A Two-Sided Market Approach to Value Chain Dynamics in Telecom Services: A Study Lens for Mobile Platform Innovation and Pricing Strategies

Abstract

This research in progress paper originating from ongoing PhD research deploys a study lens consisting of two concepts: two-sided markets and coordination costs. It enables us to analyze technology innovation and value chain dynamics in the telecom industry. When studying the technology components of platforms from coordination cost perspective, we can capture aspects of technology innovation inside the two-sided markets concept. This approach seems promising for further research into how platforms combine existing services into new bundles or products. We can also extend the analysis to how technological platform innovation affects pricing strategies, and value chain dynamics in the telecom industry. Two mobile service cases from own interviews and archival research are used to illustrate the utility of the study lens.