Comparison of Business models CIS 8401 - Mobile Commerce and Applications Franz Altmann
Mar 31, 2015
Comparison of Business models
CIS 8401 - Mobile Commerce and Applications
Franz Altmann
Outline
Busidess model Definition Regional and Cultural Differences Business Models in Europe Business Models in South Korea
Definition
A business model is the abstract description of a business.
It consists of mobile services and technologies, core expertise and strategies of multiple players, and, revenue generation and sharing.
“how to make money”
Regional and Cultural Differences
Use of mobile services varies amoung countries/regions, due to:Different penetration rates of fixed internetIn Europe SMS-Services reduce the demand for
other sufisticated applications & servicesDifferent affinity for Gadgets,…Different relations amoung Device manufactorers,
wireless carriers and content providers…
Partner- & Relationships in different countries/regioins
Carriers and manufactorersAsia: Central role of carriersEurope: Carriers are ‚passive‘ technology
receiver Carriers and content providers
Asia: working close togetherEurope: carriers do it themselves or provide
a channel for content providers
Services in Europe
Example T-Mobile in Germanyvoice and now also 3G Video callsMobile TVMobile InternetNavigation ($1.35 p.R.)E-MailSMSMMS
Short Messaging
Standard SMSTariffs cover the cost of sending the SMS
within the operator network of the sender and the interconnection fees on the other operator networks
Premium SMSContent/service provider receives a
proportion of the revenue paid by the user to the network operator
SMS Applications
Information Alerts Travel updates, news alerts, stock alerts,...
Customization Services Logos & screen savers, ringtones & music, ...
Communities Personal chat, dating, private consulting,…
Entertainment Quiz & games, SMS voting, jokes & cartoons,.
Mobile Marketing Direct marketing, special promotions, ...
M-Commerce tickets, online purchases, pay-per-view web-content,...
Business Models in Europe I
Classical Model 1 Classical Model 2
Business Models in Europe II
„new“ business model
Pricing at T-MobileTariff Max Relax100 Basix E-Mail
(opt.)
Monthly price $60 $38 $13 $5.4
Inclusive minutes
Unlimited, calls to different mobile nets $.4 per m.
100 -- --
Price per minute over limit
-- $.53 in all nets Between $.12 and $.8 depending on net and time
--
Messaging Sms: $.26 in different nets, $.53 per MMS
Sms: $.26 in different nets, $.53 per MMS
Sms: $.26 in different nets, $.53 per MMS
--
Revenues and Pricing
There are often multidimensional tariffs in mobile communications.
Business Model in South Korea
Carrier centric like DoCoMo‘s i-Mode Very rich content with exclusivity agreement
with pop stars and with TV channels. Shorter films versions and Director‘s cut versions
Instead of charging monthly subscription prices in addition to per data packet transmitted as in Japan, Korean operators only charge per data packet transmitted.
No subsidized devices
Services
1 Chatting/Meeting/Broadcasting
3 Game/Download Contents
4 Music/Picture/Photo
5 Sports/Fortune/Cartoon
6 Location/Traffic/Travel
7 News/Study/Life/Shopping
2 Stocks/Lottery/Finance
8 Adult Club
NATE-Basic
( Menu OK Back )
Personal Information Mgmt.,
WEB Mail Link, Personalized
Menu automatically shown by
User’s frequent hits
Mobile Chatting, Dating Service,
Card, Messaging, Entertainment
Info., NATE Air
Stocks Quotes & Trading,
Banking, Asset Management,
Loan, Insurance, Mobile Intranet
Various kinds of games,
VM (Virtual Machine) based
Download Contents Group
Character download, Ring tone
download, Karaoke, Photo Mail,
Photo Meeting
Sports News Flash, MLB/KLB,
Soccer, Horse racing, Humor,
Cartoon, Fortune-telling Service
Discovery of One’s whereabouts.
Traffic Condition, Area Info.
News Group, Weather, E-book,
Dictionaries, English, Recruiting
Info. Coupon, Ticket Purchasing,
Ladies’ menu, Lottery
Contents Assortment only for
Adults
Information Retrieval,
Promotion SiteMy home, Mail Search, Event
Popular Mobile Internet Contents (multiple choice)
96.8%45.4%
42.1%37.1%
20.6%19.9%
13.9%11.5%
7.6%6.4%
5.5%4.8%
4.8%3.4%
3.0%
0% 20% 40% 60% 80% 100% 120%
Ring tone/Melody
Music
Picture download/transmission
Game
Information search
Weather info
Moving Image
LBS
Mobile banking
Telematics
Chatting/Community
Shopping/Reservation
Stock/Investment
Education/e-Book
Pricing of mobile Internet The most popular payment system for the wireless
internet use is ‘time-based charge’ system (41%), followed by ‘access-based charge’, ‘fixed charge’, and ‘data packet-based charge’ with 20.4%, 19.9%, and 17.1% respectively.
9.9%
2.6%
47.1%
23.7%
16.6%
5.8%
37.0%
25.9%22.7%
8.5%
1.7%
41.0%
19.9% 20.4%17.1%
Time-based Fixed Access-based Data packet-based Others
2002. 9 2003. 6 2004. 9
Questions?!?