Diffusion of Mobile Phones in China

18 Pages Posted: 7 Jul 2006

See all articles by Sunanda Sangwan

Sunanda Sangwan

Nanyang Technological University (NTU) - Nanyang Business School, Singapore

Louis-Francois Pau

Copenhagen Business School (CBS); Rotterdam School of Management; L.M. Ericsson; GIBS

Date Written: 14 2005, 10

Abstract

Diffusion of mobile communication has induced great societal changes in China. Factors at global market, communications industry and end-user market levels are driving the adoption at a high rate. Firstly, Chinas economic emergence together with e.g. accession to WTO has led to foreign investment increase in telecom and communications industry. Secondly, a parallel deregulation and reengineering of the telecom industry ensured an introduction of competition in the domestic terminals market and facilitated manufacturing in China. Finally, overall growth in China has increased purchasing power enabling consumers to adopt new technologies. At the market level, challenges and future growth depends on a favorable business environment both for local and multinationals organizations, operators and service providers, and most importantly to the distribution channels (retailers and resellers). Market mechanisms such as improvement in payment methods, regulations for content providers, branded and low-end mobile phones marketing, applications and support in Chinese language are required for a systematic and not just sporadic adoption of mobile devices. Product development and innovation, improvement in distribution infrastructure, mobile services operators skill enhancement are some measures that can growth of mobile communication and increase in average consumer spending.

Keywords: China, mobile phones diffusion, market developments, Chinas industrial policy

JEL Classification: M, L63, L96, Q55

Suggested Citation

Sangwan, Sunanda and Pau, Louis-Francois, Diffusion of Mobile Phones in China (14 2005, 10). ERIM Report Series Reference No. ERS-2005-056-LIS, Available at SSRN: https://ssrn.com/abstract=828177

Sunanda Sangwan (Contact Author)

Nanyang Technological University (NTU) - Nanyang Business School, Singapore ( email )

Nanyang Avenue 50
S3 B1A-26
Singapore, 639798
Singapore
+65 6790 5648 (Phone)

Louis-Francois Pau

Copenhagen Business School (CBS) ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Rotterdam School of Management ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

L.M. Ericsson ( email )

Kista
Sweden

GIBS ( email )

Lynnwood Road
Pretoria 5100, 0002
South Africa

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