Mobile Network Operators and Cooperation A Tele-Economic Study of Infrastructure sharing and Mobile Payment Services

Abstract: Mobile network operators are currently faced with a number of challenges at the market. The revenues from voice services have decreased the last couple of years. Mobile broadband access services are being adopted and the demand is increasing. The increasing traffic volumes require investments in order to increase the network capacity. This development leads to a large interest in network solutions that can offer high capacity and low cost. Besides the use of more efficient radio access technology mobile network operators use strategies for network deployment and operation involving other market actors. Operators share networks with competitors or outsource network deployment and operation to other companies, e.g. suppliers of network equipment. In these examples the mobile operators cooperate about the networks, the relations to end-users are the same as if the operator would operate the network on its own.However, in other areas other actors enter the market for mobile services where mobile operators traditionally have been the dominant player. Handset manufacturers and Internet companies offer value added services and applications to the end-users. They also establish relations with customers of the mobile operators. Hence, mobile operators look into new technical solutions and services in order to reduce costs and find new services and sources of revenues. Many of the networking solutions and services require that the operator cooperates with some other actor.In this PhD thesis cooperation strategies of mobile network operators are analyzed including cooperation with competitors, customers and different types of partners. The partner can be a provider of a non-telecom service like public transportation, financial institutes or third parties taking intermediary roles. The main research questions in the thesis revolves around why and how mobile operators cooperate. The drivers for cooperation and the way the cooperation is organized is analyzed for a number of cases. Three types of services and markets are analyzed:- Public mobile broadband access services- Services and solutions for indoor wireless access- Mobile payment, ticketing and contactless servicesA number of technical solutions, business concepts and different types of cooperation and business scenarios have been investigated. Two overall research questions that are applicable for all cases of cooperation are identified for the analysis.- What are the main drivers for a specific type of cooperation?- In what ways can the actors organize the cooperation?