This paper documents and examines the course of the Little‐Smart deployment in China by looking closely at the technology comparison, demand pull and supply push, as well as government regulations.
It deploys an empirical approach and relies on second‐hand statistical data and some interviews.
Findings suggest that the competitive advantages, including the price difference between low mobility services and cellular phone services, are the most significant drivers for the fast deployment and growth of low mobility services including PHS and Little‐Smart service, with the aid of other non‐economic factors. The changing landscape in China's wireless market, including possible significant drop of cellular phone service prices as well as overall business and regulatory dynamics, will create an uncertain future for the Little‐Smart service to move through its product life cycle in the next few years.
Findings of this study could be significant both for China and for other countries to optimize their strategies for low mobility services.
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