Per Jonny Nesse

Assessment and optimisation of business opportunities for telecom operators in the cloud value network

Cloud computing represents a major change in how resources of information technology are delivered and consumed and will influence the telecom industry, its future services, business offerings and economics of the telecommunication. New revenues potentials from mediating cloud-based services are however less discussed, as well as the commonly accepted and completed methodology for this purpose is lacking. The objective of this paper is to clearly identify recommended roles for telecommunication companies (telcos) in the cloud value chain and to present a model for assessing and optimising innovative business opportunities. In particular, we show how the portfolio theory of modern investment science supports risk management in operation of telecom company-based cloud carriers for service brokering. We recommend a combined broker and carrier role to be a preferred cloud business model for a telco. Such combination is expected to represent the best value proposition for competing against cloud providers and ICT integrators. Further quantitative analysis indicates significant business benefits from differentiating and optimising provision of carrier grade and best effort network connectivity types for a given bundle of cloud services. This implies an efficient use of telco assets and satisfies an increasing demand for network performance in the business market. The novelty of the paper is the developed quantitative optimisation model as well as the analytical identification of the preferred telco role in cloud value network. Practical application of the research may improve dimensioning of technological assets, leading to higher cost efficiency and possibly higher degree of customer satisfaction. Copyright

Telecom industry in the cloud value chain: methods for assessing business opportunities

Cloud computing represents a major change in how IT resources are delivered and consumed and will influence the telecom industry, its future services and business offerings. Generating new revenues through offering cloud-based services is less discussed in the literature, followed by a lack of commonly agreed and complete methodologies for this purpose. In this paper we propose a three-step method combining qualitative and quantitative models for the assessment of telcos new business opportunities, in particular, a combined role of cloud broker and carrier.

Exploiting cloud computing — A proposed methodology for generating new business

Cost savings are frequently mentioned as the main driver for cloud computing due to reduced CapEx and OpEx through consolidated data centers, reduced HW/SW investments and IT staffing. Generating new revenues and business through offering cloud-based services are more seldom discussed. When addressing the former cost savings, methodologies like TCO (Total Cost of Ownership) are commonly applied. When addressing the latter, we see an incomplete and inexact methodology being used. This paper suggests a methodology for addressing new business opportunities from cloud computing, which may support Telcos in their exploitation activities towards SMEs or the enterprise market. A business model terminology is introduced briefly followed by a suggested business model framework. Finally, a case example from the VISION Cloud EU Project is briefly presented as an illustration of this model.

Management of Mobile Financial Services—Review and Way Forward

Mobile financial services (MFS) represent an area of innovation and strategic importance for global initiatives against poverty and mobile telecommunication providers. The World Bank wants financial inclusion of the poor, and the telecommunication providers seek profit. Firstly, this paper introduces a MFS terminology overview before reviewing previous research on MFS and the global MFS industry picture today. The literature review on mobile payment services shows that researchers from late 90s until now have focused mostly on technology and consumer adoption. Only recently the research has picked up on studying MFS as complex ecosystem with lots of tension and dependent on local circumstances. Secondly, we provide key learnings from the Easypaisa MFS case in Pakistan. This is an example of successful management of a complex ecosystem with processes and events that moved a MFS implementation from one state to another—from cash-based OTC solution to a digital mobile wallet-based solutions. The case study is based on interviewees with the mobile operator, agencies, and governmental organizations like Pakistan Telecommunication Authority, the largest social cash transfer program in Pakistan (BISP), and nongovernmental organizations. Finally we present the way forward for MFS including research recommendations.

Succeeding with contactless service innovations - strategic recommendations based on a comparative analysis of mobile business ecosystems in Norway

Contactless communication technology in mobile phones (e.g., near field communication) has a potential to simplify our everyday life by enabling services like mobile payment, ticketing and information sharing services. The recommendations in this paper are based on a comparative case study of previous mobile service ecosystems used in Norway. The findings of this study add insights into key success factors for the mobile network operator during the different business ecosystem evolutionary stages. The recommendations include the fact that mobile network operators can succeed in kick-starting contactless mobile payment services by taking a role as a trusted service manager, focusing on establishing the ecosystem and contactless payment service together with partners in the bank sector. Furthermore, in an expansion phase the mobile network operator must open up for collaboration and connect with a portfolio of aggregators, merchants and third party niche players offering secure and high quality services and applications.

Internet Service Provision and Content Services: Peering and Service Differentiation

We consider the relationship of Internet service providers (ISP) like network operators and content service providers in the Internet ecosystem. Currently the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth demanding video services. One issue here is that the further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision.

On economics of Internet service provision and content services: peering and service differentiation

We consider the relationship of Internet service providers (ISP) like network operators and content service providers in the Internet ecosystem. Currently the position of ISPs is challenged by the emergence of powerful content service providers, especially with the spreading of bandwidth demanding video services. One issue here is that the further investment in the network capacity may be hindered by prevailing business models that largely exclude the ISPs from sharing in the major cash flows resulting from content provision. We develop modeling tools for evaluation of business models of ISPs and present results of analysis of two models with the potential for generation of additional cash flows for ISP: paid peering and service differentiation. Firstly, we show that under certain conditions on the cost structure and the level of demand elasticity and uncertainty, it can be profitable for a powerful content provider to resort to paid content peering, thus transferring to the ISP a part of his content provision revenue. The resulting business model may provide substantial benefits to all major participants in this ecosystem: network providers, content and service providers and end users. After this, we consider the situation when ISP differentiates the service offer by engaging in content provision, thus entering in direct competition with content providers.

Beyond best effort: Choosing connectivity portfolio for cloud brokering platform by risk/profit tradeoff

We utilize portfolio theory of finance and investment science in order to show how a cloud broker can select a portfolio of connectivities in order to accommodate requirements for cloud services of users, who need better than the best effort Quality of Service (QoS). Following economic theory, we assume that cloud broker makes his decision by choosing appropriate tradeoff between profit and risk. The risk has two sources: uncertain demand and uncertain connectivity quality. Using Internet traffic data we show that it is possible to deliver considerably higher QoS by selection of connectivity portfolios that combine the best effort connectivity of different grades with premium grade connectivity.