As Chinese economy develops, service innovation has become a key element for which Chinese enterprises compete and upgrading of service industry all over China due to its influence on national economic competitiveness, among which the innovation of multi-agent service plays an important role in enterprises. This thesis mainly studies the concept of the Multi-agent Participate Model of Service Innovation and explores the strategic role and position of the model in communication industry. The purpose of this thesis includes two parts: firstly it studies the service innovation which multi-agent such as enterprises, customers and suppliers participate in so as to establish a new theoretical framework of such service innovation. Secondly, from the perspective of strategic management of enterprises, it considers the selection of Multi-agent Participate Model of Service Innovation in competitive strategies of the communication industry to clarify the strategic role and position of such model in management of the communication industry. Questionnaire and interview are two main data acquisition methods in this thesis. The author surveyed 100 employees from China Telecom with a questionnaire designed by herself. The data shows that customers’ demands for market and competitors’ competition in the market have a great influence on the innovation activities of enterprises. Some senior managers of China Telecom have been interviewed for this study. The interviews have shown the significance of Multi-agent Participate Model of Service Innovation in telecommunication industry and the Multi-agent Participate Model of Service Innovation can favorably be applied to telecommunication industry. The enterprises, customers, employees, managers and suppliers are of inseparable relationships in the model. As an innovation model of enterprises, Multi-agent Participate Model of Service Innovation can better mobilize enthusiasm of each participant of service innovation, and innovativeness of management service to clarify the strategic position of the model in enterprise management.