As China joined the World Trade Organization; the system of national telecom market competition has set up. Under the competitive situation, it has three advantages:customers will have the opportunity to choose the telecom company as their willing; the long-distance telephone fee will be less than before, and the trend will be lasting in the future; the telecom can hold the market position until the rivals from overseas take their actions. As the result of the furry competition circumstance on the telecom market, how to enhance the operating efficiency of the telecom industry of provinces, how to carry out the persisting rapid development have become the important subject.Efficiency is one of the core issues of economics. Efficiency is the goal of the telecommunications industry management. Input-output efficiency tries to achieve the minimum input or output maximization, that is to say we save cost in investing or maximum revenue. The reason why the efficiency of the telecommunications industry causes more concern is that the embodiment of the competitive level, as telecommunications itself has full cut in the nature of the joint work, which requires the development of regional industry must coordinate to ensure the Network flow. This characteristic raise for strict requirements in various regions where the telecommunications industry wants to develop, only really understand the unbalanced efficiency of the input and output, its causes and results in various regions,we can correctly select the strategic model for the development of the telecommunications industry and provide evidence to develop the telecommunications industry.This paper starts from the background and practical significance, first of all it review the efficiency of the telecommunications industry, presented research situation on this issue at home and abroad. Then, selected the2004-2008five-year data of31provinces in China’s telecommunications industry as the research samples, applied Data Envelopment Analysis to evaluate its technical efficiency, pure technical efficiency and scale efficiency.we compared the obtained data from the horizontal and vertical angle, and analyzed the reasons of the relative effectiveness between the provinces, the annual,difference and proposed improving strategies, thereby reduced the cost of the telecommunications industry, to gain more benefits. |