| Currently, the Backbone Network and City Area Network have been relatively large-scale in China, consequently, the problems of the narrowband connect network are popping out and have become the "bottleneck" of our information construction. The connect network is one that directly connects the end users who are the source of the profits of all business modes in the final analysis, thus each network operating business is focusing on it. However, most operating business or those burgeoning ones don't have adequate resources of connect network. In June of 2001 and January of 2003, by way of inviting public bidding, our national information industry department distributed the ground fixed wireless connect system on the frequency of 3.5GHz in 36 cities including Nanjing, Xiamen, Qingdao, Wuhan, Chongqing etc, which is an important reform in the wireless frequency distribution with the single administration examining and approving way in the past few years. CECC company have gained the rights of using as well as operating the frequency in 29 cities in these two bids, becoming the most representative operating business on fixed wireless connection. Nevertheless, the way of operating 3.5GHz is full of twists, and CECC company will also be in trouble if some large non-telecom enterprises like Putian which obtained the frequency resources within only one cities withdraw.Just in such background, the paper makes a strategic analysis on the 3.5GHz project, mainly employing the PEST Analyzing Model and Five-force Model to evaluate the project; then it makes a further analysis on the resources and the value chain of this company with VRIO framework to find out the core competition capability. And through analyzing the status quo of CECC and then analyzing as well as studying the encountering environment, threat and the strong and weak points of self resources with SWOT Model, the strategic decision of operating the project is elicited finally.
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