The Reform Of China Telecommunication Industry

Developed countries are carrying out reformation policy of deregulation and competition. But deregulation on one hand brings about vicious competition of telecommunication service market, some telecommunication companies get into unprecedented trouble in some countries. On the other, local fixed telephone industry still monopolizes the telecommunication market. Therefore it is of great necessity and importance for telecommunication researchers to examine and judge telecommunication reformation and regulation so as to remake clear the development of telecommunication regulation.Presently China's telecommunication industry has been developing fairly well; Meanwhile China's telecommunication regulation lags behind in terms of inadequate regulation and improper regulation. Consequently, it is an urgent task for us to regulate telecommunication market, encourage as well as restrict the actions of telecommunication operators, prevent and stop the present vicious price competition in order to finally create a better environment for the lasting and rapid development of telecommunication.This essay is divided into four parts as follows:After making comments on monopoly, the fundamental thesis is that we cannot make a simple conclusion that telecommunication industry is or is not natural monopoly. Instead, we should make separate judgment by subadditivity for different periods and different business structure, which can become the criteria on a strict or loose regulation. With the development of information and digital technology as well as structural change of telecommunication requirement, most natural monopoly nature of telecommunication industry is disappearing. Therefore a relaxed control wave for telecommunication industry come into existence all over the world, we realize that in telecommunication.The second part, the dissertation turns into studying developing process of regulatory policies after deregulation in telecommunication industry; we focus on policies of asymmetric regulation, access pricing, interconnection regulation and universal service regulation.The third part, we first focuses on the experience of introducing competition and realizing effective competition in UK and US, and concludes several valuable experiences for China. Then we explain the four phases of competition introducing in telecommunications industry, then we quantitatively discusses the market structure, market behavior and market performance of China telecommunications.The fourth part, that is chapter eight, discusses the starting point of China's telecommunication industry regulation and expounds that the telecommunication service market is the competitiveness monopoly market and the competition on telecommunication service market is the efficiency competition. And it defines the guiding thought and basic principle of China's telecommunication industry regulation. The author finally puts forward proposals and viewpoints in terms of key theoretical problems and strategy concerning telecommunication regulation.