| Abstract |
This paper provides a latest review to the development of mobile data
communications in China. The enormous growth of SMS services reveals the
huge potential of the wireless data communication market in China. In a
market where Internet has not been widely popular, the wireless system
has played a significant role in meeting the demand for point-to-point
and point-to-multipoint content communications. Experience in China
indicates that an advanced but not user-friendly technology like WAP is
not necessarily more welcomed than the simple but easy to use one such as
SMS. Importantly, an effective business model is critical - the mobile
data communication system should be an open system that is attractive to
content providers, because, like Internet, it is the availability of
large amount of content that makes data communication attractive to
subscribers. At the same time, if more subscribers are attracted by
mobile data communications, more content providers will be attracted to
supply more content - this is a process of positive feedback.
Additionally, a pricing scheme that enables mobile data communication to
be a cheaper substitute for voice service is also important, at least in
low-income economies where subscribers are sensitive to price. Last but
not least, consumer behavior should also be considered within the
cultural and political context.
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