Opportunities in the digital economy: a new value chain and services for mobile telecom operators

The advent of the digital economy has brought about radical changes in traditional business channels and operations in several industries. This paper reviews opportunities and challenges that the digital economy has opened in the telecommunication industry in general, and more specifically for mobile telecom operators. It explores the key strategies and technological factors that are guiding the reshaping of the business models for mobile telecom operators, and discusses ongoing changes in the traditional mobile value chain. In addition to presenting a conceptual overview of emerging business models, the paper describes a methodological approach for determining the range of services, customers and product options that will be successful in the new mobile-business environment. The strength of this approach lies in its ability to closely meet the needs of the digital economy’s more sophisticated customers, and therefore increase the potential success of the new business models.