Master Thesis by Akhmad Hadian Lukita
Case study: Cooperative distribution of Wireless FWA-CDMA-based Telecommunications service with Small and Medium-size enterprises.
Good news for Wifone industry! A vibrant idea comes across Akhmad Hadian Lukita suggesting better distribution system and more convenient service towards the customers. Within business perspective, this idea applies considerably low-cost but seriously on turnover. A mobile kiosk is set to “get the ball” with 19 months investment return period.
The level of telephone penetration per capita (teledensity) in Indonesia remains low with just 3.3% or seven millions out of 210 million Indonesians. A quarterly report from PT. Telkom (2001) showed that these numbers only represented six large cities: Jakarta, Surabaya, Semarang, Medan, and Denpasar. In this circumstance, many people are still in high-demand for telephone facility.
To increase this teledensity, a major consideration appears and underlines US$1000 to construct an SST (saluran sambung tetap /fixed line unit). What a big numbers to spend! Data from PT Telkom shows that US$ 2, 1 is needed to increase only 1% of national teledensity. And considering this large sum of investment required, Ahmad Hadian Lukita suggests that telephone operator should prioritize its developments in areas with better return of investments.
In his research, Lukita attempts to discover a business formula to increase the interest of small and medium enterprise to take part in this telecommunication industry. Researcher believes that by optimizing the community to be self-employed and actively participating in providing cellular services in their own communities is the appropriate solution to increase teledensity.
However, Lukita limits his work to CDMA (Code Division Multiple Access) service providers with FWA-CDMA network configuration, located in Bandung. The technology itself consists of Mobile Switching Centre (MSC), Base Station Controller (BSC), and Base Transceiver Station (BTS). MSC is an instrument that serves as switching centre that connects directly with BSC. Signal is then transmitted to the BTS Using a media Approach Link. Media Approach link can be a fibre optic network or a radio link. From this BTS, signal is connected with Customer Terminal (i.e. cellular phones or stationary phones).
The following is the structure proposed by researcher to optimize distribution channel for mobile telecommunications service:
Distribution Channel Structure
Therefore, this research formulates a Mobile Telecommunication Kiosk as a suggested solution for small and medium enterprise to join this business.
By using CDMA phones, which apply relatively small amount of investments for hardware and software, the researcher strongly argues that a mobile kiosk can be an alternative business prospect. With relatively similar concept as conventional kiosk selling voucher/provide telephony service, mobile kiosk attempts to “get the ball.” It is designed to actively pursue potential customer rather than passively waiting customer as employed by usual kiosks.
The following is the schematic picture of hardware requirements of mobile kiosk:
Schematic Picture of Mobile Kiosk
To run a mobile kiosk, the investment of equipments would approximately cost IDR 3, 4 million. The business analysis from the researcher shows a predicted gross income at IDR 2, 5 million with a 70:30 sharing allocation (70 for service operator and 30 for the small/medium enterprise) while the return of investment can be obtained within 19 months.
According to researcher, a mutual symbiosis between operators, small and medium enterprises, as well as the community can be developed by employing this suggested proposal. A partnership method that involves operators, small & medium enterprises would result an increase in teledensity rate, something that would be valuable for the community.
For detailed thesis titled Business Innovation for small and medium enterprises’ empowerment, Case study: Cooperative distribution of Wireless FWA-CDMA-based Telecommunications service with Small and Medium-size enterprises, please contact: http://library.sbm.itb.ac.id or visit SBM – ITB Library directly at:
Jalan Gelap Nyawang No.1 Bandung, 40132 – Tel/Fax: 022-2504308/2504897
Filed under: technology
