Analysis On China Netcom's Operating Trategy Concerning 3G Mobile Market Classification

Mobile telephone creates another huge communication marketbesides fixed telephone. By the end of May 2004, the number ofChina mobile phone subscribers exceeded 300 million, and theranging rate of the mobile phone is 23%, which will keep a constantincrease. As is predicted by the Ministry of Information Industry, thenumber of mobile subscribers will reach 500 million in 2008, and 600million in 2010. In the future few years, there will be an increase of 40million –50 million mobile subscribers annually in China.At the same time, mobile technology also develop rapidly fromanalog network , 2G to 2.5G. Now 3G are going to be used in Chinamobile communication network. Since a 3G testing was performed inChina in 2001, 3G has been experimented in interconnection and fieldtrial from 2002 to 2003, in 2003 3G has been tested in businessapplication. It's reported that China's 3G will be put into commercialuses in 2005. After 2006, 2G subscribers will decrease at the rate of20 million –30 million each year, and 3G subscribers will have anincrease of 50 million –70 million annually. After 2010, 2G serviceswill disappear in China's mobile communication market and 3G willplay a leading role in mobile market.Only three telecom operators among China Netcom, ChinaTelecom, China Mobile and China Unicom can obtain 3G license,which are going to have an great commercial chance in the futurecommunication industry. Now each of the China's communicationoperators is getting full ready for 3G's coming into China. They allregard the control over the 3G market as the first target in the futurecommunication competition. In order to enter the mobile marketfrequently, first China Netcom should solve the three main problemsthey are facing –network, operation and market. China Netcomshould formulate its development objects in future to meet the needsof 3G mobile market development and severe competition, includingservice development strategies, subscribers classification strategies,channel reorganization strategies, pricing strategies, promotionstrategies and service leading strategies. To ensure all the strategiesbeing performed perfectly, Netcom Corporation needs to make adetail market research on service choice and subscriber classification. The paper puts stress on providing reference information forChina Netcom to decide marketing programme of mobilecommunication. Through a qualitative and a quantitative investigation on themobile subscribers, the paper makes strategy classification andtactics classification of the subscribers. Strategy Classification: On account of making a full study of the developing tendency ofthe whole mobile communication market, we make a clearclassification to the subscribers according to customer values andcustomer requirements: voice subscribers, data subscribers andhigh-term subscribers. We classify the subscribers market into threedifferent parts. It is suitable for the development of the mobile market.We should create a famous brand according to the customerrequirements. It makes it feasible for China Netcom to integrate itsresources. It will be favorable for Netcom Corporation to make acustomers brand and product-line layout. Tactics Classification: On the basis of the strategy classification, to help China Netcomto gain more subscribers, we make a deep classification according tothe different subscriber characteristics and different subscriberrequirements. We make a detail classification of the subscribers:Middle School Students, New-generation I (College Students),New-generation II(Social Fashion Youth), Urban Nobles,price-sensible wage labour, active wage labour, conservative wagelabour, individual households and management echelon. They allhave their notable properties. Each kind of the subscribers matcheswith the special strategy classification respectively. That's to say,when we make a marketing plan, we must pay attention to either thebreakthrough points or the whole programmes. In terms of service, I think there is a great opportunity for dataservice. At present, there is something wrong with data service in themobile market. Quite a few subscribers give up using data service.The subscribers call for an environmental protection service. Voiceservice will also account for most of mobile revenue. The price andthe quality of voice service are the main factors for the subscriber tochoose the network. If there is little difference in networks of differentoperators, data service is considered as an important factor in...