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pays for Internet access to the ISP. Network access markets are the business domain
of the ISP and the NP, while markets for information
services are the business
domain of the ASP and the CP.
The model in
.
Fig.
17.2
is a simplification of the business domain for digital
services. The most important observation from this simple model is that there is a
sharp separation of business domains in the provision of digital services. Not only
are there many stakeholders involved in the
provision of digital services, but there
are also big differences in how each of them conducts their business. For instance,
the NP builds and operates a physical ICT infrastructure
consisting of optical
fibers, mobile base stations, communication satellites,
undersea cables, Internet
routers, and switching centers. This infrastructure may cover a large geographical
area and consist of expensive equipment. Moreover, the NP
needs a staff of techni-
cians and engineers to build and manage the ICT infrastructure. There are also
huge undertakings in upgrading the ICT infrastructure since ICT tends to get out-
dated quickly.
The content provider
produces content such as music, movies, and news arti-
cles. The business operation of the content producer is vastly different from that of
the NP. The products of the content provider are usually
digital and reside only on
a digital storage device. These products do not need upgrades or extensive manage-
ment after being produced.
Formal relationships or contracts, in terms of service-level agreements (SLAs),
may exist between the stakeholders in digital markets.
C
ISP
ASP
CP
ASP
buys
content and
application delivery
services from
ISP
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