Business Mode Analysis On Increasing The ARPU Of SDCNC Broadband Services

With the rapid development of PC market and the prosperous demands for family entertainment, broadband services have been coming to a brand new age in recent years. And for fix-phone operators, broadband services are considered as a "cash cow" in the near future in comparison with the significant drop of fix-phone income. China Netcom Shandong Branch (SDCNC), as a typical traditional operator in Shandong Province, intends to fetch in new services over the Broadband network. Nevertheless, the ARPU of broadband services has been descending in these years due to the furious competition and the lack of effective business model. From the status quo, increasing the ARPU of broadband services is the principal task for SDCNC.The writer of this essay tries to explore a proper way to help SDCNC overcome the embarrassing situation. Through studying the successful cases (such as Korean Telecom, France Telecom, other four representative Internet enterprises and VNET, a domestic competitor) on the dimensionality of network, content, users and services, the author indicates that SDCNC establish a elaborate operation mode, which gets the whole value chain of broadband services under control with a Differentiation Strategy, to increase the ARPU of broadband services. The last part of the thesis shows the advice on implementary process, system-building and establishing value chain.