The Research On The Transformation Of Fixed Telecommunications Network Services

One of the objects in "Ninth Five-Year Plan and the Long-Term Goals for2010" is "To 2010, the information industry will be the country's largest industryand become the main driving force for the growth of the national economy".Based on it, this dissertation discusses the transformation of fixedtelecommunications network services (FTNS) operator which is an importantissue for information industry at present.The transformation of FTNS operator is an indisputable fact, but how totransform is still a very controversial issue. The main innovation of thisdissertation is to link the transformation of FTNS operator with 11 mathematicalmodels, especially with the problems involved in the process of verticalintegration. These questions are analyzed deeply from the qualitative andquantitative points. Primary research and innovation points can be summarized asthe following aspects:1. Prove the necessity of the transformation by two mathmetical modelswhich are "self-organizing evolutionary model of information industry" and"competitive model of information industry".(?) "Self-organizing evolutionary model of information industry" isestablished from the traditional industrial self-organizing evolutionary process.Fractal Brownian Motion in fractal theory is introduced to it, so "Self-organizingevolutionary model of information industry based on Fractional BrownianMotion" is put forward. After that the validity of the revised model is proved byusing the actual income of the telecommunication industry.(?) "Competition model of information industry" describes the competitiveprocess between FTNS operators and mobile ones using mathematical method. The result that the substituting of mobile operators to FTNS operators is a naturaltrend is concluded by solving the characteristic roots of these equations. Thisdissertation judges the stability of the stationary point in different cases andanalyzes the ultimate results and the actual meaning. So we can say that only thetransformation can change the fate of FTNS operator.2. Discuss the meaning, causes and models of the transformation of FTNSoperator in detail. Research direction of this dissertation is to integrate the Intemetindustry chain vertically which is one of the transformation models.(?) Based on the experiences of foreign operators in transformation, we canconclude the strategies of China's FTNS operator from the perspective of industryevolution: basing on the network, upholding the thinking of "many a little makesmickle", using staggered strategy, changing the business models according to thefacts.(?) The specific measures of transformation are: innovate business modelsthrough integration and cooperation; expand new businesses greatly and recycletraditional services and so on.(?) Learn from the successful experience of the restaurant industry throughanalyzing its industrial chain. Reveal the feasibility of the action that FTNSoperator vertically integrates industrial chain from three dimensions that are profitmodel, content and the life cycle. Then get the conclusion that the transformationof FTNS operator will not destroy the justice of the Internet industry chain. Thecompetition between FTNS operator and other enterprises is only the survival ofthe fittest, not the law of the jungle.3. Since integrating industrial chain vertically is an important direction of thetransformation of FTNS operator, it is necessary to know the Internet businessrules in order to ensure the success of the transformation. The profit model ofIntemet business and the evolution process of CP/SP are researched throtgh fivemathematical models.(?) Establish "income and expenses model of Internet business" based on thetheory of Enterprise Growth. The advantages and disadvantages of two kinds ofpayoff models are pointed out by analyzing the dynamic evolution of profit. Thecorresponding quantitative relationships are also obtained. (?) Establish "pricing model between operators and CP". Explore thestability of the model solution by using the method of isoclinal line. Analyze theresponsive ability of CP when the market is quickly changing.(?) Give "the revised model of service diffusion". Prove that innovation andimitation coefficients should be changing with time going on. Based on thenumber of fixed telephone subscribers, we can say that the revised model is fitterfor the measured data than the traditional one.(?) Establish "pricing model of SP in duopoly telecommunication markets".This model proves that if the service that SP provides can't greatly exceed carry'ssubscriber number, three-party cooperation is the equilibrium solution. However,if the service can bring a huge sum of profits for the carrier who cooperates withSP alone, carriers will deviate from the equilibrium solution, that is, he will lookfor the cooperation with SP alone. In this dissertation, the value range of thetri-game under various cases is given by mathematics method. It can provide areference for carriers and SP when they consider how to decide share ratio.4. Based on the research of Internet business evolution, we discuss theinfluence from the transformation to two kinds of payoff models of Internetbusiness by mathmetical method.(?) "The diffusion model in competitive market" discusses the effect fromthe coefficients of innovation and imitation to the latent users and present ones.(?) "The impact model of price factor to diffusion model" discusses theinfluence to innovation coefficient in diffusion model which comes from price,content and advertisement. The influence can be divided into three cases, so thedifferent cases' results are given in this dissertation quantitatively.(?) Based on the two models, the result is that for the service mainly gottenprofit from advertisement, FTNS operator acted as either a pioneer or a followerwill enhance the barriers to entry; for the service gotten profit from not onlyadvertisement but also users, the operator will become a very dangerousantagonist for others. But the quality of content and service is the trump for theenterprise's success. If the enterprise can be sure that his content or servicecould not be imitated, the impact from the operator will be greatly reduced.5. The direction of the transformation of FTNS operator is not only to integrate Internet industry chain vertically, but also to pioneer wider marketsbased on its advantage. Other models are also researched at last.(?) Discuss the profit model of Green Power cider cafe launched by ChinaTelecom.(?) Study the feasibility and profitability of two new profit models usingprincipal-agent model—"To construct computer leasing network" and "To issuesmall money cards for network".Despite the earning of these services is not the decisive for huge FTNSoperator, "many a little makes mickle" may have more practical significance.Summing up, the transformation of FTNS operator is studied by mathematicmodeling in this dissertation. Using these models, we corroborate the conclusionswhich we are already familiar with and get some new ones, such as integratingInternet industry chain vertically by FTNS operator does not destroy theconcordant development of industry chain, whether the operator joining is not thekey of industry rise and fall. The quality of an enterprise's content and service is atrump for victory.