How Do Privatization And Competition Impact China Telecommunications Performances?

Since AT&T split up in 1980s, telecommunication reform has been on agenda around the world, followed by the significant improvement of telecommunication services. As a result, the global telecommunication industry boomed, reaching its peak in late 1990s. As telecommunication reforms prevail, China has been radically reforming its telecommunications industry these years: deepening the privatization process and aggressively introducing competition. Meanwhile, China telecommunications performances have been progressing impressively. With the availability of more and more data from China telecommunication operations, much more attention has been paid to the relationship of the telecommunication reform and the telecommunication performances. This article examines the relationship between the reform and the performances of China telecommunication sector over the period 1975 - 2006, using a multiple linear regression and the latest data from ITU and National Bureau of Statistics of China and concludes that privatization and competition significantly improve the output, efficiency and investment while do not have significant impact on the employment.