Value Network Configurations for Smart Cities

Smart city services will be enabled by telecoms networks with extensive connectivity and sensing capabilities coupled with data-based applications. However, the structure of the business ecosystems responsible for deployment and operation of the infrastructure is unclear as multiple stakeholders aim for its control. Hence, there is a need to identify solutions that enable the systematic deployment of connectivity and sensors in cities whilst increasing the usage and value of such data thereby enabling city managers and stakeholders to make better-informed decisions. The results of the study suggest that Value Network Configurations (VNCs) (i.e., business ecosystems) that are driven by a partnership between a city and one or more Mobile Network Operators (MNOs) in the form of a Neutral Connectivity Operator (NCO) and a Neutral Data operator (NDO) offer advantages over other VNCs. They can benefit from higher cost savings, enhanced market neutrality, higher incentives for local application development, and unique city / MNO offerings that emphasise each other’s capabilities. However, there are business complexities associated with joint ventures and use of neutral infrastructure but it is believed that the benefits outweigh such drawbacks.