technological Advantage
  6. 6. Market Analysis– Current Market– Customer Base– Competitor Analysis
  7. 7. Current Market @ 1million/yr •Growing •Reach via ISP(whole sale •Growing @ 0.5million/yr • Internet Access Market capacity) •Reach directly •Use •Growing @ 6.6%/yr T1 Services •Use T1 population in metro •90% Services •Need speedDialup •Use DSL, & reliable source speed @ low cost •Need •Can charge premium •Can Resale Capacity Values in millionData of 2003 (rapid change in 5 yrs)
  8. 8. • Access Methods - Enterprise •M/S drop by 23% •Requirement of speed •Willing to pay more Values in %Data of 2003 (rapid change in 5 yrs)
  9. 9. • Access Methods – Home Business •Dial up M/S drop by 46% •High speed technologies acceptance •High Speed @ Low Cost •Cable M/S boosted by 33% •DSL came & acquired 12% market Values in %Data of 2003 (rapid change in 5 yrs)
  10. 10. • Access Methods – Consumer •Dial up M/S drop by 36% •High Speed @ Low Cost •Cable M/S boosted by 24% •DSL came & acquired 10% market •High Cost so limited consumers •Huge amount of untapped market segment Values in %Data of 2003 (rapid change in 5 yrs)
  11. 11. •Dialup consumption↓price constant•DSL, T1, Cable price↓consumption↑
  12. 12. Customer Base
  13. 13. Customer Base
  14. 14. Competitor Analysis Per Unit Cost for launch Sky Bridge $12.5m Teledesic $8.68m•80 LEO @ 930 miles •Low Speed •Low Speed•Complex Ground •Less Reliable •High CostSegment •Limited Coverage •Entry Barriers(Capital &•Gateway System (slow •High Cost Regulations)& Expensive)•Regulations &Approvals not received•Launch cost higher
  15. 15. SWOT Analysis
  16. 16. Financial Analysis
  17. 17. •Failure of Iridium & other narrow spectrum Challenges •Telecomm Stock price LOW •High Risk•$1.5bn present •Different Countries•$7.5bn promised Different Costs •2 International •Language & Currency Agencies Issues •200 National Agencies
  18. 18. Recommendations• Appoint a technology partner• Deal should be auctioned where more than 1 partner• Appoint local partners to get local radio spectrum licence• Look for less traditional investors
  19. 19. Thank You

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