A Study On Revenue Sharing Contract Of Value Added Services Of Telecommunication

With the progress of telecommunication and internet, the value added services are well going. In the view of supply chain, the framework of the tradition telecommunication supply chain is portrait extended by the new participants. That kind of success of the value added services are owe to cooperate business mode, but the lack of reasonable profit distribution rules make it also a problem for the long stratagem of this supply chain. This paper attempts to analyze this reasonable profit distribution mechanism by using revenue sharing contract of supply chain.This study applies the two-manufacturer revenue sharing contract ofsupply chain to establish a revenue sharing contract model with thedistributor as the core member of the value added services supply chain.The proposed model was exactly calculated and empirically evaluatedusing real operation data collected from a mobile operator company.Overall, the results reveal that 4:6 is the concerted result for MP and SP.The implication and the future work of this study are discussed.There are 3 major results in this paper as listed below:1. Summarizing the authority theoretic and literature in the fields ofsupply chain management,supply chain contractmanagement,revenue sharing contract of supply chain andvalue added services. It has been found in this paper that profitdistribution is one of the core problems in the research of supplychain. We can work out the reasonable distribution mechanismby set up a revenue sharing contract. So far, the only correlative paper in this area needs to improve a lot.2. The second result of this paper is forming the special revenue sharing contract model with the distributor as the core member of the value added services supply chain using the traditional two-manufacturer revenue sharing contract of supply chain for reference.3. The third one is that the proposed model was exactly calculated and empirically evaluated using real operation data collected from a mobile operator company. Overall, the results reveal that 4:6 is the concerted result for MP and SP.