China Telecom

Under the serious pressure from new type of services like Mobile and VOIP etc, China Telecom is now in a very hard situation to survive. In the early 2005, China Telecom has proposed a new strategy - to become an Integrated Information Service provider. That means a whole transform within various areas of product and service, network and technology, as well as organization and human resources. The key part of the transform is service transform in which various new services such as IT service, Mobile service, International service and Value-added service based on broadband access and Internet application would be provided.This paper only studies one of the most important service strategies: enter into IT service market and provide IT services.First, this paper analyses the macro-circumstances, current situation and development trend of IT service market. The market in China is now in its primary stage and will have more room for development. And the requirements for IT services become rationalization, diversity and internationalization. It should be profitable for China Telecom to enter into this market.Second, this paper also analyses the experiences of foreign carriers who enter IT service market successfully such as British Telecom and Deutsche Telecom. These are valuable cases for China Telecom's reference.Then it also analyses the current situation of China Telecom and the strategy itself by applying the methods of Porter's Competitive Forces Model and SWOT. Thus well explains the necessity and feasibility of this transform.Last, special tactics for entering the IT service market and provision of IT services are proposed.