Determinants of the Economic Value of Investment Activity as A Factor of Sustainable Business Development

Abstract:

The economic value of investment activity of a telecommunications provider as an internal characteristic of its economic activity is studied through characteristics of the state and efficiency of the investment activity implementation, estimated by indicators of development of the results of economic activity of a telecommunications provider in the value chain. Characteristics of the economic value of an investment activity for a telecommunications provider are mostly reflected in value indicators such as net investments, share of capital investment in net income, capital efficiency, return on invested capital. Results of economic development of a telecommunications provider are characterized by an increase in ARPU, net income and efficiency, growth in assets, formation of net cash flow and economic value added. The specifics of a telecommunications provider are reflected in such operational indicators of development as an increase of subscriber base, an increase of Internet traffic or voice traffic, changes in the structure of traffic characterizing changes which have occurred due to improvement in quality of rendering services, expansion of their scope, etc.

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