Modelling a vendor–Telco supply network to deliver two types of telephony services

In this paper, we examine a telecom vendor selling Advanced Intelligent Network (AIN) software applications and service-creation-tools to a telephone company (Telco) who then deploy these products on it’s network to provide AIN services and queries. The supply of AIN software applications and tools by the vendor to the Telco who then uses them to create AIN services for residential/business end-users and AIN queries for enhanced service providers form the supply network of our study. Profit maximizing models for each firm are formulated and solved using the mathematical programming software GAMS and the PATH module to obtain an equilibrium set of output and prices for the firms of the supply network.