Operating logics of virtual network operators : understanding the companies entering virtual operator market

2000-luvun alku on tuonut tullessaan monia muutoksia vielä melko kehittymättömään mobiilikommunikaatioteollisuuteen. Langattomien teknologioiden nopea kehitys yhdistettynä nopeaan muutokseen sekä kilpailu- että sääntely-ympäristössä ovat aiheuttamassa epäjatkuvuuden teollisuuden kehityksessä. Miten tämä epäjatkuvuus vaikuttaa mobiilioperaattoreiden toimintamalleihin ja ansaintalogiikkaan, on kysymys, joka liittyy läheisesti käynnissäolevaan muutokseen. Mikä on teollisuuden uusimman kehityssuunnan, virtuaalimobiilioperaattoreiden, rooli tämän kehityksen keskellä on toinen relevantti kysymys koskien teollisuuden kehitystä. Tämä tutkimus esittää keskeisiä teorioita koskien yrityksen arvonluomisen prosessia, yhteistoiminnallisia yritysverkostoja ja sitä miten yritykset ja teollisuudenalat kehittyvät. Mobiiliteollisuuden epäjatkuvuuden keskeisimmät tekijät, teknologinen ja sääntelyllinen muutos, esitellään ja niiden vaikutusta mobiilikommunikaation arvoketjuun pohditaan käyttäen hyväksi arvoketjuintegraatiota koskevaa teoriaa. Kehitysteorioista käänteentekevän innovaation teoriaa käytetään pääasiallisena teoriana selittämään virtuaalioperaattoreiden tähänastista kehitystä ja tekemään päätelmiä tulevasta. Tutkimus erittelee myös sitä, mitä tämänhetkinen mobiilikommunikaatiotutkimus on identifioinut mahdollisiksi tulevaisuuden virtuaalioperaattoreiden tulonlähteiksi. Näistä aineksista kehitetään käsitteelinen viitekehys, jonka avulla tutkitaan kahden yrityksen menestystä suomalaisella mobiilikommunikaatiomarkkinalla. Lisäksi esitellään täydentävä yrityscase brittiläiseltä markkinalta, jotta voidaan osoittaa horisontaalisen toimintamallin edut mobiilikommunikaatiomarkkinalla. Päätelmissä todetaan, että mobiilikommunikaatioteollisuus on horisontalisoitumassa EU:n alueella mistä johtuu, että mobiiliverkko-operaattorit kärsivät tällä hetkellä byrokraattisesta tehottomuudesta. Vaikka virtuaalioperaattorin liiketoimintamalli vaikuttaisi soveliaammalta tulevaisuuden mobiilikommunikaatiomarkkinoilla, ne eivät toistaiseksi ole pystyneet hyödyntämään horisontaalisen toimintamallin täyttä potentiaalia. Tämä voidaan selittää innovaatioteorialla.The beginning of 21st century has brought along many changes to still quite immature industry of mobile communications. Rapid development of wireless technologies combined with rapid changes in competitive and regulatory environment are causing a disruption in the evolution of the industry. How does this disruption affect the operational model of mobile operators and earnings logic, is a question closely related to ongoing change in the industry. What is the role of one of the latest development, virtual network operators, amidst this development is another relevant question concerning the development of the industry. This study presents centric theoretical concepts related to value creation of a company, collaborative company networks and how companies and industries evolve. The main factors of disruption, technological and regulatory change, are presented and their effect on the mobile communication value chain is reflected against theories concerning value chain integration. From evolutionary theories disruptive innovation theory is used as primary framework to ponder hitherto performance of virtual network operators and to make conclusions on the future. The study also scrutinizes what has been identified as possible revenue generators of future virtual network operators in contemporary research of mobile communications. From those ingredients a conceptual framework is developed in order to study performance of two companies from Finnish mobile communication market. An additional company case from British market is presented in order to show the advantages of horizontal operating mode in mobile communication market. The thesis concludes that the industry in the EU area in general is on verge of horizontalization and mobile network operators are suffering from bureaucratic inefficiency. Although virtual network operator's business model would seem more suitable for future mobile communication markets, they have not yet tapped the full potential of horizontal operating mode. This can be explained with the theory of innovation

A complex systems perspective on innovation, investment and regulation of evolving telecommunications networks

This thesis is a Doctoral Thesis of the International Executive Doctorate Programme (DBA) at the School of Management, Cranfield University, UK. The purpose of the study is to present the results of the research dedicated to the topic of Infrastructure Sharing, a common method to make use of the limited infrastructure resources of many stakeholders. The research aims to develop a decision support tool for a National Regulating Authority (NRA) on the basis of a software simulation representing infrastructure in use as complex systems consisting of agent and infrastructure networks. By applying a computational Agent-Based Modelling (ABM) approach to policy decisions, i.e. influence of Duct and Pole Access (DPA) to incumbent telecommunication infrastructures, the research investigates regulatory considerations that stimulate the development of alternative networks. The final deliverable of the research is a simulation tool that provides a solid foundation for simulating experiments, which allows analysis of demand for broadband services by different subgroups of users. The results of the study are of value for regulators, practitioners, representatives of telecommunication and other network industries, and scholars who deal with the topic of sustainable infrastructure development and recognise the value of a complex system perspective

Dynamic Approach to Competitive Intelligence: Case Studies of Large-Scale Swiss Telecom Firms

The research aim is to understand how the competitive intelligence (CI) process in large-scale Swiss telecom companies contributes to management decision-making. Studying CI activities of the Swiss large-scale telecom firms (Swisscom, Sunrise, Orange/Salt, Cablecom) in a dynamic European context offers useful insight into the critical challenges that service firms now face when developing intelligence in disruptive market contexts where aggressive competitive behaviour is evident. In considering CI theory, this study has reviewed perspectives drawn from research on the CI process, studies on knowledge management and work on systems thinking. In extending the predominant modular view of CI to include elements of systems thinking, this study has added to our academic understanding of CI at firm level. An Integrative CI Activities framework was developed that enables a more holistic perspective of CI to be adopted, taking account of operational, organisational and strategic perspectives. A diagram representing the range of CI analysis methodologies has also been generated, that differentiates between internal/external orientation and static/dynamic forms of CI analysis. Such frameworks can be used by CI researchers in other market contexts. The methodology for this study drew on a pragmatist philosophy, using a case study strategy that adopted mixed methods in data collection, including semi-structured depth interviews with top CI Analysts in each firm. Findings have shown differences in the scope of CI Activities that link to stages of CI development (developing, developed) and variation between headquarters-centred and firm-centred approaches to CI planning and implementation. The adoption of query based, flexible analysis approaches in firm-centred settings differ from more structured CI analysis techniques in headquarters-based firms. Evidence from this study suggests that networked communication, strong feedback mechanisms and the adoption of more flexible CI analyst roles link to more effective CI processes and to greater potential for direct CI contribution to decision-making. Key contributions emerge through the three lenses of analysis adopted (operational, organisational and strategic); in terms of operational CI processes, the study identifies a complex integrated system at work in firms that implement CI effectively. In studying the link between organisational structure and CI analysis, the study has mapped organisational support patterns and how they shape the CI process at firm level. With respect to the strategic lens, following a detailed worked study of predictive analysis in one case firm, findings have identified adaptiveness in CI design as essential to address disruptive market change. Managerial consideration include a need for a) greater flexibility in CI implementation at firm level to adapt to turbulent markets, b) acknowledgement of the importance of the CI analyst role further and c) more dynamic CI content to be generated by CI analysts

Strategic Resource Management in 5G Network Slicing. (Invited paper)

International audienceNetwork Slicing is one of the essential concepts that has been introduced in 5G networks design to support demand expressed by next generation services. Network slicing will also bring new business opportunities for service providers (SPs) and virtual network operators, allowing them to run their virtual, independent business operations on shared physical infrastructure. We consider a marketplace where service providers (SPs) i.e., slice tenants lease the resources from an infrastructure provider (InP) through a network slicing mechanism. They compete to offer a certain communication service to end-users. We show that the competition between SPs can be model using the multiresource Tullock contest (TC) framework, where SPs exert effort by expending costly resource to attract users. We study the competition between the SPs under a static and dynamic resource sharing scheme. In a dynamic resource sharing scheme, SPs are pre-assigned with fixed shares (budgets) of infrastructure, and they are allowed to redistribute their shares and customise their allocation to maximise their profit. The decision problem of SPs is analysed using non-cooperative game theory, and it is shown that the resultant game admits a unique Nash Equilibrium (NE). Furthermore, a distributed reinforcement algorithm is proposed that allows each SP to reach the game's unique Nash equilibrium. Finally, simulations results are conducted to analyse the interaction between market players and the economic efficacy of the network sharing mechanism

Mission-Critical Communications from LMR to 5G: a Technology Assessment approach for Smart City scenarios

Radiocommunication networks are one of the main support tools of agencies that carry out actions in Public Protection & Disaster Relief (PPDR), and it is necessary to update these communications technologies from narrowband to broadband and integrated to information technologies to have an effective action before society. Understanding that this problem includes, besides the technical aspects, issues related to the social context to which these systems are inserted, this study aims to construct scenarios, using several sources of information, that helps the managers of the PPDR agencies in the technological decisionmaking process of the Digital Transformation of Mission-Critical Communication considering Smart City scenarios, guided by the methods and approaches of Technological Assessment (TA).As redes de radiocomunicações são uma das principais ferramentas de apoio dos órgãos que realizam ações de Proteção Pública e Socorro em desastres, sendo necessário atualizar essas tecnologias de comunicação de banda estreita para banda larga, e integra- las às tecnologias de informação, para se ter uma atuação efetiva perante a sociedade . Entendendo que esse problema inclui, além dos aspectos técnicos, questões relacionadas ao contexto social ao qual esses sistemas estão inseridos, este estudo tem por objetivo a construção de cenários, utilizando diversas fontes de informação que auxiliem os gestores destas agências na tomada de decisão tecnológica que envolve a transformação digital da Comunicação de Missão Crítica considerando cenários de Cidades Inteligentes, guiado pelos métodos e abordagens de Avaliação Tecnológica (TA)