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Repositioning in Value Chain for Smart City Ecosystems: -a Viable Strategy for Historical Telecom Actors
KTH, School of Information and Communication Technology (ICT), Communication Systems, CoS, Radio Systems Laboratory (RS Lab). KTH, School of Information and Communication Technology (ICT), Centres, Center for Wireless Systems, Wireless@kth.
KTH, School of Information and Communication Technology (ICT), Communication Systems, CoS, Radio Systems Laboratory (RS Lab). KTH, School of Information and Communication Technology (ICT), Centres, Center for Wireless Systems, Wireless@kth.
2015 (English)Conference paper (Refereed)
Abstract [en]

In a historical business model, Mobile Network operators (MNO) design their own network, own their infrastructure, operate the network and offer services on top of it; a voice-revenue dependent business. Now with the data provisioning, since the revenues associated with data do not comply with the pattern of increasing data usage in mobile networks, MNOs need new revenue streams. As a result, MNOs have started changing their business models by offering services besides their usual competences. This complicated approach has then forced them to think of possible cooperation patterns in order to benefit from horizontal collaboration with others, instead of being vertically integrated. On the Other hand, Telecom Equipment Vendors (TEV) used to design their business models in a vertical manner as well. TEVs would build and manufacture equipment and sell them to their customers in a Business-to-Business (B2B) fashion while in some cases operate the networks on behalf of their customers.

Looking for new markets and revenue streams, the future Smart Cities comprise a good opportunity for MNOs and TEVs. This opportunity then requires a new mindset among these actors. In the new mindset, these actors should accept to reposition themselves in the new value chain. This means that, in order to play a role that can not be overlooked, MNOs and TEVs should perform rather different blocks of the Smart City value chain. This paper intends to provide an analysis of how the traditional telecom actors (MNOs and TEVs) have changed their business strategy and repositioned in the context of the Smart City service provision. In order to do that, we will introduce the traditional telecom actors and the existing value chain, later on, smart city concept and use cases will be introduced, finalizing with an analysis of how the future smart city value chain and the repositioning of these actors.

Place, publisher, year, edition, pages
2015.
Keyword [en]
Business Model, Horizontalization, Repositioning, Value Chain, Smart City, Telecom Actor
National Category
Other Engineering and Technologies
Identifiers
URN: urn:nbn:se:kth:diva-190760OAI: oai:DiVA.org:kth-190760DiVA: diva2:952636
Conference
American Regional International Telecommunication Society conference, Los Angeles, USA
Note

QCR 20160816

Available from: 2016-08-15 Created: 2016-08-15 Last updated: 2016-08-16Bibliographically approved
In thesis
1. Coopetition for Mobile Service Provisioning: Is it about infrastructures, services or both?
Open this publication in new window or tab >>Coopetition for Mobile Service Provisioning: Is it about infrastructures, services or both?
2016 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

As a means of enhancing our everyday lives, ICT industry has caused and experienced significant transformations during past two decades. This transformation relates to technological advances within ICT, and beyond the ICT ecosystem. Wireless ICT is also not an exception in this regard. Accordingly, if we consider Internet of Things (IoT) as the main enabler for transformation, M2M is then the technological enabler of IoT that represent the Wireless ICT in the process of transformation.

In this thesis we benefit from the concept of Smart City as a place where Wireless ICT participates for digitalizing other industries. We investigate how smartification is taking place, where our findings show that wireless ICT mainly empowers other industries to provide M2M-enabled services. Consequently, this participation imposes major changes on the wireless ICT ecosystem itself. Therefore, we study the changes that are forming the “future wireless ICT”. We have studied cases from smart cities, and expanded our data collection by performing semi-structured interviews with experts and decision makers, as well as participating in multiple projects and workshops. Accordingly, we have benefited from two major theories for analyzing the collected data; namely ARA model and Five Forces framework.

Finally, we argue that traditional actors (i.e. MNOs & Vendors), first have to adopt value co-creation in new businesses. This means cooperation among these actors, which changes the Seller-Buyer relationship to Supplier-Customer, in which they co-create the value. Accordingly, we argue that the linear processes of creating value are inefficient in these new markets and value networks must be adopted instead. As a result, we introduce “vertical coopetition” as a dominant business relationship among traditional actors, and new entrants in future wireless ICT. As the main contribution of this thesis, we discuss the logic behind vertical coopetition while comparing it with horizontal coopetition.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2016. xviii, 93 p.
Series
TRITA-ICT, 2016:19
Keyword
Coopetition, ICT, Wireless, Co-creation, Value, Business
National Category
Telecommunications
Research subject
Information and Communication Technology
Identifiers
urn:nbn:se:kth:diva-189882 (URN)978-91-7729-064-3 (ISBN)
Presentation
2016-08-25, Aula C, Electrum, Kungl Tekniska högskolan, Kistagången 16, Kista, 13:00 (English)
Opponent
Supervisors
Note

QC 20160815

Available from: 2016-08-15 Created: 2016-07-22 Last updated: 2016-08-15Bibliographically approved

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