Real Options Valuation for MNO’s Investment in 4G LTE Mobile Network.

      Аннотация: Traditional valuation methods for discounted cash flow analysis - such as Net Present Value – normally fail to notice the possible value of delaying a decision for uncertainties to be resolved in future. The most popular of these tools is NPV. It takes the sum of expected cash flow over the life time of the investment project and discounts it by appropriate cost of capital. In contrast, real option approach considers the value of flexibility at the same time as some decisions can be delayed and launched through high investment commitment process, using realistic assumptions and parameters.

Ключевые слова: Net Present Value (NPV), Pricing Model, Real Options Analysis, sensitivity analysis., 4G Long Term Evolution (4G LTE), Mobile Network Operator (MNO), Mobile Virtual Network Operator (MVNO)