University of Oulu

P. Ahokangas et al., "Business Models for Local 5G Micro Operators," in IEEE Transactions on Cognitive Communications and Networking, vol. 5, no. 3, pp. 730-740, Sept. 2019. doi: 10.1109/TCCN.2019.2902547

Business models for local 5G micro operators

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Author: Ahokangas, Petri1; Matinmikko-Blue, Marja2; Yrjölä, Seppo;
Organizations: 1University of Oulu, Oulu Business School, Martti Ahtisaari Instute, P.O. Box 4600, FI-90014 University of Oulu, Finland
2University of Oulu, Center for Wireless Communications, P.O. Box 8000, FI-90014 University of Oulu, Finland
3Aalto University, Department of Communications and Networking, Box 11000 (Otakaari 24), FI-00076 AALTO, Finland
Format: article
Version: accepted version
Access: open
Online Access: PDF Full Text (PDF, 0.8 MB)
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Language: English
Published: IEEE Communications Society, 2019
Publish Date: 2019-12-20


5G will change the mobile communication business ecosystem by introducing location specific high-quality wireless networks that can be operated by different stakeholders. This development will change the traditional business models and ecosystem roles, as well as open the market for new local mobile network operators. These operators, such as recently introduced micro operators, can target specific customers in different vertical sectors with closed 5G networks, serve mobile network operator’s (MNO) customers in high-demand areas on behalf of the MNO as a neutral host with open 5G networks, or mix different types of customers and offerings through various hybrid platform business models. This paper discusses business model options for local 5G micro operators, addressing also the different network deployment options and ecosystem constellations. Three generic 5G business models and respective value ecosystems are presented: 1) vertical business model and ecosystem; 2) horizontal business model and ecosystem; and 3) oblique business model and ecosystem. These business models are compared against the opportunities they address, drivers and boundaries of value they may generate, and sources and sustainability of advantages they represent. Finally, scalability, adaptability, and sustainability of the business models and ecosystems are examined.

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Series: IEEE transactions on cognitive communications and networking
ISSN: 2372-2045
ISSN-E: 2332-7731
ISSN-L: 2372-2045
Volume: 5
Issue: 3
Pages: 730 - 740
DOI: 10.1109/TCCN.2019.2902547
Type of Publication: A1 Journal article – refereed
Field of Science: 213 Electronic, automation and communications engineering, electronics
512 Business and management
Funding: This paper was presented in part at IEEE DySPAN [44]. This research has been financially supported by Business Finland in uO5G project and Academy of Finland in 6Genesis Flagship (grant 318927). The authors would like to acknowledge the contributions of the uO5G project consortium.
Academy of Finland Grant Number: 318927
Detailed Information: 318927 (Academy of Finland Funding decision)
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