Study On The Development Of The Traditional Telecommunication Operators In The Age Of Mobile Network

With the policy protection, stable customers and exuberant, monotonous demands, the traditional telecommunication community has been developing rapidly both on business scale and operation income for years.With the development of communication and network technology, the chain of traditional telecommunication industry is gradually blurred. Some new technology even can cross the bounder of the policy, and do business which used to be run by traditional telecommunication operators. At the same time, the value chain of the participants is deeply changed, which leads to the birth of value in process and content.Through the ages from mainframe computer to minicomputer, from the personal computer to the desktop networking, we have entered into a new age, which is mobile networking. As the fifth engine and subsistence patterns, mobile networking is an irresistible trend. The cash cow businesses such as Voice, SMS and Personal Ring Back Tone theoretically can be replaced by new technology. Therefore, these operators need to protect the value "pipeline" on the basis of specific research, take a long-term outlook of the strategic development, and expand scales in new areas to ensure the successful transformation.This paper firstly makes a basic introduction of traditional domestic telecommunication industry. With the application of Porter’s "Five Forces" theory, it briefly analyzes the competition structure of industry and its participants. Besides, this paper concisely explicates the basic situation and analysis of SWOT of China Telecom, China Mobile and China Unicom.Secondly, this paper describes the concept of mobile network; moreover, it refers to the current situation and industry scale.For the next, this paper explains the challenges that traditional telecommunication business may encounter in detail, and makes the analysis of the potential replacement of every kind of business. What’s more, it points out the risk of being pipelined of traditional telecommunication operators.Finally this paper takes China Mobile the magnate of the industry for instance, and discusses the possible actions might be taken by traditional telecommunication operators.