The question for market analyst is who will buy service from Smart Telecom, NTC or Sampoerna Telecom. If we see the offer from Smart, which the main attraction will be the price, the answer is no body. The conglomerate employee probably will be the only subscriber. For the other people, they unlikely to buy service/number from Smart. The offer from other cellular operator is a lot more attractive, cheap and advertised intensively. One more, their service has been proven and they already have millions of customer. Smart don't advertise much and their ad only seen at almost nowhere. Their advertisement itself doesn't look attractive, and most people see it sceptically. Seem that their marketing team analysis is shallow.
The key for cellular operator to survive is to sell number, or if not, sell the whole company, which is unlikely the case for Smart. There is options to choose : to sell on normal price and nobody will buy, to sell with discount as the others did which unfortunately will not attract people. Both will burden the company because of no sales occured. Other options is to give away many services, give a lot of lower cost, provide many bonuses and sell very cheap mobile handset. Marketing team should work very hard to find an interesting combination. They should work together and negotiate with mobile vendor, regulators and others operator.
Monday, October 29, 2007
Feasibility Analysis of Wimax
WIMAX stand for Worldwide Interoperability for Microwave Access is a new technology that provide wireless broadband for fixed, portable and mobile subscribers. Its different from Wi-fi in term that it's standardized (IEEE 802.16), provide greater bandwidth (total of 75 Mbps), greater coverage (up to 50 km compared to 100m), provide QOS (that way all Wimax can support VoIP and video).
Wimax is emerged as an evolution to Wi-fi compared to as cellular phone evolution. But because of it's feature-rich, the low infrastructure and deployment cost, and the advance development on IP, soon it will be a great competitor for 3G. As stated earlier, Wimax is supporting QOS, make it possible to provide VoIP, video and data. It is reported that Motorola is developing dual mode handset supporting CDMA-Wimax, while Nokia is developing UMTS-Wimax handset, both planned to be released on 2008.
Wimax soon will be very popular to service provider and to users. For Service Provider, Wimax will provide a way to build or extend network in low cost, and enable them to deploy quickly and easily, and soon provide feature-rich service to support quadruple-play. It's service will be superior compared to 3G, and will be cheaper.
Indonesia need Wimax
Until October 2007, there is no report on deployment or trial of Wimax in Indonesia. There is deployment in Bangladesh and Pakistan, and there is trial in Japan and Malaysia. Look like there will be trial in 2008 as Motorola has prepared team for it's trial. On my opinion, infestation on Wimax is a promising. It will provide good reputation from IT community either, as it believed will increase internet broadband connectivity in the country. Even if Wimax doesn't provide voice connection in it's initial offer, provider will get a lot of subscription from broadband subscriber, as it provide lower cost subscription and convenience compared to wired or Wi-fi. It's subscriber will evolving as the result of higher internet literacy.
Wimax is emerged as an evolution to Wi-fi compared to as cellular phone evolution. But because of it's feature-rich, the low infrastructure and deployment cost, and the advance development on IP, soon it will be a great competitor for 3G. As stated earlier, Wimax is supporting QOS, make it possible to provide VoIP, video and data. It is reported that Motorola is developing dual mode handset supporting CDMA-Wimax, while Nokia is developing UMTS-Wimax handset, both planned to be released on 2008.
Wimax soon will be very popular to service provider and to users. For Service Provider, Wimax will provide a way to build or extend network in low cost, and enable them to deploy quickly and easily, and soon provide feature-rich service to support quadruple-play. It's service will be superior compared to 3G, and will be cheaper.
Indonesia need Wimax
Until October 2007, there is no report on deployment or trial of Wimax in Indonesia. There is deployment in Bangladesh and Pakistan, and there is trial in Japan and Malaysia. Look like there will be trial in 2008 as Motorola has prepared team for it's trial. On my opinion, infestation on Wimax is a promising. It will provide good reputation from IT community either, as it believed will increase internet broadband connectivity in the country. Even if Wimax doesn't provide voice connection in it's initial offer, provider will get a lot of subscription from broadband subscriber, as it provide lower cost subscription and convenience compared to wired or Wi-fi. It's subscriber will evolving as the result of higher internet literacy.
Wednesday, October 24, 2007
New Cellular Operator will Start Operating
New Operator has been operating : 3, Ceria, Smart, and soon NTS, will they success selling their number ? We should analyze that thoroughly.
At the first era of cellular era, which can be called cellular establishment era (not really initial, there was komselindo era prior to this era), there were 3 big operator : Telkomsel, Satelindo and XL, and currently they are the big three. As they have already had loyal subscriber and nation wide coverage, they enjoy their role, but still do innovation to keep their old subscriber as well as attract new subscriber. They also reduce their tariff to compete with all other operators.
Then Esia, Flexi, Star-One and Fren are started. They offer low tariff to attract new subscriber, and some offer cheap mobile phone bundled with their service, and it succeed, except Star-One which doesn't look serious to advertise it's service and in expanding it's network. Now Esia, Flexi and Fren are built Nationally and continuously expanding. I called it cheap tariff era.
As new operator were succeed in attracting subscribers and get big profit, it's attract the other enterpreneur to built their own operator brand : Ceria by Sampoerna who has a lot of money after selling it's own Cigarette company, Smart by Sinarmas which is an old conglomerate has various business in Indonesia, 3 by Hutchison from Hongkong, and NTS which owned by Saudi's company, Maxis Malaysia and Lippo.
It should be quite difficult for those four operator to attract subscribers. Good service and low tariff has been implemented by established operator, and they offer big bonus, and they are so famous. For new subscriber, most of them will buy the established service, rather that the new four. Only tiny part of them will buy their service. Beside, the new four doesn't offer something difference : low tariff (not the lowest), good service (really ?).
For most of subscriber, the decision of buying or not buying mostly will be based on the initial price of service subscription, including the mobile phone price. This is because the reluctance for persons to discard previous number. If the new operator is only offer what look similar with other operator, no body will consider it seriously.
The marketing team should work hard to find an innovative strategy, work together with mobile phone manufacturer to offer bundled service with mobile phone, or even give away a mobile phone, so people will come and buy the service. Next, they can go to established operator to get a cheap inter-connection.
The point is, it is important that the operator get as much as subscriber as they can, then they will only have to collect money from subscriber.
At the first era of cellular era, which can be called cellular establishment era (not really initial, there was komselindo era prior to this era), there were 3 big operator : Telkomsel, Satelindo and XL, and currently they are the big three. As they have already had loyal subscriber and nation wide coverage, they enjoy their role, but still do innovation to keep their old subscriber as well as attract new subscriber. They also reduce their tariff to compete with all other operators.
Then Esia, Flexi, Star-One and Fren are started. They offer low tariff to attract new subscriber, and some offer cheap mobile phone bundled with their service, and it succeed, except Star-One which doesn't look serious to advertise it's service and in expanding it's network. Now Esia, Flexi and Fren are built Nationally and continuously expanding. I called it cheap tariff era.
As new operator were succeed in attracting subscribers and get big profit, it's attract the other enterpreneur to built their own operator brand : Ceria by Sampoerna who has a lot of money after selling it's own Cigarette company, Smart by Sinarmas which is an old conglomerate has various business in Indonesia, 3 by Hutchison from Hongkong, and NTS which owned by Saudi's company, Maxis Malaysia and Lippo.
It should be quite difficult for those four operator to attract subscribers. Good service and low tariff has been implemented by established operator, and they offer big bonus, and they are so famous. For new subscriber, most of them will buy the established service, rather that the new four. Only tiny part of them will buy their service. Beside, the new four doesn't offer something difference : low tariff (not the lowest), good service (really ?).
For most of subscriber, the decision of buying or not buying mostly will be based on the initial price of service subscription, including the mobile phone price. This is because the reluctance for persons to discard previous number. If the new operator is only offer what look similar with other operator, no body will consider it seriously.
The marketing team should work hard to find an innovative strategy, work together with mobile phone manufacturer to offer bundled service with mobile phone, or even give away a mobile phone, so people will come and buy the service. Next, they can go to established operator to get a cheap inter-connection.
The point is, it is important that the operator get as much as subscriber as they can, then they will only have to collect money from subscriber.
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