The Development Analysis of PHS in China

This paper, based on the background analysis of how personal handy-phone system (PHS) comes into existence, compares its development from its marketability, sustainability and profitability.. The research shows that PHS is very popular among the public and it develops very fast due to its ´mobility´ and low charges. With the intensifying competition and decreasing input by fixed phone operators (FPOs), its development is on the wane, thus affecting its sustainability. Seen from its economic values, PHS, up to now, still hasn´t turned losses to profits. However, as the jetton for FPOs to get the 3G license, it brings about long-term potential revenues while improving its subscribers´ welfare, thus its economic values can be better embodied in terms of its social values and option values.