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The Business Model of Next Generation Mobile Broadband

The Business Model of Next Generation Mobile Broadband. Presented by: Aji Purwoseputro Divisi Data Product Portofolio PT Indosat. Agenda: Business and Technology Trends Popular Applications and Services Business Model Summary Q&A. The Connected World. Applications

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The Business Model of Next Generation Mobile Broadband

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  1. The Business Model of Next Generation Mobile Broadband Presented by: Aji Purwoseputro Divisi Data Product Portofolio PT Indosat

  2. Agenda: Business and Technology Trends Popular Applications and Services Business Model Summary Q&A

  3. The Connected World Applications predominantly in Internet Multitudes of Business Model Billions People Connected Increasing Smartphone Handset Broadband Everywhere

  4. Mobile Internet Market Strategy Analytic Forecast on Mobile Internet Market by 2012 • User spending forecast US$ 38 Billion • Mobile User 707 Million • Installed based of 3G capable browser enabled handset continues to rise • Price fall for mobile web access • Improved user’s experience in browsing internet using over 3G+ via optimized handset like iPhone • Populer internet services: Social Networking (Facebook, MySpace), Webmail service from Yahoo and Microsoft, Search engines

  5. High Speed Mobile Data Network Evolution Path LTE W-CDMA/ HSUPA W-CDMA/ HDSPA W-CDMA GSM/ (E)GPRS

  6. Popular Applications and Services Broadband Access Service Social Networking Location Aware Service Advertising on Mobile Web Interactive Entertainment Push Mail News

  7. Broadband Access Service Service of high rate date access

  8. Mobile Social Networking • Online Communities of people who share interests and/or activities, conversing and connecting with one another using mobile phone (Wikipedia) • Popular Social Networking Media includes MySpace, Facebook, Windows Live Spaces (MSN Spaces), Friendsters, hi5, Flixsters, Flickrs

  9. Interactive Entertainment • Gaming, contents and videos distribution of which the entertainment value can be influenced by users • The rising popularity of Web 2.0 led to an Internet revolution where websites could utilize streaming video, audio, and a whole new set of user interactivity • Interactive games, contents and video enhanced with the “user generated content feature capability” will still become potential applications to boost the mobile internet data usage

  10. News – Online Media • The attractiveness web newspaper with the capability of presenting breaking news in more timely manner is getting the rising popularity in accordance with the increasing number of people going online • Interactive online news and trend towards citizen journalism with active engagement of customers in writing news articles will become potential aspect that can increase mobile data tariff usage (Source: Alexa, March 09)

  11. Advertising on Mobile Web • Promotion via Internet Web for the expressed purpose of delivering marketing messages to attract customers • Includes web banner ads, search engine result pages, social networking advertising, rich media ads etc. • Advertising becomes to potential new revenue stream for mobile network operator that in combination with lower pricing service offer can increase the mobile traffic usage

  12. Business & Partnership Model Battle GroundBusiness Model

  13. Battle Ground Operator Handset Manufacturer WebCo’s 3G network opportunity High end devices are shifting user behavior Value is being extrapolated by 3rd party The next battle ground is among Operators, Handset Manufacturers and WebCo’s for the mobile internet on mass market devices

  14. Business Model Internet is going to Mobile Mobile is going to Internet Business model (Telco Centric, WebCo Centric or OEM Centric) Partnership model (revenue share, license, investment)

  15. Mobile is going Internet Mobile Handset Manufacturer Centric Model Mobile Handset manufacturers are investing in Business to Business (B2B) and Direct to Customers (D2C) to win the eyeballs of MNO end users Integrated OEM proposition

  16. Mobile is going Internet MNO Centric Model Mobile Operators are investing in Business to Business (B2B) with WebCo and Handset Manufactures and performing Direct to Customers marketing activities to their own customers WebCos and Handset Manufacturers deal with MNO to embrace internet services.

  17. Summary • The growth of mobile internet uptake will still continue alongside with the wider deployment of broadband network, proliferation of flat tariff, explosion of mobile internet devices, broader availability of mobile search engine and accessibility of more interactive end user applications (Web 2.0 based application) • Instant Messaging, Social Network, Location Aware Application, Advertising on Online Media, Mail, Interactive Games and Contents are considered as the most preferred mobile internet applications and services that can boost mobile internet usage.

  18. Summary • Globalization, horizontal business trend and mobile internet technology development have shifted the next competition battleground between MNO’s, Handset Manufacturers and Global WebCo’s. • Business model (Telco Centric, WebCo Centric or OEM Centric) and partnership model (revenue share, license, investment) must be built alongside with corporate strategy and objective. • Well chosen pricing strategy must fit to the marketplace reality, can support product positioning and contributes to the company financial goal (profitability).

  19. Thank You!

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