Value Creation in a QoE Environment

User behavior of multimedia services currently undergoes strong changes. This is reflected in several recent trends, e.g. the increase of rich media content consumption, preferences for more individual and personalized services and the higher sensitivity of end users for quality issues. These changes will eventually lead to strong changes in network traffic characteristics: rising congestion in peak times and less availability of bandwidth for the individual user. As a result, the quality as perceived by the end-user will decrease if network operators and service providers do not anticipate the required changes for the network. Measurable network requirements such as available video and speech quality, security and reliability are addressed by technologies that are commonly summed up in the Quality of Service (QoS) concept. However, the end-users' perception of quality is only reflected in the wider concept of Quality of Experience (QoE). This takes the measurable network requirements into account as well as customer needs, wants and preferences. For the implementation of QoE technologies several network components need to be added or changed resulting in high capital expenditures. Yet, it is not clear if these costs can be compensated with efficiency increases. Thus, new revenue streams for the network operator are necessary to incentivize investments in QoE technologies. In this paper we address four new value creation models that can serve as basis for more elaborated business models for network operators and other actors. We show how interest in QoE of the user, the content provider, the service provider and the advertiser induces new revenue streams. These models are embedded in five possible future QoE scenarios that reveal regulation, end user quality sensibility and end-to-end support as major issues for the future. --Business Models,Quality of Experience (QoE),Quality of Service (QoS),Value Creation

Governing the "New Economy": a 3-Phase Historical Model of Cumulative Gales of Creative Destruction of the United Kingdom Internet Service Providers' Market

This article documents the industrial dynamics and the innovation processes inherent in the fast emerging dial-up Internet access segment of the new telecommunication sector in the United Kingdom for the period between 1992 - 2002. It shows that evolving market structures and related products and service innovation in the wholesale and retail branches of the UK Internet Service Providers' market have to be understood in the context of: a) an entrepreneurial thrust that seizes the advantage of a glut of finance accumulated from the privatization of the utilities; b) the evolution of the relationship between the UK voice and data transfer markets after the privatization of British Telecommunications and the strategic development of its 'intelligent network'; c) the related network technologies and services available for deployment at the start of the implementation of the Internet as a mass infrastructure; d) BT's quasi-monopoly in call origination and finally e) the wider evolutionary industrial dynamics, i.e. a cumulative process of conjectures and feedback loops of market power, strategic management and transformation in corporate and institutional governance following the market's expansion and the transition from metered to unmetered dial up Internet access.innovation and industrial dynamics, dial-up Internet, United Kingdom

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