Business ecosystem strategies of mobile network operators in the 3G era: The case of China Mobile

Authors:
Jing Zhang;Xiong-Jian Liang
Affiliations:
School of Economics and Management, Beijing University of Posts and Telecommunications, No. 10 Xi-Tu-Cheng Road, HaiDian District, Beijing 100876, China;School of Economics and Management, Beijing University of Posts and Telecommunications, No. 10 Xi-Tu-Cheng Road, HaiDian District, Beijing 100876, China
Venue:
Telecommunications Policy
Year:
2011

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Abstract

In order to define the mobile network operators' strategies of building value network in the 3G era, this paper applies the ecosystem principles to the mobile industry through a China Mobile case study. Based on an analytical framework of such principles, this paper reviews China Mobile's ecosystem, and identifies its success factors and problems. The results indicate that a complete ecosystem, where mobile network operators collaborate closely with value-added service providers, content/application providers, equipment and device manufacturers, and other involved organizations, can promote the development of mobile data services substantially. Therefore, mobile network operators should play a central role in the ecosystem by managing the entire value-chain and setting up proper value-sharing mechanisms. However, while doing so, problems may arise because of regulatory issues and information asymmetry. High-value common assets, a centralized management system, partner selection schemes and continuous innovations are important success factors.