The Validity Of China's Local Telecom Control Research

Since the eighties of last century, with the develop of technology and the increase of market demand, deregulation and open competition occurred in the nineties. However, due to a highly natural monopoly characteristics, the local telecommunication ,specially the local telecommunication network is the most difficult area to open in the telecommunications industry. If this kind of monopoly does not break, the effective competition's pattern cannot form finally. From our country's situation, continuing deregulation of the telecommunications industry restructuring and reform do promote competition in telecommunications, but monopoly of local telecommunications is still very prominent. After telecommunication reorganization, in the local telecommunication market's competition is only partial and the relative competitiveness of the local telecommunications competition in the telecommunications industry lags behind.The research of local telecommunications competition regulation and guidance for the reform and restructuring of China's telecommunications has important practical significance.But because of high sunk costs and high degree of natural monopoly characteristics, the local Telecom become the most difficult link to break in the local telecommunications network. It is seen as the telecommunications monopoly, "the last bastion of a piece." Is the current policy of control is effective? How to break this bastion and how to accelerate the pace of competition in telecommunications is an important issue for government control and industrial economics needs to study. This article studies the effectiveness of the local telecommunications control through the positive analysis try to Search the path of the effective competition in local telecommunications and clear the direction of the local telecommunications control reform. At last we will provide the policy adjustments for control of telecommunications.The quantitative evaluation local telecommunication control management structure, in domestic is a groundbreaking work. This article are based on the massive reference overseas related research literature and the expert's consultation . Through the questionnaire investigation and study,it has constructed the local telecommunication control management structure (control pledges and controls drive) the evaluating indicator system and expanded advances the policy enlightenment about our country's local telecommunication effective control.In existing research literature, appraisal mechanism of local telecommunication industry's control management structure had not yet established.And in the developing countries,the key to local telecommunication industry control reform is the construction of controls structure.The control pledged is divided into three dimension : control's legal base , regulatory agency's independence and control's accountability. They have represented guarantee mechanism which the electric power industry control system provides for the contract main body,and the investigation and study questionnaire also defers to these three dimensions to launch. Because local telecommunication control has an immediate influence on industry's achievements, it may also be divided into three dimensions : market mechanism drive, enterprise behavior drive and property rights structure drive.According to the quantificational research on the validity of China's local telecom control,the conclusion are following :1,Our country is still in the initial period of local telecom control's reform,the contorls, which need to be improved , are not very effective. According to statistical analysis, releasing《Telecommunications Law》and enhancing management structure's independence can improve the control pledges ability.2,Our country's local telecommunication domain has not carried on the pipeline separation reform which reduces the local telecommunication control excitability greatly and reduces the control validity.3,Our country doesn't have local telecommunication antimonopoly law and organization. This will reduce the control's excitability and hinder control's thorough reform .4,The social control are very few in the evaluating indicator,and this is the initial stage performance of our country's local telecommunication control reform , so we should pay more attention on the social control later.5,Our country's local telecommunication domain does not have the private capital to enter , and the effective competition cannot develop, thus it reduced the validity of control measure .The full text is divided into 4 chapters to carry on the elaboration, the concrete structure is following :The 1st chapter. Introduction .At first , this article's background of research is elaborated, namely along with the technical progress and system's vicissitude, the local telecommunication's natural monopolization has become weaker,and local telecom has the possibility to lead in competition .But because of high sunk costs and high degree of natural monopoly characteristics, the local telecom become the most difficult link to break in the local telecommunications network. Then the important meaning of the research about telecom control is elaborated local telecommunication control question from the theory and the reality . Finally, the research frame of this article is proposed .The 2nd chapter. Correlation theories of local telecommunication and natural monopolistic. Mainly I have carried on the summary and the induction to the local telecommunication's concept , and it has been clear about the local telecommunication concept frame and its status in the telecommunications industry. I have analyzed and proven the theory of natural monopoly transformation's development as well as the unique economical characteristic of natural monopoly industry: Economies of scale and scope economic effect, connection economic effect, network, massive sunk cost, high market concentration degree as well as the implementation of universal service. I explain the local telecommunication network cost's poor additive characteristic vanish gradually from four aspects and the natural monopoly attribute also unceasingly attenuated. Finally I think the position should divides into the local telecommunication service the competitive service and the monopoly competitive service two partswhich carry on the control separately.The 3rd chapter. Empirical analysis of American local lecommunication control's competition. I analyzed the development process of the American local telecommunication control,and elaborated that the American local telecommunication control policy's goal is to promote the enterprise efficiency enhancement, the optimize allocation of resources and consumer protection's benefit, the promotion enterprise long-term stability development. I has studied the American local telecommunication cost income analysis control pattern with emphasis, through the analysis cost income anatomic model's theory basis and the mathematical foundation, I has further studied the cost - income analysis pattern in the local telecommunication control function .The 4th chapter Quantitative evaluation of the validity of China's local telecom controlOn the basis of literature summary and expert interview , I designed the control to pledge and to control the drive of the performance target, according to investigation and study statistical result determination local telecommunication industry control management structure and control effective degree evaluating indicator system,whose performance target includes : The control right's concentricity, the budget independence, the penalty contrary enterprise behavior's right, the control fixed price right, the control conflict appeal mechanism, the local telecommunication price hearing system, releases " Telecommunications Law", the control frame legal base; The control drove that displays the target is finally: The local number carries, the longitudinal pipeline separation, the local telecommunication network property from the telecommunication operation enterprise peeling, the interconnection intercommunication, local telecommunication market entry with the withdrawal barrier, not to be asymmetrical regulates, the local network operator to provide the 3G license plate, the price ceiling control method, the grade of service control, the telecommunication network expansion responsibility, the local telecommunication market antimonopoly law law standard, the local telecommunication market counter-monopoly organization, the local telecommunication operation permission private capital to enter.At last, I made the quantitative evaluation to our country's local telecommunication industry control validity,and the conclusion is control the pledge ability and control excitability have restricted our country's local telecommunication control validity, and through our country local telecommunication control valid quantitative investigation and to the American local telephone competition policy's analysis, I proposed that promotes policy suggestion which our country local telecommunication validity has enhanced.