Study On Chinese Mobile Communication Industry Based On SCP Paradigm

The mobile communication industry in China, as one of the most potentialand the fastest growing industries, has drawn all concern and attention. Before thereform and opening up, the whole telecommunication market had been monopolizedby the The Ministry of Posts and Telecommunications, and the establishment ofChina Union indicated that Chinese mobile communication industry had transformedinto duopoly from monopoly in1994; after several reorganizations, the mobilecommunication industry reformed into oligopoly market structure with three newoperators in2008, which were new China Mobile, new China Unicom and new ChinaTelecom. Great changes have taken place in Chinese mobile communicationindustry, but there were seldom studies on that the change of the structure in Chinesemobile communication industry will bring what changes of conduct and performance.The paper analyzes Chinese mobile communication industry based on the westernindustrial organization theory ‘Structure-Conduct-Performance’(SCP) paradigm.With empirical research as the main means, the theory breaks the specific industrydown into three areas of structure, conduct, performance, and draw the correlationamong industrial structure, enterprise conduct and market performance. Therefore,based on the SCP paradigm of industrial organization theory, treating the threeoperators after Chinese mobile communication industry recombination in2008as themain research objects, using a lot of detailed data, analyzes how the changes inChinese mobile communications industry structure affect the operators’ conduct andthen lead to the changes in the market performance, the last, gives suggestions for thegovernment and operators. The study found that, the mobile communication industryin China is oligopoly market structure; compared to the2G market, the operators’market scales in the3G market have little difference. Operators gain more marketshare by more favorable tariff packages, and the competition in the3G market is moreintense, at the same time, operators build brand awareness to achieve subjectivemobile’s market performance is much higher than the other two operators, and ChinaTelecom’s market performance is slightly higher than China Unicom.