The concept of business model has attracted increasing attention in recent years. Specifically, growing number of internet providers on mobile phones are challenged by the selection of appropriate business model. Considering the importance of a good business model in the firm’s success, this research investigates the business models selection process of internet providers on mobile phones in Iran. To answer the question of what is the most appropriate business model for these firms in Iran, first a comprehensive literature review was conducted. Existing business models for the mobile internet providers were identified and business model selection criteria were highlighted. These criteria for selection of business model included individual, social, technical, economic and organizational factors. After conducting qualitative interviews and employing AHP techniques, “payment for services by customers” was identified as the most suitable model for internet providers on mobile phones in Iran.