Game Analysis and Strategy Research of Price War in China Mobile Communication Industry Based on 3G Technology Application

Telecommunications restructuring and 3G license mark the coming of 3G age. As telecommunication departments aim to reorganize business and provide the balanced 3G license, the competition of three telecom operators is becoming increasingly white-hot. China Mo-bile, China Unicom and China Telecom are competing in a tripartite confrontation market structure. They are evenly matched in the new round of competition. Service homogenization makes price competition an important aspect. Based on the analysis of China telecommunication market, this paper adopts price game model to explain the necessity of price war and how to make strategies, which focuses on providing theory foundation to China telecommunications companies about how to gain competition ad-vantages and making contributions to the development of China mobile communication industry.