Abstract
This paper analyzes the economic feasibility of a business model for multi-Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs), which is an envisioned scenario in mobile telecommunications markets supported by 5G networks. A business model for the provision of service to end-users through an MVNO using the infrastructure support of two MNOs is proposed. We analyze the proposal though a model that captures both system and economic features. As regards the systems features, an MVNO provides service to final users using the infrastructure support of two MNOs. The agreement between MVNO and MNOs is such that the MVNO will split the network traffic between the two MNOs and will pay to each MNO for the traffic served through its infrastructure. As regards the economic features, the incentives are modelled through the user utilities and the operators’ profits; and game theory is used to model the strategic interaction between the users’ subscription decision and the MNO network capacities decision. We conclude that such a model is feasible from an economic point of view for all the actors.
Highlights
In recent years, we have witnessed the rapid growth of the Mobile Telecommunications Market, thanks to the strong implementation of fourth-generation (4G) networks and the development of fifth-generation (5G) networks [1,2]
To test the above described, we propose a business model to be implemented by two Mobile Network Operators (MNOs) and an Mobile Virtual Network Operators (MVNOs), and we analyze the proposal using a strategic game (Section 2.3)
The results show that the users mean arrival in multi-MNO MVNO model is larger than the single-MNO model (λ > λ0 ); i.e., the MVNO can subscribe a higher number of users as shown in Figure 10, due to the fact the entry of the MNO 2 increases the MVNO network capacity
Summary
We have witnessed the rapid growth of the Mobile Telecommunications Market, thanks to the strong implementation of fourth-generation (4G) networks and the development of fifth-generation (5G) networks [1,2]. This has enabled the introduction of new business models and innovative types of services [3]. The architecture flexibility and scalability of those networks allow sharing any sort of network resource between Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) This supports a new generation of MVNOs as described in [4,5,6]. Global MVNO market revenue reached about $60.5 billion in 2018 [8] and is forecast to grow to $103 billion in 2023 [9]
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