Wednesday, March 21, 2007  

Prestige vs Value

The Olympic Games is a prestigious event whereby contestants from around the world come together to meet and compete, to be the best in its talents like running, swimming, cycling and tons of others. Companies try to be part of the infrastructural network, but at the end of the day, is it worth it?

I think being part of the Olympics is a prestige thing more than a monetary-value decision.

My reasons:

First, companies vie for a spot to be part of the team behind the infrastructure even though it may not recover the money spent.

Second, even if the companies have not secured any contracts, it boasts about having services that can support the network.

For example, DMX Technologies have, some years back, said that it would help build the digital TV infrastructure to prepare China for the Beijing Olympics.

Another example is Ace Achieve Infocom. It announced yesterday that it has been certified to be involved in 3G network in China, but it has not yet signed any agreements with the telcos.

But China is more likely to use state-owned companies to run its services, before thinking of outsourcing, especially to foreign companies.

Well, it might take place, but the value of these contracts may not be as large as assumed.

China would probably only turn to foreign companies if their home-grown ones do not have the expertise to do so.

So far, only China Hongxing has announced securing an agreement to sponsor the North Korean Olympics Team as well as its national women's soccer team.

Yes, they will be able get brand awareness but how much money will they actually make out of those contracts is another question.


Nurwidya Abdul and Serene Lim

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