Airtel Zero: Data Pricing, Two Sided Markets Led Business Models and Net Neutrality

2016 ◽  
pp. 1-12
Author(s):  
Arvind Sahay
Keyword(s):  
Web Sites ◽  
Business Models ◽  
Service Providers ◽  
Free Access ◽  
Net Neutrality ◽  
Data Traffic ◽  
Mobile Data ◽  
Data Services ◽  
Mobile Operator ◽  
Two Sided Markets

Airtel, the leading mobile operator in India was going to launch the “Airtel Zero” platform that would charge service providers and OTT providers on the internet for mobile data traffic but would allow end consumers free access to the web sites that were signed up for the platform. The case revolves around the questions of pricing these data services to the service providers in a market where the price to one set of customers (the end consumer) was not independent of the price to another set of customers (the OTT service providers) - typical of two sided markets. Issues of net neutrality and competition have been considered alongside.

Internet Neutrality

2016 ◽  
Author(s):  
Maria Löblich
Keyword(s):  
High Speed ◽  
Business Models ◽  
Service Providers ◽  
The United States ◽  
The Internet ◽  
Communication Studies ◽  
Net Neutrality ◽  
Internet Service Providers ◽  
Internet Service ◽  
Internet Neutrality

Internet neutrality—usually net(work) neutrality—encompasses the idea that all data packets that circulate on the Internet should be treated equally, without discriminating between users, types of content, platforms, sites, applications, equipment, or modes of communication. The debate about this normative principle revolves around the Internet as a set of distribution channels and how and by whom these channels can be used to control communication. The controversy was spurred by advancements in technology, the increased usage of bandwidth-intensive services, and changing economic interests of Internet service providers. Internet service providers are not only important technical but also central economic actors in the management of the Internet’s architecture. They seek to increase revenue, to recover sizable infrastructure upgrades, and expand their business model. This has consequences for the net neutrality principle, for individual users and corporate content providers. In the case of Internet service providers becoming content providers themselves, net neutrality proponents fear that providers may exclude competitor content, distribute it poorly and more slowly, and require competitors to pay for using high-speed networks. Net neutrality is not only a debate on infrastructure business models that is carried out in economic expert circles. On the contrary, and despite its technical character, it has become an issue in the public debate and an issue that is framed not only in economic but also in political and social terms. The main dividing line in the debate is whether net neutrality regulation is necessary or not and what scope net neutrality obligations should have. The Federal Communications Commission (FCC) in the United States passed new net neutrality rules in 2015 and strengthened its legal underpinning regarding the regulation of Internet service providers (ISPs). With the Telecoms Single Market Regulation, for the first time there will be a European Union–wide legislation for net neutrality, but not recent dilution of requirements. From a communication studies perspective, Internet neutrality is an issue because it relates to a number of topics addressed in communication research, including communication rights, diversity of media ownership, media distribution, user control, and consumer protection. The connection between legal and economic bodies of research, dominating net neutrality literature, and communication studies is largely underexplored. The study of net neutrality would benefit from such a linkage.

Describing the Critical Factors for Creating Successful Mobile Data Services

2011 ◽  
pp. 204-219
Author(s):  
Anne Tseng ◽  
Jukka Kallio ◽  
Markku Tinnila
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Customer Relationship ◽  
Critical Factors ◽  
Mobile Data ◽  
Mobile Data Services ◽  
Data Services ◽  
Key Characteristics ◽  
The World ◽  
Services Innovation

Mobile operators play a central role in the development of the mobile data services market. They have primary access to the customer relationship, a key source of revenue, and are responsible for how revenue is distributed to other participants in the value chain. As a result, a successful operator-driven business model is essential to the survival of the mobile data industry. The purpose of this chapter is to describe the critical factors that have influenced the results of operators based on countries that have been at the forefront of mobile data services innovation. Then, by comparing the key characteristics of operator-driven business models in these four cases around the world, we will describe the critical factors used in designing successful mobile data services.

scholarly journals Wi-Fi a simple and efficient way for offloading data traffic in mobile networks

2013 ◽  
Vol 2 (1) ◽  
pp. 16-23
Author(s):  
Irena Malolli ◽  
Kozeta Sevrani
Keyword(s):  
Video Compression ◽  
Mobile Networks ◽  
Traffic Management ◽  
Business Models ◽  
Smart Devices ◽  
Technical Solution ◽  
Data Traffic ◽  
Management Tools ◽  
Mobile Data ◽  
High Data

Mobile data traffic is significantly increased year by year due to a number of factors including new smart devices, new applications such as M2M, the so-called “always-on” applications and services etc. In addition the recent studies tell us that the forecasts for mobile data traffic in near future will be tenfold higher, while the revenue for this market is expected to be increased only twofold. This trend raised a number of challenges for the mobile network operators (MNOs) in the world and in our region. Different technical and commercial solutions are discussed and developed and / or under developing. The first idea how to cope with high data traffic is to increase the network capacities. Even this is a direct traditional way as a technical solution it is too expensive and time consuming. Alternative ways to cope with data traffic in order to satisfy consumer demand and to keep key performance indicators are under developing. Some solutions in place are linked with traffic management tools such as data optimization, throttling, filtering, caching, video compression etc. In addition, new pricing policies and the adoption of the appropriate business models in new era of mobile data traffic are in the process. On top of the ways mentioned above or alternatively, Wi-Fi is considered as a simple way of data traffic off-load in mobile networks. In this article, we will identify the positive aspects of Wi-Fi offload versus other traffic management tools and draw some conclusions. We will give some recommendations how MNOs improve the situation for high data traffic through Wi-Fi offload solution, how Wi-Fi offload is related with other commercial aspects and quality of service in order to meet the customer satisfaction.

scholarly journals Efficiency Perspective on Telecom Mobile Data Traffic

2020 ◽  
Vol 5 (1) ◽  
pp. 38-44 ◽  
Author(s):  
Riko Hendrawan ◽  
Kristian WA Nugroho ◽  
Gayuh T Permana
Keyword(s):  
Service Providers ◽  
Negative Impact ◽  
Efficiency Score ◽  
Digital Transformation ◽  
Data Traffic ◽  
Mobile Data ◽  
Digital World ◽  
Dea Method ◽  
The Impact ◽  
Over The Top

Objective – The global industry is transforming into a digital world, evidenced by digital transformation performed by almost all of the industry sectors. One of the digital drivers is the support of connectivity provided by the telecommunication industry. The increasing mobile subscribers, along with the growth of mobile data traffic, is the sign of digital transformation itself. However, the rise of OTT (Over the Top) service providers tends to acquire the revenue share of the current telecom industry, seeing the trend of voice and SMS revenue that projected to decline. Methodology/Technique – This research is intended to measure the impact of increasing mobile data traffic that mostly caused by OTT services to telecom efficiency. The efficiency measurement & analysis were performed using the Stochastic Frontier Approach (SFA) & Data Envelopment Analysis (DEA) method. Findings – By using the SFA method, Maxis (Malaysia) got the highest efficiency score (0.98), followed by AIS (Thailand) with efficiency score 0.94 and Indosat Ooredoo (Indonesia) as the least efficient telecom provider (0.5). However, by using the DEA method, TLKM (Indonesia) got the highest efficient (0.98), and Celcom Axiata (Malaysia) was the least efficient (0.73/0.8). Novelty – The compelling results of this study are variable total asset variable had a significant negative impact on the efficiency score, and the variable of mobile data traffic was not significantly impacting the efficiency value (t-Ratio 0.71). Type of Paper: Empirical. Keywords: Telecom Operators; Efficiency; Mobile Data Traffic Reference to this paper should be made as follows: Hendrawan, R; Nugroho, K.W.A; Permana,G.T. 2019. Efficiency Perspective on Telecom Mobile Data Traffic, J. Bus. Econ. Review 5(1) 38 – 44 https://doi.org/10.35609/jber.2020.5.1(5) JEL Classification: M10, M15, M19.

Describing the Critical Factors for Creating Successful Mobile Data Services

2009 ◽  
pp. 506-517
Author(s):  
Anne Tseng ◽  
Jukka Kallio ◽  
Markku Tinnilä
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Customer Relationship ◽  
Critical Factors ◽  
Mobile Data ◽  
Mobile Data Services ◽  
Data Services ◽  
Key Characteristics ◽  
The World ◽  
Services Innovation

Mobile operators play a central role in the development of the mobile data services market. They have primary access to the customer relationship, a key source of revenue, and are responsible for how revenue is distributed to other participants in the value chain. As a result, a successful operatordriven business model is essential to the survival of the mobile data industry. The purpose of this chapter is to describe the critical factors that have influenced the results of operators based on countries that have been at the forefront of mobile data services innovation. Then, by comparing the key characteristics of operator-driven business models in these four cases around the world, we will describe the critical factors used in designing successful mobile data services.

scholarly journals Net Neutrality, Business Models, and Internet Interconnection

2015 ◽  
Vol 7 (3) ◽  
pp. 104-141 ◽  
Author(s):  
Jay Pil Choi ◽  
Doh-Shin Jeon ◽  
Byung-Cheol Kim
Keyword(s):  
Price Discrimination ◽  
Business Models ◽  
Service Providers ◽  
Neutral Network ◽  
Net Neutrality ◽  
Internet Service Providers ◽  
Internet Service ◽  
Market Framework ◽  
Second Degree

We analyze the effect of net neutrality regulation in a two-sided market framework when content is heterogeneous in its sensitivity to delivery quality. We characterize the equilibrium in a neutral network constrained to offer the same quality vis-à-vis a nonneutral network where Internet service providers are allowed to engage in second-degree price discrimination with a menu of quality-price pairs. We find that the merit of net neutrality regulation depends crucially on content providers' business models. More generally, our analysis can be considered a contribution to the literature on second-degree price discrimination in two-sided platform markets. (JEL D42, D43, D85, L51, L86, L88)

Impact of Violation of Net Neutrality on Indian Society

2016 ◽  
Vol 10 (2) ◽  
Author(s):  
Dr Debarshi Mukherjee ◽  
Dr Sonia Dhir
Keyword(s):  
Cross Sections ◽  
Service Providers ◽  
Indian Society ◽  
The Internet ◽  
Free Access ◽  
Net Neutrality ◽  
Internet Service Providers ◽  
Internet Service ◽  
The Masses ◽  
Consultation Paper

The principle of net neutrality has gained much attention since 2006 and again in 2015 in India when Telecom Regulatory Authority of India released its consultation paper in which it invited public opinions with regard to the regulation of free availability and access of content (text, voice and media) on internet by various service providers. The topic gained much attention when the established telecom corporations started suggesting that they should be paid by the internet content providers like Facebook, You tube, Google etc, for providing them the network for reaching the masses. Telecom companies argue that the internet content providers have been making high profits from low investments while they are the ones to have made high investments in building the infrastructure for these service providers to operate, due to which the internet service providers should share their revenues with the telecom companies. The violation of net neutrality will take place if any kind of discrimination takes place in terms of providing any type of data to the consumers. This means their very right to free access to information from internet will be violated. Violation of net neutrality has generated much uproar around the world since telecom corporations like Airtel demanded that telecom companies like Airtel should be paid by the content providers like Google, Facebook, Amazon etc for letting them display their content on internet to the mass consumers and generating huge profits. This violation means that differential pricing is likely to be practiced by the telecom firms in terms of charging both the internet service providers and consumers. Currently there are no laws in India which govern net neutrality which means the content available on internet can be accessed by anybody without any kind of discrimination. This study seeks to fulfill the knowledge gap by empirically analyzing the various cross sections of the society which are bound to get affected by the violation of net neutrality.

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