Trends in Communications: Telecommunications Economics ,

21/12/11 Daniele Antonioli 1

Trends in Communications

Telecommunications

Economics

21/12/11 Daniele Antonioli 2

Outline

● ICT Industry

● Positive and Negative feedback

● Free Business model

●Negative Pricing

21/12/11 Daniele Antonioli 3

ICT Industry

MARKET

E GOODS USERPROVIDER

21/12/11 Daniele Antonioli 4

ICT Industry

● Earn Money

● Make Business

● Return on their investment

● Reputation

21/12/11 Daniele Antonioli 5

ICT Industry

● Internet Usage

● Digital Era

● Information and Advertising

● E-Costs

21/12/11 Daniele Antonioli 6

Industrial vs Information Economy

Industrial Economy: ●Long Time Oligopolies

●Negative feedback

Information Economy:● Temporary Monopolies

● Negative feedback + Positive feedback

21/12/11 Daniele Antonioli 7

Positive vs Negative feedback

21/12/11 Daniele Antonioli 8

Positive feedback

Adoption of new Technologies●VHS vs Betamax●AC vs DC supply

Competition in Markets●Mobile telephony subscriptions

●Social Networks

21/12/11 Daniele Antonioli 9

Information Industry

21/12/11 Daniele Antonioli 10

Free Business Models

Business profit by giving something for nothing

1. Direct cross-subsidies

2. Three party market

3. Freemium

4. Non monetary markets

21/12/11 Daniele Antonioli 11

1. Direct cross subsidies

21/12/11 Daniele Antonioli 12

2. Three party market

21/12/11 Daniele Antonioli 13

3. Freemium

21/12/11 Daniele Antonioli 14

4. Non monetary markets

21/12/11 Daniele Antonioli 15

Negative Prices

21/12/11 Daniele Antonioli 16

Conclusions

Special thanks to Harald Overby

Associate professor @ NTNU Trondheim

Norwegian University of

Science and Technology