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

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.

Autorentext

Dr. Santi Pattanawichai received the bachelor s degree in Business Administration and the master s degree in Information Technology from Assumption University, Thailand, in 1998 and 2002, respectively. He received the Doctoral degree in Information Technology from Siam University, Thailand in 2013.