On Effective Competition Of China Telecommunications Industry

Telecommunications industry is a fundamental industry connected with development of national economy, which influences people's life tightly. The thesis statistically analyzes the market structure, market behavior, and market performance of China telecommunications industry based on the theory of effective competition in economics of industrial organization. At the same time, it uses the telecommunications reform experience of UK and US for reference. Then it puts forward the policy suggestion from three aspects: telecommunications pricing, interconnect problem and government regulation which are most influential to realize effective competition.There are four chapters in this thesis. The first chapter introduces the general theory of effective competition. It first introduces Marshall Dilemma and the theory of effective competition and its three characters, then it explains the disappearance of telecommunications natural monopolization. The second chapter describes the competition status of China telecommunications industry. At first, it explains the four phases of competition introducing in telecommunications industry, then it quantitatively discusses the market structure, market behavior and market performance of China telecommunications. It uses Herfindahl Index to analyze the market convergence and structure of immobile call market, mobile call market and other markets. In the analysis of market behavior, it emphasizes on two aspects, telecommunications pricing and interconnect problem, which are two main obstructive factors in realizing effective competition. Market performance analysis includes economic performance, technical performance and resource collaborating performance. The third chapter focuses on the experience of introducing competition and realizing effective competition in UK and US, and concludes several valuable experiences for China. The fourth chapter puts forward the way and policy suggestion of effective competition realizing in China telecommunications industry, that is establishing healthy pricing system, promoting the realizing of interconnect and revising the government regulation.