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Study On The Development Pattern Of Value-Added Service In Chinese Mobile Communication Industry

Posted on:2006-04-28Degree:MasterType:Thesis
Country:ChinaCandidate:X X WangFull Text:PDF
GTID:2179360155470145Subject:Business management
Abstract/Summary:PDF Full Text Request
In recent years, mobile communication industry developed rapidly in our country. Nowadays the number of users in this field increased rapidly at the average rate of more than 5,000,000 per month. By the end of 2004, it had amount to 330 million, which is the first in the world. It took 14 years for the number of the users to grow from 0 to 100 million, but just a little more than a year and a half from 100 million to 200 million. Now it is in the period of growth at a high speed. On the contrary, the average revenue per user (ARPU) decreased step by step. The business of mobile communication is divided into basic business and value-added business. The basic business grows slowly while the value-added business turns into a new increased point of profit. The growth rapid of mobile value-added business far exceed that of other telecom business.According to our country's promise to WTO, value-added service will be opened first. Environment of economic development is stable in our country, and the value-added service is geared to the needs of all industries, so it has a wide space for development. Compared with the basic business, the market of the value-added services is easy to entered and has little barrier in policy, and foreign capital is permitted to amount to 50%. Most value-added services need lower level of investment, but can get higher return, so it is popular to domestic enterprises. At present the scale of mobile communication business in our country extends continuously. The number of moderate and small enterprises that manage to do the business of various value-added services comes to more than 4000. Among these enterprises, some have an annual income of more than 100 million.Since the limit to entering the mobile value-added service for foreign capital is not so strict as to entering the basic business, and cross subsidy of basic business to value-added service is not allowed in WTO items, foreign capital will take mobile value-added services as their foremost choice. It can be foreseen that in the coming years foreign capital will entered the value-added services on a large scale. It is undoubtedly that the entering of foreign capital will have great impact on the moderate and small enterprises that manage in the field of mobile value-added services. Enterprises that run mobile value-added services now face the problem and challenge that how to strengthen mobile value-added services and how to deal with the competition with foreign investors.In this paper the conception of mobile value-added services is explained first, and then research into development condition of mobile value-added services abroad is done. By case study, we summarize some successful experiences for reference from I-MODE model of NTT DOCOMO in Japan and NATE model of SK telecom in Korea.In this paper we use the value chain theory to analyze the condition of value chain in the field of mobile value-added services and problems of it. It is considered that a lot of factors that restricted the development of mobile value-added serviceshidden behind the superficial phenomenon of rapid development. Generally speaking, the main factor restricting the development of mobile value-added services is that its development and appliance is not in accordance with demands of clients completely and the co-winning profit model among various operators has not established. The relationships of operation among network operators, equipment providers, software development enterprises, content providers and service providers terminating equipment manufactures are analyzed thoroughly in this paper. Based on these analyses, we advanced three ways to build the open co-winning value chain suitable for development of mobile value-added services in our country. In the last part of this paper we developed some countermeasure about how to promote development of value-added services in mobile communication industry in China from different aspects such as the government, mobile network operators, content providers, service providers, virtual network operators, the consumers and so on.
Keywords/Search Tags:mobile communication industry, value-added services, open co-winning value chain, development pattern
PDF Full Text Request
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