01 - telecommunications an overview

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1Telecommunications Management, - Copyright Harry Chrismanaria

Introduction

Telco Management Session I


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Telecommunications Management - Harry Chrismanaria 2

Lecturer

Harry Chrismanaria, ST, MM

Contact :

Email : [email protected]

Phone : 021-70706075, 08111-982200


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Contents

q Introductions q History of Telcosq Global Telcos Industryq Indonesia Telcos Industryq Telcos Future Trends


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Literatures

q Karen G. Strouse, Marketing Telecommunication Services,Artech House, Boston, 1999.

q Ellen P Ward, World-class telecommunications servicedevelopment, Artech House, Boston, 1998.

q Harald Gruber, The Economics of Mobile Telecommunications,Cambridge University Press, 2005

q Stephen P. Robins, Management, 7th edition, Prentice Hall,2002

q Philip Kotler, Marketing Management, 12th Edition, PrenticeHall, 2006

q Christopher Lovelock, Services Marketing in Asia, 2nd Edition,Prentice Hall, 2005

q Stephen P. Robins, Organizational Behavior, Prentice Hall,2003


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Penilaian

q UTS : 30%q UAS : 30%q Tugas/Presentasi : 30% (15% + 15%)q

Absensi : 10% (minimal ssi standarminimal UMB)

q Additional : Partisipasi


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History of Telcos


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Evolution of Mobile Phone Devices

4. Kyocera 2135 (2002)5. Audiovox CDM8300 (2002)6. Samsung SCH-A650 (2004)

1st US Mobile Phone

Motorola (1973)

1. NEC Cellstar 500 (1990s)2. Nokia 2110 series (1994)3. Nokia 5120 (1998)


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Now


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Future


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What is Telecommunication

q Telecommunication is defined as any transmission,emission or reception of signs, signals, text, images,sounds, videos, or intelligence of any nature by wire,radio, optical, or other electromagnetic system

TelecommunicationServices

Voice

(Wireline voice, cellphone, VOIP, PBX)

Video

(Cable TV, Satellite TV,IP TV, Mobile TV)

Data

(DSL, Cablebroadband)


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Telecommunication Service Providers

q Network operatorq Infrastructureq CPE (Customer Premises Equipment)q Content & Applicationsq Value Added Services

q Authorized Resellerq Outletsq BPO (Business Process Outsourcing)q q

TelecommunicationService Providers

Wireline

(Voice, DSL, IPTV,PBX)

Wireless

(Cellphone, Wireless

Broadband, MobileTV)

Cable

(VOIP, Cable TV,Broadband)

Satellite

(Voice, TV,Broadband)

To consider the building block of this industries, we should consider many more

supporting industries , such as


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A Unique Service Industry

q Most service industries offer services on a discrete /episodic basis.

q In telecommunications, Service delivery is not episodic,it is continual.

(World Class Telcos Service Development)

All Industries are trying to lock relationship with its customer,Making continual delivery, Creating repeat buying & loyalty

Is it true ? Lets see Prepaid card ? Wartel / warnet / Payphone ? Credit card ? Workshop / Bengkel ? (Voucher langganan)


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4 Tahapan Strategi Operator

1. Operator fokus pada pembangunan jaringanuntuk perluasan jangkauan layanan

2. Operator fokus pada harga (pricing),asumsinya, jika coverage sama, namun harga

lebih murah dari pesaing, maka penggunatelepon akan memilih yang lebih murah

3. Fokus pada Quality of Service (QoS)4. Fokus pada menyediakan layanan nilai tambah

atau Value Added Services (VAS).


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GlobalTelecommunication Industry

Conditions & Key Indicators Review


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Global ICT Development


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Fixed Telephone


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Internet Users


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Internet users in 2010 as a percentageof a country's population


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# Internet hosts


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Telecommunications Management - Harry Chrismanaria 25Internet Bandwidth between G8 Countries


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Mobile Telephony

Mobile-cellular subscriptions, by level of development


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Mobile Broadband


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Industry Market Share

Source : http://marketshare.hitslink.com/


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Strategic alliances of device-OS producer now emerge : Samsung/ZTE Android, Nokia/HTC Windows Phone, ZTE Firefox OS


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IndonesiaTelecommunications Industry


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Significant Wireless Growth


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Lowest ARPU in APAC


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Broadband Penetration Rate

Fixed Broadband

Wireless Broadband

Source : Frost & Sullivan


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Internet penetration in Indonesian homes is relatively low, andmobile is increasingly the medium that marketers should move

towards in reaching consumers. In terms of place of access, mobilephones are the second most popular mode used to access theInternet, having increased 26% from 2009 to 2010. It is

understandable that its share of Internet hours is lower than theamount of time Indonesians spend online at home, in the office andat Internet cafes, since online material is consumed on-the-go,rather than for long periods when one is static and immobile.Unlike the West, where there are many channels for distribution ofcontent, such as the TV, laptop, desktop, smartphones, and iPad,

Indonesians have two main channels they turn to for information and

entertainment, namely TV and mobile. As mobile penetrationcontinues to increase, marketers can capitalize on mobile usage bycreating targeted, interactive content that can be consumed quicklyon-the-go, and develop compatible social media tools and

applications specifically for the mobile platform. A study done byBoston Consulting Group in September 2010 showed thatIndonesian digital consumers use their mobile-handsetconnections to meet a variety of needs that are typically metin other countries through PC-based Internet.

The Indonesian telecommunications market is unique in the sensethat users adopt mobile devices from the start instead of migratingfrom landlines to mobile services.

Source: Yahoo! and TNS Net Index of Indonesia in 2010 - Indonesia Internet Place of Access

Retrieved from https://wiki.smu.edu.sg/digitalmediaasia/Digital_Media_in_Indonesia

Broadband Market


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Indonesia Digital Divide (2006)


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Initiative for KTI Backbone

Source: Menkominfo Presentation, Oct 2009


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Wireless Market Revenue Outlook



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Broadband Subscriber Outlook



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Single digit growth in a saturating market


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Software Market

Sumber : Asosiasi Peranti Lunak Indonesia (Aspiluki)

87%

Pembajakansoftware

Sumber : International Data Corporation (IDC)


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Telecommunications Management - Harry Chrismanaria 46Source : Frost & Sullivan


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Mature industry Lower rev growth



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Mobile data opportunity is big



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Some keypoints



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Some keypoints



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Future Trends


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Industry Analysis


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Porters 5 Forces

POTENTIALENTRANTS

Threat of

New Entrants

INDUSTRYCOMPETITORS

Intensity of Rivalry

SUBSTITUTES

Threat of

Substitutes

SUPPLIERS

Bargaining Power

of Suppliers

BUYERS

Bargaining Power

of Buyers


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Threat of Substitute

Substitute products threat HIGH if :q Offer a similar level of benefits at

proximate prices

q Customer switching cost is lowq Customer is price sensitive


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Threat of New Entrant

Entry barriers of new entrant :q Capital cost of entryq Economies of scaleq Access to secret technology (patent)q Brand recognitionq Access to distribution channelq Lack of experience cost disadvantageq High customer switching costq Access to low cost input (e.g. labor)q Legislative barrier


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Acquisition of existing company ??q Share same demandq Not producing new productq Not new entrant

(e.g. Indosat - Satelindo)


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Threat of new entrant HIGH if :q LOW Capital cost of entryq EASY Access to secret technology (patent)q Brand recognition of existing player is LOWq Access to distribution channelq LOW customer switching costq NO Legislative barrier


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Power of Buyer

Power of buyer HIGH if :q There few buyer who purchase in large quantitiesq Buyers have LOW switching costq Buyers have choices for many sellersq Product/service is not important to customerq Buyers have information about sellers cost and

other buyers prices


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Power of Suppliers

Power of Suppliers HIGH if :q Few alternatives of supplies, many playersq Player is not an important customer to suppliersq Supplies are important for playersq NO substitutes for the supplied productsq Supplied product has a good reputation/brand,

especially to final products/customer


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Rivalry Amongst Industry Member

q Demand is growing slowly or decliningq Customer can switch products easily (low product

differentiation)

q Price cutting strategy of new entrantq

Players are similar in size and market powerq There are excess capacity, moreover if it follows

with high fixed cost

q Dominant market sahre will lead to long-termprofits (economies of scale & experience)


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Thank You

End of Slides

01 - telecommunications an overview

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