Abstract
This article focuses on and explores the economic logic that should govern mobile operators’ strategies for incorporating content delivery and advertisement placements in mobile service offerings. The marketplace for mobile digital media (MDM) is not entirely new. Whereas networks, content, services, and even regulatory policies have made progress through convergence, the process of re-engineering business models to reflect the characteristics of the still-evolving market for mobility-based services that might be offered by MDM is still at its beginning. It appears that advertising will in the long run become an important source of revenue for mobile service operators.