How to overcome the Threat Posed by Web 2.0? Monetizing LTE/WiMax Next Generation Strategies for Telecommunication

摘要

Web 2.0 is a viral phenomenon built on collaboration, interaction and personalization. Innovative Web 2.0rncompanies like Google, leverage this viral environment to expand and unleash the capabilities ofrndevelopers to create customer centric services. Similar to the composers of world class music whornorchestrate different tunes, 3rd party developers mash up APIs and blend enablers to create multiplernservices that satisfy 24/7 requirements of all the segments of users while enriching quality of life. At thernsame time users become co-creators by creatively developing “DIY” type services on the fly. The Web 2.0rnservice creation framework, with its ease of use, low or free of cost and its collaborative nature, challengernthe “Walled Garden” style of service creation practiced by Telcos. Unprecedented growth of Web 2.0, itsrnpopularity among Millennial or Net Generation and hijacking of telco bandwidth due to high usage, pose arnthreat to the long term sustainability of traditional Telcos. Telcos need to follow a new business model torntackle these issues while transforming and transitioning to Telco 2.0/4G environment.rnThis research paper recommends a universal, cooperative business model to achieve Co-excellence inrnterms of customer retention, Growth in ARPU, Market Share, Profitability and Valuation and build arnharmonious eco system. The four concepts introduce in the study are;rn1. Co-Existence of legacy and NGN will help to safeguard the investments already committed by the network while achievingrnhigh ROIC and NPV.rn2. Co-creation – Where the customers are empowered to create personalize experience intuitively.rn3. Co-opinionate – redefine the target buyer group that act as influences, carriers of word of mouth and viral marketing, enticingrnother buyer groups and nano segments.rn4. Co-habitation – depict the strategic partnerships forged among the operator, 3rd party content / application providers andrnmanaged service / outsourcing providers.rnSeveral “A day in life” scenarios ,use cases depicting different market segments are presented to envisionrnthe future as a precursor to the business model. The 4-Co business model is fully supported and justifiedrnby concepts presented by management gurus such as “The New Age of Innovation” by Prahalad, “BluernOcean Strategy” of Kim and “Anywhere” of Green.rnThe model presents a holistic strategy to transition to Telco 2.0/4G overcoming the threat posed by Webrn2.0 while opening up a strategy pathway of cooperation with Web 2.0.