The Research On The Game Relations Between The VNO And The Telecom Operator

In recent years,with the development of the science and technology,the diversification of the consumers’demands and the deregulation of the government,the people demand more and more data service and the prospects of the Value-added telecom services is very vast,so the emergence of the VNO in telecommunications industry is inevitable.The so-called VNO (VNO:Virtual Network Operator) refers to who does not have its own network resources and must rely on the telecommunications operator’s network to provide customers with personalized services.The VNO has had successful cases in foreign,but there is no VNO in the true sense in our country.The MIIT issued the document "Mobile resale business pilot program" on January 8,2013,it said that the Telecom Operators must cooperate with at least two resale companies during the pilot period.This views is the first initiative that the country encourage,support and guid the private capitals to enter the Telecommunications market in further.The develop of the experimental program marks a big progress that the telecommunications industry will be opened to the private capitals.This paper studies the vertical cooperation issues between the VNOs and the Telecom Operators,and then it discusses specifically the VNO’s cooperation, strategies with the infrastructure operators and the allocation of the cooperation benefits by setting game models.Firstly,the paper does a detailed description of the current situations of telecommunications industry,the value added services and the VNOs,and highlighting the importance of the VNOs.Secondly,the paper sets a non-cooperation model and a cooperation model between the VNO and the telecom operator.It concludes that both the each benefit and the overall benefit are increased through cooperation and also the consumers’ welfare is increased.Thirdly,the paper discusses specifically the cooperation mode and the benefit sharing issues of the cooperation,and then the paper analysis detailedly the cooperation issues by combining examples and cases.Finally,the paper summarizes the main research conclusions and gives suggestions to both the VNOs and the Telecom Operators.