The new idea to reduce the investment and increase the revenue, Manage Service (MS) is the best idea which can be implemented in current competition. Manage Service (MS) is giving more power to manufactures to design, deploy, operate and maintain network infrastructures meanwhile telecommunication providers will focus on how to sell telecommunication service to mobile subscribers. This kind of telecommunication business strategy will increase revenue for both parties and the best idea to win the competition. The idea of Manage Service (MS) is how to share the responsibility and generating significant revenue for both parties’ telecommunication providers and manufactures (vendors)

New idea on such telecommunication business drives telecommunication providers to create more idea and innovation of telecommunication services which more reliable. With Manage Service (MS) telecommunication providers can provide the customers’ demand quickly. Telecommunication providers also did not need to worry how they will deploy the new service as the manufactures will support with their new network infrastructures

There are many mechanisms how Manage Service (MS) can be done such as Manufactures (vendor) totally provide the network infrastructures and they are belonging of them. Another scenario is manufactures will deploy and manage the network infrastructures after certainty duration and they got revenue share. After the period is over, they will deliver the network infrastructures to telecommunication providers.

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Tight competition on telecommunication business made all the telecommunication companies to make some innovation on the telecommunication service. This innovation is including how they will invest the telecommunication network. Revenue sharing is the best option to reduce high investment while deploying new telecommunication service or expand the existing telecommunication service. Revenue sharing in telecommunication business is giving much benefit to the three parties which involved to the telecommunication services.

Revenue sharing schema

Telecommunication companies will involve one or two parties to have revenue sharing while they plan to launch telecommunication service. It is depending on the agreement, to percentage of revenue sharing cold be different to each three parties. Some of telecommunication service requires the infrastructure provided by telecommunication companies and some by three parties. So there will be different schema of revenue sharing for each telecommunication service. Telecommunication companies used to higher revenue sharing rather three parties and it could more than 50% of revenue

Revenue sharing case

The sample of revenue sharing which used to happen on the telecommunication business is Ring Back Tone (RBT) service. RBT service will run if telecommunication companies cooperate with the music label which provides the music content.  Three parties in this case music label will earn revenue sharing once mobile telecommunication subscriber subscribes to the RBT service for a month or a week. It sharing schema could be 40% : 60% for telecommunication companies or 30% : 70% for the telecommunication companies

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Beside, idea and innovation on telecommunication product and service, telecommunication companies also need to consider how they will invest the telecommunication infrastructure to support many telecommunication services. Revenue sharing will reduce the cost they should invest to deploy telecommunication infrastructure and faster while launch the telecommunication service. Revenue sharing used to happen on the telecommunication service which utilized application developer such Value Added Service (VAS) such as BREW service, Ring Back Tone (RBT) service, download content service e.g. ringtone, wallpaper, game etc.

Telecommunication companies will split the revenue to the three parties who involve on this telecommunication service. The percentage of revenue sharing is depending on the agreement between telecommunication companies and three parties. Telecommunication companies should receive higher than three parties involved and could be more than 50% such as on Ring Back Tone (RBT) service

The more benefit of revenue sharing is telecommunication companies used to did not maintain the telecommunication infrastructures which involved directly to the service. Usually, three parties managed directly to the telecommunication system. Revenue sharing is really giving more benefits to the telecommunication companies

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