Essay about Palm Tower

1516 Words Nov 29th, 2014 7 Pages
Justin Goldberg
Case: Palm Towers
Introduction: Basis of the case is…
This case is used to solve the problem of determining how much this company (the National Tower Company) should bid for the Palm Tower, if anything at all. Contrary to many of the other cases, this case is not a case of make or break. Alternatively, this is clearly a situation of a want and not a need, as CATO is mentioned nowhere here. It becomes evident from the beginning of the case that this is definitely a tower that comes with an abundance of value. In fact, the majority of working on this case is basically a forecast showing how much profit this investment could potentially provide. We would recommend just by previewing the case a bit that a bid
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This is actually a positive considering the turnover (or churn rate) for these carriers is listed at 1% for the purposes of this case. So considering that it is unlikely to lose one of these three carriers and the additional fact that it is likely to gain the final fourth in T-Mobile, The National Tower Company should definitely give the most competitive bid it can here. The only possible foreseeable problems are the competitive bids with American Tower, SBA Comm. and Crown Castle, and the $40,000 cost of adding a new carrier, which with a couple renewal options coming up soon could lead to some problems specifically with Ce.
Analysis: Scenario Breakdown
There are a multitude of scenarios that could possibly happen to affect the TCF in this case, and even many that are delved into with the spreadsheet. With brevity in mind though, for this report we will only review the most likely three, although in the final evaluation all will be taken into account. One of the cases we will analyze is actually the base case, as is sets the basic parameters and is highly likely.
The parameters for the base case are that we have three major carriers, three regional carriers, two government carriers and one dated technology, though the dated technology chooses to drop after year 2 as it has a lease renewal option and will be soon phased out as an obsolete technology soon,

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