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Business models and business role interaction for wireless broadband access services provided by non-telecom actors and mobile network operators
KTH, School of Information and Communication Technology (ICT), Centres, Center for Wireless Systems, Wireless@kth.
KTH, School of Information and Communication Technology (ICT), Centres, Center for Wireless Systems, Wireless@kth.
2008 (English)In: International Telecommunications Society 17th Biennial Conference, 2008Conference paper (Refereed)
Abstract [en]

The usage of Internet is currently changing from mainly being a service consumed in fixed and known locations like your home or at your work to be a service used at any location. This 'public' wireless broadband access can either be based on extension of broadband systems using WLAN for the local area or be wide area cellular systems with high data rate capability.   Mobile network operators have started to offer very competitive flat rate subscriptions for wireless broadband based on 3G / HSDPA.  The 'business' WLAN hot spot are also challenged by wireless access offered for free (or very cheap) at cafés, a restaurant, hotels, buses etc. A large increase in wireless broadband usage is expected. We can expect more or less the same penetration as for mobile telephony. At the same time there will be a migration from fixed to wireless or even mobile networks. Mobile networks promise anytime everywhere services. This is a very strong quality guarantee.  It is important to realize that in using Internet access at fixed and “known” locations people have been used to get a more or less guaranteed data rate and availability. A wide scale migration from fixed networks to wireless network is likely to result in the same kind of requirements.  The paper will look at the consequences of such kind of quality guarantee from capacity, cost and availability point of view. Since quite large capacities are needed it is vital to study how those capacities can be provided in a cost efficient way and also to study options for new types of business models.  For fixed and mobile telephony and for broadband connections the business model has been the same for many years. End-users have a subscription with an operator that provides the service. For wireless access provided at public places there already today exists a number of different business concepts. A number of submarkets can be identified. The involved market actors are; Mobile Network Operators and Internet Service Providers but also Municipality Network Operators and Facility owners. As mentioned above, other types of actors outside the telecom sector have started to offer wireless access services.  In this paper we will describe and analyze these submarkets with different sets of actors and different ways to cooperate and to organize the value network. The description of these submarkets also includes type of markets segment, the value proposition, cost structure and profit potential.   We claim that new strategies for cooperation are needed in order to be able to offer public Internet access with high quality and capacity at low cost. This includes both 'technical' cooperation between wide area and local area network and, more importantly, cooperation in the business domain between different market actors.

Place, publisher, year, edition, pages
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Computer and Information Science
Research subject
URN: urn:nbn:se:kth:diva-31095OAI: diva2:402532
The International Telecommunications Society 17th Biennial Conference. Montréal, Québec, Canada. June 24th - 27th 2008
QC 20111117Available from: 2011-03-08 Created: 2011-03-08 Last updated: 2011-11-17Bibliographically approved

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Markendahl, JanMäkitalo, Östen
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