The Profit Model Of Telecom Operators In The Mobile Internet Industry

The traditional profit model of telecom operators has could not meet thedevelopment of Mobile Internet because of the huge change of the telecom operatorsand of the user characteristics ever since the come of the era of Mobile Internet. Thecommercialization of4G, as well as the rapid development of large data and the cloudcomputing, is forcing telecom operators to make the transformation of traditionalprofit model. At the same time, the success of Apple’ App Store inspired the terminalmanufacturers and the content-service providers of the mobile Internet industry chainto emulate Apple’ model. For a time, a large number of on-line application storeplatforms appeared in the market, and the mobile Internet industry is showing aflourishing development situation. Bypassing telecom operators, content-serviceproviders and terminal manufacturers deal directly with the users with the use ofself-built platform, and are gradually erode telecom operators’position in the industrychain. With being becoming the pipeline operators, as well being losing huge profit,this paper will discuss telecom operators’new profit model in mobile Internet industrydeeply referring to the existing research theory in order to provide the telecomoperators better decision reference to adapt the new development environment.Firstly, this paper systematically examines telecom operators’ main profit modelof home and abroad, as well analyze the main defect of domestic telecom operators’profit model and digs into the inherent advantages of foreign telecom operators’profitmodel. Secondly, this paper analyze the feasibility of telecom operators building theprofit model based on two-sided market with the combination of new mobile Internetbusiness’s profit model, namely the profit model based on “social networking” and“terminal+application”, and the4C Theory, furthermore demonstrates the two-sidedmarket characteristics of domestic telecom operators’ platform. Finally, this papersystematically analyzes the main factors which affect telecom operators to price in theplatform with the usage of Hotelling Model, and further explores the best pricingstrategy of the telecom operators built on maximum profits from the early stages tothe subsequent competition stages.