Strategy Analisis Of Private Capital Entering The Key Field Of Telecom Industry

On June28,2012, Ministry of industry and information technology (MIIT) of china issued "the implementation opinions on encouraging and guiding the private capital entering the telecom industry",8key fields of the private capital entering into the telecom industry were identified. The implementation opinions were regarded as another ice-breaking in communication industry since China joined the WTO. It is significant in practice, and has led to new opportunities for private capital entering telecom industry. The biggest bright spot in this "implementation opinions" was the resale service of mobile telecommunication, which was prohibited in recent10years, finally was opened up. It made a major breakthrough in the field of base mobile communication services, was one of the critical reforms in our country history to opening the telecom industry to private capital, it stimulated the private capital interest greatly. Soon thereafter, in May18,2013, the MIIT further issued a "pilot scheme to mobile telecommunication resale service". After the release of "Pilot scheme", the private capital responded actively, one hundred more or less companies applied for licenses to MIIT, and finally19private enterprises successfully got the virtual operating license.But before the resale service pilot of mobile telecommunication, the competition among three basic telecom operators in china is already very intense, coupled with the China’s mobile phone penetration rate rising in recent years and the market nearly saturatcd, in this context, a large number of virtual operators flocking, is further intensified the market competition in telecom industry. At the same time, virtual operators are completely at a disadvantage in the capital, experience, compared with the three basic operators, and they do not master the network resource either, the three basic operators are the competitors for virtual operator, they are also the suppliers for virtual operator. In such a complex competition environment, what kind of strategy can help virtual operators to achieve competitive advantage over basic operators and can help them to get a good market performance, become the key factor which decides the success or failure of the resale service pilot for mobile telecommunication.This paper takes the idea of combination theory and practice, first reviewed the general theory and method of strategic design, the SWOT method, BCG’s growth rate/market share rate matrix, Potter’s five forces model and the general strategic theory, power theory, cultural theory were reviewed and summarized as emphasis. On this basis, this paper analyzed the experience and lessons of six virtual operators worldwide, which carried out the virtual operation business earlier. This analysis can give reference for virtual operator in china. The relevant policy from MITT to carry out the mobile telecommunication resale service pilot was also analyzed. With the help of general method for strategic design, this paper analyzed and planed the strategy for virtual operator in china, and the best strategy is expected to be found.