THE INNOVATE VALUE ADDED SERVICE FOR INTERNET SERVICE PROVIDER IN TAIWAN
Date Issued
2004
Date
2004
Author(s)
Lee, Yueh-Chi
DOI
zh-TW
Abstract
The booming of WWW paves the road to the brand new experience for media, commerce and community in the 20th century; as the development of Internet is in its rapid growth and the penetration of broadband user reached 3,000,000 of people in Taiwan by March 2004, a new environment for innovation and applications are on the edge of development.
ISP (internet service provider) is the first milestone derive from the telecom industry, it plays a vital role in the development of WWW, as access service is the fundamental requirement for every internet user, it rely heavily on domestic telecom (Type 1 telecom operator), foreign player did not enjoy any comparative advantage when entering domestic market while deploy its globalization strategy. Let along when compete in a State Owned Enterprise such as Chung Hwa Telecom, which controls most of the public resource and dominate both the circuit and access market. In addition to compete with dominant player, international ISP have to deal with insufficient telecom regulations that normally result to very slow improvement.
This study is to illustrate how a foreign ISP player who equipped with unique resources will create a new competitive advantage when complete with local dominant player? How the entry model and strategy it applies fit the industry versus environment strategic position? Does the innovate value added service the company developed will become the new “ Killer application “ creating a new business model in the competitive ISP industry? Or the nature of access turn commodity development today will benefit the values added service which ultimately will become the differentiate strategy for all ISP’s tomorrow?
Innovated Value Added Service Model is the next phase of development in the Internet business model deployment; how to integrate communication / connection and content to build a community who share the same interest is the task we bring to the study, by doing so, we will follow what Dr. Robert Pitts and Dr.Robert Grant address in their prior study and to explain how the frame work laid fit the assumption we made.
From the government policy announcement in 2002, we learned that to reach 6 millions broadband household users by 2006 is a primary goal for E-Taiwan development, which means there are 3 millions homes to be accessed in next 2 more years, by evaluating current broadband industry in Taiwan, the incentive for end user to enjoy broadband is insufficient still, higher speed and cheaper price will encourage people sign up for broadband, but how to provide a value content / application to enhance the usage is a crucial challenge; for an international ISP, the challenge is even bigger, the obstacles include the unfair competition and unusual business practices; dose the Innovate Value Added Service really a pay-off to this critical condition? It should be a trend to watch, this is why we thought “ entry model “ study together with “ Strategic positioning “ are essential to identify the proposition of Innovate VAS for both International and domestic ISP players.
Subjects
加值服務
網際網路服務業
網際網路
ISP
Internet
VAS
Type
thesis
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