Article ID Journal Published Year Pages File Type
560033 Telecommunications Policy 2011 11 Pages PDF
Abstract

The Korean National Emergency Management Agency proposed to replace existing public safety wireless networks of 46 agencies with a nation-wide consolidated network. This study compares the public–private partnership alternative of sharing a network with the conventional alternative of building a government autonomous network. Using exploratory modeling and real option analysis which compute path-dependent values (including network effects and switching costs) of all the plausible sequential incremental investments against a wide range of future states, this study has designed adaptive investment strategies (“start robust, then adapt”) which start in the highest pay-off area, and then make investment decisions about whether to expand or switch to lower pay-off areas, based on an updated information of technology prospects and the previous-stage performances of inter-agency operational effectiveness and public–private partnership. This case study has demonstrated that well-designed adaptive investments will enhance long-term values and reduce downfalls arising from public–private partnership.

Related Topics
Physical Sciences and Engineering Computer Science Information Systems
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