* SingTel - be a multimedia player (betting on content, apps and local/customized services)
* StarHub - betting on NG-NBN. Not given much info but I guess the focus right now is still in bundling (Hubbing) strategy which is one of the best success stories in the market.
* M1 - Going to be a triple play player. In essence follow bundling option.
In my humble opinion, the options are not very strategic but more tactical. When all players in the market opt for similar plans and without a tangible or intangible differentiation among themselves the outcome would be more likely on the 'cost differentiation'. I am sure none of the stakeholders would like to see eroding margins and a 'price war' in the small local market.
I believe there is no silver bullet for the challenges, but if I've a place in the board ;), I'd love to hear what are the strategies/priorities for next few years. While there is substantial difference between the three operators, the commonality is mobile (which is contributing the most to the bottom line), and I'd say below are the top 8 challenges/priorities for the CEO's,
1. Google, Apple, Facebook bypassing Ops from value chain
2. Consistent Strategy/goals with organization values
3. Excellence in Execution
4. Customer Loyalty/Retention
5. Stimulating Innovation/Creativity/Enabling Entrepreneurship
6. Maintain Profit
7. Evaluate and prepare funding for Future technologies (LTE, 4G etc)
8. Recruit/retain skilled workforce/management
1. Google, Apple, Facebook bypassing Ops from value chain.
With more and more innovative services coming from these giants, I started to believe that one day the business model as we know today will shift radically. We've seen how Apple changed the game with their iPhone and I strongly believe this is only the beginning.
* Apple has facetime which is developed based on existing open standards but the key is execution and packaging. Apple managed to succeed where TELCO's failed with "Video Call". I don't remember I ever used 3G video call before though it's more closely integrated with my hand phone. Apple can enable the 'voice' addition to the Facetime and they have plans to release it to the public. That's when things will be more interesting as we can expect third party app's integrating with Windows Laptops & Potentially android :). Result will be less voice minutes in mobile networks (assuming people will use VoIP with SIP be it video or without video)
* E-sim, softsim coming in the next few releases of iPhone (More details in my previous post here)
* Android launching with NFC & trying to get a pie from Payment market. This will seriously impact the hopes of operators "m-commerce" services. If I've a choice to buy using Google checkout & credit card I'd definitely go for it rather than asking my mobile operator to charge as part of my monthly bill. As of now I've problems understanding the operator bill with unnecessary details and missing necessary details.
2. Consistent Strategy/goals with organization values
3. Excellence in Execution
No need to explain but we've seen with MIO TV, Starhub new billing system & M1 fiber plans. All our telco's seems to improve a lot on the execution. I am sure they've wonderful management, skilled engineers & great marketing folks but somehow all these different parties couldn't do what Apple, Facebook or Google did.
4. Customer Loyalty/Retention
Honestly this is one area where our operators are doing a good job in 'numbers' perspective but failed to meet the expectations due to various reasons. The first touch point which is the shops itself needs lots of improvement. Today's Customer is technically savvy and they knows the technologies very well. However our service departments are relatively under developed and still consists of mostly entry level service staff. Thanks to outsourcing(if it's done proper ways I don't see an issue but most of the times service providers outsource because it's CHEAP), sometimes the officer doesn't even understand what we are talking about. Need lot of improvement overall in this aspect
5. Stimulating Innovation/Creativity/Enabling Entrepreneurship
Some how we end up became the followers. We've Telephone just after four years of it's invention and our incumbent boasts over 125 years of history and one of the largest telco in the world. However when we look in to the contribution portion there is hardly anything to be proud of. Is it because organizations tend to focus on $ or other reasons. I don't know but I wish our telco's too cultivate an environment where we can show to the world that we've got talent. Singapore being one of the most advanced nation in terms of infra, coupled with savvy customers can be an unique nation which can be used as a technology hub. We can quickly introduce something with relatively low investment or do advanced technology trials. This can be bring lot of 'value add' to the nation as well as company. IP plays a critical role in knowledge society.
6. Maintain Profit
Nil. I've nothing much to say here as the leaders knows very much about this.
7. Evaluate and prepare funding for Future technologies (LTE, 4G etc)
Same as in item no.5, but this poses a different challenge to the CEO's. They need to invest lots of money to buy 'spectrum', invest in networks and people. But the bottom line of LTE or 4G is it offers higher speed to end customers with a relatively cheap prices (i.e. the cost to serve 10Mbps is cheaper with the LTE
8. Recruit/retain skilled workforce/management
I remember sometime back SIA used to be preferred employer and even people like to join technology firms. but today the focus seems to be going to Financial sector which means the best of breed is no longer going to be in technology sector anymore. Only Philips is in the top 10 and SingTel managed to get 85th position and the only telco in top 100(Link Here). If Operator need to head on or be in a respectable position at negotiation table they need to have best brains working with them.
In conclusion, the road ahead going to be very bumpy and only the toughest and smartest will reap the benefits while the rest will remain as the 'dumb pipes' providers. http://singapores100.com/2010-rankings/
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