Future Mobile Internet Services: Business Model Scenarios

In this report we explore future business models for mobile internet services. Based on four different scenarios, we sketch out how future conditions in the mobile industry may influence value propositions, value networks, and financial aspects of mobile services. The four scenarios vary along two dimensions - technological development and social identity, and different combinations of these two dimensions provide us with four scenarios where quite different business models can be expected. Managerial implications within the four scenarios are discussed, and implications that cut across the four scenarios with relevance for all four future conditions are presented. The most important implications are the need for market knowledge and customer focus, and the necessity of strategically selecting business partners. Businesses that aim at creating a competitive advantage in the mobile industry must apply a customer centric perspective, and through this gain knowledge of current and potential customers’ preferences. At the same time, rapid technological development and the need for service complementarities increase the importance of interfirm relationships. 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.