Study On The Fourth-Generation(4G) Data Traffic Monetization Strategy Of China Telecom Based On The Theory Of Competitive Advantage

In consideration of China's broadband strategy and the business use of the fourth-generation(4G)network controlled by the three operators in China,we can see that the continued growth of users' data traffic and the formation of data traffic-dependence have brought about explosive data traffic growth,along with the decline in the traditional voice services nowadays,making the rising trend of data business a foregone conclusion.In this context,it is unexpected that China's three major operators do not get revenue growth correspondingly,and the scissors difference has been growing constantly.This paper was illustrated from the perspective of China Telecom,who was at the disadvantage of the market as a latecomer.Currently,the key problem that needs to be focused on for China telecom is how to break through the predicament in the 4G stage and find new profit growth point to surpass others.Based on the background mentioned above,this paper took the theory of competitive advantage as the theoretical support,and utilized the case study and Structure-Conduct-Performance(SCP)model to analyze the methods of two-way encirclement.The case study object was the data traffic monetization history and strategy of foreign operators including USA,Europe,Japan and South Korea.Our results indicated that the US telecom market has completed the conversion of data traffic monetization,data traffic business and the corresponding revenue in Japan and South Korea was in the leading position,and the Europe and China were experiencing the transition of voice operating to traffic monetization.Besides,the SCP model was utilized to analyze the market data of China's mobile communication industry since 2009.It was concluded that China's mobile communication market structure was the high-oligopoly 1-type,and China Mobile had an absolute leading market share;with the high industry barriers,it was difficult for the potential industry entrants to insert impact on the existed market structure;all of the three operators have adopted a flexible pricing strategy of distinctive brand characteristics in the 4G stage;with differences in knowledge and strategies of the transformation,China Mobile ranked top in terms of business performance considering the absolute values,but with a declining trend,China Telecom and China Unicom has steadily raised with the opportunity to catch-up in the transformation process.In combination with the theory of competitive advantage and our conclusion,we proposed several internal management suggestions in human resources and marketing network to China Telecom,appealed to draw attention to data traffic business innovation and corporate customer marketing strategy,and came up with the important developing direction in creating intelligent pipeline and on structing Backward-data traffic Monetization platform to service the overall data traffic monetization strategy.Finally,the future research expectations were also put forward based on the limitations of this paper.