The Future of mobile operators - New business models

Abstract

Research Question: This paper investigated business model innovation in telecommunication industry by analysing open business models that operators can implement to innovate and stay competitive in the market.  Motivation: The study tends to cover all strategically important aspects for mobile operators present in literature - from telecommunications market analysis (ITU, 2017; Sujata et al., 2015), the importance of business model innovation (Ghezzi, Cortimiglia & Franc, 2015) to collaboration models that raise innovation activities (Xu & Chen, 2015; Dittrich & Duysters, 2007; Weiblen & Chesbrough, 2015) and to complement them with examples from practice. Idea: The aim of this paper is to analyse open business models and collaboration strategies operators have with partners and to show that business model innovation in telecommunication industry is as important as technological innovation. Data: Research was conducted by analyzing various studies, reports, reviews, books, white papers and articles. Tools: To answer the research question, we used statistical data published by respected bodies - ITU, Eurostat, Ratel as well as from leading vendors in telecommunication industry Cisco and Ericsson and leading mobile operators such as Telekom Austria, Telenor, Vodafone. Findings: The study highlights the rising importance of business model innovation and proposes open business models operators can implement to increase internal innovation activities. Contribution: The study complements the open innovation literature, especially in the Serbian market where no similar analysis was performed. The findings of this study can help manages and directors refine internal innovation processes and propose collaboration models for their company.