China Telecom's Business Transformation And Development Strategies

A profound change, caused by the co-effect of market competition and technical development, occurs throughout in telecommunication industries all over the world once in a blue moon. . Under this condition, China Telecom Corp. encountered a rough situation that its telephone services revenues are shrinking gradually, which are mainly fetched from fixed-line telephone services. As its continuous development is sternly challenged, China Telecom Corp. has to struggle to find new growth point. This project is based on the China Telecom's footprint and current condition and expounds the key points during the service development in theory; besides, in this project, we discusses the reasons which caused the business decline of China Telecom, the necessity and feasibility of service transformation from several aspects, such as macroscopic environment, stage of information industry development, evolution rules of evolution rules of industrial chain, trend in telecom market development, trend in telecom service development and rules in telecom technology development. Then, it presents the goal of China Telecom service transformation, consisting of actively developing new services, such as mobile communication, information communication and content application, based on the preponderance of fixed-line services; providing swift, versatile, customized, high cost-effective integrated information services for the customers; becoming total services provider, content application integrator and information communications vanguard; achieve the transformation from fixed-line telephone services to four types of dozens-of-billions-valued services including value-added services most of Internet application, system integration, mobile communications and international communications. At the end of this article, we discuss the advantages and disadvantages of China Telecom by using SWOT analysis method, and figure out seven key elements in the course of services transformation for China telecom, including Service development strategies, enterprise informatization, R&D strategic plan, network development, dominant status in value chain, technical innovation & enterprise culture.