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Business Model

Many operators are now re-evaluating their strategy and position in the new value chain in order not to miss out on new opportunities in an Information and Communications Technology (ICT) society. Operators in general are focused on two parts, the first of which is providing ICT services for business users and the second of which is providing Multi-Play services for individual consumers. This is illustrated in the following figure:

In the consumer market, operators will go beyond providing traditional services such as voice and broadband access, to offering IPTV, Portal, Payment, and Marketplace services. There will now be a need for operators to cooperate with various partners including media groups, schools, banks, and content providers. Thus, the operator will not only serve as a network service provider but also an integrated service provider. In addition, their business model will change from one that is focused on getting the "share of communication minutes" to one that is focused on getting the "share of total consumer spending".

In the business market, operators will expand the range of services that they provide, from "only service products" to "service solutions", especially in terms of IT services, meaning that operators will now need to understand the customer's business process and offer the right service solution accordingly. The operator will then become not only a product provider but also a solution provider or system integrator. Consequently, their business model will change from one that "offers leased line to businesses" to one that "helps optimize the business process".