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Broadband Strategic Development

Commercial and Financial Market Testing and Analysis

Any business project is launched with the hope that it will be a commercial and financial success.  In order to ensure this a robust business plan should be developed to attract finance and to focus service development looking forward.  The success of any broadband network project is based upon the knowledge that there are investors willing to provide funding and service providers willing to offer services over the network.  The revenue received from the service providers is an important element of the business plan for network rollout, which, in turn, cannot progress without funding. 

Commercial analysis of a project should include an assessment of user demand, associated revenue and service take up over a period of years.  The costs of providing service are very important in understanding the likely margin or return on investment that the project will provide to its investors.

An input to the development of a business plan is market analysis to assess the likely demand for services and interest from investors.   This analysis can include specific market testing allowing the network owner to understand the appetite of Internet Service Providers, content and service providers to offer services over the network and capital markets to fund it. Indeed other parties may wish to invest in the network, such as property companies or utility providers who may be involved in the network rollout itself.

It is useful to model the commercial and financial aspects of the project over a period of time to assess likely demand, costs and returns.  Scenario analysis can be performed on variables within the model to assess how costs or revenues would changes under different circumstances.

InterConnect and its partners have considerable experience in the development of business plans through demand modelling, market analysis and cost modelling.