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Abstract

3G telecommunication operators’ challenges and roles: A perspective of mobile commerce value chain. Abstract. 3G technology has broken through the limitation, allowing a higher transmission rate and more complex e-commerce interactions.

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Abstract

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  1. 3G telecommunication operators’ challenges and roles: A perspectiveof mobile commerce value chain

  2. Abstract • 3G technology has broken through the limitation, allowing a higher transmission rate and more complex e-commerce interactions. • MC value chain is essentially the aggregation of the conventional MC value chain and Internet value chain.

  3. Introduction • Influenced by the bandwidth limitation of the 2G and 2.5G technologies, the WAP-based services were not successfully promoted. • As the marginal revenue shrinks and the market competition intensifies, 3G telecom operators must seek opportunities to create revenue aside from the conventional voice services.

  4. The definition of mobile commerce • Due to the fact that its development is still at an initial stage, there is no unified definition of mobile commerce. • Any transaction managed through mobile communication network or related to monetary values .

  5. The mobile commerce value chain • This value chain concept can not only be applied to the analysis of the enterprise’s internal value activities and the comparison of the activity cost with competitors, but also to the entire industry.

  6. The mc value chain’s roles • 1.Technology platform vendors • 2.Infrastructure and mobile equipment vendors • 3.Application platform vendors • 4.Application developers • 5.Content developers • 6.Content aggregators

  7. 7. Mobile portal providers • 8. 3G mobile network operators • 9. Mobile service providers • 10. Mobile equipment retailers • 11. Customers

  8. The roles on the value chain are illustrated in Fig. 1.

  9. The core member of MC value chain—3Gmobile network operators • 3G mobile network operators play the most critical role on the entire value chain.

  10. The challenges for and solutions by 3G

  11. The huge amount of the cost of 3G license • The issuing of 3G licenses has attracted attention from telecommunication operators. • The great cost of 3G licenses.

  12. The capital pressure canbe minimized by the following approaches: • 1. Mobile virtual network operators (MVNOs) • 2. Based on the 3G technology, provide pluralistic services to attract a large amount of uses by consumers.

  13. The cost of network infrastructure and the selection of network system • There are several standards of 3G network systems: WCDMA, CDMA2000, and TD-SCDMA

  14. Profit distribution on the value chain • MC value chain is the aggregation of the traditional mobile telecommunication value chain and the Internet value chain. • With most complicated composition of members, and closer interactions.

  15. NTT DoCoMo • Between mobile users and various cooperating companies, charging only limited commission and allocating most of the profit to the cooperating companies.

  16. Mobile number portability • Making the mobile telecommunication market totally a customer-oriented one.

  17. This issue can be resolved in two aspects: • 1. Passive aspect: Reduce the fee & add the services • 2. Active aspect: From customer’s perspective

  18. The competition of mobile virtual network operators • Resellers that do not own spectrum and real telecommunication networks and equipments.

  19. The MVNOs are divided into two categories: • 1. Other telecommunication operators: Without 3G licenses, they have to get into the market as virtual network operators. • 2. Non-telecommunication operators: Integrating their exclusive services and products and providing more pluralistic value-added services.

  20. 3G telecommunication operators advantages • 1.To lease limited equipments and reduce the operation scale. • 2.To improve products,services. • 3.Elevate the customers’ reliability. • 4.Lower-cost but high-quality. • 5.To provide more individualized and customized services.

  21. Voice service market is saturated and the profit is decreasing • The mobile voice service market is nearly saturated in every nation. • These value-added services generally comprise of 4 main categories: 1. mobile transaction services 2. mobile information services 3. mobile entertainment services 4. mobile messaging services

  22. If multiple values can be integrated into one service, it will be more attractive to consumers.

  23. The advantages and feasible roles of 3Gtelecommunication operators • 1.Network infrastructure, • 2.The dominance of related technologies • 3.Popularity of existing brands • 4.Established resell channels • 5.A large amount of ultimate users

  24. Value-added services provider • The biggestdifference between 3G and 2G or 2.5G system - transmission rate.

  25. Transaction support • 3G telecommunication operators play the role of an intermediator with a different function, between consumers and product or service providers.

  26. Mobile portal • When users browse the mobile Internet, the mobile portal run by the operator can be preset as the home page. • Advertisement can be another profit source.

  27. Conclusions and suggestions • 3G telecommunication operators not only have to serve as a network system and spectrum provider, but also have to develop into a ‘‘service-focused’’ instead of a ‘‘techniquefocused’’business model.

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