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Business Models in Telecom

Business Models in Telecom

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Published by: israel_zamora6389 on Jun 30, 2014
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techno-
ECO
nomics of integrated communication
SYS
tems and services Deliverable 03:  “Business models in telecommunications” October 2004
 
 
Business models in telecommunications Page 2 of 57
Document Information
Contractual Date of Delivery: 31. 10. 2004  Actual Date of Delivery: 31. 10. 2004 Editor(s): Renjish Kumar Kaleelazhicathu (HUT)  Author(s): Renjish Kumar Kaleelazhicathu (HUT), Irena Grgic Gjerde (Telenor), Timo Smura (HUT), Heikki Hämmäinen (HUT), Tom Tesch (JvH) Participant(s): 5 Workpackage: 2 Workpackage title: Techno-economic methodology development Workpackage leader: Borgar T. Olsen (Telenor) Deliverable number: 3 Deliverable title: Business models in telecommunications Est. Person-months: 8 Security: Public Nature: Report  Version/Revision: 1.0 Total number of pages: (including cover) 57 File name: ECOSYS_Del03_v1.0.doc  Abstract This deliverable aims to act as a reference document for ECOSYS project in the area of business models in telecom-munications ecosystem. The concept of “value network” is adopted for our studies, instead of the traditional company-specific “value chain” approach. A reference model con-sisting of various roles and relationships is developed. The roles considered in this deliverable include the network and service operator, content provider, distributor, vendor, regulatory bodies, etc. A series of example business models are sketched based on the reference model. Key players, their revenue streams and cost drivers are identi-fied for each of the business models. A company’s (player’s) internal value chains and competitive strategies are beyond the scope of this deliverable. A qualitative as-sessment framework for evaluating a business model’s suc-cess in a telecommunications market is developed. These business models will be further studied, implemented and assessed within the activities of work packages 4 and 5 of the ECOSYS project. Finally, a series of recommendations and observations are provided in order to aid the quantita-tive business case analysis in WP4 and WP5. Keywords Business model, telecommunication, value, value network, role, relationship, reference model, qualitative assessment.
 
 
Business models in telecommunications Page 3 of 57
Table of Contents
Document Information....................................................................................................2
 
Table of Contents............................................................................................................3
 
Figures...........................................................................................................................5
 
Tables............................................................................................................................6
 
Executive Summary.........................................................................................................7
 
1
 
INTRODUCTION.......................................................................................................9
 
1.1
 
Motivation.........................................................................................................9
 
1.2
 
Scope..............................................................................................................10
 
1.3
 
Methodology....................................................................................................10
 
1.4
 
Organization of the document...........................................................................11
 
2
 
BACKGROUND AND RELATED WORK.......................................................................13
 
2.1
 
Business models..............................................................................................13
 
2.1.1
 
Definitions................................................................................................13
 
2.1.2
 
Classifications...........................................................................................14
 
2.2
 
 Value..............................................................................................................15
 
2.2.1
 
 Value propositions.....................................................................................16
 
2.2.2
 
 Value configurations..................................................................................17
 
2.2.3
 
Comparing value configurations.................................................................22
 
3
 
 VALUE IN TODAY’S TELECOM MARKET....................................................................25
 
3.1
 
 Value elements in today’s telecom....................................................................25
 
4
 
REGULATORY FRAMEWORK: CURRENT AND FUTURE...............................................28
 
5
 
REFERENCE MODEL AND VALUE CONFIGURATION: ECOSYS PERSPECTIVE...............31
 
5.1
 
Definitions.......................................................................................................31
 
5.2
 
Reference model..............................................................................................32
 
5.2.1
 
Roles........................................................................................................32
 
5.2.2
 
Relationships............................................................................................34
 
5.3
 
 Value model....................................................................................................37
 
5.3.1
 
 Value configurations..................................................................................37
 
5.3.2
 
 Value modeling.........................................................................................38
 
6
 
EXAMPLES OF TELECOM BUSINESS MODELS...........................................................39
 
6.1
 
BM 1: Basic service provisioning model.............................................................39
 
6.1.1
 
MODEL DESCRIPTION...............................................................................39
 
6.2
 
BM 2: CPE distribution model............................................................................41
 
6.2.1
 
MODEL DESCRIPTION...............................................................................41
 
6.3
 
BM 3: Content provisioning...............................................................................43
 
6.3.1
 
 Vertical bundling model.............................................................................43
 
6.3.2
 
Bit-pipe model..........................................................................................45
 
6.3.3
 
Capacity reseller model for content............................................................46
 
6.4
 
BM 4: Peer-to-peer content distribution model...................................................48
 
6.4.1
 
MODEL DESCRIPTION...............................................................................48
 
6.5
 
BM 5: DVB-H mobile broadcasting....................................................................48
 

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