Indonesia is a large and promising market for mobile telecommunication service. However, the increment of smartphone number and the change of communication way bring significant impact to Telco operator because revenue and traffic move in different or diverging directions. The situation is getting worst due to over the top (OTT) applications. All of these factors caused ARPU (Average Revenue per User) decrement.
PT XYZ, as a mobile Telco operator in Indonesia, also experiences this ARPU decrement. The condition is getting worse since aggressive offerings from competitor in residential broadband service which had been eroding its revenue growth. Another problem is related with low data user penetration.
The research uses conceptual framework which uses several step and tools, such as External Environment Analysis (PESTEL and Porter’s Five Forces Analysis), Internal Environment Analysis (VRIO and Value Chain Analysis), Strategy Formulation (SPACE Matrix and TOWS Matrix Analysis) and Redefining Business Model (Cross Industry Innovation and Business Model Canvas).
The researcher recommends that the appropriate business strategy to solve the business problems is launching new mobile broadband product. Decreasing ARPU could be solved because the new broadband product has higher ARPU than current products. It also can compete with other competitors for residential market in order to prevent eroding its revenue growth. At the end, this strategy will solve the business problem related with low data user penetration. The researcher has developed the business model for residential mobile broadband product which has several value propositions.
Key words: Business Strategy; Business Mode; Mobile Broadband