The Analysis And The Countermeasures Study On Competition In Telecommunication Market In China

In recent years, the telecommunication market has been developed rapidly in China. Because of the stable and lasting development of the national economy, the advancing of the information-based society and the increasing of the consuming ability, the demands in the telecommunication will be stimulated to increase. And in the following years, the telecommunication market will be enlarged continuously. With the pushing forward of the system reforms in the telecommunication industry, the competitive pattern has been formed and the consuming sense of the consumers has been shaped and maturated. The tendency will be more evident that the consumption of the users is individualized and the demands of the users towards the variety and the quality of the service of the telecommunication enterprises are enhanced. The expansion of the telecommunication market and the maturation of the users' psychology provide the telecommunication enterprises with the chance of deeper development on one hand and the problems on the other. These problems during the course of competition are provoking.In the first chapter of this paper I summarize the competitive state and the existing problems in the telecommunication market and make an analysis of them. The competitive state here is analyzed in three hierarchies, that is, the hierarchies of the network resources, the basic services and the increment services. And separately the network resources pattern is developed from the state-owned resources to the fixed communicative resources which are owned by the Chinese telecommunications, China Netcom, China Railway Communication and China Unicom. The mobile communicative network resources are owned by China Mobile and China Unicom. And Chinese satellite communication enterprise owns the satellite communication resources. Because these enterprises are state-owned ones, the resources are state-owned in essence. In the market of the basic service, Chinese telecommunication, China Netcom, China Railway Communication and China Unicom control the fixed telephone market. And until the end of 2005, there were 3500 millions users. No matter from the perspectives of the market share, the scale of network and the market recognition, China Unicom and China Netcom occupy the leading position in the southern and northern markets separately. China Telecommunication has 214 million users in 21 provinces all over the country and it occupies 61%, China Netcom has 12 million users and it occupies 34.2% and China Unicom and China Railway Communication have 17 million users in total and occupy 4.8%. In the mobile telecommunication market, the...