Research On The Cooperation Strategy And Benefit Distribution Model Between MNOs And Otts Based On Cooperative Game

The wave of fifth-generation mobile networks(known as 5G for short)is coming,so the demand for 5G infrastructure updates has increased dramatically.However,mobile network operators(MNOs)are not enthusiastic about investing in infrastructure updates to satisfy the demand because the cost of 4G construction has not yet been recovered and their main business revenue has been significantly weakened by over-the-top content service providers(OTTs).To resolve the conflict and promote the development of 5G,this paper proposes to establish a cooperative alliance between MNOs and OTTs with a benefit distribution model by cooperative game based on the segmentation factors,in particular,adding new production factors with the characteristics of digital information industry,that is,data element and technical element.Besides,it will identify the participants' contribution rates using the improved Cobb-Douglas production function.Finally,the benefit distribution mechanism and the allocated benefits in the cooperative alliance under different dominant bodies are proved by means of Chinese case analyses.In conclusion,the distribution of interests of both parties can achieve a balance of cooperative games if the interest can be split around 60-40 between them in China in a single-led situation.In addition,the results also show that the government's supervision mode,compared with other dominant modes,is more conducive to China's current national conditions.For 5g ecology,this research proposes that telecom operators should take the capacity of basic network construction as the core foundation,and OTT service providers should assist network construction in various forms.So they should cooperate in more businesses to realize strategic coupling with ecological members and stabilize their core positions by means of equity investment,resource replacement,reasonable distribution of interests.In addition,with the help of the institutional strength of the government,they can make the reasonable cooperation mechanism between two or more parties to make the alliance more equitable and sustainable.The conclusions are of important guiding significance for constructing the benefit distribution mechanism for the development of a benign cycle in the cooperative alliance of MNOs and OTTs to improve efficiencies dramatically and increase social returns,and eventually realize the sustainable development of the telecommunications industry under the 5G background.