Data Service: Characteristics, Market Structure, and the Role of Operator

1　Introduction　Since the development of telecommunication technologymake the operator able to offer data service to subscribers inthe mid 1990s, operators of various countries have madeenormous efforts to develop data service. Currently, the ar gument on 3G ( 3rd Generation, International MobileTelecommunications 2000) focuses on how to find, develop,and popularize application services in data service markettoo. Some researchers propose that even NTT DoCoMo can n…

Data Service:Characteristics,Market Structure,and the Role of Operator

To study characteristics and market structure of data service and the role of operator, this paper makes a commercial model by applying the theory of intermediaries and neoclassic economics. Data service has different economic characteristics from voice service. Firstly, production mode of data service is roundabout production, secondly, driving power of data service is economies of specialization, and finally, management method of data service is impersonal management. In data service market, information asymmetry and barrier to entry determine transaction efficiency and the specialization level of service providers indirectly. Therefore, operator should intervene in the market by offering trade service in order to promote development of service providers. Because of different quality of service providers, market structure of data service must be the state that trade platform built by operator and intermediary platform built by operator coexists.