Television & Broadband Internet Services

CLIENT:
International Broadcast and Telecommunications Company
OBJECTIVE:

To update a cost sharing agreement for common capital equipment costs across four partners in a satellite broadcasting company.  The existing cost sharing arrangement led to non-optimal strategic and pricing decisions, which would be alleviated given a new cost sharing arrangement.

APPROACH:

Developed recommendations for sharing common capital equipment costs across four partners in a satellite broadcasting company based on the usage and marginal costs of the equipment. The original cost sharing arrangement developed for the initial partnership was no longer relevant given new product offerings and market changes.

RESULT:

The new cost sharing agreement was accepted by the partners and implemented in the subsequent fiscal year.  The agreement reflected new products and market conditions.

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