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Expansion in Russian Telecommunications Market

In: Business and Management

Submitted By ba09220
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CASE 4-1 TALK TO ME INC.: Expansion in Russian Telecommunications Market
GLOBAL OPERATIONS AND LOGISTICS•TEXT AND CASES Philippe-Pierre Dornier, Ricardo Ernst, Michel Fender, Panos Kouvelis






The present case study refers to Talk to Me Inc., a company specialized in telecommunications that examined back in 1995 whether or not to expand in the Russian market. The company’s background and action so far, as well as the environment of Russia played a catalytic role in making the decision of expanding in the soviet country.

The case begins with the proposal of the Russian Ministry of Communications to Talk to me Inc., known as the 50/50 project. The purpose of this project is to develop an entirely new telecommunications network in Russia and got its name from its goals. In particular, the 50/50 project’s aims were to connect 50 Russian cities, to establish 50 long-distance transit switches and 50 thousand kilometers of digital lines. The 50% of equipment required for the project would be manufactured in Russia and the 50% of the funding would come from Russian resources. This project was expected to last 10 years, with an estimated Budget of $40 billion.
Among Talk to me Inc., the Ministry had also approached numerous other American telecommunications companies, such as AT&T and US West, as well as large European organization, for example Deutsche Telekom and France Telecom.



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