Silicon Valley tends to get quite excited about “network value” . Eyeballs, social networking and even PayPal. In India Metcalfe’s law is not popular. See http://en.wikipedia.org/wiki/Metcalfe’s_law. Can Metcalfe’s law help Indian entrepreneurs create elephants ?

Building company value is not just about revenues and breakevens. Baazee was bought by eBay for $50 million even though it was losing money. eBay paid a huge amount for Skype. Is eBay crazy and headed for “value destruction” or are they enhancing network value.

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