Indian Telecom Infrastructure Ltd. (INTELFRA) is developed using the proprietary basic infrastructure and to provide that infrastructure on demand to customers in Lake east of India. With the telecom infrastructure (TI) INTELFRA services provided, customers will no longer need to incur the high fixed costs of setting up the necessary infrastructure on their own or commit to long-term fixed price outsourcing contracts. Although the business is promising, TI services required substantial ex ante d … Read more »

Indian Telecom Infrastructure Ltd. (INTELFRA) is developed using the proprietary basic infrastructure and to provide that infrastructure on demand to customers in East Lake, India. With the telecom infrastructure (TI) INTELFRA services provided, customers will no longer need to incur the high fixed costs of setting up the necessary infrastructure on their own or commit to long-term fixed price outsourcing contracts. Although the business is promising, TI services required substantial ex ante development and start-up costs and the demand was uncertain, because East Lake is an upcoming community, both residential and commercial spaces. Pricing was a difficult but crucial business decision for INTELFRA. High prices could drive the customers away, but low prices would not be profitable, maybe even not able to cover the high investment costs. This case deals with the critical issues of pricing compared to telecom infrastructure service.
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from
Ashok Banerjee,
Indranil Bose,
Debashis Saha,
Minyi Huang
Source: University of Hong Kong
18 pages.
Release Date: 28, June 2011. Prod #: HKU929-PDF-ENG
INTELFRA Ltd: Pricing Telecom Infrastructure in a monopolistic market HBR case solution

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