Discussion Of Strategic Transition Path Of China's Telecom Industry

The establishment of market economic system has promoted dramatic transformations of telecommunication industry in China. After three significant reorganizations, the former monopolist General Administration of Telecommunications had been reorganized into six telecommunication operators including China Telecom, China Netcom, China Mobile, China Unicom, China Railcom, and China Satcom. On May 23rd,2008, Chinese telecom industry started a fourth reorganization, during which the former China Unicom and China Unicom merged into a new China Unicom, C net services taken over by China Telecom from Unicom,, and China Railcom incorporated into China Mobile. All these measures have given rise to three new competitive forces in Chinese telecom industry. The transformation of China's telecommunication industry in 2008 marked a new round of stategic transformation. The long-expected 3G has entered into the stage of construction, bringing major evolutions to and reinvigorating the steady structure of China's telecommunications. This round of transformation has not only started the building of next generation of mobile telecommunication network, but also has created new changes to the value chain in the overall industry. In conculsion, this strategic transformation of China's telecommunications will leave a large impact on the related sectors.This paper, within the theoretic framework of strategic mangement, probes into the strategic transformation of Chinese telecommunication sector based on a wide range of cases and analysis of the market environment and its evolution.