A Study On The Effective Competition In Telecommunication Industry

China has started the reform of replacing monopoly with competition in the regulatory system in Telecommunication industry from l990s, for the enhancement of efficiency and social welfare. By way of"two models, three procedures", we have constructed the present competition pattern of"Five plus One"。However, we still haven't achieved the effective competition for there are excessive competitions in some parts while scant in others.According to research, the present structure of the market is more influenced by the latter two breaking up reform. Reconsidering the present market structure and its regulation, we conclude that the world's breaking up reform is not successful to certain extend.To advance the effective competition in telecommunication industry and suit the rising convergence of three networks in the world, we must reform the oligopoly market that has two shortcomings: (1) lack of competitors in basic business, (2) oligopoly in different business.The constructive method is to enlarge market permission, integrate network resource, confer more fixed and mobile licenses, allow full business and cross-sector operation, set up an efficient market with full business and free oligopoly competition. Meanwhile, the competition should be controlled by an independent regulatory agency, which is comprehensive and integrated thus includes all communication sector, to suit the new competition model which has lots of networks as well as operators. The creation in this paper is mainly that the research is carried out on the regulatory system reform of telecommunication industry in attempt to promote its effective competition. Realizing the inefficiency of the breaking up reform, we conclude that the effective competitive market in telecommunication industry should have full business and the restrictions between oligarchs. What's more, basing on the research of three ways of leading competition into local telephone market, we hold that permanent effective competition can only be maintained by the competition of facilities, which can be guided by the disposing of networks. Furthermore, the study of the significant influence to telecommunication industry brought by the convergenceof three networks points out that the regulation of this industry trends to be comprehensive, unified, cross-sector, rich of networks and operators.