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Research in Motion (RIM) INTERNATIONAL

MANAGEMENT
style Click to PRESENTATION edit Master subtitle

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Member of Group :

Andreas Yosafat

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How we organize the presentation

The Macro View of ICT world Research in Motion Discussing the Issue: Why Research in Motion choose Malaysia for production base The future of Mobile Communication

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The World of Mobile User

Macro view number of mobile phone user

The Huge Internet Market

The Internet Big Picture

W R D IN R E U A E A D P P LA IO S TIS S O L TE N T S G N O U T N TA TIC M arch 31, 2011
W orld R egions P opulatio n ( 2011 E st.) 1,037,524,058 3,879,740,877 816,426,346 216,258,843 347,394,870 597,283,165 35,426,995 6,930,055,154 In ternet U sers D 31, ec. 2000 4,514,400 114,304,000 105,096,093 3,284,800 108,096,800 18,068,919 7,620,480 360,985,492 In tern U et sers Latest D ata 118,609,620 922,329,554 476,213,935 68,553,666 272,066,000 215,939,400 21,293,830 2,095,006,005 P enetratio n (% P opulation) 11.4 % 23.8 % 58.3 % 31.7 % 78.3 % 36.2 % 60.1 % 30.2 % G row th 2000 2011 2,527.4 % 706.9 % 353.1 % 1,987.0 % 151.7 % 1,037.4 % 179.4 % 480.4 % U sers % of Table 5.7 % 44.0 % 22.7 % 3.3 % 13.0 % 10.3 % 1.0 % 100.0 %

A frica A sia E urope M iddle E ast N orth A erica m Latin A erica / m C arib. O ceania / A ustralia W R TO L O LD TA

N TE : (1) Internet U O S sage and W orld P opulation S tatistics are for M arch 31, 2011. (2) C K on each LIC w orld region nam for detailed regional usage inform e ation. (3) D ographic (P em opulation) num bers are based on data from the U C S ensu s B ureau . (4) Internet usage inform ation com from data published by es N ielsen O nline , by the International Telecom unications U m nion , by G , local R fK egulators and other reliable sources. (5) For definitions, disclaim and navigation help, please refer to the er, S S ite urfing G uide . (6) Inform ation in this site m be cited, giving the due credit to ay w w w .internetw orldstats.com C opyright 2001 - 2011, M atts M iniw arketing G roup. A rights reserved w ll orldw ide.

A Huge Market for Mobile Phone

Mobile Broadband Coverage

Smartphone Trends

Smartphone Features

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Smartphone Landscape
Gartner Says Worldwide Mobile Device Sales to End Users Reached 1.6 Billion Units in 2010; Smartphone Sales Grew 72 Percent in 2010 Egham, UK, February 9, 2011 Worldwide mobile device sales to end users totaled 1.6 billion units in 2010, a 31.8 percent increase from 2009 (see Table 1), according to Gartner, Inc. Smartphone sales to end users were up 72.1 percent from 2009 and accounted for 19 percent of total mobile communications device sales in 2010. "Strong smartphone sales in the fourth quarter of 2010 pushed Apple and Research In Motion (RIM) up in our 2010 worldwide ranking of mobile device manufacturers to the No. 5 and No. 4 positions, respectively, displacing Sony Ericsson and Motorola," said Carolina Milanesi, research vice president at Gartner. "Nokia and LG saw their market share erode in 2010 as they came under increasing pressure to refine their smartphone strategies."

2010 Company Nokia Samsung LG Electronics

Research In Motion Apple 47,451.6 46,598.3

Units 461,318.2 281,065.8 114,154.6

2010Market Share (%) 28.9 17.6 7.1

3.0 2.9

2009 Market Share Units (%) 440,881.6 36.4 235,772.0 19.5 121,972.1 10.1
34,346.6 24,889.7 2.8 2.1

2009

Worldwide Mobile Device Sales to End Users in 2010 (Thousands of Units) Source: Gartner (February 2011)

Sony Ericsson Motorola ZTE HTC Huawei Others Total

41,819.2 38,553.7 28,768.7 24,688.4 23,814.7 488,569.3 1,596,802.4

2.6 2.4 1.8 1.5 1.5 30.6 100.0

54,956.6 58,475.2 16,026.1 10,811.9 13,490.6 199,617.2 1,211,239.6

4.5 4.8 1.3 0.9 1.1 16.5 100.0

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Smartphone Landscape
Gartner Says Worldwide Mobile Device Sales to End Users Reached 1.6 Billion Units in 2010; Smartphone Sales Grew 72 Percent in 2010 Egham, UK, February 9, 2011 In the smartphone operating system (OS) market, ''Android grew 888.8 percent in 2010 and moved to the No. 2 position. Android sales in the fourth quarter of 2010 continued to be driven by broad availability of many high-end products from HTC (Desire range, Incredible and EVO), Samsung (Galaxy S) and Motorola (Droid X, Droid 2). Symbians market share dropped further in the fourth quarter of 2010 to 32.6 percent or 32.6 million units. This allowed Android to overtake Nokia's Symbian unit sales during the fourth quarter of 2010. However, the Symbian OS is also used by Fujitsu and Sharp as well as in legacy products from Sony Ericsson and Samsung. This aggregated volume kept Symbian slightly ahead of Android, said Ms. Cozza.

2010 Company Symbian Android Research In Motion iOS Microsoft Other Oss Total Units 111,576.7 67,224.5 47,451.6 46,598.3 12,378.2 11417.4 296,646.6 2010 Market Share (%) 37.6 22.7 16.0 15.7 4.2 3.8 100.0

2009 Units 80,878.3 6,798.4 34,346.6 24,889.7 15,031.0 10432.1 172,376.1 2009 Market Share (%) 46.9 3.9 19.9 14.4 8.7 6.1 100.0

Worldwide Smartphone Sales to End Users by Operating System in 2010 (Thousands of Units) Source: Gartner (February 2011)

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Smartphone Landscape
Gartner Says Android to Command Nearly Half of Worldwide Smartphone Operating System Market by Year-End 2012 Egham, UK, April7, 2011 Worldwide smartphone sales will reach 468 million units in 2011, a 57.7 percent increase from 2010, according to Gartner Inc. By the end of 2011, Android will move to become the most popular operating system (OS) worldwide and will build on its strength to account for 49 percent of the smartphone market by 2012 (see Table 1).
OS Symbian Market Share (%) 2010 111,577 37.6 2011 89,930 19.2 2012 32,666 5.2 2015 661 0.1

Android
Market Share (%)

67,225
22.7

179,873
38.5

310,088
49.2

539,318
48.8

Research In Motion
Market Share (%)

47,452
16.0

62,600
13.4

79,335
12.6

122,864
11.1

iOS
Market Share (%) Microsoft Market Share (%) Other Operating Systems Market Share (%) Total Market

46,598
15.7 12,378 4.2 11,417.4 3.8 296,647

90,560
19.4 26,346 5.6 18,392.3 3.9 467,701

118,848
18.9 68,156 10.8 21,383.7 3.4 630,476

189,924
17.2 215,998 19.5 36,133.9 3.3 1,104,898

Worldwide Mobile Communications Device Open OS Sales to End Users by OS (Thousands of Units)

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Smartphone Landscape

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Research In Motion

Overview

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Research in Motion Mission & Vision Statement

Research In Motion (RIM) is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, text messaging (SMS and MMS), Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data.

What is BlackBerry?
The BlackBerry solves the paradox of modern life. Until you use a BlackBerry, you just dont get it. You are connected for both the crisis and the opportunity. You can respond to your boss, but at the same time you have the freedom to walk to the corner store and get a cup of coffee. Mike Lazaridis The Queen was also presented with a white BlackBerry Bold 9700 by RIM founder and coCEO Mike Lazaridis and Ontario Premier Dalton McGuinty. You can see then demonstrating its features in the photo above.

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How we organize the RIM Overview

Background Information of Research in Motion Strategic Issue Ahead

Research in Motion Global Expansion Strategy (Strategy for Global Competition)

Research in Motion 5/5/12 History Background of RIM

v v v

Founded 1984 1996 - Introduces the RIM 900 Inter@ctivePager 1999 - Launches BlackBerry service 2004 - 1 million BlackBerry subscribers 2007 - 10 million subscribers 2010 Revenue: $14.9 billion 2010 Net Income: $3.46 billion

Blackberry Subscribers

v v v v

RIM Revenue and Net Income

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Product and Services

OPERATING SYSYTEM BlackBerry Internet Service BlackBerry PIN BlackBerry Enterprise Server

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Products and Services

v

Pager Models 5000 and 6000 Series Blackberry Phones 7000 Series Blackberry Phones 7100 Series Blackberry Phones 8000 Series Blackberry Phones

RIM Owned, Earned, Paid

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RIMs Social Media History

2008 First Facebook page and customer support forum Launch of the official BlackBerry blog Inside BlackBerry Twitter accounts for @blackberry and @blackberryhelp BlackBerry Help Blog, BlackBerry Developer Zone

2009

2010

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Strategic Issues Ahead

v

Increasing Competition

Market Decline Changing Business Global Expansion Strategy

Environment
v

Increasing 2525 5/5/12 Competition

Increasing Competition

Increasing 2626 5/5/12 Competition

Increasing Competition

Increasing 2727 5/5/12 Competition

Increasing Competition

Increasing 5/5/12 Competition

Increasing Competition Mobile App Store

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Strategic Issues Ahead

v

Increasing Competition

Market Decline Changing Business Global Expansion Strategy

Environment
v

Market Decline in US
Googles Android operating system (OS) accounted for the largest share of the smartphone market with a 43.7 percent share of smartphone subscribers in August 2011, followed by Apple with 27.3 percent. RIM held 19.7 percent of the market, while Microsoft accounted for 5.7 percent of subscribers. Symbian and Palm both accounted for a market share of less than 2 percent each in August.

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Market Decline in US

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Market Decline in US

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Market Decline in Europe

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New Market: Tablet

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New Market: Tablet

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Conclusion Operating Performance Declined

New Subscribers Per Quarter turn down New Subscribers Added Per Unit Sold continue drop Device Gross Margin Percentage get thinner Revenue Per BlackBerry Device Sold declined
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Conclusion Operating Performance Declined RIM shares drop as sales and profit plunge
CNNMoneyTech September 16, 2011
RIM shipped 10.6 million BlackBerry smartphones to retailers last quarter, below the 11 million to 12.5 million it had expected to ship. Its entry in the tablet wars, the BlackBerry PlayBook, shipped just 200,000 units -- a significant drop-off from the 500,000 RIM shipped in the prior quarter The PlayBook went on sale in April. RIM's iconic but aging BlackBerry is struggling to keep up with the industry's innovators: Apple's ( AAPL, Fortune 500) iPhone and Google's ( GOOG, Fortune 500) Android platform.

RIM shares have risen from their nadir but are still down almost 50% this year.
RIM said it expects its BlackBerry shipments to rebound next quarter to a range of 13.5 million to 14.5 million units -- a pickup of around 30% from this quarter. The company's forecast for sales is for at least $5.3 billion. RIM earned $329 million in the quarter that ended Aug. 27, less than half of its profit a year ago. RIM booked a one-time charge of $118 million for costs associated with a reorganization announced in July. As part of that plan, RIM said it was slashing 2000 jobs or 10% of its workforce.

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RIM Financial Facts 2011

Mobile activities

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Global Expansion Strategy

BlackBerry: 595 Networks in 175 Countries

Countries with BlackBerry coverage

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RIM SWOT
Strengths 1. Effective R&D Management 2. Valuable brand name and consumer following 3. Strong financial ratios, low debt 4. Carrier bandwidth saving infrastructure 4. Push email and connectivity patents 5. Strong Brand Presence in Enterprise Markets 6. Strong Wireless E-Mail and Qwerty Products Opportunities 1. Wired-to-wireless communication transition 2. Cellular phone growth rates in developing nations 3. Growth in mobile advertising 4. Mobile workforce expected to grow to 1 billion by 2011 5. Enhanced data networks expected to rollout starting in 6.Success Of Integrated, End-To-End Mobile Solutions With Consumers

Weaknesses 1.Poor demand forecasting for new products 2. Few customers providing major revenues 3. Inability to meet technical demands of rapid growth 4. Limited consumer application store 5. Small share of consumer mobile phone industry
Threats 1. Limited bandwidth capacity reducing the quality of the user experience 2. Patent lawsuits 3. Economic recession causing the US cell phone market to contract 4. Potential health risks involving cell phone usage 5. Apple and Google entering the market could cause reduced margins 6.Competition and Commoditization in Smartphone Market 7. Free Open Smart phone platform

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Issue Analysis : Why RIM Choose Malaysia for manufacturing facility

Indonesia Mobile Landscape Malaysia / Regional Mobile Market Ease of Doing Business Country Comparison

Blackberry di Indonesia

BlackBerry pertama kali diperkenalkan di Indonesia pada pertengahan Desember 2004 oleh operator Indosat dan perusahaan Starhub. Perusahaan Starhub merupakan pengejewantahan dari RIM yang merupakan rekan utama BlackBerry. Pasar BlackBerry kemudian diramaikan oleh dua operator besar lainnya di tanah air yakni Excelcom dan Telkomsel .[2] Akibat tuntutan pemerintah Indonesia, Blackberry akhirnya membuka kantor perwakilan di Indonesia pada November 2010.[

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The Big Different in Reaction

M enkom info Tifatul Sem biring

Menkom info: Siapa Bilang Blackberry Bangun Pabrik di Malaysia?

Rabu, 21 September 2011 14:42 WIB

REPUBLIKA.CO.ID, JAKARTA M enteri Komunikasi dan Informatika, Tifatul Sembiring bersikukuh bahwa Research In M otion sama sekali t ak m embuka basis produksi di M alaysia. Hal ini karena ia sebelumnya telah bertem dengan u Duta Besar Kanada untuk Indonesia,Y M M ckenzie dan ia menyatakan RIM tak membangun pabrik di M alaysia. Itu desas -desus darimana? tuturnya setelah menjadi pembicar 2011, Navigating ICT For The Economy, di Hotel Kempinski, Rabu (21/9). a dalam Indonesia Broadband Economy Forum

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The Big Different in Reaction

R t M u c r B cB r Sa poei M y a I o a f t e l ke ymt hn n a s M n au a r r s l i a
Pb h b ulse y i d vr i m e ea n n oJ l 1 2 1 nu 4 0 y , 1 | 2 o mt C es mn

Research In Motion, maker of BlackBerry devices, announced that it will manufacture a portfolio of BlackBerry smartphones in Malaysia starting July 2011. No details has been given on which models will be manufactured at the Penang plant.

D i J li oe Sno Det ro G blM uat rn a R ,Rn op M k a d olm , e i r i co f l a a f cui g t I v r r o n M a dl h a n Cm i so e o Cnd t Ma sa D y od c V ePei e to Ma saa R , o m i nr f a a a o a yi , a Bl u, i r sdn f a yi t I s l n c l M Dul sB gm ,T d Cm i so e o Cnda H h o mso ,a d a i a D d o ga i e a r e o m i nr f a a i n i Cm i i n n Zbdh a , n n a s g s u Det ro Ma sa I d sra D eo m tAt oi y a et erhn so t eB i co f a yi n n ut i l e l p e uh rt hv hi a d n h l r l v n Cr e3 s at h nsf eh f t eas m y i ea t enw a uat rn pa ti Pnn , uv Gm p o e r s of h s e b ln t h e m f cui g l n n e a g r l n Ma sa a yi . l

,H h i g ak er c Br y

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Indonesia Mobile Landscape

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Indonesia Mobile Landscape

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Indonesia Mobile Landscape

Worse Traffics
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Indonesia Mobile Landscape

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Indonesia Mobile Landscape :Market

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Indonesia Mobile Landscape : Mobile Phone Penetration

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Wireless Subscribers-Outlook

53

Broadband Subscriptions-Outlook

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Indonesia Cellular Revenue Growth

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Indonesia Cellular Revenue Growth

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Indonesia Cellular Revenue Growth

Berdasarkan registrasi yang dilakukan oleh pengguna melalui empat operator yang menjadi mitra Research In Motion (RIM), secara total diketahui bahwa pengguna BlackBerry (Internet Service) di tanah air mencapai sekitar 600 sampai 700 ribu. Angka tersebut sekaligus mencatat pertumbuhan pengguna BlackBerry hingga enam kali lipat atau 500 persen, dibandingkan akhir tahun 2008, kata Joy Wahyudi, Direktur Commerce XL di sela Peluncuran XL BlackBerry Onyx di Jakarta.Hal ini menjadikan Indonesia sebagai negara dengan pertumbuhan pengguna terbesar di dunia, ucapnya. Meski demikian, dari sisi jumlah, Indonesia belumlah menjadi negara yang paling banyak menggunakan layanan BlackBerry di Asia. Masih ada yang lebih besar, tetapi saya lupa negara apa, kata Budi Hardjono, General Manager Product & Postpaid BlackBerry XL, pada kesempatan yang sama. Budi mengklaim, salah satu yang mendorong pertumbuhan pesat pengguna BlackBerry di Indonesia adalah adanya program BlackBerry One, program harian BlackBerry Internet Service milik XL. Hal ini terbukti dengan dibawanya ide BlackBerry One ke Thailand oleh seorang account manager RIM di Asia Pasifik, yang mana selalu membantu tim sales di sejumlah negara Asia Tenggara, kilah Budi. Setelah ide BlackBerry One diimplementasikan oleh salah satu operator mitra RIM di sana, Thailand juga mencatat pertumbuhan pesat layaknya di Indonesia, ucapnya.sumber : vivanews.com Posted by forumblackberry at 9:53 PM

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Indonesia Cellular Revenue Growth

Currently, Indosat offers the highest mobile broadband speeds of 7.6 Mbps compared to 3.6 Mbps by XL and a mere 512 kbps by Telkomsel. Telcos offer phone daily data plans around 8 US cents/Mb, with estimated additional ARPU of US$ 1-2/month, which is significant compared to average ARPU of US$ 4-5/month. Rise of cheap Chinese handsets is supporting mobile Internet. The booming of mobile Internet in Indonesia is mostly supported by cheap GPRS enabled Chinese handsets. The most favorite activities - accessing social networking sites and reading news, gossips etc do not need high-speed (3G) enabled handsets. To enjoy such services, people use GPRS enabled China-handsets, which are very cheap. The price starts from about USD40. For 3G handset, the cheapest one is Huawei around USD 80 while for QWERTY 3G enabled handset the price starts from USD160. There are various Chinese handsets with local brand (BlackBerry appearance without BlackBerry messenger feature).

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Fix vs. Mobile Penetration: Regional

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Fix vs. Mobile Penetration: Regional

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Analysis: Base on Doing Business Report

Doing Business is limited in scope. It does not consider the costs and benefits of regulation from the perspective of society as a whole. Nor does it measure all aspects of the business environment that matter to firms and investors or affect the competitiveness of an economy. Its aim is simply to supply business leaders and policy makers with a fact base for informing policy making and to provide open data for research on how business regulations and institutions affect such economic outcomes as productivity, investment, informality, corruption, unemployment and poverty.

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Analysis: Base on Doing Business Report

EASE OF DOING BUSINESS RANKING The ease of doing business index ranks economies from 1 to 183. For each economy the index is calculated as the ranking on the simple average of its percentile rankings on each of the 9 topics included in the index in Doing Business 2011: 1. Starting a business, 2. Dealing with construction permits, 3. Registering property, 4. Getting credit, 5. Protecting investors, 6. Paying taxes, 7. Trading across borders, 8. Enforcing contracts 9. Closing a business. The ranking on each topic is the simple average of the percentile rankings on its component indicators (table 14.2).

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Comparison

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Comparison

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Analysis: Base on Doing Business Report

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

Indonesia (44th) posts an impressive gain of 10 places, mainly driven by a healthier macroeconomic environment and improved education indicators. Indonesia managed to maintain a relatively healthy macroeconomic environment (35th, up 17) throughout the crisis. While most other countries saw their budget deficits surge, Indonesia kept its deficit under control. Public debt remains low at 31 percent of GDP, and savings rose to 33 percent of GDP. In addition, inflation in 2009 slowed down to 4.8 percent, half the rate of 2008. Moreover, Indonesia has improved across all educationrelated indicators included in the GCI. Yet ample room for improvement remains in this and other areas. Of particular concern is the quality of Indonesias infrastructure (82nd), specifically ports (96th), roads (84th), and the electricity supply (97th). Additionally, several indicators highlight the worrisome health situation: tuberculosis and malaria incidence, as well as infant mortality rates, remain among the highest in the world. A third area of concern relates to technological readiness (91st). Despite rapid uptake in recent years, ICT use remains low in international comparison (103rd).

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Analysis: Base on Global Competitiveness Index

Malaysia drops two places to 26th position this year, with a relatively stable performance since last year. The country has a well-developed financial market (7th) places, mainly driven by a healthier macroeconomic environment and improved education indicators. and an efficient goods market (27th). Malaysia also does relatively well in more complex categories, which matter the most for advanced economies, namely business sophistication (25th) and innovation (24th), boding well for the future. The four-year decline in the quality of institutions that pushed Malaysia from 17th in to 43rd has finally come to a halt, with the country remaining stable at 42nd place this year. The main drag within this pillar remains the security situation (80th, up five). In order to improve its competitiveness further, Malaysia will need to improve its higher education system, with particularly low enrollment rates at the secondary and tertiary levels. It would also be well served by encouraging greater technological adoption, particularly the use of ICTs, for productivity enhancements.

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Analysis: Base on Global Competitiveness Index

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Will RIM regret choosing Malaysia over Indonesia for manufacturing?

Statistics from BlackBerry Cool suggest that, while Malaysia may have stronger infrastructure and more straightforward legal steps, its smartphone market is dwarfed by that of its neighbour Indonesia. Indonesia represents a much higher volume of downloads and interest in BlackBerry products than Malaysia. In terms of device sales, its clear that Indonesia is the bigger market. Sales of BlackBerry smartphones in Indonesia [are] expected to reach 4 million units with a[total] value of US$300 per unit next year. This is compared with the annual sales of 400,000 units in Malaysia. RIM isnt alone in selecting Malaysia for a key site. January saw search giant Google chose Kuala Lumpur as the site for its second regional office, in addition to Singapore, to develop its presence in the region. Google Southeast Asia chief Julian Persaud hinted that superior infrastructure was behind the decision, telling AP that Malaysias online landscape was growing rapidly with significant developments in both broadband Internet access and e-commerce activities with a talent pool of the highest quality.

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Will RIM regret choosing Malaysia over Indonesia for manufacturing?

As the Jakarta Post revealed back in July, Google and Erich Scmidt no less has pledged to open an office in Indonesia before 2012, however there is some way still to go. [Google is] involved in serious talks with the Communications and Information Technology Ministry regarding its business plan and would soon prepare a memorandum of understanding with the government. Presumably, this long process coupled with Malaysias infrastructure were key reasons for RIM, like Google before it, selecting Malaysia. But what repercussions could this have on the ailing giants marketshare in Indonesia, one of its key strongholds.

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Will RIM regret choosing Malaysia over Indonesia for manufacturing?

Another way to assess the possible impact is to look at what locating its manufacturing centre in Indonesia could have done for RIM, as BlackBerry Cool speculates. If RIM chose to make the manufacturing center in Indonesia, it would certainly guarantee a very large Indonesian market for the foreseeable future as Indonesians would see the product as a local smartphone. Perhaps this investment alone would help RIM weather any poor sales in other regions as the countrys population is young and would continue buying the devices over a long period. Also, it leaves the possibility of another smartphone opening a manufacturing plant in Indonesia which could shift the market and RIM would lose an enormous customer base. Tech-crazed Indonesians will be disappointed at missing out on another giant, only time will tell if this decision has a long-term impact on RIMs position and success in the country. The effects will soon be felt by the Canadian giant with the Indonesia government planning to impose additional tax on imported BlackBerry devices, as Daily Social reports.

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Will RIM regret choosing Malaysia over Indonesia for manufacturing?

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The Next Big Thing

Android smartphones are yet to win over the Indonesian consumer. Purbo believes this is because they are largely manufactured in Asia, so are unappealing to Indonesians craving American or European goods. But with millions of Blackberry users putting pressure on mobile networks, Indonesian providers are having a hard time supplying a reliable service. I ditched my Blackberry long ago and use the Android system now, laughs Purbo. Its cheap and made in China. DJ Prabowo is also keeping a close eye the Android system. Some of my friends are using Android already. Others might soon have to catch up, he says with a knowing grin. The potential of Android in Indonesia is an interesting one as the country mirrors smartphone trends from other Southeast Asian neighbours, like Thailand, albeit Indonesias is a step or two more advanced and on a far greater scale with an estimated 3 million BlackBerry devices in use according to the BBCs stats, compared to estimated total smartphone sales of 1 million in Thailand during 2010.

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The Next Big Thing

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The Next Big Thing

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The Next Big Thing

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The Next Big Thing

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The Next Big Thing

Access With forecasts of nearly 800 million fixed broadband subscribers and over one billion mobile broadband subscribers by 2015, basic broadband will be available to most households around the world, and levels of penetration will be similar to television in advanced markets.20 The race for mobile broadband appears to have been decided in favor of LTE one of two broadband access technologies telecom providers identified as critical to invest in over the next five to ten years (see Figure 7). In December 2009, Nordic carrier TeliaSonera deployed what it claims are the worlds first two commercial LTE networks, offering maximum throughput

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The Next Big Thing

A seismic change in telecom In the past, the value of communications was directly related to scarcity. Calls were billed by the minute and there was never enough bandwidth for data. Today we have ubiquitous broadband in rich countries with the promise of ultra-broadbandservices around the corner. In Hong Kong it is already possible to enjoy 1 GB/s Internet connections in the home -- about 150 times faster than the quickest service providers in Switzerland today. In the emerging marketplace for digital services value is created by the applications on the network rather than the network itself. Put another way, profit margins are increasingly associated with content and connectivity and decreasingly with the amount of bandwidth consumed. When bandwidth is too cheap to meter, it is time for a new business model. Thats whats happening now. The opportunities for incremental gains come from convergence, the collision of telecom, broadcasting, media services and software made possible by IP and the web. Two big trends provide additional nails to traditional telecoms coffin. Video on the net is soaring. In the US, already more than 150 million people watch up to 100 videos or 5 hours of online video per month. While the future is anybodys guess, by 2011, US citizens may watch 250 billion video downloads online. The other monumental trend is the imminent arrival of very, very fast wireless networks. Even the fastest mobile networks today are lazycompared to what lies just around the corner. LTE, or long-term evolution, will allow downloads to the handset as fast as 300 Mbps and uplinks of 50 Mbps

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