Mapping physical network roles to relative abstract roles in financial models : measuring business characteristics for internet-based services

In the current telecommunications domain, a clear trend towards vertical disintegration is observed, whereas multiple actors take up different roles in the value chain instead of one monopoly operator that is responsible for the full service delivery. Although this trend is observed in different network technologies (fixed, wireless, mobile, satellite) and for different applications (digital TV, mobile applications, health services, etc.), cross-domain case comparisons are hard to make due to the distinct definitions of roles and actors. However, despite this lack of common framework, clear similarities exist that could make room for a qualitative comparison of the different interaction models, which is the scope of this paper. By defining relative abstract roles (offer, delivery platform and support platform) and the interactions between these roles as revenue streams, different financial models are identified. By mapping them on physical network roles in specific cases, these financial models are analyzed with respect to business characteristics such as innovation, competition, sustainability and standardization. The paper concludes that Over-The-Top financial models stimulate standardization, while Single Interaction Point models are more sustainable and hence support technological innovation. Indirect Support models balance out advantages and disadvantages of the two other types of models, and are therefore more neutral.