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

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  • Zhang, Jing
  • Liang, Xiong-Jian

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.

Suggested Citation

  • Zhang, Jing & Liang, Xiong-Jian, 2011. "Business ecosystem strategies of mobile network operators in the 3G era: The case of China Mobile," Telecommunications Policy, Elsevier, vol. 35(2), pages 156-171, March.
  • Handle: RePEc:eee:telpol:v:35:y:2011:i:2:p:156-171
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    Citations

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    Cited by:

    1. Koeder, Marco Josef & Tanaka, Ema & Misawa, Kaori, 2012. "Mobile ecosystems in global transition: Driving factors of becoming a mobile ecosystem enabled. A comparison between the US and Japan," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72475, International Telecommunications Society (ITS).
    2. repec:spr:elmark:v:27:y:2017:i:2:d:10.1007_s12525-017-0251-8 is not listed on IDEAS
    3. Zhang, Jing & Liang, Xiong-jian, 2012. "Promoting green ICT in China: A framework based on innovation system approaches," Telecommunications Policy, Elsevier, vol. 36(10), pages 997-1013.
    4. Marcel Papert & Alexander Pflaum, 0. "Development of an Ecosystem Model for the Realization of Internet of Things (IoT) Services in Supply Chain Management," Electronic Markets, Springer;IIM University of St. Gallen, vol. 0, pages 1-15.
    5. Xia, Jun, 2012. "Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs," Telecommunications Policy, Elsevier, vol. 36(7), pages 503-521.
    6. Hu, Hanhui & Wan, Xing & Lv, Kui & Xu, Min, 2012. "Mapping China's 3G market with the strategic network paradigm," Telecommunications Policy, Elsevier, vol. 36(10), pages 977-988.
    7. Gao, Xudong & Liu, Jianxin, 2012. "Reprint of: Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 817-831.
    8. Shen, Wei, 2012. "Deconstructing the myth of Alipay Drama—Repoliticizing foreign investment in the telecommunications sector in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 929-942.
    9. Vialle, Pierre & Song, Junjie & Zhang, Jian, 2012. "Competing with dominant global standards in a catching-up context. The case of mobile standards in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 832-846.
    10. repec:gam:jsusta:v:9:y:2017:i:12:p:2247-:d:122095 is not listed on IDEAS
    11. Gao, Xudong & Liu, Jianxin, 2012. "Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(7), pages 531-545.
    12. Covadonga Gijón Tascón & Teresa Garín-Muñoz, & Teodosio Pérez-Amaral, 2012. "Satisfaction and protection of individual mobile telecommunications consumers," Documentos de Trabajo del ICAE 2012-21, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    13. Hong, Yu & Bar, François & An, Zheng, 2012. "Chinese telecommunications on the threshold of convergence: Contexts, possibilities, and limitations of forging a domestic demand-based growth model," Telecommunications Policy, Elsevier, vol. 36(10), pages 914-928.
    14. Xia, Jun, 2012. "Reprint of: Competition and regulation in China's 3G/4G mobile communications industry—Institutions, governance, and telecom SOEs," Telecommunications Policy, Elsevier, vol. 36(10), pages 798-816.
    15. Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
    16. Gao, Ping & Yu, Jiang & Lyytinen, Kalle, 2014. "Government in standardization in the catching-up context: Case of China's mobile system," Telecommunications Policy, Elsevier, vol. 38(2), pages 200-209.
    17. repec:spr:scient:v:111:y:2017:i:2:d:10.1007_s11192-017-2270-9 is not listed on IDEAS
    18. Kang, Jin-Su & Downing, Stephen, 2015. "Keystone effect on entry into two-sided markets: An analysis of the market entry of WiMAX," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 170-186.

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