1. STRATEGY AT THE BASE OF THE PYRAMID:
THE CASE OF MOBILE NETWORK OPERATORS IN
INDONESIA
Bernardo S. C. Fernández HEC Paris, 10th June 2015
ABSTRACT
Information and Communications Technology are shifting the paradigm of economic
growth in developing countries, with a special focus on low-income people. This is exceptionally
reflected in Mobile Internet and Mobile Banking that bring together financial inclusion and
universal information. Moreover, both private companies and governmental agencies have a key
role in making such services accessible to people at the Base of the Economic Pyramid.
Thus the core of this dissertation dwells on the Strategy of Multinational Companies targeting
the Base of the Pyramid, by analyzing the case of Mobile Network Operators’ strategies for the
BoP in the Republic of Indonesia, while at the same time combining it with the impacts of
policymaking from the government standpoint, in particular from the Telecommunication
Regulator and the Central Bank.
Several conclusions are derived from this study underlining the flaws of existing literature not
taking into account non-specific strategies that tackle low-income customers. Furthermore,
MNOs must potentiate their scalability to ensure success, whilst governmental institutions must
create a framework of policies that encourage private investment and allow the expansion of
distribution networks.