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I have always been interested in the
telecommunications (telco) industry and even thought of starting up my own telco
company. Having profiled GlobalRoam, I gained a much better understanding of
this very competitive market and realise it’s not that easy.
Background
With the growth of the IT and
communications sector, internet and mobile communications services have become
big businesses. GlobalRoam was set up in June 2001 to be the first choice
internet and communications roaming service provider for global travellers.
The Singapore office currently employs 22
staff members. GlobalRoam works with a partner in Kuala Lumpur and has recently
set up an office in Indonesia. Another office in Thailand is upcoming.
GlobalRoam is led by founder and CEO, Mr Clarence Tan, who has more than 10
years of experience in the infocommunications industry.
Services
Set up under the Start-up Enterprise
Development Scheme (SEEDS), the company offers a wide range of easy-to-use
integrated services at value-for-money rates, using mostly local networks.
GlobalRoam adopts a customer-focused
approach. With a Global Credit Account, a customer can easily log in to their
account using their mobile number and PIN, and use multiple services in
different countries, including:
• Fixed line roaming
• Internet roaming (currently not available)
• Mobile roaming
• Conference roaming (via mobile phones)
• Web-based calls
• Call card roaming
A new service - WorldConference - was
recently launched, allowing users to host conference calls with multiple parties
when they are travelling overseas. There is also an option for the calls to be
made via mobile phones.
GlobalRoam’s Unlimited Internet service
offers unlimited Internet connection at competitive rates in over 32 countries.
Users are charged a one-time fee and a rate based on the number of days Internet
access is required, regardless of how many hours are used. The dialer software
enables the user to access the Internet via a password and selection of country
and city. There is no need to modify computer settings and look up international
phone codes - an advantage for frequent travellers. All of GlobalRoam’s services
are supported by a team of talented engineers, ever on the lookout to improve
the company’s solutions and better serve customers.
Business Strategy
Because GlobalRoam had limited resources
when it started, it decided to adopt niche marketing as their strategy. By
serving a niche audience, it aims to be very familiar with this target group and
provide value-added service to its customers. As the company grows, it can
withstand competition from bigger players by building up customer goodwill and
relationships. GlobalRoam expands their reach by supplying services to different
telecommunication companies like Phoenix Comm, MSN Biz-traveler and MediaRing.
In return, these partners help
GlobalRoam in distribution by providing such roaming services to their own
customers. In trying to make their services as convenient as possible to
customers, GlobalRoam’s innovative GlobalCredit allows customers to use
Internet, IDD fixed line and mobile roaming services without having to manage
different accounts. Users will get a pre-paid GlobalCredit account which is
deducted according to usage. Post-paid corporate accounts are also available for
companies interested in managing and lowering their staff’s roaming usage. There
are also plans to develop GlobalStore - an online store where customers can
purchase travel accessories to complement their Internet and communications
roaming services overseas.
Challenges facing GlobalRoam
One of Mr Clarence Tan’s challenges is
having enough funding to maintain and grow GlobalRoam. To compensate for his
limited financial resources, he has had to resort to other means like increasing
the number of partners and shareholders in the company.
The lack of resources also means
GlobalRoam is unable to increase the number of employees substantially. This
means it needs to enhance efficiency to prevent creating a “bottle-neck” in the
workflow of the company. Since GlobalRoam started its sales and marketing
activities in late 2003, it has amassed sales revenue of about S$550,000 for
FY2004. It expects to still be in red for two more years until it is more
established. Another challenge for GlobalRoam is to retain its existing
customers and attract new ones, especially in the face of competition. The
company aims to do this by distributing its services to more partners in
different countries and to position its integrated services and value-for-money
rates as benefits for business travellers.
Planning for the future
GlobalRoam would be launching a
marketing campaign soon, to raise awareness of its services to members of the
public and potential partners. However, with more competitors set to enter the
market, it would need to remain innovative to do well.
In anticipation of the new
infocommunications trend - Voice Over Internet Protocol (VOIP) - Global Roam
aimed to launch their VOIP applications on 1 May 2005. The company could tie in
with partners who make VOIP phones.
What I have observed and learned
I have always been interested in the
telecommunications (telco) industry and even thought of starting up my own telco
company. Having profiled GlobalRoam, I gained a much better understanding of
this very competitive market and realize it’s not that easy.
Telco is an oligopoly market, meaning
that it consists of a few dominant companies like SingTel, StarHub and M1, and
there is restricted entry to the market. This initial investment is very high
and only the most efficient players can survive. As the boss, you need to bear
the most responsibility and motivate and inspire your staff. I learned this from
Mr Clarence Tan who encourages his employees to be creative. To be in business,
you need to be perseverant and patient, like Mr Tan who did not give up despite
having faced three failures in business.
Coming up with a new and original
concept is not easy. To defeat others in the market, you need a large capital
base, ongoing research and technology and innovative products. Finally, you need
to come up with a good business model, be able to implement the right strategy
and have an effective management team.
References
Principles of Marketing – An Asian Case Book, Prentice Hall, 2000
Cases in Marketing Management and Strategy – An Asian-Pacific Perspective, 1996
Southeast Asian Background Series No.2, 2004 – ASEAN Economic Co-operation and
Challenges By Linda Low
Internet Resources
www.globalroam.com
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