Research On Co-opetition Relations Between Telecommunications Operators And Services Providers, Terminal Manufacturers In The Telecommunications Industrial Value Chain

With the development of the telecommunications technology and the increasing of the market requirement for the qualities of the services, the data service becomes the important impetus which urges the telecommunications operators to increasing profits. At the same time, the development of the data service also results in the profound change of the mode of the traditional telecommunications industrial value chain:All kinds of new units appear in the industrial chain, such as SP. virtual operators, application integrators and so on, which makes the division of telecommunications industry further detail. The new telecommunications industrial value chain comes about new fission and owns more value links and value content when it expends original telecommunications content.Data services develop Prosperitily, a the same time relationship between the telecom industry value chain structure and the main become more and more complex, the entire value chain has also exposed some problems:First, the coordination between the main is not smooth. With data services developing more and more SP add to the value chain, through the operator’s network platform SP provide to users with information services,as consideration for the use of operators of network resources, the SP must pay communication costs to the operator, operator SP receive information fee, the SP needs to pay a certain percentage of fee information to operators, the settlement between the parties has become the focus of conflicts between the operators and SP. In order to promote data services, operators need to take the terminal customization strategy, device customization strategy can solve the compatibility issues of the terminal and the new business, but the operators are facing the pressure of marketing risks and costs of subsidies, on the other terminal operators are also facing their own the risk of brand dilution, how to solve the conflicts between operators and terminal operators.to find a suitable solution is necessary. Second, the main development in the telecom industry value chain is not balanced, both equipment suppliers mastering network technology standard and terminal owning the technological advantages lead the development of the technology market; operators grasp the network resources, and other intermediate services sectors need to use the operator’s network platform to provide intermediary services to users, operators in the value chain, the core of the middle part of the telecommunications industry is in a relatively weak position and lack of new ideas, for example information services provided by the SP/CP is the same phenomenon and serious. In order to solve the problems in telecommunications industry, we must rationalize the relationship between the different subjects in the telecom industry value chain. The current of the theoretical literature study mainly the composition of the telecom industry value chain, value chain model, the development trend of the value chain and value chain, the main strategy of cooperation between Value subjects.But research on competing relationship between Value subject is relatively small.The telecommunications industry value chain develop to the integration of network structure of the3G era, the telecom industry value subject, in order to hold its own advantages and maximize the benefits, Value subject will choose integration. At era of3G, value-added services market has great potential and has become an important source of profits for the value chain, in this case, the operator is not satisfied with the traditional network platform provider role, and gradually involved in other value chain, such as Fetion released by China moving mobile is business model of the transformation of the integration of the operator. The reason of transformation of operators is:firs it is not satisfied with the provider’s role in their own platform, followed by the need to achieve business innovation on the basis of the network resources and user resources advantage. With telecom operators transition to the content areas of service integration, operators will face its own strategic partners, SP, at the same time operators and SP have competition relationship between the two value subjects, thus forming the complex relationship of competition and cooperation. Operators choose to transition to the content areas of service integration, in order to promote their business data, terminal compatibility support is particularly important, terminal customization has become an inevitable trend of the policy choice of operators. In the device customization process, both parties want to maximize their own interests, strategic competition and cooperation between the two sides means the competitive relationship between the two sides in the heart, and competition business cooperation, the two sides have competition cooperation agency relationship. From reality, study of the relationship between t operators and SP, terminal providers can guide the design of the operators, the distribution of benefits and SP mode and operator of the terminal operators incentives. In theory, In addition to study the supply cooperative relations between the longitudinal main body of the research value chain, but also study the competing interests of the relationship between the main.This paper analyze Integration transformation trend of the telecom industry value chain, prove that relationship between the telecom industry value chain, become into cooperation and competition relationship from the main upstream and downstream supply relationship. On this basis, the cooperation and competition relationship choice of the subjects of the value chain between value subject, that is to say, operators is the core to form a symbiotic relationship with other subjects.The study lay the foundation for the below study about Competition and Cooperation between the operators and t the SP, the terminal operators. In the study about relationship between operators and SP, I establish competitive and cooperative relations model between the operators and SP. In the Model of competition, technological advances, a broad market prospects of data services and other factors are the driving force of the operators to develop their own data services, the paper study competitive relationship based on market access between operators and SP providersIn the model of cooperation, namely the paper study the cooperation model that each of the parties attempt to maximize the benefits and the cooperation model that Both sides attempt to the overall maximize interests of both sides. Era of data services, the operator does is not satisfied with the traditional network platform provider roles, and gradually involved in other value chain. To develop their own data services, the terminal customization strategy which operators take will become an inevitable trend. In the terminal customization mode,Operators hope to maximize their own interests, at the same time terminal manufacturers also hope to maximize their own interests.operators and terminal manufacturers have interest competitive relationship,but they have cooperative relations in business. In the paper, it focus on the general sense agency relationship both the two sides, below operators taking the case of shallow terminal customization.The specific section of this paper is as follows:The first chapter is the introduction part. the background and significance of this study is firstly analyzed, this paper summarizes and analyzes the problems faced by the telecommunications industry in the era of data services:Coordination between the telecom industry value subjects is not smooth; Development between the value subjects are unbalanced. Accordingly this paper proposes to address the above problems by studying the relationship between the telecom industry value chain, problems are needed to be addressed in this article are described, and describes the research methods.The second chapter is the theoretical foundation and literature review. This paper introduce briefly the theoretical basis for this article, Including:Industrial chain, value chain, the industry value chain, game theory, principal-agent theory and industrial chain integration integration theory, this paper summarize the current research status of the telecom industry value chain.The third Chapter is comparative analysis of domestic and international telecommunications industry value chain development status. There is a comparative analysis on the development of domestic and international telecommunications industry value chain.The chapter analyzes the integration trend of the telecom industry value chain from the theoretical and practical point of view, and the cooperation and competition relationship between the value subjects after integration transformation. This part prominently analyzes the trend of integration of the operators, SP, and terminal manufacturers. Drawing on relevant research literature, it compares the telecom industry value chain to the ecosystem, thinking key species that exist in the telecommunications industry value chain—telecom operators, and pointing out that the relationship between the main body of the telecom industry value chain is based on the operators to form symbiotic win-win relationship between the core and other subjects. It lies the foundation for the following research about relations of cooperation and competition between telecom operators and SP, the terminal manufacturers.The fifth Chapter analyzes the relationship between the operators and SP, the terminal operators through the establishment of the theoretical model. Telecom operators is the core of the telecom industry value chain, on this base this part study the cooperation and competition relationship between the operators and SP. When studying the relationship between research and operators and SP.This part establishes a cooperative relationship model of competition between operators and SP. In the competitive model, because of huge market prospects of value-added services and technological progress, the operators hope to develop their own value-added services. On the basis,it studies based on entered-market the competitive relationship between operators and SP. After Operators enter the value-added services market, there are some disadvantages in the technical experience and business operation, compared with the SP. Business that operators produce alternative is compared with the SP’s buiness, so operators can only act as followers, and shunt part of the earnings of the SP. When reaching a competitive equilibrium, operator’s business volume and earnings are less than SP. In model of cooperation, SP use operator’s network resources to provide the data services, operators help SP to receive communications and information costs, and divide into the information costs. On this basis, this part studies respectively cooperation model of both sides to maximize their own interests and to maximize the overall interests of both sides, through the solution of the model, Obtaining when other conditions remain unchanged, the price of information costs, sharing ratio between operators and SP, the profits of both sides is respectively proportional to market demand, but is inversely proportional to the price elasticity coefficient. In the agency relationship between operators and terminal operators, the two sides hope to maximize their own benefit, both sides have competitive relationship in interest, at the same time, both sides have cooperative relations in business. This paper studies general sense agency relationship, when the operator takes shallow terminal customization mode. Through the solution of the model, it determines operator to design the optimal incentive strength to terminal operators, appropriate strength of the incentive will be conducive to the development of bilateral relations.This article may have the innovations:First, Using of the industrial chain integration theory analyzes the integration trend of the telecommunications industry value chain. Value subjects grow transition to the other value aspect, this causes that relationship between value subjects become both cooperation and competition relationship from simple upstream and downstream supply relationship.Second, establishing Competitive relationship model based on entered-market between operators and SP. Current literatures study more cooperative relations between operators and SP, Less competitive relationship study. Against operators entering to SP field and introducing alternative business, this article draws on the Stackelberg model, it establishes Competition model in which the operator is the followers as a business, the SP is a leader.Third, this article abstracts relations between the operators and terminal suppliers for competitive and cooperative relations. In this article, Strategic competitive and cooperative relations between operators and terminal manufacturers means that both sides hope to maximize their own interests, In this case,there is competitive relationship in the business cooperation, this competitiveness is not a purely business competition, but is a benefit competition psychological. On this basis, this paper analyzes general sense of agency relationship between the operators and terminal operators.