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1、TheMobileCentricInternetCountry:ChinaProjectforCOM546BySimonChenAgendaTheMobileServiceMarketinMainlandChinaTheDiffusionPatternofMobileServiceTheMobileValue-addedService(MVAS)InternetIndustry&MobileindustryTheMobileServiceMarketinMainlandChinaTheMobileServiceMarketinMainlandChinaFa
2、ctorsDrivingtheGrowthofMobilePhoneDiffusioninMainlandChinaGlobalEconomicDevelopmentsBeforebeadmittedtoWTO,Chinacommittedtopermitforeignorganizationstoprovideawiderangeoftelecommunicationservicethroughjoin-ventures.AccordingtheregulationofjoinventureinChina,formosttypeofservice,the
3、foreigninvestorscanholdupto49%ofco-venturedcompany(USTR,2004).Butmoreimportantlyformobilehandsetdiffusion,customstariffforITproductwerededucedtoallowcheapercomponentstomanufacturemobilewithbetterprice.Insteadofbeenimporteddirectly,thepriceofhandsetmakeinChinawillbecheaperforaverag
4、eChineseconsumers(Groombirdge,2000).Cheapmobilephoneproducedbydomesticmanufacturershaveincreasedthelevelofcompetitioninmobilephonemarket,andthelowerpricehandsetencouragingenduserstopurchasemobilephone(Ramstad,2003).FactorsDrivingtheGrowthofMobilePhoneDiffusioninMainlandChinaDomest
5、icMarketRegulationUntilthemid90s,TheChinesetelecommunicationsindustrywasunderthemonopolyofthestateandwasmanagedbytheformerMinistryofPostsandTelecommunications(MPT).From1995,reorganizationintroducedfournewcompanies,eachwithafocusedobjectivebutstilladiversemixoffixed,transportandwir
6、elessorsatellitenetworks:ChinaUnicom,ChinaTelecom,ChinaMobile,ChinaNetworkTelecom(ChinaNetcom),andChinaSatellite;andaproposedChinaRailwayTelecom(ChinaRailcom)inthenearfutureFactorsDrivingtheGrowthofMobilePhoneDiffusioninMainlandChinaTheEvolutionofMarketStructure:FactorsDrivingtheG
7、rowthofMobilePhoneDiffusioninMainlandChinaPrepaymentPriceModelThemobilecommunicationsmarketinChinafavorsprepaidpricemodelbecauseofitsmarketcharacteristics.Thismodelaccountstoabout90%ofallpricestrategiesaccordingtoGSMAssociationdatapresentedatGSMWorld2004.Newsubscribersareincreasin
8、glyfromlowincomeandlowusagemarket
