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Case
| HBS Case Collection
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2001
Sigma Networks, Inc.
by
Thomas R. Eisenmann and Christina L. Darwall
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Abstract
Sigma Networks, a venture capital-based telecommunications start-up, provides metropolitan area networks (MANs) that use fiberoptic lines to connect local Internet service providers (e.g., ISPs, hosting firms) with a long-haul ("backbone") network. MANs represent a capacity bottleneck in delivering broadband services. This case describes the challenges Sigma faces in exploiting this opportunity, including: 1) deciding on its network architecture (build vs. lease dark fiber, Ethernet vs. sonet focus); 2) deciding on which customers to target (enterprise vs. telecom carriers and Internet service providers); and 3) deciding how many metro areas to pursue simultaneously in a capital-constrained environment.
Keywords: Business Startups;
Customers;
Capital Budgeting;
Venture Capital;
Strategic Planning;
Technology Networks;
Telecommunications Industry;
Citation:
Eisenmann, Thomas R., and Christina L. Darwall. "Sigma Networks, Inc." Harvard Business School Case 802-103, November 2001.