Saturday, February 6, 2016

Reading the Landscape, Guessing the Future Mobile Business Model in Indonesia (Part 1)

Digital Lifestyle

Nowadays, people’s lifestyle have been changed in a disruptive way, even a pandemic Social Networking Syndrome. The symptoms can be found in people behavior today, what they doing in 24 hours certainly been forced to always be connected to the virtual social world. Practically, they’ve been tied to social networking needs for 24 hours, and it is all being possible by the convergence of Internet and mobile technology. The service provider was enabling the occurrence of this phenomenon through the present services and products to support a variety of needs, above all the investments that have been embedded. The new lifestyle gave rise to new markets, new landscapes behavior of people communicating, and certainly there are opportunities to big business benefit. Then it becomes very interesting to look at the broader landscape of mobile telecommunications industry in Indonesia.
Indonesia, the largest archipelago in the world with a number of islands reaches 13 487 islands and a population of 250 million people is a very big country. In Indonesia, the market welcomed the presence of technology that provides the benefits and convenience for users as the above phenomenon. Mobile technology is destined perform voice communication space to move without restriction, fast track penetration than fixed line. The emergence of 3G (or even 4G fortunately as the newest coming) networks is the answer to today's society thirst. Speed ​​offered is said to have reached 42 up to 150 Mbps may not even able to give satisfaction to the internet users in Indonesia. The penetration of mobile subscribers continues to rise from the year 2007 amounted to 37.16% and it has become 112% in 2013.
According to population projections of Indonesia 2010 - 2035 by the Central Bureau of Statistics (BPS 2013) Indonesia is predicted to have a demographic bonus with numbers of middle class population, which will reach nearly 70%, i.e. residents with spending between US $ 2 - US $ 20 per day (according to the World Bank). Demographic bonus which gives a significant impact on economic growth in Indonesia this means that productive labor force number is far more than the old people. This is a tremendous potential to drive economic growth, including the demand for telecommunications services and lifestyle industry will rise significantly. This is because the Indonesian middle class experienced a reorientation in the household economy, which leads to the fulfillment of a lifestyle which reflected a certain social class. Mobile data and related telecommunications (mobile operators, device, application, and so on) is one of its manifestations. Indonesian telecommunication industry growth is followed by strengthening of two major trends, ie the level of competition and media convergence era marked by the widespread use of the Internet, especially for social media. Both of these symptoms are more prevalent these days is mainly driven by the increasing use of smartphones in Indonesia, which has become part of people's lifestyles with a penetration rate has reached above 30%, as reported by ATSI in mid-2013.
Indonesian MNO to capture and capitalize on this trend. The industry is changing rapidly with new revenue models that created and launched by the operator. Operators must be changed to be able to compete and the need to evaluate new technology options faster and reliable in managing existing systems or the loss of markets that have switched to a competitor. The market is growing rapidly, with the other players behind the scenes such as Cloud computing services, social media, online shopping, which indirectly become competitors in gaining revenue. A new way for consumers to subscribe to any services offered. Therefore, the operator must support the new business models that companies can remain relevant. The impact of the phenomenon of competition on the performance of the business is something that certainly should be anticipated. How to focus and how effective efforts to anticipate this to be an important objective to be analyzed, particularly of strategies and business models that have been implemented in his business.

Obviously, Indonesian MNOs have captured and capitalized this phenomenon. The industry is changing rapidly with the new income model that was created and launched by the operator. MNOs must be changed to be able to compete and need to evaluate new technology which faster and more reliable in Service Quality Index (SQI) in managing existing systems, otherwise loss markets that have switched to a competitor. The market is growing rapidly, with the other players behind the scenes such as Cloud computing services, social media, online shopping, which indirectly become competitors in gaining revenue. A new way for consumers to subscribe to any services offered. Therefore, MNO need to support new business models so that it can remain relevant. The impact of the competition phenomenon on the business performance is something that certainly should be anticipated. How focus and effective efforts to anticipate this is an important objective to be analyzed, particularly of strategies and business models that have been implemented in the business.

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