Research On Development Of Southern Xinjiang Rural Telecommunication Business

China is an agricultural country with over 0.8 billion fanners, which is two thirds of the over all population. In South Xinjiang rural population is over 70%. Communication in these area s is relatively simple. Fixed line is dominant while mobile penetration rate is very low. Howe ver, with the change of user demands, there is an accelerating tendency of replacing fixed lin e to mobile. China Telecom urgently needs to activate mobile service in rural areas to fill the gap. With the drastically development of China’s economics, telecommunication is also deve loping quickly. Although coverage of mobile service in rural areas is less than 30%, half of t he new users are from these areas, which mean there is still large increasing space. Market in these areas can never be given up. The issuing of 3G license brings vitality to rural telecom munication market in South Xinjiang. Original business model for fixed line is changing. Th ough business office is still the main source, Tianyi franchise and agents are springing up. N ew market intrigues company’s interest of invest in this area. Competitions in this market bet ween three companies are emerging. Analyzing the advantages and disadvantages of China T elecom’s services in this area, the current situation and specialty combined with new round t elecommunication reconstruction plan and full service operation brought by 3G, are helpful f or China Telecom to formulate marketing strategy in rural areas. In such a special area with 1 ow network coverage, low user credits and limited payment capacity, making an effective ma rketing scheme and objective, which could enable it compete in competition, is of great valu e as well as application prospective. Under the above background, we establish research program on telecommunication service development in rural area of South Xinjiang. Our way to develop this program is:investigate and research-analysis investigation data-summarize previous questions-formulate branch standardized project construction plan.