ADAMANTIUM Business Model Definition     ADAMANTIUM Business Model Evaluation

ADAMANTIUM Business Perspectives

More information: ADAMANTIUM Deliverable D6.3-F.

Nowadays, even though IMS technology entails novel business opportunities for the mobile operators through packet-switched services, such as VoIP and IPTV, it lacks of user-centric management mechanisms, which will guarantee the provision of Perceived QoS (PQoS) at levels similar to the existing circuit switched (voice) services.

Towards enhancing IMS market share via PQoS-aware mechanisms in order to defeat the existing situation, ADAMANTIUM project has developed an IMS-compatible Multimedia Content Management System (MCMS) focused on performing dynamic cross layer adaptations for optimization of the user experience in terms of perceptual quality for IPTV and VoIP services. More specifically by enhancing the existing IMS capabilities with PQoS-aware cross layer adaptation techniques, it comes to minimize the existing market threats and weaknesses of mobile VoIP and IPTV, towards creating the necessary circumstances for their commercial and marketing success.

For mobile operators ADAMANTIUM proposed business model will be the means for increasing market penetration, market share, quality of innovative offered services and after all increasing revenues and profitability. For developing a suitable business model ADAMANTIUM has considered in details the current business and market perspective of mobile VoIP and IPTV services, and has consolidated and harmonized them within ADAMANTIUM's overall aims and scope.

The main role that is affected by ADAMATIUM is held by the mobile network operator. Network Providers' or Network Operators' business is based on users, who need communication and services. With an improved PQoS VoIP/IPTV service, more users will access the Network operator's mobile network and therefore they will get more profit from their network deployment (Network effects business model).

The ADAMANTIUM business proposal aims at improving and further enhancing the network effects business model currently been used by the majority of mobile network operators. ADAMANTIUM does not aim to introduce a completely new and innovative business model, which currently established key actors will hesitate to adapt, but it targets to the business evolution of the existing ones within the newly defined market dynamics.

Thus ADAMANTIUM business model, may be considered as an enhanced and extended network effects business model, which broadens the scope of business and operation processes while defining mobile operators' steps for achieving operational excellence on quality delivery.

The newly formed ADAMANTIUM business model creates a new Marketing Mix for the mobile operators through which new market challenges are met and new targets are attained:

• Product

An intelligent and PQoS-aware service, which is capable of adapting in real time its perceived level of QoS, aiming to provide optimized quality of experience in mobile VoIP and IPTV offered services.

• Place/Distribution

Mobile network operators along with corresponding service providers have already a well-established network of sales points and agents which can accommodate and facilitate the promotion and selling of ADAMANTIUM achievements. No additional changes are required in the existing distribution network and used techniques. Similarly, local dealers who in the meanwhile should have been trained to become familiar with the new quality improved services of mobile VoIP and IPTV may facilitate the entire distribution-advertising process.

• Price

The pricing models to be adopted by the market exploitation of ADAMANTIUM proposal should contribute towards balancing prices and demand, meaning that mobile operators as service providers should define the optimum strategy between charging high prices to increase margins, but not so high as to reduce the overall demand. This pricing strategy could also include the identification of the most profitable pricing plans for the services to be offered: monthly subscriptions, only by usage, packages of minutes, flat rates. Regarding flat rates, in pure mobile services, this pricing type has been introduced by some operators already, and the trend towards more flat rates pricing for all kinds of services is increasing.

• Promotion

Mobile network operators already posses a well-established network of sales points and agents which can accommodate and facilitate the promotion of ADAMANTIUM proposed services at very low extra cost. Furthermore additional ways of promotion might be chosen like Web-site/Internet promotion, advertising means, and participation in several events of commercial interest as conferences, meetings, exhibitions.