Telecom value-added Service Supply Chain Implanting Advertising Elements with two Service Providers

In this paper, the telecom value-added service chain with two service providers and one mobile operator is studied. Advertisement which is provided by Advertisers is implanted into value-added products as profit elements. First, the model is established by using game theory. In such a telecom supply chain, SPi is the follower and MP is the leader. Then, the optimal strategies are obtained through strict theoretical proof. Finally, we get the optimal decision when mobile operator and service provider have different profit share, and contrast the difference of product price, profits through the simulation. The paper provides a good idea for operations and management of the enterprise.