Comparison of the 3 business games
played (MOB, Cesim, Simobitz):
Model vs. Real World
S-38.042 Seminar on Mobile operator strategies and games
Autumn 2003
Mathias Tallberg
Lin Huibin
Valtteri Hietaluoma
mtallber@netlab.hut.fi
huibin@cc.hut.fi
ahietalu@cc.hut.fi
Overview
•
•
•
•
•
•
Introduction
Model vs. Real World: MOB
Model vs. Real World: Cesim
Model vs. Real World: Simobiz
Conclusions
Q&A
Introduction (1/2)
• A business game can not exactly tell how the
future will turn out
• But, it can be used to:
–
–
–
–
–
analyze business constraints
dependencies
and possible futures
help to gain better understanding of businesses
improve teamwork
• And, playing the games can:
– give valuable feedback
– be fun
Introduction (2/2)
• ”The purpose of a teaching simulation is to
convey experimental lessons transferable to the
real world” (Lane 1995)
• ”The game [simulation] is valid to the degree that
the learning objectives are achieved by the
participants” (Peters et al. 1998)
• The game should be as realistic as
possibleImportant to keep in mind:
– not too complex
– not too simple either
– where to draw the line (complexity vs. simplicity)
Model vs. Real World: MOB (1/2)
• Elementary prototype
• Domain specific
• Models the business and markets of mobile
operators
• Special focus on new data services (much to be
implemeted yet)
• Usability a big issue!
Model vs. Real World: MOB (2/2)
Model
Real World
The competitors pricing (for consumers) not
known
You know exactly how competitors price (for
consumers) and can react accordingly
For data block, flat-rate and usage (in MB) based
pricing, no usage based on time available (e.g. for
HSCSD)
HSCSD and GPRS used, Sonera using pricing
schemes based on time based usage (WLAN)
etc.
The same pricing scheme for WLAN and cellular
data
Different price schemes for WLAN and cellular
data
In the beginning all players have the same
amount of capital, are of the same size etc.
Not true in the real world. Often a market leader
followed by challengers
Roaming not implemeted
Roaming a very important part of the real world
operation of mobile operators
Mobile content not implemeted
The mobile content business will become more
and more important in real life
The standards for profitability is unclear for
players
Operators usually know the key factors that will
affect the profitability
The size of the consumer market not known
The size of consumer market quite well known
Debt included when counting EBIT
Financial costs such as debt should not be
included when counting EBIT
Model vs. Real World: Cesim (1/2)
• More generic than domain specific
• Mobile, fixed-line, and broadband Internet
connections
• Cesim been working with telecom industry since
mid-90’s
• Been developed with the leading Finnish
telecom operators
• Usability and material are quite
good…(maximizing the experience of the game)
Model vs. Real World: Cesim (2/2)
Model
Real World
Messaging not considered as a separate
item
Messaging (e.g. SMS and MMS) very
important for the operator
Handset subsidies considered
Broadly used, Finland an exception
Not separating ADSL- and mobile network
backbones from each other
Separation made
The cost for the backbone too big
compared to the access network
Not the case in real world
Different pricing for new and old customers
Hardly in real life
Investment decisions made according to
customer satisfaction
Investment decision made according to
other issues (quite many)
Free airtime for new subscribers
Also the case in real world, at least in
Finland
The enhancement in technologies not
considered (EDGE, WCDMA etc.)
This is currently a very important part of the
mobile operator business (future strategies
etc.)
Model vs. Real World: Simobiz (1/2)
• Domain specific
• On mobile networks and markets
–
–
–
–
Includes handset subsidies and different handsets
Number of participants fixed: 3 operators
2 market segments
2 geographic zones etc.
• Usability a big issue!
• Good background material, maybe a little too
much?
• We did not play using all the aspects of the
game…
Model vs. Real World: Simobiz (2/2)
Model
Real World
Handset subsidies and choice of which
handsets to sell (the handset models
changes during the game)
Not in Finland, but the true for the rest of
the world!
MVNO’s considered
Due to deregulation, MVNO’s a big part of
the mobile operator business globally
2 different geographical areas (cities and
rural), makes the model more realistic
Different areas need to be carefully
considered by mobiloe network operators
UMTS licensing considered
Has been a big part of current mobile
network operators
Restircted to 3 operators
This is probably a good average, but this
does not have to be the case
Traffic forecasting for GSM and UMTS
according to plans, geocraphical area, and
market segment. (Quite complicated and
difficult to do)
Traffic forecasting is a difficult and big issue
also in real life…
Domain specific, but roaming issues not
considered
Roaming very important in real life…
Conclusions
• Mobile market is a complex non-linear adaptive system
• A business game can not exactly tell how the future will
turn out
• The game should be as realistic as possible (keeping in
mind simplicity vs. complexity)
• MOB: an elementary prototype, usability an issue
• Cesim: mature, more generic than domain specific
• Simobiz: domain specific, usability an issue
• Easy to find differences between model and real world
• But, can be very hard to model the real world into a
business game
Discussion