Mobile Internet Services: Integration Models and Structural Determinants

The overall purpose of this report is to contribute in developing theory related to the supply side of mobile and electronic commerce. We explore how mobile services are organized and which factors explain different choices in terms of supply side organization. Based on a theoretical framework called MAPIT, we particularly focus on how structural conditions affect organization of new services. We apply the framework in a multiple case study of five mobile services. As expected, we found that a number of different actors were involved in supplying mobile services through value creating networks. The value networks we identified showed constellations of both established and new actors, where different elements (organizations, activities, and transactions) were integrated in new ways. Integration and disintegration in the services we studied were aimed at creating value primarily by offering an additional distribution channel and by reaping economies of scale. The values created for customers were not always obvious however. In making decisions about how to organize mobile services, suppliers have to consider carefully how values can be created for consumers. THE ECONOMICS OF TELECOMMUNICATIONS This report is one of a series of papers and reports on telecommunication economics published by the Institute for Research in Economics and Business Administration (SNF) as part of its telecommunication economics program. The main focus of the research program is to study the deregulation process of the telecommunication industry, and the economic and organizational consequences of changes in markets, technology and regulation. Being started in 1992, the program is now in its fourth period ending in 2005/2006. The program is financed by Telenor AS.