A value chain model for mobile data service providers

Abstract

The UK Mobile telecoms industry is experiencing some challenging conditions such as debts from spectrum auctions, a saturated subscriber base and commitments to build new network infrastructure. In this paper, we address these competitive challenges and introduce a new revenue generating business model based on a case study of the BTAirwave service that provides flexible IT/IS architecture. The model we propose is based on providing data services to new markets (utilities, finance and manufacturing industry). We challenge the current structure of the mobile telecoms sector and propose radical changes to the current model of both infrastructure and roles of the service providers (SPs). The current model is primarily aimed at services for the consumer and business markets. The objective of the mobile data service provider (MDSP) concept that we propose is to address the competitive challenges by identifying new markets to increase the subscription base thus boosting earnings. We propose the use of a MDSP to identify opportunities for data transmission and present suitable delivery frameworks to deliver the technology to meet these requirements. Instead of the mobile network operator and SPs delivering services just to the consumer market we envisage services to utilities, manufacturing, logistic and banking opening up new opportunities for the hardware devices. The competitive challenges identified will be addressed by proposing a model, which suggests mobile network operators diversify to mobile data services.Mobile data Data revenue models Value chain model Mobile network operators Telecommunication policy