Part One Research Preparation 2
Chapter 1 Introduction 2
1.1 Background 2
1.1.1 Technical Change in Telecommunications 2
Contents 2
Table 1-1 Changes of Telecom Density Rate 4
1.1.2 Growth of the Chinese Telecom Industry in Comparative Perspective 4
List of Tables 4
1.2 Core Issue and Research Goals 6
1.4 Conclusion 7
1.3 Research Contents and Framework 7
2.1 Characteristics of Telecommunications 8
Chapter 2 Literature Review 8
Figure 2-1 The Relationship between N and S 10
2.2 Globalization and Telecommunication Globalization 12
Table 2-1 Why Go International? 14
Figure 0-1 Overviews of this Book 14
List of Figures 14
Table 2-2 Main Cases of M A that Happened in the Telecom Field 17
2.3.1 Economies of Scale and Marshall Puzzle 19
2.3 Economies of Scale and Natural Monopoly 19
Figure 2-2 Scale of Production Scale of Increasing Returns 20
2.3.2 Natural Monopoly 24
2.3.3 Telecoms and Natural Monopoly 25
2.4 Barrier and Telecommunication Regulation 28
Table 2-3 Comparison of Incumbent and Entrant Monthly Costs Per Loop 29
2.5 Competitiveness and Competitive Advantage 34
Figore 2-3 Forces Driving Industry Competition(Porter Model) 36
Table 2-4 Analysis of the Structure of SWOT 38
Table 2-5 Competitive Description of Three Institutions 41
2.6 Conelusions 44
Chapter 3 Methodology Study 45
3.1 Introduction 45
3.2 Single Case and Multiple Cases 47
Figure 3-1 Basic Types of Designs for Case Studies 48
3.3 Case Study of China Telecom 49
Figure 3-2 Case Study of China Tekcom 51
3.4 Conclusions 52
4.1 Background 54
Chapter4 Development of the Chinese Telecom Industry 54
Part Two China Telecom-From Industry to Firm 54
4.2 Overviews on 100-Year of History of the Chinese Telecom Industry 57
Figure 4-1 Annual Value of Telecom Fixed Assets from 1952 to 1998(Billion RMB) 59
4.2.1 1900~1949 60
Table 4-1 Events in the Chinese Telecom Industry before PRC 61
4.2.2 1949~1978 62
Table 4-2 Events in the Chinese Telecom Industry from 1950 to 1978 64
Figure 4-2 Annual Changes of Telecom Turnover Rate(%) and GDP in China 65
4.2.3 1978~2000 65
Table 4-3 The Developing Subscribers Situation 71
Table 4-4 The Telecommunication Ability and Level in 2000 71
Table 4-5 Events in the Chinese Telecom Industry since 1978 72
Figure 4-3 Chinese Telecom Revenue as 210f GDP 72
4.3 Conclusions 74
5.1 Introduction 75
Chapter 5 Reform and Reorganization 75
Figure 5-1 Structure of the MPT 77
Figure 5-2 Structure Chart of the MII 78
5.2 Reorganization of China Telecom 79
Figure 5-3 Organization of China Telecom Before 1999 81
Figure 5-4 Organization of China Telecom After 1999 82
Figure 5-5 Organization of China Mobile 84
Figure 5-6 Organization of China Unicom 85
Figure 5-7 Organization of China Netcom 88
Figure 5-8 Organization of China Railcom 89
Table 5-1 The Coverage of Southern China Telecom and Northern China Telecom 90
5.3 Forces and Changes 91
Figore 5-9 Telecom Regulation From the End of the 1980s to 1993 95
Figure 5-10 Telecom Regulation From 1994 to 1998 95
Figtire 5-11 Telecom Regulation From 1998 to 2001 96
Figure 5-12 Telecom Regulation From 2001 to 2002 96
5.4 Conclusions 97
Table 6-1 Operation of the Telecom Service Market in China in 2000 98
Chapter 6 The Competitive Telecom Service Market 98
6.1 Changes in Market Structure 98
6.1.1 Changes in the Main Telecom Services 98
Table 6-2 Operatioas of the Telecom Service Market in China in 2002 99
Figure 6-1 Increase of IP Phones in China Telecom 101
Figure 6-2 Main Telecom Services in 2002 103
6.1.2 Changes in Market Penetration 103
Table 6-3 Changes in the Chinese Mobile Situation in 1999 104
Table 6-4 Markets Shares of the Leading Chinese Telecom Firms 106
6.2 Changes of Capabilities 107
Table 6-5 Telecom Operation Revenue in Chinese Service Sectors 107
Figure 6-3 Traffic and Revenue of Chinese Telecom Service Sector 108
Figure 6-4 Subscribers(Million)of Fixed and Mobile Phones 1998~2003 109
Table 6-6 Basic Indicators of Main Chinese Telecom Service Firms in 2001 109
Figure 6-5 Three Telephone Density Rares 111
Table 6-7 Capabilities of China Telecom from 1998 to 2001 112
Figure 6-6 Investment of Posts and Telecoms in Chinese Main Telecom Service Firms 112
Table 6-8 Subscriber Satisfaction Index to Chinese Telecom Service Firms 113
6.3 Demand and Supply 114
Table 6-9 Development of Chinese Telephones 115
Table 6-10 Telecom Services Penetration of Some Countries in 2001 116
Figure 6-7 Increasing Status of Telephone Penetration Rate from 1949 to 2000 116
Figure 6-8 China Telecoms Market by Revenue 119
6.4 Conclusions 120
7.1.1 Regulatory Framework 122
Part Three Competitive Analysis 122
Chapter 7 Regulation and Competition 122
7.1 Regulation and Deregulation 122
7.1.2 Regulatory Contents 124
7.1.3 Reregulation 126
7.2 Regulation and Competition 130
7.2.1 Regulation and Network Competition 131
7.2.2 Tariff and ARPU 135
Table 7-1 Comparing Data of the Local Tariff of Some Countries in 2000 137
Table 7-2 Mobile Tariffs in Some Countries and Areas in 2000 137
Table 7-3 China Telecom ARPU and Global ARPU 139
Figure 7-1 The ARPU of Fixed and Mobile Phones from 2001 to 2003 140
Figure 7-2 ARPU of China Mobile and China Unicom 1999~2001 140
7.3 Competitive Analysis of Potter Model 141
Figure 7-3 Porter Model Analysis of China Telecom 142
7.4 Conclusions 147
Chapter 8 Telecom Market Opening and Competition 148
8.1 International Comparison 148
Table 8-1 International Comparisons in Telecom Service Consumption 149
Table 8-2 International Comparisons in Telecom Tariffs 151
Table 8-3 International Comparisons in Telecom Investment 153
Table 8-4 Telecom Investment Proportion in GDP 154
Table 8-5 Telecom Investment Proportion in 2000 155
Table 8-6 The Main Large Telecom Companies in the World 156
Table 8-7 Comparison of Turnover per Employee 158
Table 8-8 Comparison of Profit per Employee 159
Table 8-9 Comparison of Capital per Employee 159
Table 8-10 Comparison between China Telecom and International Telecom Firms 159
Table 8-11 Catching-up Years for China Telecom 162
8.2.1 The WTO and the Chinese Telecom Service Market 162
8.2 The WTO and the Opening up of the Telecom Market 162
Table 8-12 The Schedule of China Entering WTO 163
Table 8-13 Basic Telecom Index of AIC Countries 164
Figure 8-1 Calling of Chinese Fixed and Mobile Phone from 2001 to 2003 165
Table 8-14 Telecom Market Opening Schedule After China Entered the WTO 166
8.2.2 International Telecom Giants in China 169
8.2.3 The WTO and the Barriers 172
8.3 Competitive Approach 175
Table 8-15 Analysis of SWOT to China Telecom 176
Figure 8-2 SWOT-Strengths 177
Figure 8-3 SWOT-Weakness 178
Figure 8-4 SWOT-Opportunities 178
Figure 8-5 SWOT-Threats 178
8.4 Conclusions 179
Chapter 9 Monopoly and the Competitive Position of China Telecom 180
9.1 Monopoly and Competition 180
9.2 Conclusions 192
10.1.1 Research Interest 194
10.1.2 Research Methodology 194
10.1 Introduction 194
Chapter 10 Conclusions and Further Research 194
Part Four Research Summary 194
Figure 10-1 Research Procedure 195
10.2 Main Conelusions and Further Study 196
Bibliography 202
Appendix 1 The Development Trend of Telecom Technology 213
Appendix 2 The Rise and Fall of the Iridium Company 222
Appendix 3 Questionnaire（1） 223
Appendix 4 Questionnaire（2） 224
Appendix 5 Index of Competitiveness 227
Index 231