The Mobile Communications Industry, Multi-product Pricing

The telecommunication industry of China have long been a monopoly until 1994 when China Unicom,the first Chinese telecom firm that competes with traditional telecommunication companies was introduced.Subsequently,China Telecom was divided into three companies:the new China Telecom,China Mobile and China Satellite Communications,with the paging business incorporated into China Unicom. In addition,to strengthen competition,the Government issued the permit China Netcom Corp,China Jitong and China Tietong.At present,a "5+1" competitive structure was formed in the telecommunication market of China.While in the mobile communication market,China Mobile,China Unicom and China Telecom occupy their respective market.The telecommunications industry is a leading industry which is the basis of today's society.Its development has a close relationship with national economic growth and the welfare of the community as a whole.Pricing is the core issue in industrial economics.Therefore,the pricing of telecommunication is vital to the healthy and rapid development of telecommunication industry and the national economy.With the growing maturity of the telecommunication market and increasingly fierce competition,the weaknesses of the former single pricing gradually emerged.The former pricing is increasingly unable to meet the development of the industry and the needs of the consumers.Since the introduction of competition in the telecommunications industry,the Government has gradually released its controls on the pricing of the enterprises.Thus,the enterprises have some rights of independent pricing.Under above circumstances,how should the operator make the prices of their products? Many of the previous studies investigate pricing from the perspective of government regulation.However,with the deregulation of the government,it is a question for enterprises to define their own prices in the competition which is the topic of this paper.This paper studied the pricing of telecommunication products from the point of view of a telecommunication operator,in particular,focusing on the differential pricing strategy which emerged due to the diversity of consumer demands.This paper is divided into five parts.The first chapter presents an overview of the context,content,contribution of the research.And past literatures home and abroad were discussed.In Chapterâ…¡,the multi-product pricing strategy of mobile communication was put forward on the basis that demand is correlate,without considering the pricing theory and practice on correlated demand.Chapterâ…¢, embarking upon the multi-product pricing of mobile communication based on correlated producing,the multi-product pricings of both one-way and two-way access network were investigated.And conclusions were made.Chapterâ…£examines the multi-product pricing of the mobile communications market in Chengdu.The pricing of mobile communications products of the three major operators in Chengdu was analyzed and proposals were put forward.The paper is concluded in Chapterâ…¤.