If TeleCo were to enter into a strategic alliance with a partner that promised it could deliver a high quality wireless infrastructure when in fact the potential partner had neither the skills nor abilities to provide this infrastructure, TeleCo could be said to be impacted by

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Adverse selection is when one party has more information than the other party in a transaction, resulting in the other party being unable to assess the true quality of the product or service being offered. In this scenario, TeleCo is entering into a strategic alliance assuming that the potential partner can deliver a high-quality wireless infrastructure, but the partner may not actually have the skills or abilities to do so. This is an example of adverse selection.

If TeleCo Were to Enter into a Strategic Alliance with a Partner