IEEE 2009(IFITA 2009 IEEE出版 EI&ISTP双检索)Research of Value-Added Service Operation of Third Gener

Research of Value-Added Service Operation of Third Generation WANG Chun1,2, XIE Zhong1, XU Shi-cai2, ZHANG Hai-ying2

1 School of Economics and Management, China University of Geosciences(CUG) (Wuhan),

Wuhan 430074, China

2 Wuhan Branch of China Telecom Corporation,Wuhan 430071, China

wangchun@https://www.360docs.net/doc/8d12171407.html,

ABSTRACT: It marks that China steps into the 3G era formally

by the third telecommunication reorganization. The operator will transfer from “speech emphasis communication operation” into “value-added service primarily of information operation,” income mostly transfers from “primary speech service & secondary value-added service” into “primary value-added service & secondary speech service”. How will the effective operation value-added service become the major issue which the operator must face? The article firstly made a brief introduction

of the 3G technical superiority, then proposed ten kind of value-added services provided by 3G, and from the focus of the organization, the industrial chain of construction, operations support, new business development and marketing aspects of the five operators on how to do a good job in the era of 3G value-added business operations.

KEYWORDS:Value-Added Service1; Operation2; Data Ming3 ;Third Generation Mobile Communication(3G)4

I.I NTRODUCTION

From “mobile telephone” to “visual mobile phone”, from circuit-switched to packet-switched, from dial-up online to kilo-mega Ethernet connecting to each personal computer… For 30 years, the rapid development of telecommunications industry has greatly promoted the process of China's modernization construction and improved our living standard.

The third telecom reorganization has already undrew the purdah in due form, what competition state will be formed among new China Unicom, new China Telecom and new China Mobile? Can new Unicom improve the weak state in virtue of mature industry chain of WCDMA? Can new Telecom realize a grand prospect after obtaining the license tag and network of CDMA? Can new Mobile make homemade TD-SCDMA greater and better; even bring it into the world market? It seems things are full of variables, and there is no answer to so many riddles. However, there seems only one path to all those answers, that is, the value-added service operation mode and effect of the operator in 3G. Those with successful operation will win the market.

II.T ECHNOLOGY A DVANTAGE OF 3G Comparing the 3G mobile communication technology (3G in short.) with 2G, the most significant difference is that

it provides high-speed data channel[1], and the technological breakthrough is mainly embodied in the following three aspects: A.Bandwidth

The network of 3G can offer high standard QoS service. It is capable of sustaining respective transmission at least 2Mbps、384kbps and 144kbps whether indoors,outdoors or driving way. Streaming Media, video category service can operate fluently on the network of 3G.

B.Switch

On the basis of traditional circuit-switched, the packet-switched technology is introduced, which significiantly improves the exchange efficiency.

C.Coding

The 3G technology adopted more advanced wireless channel coding mechanism, which greatly optimizes the utilization of network.

III.T YPICAL VALUE-ADDED SERVICE OF 3G What value-added service can be offered in 3G era? Different answers can be obtained in light of different angels[2], such as video phone, immediate communication, color ring, pictures download, mobile phone bank, etc. The industry agrees on the service division into two major categories consistently as the service for the public users and for the group users. The public service can be subdivided into ten categories like video phone, mobile phone games, intelligent home and internet access and so on.

A.Video Phone

This category includes mobile video phone, Video-on-Demand and video download, etc, which are representative service of the 3G. The service of video phone has already started to offer at 2.75G. Due to the bandwidth constraint, video effect and business development was less than expected. The network of 3G can provide high speed data service required by QoS, mobile video phone, Video-on-Demand and video download will enjoy a rapid development.

B.Mobile Phone Games

The game online based on internet was a great success a few years ago, which created a myth of Tianqiao Chen’ Shanda company. In 3G era, the mobile phone screen is bigger with better handling capacity, the online games like “Legend, Westward Journey, the legendary Song” will definitely have an extraordinary splendor.

2009 International Forum on Information Technology and Application 2009 International Forum on Information Technology and Applications

C.Mobile Phone Music

It includes rings download, color ring, music delivery point service and so on. Along with color ring popularization, mobile phone becomes an important way for people to obtain the music resource anytime and anywhere. On one hand, mobile phone music brings customer a completely new way of music access and experience; on the other hand, it brings the music producer enormous sales and income, which is incomparable with the traditional music distribution channels[3]. Whinle in 3G era, mobile phone music will make

a bigger succuess.

D.Picture and Animation Download

In 2.75G, picture download is one of the most popular value-added service for users. According to statistics, in 2007, the users using picture and ring tones download occupied 53% of the 1X clients. The content of picture and animation will be more abundant in 3G era, the way of download will be simpler and more convenient, which must be the service with quickest development in early 3G operation days.

https://www.360docs.net/doc/8d12171407.html,rmation and Information Searching

It includes mobile phone newspaper, traffic conditions searching, ticket booking service, etc, which will satisfy a higher living level demanded by the customers. Because of large capacity and high transfer rate of 3G network, most searching services it supported are illustrated and real-time interactive content. The time is comeing soon when reading newspaper by mobile phone and mobile phone is a kind of discount card.

F.Mobile Phone Finance

During 2006 and 2007, a round of bull market in Chinese A stock market aroused the financing awareness of the Chinese people; therefore, mobile phone stock jobbing service enjoyed a booming development. In 3G era, higher speed, richer information, more service producers, better terminals cost-effective, all these factors will accelerate the fast development of mobile stock jobbing, mobile bank, mobile wallet and mobile payment service, etc.

G.Mobile Immediate Communication

The booming of internet created “Tencent Empire”,

A little penguin even affected hundreds of millions of people’s emotion. No one can challenge its great influence. There’s no special technological advantage of Tencent QQ, but its successful business mode is worthy of studying. China Unicom and China Mobile respectively put forward “ultra-message” and “fetion”, which is believed to achieve nice operation effect in the near future.

H.Location and Navigation Services

Automobiles popularization and rapid urban construction has advanced the fast development of the car navigation industry. An intellectual terminal of 3G can instead of car navigation systems completely. Moreover, it can avoid illegal manufacturers use piracy maps and ensure the benefits of map producers to realize a win-win situation of industry value chain.

I.Intelligent Home Service

Connect the equipments like household appliances and security devices, etc, with the intelligent home systems; one can conduct remote surveillance, controlling and affair management by mobile phone. From 2006, China Unicom have started a trial run of intelligent home service in Guangdong Province and other areas. It achieve a sound effect in the top class districts in Guangzhou and Dongguan areas, etc. We believe that intelligent home service will change our life in 3G era.

J.Internet Access service

With 153.6kbps’s rate of CDMA1X, China Unicom won a great success in internet access service, whose palmar broadband service of the company once obtained 90%’s share of wireless internet market at 2.75G. Mobile phones and laptops will speed up their integration into intellectual terminals, consequently, customers can enjoy unlimited information resource on-line.

IV.H OW DO THE T ELECOMMUNICATIONS OPERATORS

OPERATE THE VALUE-ADDED SERVICE WELL IN 3G?

Traditional phonic service operation focuses on sales channel structure, commission system, and price setting of SIM (UIM) card and terminals; value-added service operation of 3G has an essentially difference, such as the division of target customer is required to be more detailed and accurate, and the market development which is content and application centered, calls for ensuring value appeals of various interests at each link of the industry chain, etc. In 3G era, the main income of the operator will transfer from speech centered and value-added service supplemented into the opposite. How to effectively operate the value-added service is of great importance.

https://www.360docs.net/doc/8d12171407.html,anization and Architecture

During 2G times, the operators’ organizational setting and human resource allocation were made to conform to phonic service operation; while operators have to reform the existing organizational structure in 3G era to seek for the most suitable the organizational structure of value-added service research and development[4].The modified partial cause of the matrix organizational structure is recommended. Set up a separate value-added services business unit to be responsible for the operation of value-added services, which is an integration of maintenance, development, support, marketing promotion, etc.

B.Construction of Industry Value Chain

The industry value chain of value-added service is an open one. SP, CP, SI, system integrators, agents and customers have their own interests demand and value appeals. The monopoly situation of one major operator is

not conducive to the industry development. Operators must make endeavor to ensure the interest realization of each link in the industry chain as well as the value appeal; support the partners with rich resources, high reputation and strength to become bigger and stronger, so as to make the whole industry "cake" bigger and achieve a win-win situation.

C.New Value-Added Service Research and Development

Operators need to strengthen the value-added business marketing as well as the new business research and development, which require cost and cost paid, for instance, Ford spent hundreds of millions of dollars in developing new products - Love Dissel that ended in failure[5]. Looking at 3G operation course of the operators both at home and abroad, only Japan and South Korea are successful, Europe, United States, and Hong Kong have not achieved significant operating results. In Chinese mainland, a developing economic region, three operators will soon operate three kinds of 3G standards, which is unique worldwide. There is little successful 3G operation experience to lean from; therefore, the management level should fully support the research and development of new business, encourage innovation and exploration, and allow failure.

D.Operation Support System

2G operation support system is built on the single-business model, and on the basis of voice operation The basic business model of the operator’s operation analysis is "The proportion of month rant charge and local call charge as well as the changes of link relative ratio and year on year rise"; 3G's Operation Support System Should be established on the whole business model, application-oriented operating on the basis of the contents[6],the analysis of the basic mode of operation contingency as "mobile TV, mobile music accounted for and the number of users and what programs are most popular." 3G operations support systems should conduct a thorough reform,from the core design concept to adapt and promote business development.

E.Value-Added Service Marketing

1)Management operators should update their concepts, and treat the value-added services as a major issue relevant to the enterprise's survival. Nowadays, the concept and attitude of the management level determine the implementation direction and operation strength of the operation level. In 3G era, all operators stand on a relatively fair starting line, whether the competition situation transfer from a pattern of one company dominance into a tripartite confrontation is a test of the operators’ wisdom and competence. The management level is required to attach great importance to whether the value-added business can attain a successful operation.

2)To find the target user group of the subsidiary value added business users in precision and conduct data mining activities, based on data warehouse[7]:The types of value-added services is very rich, not only meet the users’ needs for information communication, but also satisfy the higher level demand in work, life and entertainment. Users in 3G era have an unprecedented diversity of information needs, operators of the user needs to conduct a more detailed research and a more sophisticated user group division. From the operation situation of 2.75G, the database based data shows increasingly difficult to meet the needs of sophisticated marketing, operators are faced with a dilemma of "submerged in the ocean of data but died of thirst in the information island,", so it’s a must for them to start data mining based on the data warehouse[8], and convert data into useful information, so as to implement "precision marketing."

3)Carding types of business, improve the user interface, from the perspective of users to determine pricing model and make a clear list of costs and calculation way.A wide range of value-added services, and technology dependent, from 2.75 G operating situation, operators are used to stand on their own point of promotion, such as endless professional technical words, separate information and communications costs the pricing model make it difficult for users to understand, all these hindered the promotion and popularization of business.

4)In the early stage of 3G era, seek for professional companies of marketing planning and promotion tp guide partners (SP, CP, SI, etc.) to make cooperative operation.Operators in 2G era had insufficient talent cultivation of value-added business operations.Coupling with 3G carrier operation is much more complex than 2 G, 3G's operationsexperts must have profound technical knowledge and proficiency in marketing theory and practice. Operators need to strengthen the talent introduction and cultivation of 3G operation.

5)During early 3G, strengthen the organic integration of mobile voice services, value-added services, fixed and data service,strengthen the binding function of the policy. Operators after the reorganization are all business operation oriented, need to give a full play to the whole business advantages to strengthen the operational integration among various business scopes. In initial 3G stage, use temporary mobile voice value-added services business subsidies to promote the development of value-added business, and gradually cultivate “murderer level” value-added service.

6)Establishing value-added services market brand, and intensify publicity efforts. In 2G era, brands like "Global Communication, the World Wind" and other brands have formed a certain market reputation, and promoted the mobile business popularization and development. China Unicom in 2004 put forward the "U-Max" brand of value-added business, but the issues like value-added business brand positioning, how to exert influence, how to separate from business brand, and how to achieve mutual progress are worthy of exploring in depth.

7)Cultivate channels that is suitable for 3G development. Start from its own channels, and gradually transfers the traditional channels of "selling UIM card and cellphone" into " value-added services selling and providing premium services"; and strive to expand new channels that conforming to the value-added features. 3G era operators must start from the channel, at first promoting and popularizing value-added services on the channel, while extensively search for value-added business promotion channels such as KTV, cinemas, brokerage trading halls, Internet pubs and other places, integrating them into the value-added industrial Chain.

8)To be market-oriented, customer-centered, all the departments of operators should cooperate well and take the benefits maximization of the company as the ultimate goal so as to achieve full marketing.Because all the operators adpot stringent KPI evaluation mechanism[9], which has outstanding advantages, but there also exist the defects like "individuals or small team to complete objectives without overall consideration, or even harm the achievement of the overall goal ". Countermeasures must be taken to weaken the negative impact brought by those defects. Especially in the era of 3G, with more business types, more detailed division of labor, there is a higher requirement towards the cooperation of various departments. Each operator must take the next procedure as his potential customer and strengthen cooperation and coordination, so as to achieve the company's overall goals.

C ONCLUSION

"Technology means people-oriented"! Like internet, the coming 3G era will definitely give rise to a series of social changes, and ultimately offer us more convenient life, more efficient work, and easier entertainment.

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