Modes of Governance of New Service Development for Mobile Networks. A Life Cycle Perspective
39 Pages Posted: 18 Jan 2003
Date Written: 28 2002, 10
This paper focuses on governance modes for service development ofmobile telephone networks (GSM, WAP, GPRS, UMTS). 'Services' refer toservices embodying a specific content. The paper shows that the phaseof the life cycle of the network and the service affects the choice ofgovernance mode of new service development projects. Governance modesinclude internal development by the telecom operator, several forms ofcollaboration between telecom operator and service firm, and onlyproviding a network by the telecom operator to the service firm, whichthen develops and provides its services (external). In this paper amodel is developed for the governance mode of service development indifferent phases of the life cycles of the mobile network and service,based on the degrees of uncertainty and urgency involved in thenetwork and service development processes. Four cases are presented ofservice development projects for mobile telecom networks. These casesindicate that the number of redesigns and the level of communicationcosts in collaboration projects indeed depend on the degree of urgencyand uncertainty involved in these projects, which are in turn affectedby the life cycle of the network and service.
Keywords: collaboration for service development, mobile networks, product and service life cycles, portfolio selection, technology adoption
JEL Classification: M, M10, L2, L1
Suggested Citation: Suggested Citation