Design And Promotion Of Virtual Long-distance Operations

In recent years, China communications industry developed rapidly. It is a period when all the businesses in this field grow in high speed, especially the long-distance telephone business.China communications industry is a typical natural monopoly industry. However, this situation has changed a lot with the reform and opening-up goes deeply. China introduced competition to break the monopoly. Nowadays it forms a competition pattern which China Telecom, China Netcom, China Mobile, China Unicom, China Railcom and China Satcom operate separately and compete with each other. Because of the development of internet and the maturity of IP technology, it can reduce operating cost greatly through the internet when it can realize the verbal communication. The above mentioned situations bring both opportunities and challenges. On the one hand, there is a trend which the internet network will replace the traditional telephone business, especially the long-distance telephone; On the other hand, in accord with the abundance of the communications increment businesses, the customers' differentiated and detailed demands are becoming more and more visible. The different demand of customers makes the communications businesses develop in different directions. Considering all the discussed factors, we can see that they caused tremendous consequences to the communications industry in our country. The most direct outcome is the former basic telecommunication operators fall across a difficult problem. That is, the business mode in which the standard telecommunication products to all the customers which the operators once offered, can not work very well. This kind of mode can't adapt to the development of new market, the fast dazzling innovations and changes in this field. What the consumers really need are the more various and more individuated services. It is the very need that gives a lot of companies the opportunities to survive and develop in the competitive market economy. This companies called as "the telecommunication virtual network operators", which can be more acquainted itself with the customers and considerate to satisfy the customers This thesis introduces the origination of the virtual network operators and analyses the mechanism theoretically at the very beginning. Considering the long-distance telephone market as an example, then it analyses the mechanism thoroughly. After that, it demonstrates the feasibility of long-distance telephone business and the orientated role of the virtual network operators in the case of "Zhi Yin Company". Finally, the author gives suggestions not only to the virtual network operators, but also to the China telecommunication policy constitutor.