Individual Telecommunications Tariffs in Chinese Communities

Individual Telecommunications Tariffs in Chinese Communities

H. Chen (Rotterdam School of Management, The Netherlands)
DOI: 10.4018/978-1-59904-558-0.ch017
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Abstract

The chapter addresses mobile service pricing and affordability issues in China. The goal is to assist fast diffusion and sustainable development of mobile services through pricing mechanisms. Diverse situations exist with a split between a large number of mostly rural people still lacking basic services; and some affluent mostly urban users wanting personalized value added services. A historical perspective is taken and tariff data are reported. Focussing on content and interactions, solutions are found in community-based individual tariffs; this business model fits especially well with the community culture rooted in Chinese tradition. Such a solution can facilitate the diffusion to all types of users, and also allow community members themselves to satisfy their own demands. Two cases are described: the gaming communities of Lianzhong; and the “Tianfu” rural communication communities in Sichuan province. Concluding remarks are made about existing technologies and standards needed by this approach, and about how to close the gap between the current situation and the envisaged implementation.

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