Taking the long view

Last week’s Schumpeter column in The Economist discussed the pursuit of shareholder value as the leading ideology for corporate governance in the west, and the criticism it has been receiving lately. The article concludes with the question whether there is really an alternative to running corporations first and foremost in the interest of shareholders. There […]

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The Telecom Business Cycle: Gravity Pulls

Investors seeking defensive investments in a volatile market traditionally favored equity in the utilities, consumer staples, healthcare or telecom sectors. Conventional wisdom was that telecom assets could provide more stable income production and a lower correlation of returns relative to the broader market, with the potential to reduce overall volatility for a diversified investment portfolio. […]

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Industrial Supply Chains, Mobile Broadband and Cloud Computing

Industry after industry, from financial services to media to communications to health care to education, is being chewed up by the rise of the internet and the spread of networked end-user devices such as smartphones, tablets and PC software. In Marc Andreessen’s words (Economist 2011): Software is eating the world. In the communications industry, the […]

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Facebook: Main Street to Wall Street

Facebook is filing IPO documents this week. Even though CEO Mark Zuckerberg appears to appreciate status updates more than stock brokers, this milestone in Facebook’s lifecycle marks the changed nature of Facebook as a company. How? A new paper by Booth School’s Raghuram G. Rajan (2012) explains the relation between a firm, its business model […]

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New Network Platforms: The Telco and the SIM

The race to establish the future leading platform for provisioning mobile services is ongoing. This leading platform will be the one that extracts maximum value from the network externalities present in the market (a winner-takes-all dynamic typical for platform business models). After looking at a handset-centric service platform (iOS), an aggregator-centric service platform (Android) in […]

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