China's Telecommunications Industry To Meet The Arrival Of The New Economy

In new economy, the main resource is information, while the materials are just as assistant resources, and the usage of materials is based on the production of information. However, in the traditional economy, it is reverse. The repeatability of usage and sale, the infinitude degression of average cost and the market framework where competition and monopolization are both strengthened, are changing or will change the laws of the traditional economy. In addition, in new economy, the more frequent innovation and the incessant appearance of new products stimulate the new demands. Because of the information products' characters and the fierce competition in technology, in information economy, there is the trend that competition and monopolization are both strengthened. From this situation, the new market framework-competitive monopolization is evolved.In new economy, telecom industry is one of representative industries. With the breakup of the monopolization in telecom industry, it globalizes quickly. Telecom industry is one of the fastest advancing industries, and the position of bottleneck is changing with the advance of technology. Furthermore, the telecommunication net and the telecommunication services have different scale-economy. In the perfect competitive market, the scale of the enterprises is so small that it is difficult for them to raise money for innovation, to develop the market for the new technology and to bring the important technical innovation. However, in monopolized market, without the other competitors' threat, it is difficult to inspire the enterprises to innovate. Fortunately, the competitive monopolized market has the two kinds of markets' merits, without their shortcomings.Form the reform in China's telecom industry, we can see that the government is loosening the regulation, and actively induct competition into telecom industry. The China's entry into WTO will strengthen the competition in telecom industry. But, so far, in Chain's telecom industry, "there are several nets, but there is no (perfect)competition within them." In order to develop Chain's telecom industry and cater to the new economy, we must deeply reform the Chain's telecom industry. It is the key problem to establish the competitive monopolized market. It includes two main accepts: 1. Admittance to the telecommunication market; 2. Regulations on connect with each other.