SingTel and SoftBank Best Exemplify Hybrid Business Strategy
SingTel and SoftBank are perhaps the best examples of business strategies that blend traditional communications businesses with newer digital content and application revenues.
It is sometimes hard to understand the strategy, but even harder to execute. In some cases, telcos might hope to create captive services. That is the strategy for mobile entertainment services, for example, where a mobile service provider directly owns a streaming media service.
In addition to direct revenues, indirect monetization from advertising might be possible.
One other angle is to partner with young Internet companies that eventually can emerge as key drivers of direct and indirect revenue. In such cases, a mix of revenue models could emerge. In some cases, perhaps equity value is created.
In other cases, it is conceivable that capacity and transport revenues are earned. In yet other cases the value is indirect.
Singtel's regional network of telecom alliances, covering a total of some 570 million subscribers, has already attracted taxi-hailing app GrabTaxi, which recently agreed to give users in Thailand, the Philippines and Indonesia the option of paying their fares using the Singtel mobile wallet service, for example.