ABSTRACT
Given the tremendous increase in data consumption by consumers and the upcoming next-generation 5G networks, the telecommunications industry has been exploring new business models. In particular, mobile service providers (e.g., AT&T, Verizon, and T-Mobile) collaborate with other industry partners, such as content providers (e.g., Facebook, Netflix, and Spotify) and advertisers, to better deliver their services to consumers. This chapter aims to examine the new business models inspired by social media and telecommunications technology. We first introduce a new business model proposed by mobile service providers, sponsored data program, which transfers a fraction of the data bill from consumers to content providers. Then, we examine an emerging monetization mechanism: Sponsored data with reward tasks. Under this mechanism, consumers are subsidized with free megabytes by content providers in exchange for engagement with advertisers by performing various forms of reward tasks on social media sites.
