Research On Value Chain Of Sichuan Netcom Internet Value - Added Service

Entering the 21 st century, competition is still fierce in the telecommunications market in China, telecom charges continuously dropping, the substituting effect of mobile to fixed-line goes faster. The fixed voice revenue is going downward, which causes negative impact on the two fixed-line operators, the China Telecom and China Netcom. In order to adapt to the changing market demand and the competition in the future advantage, China’s fixed-line telecom operators have to implement restructuring strategies, from a communications operator to an information provider. At the same time, China’s Internet market is growing rapidly. The number of Chinese Internet users has surpassed the United States, ranked first in the world. The fixed-line operators must to pull focus on Internet to ensure the growth of revenue. Internet-based value added services plays a very important role in increasing revenue, user viscosity, and preventing the user loss for fixed-line operators. As a fixed-line operator, the Sichuan Netcom needs to know how to establish and develop the value chain of the Internet value-added services.By the end of 2008, in the new restructuration of telecom carriers, China Netcom and China Unicom merged into a new China Unicom. 3G and internet service were determined as the two key services to maximize the competitive advantage of the amalgamation. The new Sichuan Unicom established a new department in charge of developing the Internet business as a priority. The value chain of Internet value-added services established by the former Sichuan Netcom still plays an important role in Internet business.In this article, I studied the theory of the telecom value chain, telecom value-added services value chain, internet value-added services value chain, the “Pigs Game” model at first. The second, I analyzed of development trend of domestic and international Internet value-added value chain. And then, I used the SWOT analysis to determine the development strategy of Sichuan Netcom. Based on the research of the components of the domestic Internet value-added services value chain, I realized four kind of model of the Internet value-added services value chain and their characteristics. By choosing the model, Sichuan Netcom got the way to dominate the value chain.Based on the study of Internet value-added services value chain, I had used the index system and the Delphi method to establish the evaluation index system of SP after a survey. By using the test assessment, I had validated the scientificity and effectiveness of the valuation system of SP. Last, after the analysis of contribution to Internet revenue of the value chain, I had known the actual operating result of the value chain. The result shows a proper way for telecom carrier to establish an Internet value-added services value chain and to evaluate SP. Other telecom carriers also can use the evaluation index system of SP.