Regulatory Reconstruction In Chinese Telecommunications

After twenty years rapid development, Telecommunications Industry has become one of the most important industries in China. As a result of a five-year restructuring, Chinese telecommunications has come to a situation where six major operators are competing in the basic telecommunications market in all business levels, supervised by an independent regulation. Despite of limited resources, the regulation has successively and efficiently fulfilled its duties as in price regulation, interconnection, network and information security, and so on. However, there are also many restrictions that have prevented the administration authority from further fulfilling its responsibilities: (1) While the reform in this industry has been developed more rapidly in China than in most other countries, legislation has been fallen behind the industry reform (2) The reform of the Administration Supervision System is still in the process, which causes the system to be lack of control and efficiency. (3) The competition system of the telecommunications market is still lack of fairness and efficiency. (4) New technologies and services are booming. Therefore, how to reconstruction the regulatory mechanism in Chinese telecommunications has become the new research task.In the paper, reforming history of Chinese telecommunications regulation is described firstly. The current regulatory problems and the reasons are listed from different perspectives.Moreover, the article analyzes the applicability in the short term of the Chinese present regulation mechanism. Then the author recommends regulatory reconstruction in detail for China, considering new technologies development.Finally, the administration of Universal Service Fund is given. And the author believes that regulatory authority should design more gaming framework using incentives theory and game theory in stead of giving resolution. Regulatory authority also should endow the competing bodies with more power to resolve price competition and network interconnection settlements and so on. In order to regulating new technologies and services, the concept of dynamic regulation should be strengthened.