Research On Investment Strategies Of Telecom Networks For Sichuan Tietong Corporation

With the evolvement of China telecom market, return on investment (ROI) of telecom networks is critical for telecom operators in terms of increasing revenue and enhancing competitive forces. Taking Sichuan Tietong corporation as the investigated subject, this paper proposes several suggestions for improving investment strategies on telecom network infrastructure. A detailed analysis based on a history of Sichuan Tietong, from year 2001 to 2007, is presented including investment environments, investment structure, telecom resource provisioning, costs and benefits of construction, and so on. This paper has conducted innovative research on the following aspects: the cost control of invest in the construction, revitalization of telecom resources and post evaluation of investment projects on railway private networks. Firstly, the analysis are done based on practical statistics data from related industry of Sichuan province and Sichuan Tietong itself, with a consideration that proposed suggestions could fit with current situation of Sichuan Tietong. Specifically, this paper proposes simple, convenient and feasible approach to evaluate investment costs for city-level marketing departments, as well as some hints for selective revitalization of local telecom resources. Hence the proposed approach could be beneficial to cost control of network constructions and telecom resource provisioning. Secondly, this paper proposes several ideas of post evaluation of investment projects on Tietong railway private networks while currently this work has not yet been started in China Tietong corporation.This paper is organized as follows: Chapter 1 gives an introduction of background, motivation, main content and research methodology of this paper, with a focus on state of art and future trends of network investment by telecom operators home and abroad. Chapter 2 presents the features and structures of telecom network investment, the relation between investment and communication capacities as well revenues, and indicators to measure effectiveness of investment. Chapter 3 analyses the current situation of Sichuan TieTong and evaluates its investment efficiency within Sichuan telecom market. Chapter 4 gives a deep analysis on current issues of investment strategy in Sichuan Tietong and possible reasons under the cover. Chapter 5 proposes suggestions to improve investment strategies of Sichuan Tietong and Chapter 6 concludes the whole paper with presenting future works.