Business model requirements and challenges in the mobile telecommunication sector

The telecommunications business is undergoing a critical revolution, driven by innovative technologies, globalization, and deregulation. Cellular networks and telecommunications bring radical changes to the way telecom businesses are conducted. Globalization, on the other hand, is tearing down legacy barriers and forcing monopolistic national carriers to compete internationally. Moreover, the noticeable progress of many countries towards deregulation coupled with liberalization is significantly increasing telecom market power and allowing severe competition. The implications of this transition have changed the business rules of the telecom industry. In addition, entrants into the cellular industry have had severe difficulties due to inexistent or weak Business Models (BMs). Designing a BM for a mobile network operator is complex and requires multiple actors to balance different and often conflicting design requirements. Hence, there is a need to enhance operators’ ability in determining what constitutes the most viable business model to meet their strategic objectives within this turbulent environment. In this paper, the authors identify the main mobile BM dimensions along with their interdependencies and further analysis provides mobile network operators with insights to improve their business models in this new ‘boundary-less’ landscape

Business process management tools as a measure of customer-centric maturity

In application of business process management (BPM) tools in European commercial sectors, this paper examines current maturity of customer centricity construct (CC) as an emerging dimension of competition and as a potential strategic management direction for the future of business. Processes are one of the key components of transformation in the CC roadmap. Particular departments are more customer orientated than others, and processes, customer-centric expertise, and approach can be built and utilized starting from them. Positive items within a current business process that only involve minor modification could be the basis for that. The evidence of movement on the customer-centric roadmap is found. BPM in European telecommunications, banking, utility and retail sector supports roadmap towards customer-centricity in process view, process alignment and process optimization. However, the movement is partial and not flawless, as BPM hasn’t been inquired for supporting many of customer-centric dimensions

Towards a business model for cellular network and telecommunication operators: a theoretical framework

Cellular networks and telecommunications bring major change to the way businesses are conducted. Mobility has become one of the main priorities for users and this has impacted on cellular networks and telecommunication operators (CNTOs). However, entrants into the cellular industry have been confounded primarily by inexistent or weak Business Models (BMs). Designing a BM for a CNTO is complex and requires multiple actors to balance different and often conflicting design requirements. Nevertheless, most research about CNTOs has been technically oriented and has mainly addressed the technological and engineering issues related to their infrastructure. Less attention has been given to the business model of CNTOs. Hence, there is a need to enhance our ability to determine what constitutes the optimal and most viable business model to meet the various strategic objectives and goals for these CNTOs. In this paper an overview of research into the cellular business model and the main issues to be resolved is provided. In particular, the authors propose guidelines as a basis on which to develop a more comprehensive definition which may lead to a consensus. Moreover, a generic model (V4 Model) is proposed for the BM of these companies based on value proposition, value architecture, value network and value finance

Stochastic modelling of the effects of interdependencies between critical infrastructure

An approach to Quantitative Interdependency Analysis, in the context of Large Complex Critical Infrastructures, is presented in this paper. A Discrete state–space, Continuous–time, Stochastic Process models the operation of critical infrastructure, taking interdependencies into account. Of primary interest are the implications of both model detail (that is, level of model abstraction) and model parameterisation for the study of dependencies. Both of these factors are observed to affect the distribution of cascade–sizes within and across infrastructure

Techno-economic viability of integrating satellite communication in 4G networks to bridge the broadband digital divide

Bridging the broadband digital divide between urban and rural areas in Europe is one of the main targets of the Digital Agenda for Europe. Though many technological options are proposed in literature, satellite communication has been identified as the only possible solution for the most rural areas, due to its global coverage. However, deploying an end-to-end satellite solution might, in some cases, not be cost-effective. The aim of this study is to give insights into the economic effectiveness of integrating satellite communications into 4G networks in order to connect the most rural areas (also referred to as white areas) in Europe. To this end, this paper proposes a converged solution that combines satellite communication as a backhaul network with 4G as a fronthaul network to bring enhanced broadband connectivity to European rural areas, along with a techno-economic model to analyse the economic viability of this integration. The model is based on a Total Cost of Ownership (TCO) model for 5 years, taking into account both capital and operational expenditures, and aims to calculate the TCO as well as the Average Cost Per User (ACPU) for the studied scenarios. We evaluate the suggested model by simulating a hypothetical use case for two scenarios. The first scenario is based on a radio access network connecting to the 4G core network via a satellite link. Results for this scenario show high operational costs. In order to reduce these costs, we propose a second scenario, consisting of caching the popular content on the edge to reduce the traffic carried over the satellite link. This scenario demonstrates a significant operational cost decrease (more than 60%), which also means a significant ACPU decrease. We evaluate the robustness of the results by simulating for a range of population densities, hereby also providing an indication of the economic viability of our proposed solution across a wider range of areas

On the ICT Economy in the European Countries: Investigating the Contribution of the ICT Sectors Using the Input-Output Model

Investigating the Contribution of the ICT Sectors Using the Input-Output Model Previous studies have been devoted to investigating the future of economic growth and examining the importance of technology and the ICT sectors in accelerating the growth of the economy. These studies are from a macro perspective that emphasizes the role of infrastructure investment, as well as from the firm level analysis, which is mainly related to cost efficiency. In addition, recent studies of the European countries indicate that the region is now facing a weakening effect regarding the contribution of the knowledge economy, which slows economic growth. This study aims at investigating the contribution of the ICT sectors in driving economic performance in the European economies with a sectoral approach using the Input-Output (IO) methodology. The method measures the contribution of ICT sectors based on the OECD's definition (2009) and decomposing it into several variables. In addition, the study focuses on investigating one decomposition factor related to technological change effects. The results indicate that the growth of ICT sectors' output declined considerably during 2000-2005 compared to 1995-2000. The decomposition analysis found that the ICT sectors have lost the advantage of export and technological change effects. It has also been ascertained that the smaller impact of technological change effects is due to the lack of connection between the ICT sectors and other sectors on the production side. At country level, this analysis consistently explains this phenomenon, especially in Germany and Spain but fails to detect it in France, where the technological change effect remains stable given the lack of connection between ICT sectors and the rest of the economy. --structural change,economic growth,ICT sectors,input-output,multiplier

Towards goal-based autonomic networking

The ability to quickly deploy and efficiently manage services is critical to the telecommunications industry. Currently, services are designed and managed by different teams with expertise over a wide range of concerns, from high-level business to low level network aspects. Not only is this approach expensive in terms of time and resources, but it also has problems to scale up to new outsourcing and/or multi-vendor models, where subsystems and teams belong to different organizations. We endorse the idea, upheld among others in the autonomic computing community, that the network and system components involved in the provision of a service must be crafted to facilitate their management. Furthermore, they should help bridge the gap between network and business concerns. In this paper, we sketch an approach based on early work on the hierarchical organization of autonomic entities that possibly belong to different organizations. An autonomic entity governs over other autonomic entities by defining their goals. Thus, it is up to each autonomic entity to decide its line of actions in order to fulfill its goals, and the governing entity needs not know about the internals of its subordinates. We illustrate the approach with a simple but still rich example of a telecom service