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Operator’s Mobile Internet Strategy in the process of

Converged Network

Song Juan Tang Shoulian

School of economics and management School of economics and management
Beijing University of Posts and Telecommunications Beijing University of Posts and Telecommunications
Beijing, China, 100876 Beijing, China, 100876

Abstract—It is as a result of this profound converged network

that mobile internet has emerged as both a new phenomenon and
a necessity. Mobile internet is promoted by the convergence of
the traditional Internet and mobile terminals which is playing an
important role of the internet by advantages of a large user base
and further explore of the cell phones and other mobile electronic
devices. At the crossroads of the rapid developing mobile internet
industry, mobile operator should be sensitive to seize the trend in
order to achieve its long-term sustainable development. This
paper begins by describing the origin and development of mobile
Internet. Then, based on the analysis of the mobile internet
development environment and the development trend of mobile
operators in china, the paper brings forward some effective Figure 1. Mobile internet originated from the converged network
strategies with a view to the domestic mobile operators and
thereby generates novel insights for researchers, managers and At the crossroads of the rapid developing mobile internet,
lots of carriers are sensitive to seize the trend of converged
Keywords-mobile internet; mobile operators; converged network in order to achieve their long-term sustainable
network; strategy development. By advantage of unique content and products,
internet companies are becoming stronger in the mobile
internet value chain. Taking the Apple's iPhone as a good
I. INTRODUCTION example, iPhone provides users with a revolutionary concept
The convergence of the traditional internet, mobile network and the definition of a new generation of mobile phones which
and mobile intelligent terminal attributes to the development of should have the form, function and feel. Apple makes the
the emerging mobile internet which is taking advantage of iPhone's success go beyond the traditional cell phone
mobile internet connectivity, wireless capabilities, smart manufacturers, but also win a better position in the value chain.
mobile devices and mobile computing functionality. Mobile This is a huge shock to the traditional telecommunication
internet presents development characteristics of digital and IP- business model and market concept.
oriented. Digital provides a unified format for digital
Apart from Apple, Microsoft and Google are also gearing
presentation and IP technology provides a uniform data
up; steadily advance their mobile internet strategies. Currently,
interchange format. As the premise, network communications
Microsoft has identified the mobile internet as one of the five
and data sources have become relatively simple that is an
strategic directions and then takes the advantage of the terminal
important change in the information industry. Industrial
to enter the market. As the Fone+ project successfully
technology integration will give users a new "Super Media"
developed, the users can use Bluetooth or WiFi to connect to
experience, that is, Personal Computing, Personal
the TV and realize lots of functions such as surfing internet,
Communication, Personal Control, which brings users a new
listening to music, watching videos, sending and receiving
way of life and work. The mobile internet originated from the
mails, processing documents and so on. Google is still in
converged network can be shown in Figure1. development phase of the GPhone which is integrated a cell
phone, cell phone software, mobile advertising and internet
telephony in one product.
Under the circumstances, the mobile operators hasten to
involve in the competition of the mobile internet. The
comprehensive strategies for the mainstream mobile operators
which step into the mobile internet should be put forward based
on their personality and integrated solutions that enhancing

978-1-4244-5326-9/10/$26.00 ©2010 IEEE

users’ stickiness, and thus share more cakes in the industry dependence on the product. Users to "man - who" dialogue
value chain. In the process of converged network, if the mobile model becomes information manufacturing center, with more
operators could bring the mobile internet strategies into play, peer to peer transmission of information. Nowadays, Web2.0 is
they will get more opportunity to be successful. So the point to becoming a widely accepted concept; it is believed the use of
research the mobile operators’ mobile internet strategy is future mobile internet will bring a new change in messaging
speaking for itself. mode. Figure2 shows the messaging model in the age of Web
The mobile internet development environment analysis
here will provide a foundation for future work on the mobile
operators’ mobile internet strategies. The evolution of mobile
internet development environment can be categorized in three

A. Development of Users and their demands

From the perspective of user acceptance to mobile internet,
it has a good user base and development trend in the Asia
Pacific region. In 2009, about 50% mobile phone users has Figure 2. Messaging model in the age of Web 2.0
experienced internet access in the Asia Pacific region,
compared with an increase of three times in 2006, the user C. Development of Content and business
acceptance to the mobile internet is very high. In the Japanese
In China, mobile internet applications include ringtones,
market, at the end of 2006, there are 99.6 million people use
news, IM chat, alumni and e-mail, in which the download of
mobile devices to access the internet, accounting for about 3/5
the ringtones accounts for more than 50%. The trend of user
of Japan's population. According to Nokia's internal statistical
demand for the development of mobile internet is from the
data, the number of the users through the built-in Nokia mobile
traditional standard of communication and information to
phones to access is growing rapidly, and half past of them are
individuality, diversity, the demand for interactive evolution.
from China. The latest CNNIC survey data also shows that in
Among them, mobile IM, mobile game, mobile search, mobile
the existing mobile internet users, there are more than half of
advertising and mobile email have been more optimistic
new users within a year. Thus, the development of domestic
prospects for the development which are expected to become
new consumers of mobile Internet, especially the relatively
the first step for mobile internet across the barriers. In this
higher degree of acceptance is very promising.
paper, we bring forward China's mobile internet business
identification matrix as shown in Figure3 below from the
B. Development of Messaging model aspects of the network requirements and operational capability
In the age of traditional internet, push model of information for mobile operators.
leads to poor target and lack of a user's screen; currently, the
mass advertising message is stuck in this stage. With the
development of technologies such as mobile search, mobile
internet will use pull model to extract information, in which
stage users can take the initiative needs to find information
from a source. However, this way still has certain drawbacks:
timeliness of information retrieval and requirements of the
good capabilities to users. In the third stage of mobile internet
development, based on multi-media communication platform,
mobile internet super-media age will achieve the two
complement each other in order to protect not only the rapid
push-pull mode with the supply, but also through classification
for the different users to provide tailor-style service. This will
be a new breakthrough in mobile internet message
Figure 3. Mobile internet business identification matrix in China
In addition, in the 3G era, Web2.0 shows up in the mobile
internet which will subverts the traditional news portal network With results from the analysis, mobile IM service as a core
platform-centric information dissemination model to a and integrated platform makes us to focus on mobile instant
"personal media" and realize that the individuals manufacture messaging business development and try to make the
information and spread it to many other individuals. The core advantage of its business integration capabilities to provide
idea of Web2.0 is the SNS - social networking which makes users with a comprehensive entertainment, information and
full use of "Six Degrees of Separation theory" to increase the business solutions to increase users’ stickiness.
viscosity between human beings and then increase user
From the overall trend, mobile internet should be targeted make full use of foreign operator’s experience to realize the
for individuality, diversity and the demand for interactive wired and wireless internet achieve a virtuous circle of
development drawing on the concept of Web2.0 and combined development.
with the privacy of mobile terminals and special properties of
mobile internet which promotes content services and South Korea SKT makes users to transit between the two
applications into a new stage. networks more natural and smoother by promoting wired
internet and wireless internet together. SKT has its own wired
and wireless multimedia internet platform – NATE which has
III. THE MOBILE INTERNET BUSINESS grown into the South Korea's top portal sites of cable version
DEVELOPMENT STRATEGIES FOR MOBILE and NATE wireless version for wireless data services provides
OPERATORS a good platform for the promotion. The music portal MELON
Facing up to cross-sector competition in the context of and game portal GXG are integrated into the NATE platform
industrial integration and the development of mobile internet, that allows users to enjoy an abundant content and services. In
mobile operators should respond promptly to seize the the beginning stage, the first quarter of 2006, NATE’s
initiative in the value chain to make the mobile internet contribution to revenue was 3.67 billion U.S. dollars,
develop fast and sound. Specifically, mobile operators can accounting for more than half of the wireless internet revenue.
expand business model by constructing a user database and It is wisdom to make the wired and wireless internet
carrying out personalized business marketing. The mobile develops together at stage of the popularity in mobile internet
telecommunications network operators take advantage of high- for the mobile operators. From the user's perspective, the "dual-
quality, wide coverage dominate in the value chain. Large mode" services and products are available to all users at the
users of resources enable mobile operators to fully understand same time; from their business perspective, wired and wireless
the users’ behavior, grant users’ demands easily, and then can complement each other to maximize the use of resources.
control the value chain. Therefore, operators can fasten the
development of mobile internet by making full use of their own C. Improve the basic environment and promote the mobile
core strengths to guide business users. The effective cross- internet business applications steadily
sector cooperation, and vigorously enhancement of the relevant
supporting services, entertainment, information and business According to the 3G business survey in 2007 from "Global
integrated development are the initiative of the development of Financial Watch", 34% of respondents believe that mobile
the mobile internet services. Mobile operators’ mobile internet services should be the main business items. Nokia's survey also
business strategy should focus on the following points. indicates that the vast majority of enterprises are the existence
of "hidden mobile workers," about 60% of employees use
mobile phones in the office. This makes us to focus on the
A. Make a clear position in value chain and to be a good
inherent potential of mobile internet business applications.
channel provider and business integrator
As the traditional information, entertainment, business and Due to the business operations, enterprises have a strong
other services on the internet transplant to the mobile internet, demand in the precision marketing and personalized services
the value chain of mobile internet industry is extended. And on the mobile internet business applications. Such as Hewlett-
then mobile operator clarifies their value chain positioning Packard administrates scheduling on-site service engineers
becomes particularly critical. with the mobile commerce technology; Coca-Cola collects the
first-line sales data using of the mobile commerce technology;
For the value chain positioning, mobile operators should Bank of China provides a warm and practical message and
pay more attention to their own advantages, strengthen the reminders for the recipients. It is should be said that the
dominant position, find the strongest partners in value chain, enhancement of mobile bandwidth in the future will greatly
and create win-win cooperation and harmonious industrial stimulate the potential demand for mobile commerce. In the 3G
ecosystem. For mobile operators, it is very important that or B3G era, mobile internet business applications will be
contact with customers directly to control the key link, developed step by step.
including customer portal - access portal; customer experience
and the environment - business platform; the carrier of the Although the industry chain parties are all enthusiastic to
customer experience - the terminal. Extensive network of develop the mobile internet, the basic environment of the
resources allows mobile operators to access to the portal mobile internet business application needs to be improved.
smoothly and occupy the business platform. At the same time, Such as the user's acceptance, addressing modes, terminal
by virtue of the network, portal, platform, control over the functional limitations, mobile payment environment, RFID
Branch, the mobile operators should strengthen the influence of application environment and other infrastructure elements are
the terminal in order to control key points very well. present lacking. Therefore, it is necessary to rely on the
strength together to promote mobile internet business
B. Push "dual-mode" services actively and develop the wired applications, and use it as the breakthrough to push the
comprehensive development of mobile internet services.
and wireless together
Mobile internet business inherited but different from the
traditional internet. Two network services will be long-term
coexistence and mutual promotion. In dealing with the
relationship between them, China's mobile operators should
D. Deepen information products to provide interactive IV. CONCLUSION
functionality and increase customers’ stickiness At present, the mobile internet development strategy for
With the development of the Web2.0 and mobile broadband mobile operators in the process of the converged network has
technologies, users’ demands and interactive personalized become a focus in the telecommunication industry. Reviewing
requirements are increasingly dominant, so mobile operators all the researches on it, there are still remained so many
need to provide diverse, one-stop content and services to meet questions to be answered from different aspects and with view
users’ requirements. However, this process is certainly not easy, to different research methods and due to the consideration of
and the mobile operators need increase the interactive module, the operation practice. Based on the business environment
use new product development philosophy as a guide on the research, the paper does the further analyses on the mobile
internet and be more concerned about the development of the operators’ development strategy of the mobile internet and
users’ experience and the change of their requirements. An thereby generates novel insights for researchers, managers and
innovative business operation model is crucial to enhance the investors.
business experience and customer value. In the specific
business development, the mobile operators should enhance the REFERENCES
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