Comparison of Business models CIS 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 internet In Europe SMS-Services reduce the demand for other sufisticated applications & services Different affinity for Gadgets,… Different relations amoung Device manufactorers, wireless carriers and content providers …

Partner- & Relationships in different countries/regioins Carriers and manufactorers Asia: Central role of carriers Europe: Carriers are passive technology receiver Carriers and content providers Asia: working close together Europe: carriers do it themselves or provide a channel for content providers

Services in Europe Example T-Mobile in Germany voice and now also 3G Video calls Mobile TV Mobile Internet Navigation ($1.35 p.R.) SMS MMS

Short Messaging Standard SMS Tariffs cover the cost of sending the SMS within the operator network of the sender and the interconnection fees on the other operator networks Premium SMS Content/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 1Classical Model 2

Business Models in Europe II new business model

Pricing at T-Mobile TariffMaxRelax100Basix (opt.) Monthly price$60$38$13$5.4 Inclusive minutes Unlimited, calls to different mobile nets $.4 per m Price per minute over limit --$.53 in all netsBetween $.12 and $.8 depending on net and time -- MessagingSms: $.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 DoCoMos i-Mode Very rich content with exclusivity agreement with pop stars and with TV channels. Shorter films versions and Directors 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 3Game/Download Contents 4Music/Picture/Photo 5Sports/Fortune/Cartoon 6Location/Traffic/Travel 7News/Study/Life/Shopping 2Stocks/Lottery/Finance 8Adult Club NATE-Basic ( Menu OK Back ) Personal Information Mgmt., WEB Mail Link, Personalized Menu automatically shown by Users 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 Ones 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 Site My home, Mail Search, Event

Popular Mobile Internet Contents (multiple choice)

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.

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