VALUE CREATION CHAIN FOR MOBILE MEDIA
Coventry University Enterprises (CUE)
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1. Basic Value Creation Chain of Mobile Media chain ...................................5
1.1
1.2
1.3
1.4
CONTENT............................................................................................... 5
APPLICATION DEVELOPMENT .................................................................. 5
WIRELESS NETWORK OPERATION ........................................................... 5
SERVICE/VALUE ADDED PROVISION........................................................ 6
2. Products in the Mobile Media sector ........................................................6
Personal digital assistants ..................................................................... 6
Mobile Phones .......................................................................................... 6
Mobile Media service packages ............................................................. 6
3. Actors in the Value Creation Chain of Mobile Media .................................7
3.1 CONTENT KEY ACTORS ............................................................................... 7
E-content developer ................................................................................ 7
Producers .................................................................................................. 7
Publishers .................................................................................................. 7
Media Companies .................................................................................... 7
Infrastructure providers ......................................................................... 7
3.2 Application development key actors ......................................................7
Software suppliers ................................................................................... 7
Infrastructure providers ......................................................................... 8
3.3 Network operation key players .............................................................8
Mobile interface application service providers ................................... 8
Platform vendors ..................................................................................... 8
Mobile Network Operators ..................................................................... 8
Internet Service Providers ..................................................................... 8
3.4 Service provision key players ................................................................9
Mobile service providers ......................................................................... 9
Valued added service providers ............................................................ 9
Mobile Entertainment Companies ......................................................... 9
4. Technologies used in the Value Creation Chain of Mobile Media ..............9
Software [Done by CUE] ........................................................................ 9
Platforms ................................................................................................... 9
Mobile Portals ........................................................................................... 9
INTERNET SERVICES ....................................................................................... 10
Hardware ................................................................................................. 10
5. Specific situations in regions/countries/worldwide ..............................11
5.1. GERMANY [DONE BY HDM]..................................................................... 11
5.2. GREAT BRITAIN...................................................................................... 11
Historical Development ........................................................................ 11
Current Situation ................................................................................... 11
Current Technological Standards ....................................................... 12
Legal Conditions .................................................................................... 12
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5.3. POLAND [DONE BY IMBIGS] ................................................................. 13
5.4. BULGARIA [DONE BY CUE] .................................................................... 13
5.5. INDIA [DONE BY MSRSAS] ................................................................... 13
5.6. Worldwide [done by HdM] ..................................................................13
6. Literature and Sources ..........................................................................13
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The Value Creation Chain of Mobile Media
Technologies needed in the Value Creation Chain of Mobile Media


Harware
Software
Content


Equipments handset
manufacturing
econtent/digital
information creation
 Infrastructure
providers
 Econtent developers
 Publishers, producers
 Media companies




Hardware
Software
Application
development




Software/network
Billing services
Operating systems
Software engineering
 Software suppliers
 Infrastructure providers
Hardware
Software


Hardware
software
Wireless Network
operation
Service/value added
provision






Internet portals/platforms
Mobile messaging and
billing
Mobile browsers
Traffic management
 Mobile Network operators
 Mobile interface application
service providers
 Platform vendors
 Internet service providers
 Infrastructure providers


Aggregation
Internet provision
services
Navigation services in
mobile portals
Entertainment
services
 Mobile service providers
 Valued added service
providers
 Mobile Entertainment
Companies
Actors in the value chain of Print Media
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1. Basic Value Creation Chain of Mobile Media chain
Mobile Media or Portable Media describes the 21st Century phenomenon of
viewing multimedia on a portable device at any location or when on the
move. The medium could be a mobile phone, a Person Digital Assistant
(PDA) or a portable media player which increasingly have become essential
requirements for the modern day business traveller or social user.
According to Doukidis G et all (2006), Mobile media , by definition, reside at
the interface between two major business areas: media publishing and
telecommunications.
1.1
Content
Content for mobile media and services has become an emerging trend in
media markets. Althought, mobile media usage has just started to rise,
there are many rapid developments taking place that suggest strong future
growth. ( Doukidis et all, 2006)
On the above mobile media value chain, content and software development
providers and enablers for the implementation of mobile services are
considered as separate units. It depends on the media companies how far
they will vertically or horizontally integrate or outsource these specific
competencies.
Content creation refers to two equally important aspects :the creative
part/development of e-content and the development/manufaturing of the
hadsets/components.
E-Content creation is the development of newsworthy, educational and
entertainment material for distribution which is later going to be converted
to electronic media material.
1.2
Application Development
Application Development in mobile media is a process program and
software product development to deliver the content to the end user. The
development environment is the set of processes and programming tools
used to create the program or software product. The term may sometimes
also imply the physical environment
1.3
Wireless Network operation
According to Amjad Umar (2004), wireless netwroks are enjoying
widespread public approval with a rapidly icreasing demand. Wireless
communication systems comprise three basic essentials : transmitters that
generated and send signals, antennas that radiate the electromagnetic
energy generated by the signals into the air and receivers that receive and
process the signals.
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1.4
Service/Value added provision
The provision of an value added competitive products depends very much
on the efficient aggregation of appropriate services. Successful Mobile
media sevices include a combination of Internet provision service,
Navigation services in mobile portals and Entertainment services
2. Products in the Mobile Media sector
The two most widely used categories of media devices that offering a broad
range of mobile media services are the PDAs and Mobile Phones.
Personal digital assistants
PDAs were originally designed as personal organizers but over the years
have become more sophisticated. Their main functions are :calculator,
clock and calendar, computer games, Internet, E-mails, radio or stereo,
video recording, recording notes, address book, and spreadsheet. Newer
PDAs have color screens and audio capabilities, enabling them to be used
as mobile phones), web browsers or media players. Many PDAs can access
the Internet, intranets or extranets via Wi-Fi, or Wireless Wide-Area
Networks (WWANs).
(http://en.wikipedia.org/wiki/Personal_digital_assistant)
Mobile Phones
A
mobile phone or cellular (cell)
phone
is
an
electronic
telecommunications device that connect to a cellular network of base
stations (cell sites), which is in turn interconnected to the public switched
telephone network (the exception are satellite phones).
(http://en.wikipedia.org/wiki/Mobile_phone#Mobile_phone_features)
Mobile phones also often have sophisticated features such as Internet
browsing, music (MP3) playback, personal organizers, e-mail, built-in
cameras and camcorders, ringtones, games, radio, Push-to-Talk (PTT),
infrared and Bluetooth connectivity, call registers, ability to watch streaming
video or download video for later viewing, and serving as a wireless modem
for a PC.
(http://en.wikipedia.org/wiki/Mobile_phone#Mobile_phone_features)
Mobile Media service packages
The most common services offered from Mobile Media companies are:
 News
 Information services: streaming hotline ,sports, weather forecast etc
 Entertainment: games, movies, music
 Internet radio
 Web cam: preview digital content, image manipulation software etc
 Communication and messaging
 Online TV
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 Online newspapers/magazines
(Dan Steinbock, 2005)
3. Actors in the Value Creation Chain of Mobile Media
3.1 Content key actors
E-content developer
Not all forms of content creation involve the use of a developer. Within the
games industry Developers are companies that create game content creating game design, graphic and audio content and game code. They can
be individuals and teams of individuals. A game development team
generally includes designers, artists, engineers and their manager (the
producer). Game Developers can be referred as studios and might include
two or three teams.
Producers
Producers are businesses or individuals who ensure that media product is
delivered on time and in the most effective manner. Effectively producers
act as project managers, they supervise the budget and plan the resources .
They maintain relationship with the Publishers with the respect of
delivering product on time and within agreed scale and quality.
Publishers
Publishers are businesses or individuals can invest finances in the publishing
of content and obviously assumes financial risk of the creation. There are
projects, where content developer self-funds the project. In this case
Publishers will invest in marketing and distribution. Usually Publishers
funds: advance royalty payments and thereby development of the content,
marketing and distribution. After the content is released publisher will retain
the control of intellectual property assets and is responsible for copyright
infringement and revenue settlements.
Media Companies
Media companies are companies who provide media content for different
uses including mobile use. Content they provide may vary from the
specialisation of the company and be anything including films, music,
pictures, books, texts, games, maps or special media content. Sometimes
media companies can act as the distributors of their own content.
Infrastructure providers
Infrastructure providers is the spectrum of suppliers who offers access
devices(eg. Handset manufacturers) or network equipment.
3.2 Application development key actors
Software suppliers
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They provide operating systems, implementation services for back-end
network management-oriented and front-end customer oriented services.
Infrastructure providers
Infrastructure providers’ facilities design as well as their choice on the
operating system affect decisions on the application development.
3.3 Network operation key players
Mobile interface application service providers
They extend internet application to mobile devices. Mobile interface
application service providers offer messaging and WAP gateways , mobile
browsers and software for mobile applications such as J2ME.
Platform vendors
The Platform Vendor develops, implements, manufactures, supplies, and
supports standard or customised platforms to the Platform Operator.
Mobile Network Operators
Mobile Network Operators provide the infrastructure for mobile
communications, the service billing and as well as interface with the
customers. They are ones which are in the contractual relationship with the
customers.
Sometimes customer care and billing is performed by the Virtual Network
Operators, who form a relationship of Mobile Network Operators for the
network capacity.
Mobile Network Operators can have a role of Internet Service Providers or
Virtual Internet Service Providers.
Mobile Network Operators can deliver media to the end user using mobile
network, e.g. GSM, 3G.
Internet Service Providers
An Internet Service Providers are business or organization that offers users’
access to the Internet and related services. They act as interface with the
customers and provide service billing.
A Virtual Internet Service Providers re-sell to the general public Internet
access purchased from a wholesale Internet Service Provider. The Virtual
Internet Service Providers’ are to provide any services beyond Internet
connectivity, such as e-mail, web hosting, and technical support. The Virtual
Internet Service Providers’ must perform all authentication and accounting
functions necessary to provide access and then bill their users for it.
Internet Service Providers can deliver media to the end-user using wireless
network technologies, e.g. WiFi.
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3.4 Service provision key players
Mobile service providers
Mobile service providers offer mobile ISP services or resell airtime and may
acquire exclusive content rights as sources for their differentiation.
Valued added service providers
They offer navigation services in mobile portals, personalized or location
based services. An example of value added providers are the Virtual
network operators who usually buy access to a mobile network on a
wholesale basis and offer retails services similar to full network operators.
Mobile Entertainment Companies
Mobile Entertainment Companies usually provide more than one type of
service over the value creation chain. Mobile Entertainment companies build
their business by generating content and linking together Media
Companies, Producers, Publishers, Mobile Network Operators,
Portals and other key players.
4. Technologies used in the Value Creation Chain of Mobile
Media
Software [Done by CUE]
Platforms
Platforms usually provide the following services:
 Legal platfrom services
These services are developed specifically to handle the univqure features of
the devices. They consist of operating systems and local system software
services(eg. Database managers)
 Network transport services
They are responsible for transfering the messages and they operate on top
of physical wireless and wired networks to route to the messegers so that
the mobile media users can have access on their emails etc.
 Middleware services
They interconnect mobile users,databases and applications with each other.
It is quite common to package a range of middleware services into wireless
gateways and mobile application servers that support different types of
mobile applications. ( eg Wireless Application Protocol-WAP. Java2 Micro
Edition-J2ME)
( Amjad Umar, 2004)
Mobile Portals
Mobile portals act as an aggregator of outputs of multiple services and
provide one point access for the media customers. Businesses which
provide portal are usually managing the relationship with the end users
including maintenance of user account, bills and content pricing, whereby
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the content side of business involves the packaging of multiple types and
sources of content.
(Dan Steinbock,2005)
Mobile Networks
Mobile networks interconnect devices without using wires. From an end user
point of view, the two most important assets of wireless networks are data
sets and the distance covered. The most important categories are:
Wireless LANs: allow workstations in a area les than 100 meters to
communication with each other without using cables.
Wireless metropolitan area networks(WMANs): they are used for lawenforcement or utility applications.
Wireless WANs:provide support over long distances. An example of
wireless WANs are the satellite systems. ( Amjad Umar, 2004)
Internet Services
Internet is defined as the worldwide, publicly accessible network of
interconnected computer networks that transmit data by packet switching
using the standard Internet Protocol (IP). It is a "network of networks" that
consists of millions of smaller domestic, academic, business, and
government networks, which together carry various information and
services, such as electronic mail, online chat, file transfer, and the
interlinked Web pages and other documents of the World Wide Web.
(en.wikipedia.org/wiki/Internet)
Hardware
Mobile hardware equipment can be cellular handsets, PDAs, pocket PCs,
Ethernet cards etc. There is a wide range of capabilities and functionalities
of the different mobile devices. They also range in size but most of them
will be small pocket-size, light weight devices with a long battery life and
the ability to perform various functions.
J. Rawolle and T. Hess ( 2000) differentiate mobile media devices into
stationary and mobile media devices and the transport media into
online(network-based) and offline (portable storage).
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5. Specific situations in regions/countries/worldwide
5.1. Germany [done by HdM]
5.2. Great Britain
Historical Development
It is difficult to describe the history of mobile media sector without taking in
account historical development of the digital media and mobile
technologies. In general it is worth looking and the main trends affecting
the birth and development on mobile media over the following periods:
1980s – mid 1990s
Early CDs and a concept of the digital content were created. Obviously then
the content is not yet mobile, but it is digital.
1990s – 2000s
With the growth of the internet digital content becomes more easily
transferable electronically. Media content becomes more sophisticated and
more advanced audio visual material is being transferred and becomes
available for large audiences. This is the time when b2c e-business grows
and many enterprises take advantage of that. Mobile solutions are booming
in addition to dot-com-companies. Huge successes of mobile technologies
raise the expectations for the rapid adaptation of developed mobile
technologies and their commercial solutions. Investors and mobile
businesses take huge risks into investing in new technologies. This is the
time when European mobile telephone operators take a gamble and invest
into the auctions of 3G licenses.
2000 – 2004
Dot-com and other ICT related companies suffer from the burst of the stock
market bubble. Many businesses are filing bankruptcy and many experience
huge crops in their turnover. In mobile digital area this is characterised by
the unsuccessful launch of WAP services.
Nowadays
Today ICT related businesses are steadily developing. Investors are
regaining the confidence and thereby mobile media sector is benefiting from
that. More than ever advanced and sophisticated enabling technologies play
an important role.
Current Situation
Current market research shows that mobile content market is growing.
More and more businesses take an opportunity to provide mobile content.
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The latest findings show that 36% of mobile owners now use their phones
to send and receive picture messages, up from 21% at the same point last
year. Over the past year MMS usage levels have increased dramatically in
18-34 age groups, and doubled in all age groups above 34 years old. Mobile
as a communications medium is getting richer and a lot more exciting.
With WAP page impressions approaching 2 billion per month, according to
the Mobile Data Association, the Mobile Media Monitor also unveils the most
popular types of site on the mobile internet. Ringtone sites are the most
popular with 48% of WAP surfers visiting one or more in the last three
months. 41% visited news sites, 36% games sites, 33% sports sites, 31%
entertainment sites, 28% weather sites and 6% adult sites.
Mobile phone operators and a number of enabling technology areas are
dominated by large enterprises like Vodafone, O2, Virgin, Orange and
Alcatel, Sony, Motorola in the case of latter. SMEs are operating in the areas
of the application development and service provision.
Current Technological Standards
There is a wide variety of standards used in the area of the mobile
media technologies. There are standards for the technologies
enabling mobile content delivery like GSM and CDMA, which are the
two most prevalent mobile communication technologies and WiFi for
the wireless access. There are numerous digital content standards
defining type, compression, transfer protocols and size of the
information to be transferred.
Legal Conditions
There is no current legislation directly targeting on-line content
broadcasting. Though the following aspects of the UK legislation
should be taken in account:
 Privacy and data protection,
 Criminal Justice and Public Order Act,
 Obscene Publications Act,
 Protection of Children Act,
 Regulations on wireless data transmissions,
 Broadcasting Act.
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5.3. Poland [done by IMBIGS]
5.4. Bulgaria [done by CUE]
5.5. INDIA [DONE BY MSRSAS]
5.6. Worldwide [done by HdM]
6. Literature and Sources
Valerie Feldmann, 2005, Leveraging Mobile Media: Cross-Media Strategy
and Innovation Policy for Mobile Media Communication, Springer.
Georgios Doukidis, Nikolaos Mylonopoulos, Nancy Pouloudi, 2003, Social
and Economic Transformation in the Digital Era, Idea Group Inc (IGI)
Ron Schneiderman, 2002, The Mobile Technology Question and Answer
Book: A Survival Guide for Business Managers, AMACOM Div American
Mgmt Assn
Brian E Mennecke, Troy Strader, 2002, Mobile Commerce: Technology,
Theory,
and
Applications,
Idea
Group
Inc
(IGI)
Peter A Bruck, Andrea Buchholz, Zeger Karssen, Ansgar Zerfass, 2005, EContent: Technologies and Perspectives for the European Market, Springer
Amjad Umar, 2004, Mobile Computing and Wireless Communications, nge
solutions, inc
Dan Steinbock, 2005, The Mobile Revolution, Kogan Page
J. Rawolle ,T. Hess, 2000, New Digital Media and Devices, JMM:
International Journal on Media Management, volume 2, number 2, pp. 89109
Andersen, 2002, Media Ownweship Consultationg Response
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Stephen. N. Wiener, 2003, Terminology of Mobile Entertainment: Mobile
Entertainment Forum, available at :
www.m-e-f.org/pdf/GlossaryRelease_new%20logo.pdf ,accessed on 16th
August 2006-08-25
Wikipedia, 2006, Mobile Phone, available at :
http://en.wikipedia.org/wiki/Mobile_phone#Mobile_phone_features,
accessed on 19 August 2006
Wikipedia, 2006, Personal Digital Assistant, available at:
http://en.wikipedia.org/wiki/Personal_digital_assistant, accessed
August 2006
on
19
http://en.wikipedia.org
http://www.bitpipe.com/
Mobile Media Monitor UK, conducted by Harris Interactive, 2005
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