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Strategies for Service Providers and Operators

Strategies for Service Providers and Operators. International Telecommunication Union (ITU). Basic E-Commerce Training For Pakistan Pakistan Telecommunication Authority (PTA) Islamabad, Pakistan 31 March – 5 April 2001. Alexander NTOKO, Project Manager, ITU Electronic Commerce

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Strategies for Service Providers and Operators

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  1. Strategies forService Providers and Operators International Telecommunication Union (ITU) Basic E-Commerce Training For Pakistan Pakistan Telecommunication Authority (PTA) Islamabad, Pakistan 31 March – 5 April 2001 Alexander NTOKO, Project Manager, ITU Electronic Commerce ITU Telecommunication Development Bureau (BDT) Email: ntoko@itu.int Web: http://www.itu.int/ecdc

  2. Agenda The Business Case Global Markets Market Positioning Customer Ownership Complementary services Alliances and Partnerships Business Model Conclusion – 3CM

  3. Business Case • Compelling business case due to high projections for Internet merchants. • Expected rapid and continued growth of sector. • E-Merchant services will assist service providers to move up value chain and hold on to existing customers. • Better positioned to enter emerging markets.

  4. Business Case -Challenges • Low Internet penetration in local markets will penalize service providers. • Low GDP for e-merchants reduces potential for high Internet growth and new revenue streams. • Low level of awareness will slow transition from brick and mortar to bricks and clicks. • Low demand for value-added services reduces possibilities for moving up the value chain.

  5. Global Markets • The Internet is a global medium with a high potential for growth in all regions. • Low barriers to provide cross-border e-merchant services – xSPs can provide e-merchant services across geographical barriers. • Winners will be the early adopters.

  6. Global Markets -Challenges • The global nature of Internet creates fierce competition on service provisioning – competition from non-local providers who also have access to local e-merchants. • Absence of environment to facilitate rapid expansion in local and other markets. • Adoption of wining strategies will depend on e-merchants market maturity and demand for value-added services.

  7. Market Positioning • For operators in DCs, the markets are not matured due to low level of awareness, poor infrastructure and low demand for value-added services. • Strategy: • Barriers can be removed by bundling services needed by merchants in a single and affordable package. • Trust and brand name of operator should be used to build merchant confidence. • Capitalise on customer-base to deliver customers to e-merchants using portals.

  8. Customer Ownership • 1. Online Directories: Use existing telephone directories to create online versions with search functions. Online directories provide strong arguments to bring customers to an operator’s site. • 2. Portal Models: Creating a community (via a Portal) adds value to an operator’s site and could break some entry barriers for potential Internet merchants.

  9. Portal Models • Mass Markets: Dedicated portals, ISP home pages and Regional Portals. • Vertical Portals: Special interests, business sector, socio-demographic and enterprise. • Directories: Yellow Pages (telephone directories). • Shopping Portals: Internet Malls, Business Procurements, Trading Communities and Virtual Mega stores.

  10. Complementary Services • Customer Contact Services: Provide complementary services to enable Internet merchants reach new customers (e.g. e-mail routing and processing). • 2. Application Services: Service providers can also bundle website hosting, purchasing applications and back-office accounting and application integration for Internet merchants. • 3. Mobile Commerce Services: Exploit potential for mobile services by providing convergent services to expand customer base and keep existing customers.

  11. Alliances and Partnerships • Choose the right partners with core competencies in their fields. • Partnership should be based on mutual benefits and added value for potential Internet merchants. • Eliminate duplication of services and focus on complementary solutions and service aggregation. • Bundle solutions and services from partners as one package.

  12. Business Model

  13. Conclusion - 3CM • Createthe demand for e-business services. • Capitalize on trusted brands, market position and customerownership to provide value-added services. • Convert customer base to portal users. • Move up the value chain, focus on core competencies and forge alliances and partnerships. • Create, Capitalize, Convert and Move

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