Research On The Measurement Of Network Effects And Its Influence Based On Chinese Telecommunications Market

In recent years, along with the high-speed development of modern information and communications technology industry, the influence of telecommunications products on social economy and people's production and lives augments gradually. Telecommunications has become one of the pillar industry in the national economy. As a kind of typical network information product, the telecommunications product has significantly different characteristics from the traditional product. Its essential characteristic is the network effects. The network effect is the relationship between the utility of consumers by consuming products and network size, which is a demand-side economies of scale. The exist and level of network effect will affect the choice of consumers, decision behavior of the operators, the value of products, and development of the whole market by the root.Compared with developed countries, the development of telecommunications industry of our country is still placed in the quest stage both seen from the theories and fulfillment, both government regulation and competition in the industry need summary of practices and support of theories. These are just perplexing development of the telecommunications product industry with speech service for lord in China currently. The network effect on the telecommunications market abroad has conducted an in-depth analysis and empirical studies, to verify the network effect of economic theory, but so far we lack of evidence and analysis. Therefore, thorough analysis on this essential attribute of telecommunications product and its influence in telecommunications market has obvious guide meaning both in theories and practices.In this thesis, the writer set out from the basic economic characteristic-network effects of the telecommunications product, combined with the actual circumstance in the Chinese telecommunications market, and investigated the characteristic of the telecommunications product and service, and the whole market. This paper set out from the hobby and choice of the consumers, with a great deal of statistic data through the years for foundation, combined the academic analysis and experiential analysis together, analyzed the essence of the network effects; Gary Madden and other members of the measurement methods used to assess effects of China's telecommunications network market, indexωis the network effect, which expected the network characterized by the scale of the impact on consumer utility. It made use of the methods of statistics and econometrics, analyzed its influence in our countries telecommunications market. The influence includes the price of products, operation income, size of investment, market demand, competitive strategy, and so on. It inquired into the operation actuality of the telecommunications market and its improvement in the future. In the end, the paper put forward some policies suggestion concerning the telecommunications market. This provided the theories for the government according to control, and also provided the viable reference strategy towards operators.