Systems, networks, and services are going through a rapid churn. The fourth-generation (4G) communication system is planned not as a sequel to third generation (3G), but as something that has never been designed before. The conceptualization, design, and implementation of 4G are very challenging tasks in technological innovation. 4G is expected to provide a broad spectrum of new services and features. This ambitious project calls for a convergence of content management for the manipulation of digital media in multiple formats; consumer-facing electronics that enable audio/video replay and digital broadcasting; Internet services over broadband all-digital networks to handle streaming data; the seamless integration of diverse networks with different architectures; and a combination of all of these.

This paper argues that innovative business models are prerequisites for the planning, design, and execution of systems with incredible complexity. The impacts of disruptive and sustainable types of innovation on business models are discussed. Traditional telecom companies have based their business plans on the distance between callers and call duration. The 4G network is based on voice over Internet protocol (VoIP), where the distance and call durations are irrelevant. Some traditional operators view the disruptive VoIP as a threat, while others see it as an opportunity to develop new business plans for the next-generation network. This paper serves as a good introduction to the impact of disruptive business models.