Towards a business model for cellular network and telecommunication operators: a theoretical framework

Abstract

Cellular networks and telecommunications bring major change to the way businesses are conducted. Mobility has become one of the main priorities for users and this has impacted on cellular networks and telecommunication operators (CNTOs). However, entrants into the cellular industry have been confounded primarily by inexistent or weak Business Models (BMs). Designing a BM for a CNTO is complex and requires multiple actors to balance different and often conflicting design requirements. Nevertheless, most research about CNTOs has been technically oriented and has mainly addressed the technological and engineering issues related to their infrastructure. Less attention has been given to the business model of CNTOs. Hence, there is a need to enhance our ability to determine what constitutes the optimal and most viable business model to meet the various strategic objectives and goals for these CNTOs. In this paper an overview of research into the cellular business model and the main issues to be resolved is provided. In particular, the authors propose guidelines as a basis on which to develop a more comprehensive definition which may lead to a consensus. Moreover, a generic model (V4 Model) is proposed for the BM of these companies based on value proposition, value architecture, value network and value finance.