Empirical Study of Chinese Telecommunication Market Development Based on the Diffusion Model of the Network Innovations

The diffusion model of the innovations in the market has been combined with the average revenue per user model of the innovative products, and the revenue model for the different vendors has been submitted afterwards. Based on the models, the empirical study has been done for China Mobile, China Unicom, China Telecom and China Netcom using the date from 2002 to 2007, including the growing numbers of the subscribers, average revenue per user and the main operating revenues. In addition, the analysis and forecast of the revenues and the market share changes of the dominating Chinese telecommunication carriers both before and after their restructuring have been given. The results will provide the decision-making reference for the relevant administrations and enterprises´ managements.