The Research Of Shanghai Telecom For Development Strategy Of IPTV

In the mainland of China, the development of broadband service has become slow. IPTV is a new source of profits for telecom operators, but there still some problems existing in this field which include limited scale of users, lack of value-added services, imcompleteness of the industrial chain, policy barriers, etc.This paper begins with the concept of IPTV and Shanghai Telecom's current IPTV business status, analyzing the development and operating pattern of IPTV in domestic and overseas market. Secondly the author analyzes macro circumstance of IPTV, which including industrial policy, market capacity, custumers, stakeholers, industrial chain, technology standards, etc. Thirdly the competition status and oportunity of IPTV for Shanghai Telecom are analyzed by means of the SWOT tool and Michael Porters Five Forces Model. Game theory is used to discuss the cooperation probability among system intergration groups, also the cooperation between they and Shanghai Telecom.The author believes that IPTV policy remains in a state of progressive opening, policy barriers still exist and hard to breakthough. The expansion of the user scale depends on the variety of customer's demand of services and the cultivation of consumption habit. While the standardization of industry standards, as well as the cooperation can attract industry stakeholders together to improve the IPTV industry. Therefore, the strategy of IPTV for Shanghai Telecom is: Firstly Shanghai Telecom should set down the IPTV standand to promote the industrial chain cooperation, also make contributions to equipment vendors'and content vendors'benign development. Secondly Shanghai Telecom should strength its cooperation with SMG, foucusing on content differentiation strategy. Finally Shanghai Telecom should keep close comunication and cooperation with government to get a better respond to the industrial policy.