Telecommunication Price Regulation Analysis

Through more then 100 years development, telecommunication has became the main support of the worldwide economic development. Telecommunication is typically a website based industry, which is regarded as a natural monopoly industry traditionally. In the process of China's reformation and opening up to the outside world, telecommunication industry changed significantly. Several major reforms pushed telecommunication from bottleneck position to the fastest growth position. The main target of telecommunication revolution is to maximize social efficiency. Price was always the main problem faced by telecommunication operation. In fact, for many years telecommunication price was the conflict focus between telecommunication enterprise and clients, competition centre of telecommunication enterprises, and implementation difficulty by government.The aim of this article is to research the government regulation for telecommunication price. That is through researching the theory and method of telecommunication price regulation providing price references for telecommunication enterprises and government.The first part mainly introduced the telecommunication concept, theory of regulation and economic characteristics. Telecommunication is telecom in brief, refers to the user-specified point between two or more users by the transmission of information to choose the business or process, photoelectric signal on the transmission of information, a means of communication. Telecom, as much convenience of human social communication, makes interpersonal distance between the exchanges become possible, promoting economic and social development, and facilitate the people's life. Along with the Internet's rapid development, and human beings into a new information society, There is a capability in the world of networks enjoy networks brought us the fun, the people believe that the development of the telecommunications industry. greatly promote the development of human society. Its network of external and internal coordination, the scope of economic and economies of scale, the economic externality, Investment precipitating are four economic characteristics.Regulation, refers to certain government agencies based on the laws and regulations on the business activities of enterprises with some restrictions and provisions of the act. Regulation Theory devoted to the study of market failure, the government should take measures, the government intervention and whether the most efficient, or at least not to intervene effectively. Regulation of the telecommunications industry is mainly by the government's macro-control on the total market coordinated operation between enterprises, business enterprises and consumers, enterprises and operation of the relationship between the government, to ensure that the business activities of enterprises in line with the government's social objectives and consumer welfare. Government regulation as a major policy can be divided into the quality of regulation, Regulation fee pricing, access regulation, the regulatory system interoperability, Regulation of the market structure of four types.The second part is mainly the interconnectivity of the impact of telecommunications prices. First introduced the concept of interconnectivity, interoperability with social, technical, economic triple attributes. Interconnectivity of the telecommunications operator, in a certain extent, complementary, win-win strategy; In particular, the emerging operators are more concerned on which their survival. Interconnection not only for the telecommunications operator brings more intense competition, but also to provide more opportunities for development,How to seize the opportunity to give full play to their network characteristics, and produce demand, market prospects for the service is the key to development. After introducing the interoperability as well as the contents of settlement between issues discussed. The telecommunications network is the Internet charges fees for the network business areas. Different telecommunications enterprises competitive and economic interests conflict, on network interoperability between exert influence,therefore network interconnection fee pricing on telecommunications charges, as the theory and practice of a difficult. China's situation is even more serious. Interconnection is the cost of regulating the Internet both value-added network uneven economic means, the cost is reasonable to establish fair competition in the market preconditions. Internet too expensive and is not conducive to encouraging competition will re-enter directly increase the cost burden and weak competition; Low cost, existing telecommunications operators without the enthusiasm of the Internet, to the existing telecommunications operators to improve the quality of equipment and the Internet serious breach. So the reasonable cost of the Internet to improve the quality of interoperability to ensure smooth network and the Internet is very important.. The third part mainly affecting the prices of telecommunications and Internet costs of telecommunications policy analysis. Telecom prices subject to a wide range of factors and constraints, but primarily to costs associated most closely, Based on interconnectivity cost analysis shows that the system of price regulation related issues. By some examples illustrating the regulation of inter-network settlement system impeded the telecommunications industry development.Part IV price regulation of telecommunications reform and interconnectivity of the reasons for the re-establishment of a market environment where competitive prices - , in the price regulation system tasks and priorities have changed circumstances, the need to return to the market price mechanism. others to the government with a strong prevention and control of a vicious price competition capacity. Competition under the system of prices, the main operating on different networks between the settlement price regulation system against consumers of telecommunications services price regulation system were analyzed. Address interoperability and analysis of the problems and reasons : first, the lack of cost-based networks settlement criteria. Second, there is no operating business to truly reflect the value of the network. Third, the low rates of net accounts easily lead to a price war. Fourth, leased circuit networks and clearing arrears problem is serious. Fifth, the operation of the enterprise networks clearing projects awareness inconsistent. Interconnectivity of the Internet is different from network operators of the physical link exchange , which is the exchange of business. Interconnection impact of the main factors include : policy, technical and economic factors.The analysis of communication problems clarifies that symmetrical encouragement and restriction system should be established and reasonable settlement standards should be made to resolve telecommunication regulation problems effectively.