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

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

Balancing Requirements For Customer Value Of Mobile Services

Designing business models for mobile services is a complex undertaking because it requires multiple actors to balance different design requirements. A business model can be seen as a blueprint of four interrelated components or domains: service, technology, organization and finance domain. Little attention has been paid to how these different domains are related to each other. This knowledge is needed to enhance our understanding of what constitutes a viable business model. In this paper the connections between two of these domains, namely service and technology domain, are explored by analysing critical design issues in business models for mobile services, i.e. targeting, creating value, branding and customer retention in the service domain, and security, quality of service, management of service profiles, system integration and accessibility in the technology domain. A causal framework is developed, which link these critical design issues to expected customer value and business model viability.

More than 'pretend competition' in German telecommunications

In a globally networked economy, the telecommunications sector – which was long in the hands of a state-run company – must not close its eyes to competition. All the same, Germany was late in starting to deregulate the industry and so far has concentrated more on competition among service providers than among network operators. Even though several steps have been taken to open the telecommunications market further, the former monopolist continues to dominate it so strongly that critics speak of mere 'pretend' competition.ICT, fixed line, telephony, regulation

Living on the Edge: The Role of Proactive Caching in 5G Wireless Networks

This article explores one of the key enablers of beyond $4$G wireless networks leveraging small cell network deployments, namely proactive caching. Endowed with predictive capabilities and harnessing recent developments in storage, context-awareness and social networks, peak traffic demands can be substantially reduced by proactively serving predictable user demands, via caching at base stations and users' devices. In order to show the effectiveness of proactive caching, we examine two case studies which exploit the spatial and social structure of the network, where proactive caching plays a crucial role. Firstly, in order to alleviate backhaul congestion, we propose a mechanism whereby files are proactively cached during off-peak demands based on file popularity and correlations among users and files patterns. Secondly, leveraging social networks and device-to-device (D2D) communications, we propose a procedure that exploits the social structure of the network by predicting the set of influential users to (proactively) cache strategic contents and disseminate them to their social ties via D2D communications. Exploiting this proactive caching paradigm, numerical results show that important gains can be obtained for each case study, with backhaul savings and a higher ratio of satisfied users of up to $22\%$ and $26\%$, respectively. Higher gains can be further obtained by increasing the storage capability at the network edge.Comment: accepted for publication in IEEE Communications Magazin

Personal security in travel by public transport : the role of traveller information and associated technologies

Acknowledgement This research reported in this paper has been funded by a grant award from the Engineering and Physical Sciences Research Council: EP/I037032/1.Peer reviewedPublisher PD

Wi-Fi Offload: Tragedy of the Commons or Land of Milk and Honey?

Fueled by its recent success in provisioning on-site wireless Internet access, Wi-Fi is currently perceived as the best positioned technology for pervasive mobile macro network offloading. However, the broad transitions of multiple collocated operators towards this new paradigm may result in fierce competition for the common unlicensed spectrum at hand. In this light, our paper game-theoretically dissects market convergence scenarios by assessing the competition between providers in terms of network performance, capacity constraints, cost reductions, and revenue prospects. We will closely compare the prospects and strategic positioning of fixed line operators offering Wi-Fi services with respect to competing mobile network operators utilizing unlicensed spectrum. Our results highlight important dependencies upon inter-operator collaboration models, and more importantly, upon the ratio between backhaul and Wi-Fi access bit-rates. Furthermore, our investigation of medium- to long-term convergence scenarios indicates that a rethinking of control measures targeting the large-scale monetization of unlicensed spectrum may be required, as otherwise the used free bands may become subject to tragedy-of-commons type of problems.Comment: Workshop on Spectrum Sharing Strategies for Wireless Broadband Services, IEEE PIMRC'13, to appear 201