Download
entrepreneurial strategies for stimulating telecommunications market development david n townsend n.
Skip this Video
Loading SlideShow in 5 Seconds..
Entrepreneurial Strategies for Stimulating Telecommunications Market Development David N. Townsend PowerPoint Presentation
Download Presentation
Entrepreneurial Strategies for Stimulating Telecommunications Market Development David N. Townsend

Entrepreneurial Strategies for Stimulating Telecommunications Market Development David N. Townsend

328 Views Download Presentation
Download Presentation

Entrepreneurial Strategies for Stimulating Telecommunications Market Development David N. Townsend

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. CoE/ARB ITU/BDT & CTO Workshop on Universal Service Policies and Funding Sana’a, Yemen, 07-09 Oct 2003 Entrepreneurial Strategies for Stimulating Telecommunications Market Development David N. Townsend

  2. Entrepreneurial Strategies for Market Development Background • Traditional PTT approach to telephone service: • Monopoly, state-owned telephone utility • Telephone service seen as a public responsibility • Extend infrastructure, service according to national budget, political priorities • Prohibit competition, on the assumption that it will drain revenues from the public operator

  3. Entrepreneurial Strategies for Market Development Background • Theory and objectives of liberalisation: • Economic, market incentives will promote faster, more efficient infrastructure and service development • Private investors have greater incentive, insight to serve customer demand • Experience with market-based businesses will benefit economy in general • Universal service public policies can complement private market initiatives

  4. Home, business Entrepreneurial Strategies for Market Development Infrastructure vs. Service Public payphone Private access PTT

  5. Entrepreneurial Strategies for Market Development Liberalised, Competitive Infrastructure PTT SNO,Mobile

  6. Entrepreneurial Strategies for Market Development Public Service Extension, Competition Internet Cafe Internet Service Provider Public telecentre Multipurpose Community Telecentre PTT

  7. Entrepreneurial Strategies for Market Development Public Service Extension Options • General Concept of Resale • Subscribers to basic telephone network services sell excess available usage/capacity to the public • Resale of wholesale (bulk) service, as well as retail, usage-based services • Fills gaps in available network capacity, economic demand (customers who cannot afford monthly rental, e.g.) • Benefits telephone operator, reseller, and customers (as well as economy)

  8. Entrepreneurial Strategies for Market Development Public Service Extension Options • Public pay telephone service • PTT provided: Often low quality, poorly maintained, limited availability • Competitive pay phone services: • Business incentive to provide reliable service • Customers willing to pay premium price • New technologies • Outside investment

  9. Entrepreneurial Strategies for Market Development Public Service Extension Options • Phone Cards • Franchise relationship with public telephone operator • Public demand for convenience, flexibility: • Pre-paid pricing is very popular, for both low income and upper income customers • = Willingness to pay premium prices • = Profitable market, competitive potential • Commercial tie-ins, advertising

  10. Entrepreneurial Strategies for Market Development Public Service Extension Options • Internet Service Providers • Capital infrastructure investment and technical expertise required • Not always within PTT’s ability • Competition has produced fast development, innovation, affordable pricing • Links with computer, software industries; also data network competition • Issues of VoIP, backbone pricing, competitive fairness

  11. Entrepreneurial Strategies for Market Development Public Service Extension Options • Internet Cafés • Public access to Internet services • Web, e-mail, chat, file transfer, etc. • Assistance for unfamiliar customers • Other services: fax, word processing • Connect to ISP and/or telephone company at bulk capacity prices • Charge retail usage prices, typically higher than individual Internet access charges • Require technical expertise, investment

  12. Entrepreneurial Strategies for Market Development Public Service Extension Options • Public “Telecentres” • Public access to private telephone services • Senegal, Gambia experience • Multipurpose Community Telecentres (MCTs): • Combine public telecentre and Internet Café concepts