| With the further transformation of telecommunication industry infrastructure in China, telecommunication in China has entered the competitive market. After experienced the tremendous innovation, China Telecom is under transformation and re- organization. As an entity of the market, China Telecom must be transferred to be market-oriented and improve the scale. The enterprises under China Telecom face to two challenges, 1) the preferential policies for China Telecom have been cancelled, 2) the basic telecom tariff is controlled by the government. Facing to cornpetitive market environment, the telecom should fully focus on how to deploy the competition, pursue the profit, and maximize capital interest and keep sustained development. In the recent years, rural telephone business has been losing money. How to resolve the rural telephone loss and huge investment is a question concerning the increase of profit and future development of China Telecom. It is necessary to analyse the cost of country telephone and stipulate for related rural communications policy for development and management. Based on the basic data of rural telecommunications of Sichuan province, this paper is focused on the classifying and analyzing rural telecommunications cost .with the emphasis on the economic results of the construction of the provincial rural telephone business from 1994 to 1998, this quantifying the impact of these cost of the economic results, Aimed at providing useful reference to the construction and management of rural telecommunication business, this paper selects Pi Xian,Ren Shou and Nanbu counties as cases to be analyzed in light of the whole province average cost. There are four chapters in the paper, Chapter 1 is the profile of telecommunications business cost. It describes the related concepts of cost in economics. Based on these concepts, the cost construction and characteristics of the telecommunications business are described in detail, especially for telecommunications industrial characteristics. Also, the factors of the cost impact on rural telephone business are covered. Chapter 2 is about the cost evaluation and analysis for Sichuan rural telephone business. It briefly covers the estimate methodology of financial cost and the cost comparison and the evaluation of investment-return in rural telephone business in Sichuan. The depreciation, salary, maintenance fee, business operation management fee are major portion of the entire cost after analyzing the cost component in rural telephone business, The entire cost functions are formed for the set-up of future cost evaluation after analyzing and calculating the trends of the cost. After analyzing the total quantities of the average cost in RMB 100 Yuan, it proves that the scale effect is the needs. With the progress of the scale, the average cost of rural telephone business shows declining. Therefore, it implies that the development of rural telephone business needs more customers, so as to gain the economies of scale to control cost, increase the profit. As a result of analyzing the average cost of a customer, the unit quantity cost, to achieve the better benefit need more customers, increase of the growth rate of real installation in a switch, the decrease of the average cost and increase of the telephone quantities. In the mean tirr~, according to the analysis of the growth rate, the descending of the total cost growth rate is faster than the revenue g... |
