dinamika persaingan industri jasa telekomunikasi

Dinamika Persaingan Industri Telekomunikasi

Kuliah Umum

Mas Wigrantoro Roes SetiyadiKetua Masyarakat Telematika Indonesia (MASTEL)

[email protected]

Jakarta, 31 Oktober 2007

mailto:[email protected]

04/08/23 maswig for UI 2

Profile MasWig

Pendidikan

• Sarjana Teknik Informatika, Univesitas Budi Luhur (d/h STMIK Budi Luhur), 1992

• Sarjana Ekonomi, Universitas Indonesia, 1996

• Master in Public Policy, National University of Singapore, 2000

• Magister Sains Akuntansi, Universitas Indonesia, 2002

• Kandidat Doktor, Program Studi Ilmu Manajemen, PPS-FEUI

Profesi / Jabatan

• Wakil Direktur Utama, PT Pratama Jaringan Nusantara

• Direktur Institute for Technology and Economic Policy Studies <<INSTEPS>>

• Ketua MASTEL

• Dosen Pasca Sarjana:– Universitas Prof. Dr. Moestopo (Beragama): Perkembangan TI & Komunikasi

– Universitas Budi Luhur: Ethics & Cyberlaws; Strategi Sistem Informasi / TI


Agenda

• Scope of Telecommunication Discourse

• Current business environment

• Industry Competitive Analysis

• Competitive Dynamics

• Strategy to Win Competition

• Q & A


Lingkup Kajian Telekomunikasi

Teknologi HukumKebijakan &

RegulasiImplikasi

SosialEkonomi

Jaringan

MediaTransmisi

Transmiter

Receiver

Protokol

Signaling

Modulasi

VoIP

Interkoneksi

Conduct

Struktur

Investasi

Kinerja

NilaiEkonomi

Layanan

PP.

UU

Dll.

Interkoneksi

Standar

BHP

Tarif

USO

Lisensi Internasional

Dll.

Perilaku

Manfaat

Teledensitas

Digital Divide

Dll.

VAS

LandingRight

Mobilitas

Telekomunikasi

Dll.

PerMen

Perda.

KepDirjen

Dll.


• Threats and opportunities

• Shifts in consumers behavior

The Operators business environment


Business dynamic that impact operators business strategy

Confusion in both media and telecom markets


Changes in consumer behavior• Always on

Call Forwarding -> Mobile -> Internet -> Mobile TV• Presence based services

- How to be reachable• Mobility

- Roaming, WiFi handover, Service Portability• Service usage

- e/M-commerce, data, multimedia• Payment models changing

- Point Of Sales, Realtime Charging, Prepaid Combinations


The service ecosystems…• Consumers …

– Wants: simplicity, usability and access to the “Net” and cool things.– Consumption is rapid and instant– Access is just expected wherever I am

• Application (service) providers …– Communication network is simple the channel to reach customers.– Target to keep customers always on, regardless of network, location or

terminal.– Advertising is a vital source of revenues.

• Operators …– Keep customer loyal and increase service usage, ARPU.– Consolidation of production environments to lower OPEX in an

increasing competitive market.– The true challenge is to move towards a common strategy for service

delivery towards; Broadband, Fixed and Mobile networks.


Convergence from a users perspective

Terminal: The terminal at hand present the service I want to access.

Access: Best possible network resource is engaged to access the service.

Service: Based on the service type, bandwith, method of presentation set the rules how to present the service

Subscription, Authentication, Accounting…


Technology shift and uncertainties

• Web 2.0– True personalization impacts the expectation of

communication– RSS and bloggs are used over any media– Communities and IM replace traditional communications– New business models (mainly advertising driven)

• Telco– An all IP-based world will create new business models– New communication providers change the business models– The business model is threatening traditional telecoms– For many subscribers, price combined with presence is

currently more important than quality.


“Coverage is king” regardless of access technology


Telco Business trends

Convergence aspects• Terminal – Multi network access, multimedia• Network – Converged network for any service• Services – Mashups, service Portability• Access – Core network must support different access

methods

Convergence is more than an aggregated bill• Combination of services that adds value to the customer• Operational synergies• New market opportunities• Play higher in the value chain


• Captive Market• Relatively homogeneous portfolio• Thick margin• Sole player• Supporting roles• Passive business approach

• Competitive market• Relatively heterogeneous product• Thin margin•Multi players •Creative partnership• Leading roles• Proactive business developer

Telco Business Challenge


Short term issues and key business objectives

Short term issues• Core production systems reaches its “end of life”• Long process to introduce changes customizations in today’s

production environment.• Different service platforms for different networks, Fixed,

Mobile and IP networks

Key objective in business decisions• Supports and enhance core business and then operators

competitive edge.• Supports migration towards NGN architecture• Allow for flexible and open service development environment• Having the ability to introduce new service rapidly


Alternative revenue stream’s impact on my businessAdvertising and new business models will constantly impact operator’s

traditional business model.

Example: Starbucks – iPhone – iTune concept will compete with traditional

download bus


Structure - Conduct - Performance

• Industry Competitive Analysis


Industry Structure

Number of competing firmsHomogeneity of productCost of entry and exit

Firm Conduct

Price takingProduct differentiationTacit CollusionExploiting market power

Performance

Firm Level: normal, below normal, above normal preferenceSociety, productive and allocative efficiency, level of employment, progress

The Structure Conduct Performance

Model (Barney, 2007)

S - C - P

Market Structure

The ways in which the structure of an industry react to, and reflect, the underlying influences of

technology and preferences


Types Industry Structure, Firm Conduct Option, Firm Performance, and Social Welfare Implications (Barney,2007)

Type of Industry

Industry Attributes ExampleFirm Conduct Option

Expected Firm Performance

Social Welfare Implcation

Perfect Competition

Large number of computing firm Homogenous products Low-cost entry and exit

Stock marketCrude oil

Price Taking Normal Social welfare maximal

Monopolistic Competition

Large number of computing firm Homogenous products Low-cost entry and exit

Tooth Paste Shampoo Golf ball Automobiles

Product Differentiation(see Chapter 8)

Above Normal Less than perfect competition

Oligopoly Small number of computing firm Homogenous or Heterogenous products Costly-entry and exit

U.S steel and autos in the 1950sU.S breakfast sereal

Collution(see Chapter 10)

Above Normal Less than monopolistic competition

Monopoly One firmCostly entry

Tooth Paste Shampoo

Product Differentiation

Above Normal Less than Oligopoly


INDUSTRY SEGMENT LEGAL STATUS OPERATOR(S)Kompetisi Indosat, Telkom, Esia

PUBLIC SWITCH Fix Wireline Duopoly Telkom, Batam-Bintan TelkomTELEPHONE NETWORK Fix Wireless Kompetisi Telkom, Indosat, Esia

DOMESTIC CDMA-450 Regional License Sampoerna Telekomunikasi

Mobile GSM KompetisiTelkomsel, Satelindo, Excelcom, NTS, 3

3G KompetisiTelkomsel, Satelindo, Excelcom, NTS, 3

CDMA Kompetisi Mobile-8, SmartLong Distance Monopoly Telkom

INFRASTRUCTURE TERRESTRIAL Kompetisi Semua OperatorSATELLITE Kompetisi Satelindo, PSN, CSM, Telkom

VALUE ADDED SERVICES Data Com, ISP, Payphone, etc. Competition Licensed operators(Network)SPECIAL NETWORK VSAT, Trunking Competetition Licensed operatorsPRIVATE NETWORK No Resale Any Private Companies

Telephone SwicthTransmission

MANUFACTURING Broadband Switch Competetition Any CompaniesCPE

SERVICES INTERNATIONAL GATEWAY

Indonesia Telco - Market Structure

Penyelenggara TelekomunikasiPelanggan kartu pra bayar menurut Operator Telekomunikasi pada Tanggal 25 Juli 2007

Sampoerna Telekomunikasi

Indonesia; 198.000; 0%

Telkom; 13.301.000; 15%

Indosat; 19.636.990; 22%

Telkomsel; 41.001.000; 47%

Bakrie Telecom; 1.997.127; 2%

Mobile-8; 2.175.731; 2%

XL; 9.743.245; 11%

Hutchinson; 1.057.338; 1%

Natrindo; 9.590; 0%

Sumber: Dirjen Postel


Competitive Dynamics

• Actions - Reactions• Strategic Moves• Make profit > Competitors• Sustainable Competitive

Advantage


Telco Business Character

TECHNOLOGY

REGULATORY

FUND

BUSINESS STRATEGY

Adopted from: Rudiantara, 2003


Network Externalities

• the value of a unit of the good increases with the number of units sold

• the value of a unit of the good increases with the expected number of units to be sold

• externalities arise in the act of exchanging assets or goods.

• externalities may arise in the array of vertically related services that compose a financial transaction.


The Five Force Model of Environmental

Level of threatin an industry

Threat of Supplier

Threat of Entry Threat of rivalry

Threat of Substitutes

Threat of Buyer


What do we want to be?Not, What do we want to do?

CompetitiveAdvantage

Distinctive competence

Core competence

Profits above average regional countries.Adopted from Coff (1999) & Powell (2001).

Products and services better than country-competitors doAdopted from Ansoff (1965), Andrew (1971).

Resources create variety of products, gain higher revenue.Adopted from Prahalad & Hamel (1990).


Strategic decisionsStrategic decisions


Dynamics of Competition (1)

• Process of competition over time

• Erosion of competitive advantage– Changes in five forces– Competitors overcoming adverse forces

• Cycles of competitive response– Slow: long periods of established pattern of

competition– Fast: hyper competition, constant disequilibrium

and change


Dynamics of Competition (2)

• Implications of speed of competitive cycle:– Slow-moving - build and sustain competitive

advantages which are difficult to imitate– Fast-moving - advantage is temporary, disrupt

status quo, sequence of short-lived moves


Cycles of Competition

Exhibit 2.7

Source: Adapted with the permission of the Free Press, a Division of Simon & Schuster, from R.A. D’Aveni with Robert Gunther, Hyper – Competitive Rivalries: Competing in a Highly Dynamic Environment © 1994, 1995 by Richard A.D’Aveni, All rights resvered.


Competitive Strategy

• Industrial Organization (Outside In)

• Resource-based Theory (Inside Out)

• Austrian School (Hypercompetition)


The business idea

Exhibit II.i

Layers of the business environment


Defining the strategy

• Who is my prime customer target?– Business, Residential, Age group, ethnic groups…

• What network resources do I have that bring me competitive edge?– Single network operator or– Multiple network operator

• Prime services that must be protected?– Services with limited competition– Service that generate significant revenue– Service that prevent churn


Strategi Bisnis

Moves proaktif ungguli pesaing

Usaha bangun keunggulan daya saing

Strategi supply chain

management

Menanggapi perubahan

lingkungan politik, ekonomi dan

industriMenjangkau ekspansi Geografis

Kolaborasi, kemitraan,

aliansi strategik

Strategi Keuangan

Stra

tegi F

ungsio

nal

Strategi R&D

Strategi service/ Manufacturing

Strategi Pemasaran

Strategi SDM

Sumber: Thompson & Strickland (2003)

Menciptakan Nilai Bagi Konsumen

Membangun Strategi Bisnis

Dr. Albert Widjaja, FEUI, p. 8.


Telecommunication Value Chain

Consumer Electronic

Databases

Network Management

VAS

PTOs

Telecom Equipment

Software

Computer H/W

Internet

Equipment Supply Telecomm Infrastructure Service Development

Competitive Market Monopoly / Duopoly / Oligopoly Competitive Market

regulators will need to monitor the extent and significance ofcompetition in telecom markets, and take positive steps to reduce barriers to entry

wherever possible


Strategic Groups

Strategic groups are organisations within an industry with similar strategic characteristics, following similar strategies or competing on similar bases


Some characteristics for identifying strategic groups

Exhibit 2.8

Sources: Based on M.E. Porter, Competitive Strategy, Free Press, 1980; and J. McGee and H. Thomas, ‘Strategic groups: theory, research and taxonomy’, Strategic Management Journal, vol. 7, no. 2 (1986), pp. 141–160.


Identification of Strategic Groups (1)

• Scope of activities– Product/service diversity– Geographical coverage– Number of market segments served– Distribution channels



Identification of Strategic Groups (2)

• Resource commitment– Extent of branding– Marketing effort– Extent of vertical integration– Product/service quality– Technological position (leader, follower)– Size of organisation



Uses of Strategic Group Analysis

• To understand who are the most direct competitors of an organisation

• To establish the different bases of competitive rivalry within and between the strategic groups

• To assess if an organisation could move from one group to another

– Depends on barriers to entry• To identify opportunities and threats

– Changes in the macro-environment may create strategic space


Users

Mobile Network OperatorsDealers

ContractManufacturers

ComponentAnd Equipment

Suppliers

Mobile HandsetManufactures

MobileInfrastructureManufacturers

Content Providers

Mobile Application

Providers

Specialized ServicesBanking, Accounting,

Legal

Specialized Risk Capital

Cellular Industry Cluster


?

http://en.wikipedia.org/wiki/Image:BaseStationsBlorg.jpg


Q&A

Contact:Mas Wigrantoro Roes SetiyadiEmail: [email protected] Mobile: +6281876006URL: http://maswig.blogspot,com & http://maswigrs.wordpress.com

mailto:[email protected]

http://maswigrs.wordpress.com/

dinamika persaingan industri jasa telekomunikasi

Documents