Joint venture project consideration: agreement of a TV station with a Mobile Telecom provider to offer content for mobile based added value services…

Posted on 4 Οκτωβρίου , 2006


According to the agreement the TV station provides infotainment services, while the telecom provider offers its distribution channel and its customers.  

The agreement can be implemented through the use of a spin off “Repackaging-Repurposing Company”, utilizing the network to deliver the services to the end user. Leader of the project can be held the content provider who owns the rights of the content while leadership may evolve and become diffused and agreement specific. Since the project offer prosperity to both interests conflict lies in terms of vision/expansion.  

The mutual value creation that the joint venture produces offer gains to both parties while the knowledge administration may be reside with the spin off, who should set the agenda, interdependence of collaborating parties may though enable smooth progress of the venture. There is a need for both parties to exercise a common characteristic, a similar disposition toward risk in a turbulent and innovative project which provide a very positive NPV to be ignored although no venture specific assets are being required.  

Nonnegotiable situations may be confronted in brand equity from the telecom provider and in revenue share from the TV station. A critical success factor resides to the fact that the alliance should receive maximum attention from top management of both partners and the negotiations should be open although the final agreement should be strict in accordance with the regulatory framework for both industries. The final output of the project, considering similar projects in other countries, may be considered successful equally from theoretical perspective since the benefits of collaboration by far exceed the benefits of the deal itself with potentials for partnerships in numerous fields thereafter 

Collaboration in practice means a good communicated leadership, on a certain objective, although “Don’t work collaboratively unless you have to” epitomize the issue of collaboration in reality practices. Collaboration (in a bilaterally basis) is a utopia that may not exist since in that case the motives for both parties will be vanished; not the power keepers intent to share their power neither the power seekers intent to share their gains. Managing this kind of joint venture is a continuous bargain among the power keepers and the power seekers.  

What usually happens is that in any alliance the interesting parties have their own carefully covert interests which as soon as they will be fulfilled the collaboration takes a shape producing usually the feeling of content to both parties for different reasons than those provided or described by the common interest that may fail after all. Certain equilibriums though that combine mutual ambiguity of the parties for the objective, with low risk ventures promising high returns, provide common grounds for entrepreneurial set ups of successful collaborations.

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