Research on Competitive Game between Telecommunications Operators and SP Based on Replacement Service

The development of digital services makes telecommunications operators and service providers (SP) become cooperative and competitive relationships. The paper researches the competitive relationships between operators and SP. It establishes the competitive model between operators and SP based on replacement service used the concept of Stackelberg model, confirms the optimized service quantities and the profit distributary proportion which operators obtain from SP, analyses the deep-seated reasons that telecommunications operators can not completely substitute SP although telecommunications operators transform their roles to enter the service market and are stronger than SP, explains the paradoxical root of the theory and practical phenomenon combining the competitive case of China mobile fetion and QQ, proposes the strategy of the harmonious development of the telecommunications industrial value chain.