Business Model - Diversification Strategy for Electronic Media Conglomerate
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Transcript of Business Model - Diversification Strategy for Electronic Media Conglomerate
CONCEPT PROPOSAL
MEDIA COMPANY LED- MVNO
Diversification Strategy for Electronic Media Conglomerate – Provision of Converged Services (ICT & Broadcasting Services) in
Pakistan
Hypothesis & Business Proposition Hypothesis
“Taking the advantage of the robust Information and Communication Technologies (ICT) Infrastructure and enabling provisions of IT & Telecom Sector De-Regulation Policies in Pakistan; Electronic Media Conglomerate are better positioned to provide the Converged Services (voice, data, broadcasting and other ICT enabled services) than that of Telecom Operators”
Potential Benefits: Electronic Media Conglomerates should diversify their business for provision of converged services for:
Sustainability through diversification and strategic alliances; Improved performances in terms of revenues and market value; Competitive edge through strategic positioning of organization based on
opportunities in business environment and alignment of resources (“Capabilities-organizational ability to mobilize resources” and “Social Capital-leverage social networks to attract strategic alliances”)
Enabling Provisions of Policies of De-Regulated IT & Telecom Sector for Electronic Media Conglomerates
Electronic Media Company may provide Telecommunication Services as Mobile Virtual Network Operator (MVNO) as envisioned in De-Regulation Policy and Framework devised by Pakistan Telecommunication Authority;
Electronic Media Company may provide Branch-less Banking financial services:
In the capacity of Third Part Service Provider (TPSP) as per the GoP Policy on Mobile Banking and State Bank Regulations OR
By acquiring a Bank in line with Telecom Operators strategy to provide services with full control in current Bank-Led Branchless Banking Model as per State Bank of Pakistan (SBP) Regulations;
Based on strength to project the idea/service more effectively than any other player; Electronic Media may provide IT & IT Enabled Services (ITeS) and can provide multiple services within Pakistan and abroad. Pakistan Software Export Board and Ministry of Commerce are encouraging and facilitating the Private Sector initiatives to increase the trade in services
Why Electronic Media Conglomerates are better positioned than Telecom Operators?
Most of the dominant telecom operators in Pakistan are 100% foreign equity based companies thereby attracting restrictions in The PEMRA Ordinance, 2002.
Only PTCL has IPTV license because of the fact that majority shares are still with GoP and Public at large;
Operators have concentrated efforts towards the banking sector and might affect their core business in the long run
“Light touch” is the basic principle of Telecom and IT sector regulations in which all telecom operators have flourished and Corporate Governance is designed accordingly.
Telecom operators depends heavily on Electronic Media for advertisement of the services/packages/applications to influence clients’ perception and huge budget is being spent on this account.
Brand recognition and power is less as compared to bid media conglomerates Telecom operators’ lack “Local Content” and rely more on “YouTube and
Facebook etc.” and has very limited control over the content management. Rather they have to advertise over these on-line platforms for clients’ retention and attraction.
Phased Strategic Road Map• Step-I: Provision of enabling platform of “Professional and User-
Generated Content Aggregation” in the capacity of Content Aggregator; •
• Step-II: Provision of enabling platform for telecom network agnostic ICT enabled services such as “E-Health”, “E-Education”, “IPTV”, “branchless/mobile banking” “services in the capacity of Third Party Service Providers (TPSP);
•
• Step-III: Depending upon level of aggressiveness and confidence in internal capabilities of the EMC; following two strategies may be adopted:– Provision of voice, video and data services on mobile devices (mobiles/tablets)
through SIMs with their own brand in the capacity of Mobile Virtual Network Operator (MVNO); OR
– Provision of converged services in the capacity of Mobile Network Operator (MNO) by “acquiring the license and spectrum in upcoming auction of 3G spectrum” and “Infrastructure Sharing Agreements with existing operators”
New Model for Telecom Operators- Need to identify “Weakest Link”
Business Model-Electronic Media Conglomerates
TPSPContent & ICT Enabled Value Added Services
& Applications
Broadcasting/IPTV
Single Media (ICT Infrastructure) of Telecom Operators