The actual Telecoms one-sided business model is under pressure: tougher regulation, developing technology, potential new entrants, and advancing customer expectations. The traditional voice business is facing stagnating or even falling revenues and therefore in-creased voice usage is no longer sufficient to compensate for price deflation.
In the current one-sided business model, the telco buys equipment and content from sup-pliers, integrates them, and bills the end user for services. This reflects the traditional value chain in which value moves from left to right. The future business model breaks the traditional value chain. Value is created on the left and on the right side of a telco. This two-sided business model delivers value to and generates revenue from 3rd party service providers as well as end-users by providing an open platform that helps the service providers to interact with end-users in more effective ways. This model enables the genera-tion of new incomes and can be the solution to escape from an environment with decreasing prices and falling revenues. The telecommunication industry promises itself enormous economic potential and tremendous added values for all participants.
The aim of this paper is to show the challenges and opportunities of telecoms’ journey from one-sided to two-sided business models to reach a new era of growth. Both models will be analyzed by the business model canvas of Osterwalder and Pigneur. It will show that the telecommunication industry is able to gain much more power and new revenue streams than they do today.
Chapter 2 will present the theoretical foundations used in this paper for analyzing the un-derlying business models. In chapter 3 the theoretical models are adopted to examine the actual one-sided of the telecommunication industry. This includes the current economic situation, the resulting challenges, the telecoms’ core assets and capabilities and the conse-quential opportunities. Chapter 4 outlines the future two-sided business model as the result of this paper and ends with two examples of already established two-sided business processes.
Table of Contents
- 1 Introduction
- 2 Theoretical foundations
- 2.1 One-sided business model
- 2.2 Two-sided business model
- 2.3 Different business models and analysis tools
- 2.3.1 Porter's Five Forces
- 2.3.2 National Diamond
- 2.3.3 Porter's Four Corners Model
- 2.3.4 Business Model Canvas
- 3 The current one-sided telecoms business model
- 3.1 The telecommunication business model mapped by the business model canvas
- 3.2 Challenges daring the telecoms
- 3.3 Customer Data and Identity Management Telecoms' core assets and capabilities
- 3.4 Opportunities opening new ways for the telecoms
- 4 The future two-sided telecoms business model
- 4.1 The two-sided business model
- 4.2 The two-sided telecommunication business model mapped by the business model canvas
- 4.3 Examples of current two-sided telecommunication business models
- 4.3.1 Vodafone live!
- 4.3.2 Jamba - Premium SMS
Objectives and Key Themes
This seminar paper analyzes the transition of the telecommunications industry from one-sided to two-sided business models. It aims to identify the challenges and opportunities presented by this shift, utilizing established business model analysis frameworks.
- Evolution of telecommunications business models
- Analysis of one-sided and two-sided business models
- Challenges faced by telecom companies in adapting to new models
- Opportunities presented by two-sided models for growth and innovation
- Application of business model analysis tools
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the entire paper, likely outlining the core research question regarding the transformation of the telecommunications industry's business models and providing a brief overview of the structure and approach taken in the subsequent chapters.
2 Theoretical foundations: This chapter establishes the theoretical framework for understanding one-sided and two-sided business models. It likely introduces and defines these concepts, exploring their characteristics and differentiating features. It probably also introduces and explains various analytical tools such as Porter's Five Forces, the National Diamond, Porter's Four Corners Model, and the Business Model Canvas, which will be applied later in the analysis of the telecoms industry.
3 The current one-sided telecoms business model: This chapter delves into a detailed analysis of the prevailing one-sided business model within the telecommunications sector. It likely maps the current model using the Business Model Canvas, identifying its core components, value propositions, customer segments, and revenue streams. Furthermore, it probably analyzes the challenges and opportunities associated with this existing model, examining factors such as increasing competition, changing customer demands, and the potential for new revenue generation.
4 The future two-sided telecoms business model: This chapter shifts focus to the emerging two-sided business model, exploring its implications for the telecommunications industry. It probably presents a detailed analysis of this future model, again using the Business Model Canvas, to highlight its structural differences from the one-sided model. It is likely to showcase concrete examples of existing two-sided telecommunications business models such as Vodafone live! and Jamba - Premium SMS, offering practical illustrations of the discussed concepts. The analysis probably explores the potential benefits and risks of adopting such models, considering strategic implications and the necessary adaptations for telecom companies.
Keywords
Telecommunications, business models, one-sided, two-sided, Porter's Five Forces, National Diamond, Porter's Four Corners Model, Business Model Canvas, Vodafone live!, Jamba, Premium SMS, challenges, opportunities, industry transformation, revenue models, customer segmentation, value proposition.
Frequently Asked Questions: Analysis of Telecommunications Business Models
What is the main topic of this document?
This document provides a comprehensive preview of a seminar paper analyzing the transition of the telecommunications industry from one-sided to two-sided business models. It examines the challenges and opportunities of this shift using established business model analysis frameworks.
What are the key themes explored in the paper?
The paper explores the evolution of telecommunications business models, analyzing both one-sided and two-sided models. It investigates the challenges faced by telecom companies in adapting to new models, the opportunities presented by two-sided models for growth and innovation, and the application of various business model analysis tools.
What business model analysis frameworks are used?
The paper utilizes several frameworks, including Porter's Five Forces, the National Diamond, Porter's Four Corners Model, and the Business Model Canvas, to analyze the existing and future telecommunications business models.
What are one-sided and two-sided business models?
The paper defines and differentiates between one-sided and two-sided business models. A one-sided model focuses on a single customer segment (e.g., consumers paying for telecom services), while a two-sided model involves two distinct customer segments that interact (e.g., consumers and advertisers on a platform).
What is the current state of the telecommunications business model?
The paper analyzes the current one-sided telecommunications business model, mapping its components using the Business Model Canvas. It identifies the challenges (e.g., competition, changing demands) and opportunities (e.g., new revenue streams) associated with this model.
What is the future outlook for telecommunications business models?
The paper examines the future two-sided telecommunications business model, mapping it using the Business Model Canvas and comparing it to the one-sided model. It presents real-world examples such as Vodafone live! and Jamba - Premium SMS to illustrate this shift and discusses the potential benefits and risks of adopting such models.
What are the chapter summaries?
The document includes summaries for each chapter: Chapter 1 (Introduction) sets the stage; Chapter 2 (Theoretical Foundations) establishes the theoretical framework; Chapter 3 (Current One-Sided Model) analyzes the current model; and Chapter 4 (Future Two-Sided Model) explores the future model with real-world examples.
What are the key words associated with this paper?
Key words include: Telecommunications, business models, one-sided, two-sided, Porter's Five Forces, National Diamond, Porter's Four Corners Model, Business Model Canvas, Vodafone live!, Jamba, Premium SMS, challenges, opportunities, industry transformation, revenue models, customer segmentation, and value proposition.
What is the overall objective of the seminar paper?
The objective is to analyze the transition of the telecommunications industry from one-sided to two-sided business models, identifying the associated challenges and opportunities, and utilizing established business model analysis frameworks.
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- Sebastian Straube (Autor), 2010, Challenges and opportunities to the Telecoms Industry , Múnich, GRIN Verlag, https://www.grin.com/document/180403
