Business models for deployment and operation of femtocell networks; - Are new cooperation strategies needed for mobile operators?

In this paper we discuss different business models for deployment and operation of femtocell networks intended for provisioning of public mobile broad band access services. In these types of business cases the operators use femtocells in order to reduce investments in "more costly" macro networks since the traffic can be "offloaded" to "less costly" femtocell networks. This is in contrast to the many business cases presented in Femtoforum where femtocells mainly are discussed as a solution to improve indoor coverage for voice services in homes and small offices, usually for closed user groups The main question discussed in this paper is if "operators need to consider new forms of cooperation strategies in order to enable large scale deployment of femtocells for public access?" By looking into existing solutions for indoor wireless access services we claim that the answer is both "Yes" and "No". No, since many types of cooperation are already in place for indoor deployment. Yes, because mobile operators need to re-think the femtocell specific business models, from approaches based on singe operator networks to different forms of cooperation involving multi-operator solutions, e.g. roaming and network sharing. --

Valuation of spectrum for mobile broadband services: Engineering value versus willingness to pay

Radio spectrum is a vital asset and resource for mobile network operators. With spectrum in the 800 and 900 MHz bands coverage can be provided with fewer base station sites compared to higher frequency bands like 2.1 and 2.6 GHz. With more spectrum, i.e. wider bandwidth, operators can offer higher capacity and data rates. Larger bandwidths means that capacity can be provided with fewer base station sites, i.e. with lower cost. Operators that acquire more spectrum in existing or new bands can re-use existing sites for capacity build out. Engineering value is one way to estimate the marginal value of spectrum. The calculation of engineering value is based on comparison of different network deployment options using different amounts of spectrum. This paper compare estimates of engineering value of spectrum with prices paid at a number of spectrum auctions, with a focus on Sweden. A main finding is that estimated engineering value of spectrum is much higher than prices operators have paid at spectrum auctions during the last couple of years. The analysis also includes a discussion of drivers that determine the willingness to pay for spectrum.Radio spectrum,mobile communications,spectrum valuation,spectrum allocation,mobile broadband,marginal value of spectrum,engineering value

Change of Market Structure for Mobile Payments Services in Sweden - The Case of SMS Tickets

Mobile operators and mobile service providers like SMS aggregators and ticket providers have until now been the main actors in the provisioning of SMS tickets for public transportation services. The consumers have been charged for SMS payments using the mobile phone bill. Due to financial regulation (EU directive) mobile operators are no longer allowed to handle payments and transactions for non-telecom services without being a payment provider implying registration of the customers. In Sweden the mobile operators have joined forces and formed a joint venture that offers a separate charging solution, i.e. not using the phone bill. However, this new joint venture has in most cases not been involved in the public procurement of new ticket and payment solutions initiated 2012 by the Swedish transport companies. The outcome is that a number of new actors and constellations have entered the mobile payment business. In the paper the change of the market structure for SMS payment services in Sweden is analysed. The motivation for the research is to contribute to the understanding why mobile payment services do not take off on a large scale in Sweden although the technology and solutions are here. The case with the transformation of the SMS payment market provides insights about some of the barriers. There is no common national SMS payment solution. Users have to register accounts with a number of different payment providers. The registration process is an obstacle, the SMS payments have decreased with 50 – 90% compared to the same period 2012. We can see a fragmentation of the Swedish mobile payment service market. Due to the multitude of different solutions the incentives for both consumers and merchants to extend these payment solutions to other areas would be low

Business Innovation Strategies to Reduce the Revenue Gap for Wireless Broadband Services

Mobile broadband is increasing rapidly both when it comes to traffic and number of subscriptions. The swift growth of the demand will require substantial capacity expansions. Operators are challenged by the fact that revenues from mobile broadband are limited, just a few per cent of APRU, and thus not compensating for declining voice revenues, creating a so called "revenue gap". Concurrently, mobile broadband dominates the traffic, set to grow strongly. In this paper we analyze the potential of different strategies for operators to reduce or bridge the revenue gap. The main options are to reduce network costs, to increase access prices and to exploit new revenue streams. The focus in the paper is on cost & capacity challenges and solutions in the network domain. Operators can cooperate and share sites and spectrum, which could be combined with off-loading heavy traffic to less costly local networks. In the network analysis we illustrate the cost impacts of different levels of demand, re-use of existing base station sites, sharing of base stations and spectrum and deployment of a denser network. A sensitivity analysis illustrates the impact on total revenues if access prices are increased, whether new types of services generate additional revenues, and if it fills the revenue gap. Our conclusion is that the different technical options to reduce the revenue gap can be linked to business strategies that include cooperation with both other operators as well as with non-telecom actors. Hence, innovations in the business domain enable technical solutions to be better or fully exploited.Wireless Internet access, data traffic, revenues, network costs, spectrum, deployment strategies, HSPA, LTE, operator cooperation, value added services, NFC, B2B2C.

Analysis of roles and position of mobile network operators in mobile payment infrastructure

A number of different mobile payment solutions have been presented the last decade. The phone subscription with its security mechanisms are used for user identification and payments. This is the case for SMS based payment and ticketing systems that are getting more and more popular. However, there are other ways to implement a Trusted Element (TE) , where a SIM card architecture is only one. It can be in the mobile phone, as a separate integrated circuit, as an optional customer deployed plug-in device (e.g., microSD) or be running as an application on a server existing entirely as software. In this paper we analyze what roles and responsibilities different actors have in different types of mobile payments solutions. The main focus is on the implications for the mobile operator business. It turns out that new types of intermediary actors in most cases play an important role. Sometimes mobile operators are not even involved. The emergence of new payment together with other non-SIM card based TE solutions opens up for many different market scenarios for mobile payment services. --

Mobile Broadband Expansion Calls for More Spectrum or Base Stations - Analysis of the Value of Spectrum and the Role of Spectrum Aggregation

The breakthrough for mobile broadband is taking the mobile communications industry into a new phase. The number of mobile broadband users in the world exceeds 400 million, and the share of the population in Western Europe with mobile broadband is around 10 per cent and over 15 percent in Austria and Sweden. This development has been propelled by the extensive diffusion of mobile modems (dongles) for laptops and smartphones given users ubiquitous access to mobile internet. Consequently, traffic volumes in the mobile networks have grown immensely, and the mobile data traffic surpassed the mobile voice traffic in the world by the end of 2009, and in for example Sweden, over 75 percent of the mobile traffic is data. --

Can mobile eco-systems for technical innovations be standardized? The case of mobile wallets and contactless communication

This paper puts focus on the application of Near Field Communication technology (NFC) to mobile payments. Uncertainties about global policies open for a variety of local business policies. Taking into account different representations of actor interaction as described by different eco-systems by different policy forums the main research question to be discussed in the paper is: Can policies or standards describing actor roles and responsibilities for technical innovations like mobile payments remove obstacles for introduction of the innovation? Different types of industry forums are not only involved in strictly technical matters but also discuss and describe visions about how a new technique might be applied in business life. They suggest different business architectures, (not only a technical architecture), where roles of different type of actors and relations between actors are outlined based on ideas about so called eco-systems. Against this background the paper first discusses how NFC enabled mobile payments currently attracts a lot of attention and identifies four possible development paths making it happen. The paper discusses and compares how global policy networks describe the technical and business architectures for mobile payments. The paper uses a business practice analytical framework and an industrial network framework to identify major problems in connecting global and local policies. Some comments on further research finalize the paper. --Near Field Communication,mobile payments,global policy,business architecture,policy forum,industrial networks,practice

Supply-Push or Demand-Pull as Driver for Local Access Provisioning? - Initial Findings from Interviews with Market Actors

This paper analyzes push-pull initiatives of technological development by studying the concept of Novel Access Provisioning of new wireless Internet access to existing backbone infrastructure. The Novel Access Provisioning project is conducted within the Swedish techno-economic research project with participants from the Royal Institute of Technology (KTH), Stockholm School of Economics (SSE) and the Swedish Telecom Agency (PTS). This paper reports on the results from a series of interviews during the fall of 2005 with main representatives from within the Telecom Industry and outside in the Nordic market having an interest in the development and use of mobile services. The aim of the paper is to increase the understanding for why some innovations have a rapid rate of adoption while others are deployed more slowly

Scenario driven requirement engineering for design and deployment of mobile communication networks

The numbers of users and usage of mobile data service are increasing dramatically due to the introduction of smartphones and mobile broadband dongles. For the next decade the mobile broadband market is expected to grow and reach a level where the average data consumption per user is orders of magnitude greater than today. For the telecom industry it is a magnificent challenge to design and deploy these s high-capacity wireless networks taking into account limitations in cost, energy and radio spectrum. The objective of this paper is to highlight the need to consider a multitude of scenarios for the requirements, design and deployment of mobile broad band networks. The R&D has for many years been targeting high peak data rates enabled by improved spectral efficiency, adding more spectrum bands, aggregation of frequency bands and offloading to local wireless networks connected via public fixed phones or broadband. However, many of these features driving the technology development are representative for the conditions in US and Western Europe. The wireless networks also need to be designed assuming deployment in regions in the world where both the availability of spectrum as well as the penetration of fixed phones and broadband are limited. --Mobile broadband networks,cost and capacity,spectrum,deployment strategies,telecommunications,management of technology and R&D,economic development of natural resources

Business roles enabled by Ambient Networking to provide access for anyone to any network and service

This paper will describe roles and market actors enabling new forms of co-operation and competition using Ambient Networks technology and concepts. According to the AmbientNetworks vision “any†user will be able to connect to “any†network, which will challenge traditional “one operator – one subscriber†solutions. Ambient Networks will stimulate an unbundled value network but will also facilitate the dynamic and flexible way of doing business in an environment with many access and service providers. The roles described in more detail in this paper are the Local Access Provider, Access Aggregator, Access Broker, Trusted Third Party, ClearingHouse, Compensation Service Provider and Service Aggregator