An economic approach to analyse and design mobile services

Limited resources, e.g., time and money, force both people and firms make choices between different alternatives. We present an economic framework that can be used to model and analyse this decision process in the context of mobile services. The main parts of the model are valuation of different services, pricing, quality of service, network resources, and various cost factors. The extensiveness of the model makes it possible to analyse the interrelations between different aspects; for instance, how pricing affects the usage of the services, the required network resources, overall customer satisfaction, and service provider´s revenue. The first three chapters of the paper introduces the basis of our model while the forth and fifth chapters presents how the model can applied to solve real business issues of mobile operators.