Mobile service bundles

Abstract

In this chapter we consider business models for mobile service bundles. The focus of the STOF model and method is on mobile services. Service bundling will be an important driver for the use of 3G+ services. Bundles of services may provide a 'bundle of benefits' to users, potentially increasing customer value. Bundling may also lead to cost efficiencies for providers coming from economies of scale or scope. Any decision regarding a bundled offering of services requires careful balancing of customer and network value. Notwithstanding the wide application of bundling strategies still little is known about what constitutes a viable bundle, i.e. a bundle that creates added value for users and/or providers. Clear guidelines neither for the design of service bundles, nor for the underlying business models are available. In this chapter we use the STOF model to discuss Critical Design Issues (CDIs) for service bundling that influence customer value. The study is based on a literature review and a number of case studies of existing mobile service bundles. We use the results to extend the causal model for creating customer value with additional CDIs related to service bundling. © 2008 Springer-Verlag Berlin Heidelberg.