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ng its national technology and industry. Relying on the support of MII, TD-SCDMA is hopefully becoming the major standard of Chinese mobile telecom industry in short term.

Although, there is promise to offer 3G service during 2008, the Chinese government has yet to decide on how to issue the 3G licenses. One possible explanation is that, in order to prepare for the large scale of commercial application, the government needs more time to test its own TD-SCDMA standards and to perfect the industrial chain of TD league.

Apparently, the delay in issuing 3G licenses in China will benefit domestic entrepreneurs such as Huawei、ZTE and Bird etc., but adversely deter the entry of international mobile phone giants such as Nokia, Motorola, and Samsung.

Smartphone has necessity to solve its problem of compatibleness on different OS platform to facilitate efficiency and effectiveness

It has been mentioned above, that there is mutual dependent relation between 3G and powerful terminal. Without the support of handset, the superiority of 3G cannot be embodied.

However, there are now mainly 3 kinds of OS on smartphone, so it cannot be convenient until united standard is adopted to establish compatible OS. Thus, one-off investment may bring broadest coverage and engender biggest yields.

Along with the change in the selling market, it is increasingly probable that exclusive store for handset and concatenated retailers, as well as the aforementioned network operators will dominate the distributing channels. In addition, with consideration of the enhanced degree of centralized manufacture, it is urgent to reshuffle both upstream and downstream chains to adapt new situation. The excess supply of handset has foreshowed the advent of market maturation.

In conclusion, because of the powerful union and governments’ desire to support national industry, it is still hopeful for domestic brand to turn over. While the intense competition in the handset industry will not mitigate because of excess capacity. A foreseeable industry change should be more syndicated company groups、 partitioned distributing channels、 and lots of content providers but no more profitable.

Section 3. Suggestion on Nokia’s future strategy decision in China

Once a tendency is affirmed, the relative competitive strategies should be changed accordingly to adapt to the current situation. Based on the above-mentioned impact due to the industrial variation, the following suggestions may be adopted to optimize Nokia’s competitive strategies:

As is mentioned above, through custom-made handsets, network operators are able to bind operations and thus press close to the market to achieve more market shares. From the developing experience of 3G handsets on the global market, it cannot be deterred that the network operators dominate the handset sale. As the no. 1 handset manufacturer in China, Nokia should make ready to take the following tactics to conform to the new industrial trend:

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