Business Modeling Options for Distributed Network Functions Virtualization: Operator perspective

Mobile network operators (MNO) are continuously looking for opportunities to reduce capital expenditure and operational expenditure in order to attain organizational economic objectives. Technology concepts like software defined networking (SDN) and network functions virtualization (NFV) have thus surfaced to reduce proprietary hardware based networking and to provide agility. This paper deals with the distributed NFV concept and further deepens with one use case, virtualization of customer premises equipment (vCPE) functions. We apply business model as a basis of analyzing the study context. This paper presents three different business modeling options for the vCPE concept, a conceptual outline of integrated value package and further opens up scalability and feasibility factors for such business models.