Study On The Price Regulation Of China Telecommunication Industry

In the reform and opening historic course of China, the telecommunication industry has experienced the earth-shaking change. Several significant reforms cause the Chinese telecommunication industry as soon as to leap into in the the most rapid-developping industry of national economy from "the bottleneck" industry. One essential target of telecommunication reform is for the social efficiency maximization. The economy principle tells us: the low price brings the demand's increase, and may maximize the telecommunication welfare. In fact, the telecommunication price always has been the contradictory focal point between the telecommunication enterprise and the user for many years, is the market competition center, also is the difficulty of government regulation of telecommunication.About the telecommunication price regulation, the domestic and foreign experts had the massive discussion, and these researches are mature day by day.The developed country all adopt the certain price regulation model in the price regulation practice, but China has not formed the standard price method. Due to the lacks for the science the price regulation model, there are the big unavoidable subjectivity and the unaccuracy when the government formulates or the adjust telecommunication service price. Second, China will gradually relax the entering-regulation after joining WTO, and many domestic and foreign enterprises will enter this service domain one after another. Because the telecommunication service price and the investment return to scale level direct correlation, the investor requests the government to have the suitable transparency inevitably to the telecommunication service price regulation, being clear about the price regulation rule and the fixed price, method, then they can appraise the investment return and investment risk, finally make the investment decision-making. Constructing or choosing telecommunication price regulation model for our country is imperative already.The goal of this article is to study the Chinese telecommunication price the government regulation, is for the purpose of providing the beneficial model for the telecommunication enterprise' pricing and government regulation through the research on telecommunication price regulation theory and method. This article introduced simply the development condition of China telecommunication market, analyzed the telecommunication market structure and the competition situation. After briefly introduced regulation elementary theory, this article analyse telecommunication priceformation from the monopoly. Because monopoly may harm social welfare, we must bring the regulation to restrain the the market pricing behavior of monopoly enterprise. The telecommunication price regulation divides into the price mechanism regulation and the price level regulation, and pricing model is the content of price mechanism regulation. Afterwards the article has studied two kinds of price level regulation model: the investment return regulation model and the price cap regulation model. Finally, this article carries on the demonstration application using price cap regulation model and taking rambling fee of ChinaMobile to the object, and brings forward some policys and suggestions about the price regulation.