Network Interconnection Pricing In China's Telecom Industry Research

With the increases of competitive entities in the telecommunication market in our country, different telecom operators are facing the new requirement of the interconnection between the network.. The form of interconnection includes unidirectional interconnection and bi-directional interconnection, regardless of which one kind of interconnection between the network, the key of the problem is the interconnection pricing between the telecom operators. how to price the interconnection more reasonable? Does take competition among the several telecom operators which depends on the market mechanism completely? Or does price by the government completely in order to regulate the organization behavior?It is not easy to determine the interconnection price reasonable, and to keep the relative price between the retail price and the interconnection price reasonable is more difficult. Thereby, in order to gain the best price, we are required not only to know the market structure of telecommunication industry, the business competition situation between the operators, and the custom's requirement, but also to find out the keystone of the telecom interconnection and the form of interconnection. In this way, we can seek the reasonable pricing rule between the operators and the government to improve the efficiency of telecommunication industry.The purpose of this thesis is to find out the way to solve the problem of unreasonable interconnection pricing effectively. The thesis discusses the problem of interconnection pricing in telecommunication industry, we hope to suggest a reasonable and scientific interconnection pricing project which can inspirit both sides of interconnection and develop the effective competition in telecommunication industry. The thesis analyzes systemically of technic characteristic, economy characteristic, market structure and market competition situation in the telecommunication industry; through the description of the actuality of the interconnection pricing in telecommunication industry and the analysis of the problem and influence of the interconnection pricing, I illuminate the conception of the mode of interconnection as well as the category of the interconnection pricing. I evaluate the main method and mode of interconnection pricing in telecommunication industry. On the basis of takeing the reference from western country modes, I establish the mode ofinterconnection pricing and public welfare enhancement, It means according to this mode, we make the conclusion that gaining the interconnection pricing which causes the maximal society welfare depends neither market forces nor government wholly, but giving the enough attention of benefits between "market "and "society", and to find out the proper point of intersection for pricing in reason. by the principle and the aim of interconnection pricing in telecommunication industry, we give the advice to regulate the telecom operators market behaviors and interconnection pricing methods.