Analysis Of Chinese Government Position In Forming A Competetive Telecommunication Market

At the moment, Chinese telecommunication industry has achieved great developments, whereas obstacles still exist. Reforms on telecommunication system have not accomplished yet; the industry is facing challenges from imbalanced and destructive competition. An effective competitive market cannot be solely realized by market competition; thereby government regulation must be introduced. However, with a growing telecommunication industry and a changing market, government regulation can never be static. Therefore, investigation into and solution to this question should be dynamic as well. Utilizing Data Envelopment Analysis (DEA) and Structure-Conduct-Performance (SCP) paradigm from industrial economicsThis article conducted qualitative and quantitative analyses on the status quo of competition within Chinese telecommunication industry. In addition, with SCP paradigm methods, it examined the impacts of telecommunication restructuring as well as symmetric and asymmetric regulation on achieving effective completion in telecommunication market. By comparing Chinese government intervention with experiences adapted from UK, USA and EU telecommunication regulation, it revealed the basic market discipline in telecommunication industry and various effects brought by difference regulations. Based upon that, the article proposed strengthening regulation on network quality and competitive behavior, enhancing asymmetric regulation, facilitating revision on Telecommunication Law, and cautiously implementing Network Neutrality rules to telecommunication regulatory agencies.