The Research Of Entry-Mode Choice Of Operating Firms Of China Telecom To The Global Market

Since 1980s, the revolution and development of telecom industry all over the world has brought the integation of the telecom and made the firm begin to 'bring in'and 'go out'. China begins to go out after bring in. But China doesn't have any experience and eager to get some reference on the theory because of its unmaturity. Erramilli and Rao modified the transaction cost theory which can explain both the manufacturing and the service firms effectively.However,during the research the author has found though China Telecom operating enterprises are embodied with the characters of service induatry,the characters of high asset specificity and capital intensity and highly regulated and informationized and monopolistic competition and uncertainty.As a result,traditional transaction cost theory is no longer applicable.According to these characters,this paper,on the base of traditional theory, discusses the entry-mode choice for the China Telecom's operating companies to the global market.From the perspective of transaction cost,this paper will argue that China Telecom operating companies would prefer shared-control entry-mode to full control entry-mode with the influencial of network informationization and uncertainty and government policy and market structure and capital intensity .