Abstract
<p><strong>Purpose:</strong> The article studies a possible innovative business model for sustainable competitive advantage in current communication technologies.</p><p><strong>Methodology/Approach:</strong> This ethnographic approach consists of contextual interviews with company managers and specialists. Scientific observation and comparison took preference over other methods for the evaluation of results. Comparison methods were used for comparing price levels of telecommunication services within OECD countries and used for characterizing virtual operators.<br />This method of modelling was applied to both corporate process-design and functions.</p><p><strong>Findings:</strong> This paper proposes a normative model as the foundation for a virtual operator that would be generally applicable by any potential newcomer to the budding virtual telecommunication market.</p><p><strong>Research Limitation:</strong> Business model innovation in the virtual mobile operator area is a quite new concept, which is still under development. For that reason the validation of the model has not been fully completed until now.</p><p><strong>Originality/Value of paper:</strong> The paper demonstrates this quite new approach to business model development and its possible application in the area of virtual mobile operators.</p>
Highlights
The establishment of a new business model in a newly developing business area such as mobile operator network services is always a great challenge both for newcomers and incumbents
Considering the establishment of a new business model is relevant in situations where obsolete business models no longer reflect customer needs
The paper deals with the determination of business innovation model possibilities by creating sustainable competitive advantage in the branch of contemporary information and communication technologies
Summary
The establishment of a new business model in a newly developing business area such as mobile operator network services is always a great challenge both for newcomers and incumbents. The mobile virtual operator establishment implemented some quite new business models, ambushing the existing oligopoly structure of operators while offering quite cheap and flexible services. This so called ‘‘disruptive innovation’’ represents a process whereby a smaller company with fewer resources may successfully challenge established incumbent businesses (Christensen, Raynor and McDonald, 2015). The normative model describing the key procedural steps for the establishment of virtual mobile operator represents the main benefit of this paper These conclusions are supported by the recent development of the market share of virtual mobile operators in the Czech Republic as shown the Table 1
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