Abstract:

With the development of China deploying the third generation mobile telecommunication, more latent entrant will entry into China mobile market which is now composed with duopoly mobile operations, China Mobile and China Unicom. The paper develops a game model based on two authorities and one entrant. It finds that the authorities will add investment capital and then deter the latent entrant successfully. But with the rule of license, the authorities cannot avoid the entrance, for this dilemma, this paper gives in-depth analysis and regulation suggestions.

Key words: duopoly, mobile operator, entry, deter