Case Study of P1

1. 0 Introduction 1. 1 Company Background pile One Net prep argons (Malaysia) Sdn. Bhd. (P1) was erected on August 18, 2008 as a subsidiary of potassium mailboat Bhd, which is a leading global developer of Next Generation smooth Broadband Networking Solutions. P1 is Malaysias prototypical and leading WiMAX telecommunications wearnership with the solid ground amplest WiMAX net and it re bows the first large-scale commercial deployment of liquid WiMAX in Southeast Asia, as well as the first large-scale deployment of an 802. 16e WiMAX internet outside Korea. P1 was sensation of four companies a warded 2. gigacycle spectrum licenses by the Malaysian G everywherenment to deploy WiMax go by dint ofout Malaysia (www. p1. com. my, 2009). 1. 2 Companys vision P1 objective is to plough the merchandise attractor in radio wideband indus deform. To achieve that, P1 atomic number 18 now putting their effort on broadening piano tuner wideband connectivity across the region in consecrate to capture to a greater extent merchandise. (www. p1. com. my, 2009). 1. 3 WiMAX WiMAX is an abbreviation of Worldwide Interoperability for Microwave Access. It is a standard-based engine room enabling sales talk of last mile wireless wideband access as an resource to c adapted and DSL.WiMAX enables deliverables of bandwidth between two razes or between a meridian to multipoint to guest. The consumption of WiMAX requires certain bandwidth of spectrum to be anyocated to the gain provider, in accordance to the channeling computer program approved and published by Malaysian Communications and Multimedia Commission(MCMC) (www. greenpacket. com, 2008). 2. 0 Michael Porter 5 Forces 2. 1 menace of impertinent en turn out telecom industry is nonp aril of the industries which have the biggest obstacle to enter. Firstly, to enter this industry requires a mete out of cash to cover high ixed equipment and innovation cost (Gupta. A, 2008). Secondly, the possession a telecom license mickle be peerless of the biggest barriers to entry, beca function political science whitethorn ref determination to give license to operator to operate their clientele (WiMAXian. com, 2009). Thirdly, advertisements to create aw atomic number 18ness to public atomic number 18 actu aloney costly it is very hard to draw public attention if there is no exuberant advertisement since there ar so umteen players in Malaysia. to a greater extentover, adept human capitals argon required to operate the business (Gupta. A, 2008).Lastly, high stall barriers s divvy upd off togors in set off into this business, concluding that the threat of new entry is very showtime. 2. 2 Competitive rivalry As cyberspace plays a very important role in humans daily life, most of the people have to in touch with net every day. So, to attract more(prenominal) subscribers, competitors have to lower down their damage and provide more benefits in order to survive since they have in vest an enormous capital in this business that with high exit barrier due to its specialize equipment. There are more than 10 profits aid providers (ISP) in Malaysia.Normally, new carriers are used to take low outlay strategy to attract guests, which lead to a price war (wwwen. zte. com. cn, 2010). Besides that, these ISP do their publicity and advertize frequently as everyone in study city loafer see it every day and everywhere. The frenzy of frequent advertisement had leaded to an advertising war between P1 and Streamyx in 2009 (Risen. J, 2009). moreover, elevated guest churn rate shows that any unsatisfaction in border of quicken, stability and price leave behind cause client to switch to separate serve up provider (Gupta. A, 2008).It whitethorn conclude that the competitory rivalry in net industry is highly intensive. 2. 3 Bargaining power of v expiryee With the annexd choices of wideband religious service of process in Malaysia, the bargaining power of buy er is rising this leads into customers seeking low prices simply have divulge work. On the other(a) hand, the switching cost from one to another meshwork service provider is relatively low, customers locoweed switch to other service provider well, and this enhanced the bargaining power of buyer. 2. 4 Bargaining power of supplier P1 need to have perplexs of specialize ironware and software return equipment to run their business.From hardware (Base station, CPE, Antenna, Cooling agreement and etc) to software (Billing software, Network Monitoring, Test Software), there are enough number of suppliers fatigueden bargaining power. As a decisiveness for the bargaining power of supplier, it is average as P1 have many other options (www. wimax-industry. com, 2009). 2. 5 bane of substitution High substitution threats from non-traditional telecom industries output and services, for example Cable television verses Satellite television, internet telephony verses traditional voi ce calls (Gupta.A, 2008). 3. 0 Segmentation Targeting and reparation 3. 1 Target market P1s target markets are metropolitans who seek for convenience lifestyle. 3. 2 Positioning P1 had bewildered WiMAX as a 4G engineering that is superior to High Speed mail boat Access (HSPA) and 3G technologies, which are the fastest, conveniences, s tabular array wireless wideband network in Malaysia. therefrom, P1 had done a Potong (Cut) Now case to encourage public to publish themselves from hassles, frustration and any other unsatisfying broadband services. (www. p1. com. y, 2009) 4. 0 market Mix 4. 1 Product The core yield that P1 provided is net income interruptnership service. There are two supporting products for people to connect to internet provided by P1 which are Wifi-enabled Desktop Modem and takeout Modem WIGGY it trick be beam into many plans. 4. 1. 1 Wifi-enabled Desktop Modem Wifi-enabled Desktop Modem allows several users to connect to internet at the same time by WLAN technology. There are 5 standard plans which are categorized into two major plans topographic point and Office. (www. p1. com. my, 2010)For Home, it fag be divided into 3 plans which are unaccented, PLUS and PRO. The LITE plan federation speed is 400kbps and recitation limen are panorama at 5GB. The Plus plan provided 1. 2 Mbps connection speed with 20GB usage threshold. The PRO plan provided 2. 4 Mbps connection speed and usage threshold are setting at 40 GB. (www. p1. com. my, 2010) Whereas for Office, are divided into warning and Premium. The Standard plan provided 1. 2Mbps Internet connection speed and enjoying unconditioned usage threshold. The Premium plan provide 2. Mbps internet connection speed and enjoying unlimited usage threshold by unlimited as well. (www. p1. com. my, 2010) 4. 1. 2 Portable Modem WIGGY Unlike Wifi-enabled Desktop Modem, there are only two major plans for Wiggy which is Wiggy 69 and WIGGY*. Wiggy 69 provide 800kps connection speed, allowi ng 5GB of usage threshold. Whereas for WIGGY*, provided speed up to 10mbps with usage threshold 10GB (www. p1. com. my, 2010). 4. 2 price P1 had offered a stimulus parcel which is RM 49 per month to attract the new broadband users and students.Another competitive big bucks includes WIGGY with RM69 and RM149 per month. In the below, the table shows that the competitive prices between P1 and Streamyx. pic Table 1 P1 W1max pic Table 2 Streamyx Table 1 and table 2 shows the prices of P1 WiMAX and Streamyx accord to the prices. From here, it shows that P1 keeping the price to be balance with others competitors, which Streamyx are provide Streamyx 2. 0Mbps software program with price RM 188, and P1 are provide the plan PRO 2. 4Mbps with price RM 199. (www. p1. com. my, 2010 and www. Streamy. com, 2010).The prices of all plan set by P1 almost the same with others competitors because P1 believes in an verity policy in which the subscriber knows upfront which speed and price is price for them. Thereby, P1 not only keeps the price balance only likewise accessions market share and influences the local market. (www. p1. com. my, 2010) 4. 3 Place States and carrys had covered by P1 are Kuala Lumpur, Johor Bahru, Kuantan, Selangor, Perak, Pulau Pinang, and Perlis. P1 are intend to roll out its Wimax Services in the adduce which still havent covered by P1 that include Kuala Terengganu, Melaka, Sabah and Sarawak. www. p1. com. my, 2010) P1 call forth resellers to provide adaptation service in different take and areas that including Perak Ipoh, Pulau Pinang Butterworth, Johor Batu Pahat, Kuala Lumpur Putra Jaya and many other places which covered by P1 WiMAX reportage. (www. p1. com. my, 2010) On the other hand, P1 Green Packets headquarter located beside the Federal Highway in KL, it also houses their customer service center to provide reception service for customers come to registration with P1 Modem, require information, make payment, and others. (www. hot -screensaver. om) Lastly, internet also plays as an important part for P1 as play strategy, customers dissolve make registration and file payments are P1 official nettsite. (www. p1. com. my, 2010) 4. 4 Promotion P1 has paid more attention to cross out image promotion, and there are variety of promotions provided by P1 to attract more customers that involved P1 likes to attend different kinds of industrial exhibitions, seminars and summits, and make speeches to promote P1s brand (wwwen. zte. com. cn, 2010). Besides that, P1 had also promoted their services through advertisement.It features with three constituted forms of media which are television, newspaper, and radio. 4. 5 People Externally, P1 recruit resellers to promote and persuade customer to subscribe P1 Wimax internet connection services. Customer can convalesce P1 WiMAX reseller considerably as long as they are under P1 services insurance coverage (www. p1. com. my, 2010). Internally, P1 hire formal receptionist to serve customers at their headquarter-PacketHub reception. Moreover, P1 also hires operators for customer care line to serve call in when customer encounter problems or need advance information.The operation hours of P1 Customer Care Line starting star signal from 8a. m to 11p. m, it also unattached on public holidays. (www. p1. com. my, 2010) 4. 6 do work P1 payment can make by online bill payment, auto debit, deterrent payment and phone-in payment. Online bill payment allows customers to pay online by utilize endorse/ chieftainCard, Banks Savings and Current Account. Customer also can use elevator car Debit/Auto pay system to do payment, it is an automatically system that will deduct customer bank savings or latest account on a fixed schedule.It is for sure that customers can use cheque payment method to pay for their bill this is the very roughhewn way to make payment. Moreover, there is an option for customer to pay by phone-in payment, but only for MBF credit card hol der and Visa/Master card holder (www. p1. com. my, 2010). 4. 7 Physical Evidence 4. 7. 1 prescribed Website P1s official website is well design it is eye catching, multifunctional and easy to use. It contains of information, announcement, online speed meter check, online payment, coverage check, online feedback and so on (www. p1. com. my, 2010). 4. 7. 2 publicity case boxes of P1 W1WAX are made by high quality carton this is to sense that it can physically protect the product inside, preventing any damages from unthought-of event. Moreover, the packaging itself are well design and nicely labeled, this is to attract and to relay information to customers. A well made design of packaging can be a tool to influence customers perception in term of quality of the product, indirectly persuade customer to lead P1 WiMAX internet connection service from other competitors. pic Picture 1 Packaging of P1 WiMAX Modem 5. 0 S. W. O. T of P1 wimax Strengths Weakness First removal firm and market leader Low Coverage Strong brand image Erratic connection, weak connection signal Ease of use, affordable 4G technology Partnering with government die hard from parent accessible club Opportunity Threats Consumer gustatory modalitys for internet access service be from Redtone Technological advancement Preference for wired broadband and free wireless services States going wireless Intense competition 1. Strengths 5. 1. First mover and Market leader P1 is Malaysias first and leading Wimax telecommunications company with the countrys widest Wimax network. The company gains the first mover advantages. It obtains control of resources that followers may not be able to match. P1 also formed a confederation with Sunway Group and completed deployment of the first phase of the emailprotected project, providing wireless broadband Internet access to more than 80 percent of home and business users and over 2 million visitors to the groups flagship township, making Ba ndar Sunway the first incorporated Wi-Fi/WiMAX wireless township in Malaysia. (www. p1. com. my, 2009) 2. Partnering with GovernmentMoreover, P1 was chosen by the local government, the Kuala Lumpur City Hall (DBKL), and regulator, the Malaysian Communications and Multimedia Commission (MCMC), to set up the Wi-Fi/WiMAX (Wi-Fi mesh) Kuala Lumpur Wireless Metropolitan Project (emailprotected), deploying over 1,500 hotspots and currently service more than 130,000 users with free wireless broadband Internet access in Kuala Lumpur. (www. p1. com. my, 2009) It helps to create a strong brand image to P1 Wimax. P1 has anchored races with assorted local governments and communities to attract more new customers. 3. Ease of use, affordable 4G engine room Besides that, the ease-of-use offered by current modems, with current plug-and-play compatibility for typical users and greater flexibleness for more advanced users ( much(prenominal)(prenominal) as online gamers and leaden transferers ) to get the connection chassis freedom that they need truly satisfy the customer.P1 Wimax requires no configuration, no software installation (for desktop modems), no additional linesjust plug-and-play operation (www. p1. com. my, 2010). The price of the plan and packages for customer are also affordable. 4. Support from parent company P1 is a subsidiary company of Green Packet, a technology company from Silicon Valley, and gets its technology and designs from Green Packet. With the help of Green Packet, it brings the future to present by offering one? stop cost effective data, voice, television system and other value added services for all communication demand. The technology can transfer or sharing between each other. 1. Weakness 5. 2. 1 Low CoverageP1 W1MAX Wiggy signal coverage still not wide enough, there is only 35% population coverage by the end of 2009. 9As P1 Wimax service is still relatively new and in the process of universe fully implemented, coverage is still not optimal especially in East Malaysia. However, P1 has a new marketing strategy out. Instead of planning where to P1 W1MAX enable, they are asking their users to vote for the next P1 W1MAX coverage areas. P1 hoping to reach 45% population coverage by the end of 2010, and 65% population coverage by the end of 2012 in Malaysia. (www. p1. com. my) 5. 2. 2 Erratic connection, weak connection signal The signal of the connection show a little winding when the user wasnt exactly in the coverage area.Beside that, depending on the location of the P1 tower, the connection also varied from various parts of the house and performed beat out when the modem was placed close to the windows. On the other hand, the P1 modem may not work if you are using a work laptop where you do not have permission to install applications. This is because the P1 modem will actually install a little application in your laptop or computer to enable it to connect so you will have to ensure that your computer allows ins tallation of applications. Based on these weaknesses, the P1 Company has created an opportunity to their competition to move in they still need to do a lot of improvement to increase its act and quality. 2. Opportunity 5. 3. Consumer preferences for internet access service Information technology (IT) and advanced communications are playing an increasing role in national productivity harvest-tide, the creation of new network-based activities, and improving program line and active standards. Frequency of Internet activity many times a calendar week Activity All Dial-up High-speed Email & instant messaging 71. 4 68. 5 79. 7 Search engines & purchase products 37. 8 29. 5 60. 8 Play games & gamble 21. 0 17. 7 30. 8 Share euphony file or photos 10. 1 6. 19. 5 Banking, trading stocks, or bill payment 9. 8 7. 4 16. 5 Download movies to view on PC 1. 0 0. 9 1. 3 Note. Cells are percent of respondents using the activity many times a week. (Table taken from telecommunicationmunications Research Group, University of Colorado) The table above shows Internet activity for the most extremes rejoinders. The boom of e-business and m-commerce, doing things such as paying bills online and being on the go creates an opportunity for P1 as the turn off is to utilize and makes the best of all the time you have.This is due to the increasing preference for full mobility, doing things on the go and online connectivity. pic The table above shows that the internet users and broadband internet users had been increase. By the end of June 2008, there were 1. 718mn broadband subscribers in the market, and our appraisal of seeing just over 2mn by the end of the year is evaluate to be achieved, led by demand for wireless broadband. (Malaysia Telecommunications Report, 2009) This trend is judge to continue, particularly given that the country reported the deployment of its first WiMAX services in the third quarter of this year. We are forecasting around 7mn broadband subscribers by 2013, representative of a penetration rate of 24%.The increase of broadband users is also a sign that the market would be ready for P1 Wimax if the service and promotion are implemented roaringly. 2. States going wireless emailprotected, is a state government initiative engaging the WiMAX-based P1 wireless Internet service. P1s part of the project is actually named emailprotected, a subset of the larger initiative, to deliver broadband Internet connectivity to areas with high numbers of tourists, as well as densely-populated locations, making Penang one of the first cities in the world offering full WiMAX connectivity. (www. p1. com. my, 2009) This provides an opportunities as P1 may take advantages of this need and be the most widely used, known or eve sole provider in the state.This will put them beforehand of their competition as well as help to establish credibleness and reputation. 3. Technological advancement MIMOS, the premier applied research centre in frontier technologi es, today announced that its WiWi Technology Platform the worlds first hybrid WiFi and WiMAX solution which operates on 2. 3 GHz frequency designed as an alternative for last mile broadband connectivity to accelerate Malaysias broadband ecosystem is ready for nationwide commercialisation. (www. mimos. my, 2009) The new MIMOS WiWi allows for better penetration into the broadband market such as being able to reach rural areas where pulling cables are more costly, time eat and inefficient option.If P1 is able to build a strong brand image, minute reputation and services, it will be able to capture the lions share of the market. 3. Threats 5. 4. 1 Threaten from Redtone Redtone, using base stations and CPE equipment from Motorola, has launched the first commercial WiMAX service in East Malaysia. (www. telecoms. com, 2010)The first phase of the WiMAX network covers the Kota Kinabalu business district. With Redtone heavily investing and focusing in East Malaysia, Redtone has managed to establish themselves and build credibility there. This creates an obstacle for P1 whose objectives is to be the leader in the wireless broadband industry.P1 will find it much harder to penetrate that market without heavy investment in promotions and improving their services or Redtones service deteriorates. 2. Preference for wired broadband and free wireless services As wireless broadband is still not very advanced, it tends to be either more un durable or does not have extensive coverage. As such, people may not want to pay for wireless broadband when options such as wired internet in the office or home are available. Free Wi-Fi services are also available to cater for the increasing preference for full mobility in many places such as F&B outlets such as Starbucks, McDonalds, Secret Recipe, senile Town cafes, Papa Rich and so on. 3.Intense competition P1 Wimax operates in the highly competitive and rapidly evolving technology industry. Rapid varietys in the technology have resu lted in the frequent introduction of new products with competitive prices, features, and performance characteristics. Some of the competitors of the company include fixed line (TMNet Streamyx), and cellular providers through their HSDPA/HSUPA (Celcom, Digi, Maxis). With telecoms lying new technologies from time to time (towards LTE) and TMNet starting High-speed (using fiber) broadband next year in metro areas of Klang Valley. Moreover, P1 only offers 2 portable Wimax packages, the Wiggy and the Wiggy 69.Each package is placed on two extreme ends, one with a very low speed and the other with a importantly higher but also higher price tag. (www. p1. com. my, 2009) There is currently no package catering to the in between marketthose who do not mind paying a bit more and getting a slightly higher speed than that offered by Wiggy69. Aside from that, the competitor offers a much wider range of packages and some even cater to the in between market. This creates a threat to the P1 also. 6 . Marketing Objectives and Strategies 6. 1 Marketing Objectives a) To increase to 20% P1 WiMAX subscriber in one year. b) To increase 30% of P1 WiMAX awareness among the targeted audience in one year. 7. Marketing Strategies Ansoft Matrix Market keenness price, promotion Product study product - special price packages -R&D in service stability - inducing trial use -packaging of the product Market outgrowth-promotion, place Diversification-distribution product - ontogeny service availability in F&B outlet -come out with mobile telecommunication service. - Increase coverage - Mailing campaign 7. 1 Market Penetration Price Special price packages-student packages Communicating the benefits to the end-consumer of a product often needs a sweetener to entice the consumer to change their provider or sign up for the first time with a new provider. Adding value and an motivator to purchase to the end-consumer is the main point. The student market for broadband is significant an d forms the identify demographic of the target market. According to the research that done by P1, the customer Top Five Wish List are 1. Coverage 2. insert devices with attractive bundling and add-on options 3.Higher data cap 4. More affordable portable offerings 5. Direct subscription sign-up online (already addressed by P1 Direct) With student sometimes paying up RM 26. 000 per year on higher tertiary education fees, a mobile internet service that is fast, reliable, portable and most of all, affordable is most attractive. As an incentive for students to sign up to P1 Wimax, an exclusive package deal for student only would include 12-month short-term slue, an improved download speed of up to 10mps, the last month of the 12 month urge on would be free-of-charge, premium on offers which include pendrives, mouse pad all bearing the P1 Wimax logo and so on.The design of shorter term funk would be more appealing to students as many students live in a dynamic environment and value t heir freedom of choice. By making the 12-month contract more attractive the students interest will be garnered. Besides that, P1 also can conduct an on campus advertising. On campus advertising is a marketing and media services company specializing in targeting college students on campuses. The notion of advertise in campus is less expensive and can attract more student in the package which are only deal with student. Additionally, the campus media such like campus radio station and website can get the ads get play in order to increase its brand awareness. Inducing trial use The consumers could be influential in inducing trial use of a new product or service.Companies now allow clients and potential customers to try products and services on a trial basis before purchase or signing up. By offering a trial offers, it acts as an incentive for prospective consumers, potentially influencing their decision to sign a contract with the company and encourage users of another brand to swit ch. This method is used in order to demonstrate and promote the stability and speed of P1Wimax. Once the users get a feel of the Wimax technology P1 provides, they will be more easily convinced to make a purchase if they are able to experience a product or service first hand as they will make the judgement on their own. 7. 2 Market Development promotion, place Increase Services availability in F&B outletsF&B outlets such as Starbucks and Old Town are selected as it is not only a hang out place but a place where those who wish to surf the net can do so in comfort as food and beverages are served there. It is more convenient than using the cyber cafe and it is also provides a change of atmosphere from surfing the net at home the office or in an educational institution. The F&B franchises are chosen as many people patronize the outlets not only for the food and drinks served but also for the ambience, WiFi services and price. Furthermore, the distribution of these outlets is wide and easily to find. Thus the name and device will always be easily seen, create awareness, reminding the public and creating interest in the Wiggy portable USB modem service. Increase CoverageIn order to increase distribution and availability, P1 could establish relationships with various state governments and communities. Because of the successful partnering with Penang government, the company now can engage the WIMAX-based P1 wireless internet service with other state government. This confederation project not only can increase the brand awareness, but also boost economic capabilities and social education opportunities so that the state can leapfrog the development and growth of Information and Communication Technology (ICT) as a whole. Mailing vex Its important to promote the brand awareness and reputation. This is especially true when economic times are challenging, youve got news to announce, or youre simply hungry for growth.Many forms of promotion are available to the modern causation with banner ads and Google AdWords among the most popular. In this digital age, its easy for web and graphic designers to overlook one of the most effective and fun forms of promotion the mail campaign. Direct marketing provides with a way to conduct a test of this market relatively quickly, at a reasonable cost, and with convincing certitude. Direct mail can happen fast. With a modest campaign to a known target audience, P1 can acquire a send out list develop notice materials (including direct-mail letter, flier, reply card and so on), launch a mailing and start to receive results in just a few months.This is faster than the typical advertising campaignand a lot faster than waiting for the phone to ring. Additionally, P1 can test different appeals, called offers in the trade, to reveal the most potent message through direct mail. By making a different offer to randomly different portions of mailing list, P1 can see which offer pulls best. Go with the best puller unt il find a better draw. As P1 try different offers and different letters, they will find one does better than another. Use the better one, and then try to beat that in the next mailing. Eventually, P1 could get better and better response rates. The mailing campaigns are potent to generate immediate response for advertisers and are also easy to track performance of campaigns.Moreover, P1 can take entrepreneurial achievements far beyond their competitors if they use this campaign correctly. 7. 3 Product Development product R&D in service stability perceptual constancy is one of the stimuli that create customer retention in telecommunication industry, and it can be one of the most attractive unique selling point attracts more potential customer to subscribe P1 WiMAX internet services. So, R&D on current P1 WiMAX and come out with a more stable service rather than just emphasizing on speed improvement can draw numerous of potential customer from other competitors. More stability, in cu stomers mind, means more reliability. Packaging of the productThe modem of P1 is a little big compare to other competitors, it maybe not convenience for whom which are bring along and travel around. In order to attract more customers, the design and the package of the modem should be more chic and portable. For example, with the environment now furnished with modern, a broadband also can be designed as a necklace which is easy to take and keep. Moreover, it also can be a decoration for girls. 7. 4 Diversification-distribution product germ out with mobile telecommunication service P1 can transform their service into mobile telecommunication service. This is a new, challenging and profitability market for P1 to diversify into it.Although P1 have to bear a high risk for press forwards towards mobile telecommunication service industry since there are already three major players which is Celcom, Maxis and Digi had dominated most of the market shares. However, as every person has to had one mobile phone in this 21th century, mobile telecommunication service is an enormous, long lasting and highly profitability industry to target. In order to penetrate this new market segment, P1 could establish a partnership with Sony Ericsson. Sony Ericsson Mobile Communications is chosen because its a global provider of mobile multimedia devices. It is famous and well known. A good relationship with right company can become an essential pull means for P1 development. 8. 0 Target market and Positioning 8. 1 Target marketThese new implementation plans targets people who live in urban areas. Whereas Mobile telecommunication service are targeting students who are currently using P1 services 8. 2 Positioning As to coordinate with the new implementation plans P1 should position themselves as an affordable, reliable, and fastest wireless broadband network. For mobile telecommunication service, P1 should position themselves as affordable, reliable and emphasis on joyfulness to comm unicate with friends and families. Threat of in the altogether Entry 1. Require enormous capital to enter 2. Telecom License 3. High advertising cost 4. (emailprotected A ? L M T V W l 2K L cIY? YSuSnenV hCk9hohCk9how5? hCk9hyA0J hCk9hyAhCk9hyWe0Jh? sjh? sUpic hCk9hyWe hCk9huo% hCk9h? a hCk9h? hCk9hshCk9hyA5? 0hCk9hOyk5? B*picCJOJQJaJmHphsH0Skill human resources capital 5. High exit barrier Competitive rivalry 1. More than 10 ISP 2. New carriers lead to price war 3. Advertising war 4. High customer churn rate Supplier Power 1. Moderate number of suppliers 2. fit to change Buyer Power 1. Many Suppliers 2. Seeking for lowest prices but have better services 3. Low switching cost Threat of substitution 1. High substitution threats from non-traditional telecom industries product and services.