The Research Of Administrative Monopoly And Government Regulation Based On The Telecommunications Industry Of China

Administrative monopoly is a form of monopoly that wide spreads in thestate-owned economic sector of China, and it is a kind of behavior different fromeconomic monopoly for the reason that it acts executive force on economic activity, thusit will leads to many negative results, such as high cost, low efficiency and lowcompetitiveness. China’s telecommunications industry is dominant in the nationaleconomy, and its level of development plays a crucial role in the healthy and stabledevelopment of our economy. The current status of the development of China’stelecommunications industry is as follows: a large economic scale, relatively completeuser number and the relatively complete types of business and this is more favorable tothe development of the telecommunications industry. But on the other hand, theestablishment and reform of China’s telecommunications industry has always beenunder the control of the executive power of the state, and it is a typical administrativemonopoly industry. So, the measures and suggestions which are proposed on the base ofanalyzing the specific problems exist in the administrative monopoly of thetelecommunications industry not only have significant meaning in the development oftelecommunications industry, but also provide some guidance and advices for thereform of administrative monopoly industries.Through the review of the related theories about administrative monopoly andgovernment regulation, this paper carries the concept of administrative monopoly on theelaboration and studies the issue of administrative monopoly in telecommunicationsindustry combined with the development of China’s telecommunications industry. Theresearch has shown that, China’s telecommunications industry is a relatively typicaladministrative monopoly industry, and the formation of it is result of the combination ofmany factors, such as the planned economy system, the incomplete reform, the failureof Government Regulations, the existence of rent-seeking activities, as well as the lackof legal system. It is just because of the existence of administrative monopoly intelecommunications industry, there are some negative influences in the development oftelecommunications industry, for example, the low economic efficiency, the slowdevelopment of technological progress and the severe loss of social welfare and so on. To sum up, this paper proposes some suggestions aiming at the causes of the formationof monopoly in telecommunications industry, and in an attempt to breaking themonopoly, introducing competition system, exploring the new model of developmentand promoting the system reform of telecommunications industry and the long-lastingdevelopment of economy.