Transfer Pricing and Value Creation

1. S. 528Introduction

Telecommunication is a massive disrupted industry. The disruption did not begin in terms of digitalization when everyone was already talking about. It began decades ago.

This chapter will look at the changed environment that telecommunication providers (TelCos) have to face nowadays. With its completely new business models, the question that arises that this chapter is dealing with is how the new business models of TelCos can be shown appropriately with transfer pricing models.

The scope of the analysis will be on new forms of collaboration in the industry with new partners. The chapter will not cover digital business in detail with its new products and business models or possible new fields in depth.

The chapter will start with an introduction to the subject itself. The value chain analysis will discover different activities in the TelCo sector and will identify drivers (primary activities) and supporters (support activities). By picking out two business models, one will be about supply of networks and the other one will be about partnering with start-ups, appropriate transfer pricing models will be worked out. With an outlook to the industry and some possible research...