Research Of China’s Telecommunications Industrial Chain Vertical Integration And Operator’s Business Model Based On Mobile Internet

With the resurgence of Apple Company, people have already enjoyed theconvenience of smart mobile phones, and it also means people have entered themobile Internet era of the communications industry. It well know that after2000, therapid development of technological innovation and the needs of users makes thecommunications industry to become one of the world’s fastest growing industry.Because the special nature of the communications industry, from the beginning,monopoly and competition has been the problems of the communications industry.For the Government, it focuses on how to prevent excessive monopoly of thetelecommunications industry to achieve a effective competition; for the operators, itfocus on how to use existing resources to enhance their competitiveness.Well, this paper stands at the operators’ point of views to analyze the problem toimprove competitiveness of the operator. The reason is that China published the12thFive-Year Plan about the description of the strategic emerging industries, made themobile Internet as the representative of a new generation of communications industryas a strategic emerging industry, and will give a strong support to its development.Because this industry not only related to its future development, and also related tothe security issues of China’s telecommunications industry. Particularly in the era ofmobile Internet, mobile communication industry chain structure and business modelhave a huge change, operators who always at the core of China’s mobilecommunication industry chain, now feel more challenges from foreign operators andterminals, Internet company, and even appeared such a trend that it will beingmarginalized in the industrial chain.The purpose of this paper is based on the operator’s perspective, analysis theoperator how to use the existing resources and their own advantages to vertical integration of industrial chain, and how to choose the best business model, throughthese measures to enhance their competitiveness. The approach of the study is that bysum up the of the mobile Internet’s mobile communication industry chain’sdevelopment and evolution, combined with analysis the main members of theindustrial chain‘s strategies and foreign operator’s case, finally we got a conclusionthat our operators should taken a new business models and strategies, and it can be byvertical integration the industrial chain to achieve a effective competition.The main innovation of this paper is that we use the game theory to analysis theproblem of vertical integration of industrial chain of mobile communication industry,especial combination of the specific characteristics of the mobile Internet, get aconclusion that operators must seize the key of the development of mobile Internetindustry chain to enhance the competitiveness, and take some measures such as theUnion to integrate its upstream and down stream’s companies, and deal good with thedistribution of profits to achieve the ultimate goal.This paper hopes to give operators a theoretical support and inspiration in thenew situation of the mobile Internet, as well as hopes to the government departmentsable to take effective policy measures to support industry development and improvethe international competitiveness of the operators and also maintain effectivecompetition in preventing the loss of consumer welfare.