The Research On Optimizing The Telecommunication Industrial Organization In China

Today, the reform of telecom industry is the focus of the people's attention. This paper mainly analyzes the present situation of Chinese telecom industry from the angle of industrial organization by theoretical and authentic proof analysis methods. The purpose of our study is to look for the countermeasures with which we can make our national telecom industrial organization optimized. In the research, this paper applies the SCP analysis frame of the theory of industrial organization to study the market structure, the market conduct and the market performance of our national telecom industry. After that, we reach such a conclusion: the market structure of our national telecom industry has developed from the past complete monopoly to the present oligarchic monopoly. And the market conducts of telecom enterprises have changed greatly. The pricing conduct has developed from the past monopolistic price to the present fierce pricing competition. But, because the monopolistic market structure hasn't changed fundamentally, a lot of illegitimate competing conducts often take place from time to time. So the unreasonable market structure and the not-ameliorating market conduct lead to the undesirable market performance inevitably. All these talked about above reflect such a fact that the reform of Chinese telecom industry hasn't been conducted thoroughly, the state of monopoly hasn't been broken and the competition is still insufficient and inadequate. According to the developing trend of the world telecom industries and taking account of our national conditions, I believe mat our national telecom reform should also develop along the route from dividing government and enterprises to breaking monopoly, then from breaking monopoly to introducing competition. Because the main problems of Chinese telecom industry is that the whole economic efficiency is still low and the effective market competition is still inadequate, the target of optimizing our national telecom industrial organization is not only to break the monopoly, but also how to realize the effective competition. Through studying the theory of effective competition and the standards of measuring the effective competition, this paper puts forward the target mode of realizing the effective competition in our national telecom industry from three aspects of the market structure,the market conduct and the market performance. To realize the target of optimizing our national telecom industrial organization and achieve the goal of effective competition, we finally put forward five countermeasures in this paper: (1) Realizing the telecom system's innovation; (2) Separating the natural monopoly operation and the non-natural monopoly operation; (3) Reforming the government's regulatory policy; (4) Promoting the interconnection between different networks; (5) Ameliorating the enterprises' competing conducts.