Telecom value chain dynamics and carriers' strategies in converged networks

Thesis (S.M.M.O.T.)--Massachusetts Institute of Technology, Sloan School of Management, Management of Technology Program, 2002.Includes bibliographical references (leaves 101-104).This thesis predicts the dynamics of value chains in the telecommunication industry and proposes telecommunication carriers' strategies in future converged networks. It predicts that large carriers will vertically integrate chains for the supply and management of network services. This will dis-integrate network service providers into back-end network providers and front-end service providers, pushing niche network service providers to outsource network operations from large carriers. Building on these forecasts, the thesis proposes the following strategies: First, carriers should do business as both front-end service providers and back-end network providers. Second, as a front-end service provider's strategy, carriers should reinforce their base of loyal customers by providing tailored supply and management services like "Dell Premier". Third, as a back-end network provider's strategy, carriers should create the value of a back-end network like "VISA", by providing services for the inter operation between front-end service providers. Fourth, carriers should also build complementary assets, such as "design-for-manageability" know-how/patents and the position to aggregate contents/applications/ ASPs, taking advantage of their operation volume in back-end network services.by Masahisa Kawashima.S.M.M.O.T