On The Strategic Transformation Of China’s Telecommunication Enterprise

Information and telecommunication technology are advancing rapidly in the new era. The mobile technology, broadband technology, IP technology and multimedia technology are becoming the main streams in telecommunication technology. Telecommunication industry is facing profound change. Transformation is both the inevitable trend and urgent need of the development of telecommunication industry.This dissertation firstly gives a definition of telecommunication enterprise operator’s strategic transformation, and explores the transformation of enterprise operator’s technology, business, organization and operation & maintenance system theoretically using economics and management theories and analytic tools; Secondly analyses the necessity of transformation for China’s telecommunication operator, Thirdly investigates the strategic transformation of China’s telecommunication operator in terms of business transformation, network & technology transformation, organization transformation and operation & maintenance system transformation; Finally conducts a case study taking China Unicom as an example. The results are as follows:(1) The strategic transformation of telecommunication operator is the transformation of operation model, as well as corresponding the way of organization and allocation, during the conversion from "traditional basic network operator" to "modern comprehensive information provider". There is a possibility for the emergence of inefficiency technology "locked-in" during the process of telecommunication technology transformation. Government could break the inefficiency technology "locked-in" through providing R&D subsidy or reducing trade cost. Differentiation strategy should replace price competitive strategy in the business transformation of the telecommunication operator to urge the development of telecommunication industry. The organization transformation of telecommunication operator from business-oriented organization to customer-oriented organization is the transformation from service factory to professional service. The key point for operation and maintenance system transformation is to construct a modern operation and maintenance system dased on customer-facing, flow optimizing, cost-saving, service-quantity.(2) The impact of internet, the upgrade of market demand, the convergence of network, the release of supervision, and the lack of sustainable development ability are the main driven force for the strategic transformation for China’s telecommunication operator.(3) The transformation orientation of China’s telecommunication operators is from traditional basic network operator to modern information provider. Under the principle of social responsibility, whole transformation, step by step transformation, China’s telecommunication operators should push forward the transformation of business, network & technology, organization, and operation & maintenance system through innovation, and learn how to handle the risks during the transformation.(4) China Unicom has conducted a lot in business, network & technology, organization, and operation & maintenance system to push forward its strategic transformation to a comprehensive information provider. A lot of questions are still unsolved for China Unicom such as lack of whole business layout and innovation capacity, laggard organization structure and operation & maintenance system. China Unicom should change its business model, strengthen innovation, and set up a customer-centered modern operation & maintenance system, to lay a solid foundation for the realization of its strategic transformation goal.