Research Of Strategy Of Mobile Service Operator Under Number Portability

Based on the microcosmic economics,the theory of industrial organization and game theory the paper explores the competitive strategy of mobile operators under two different policy environment, one is without number portability and the other is with number portability. This gives decision support for both the mobile service suppliers and supports the Chinese government authorities with practical methods. First, the paper gives a systematic and comprehensive analysis the economic character, controlled policy, NP and market structure of mobile service market, and explores competence of the mobile operators. Then, on the basis of modification of bidding model based on Nash equilibrium, it analyzes the cause of pricing competition between the mobile operators, and shows that enterprises must depend on supplying different service to avoid the Bertrand paradox. The paper places emphasis on the analysis of competitive strategy of the mobile operators under NP. Through analyzing a game model, it does a research about how the mobile operators will change their competitive strategy after carrying out NP. The conclusion shows that if the sensitivity is large, the operators will compete with pricing strategy firstly,then competing with similar services and different services lastly. Contrarily, if the sensitivity is small, the operators will compete with similar services firstly, then competing with pricing strategy and different services lastly. So, although NP will change and further the competition situation in-depth, according to actual situation of china, popularization rate of mobile service is still very low and great decrease of profit caused by distorted price under NP policy does harm to the development of telecom industry and the prevalent service principle, which indicates that it is not appropriate to carry out NP now. The main conclusions and some questions for further research are proposed.