The Digital Age of Mobile Cellular Network in Germany and China：Policies,Technologies and Markets （Part Ⅱ）

The German Postal Reform I in 1989 introduced competition in the mobile cellular market. German cellular operators, DeTeMobil, Mannesmann, E-Plus and VIAG Interkom, built D1-, D2-, E1-and E2-Netze based on GSM standards made in Europe. China Unicom was created in 1994 and China Telecom was separated from MPT in 1995. China Telecom and China Unicom competed in a duopoly from the mid-1990s onwards and the cellular services provided by them also rely on GSM standards. China Telecom additionally deployed XLT technology (PHS) from the late 1990s onwards. While DeTeMobil and Mannesmann conquered approximately 80%-90% of the market throughout the 1990s and were the two dominant market players in Germany, China's cellular market was mainly controlled by China Mobile. In Germany, prices related to cellular technology continued the downwards trend as a major result of the process of deregulation, liberalisation and competition. In China, price wars had led to significant price reductions in the cellular market. Although network operators in both countries strived to deliver differentiated cellular services, the two national markets in the 1990s were visibly shaped by product homogeneity.