Analyses Of The Path Of Chinese Telecommunications Deregulation

The global deregulation of telecommunications industry starting from the 1980's was essential because of the technology innovation and the change of demand structure. But for the difference of the ideology, political institution and the former telecommunications regulation, the paths and extent of the deregulation of every country were different too. So this paper intends to ask which particular character the path of the Chinese telecommunication deregulation has, and what impacts does the character have on the market structure. But because of lacking of demonstration and model building of the process and the results of the interest groups impacting on the policies making, existing Economics of Regulation could not consider the difference of the abilities and approaches of interest groups'impacting on the regulatory institutions, so could not give a perfect explanation to this question.To answer this question, basing on the Economics of Regulation this paper applies path-dependence analysis of the New Institutional Economics and Game Theory, and studies thereinafter contents:1,The extent of competition the telecommunication industry could realize in technology and practice of some countries in telecommunication deregulation. The conclusion of this paper is that telecommunication industry is not of natural monopoly, and the practice of some countries also prove that effective competition system could be build in telecommunication industry. But the paths and extent of the deregulation of every country were different.2,The analysis of the path of telecommunication deregulation of China. The conclusion of this paper is that the telecommunication deregulation of China has a particular character called"Fringe entry". It is because the deregulation is progressing in the background of the transferring from Planned Economy to Market Economy, the corresponding changing of the ideology, the department monopoly and large-scale appropriative telecommunication networks rooting in the Planned Economy and telecommunication industry becoming bottle-neck of the economic growth and high-profit industry. This character combining the network externality of telecommunication industry make the telecommunication industry can not build effective competition system and be in the situation called"lock-in": monopoly and collusion basing on department monopoly.3,Base on the character of the path of telecommunication deregulation of China, this paper builds three game theory model.4,This paper also discussed the possibility and conditions of China telecommunications industry breaking the"lock-in"situation from the aspects of technology, market and ideology.