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

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  • Markendahl, Jan
  • Nilson, Mats

Abstract

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.

Suggested Citation

  • Markendahl, Jan & Nilson, Mats, 2010. "Business models for deployment and operation of femtocell networks; - Are new cooperation strategies needed for mobile operators?," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 25, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse10:25
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    1. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
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    Cited by:

    1. Kang, Du Ho & Sung, Ki Won & Zander, Jens, 2013. "The validity of unlicensed spectrum for future local highcapacity services," 24th European Regional ITS Conference, Florence 2013 88461, International Telecommunications Society (ITS).
    2. Michail Katsigiannis & Timo Smura & Thomas Casey & Antti Sorri, 2013. "Techno-economic modeling of value network configurations for public wireless local area access," Netnomics, Springer, vol. 14(1), pages 27-46, November.

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