End of September 1999, representatives of Telstri, Japan Telecom and Teleglobe to discuss the structure of the Australia-Japan Cable (AJC) project, a $ 520 million undersea cable that would run from Australia to Japan. The sponsors, through the possibility of high returns to move quickly on the projected shortfall in Australia’s broadband capacity capitalize excited. As telecom carriers, the sponsors needed additional capacity to serve their retail and wholesale … Read more »

End of September 1999, representatives of Telstri, Japan Telecom and Teleglobe to discuss the structure of the Australia-Japan Cable (AJC) project, a $ 520 million undersea cable that would run from Australia to Japan. The sponsors, through the possibility of high returns to move quickly on the projected shortfall in Australia’s broadband capacity capitalize excited. As telecom carriers, the sponsors needed additional capacity to serve their retail and wholesale customers. As cable system owners, they wanted a reasonable return on their invested capital, while mitigating risks of ownership deserve. The need to move quickly, given the considerable demand, competition and technological uncertainty made it very risky to invest at this time.
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from
Benjamin C. Esty,
Carrie Ferman
Source: Harvard Business School
18 pages.
Publication Date: Aug 12, 2002. Prod #: 203029-PDF-ENG
Australia-Japan Cable: Structuring the Project Company HBR case solution

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