In a diverse market such as Asia, which has different business conditions and varying degrees of sophistication and development, one would assume that developed nations like Japan, Hong Kong and Singapore would be more “innovative” -- and, generally, rightly so. However, contrary to common perception, the telecom sector in less developed countries like Indonesia can display a greater level of overall innovation.
Technology innovation refers to the level of sophistication in the types of products and services offered. This area is where countries with high broadband penetration like South Korea, Japan, Singapore and Hong Kong have the advantage. The high internet connection speeds and HSDPA/long-term evolution-ready networks enable the latest feature-packed gadgets as well as communication services to be easily accessible. Telecom infrastructure in these countries has reached a stage where there is almost complete communications coverage and support anywhere within their borders.
At the same time, these markets typically have a higher percentage of technology first-movers and higher concentration of wealth, which means a greater willingness to pay for the latest and best that technology has to offer.
The best example would be the operators that won the exclusive deals signed by Apple for its flagship iPhone mobile device. The demand for the device produced a significant spike in revenue but, more importantly, lured lots of subscribers away from their competitors.
A second type of innovation refers to the creative use of pricing and bundling techniques to offer a wider range of services. This does not rely on infrastructure development or the latest and best that technology has to offer. Instead of selling products or services separately, innovative companies can bundle them into combinations of products and services that are more valuable than the simple sum of their parts.
This type of innovation aims to eliminate daily hassle and is usually tailored to meet a specific need, thereby improving the overall customer experience. Such an improvement makes customers “sticky” or more inclined to be loyal to your company or brand. Pricing and bundling innovation also leads to increased revenue in the long run, as companies discover new ways of growing ARPU.
In fact, such innovation not only adds value and differentiation to companies' services but can also serve as a way of justifying premium pricing rather than continued discounts on bundled services. After all, customers tend to be more willing to pay for something they want.