The business model of internet application services for telecommunications operators

This paper discusses the business model of Internet application services through dividing the application services into four categories: content-based business, information-based business, advertisement business, and product transaction business. This paper tries to analyze the business model from the perspective of value chain, especially focusing on cooperation relationship. The analysis of this paper is about four major businesses of the Internet application services through the method of case study of V-net which was launch by China Telecom. Based on these models, this paper discusses how to cooperate among the participators on the value chain and proposes different patterns of cooperation ship. It also compares different models and concludes the advantages and risks of these models.