1. A framework for analyzing strategies of Internet Service Providers Authors: Erik Wiersta, Gabriele Kulenkampff and Hans Schaffers Article #: 15 Presented by: Meng Lim

2. Introduction (previous research) Goal of research is to provide a framework for a successful Internet Service Provider (ISP) strategies. Developments in the ISP market Internet technology and services Internet business innovations Regulatory and policy issues Market structure and market development

3. Internet technology and services QoS (Quality of Service) Crucial factor in ISP competition Driven by the development of real-time applications such as: Video-on-Demand IP Telephony Video-over-IP

4. Internet Business Innovations New business models based on price structure and methods of (re)packaging and (un)bundling Example: Telephone, Cable and Internet Bundle

5. Market structure and market development Five types of ISPs: 1. Global operators 2. National telecom operators 3. Internet backbone operators 4. New entrants 5. National or regional ISPs

7. A framework for analyzing strategies Five dimensions of strategy: 1. Factor inputs – technology employed 2. Value chain structure – ownership vs. leasing or hiring infrastructure 3. Product portfolio – IP-transport, Webhosting, Email, etc. 4. Pricing policy – flat-fee, useage-based rate, 5. Market segmentation – regional, nation-wide, international and type of customers (residential and businesses)

8. Factor inputs Mature technology vs. Advanced high-quality network infrastructure Advance technology means higher cost, but higher quality. New market opportunities: willingness to pay by businesses and possibly residential customers. Life expectancy must be taken into consideration.

9. Value chain Vertical integration (Supporting network facilities) Benefit from an increase demand and monopolistic features. The more competitive is and stable or even decreasing demand will make owning the infrastructure less advantageous

10. Product portfolio Telephony services, (incl. dial-up) Consulting services Supply of content (Intellectual Property Rights, increase source of revenue). All play a big role in retaining customers. Large economies of scale will make it harder for smaller ISPs to compete.

11. Pricing Policy Cost advantage can be gain by bundling. Good when market is segmented where everyone has a similar need: telephone, internet, and tv services.

12. Market Segmentation Residential vs. Businesses Market toward specific user groups. By segmenting the market, you can gain better product differentiation.

13. Conclusion Author states there are more factors not mentioned that affect the strategies of ISPs. The research was more qualitative. A quantitative analysis should be conducted: to support and test the strategy development framework. Two main impacts are: cost advantages and product differentiations.