How new billing processes reshape the mobile industry

Abstract

PurposeThe purpose of this paper is to explore how technological and strategic developments enable new billing processes for mobile content services.Design/methodology/approachInterviews with practitioners are used as input for designing different archetypical role division models for billing and process models. The potential of these process models to reshape the mobile industry is evaluated on three criteria: convenience for the end‐user; potential resource barriers; and the fit with strategic interests of the actors involved.FindingsBoth technological advances and the introduction of new roles and strategies in the mobile domain enable the emergence of alternative billing methods. While network operator‐centric models remain relevant in the short term, in the longer term they will co‐exist with other models in which the customer transaction is owned by the content aggregator, the content provider, the ISP or the payment provider.Research limitations/implicationsThe research demonstrates the relevance of analysis at the process level in assessing the feasibility of new role division models at the value creation level.Practical implicationsThe emergence of alternative billing providers is expected to change the power balance in the value network and assist in opening up the “walled garden”.Originality/valueThe analysis extends beyond existing discussions on billing in the mobile industry, which typically focus on the value network level, as the process level and the related resources are included. Moreover, the empirical data from the interviews with practitioners at various organizations provide new insights into the feasibility of these models in practice.