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A value chain model for mobile data service providers

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  • Olla, Phillip
  • Patel, Nandish V.

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.

Suggested Citation

  • Olla, Phillip & Patel, Nandish V., 0. "A value chain model for mobile data service providers," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 551-571, October.
    • Handle: RePEc:eee:telpol:v:26:y::i:9-10:p:551-571
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    Citations

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    Cited by:

    1. Key Pousttchi & Yvonne Hufenbach, 2011. "Value Creation in the Mobile Market," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(5), pages 299-311, October.
    2. Whang, Yun-kyung & Hobday, Michael, 2011. "Local 'Test Bed' Market Demand in the Transition to Leadership: The Case of the Korean Mobile Handset Industry," World Development, Elsevier, vol. 39(8), pages 1358-1371, August.
    3. Dharmesh Gupta & Ruchita Gupta & Karuna Jain & Kirankumar S. Momaya, 2017. "Innovations in Mobile Value-Added Services: Findings from Cases in India," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1-27, December.
    4. Oseni, Musiliu O. & Pollitt, Michael G., 2017. "The prospects for smart energy prices: Observations from 50 years of residential pricing for fixed line telecoms and electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 150-160.
    5. Krämer, Jan & Wiewiorra, Lukas & Weinhardt, Christof, 2013. "Net neutrality: A progress report," Telecommunications Policy, Elsevier, vol. 37(9), pages 794-813.
    6. Cricelli, Livio & Grimaldi, Michele & Ghiron, Nathan Levialdi, 2011. "The competition among mobile network operators in the telecommunication supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 22-29, May.
    7. Pagani, Margherita & Fine, Charles H., 2008. "Value network dynamics in 3G-4G wireless communications: A systems thinking approach to strategic value assessment," Journal of Business Research, Elsevier, vol. 61(11), pages 1102-1112, November.
    8. Chiang, Tzu-An & Trappey, Amy J.C., 2007. "Development of value chain collaborative model for product lifecycle management and its LCD industry adoption," International Journal of Production Economics, Elsevier, vol. 109(1-2), pages 90-104, September.
    9. Timo Smura & Annukka Kiiski & Heikki Hämmäinen, 2007. "Virtual operators in the mobile industry: a techno-economic analysis," Netnomics, Springer, vol. 8(1), pages 25-48, October.
    10. Garrido, Elisabet & Whalley, Jason, 2013. "Competition in wholesale markets: Do MNOs compete to host MVNOs?," Telecommunications Policy, Elsevier, vol. 37(11), pages 1124-1141.

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