Debt Burden and Capacity Pricing Decision
- Topics:
- Commercial Lending
- Tags:
- Channel Management,
- Debt,
- Finance,
- Financial Accounting,
- Financing,
- Investment,
- Marketing,
- Pricing,
- Pricing Strategy
- Source:
- ratexchange.com
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Overview: This document examines the following question: How does the high (interest) cost of financing network expansion impact a supplier’s bandwidth pricing decision? The model developed in this document will link the cost of debt financing to the willingness of a carrier to heavily discount its bandwidth price for a long term IRU (Indefeasible Right of Use). It has developed an evaluation model to relate the cost of debt to the willingness of a bandwidth supplier to offer discount for long term IRU (where a supplier will receive up-front payment to offset the high cost of debt interest).
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Format: PDF | Size: 22KB | Date: Sep 2000 | Pages: 6
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