Innovative Mobile Operators' Business Model Classification in the Process of Transformation

Abstract

At the crossroads of the rapid developing mobile communications industry, mobile operators are sensitive to seize the trend of transformation in order to achieve its long-term sustainable development. The transformation of mobile operators calls for its own suitable business models. This paper begins by defining mobile operators' business model. Then, based on the relationship between business model and value chain theory, the paper offers an innovative way a two dimensions way considering both the elements of value chain and the customer demands to sort the mobile operators' business models. According to this method, the business models of mobile operators can be sorted as three kinds: the basic communication model corresponding to mobile communications service provider, and the information service model corresponding to mobile information service provider, and the business application model corresponding to the mobile integrated application provider. This paper attempts to describe the deeper structure of mobile operators' business model by doing the classification and thereby generates novel insights for researchers, managers and investors.