Valuation is a critical part of many business decisions in telecommunications markets. Accordingly, valuation is either the focus or the underpinning in many of our engagements. We are highly experienced in identifying or developing appropriate valuation methodologies, extracting the practical implications of economic analyses, and effectively communicating results.
Members of The Brattle Group conducted a large-scale effort to value licenses for personal communications services (PCS) in connection with four separate bankruptcy cases resulting from the FCC C-block auction. Our valuations involved comprehensive analysis of all PCS auction blocks, supply and demand conditions in the market for wireless communications, financial market conditions, and relevant technologies. We analyzed billions of dollars in bid prices along four dimensions: market opportunity, market segmentation, level of competition, and financing terms. In addition, we quantified changes in the fair market value of PCS licenses after the auctions, using data on actual returns to traded securities.
We assisted a major telecommunications equipment vendor with the formulation and evaluation of business strategy and investment decisions in overseas markets. We developed a series of interrelated discounted cash flow (DCF) models for specific lines of business based on detailed microeconomic data and client-specific parameters. We used the results to evaluate the risks and rewards of alternative business opportunities.
The Brattle Group performed a valuation of a joint venture between a large U.S. telecommunications company and an international firm providing specialized mobile radio (SMR) services to a large overseas market. The valuation analyzed the outcome of a controlled auction as an indicator of fair market value. Testimony based on this valuation focused on the customary use by investment banking firms of controlled auctions and on the appropriate use of auctions to determine the fair market value of wireless assets in a global marketplace.
For a provider of wireless telecommunications services, The Brattle Group assessed allegations of bid-rigging in the PCS spectrum auctions brought by the government of the United States. Our analysis included an assessment of the competitive implication of the "signaling" mechanisms alleged to facilitate collusion, including an analysis of how these markets would have operated in the absence of the alleged facilitating practices.