Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 14 pages in length and its case teaching package is 6 pages.

Abstract

This case is set in 1990. It deals with "technology costing"—strategically astute financial analysis for new technology introduction.

This case deals with a proposed business venture to start a "wireless cable" company in a rural area in Northern New England. Wireless cable is a much lower cost technology than conventional cable TV (coaxial cable). But coax is already there and programming is more expensive for the wireless operator because the programming companies price discriminate in favor of coax operators. The case considers the financial and strategic aspects of the investment proposal.

Linkages to Textbooks or Journal Articles/Fit Within a Course

I use this case in a second year elective in SCM in conjunction with Chapter 14 in the SCM book. The case is a good review of DCF calculations in a complicated but not really complex fact situation.

I follow the suggested questions one at a time. Once students see that the numbers come out just about "break-even," given case assumptions, the discussion turns to a blending of financial and strategic issues. The case will easily support 90 minutes of discussion.

Study Questions

1. Prepare a DCF analysis of the Dartmouth Wireless Cable System proposal, starting in 1990 (FCC licenses cover an 11-year period). Use the format in Exhibit 1 of the case. Round the numbers as much as you like. Think about how to estimate the cash flows before you jump into a big spreadsheet here. Keep the calculations as simple as possible. Use information from Exhibits 2 & 3 of the case, where applicable, with additional information from Appendix B.
2. Can you construct a "metric" for evaluating the attractiveness of a given market area for a wireless system? What does this metric suggest about the Upper Valley area?
3. Is there a good business venture here?
4. What SCM issues are raised in the case?
5. What is your advice for John Greene?

The downloadable file for this case is in Microsoft® Word 7.0 for Windows®.

If you do not have Microsoft Word, you can download the free Microsoft® Word Viewer 97 right here:   For Windows 3.x   For Windows 95

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