An Empirical Investigation-the Diffusion of Cellular Mobile Communication Systems in China

The first cellular mobile communication system in China was operated in 1987. Since then, the cellular subscribers in China have increased surprisingly from 700 by the end of 1987 to 10 million in middle of 1998. Cellular phone users in China rank world's third. The diffusion of cellular mobile communication systems (See the following Figure) is not only an economic development process but also an interorganizational networking process.

The classical diffusion model-bass model hypothesizes diffusion of innovations as a communication process similar to plant growth. However, this is not the case in telecommunication service industry. Diffusion of cellular mobile communication systems in China is the mix of communication and regulation. Policy flow, information flow, and material flow interact in the interorganizational network through which the adoption rates of cellular mobile communication systems by diverse organisations are determined.