Mapping China's 3G market with the strategic network paradigm

This paper explores the inter-firm linkages of China's 3G market players by applying the strategic network paradigm. The 3G strategic network mainly consists of mobile operators, content/application providers, service providers, handset manufacturers, mobile phone dealers, network equipment manufacturers, chipmakers, the government, and customers. Building from the strategic network concept, this paper identifies some of the features of China's 3G market. More new inter-firm ties have been established in the 3G era, while some old ties have been reshaped. Some firms have multiple positions or roles in one strategic network, which results in competition between former partners in the 3G market. Many firms choose to participate in more than one strategic network to exploit scope economies and mitigate the risks of being stranded on a sinking ship. China's government not only determines the initial status of the strategic networks, but also makes policies that affect the evolution of the 3G strategic networks. ► The authors studied China's 3G with the strategic network paradigm. ► China's mobile communication sector features new and changing inter-firm linkages in the 3G era. ► The government defines initial status of China's 3G strategic networks and making policies affecting their evolution.