Long-term investments vs. short-term profits
The fiberevolution blog highlights and comments on Professor W.H. Melody’s recent keynote speech at the Broadband Cities conference (November 14-15, Amsterdam and Almere, Netherlands).
The crux of Prof. Melody’s presentation was then to show how Private Equity had driven two major European incumbents to the ground, namely Eircom in Ireland and TDC in Denmark. I won’t go through the chronology of investment reduction and asset destruction to generate short term cash, but I think the audience was, as I was myself, flabbergasted. Not that this was not known, but the accumulation of fact was very damning indeed.
Ultimately, Prof. Melody’s message was two-fold:
- NGAN investment requires patient capital
- Private Equity is not the way to go.
Click here to read the full article.
Click here to view Melody’s conference presentation.
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