The Diffusion Trend Of 2G Mobile Phone Users In China And Its Factors

Mobile telecommunication has been one of the most dynamic segments in the telecommunications sector over the past few years. Nevertheless, it is noted that there is a lacuna in the literature regarding key factors analysis on the mobile communication diffusion in China, which this study proposes to fill. It is hoped that this study will help operators improve their understanding in this area and stimulate work in the study of mobile communication diffusion in other developing countries. At first, research background, methodology and literature review will be introduced. Secondly, The macro-innovation environment is analysed, including key issues affecting the rate of mobile telecom diffusion, such as specific country characteristics, digital and analogue mobile phone industry characteristics, and regulatory policies. Thirdly, a case study is presented exploring the key dimensions of mobile telecom diffusion in Shanghai and Chongqing, two areas with distinct geographic and economic profiles. Three sets of variables are used to analyse mobile diffusion: per capital GDP, mobile telecom tariffs, and mobile telecom infrastructure investment. Multiple regression analysis is used to forecast the dependent variable of the two cities in the near future. Then, a survey questionnaire is carried out over the past months. According to our analysis the results suggest that respondents can be divided into five adopter groups: pioneers, materialists, sociable, achievers, and traditionalists. In addition, we discuss the theoretical implications of adoption of mobile telecommunication subscribers based on Roger's model. Through semi-structured interviews, we also investigate the focus of the different adopter groups of mobile telecom diffusion in China. Finally in the paper we conclude and introduce the future development of GSM diffusion research which is quite critical owing to the upcoming 3G system.