Ng, P. T. Andy, Lu, Dawei, Li, C. K. and Chan, H. Y. Harry. (2004) A strategic perspective on future residential broadband market. Technovation, Vol. 24 (No. 8). pp. 665-669. ISSN 01664972

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Abstract

The industry structure of the dynamic residential broadband market is examined in order to gain strategic insights into how Internet service provider can maintain competitive advantages. The broadband service value chain is analyzed through evaluating the competition within the encompassing sectors. It is concluded that owning the optical last mile network is strategically important because of its monopolistic nature and the technical scalability to meet future bandwidth demand. We will also discuss new business opportunities due to the various industry trends that will lead to the emergence of residential broadband killer applications such as online interactive games. It is argued that when residential broadband applications become more useful and popular that consumers are willing to pay for them to support a subscription-based business model, the last mile operator will seize substantial market power in the broadband service value chain.

Item Type:	Journal Article
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management T Technology > TK Electrical engineering. Electronics Nuclear engineering
Divisions:	Faculty of Science > WMG (Formerly the Warwick Manufacturing Group)
Library of Congress Subject Headings (LCSH):	Business logistics, Business logistics -- Management, Broadband communication system, Broadband communication equipment industry
Journal or Publication Title:	Technovation
Publisher:	Elsevier Ltd.
ISSN:	01664972
Official Date:	2004
Volume:	Vol. 24
Number:	No. 8
Page Range:	pp. 665-669
Identification Number:	10.1016/j.technovation.2004.03.005
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
References:	Balmoris, M., 2003. FCC Adopts New Rules for Network Unbundling Obligations of Incumbent Local Phone Carriers, Press release of US Federal Communications Commission, 21 Feb, 2003. Available http://hraunfoss.fcc.gov/edocs_public/attachmatch/ DOC-231344A1.doc. Hirosaki, B., Emura, K., Hayano, S., Tsutsumi, H., 2003. Next-generation optical network as a value creation platform. IEEE Communications Magazine 41, 65–71. 668 P.T. Andy Ng et al. / Technovation 24 (2004) 665–669 International Telecommunication Union, 2003. ITU Internet Reports 2003: Birth of Broadband ITU, Switzerland. Maney, K., 2003. Broadband net begins to fulfill its promise; surge in users fuels rise in online content offerings. USA Today. Porter, M.E., 2001. Strategy andthe Internet. Harvard Business Review, 62–78.
URI:	http://wrap.warwick.ac.uk/id/eprint/40285

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