Strategy Subdivisionregulations Of Moderate Competition In The Telecommunications

Since 1998, China began the reform of the telecommunications industry, which has the natural monopoly nature. The telecommunications industry carried out a long way of a number of restructuring, trying to form an effective competition. From a single China Telecom to seting up of China Unicom, and then to large-scale corporate restructuring of telecommunications, to the latest is divided into three patterns, all so that consumers feel the benefits of market competition. China's telecommunications industry was also more than 3 times the speed of the rapid development of the national economy in ten years ago, and had become one of the most important growth in country's economy. However, the development of the telecommunications industry is still the most popular topic, with the 3G licenses issuing, the development of the telecommunications industry get more importance ,whice can help China to deal with the economic crisis and promote economic development. In this paper, by researching of regulatory economics, natural monopolies, market competition structure and the relevance of game theory theory, I analyzed the China's telecommunications regulatory system and put forward policy recommendations.By comparing Britain and the United States and China's telecom industry experience, I get a conclusion: The United States,which introduced more competition, get a result of overfishing and unsustainable and even lead to substantial enterprises bankruptcy, The United Kingdom Regulatory Reform which ran a style step-by-step way of introducting competitions, made a great success, and promote the industry development. Through analysis a new develop-pment trend of the telecommunications market,market structuretheory of China's telecommunications market business segments was intro duced. Analysis of existing telecommunications competition, to prev ent the communication market lose-lose situation of vicious price competition, government price controls will inevitably needed. But price control will not be able to achieve full competition, can not get Paretooptimal social welfare. Finally by introduction of the concept of quasi-public goods, I analysis a new control mode, that is,the network provided by the Government as a quasipublic goods, and the telecommunications services provided by fully competitive market.