Abstract. Future Internet evolution requires innovative strategic stances and the design of original business models from actors involved in the ecosystem. The study focuses on Internet Carriers, recently striving to make their business sustainable, and proposes to enclose in a single reference framework all the critical levers, either consolidated or innovative, such actors can employ in order to design their value proposition, value network integration, and financial configuration. The framework grounds its findings on multiple case studies, and, by presenting an insightful list of business model parameters for Carriers, sheds light on key emerging strategic and tactical trends in the Internet interconnections market.Keywords: Future Internet, Carriers, Business Model Design, Strategy, Interconnections.
IntroductionThe Internet's future development is not only heavily depending on its technological evolution, but also on business sustainability for the interconnection ecosystem the Web relies on, where various players characterized by fairly different economics are coexisting [3]. Current Internet technologies and business rules for network interconnection are proving to be no longer able to support the sustainable development of all actors along the value network, i.e. from the application to the network service providers. While Over-The-Top (OTT) providers develop high performance applications that create new revenues opportunities for them, Carriers have to cope with more and more constrainable traffic they cannot control and charge in order to recover corresponding extra network investment costs [18]. Indeed, peering agreements remain static and insensitive with respect to Quality of Service parameters, and operators rely mainly on the revenues coming from flat rate pricing in access networks.To lighten this quite gloomy picture, Internet Service Providers (ISP) or Carriers are required to elaborate innovative strategies, in turn resulting in original tactical choices at a business model design level. The present study, through collecting the multifaceted perspectives of 10 Carriers (integrated by the complementary view of 5 A Proposal of Business Model Design Parameters for Future Internet Carriers 73 OTTs), aims at disclosing such strategic and tactical decisions (either already consolidated in the current market practices, or innovatively derived from original stances) and present them in a comprehensive framework for to support Carriers in the business model design process from a Future Internet perspective.
MethodologyThe research leverages on two main methodological pillars: literature review and multiple case studies. The literature review focused on the significant and quite innovative stream of the broad Strategic Management theory. i.e. Business Model Design, posing the theoretical bases for the proposed Carriers model's building blocks. With reference to the empirical research methodology, case studies are defined [15] as "empirical inquiries that investigates a contemporary phenomenon within it...