Research on telecom service providers’ network charge strategy based on two-sided market theory

Against the background of increasingly mature mobile internet eco-system, internet companies have been continuing pursuing the innovation of internet applications. The action has brought about not only more clicks from the netizens but also gave rise to mounting network burden. Telecom service providers are now faced with the dual pressure from both the soaring broadband building and maintenance costs as well as the declining traditional operating revenues. They wish to find a way to abolish the previous unified pricing model and shift it into the differential charging model by offering graded data flow services. Consequently, the controversy over “net neutrality” has been aroused in the whole society. In this article we analyze the optimum prices in different stages of the internet eco-system, and establish two-sided market model for further research.