Networking Investigate

Exploring Two-Sided Business Models for Service Providers: Creating Profitability Through Innovation

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Executive Summary

The global service provider industry has experienced wave after wave of disruption, from the convergence of voice, data, and video, to the current explosion of digital media, which is devouring service provider capacity without contributing equivalent revenue. In this environment, SPs are faced with a choice: they must either evolve into the role of innovation provider, or be content simply to provide a utility service. The proliferation of digital media offers fertile ground for service provider-led innovations. Increasingly, SPs are employing a two-sided business model - focused on both business customers/partners and consumers - to monetize new digital media opportunities.

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