Reality Technology and Business
Technology intended to improve efficiency, reduce costs, and increase output (output). However, it was not always consistent with reality. Remember the Internet bubble broke out, construction of aircraft factories that fail, the failure of some 3G implementation, and many others. <Is again a lot still and 3G, the implementation of some of the failures fail, the aircraft manufacturer Internet development, the bubble broke out with the recall is still reality. line was not always that hope, however, (output). output increase costs, reduce efficiency, can be for>
Viewed from the side of technological development, the things above is actually a technological development that is interesting, but the business was a different outcome. Many factors that determine the successful implementation of technology, ranging from cultural and community preparedness to packaging these technologies in communicating to the market.
Mobile telecommunications sector is one area that technology develops very fast. If we consider the presence of services offered by the operator, the birth of many new services very quickly. While if we see the emergence of cell phones on the market, the average mobile phone market leaders (phone) issued a new mobile phone 8-20 every year.
That is, how quickly it happened technological innovation. One of the technological developments in the mobile world is a messaging technology (sending messages) from SMS (short message service), EMS (enhanced message service), and is now being heavily promoted its mobile business is MMS (multimedia message service). The presence of MMS technology can be considered as a messaging technology revolution because of the conditions that initially only be able to send text messages and pictures or a simple ring tones, now also can be used to send images, moving images, ring tones and more complex. This should respond with a higher creativity.
MMS technology is expected to eventually replace SMS. However, it looks like it will happen when cheap fares are approaching MMS SMS tariffs, mobile devices also are affordable for the middle class (ranging from USD 1.5 million), and inter-operator can be done. If the total of MMS traffic in Indonesia (which is provided by two operators) ranges from 20,000 MMS per day, it is desirable to encourage the use of strategies MMS to be able to compensate for the SMS traffic is more than 15 million per day.
MMS traffic on the current condition in which MMS tariffs are still free, so it’s very possible to be more down when subjected to tariffs. The data reported by Ovum, a consulting firm and the survey, estimated that by 2006 the number of SMS users the world will begin to decline (from about 1000 billion per year), while the MMS users will rise sharply (range from 350 billion messages per year) in the same. And, about 3-4 years later it is possible to have the same amount. However, if that will happen in Indonesia in the range of time?
One proposed strategy to encourage an increase in revenue through the MMS service is to deliver a variety of applications that can trigger the use of MMS, so we will have the justification that the implementation of MMS is not simply to maintain the prestige it which in turn can make us a victim of technology. But, the implementation of this technology is worth it because it has high demands.
Currently we are able to get various phone to MMS with a range price of Rp 1.5 million, and it seems the mobile phone industry and the industries that are categorized as information and communications technologies have achieved economies of scale so that costs incurred will be more affordable as time progress. Yet strangely fixed phone rates continue to rise. Thus, it is hoped will soon be available more affordable MMS mobile public. MMS presence along with several new facilities we can make applications more attractive.
There are many applications that can be built using the MMS platform, among other telemetry applications. If previously we only get the information in the form of text when using SMS as a medium, such as engine temperature data, can now also get the information in the form of a graph of temperature changes in a certain period.
MMS can also be used for monitoring applications. One of the applications developed by local companies Jaya I-net is combining with CCTV cameras. If the camera is installed at home, daycare, or highway, to connect to a server in the form of a simple computer, so whenever you can find the home state information, the condition a child in daycare, as well as traffic conditions highway is not only the form of text information, but also pictures or photos that will be sent automatically to the phone via MMS. And if you’re in the office, we can access the server through the Internet network.
Current communication technologies also are emerging, or Wireless Fidelity technology that many people often known as Wireless LAN. In Indonesia, maybe it just started developing with the emergence of several locations or that access is often called the Hot Spot which then combined with previous cellular technologies, namely GPRS. Thus, the area outside the Hot Spot of people will use GPRS to access their Internet access, but will automatically switch to W-LAN connection into the Hot Spot so that offers speeds up to 512 Kbps.
The question now is whether the construction of Hot Spots in many places have a beneficial economic value and can offer new services that encourage the growth of profit? Currently it’s time for us to not only consider ARPU (average revenue per user) to determine the operator’s performance, but more appropriate if we consider AMPU (average margin per user) because it is possible that the ARPU was up, but after deducting the necessary expenses to deliver these services cost was greater than the revenue earned.
And vice versa, if ARPU would fall if the company had a loss? Not necessarily! Because of possible explosion due to prepaid card users who contribute lower revenue per user. And, because there are many, it will affect the average results, in which a large number pembaginya when the presence of high technology, cost of implementation to be down.
Thus, although ARPU is low, but for still larger than the average cost required, the operator will still profit. Therefore, the goal is not simply an increase ARPU, for example by way of presenting a variety of new services, but also to note whether the cost of implementing these services commensurate with its revenue increase. Apparently the presence of a variety of data services is expected to encourage increased ARPU, does not guarantee their profits increase.
Therefore, many new technologies that present requires precision in choosing which technology can be absorbed by the market. If not, we will only remain a soft technology market as foreign players and we do not economically benefit from it.
If the assumed investment cost for the MMS service for 1 million U.S. dollars, if the rate of return on capital for 5 years with rates USD 350, the required traffic each day about 15,000 MMS. So, for this technology can be absorbed by the market, the MMS should be given as SMS tariffs and focus is done by encouraging the growth of traffic through the application one. A large number of mobile phone MMS to an affordable price many people, especially the biggest user SMS / MMS is a young group, the number of 15,000 per day is a very small amount. Thus, the MMS will soon be able to replace SMS as the biggest revenue producer for the service after the voice service.
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