| HBS Case Collection
(Revised December 2004)
Jazztel--an upstart Spanish telecom--is considering an IPO on the NASDAQ (rather than the Madrid Bolsa) for funding its ambitious capital expenditure program estimated at $750 million over the next 10 years. The alternative would be another round of high-yield debt. Following the liberalization of the Spanish telecom market on December 1, 1998, Jazztel became the first alternative service provider to challenge Telefonica (recently privatized, state-owned telecom) by providing a full range of high-quality, tailor-made, integrated voice, data, and Internet services at attractive prices. As a money-losing company with just three kilometers of its own network operational and a voracious need for capital going forward, Jazztel's management team wonders how investors would value the company.
Initial Public Offering;
Financing and Loans;
Bertoneche, Marc L., Laurent Jacque, Kenneth Hynes, and Jennifer Woolman. "Jazztel". Harvard Business School Case 204-047, April 2004. (Revised December 2004.)