Research On The Relationship Between Mobile Operator's Business Mode And Regulation For Service Providor

With increasingly fierce competition in the basic telecommunication service and alternative technologies development, the ARPU of telecom operators is declining. Therefore mobile operators hope to create differential advantages in the development of mobile value-added service so that they can meet the challenges of 3G However, many problems are raising as the result of the measures that "one size fits all" model and the encouragement management system as the principal in early days. Consumer complaints in telecommunications industry have focused on value-added business. Although the mobile operators have introduced a series of emergent service-provider control policy under the pressures of public opinion and government policies, they failed to achieve the desired results. This paper holds that the ultimate cause is that mobile operators don't know the clear relationship between their business model and the service-provider regulation strategy. Therefore, this paper will focus on what kind of business model to establish and how to create service-provider management strategies.The paper includes three following innovations:Firstly, by comparing "business model" with "core competence" theory, the paper tells the differences between them. Then the paper introduces an operational and exact analysis framework based on several business model analysis frameworks, which can be used to analyze the value-added business model of telecom operators. Meanwhile, the author firstly introduces "bilateral market" theory and the "middle level" theory to analyze mobile value-added service market, identify five business models in mobile operators, prove the feasibility of the business model in theory and point out the sustainable business is the reason of regulating the value-added service providers.Secondly, this paper builds a "stimulus-response" model for the regulation strategies, which are divided into three phrases. Then the paper compares the practical results with the model and points out that there exist some problems in the formation mechanism.Thirdly, this paper proposes a new kind of formulation mechanism and points out that the effective regulation strategy is the key point for building and maintaining the business mode. Then this paper analyzes the current "integration" strategy and incentive mechanisms for the service-provider with this new tool. And then, it concludes that the mobile operators are not suitable to operate all mobile value-added service. Finally, some suggestions are recommended for the mobile operators.