The Analysis Of Natural Monopoly Industry Effective Competition

The author considers that the developing direction of the modern economy regulations theories is turning form the dominant station of the governmental interference to the station of deregulating and improving the governmental regulations, and introducing the power in the market. In the past 30 years, developed and developing countries have performed the market-oriented reform in the field of telecommunication by means of regulation and the effective competition. Reviewing the practice of our telecommunication, though we have biggish improvements in it, but it has not got to equilibrium between the economies of scale and competitive vigor. We still have some problems unsolved, such as delay of the regulations law, deficient independency of the regulations organization, effective competitions unredeemed, and property right can't be mufti-element and the governing structure in mutually restricted companies can't come into being, and so on. Telecommunications industry is a fundamental industry connected of national economy, which influences people's life tightly. Telecommunication regulation aims to raise the efficiency of allocating telecommunication market resources, guarantee the impartial use of telecommunication infrastructure and meet the requirements of the public for telecommunication services. The author deems that the most important task in the future telecommunication reform is enhancing the management of the regulation organization and Property relations reforming, but not the policy of the access permission, the price system or interconnect regulations and so on.The structure of this paper is as follows: natural monopoly requires regulation, but the result is often companied by a series of problems, the solutions to them are to introduce competition. However, the regulation and competition of the natural monopoly industry has its inherent characteristics, how to carry on regulation and how to compete effectively should have laws to follow. The article is divided into three parts. The first part introduces the general theory of natural monopoly theory, the regulatory theory and effective competition theory, which are the theoretical foundation of the reform of telecommunication industry; the second part introduces the three phases of competition introducing in telecommunications industry and effectiveness of telecommunications. Draw lessons from effective competition in UK and US, and concludes five valuable experiences for China; The three part analysis Chinese reform experience telecommunication industry and uses the telecommunications reform experience of UK and US for reference. Then it puts forward the policy suggestion from three aspects: Lawmaking of telecommunications industry, Regulatory reconstruction and Property relations reforming, which are most influential to realize effective competition.