The Research On The Regulation Of Chinese Telecom Industry

Due to the strategic significance and the attribute of natural monopoly, telecom industry has been strictly regulated all over the world since it comes. With the development of the telecom technology, however, the connection between telecom industry and public life gradually becomes closer and closer. At the same time, its attribute of natural monopoly is less and less obvious. Hence, in the1980s, there was a trend of deregulation of telecom sweeping the globe. Nowadays, in the background of further deregulation and the integration of telecom network, internet and Radio&Television Network, China has implemented many new policies about the regulation of the telecom industry. In2011, China introduced the policy about restructuring the national telecom industry, in2013, the Mobile Virtual Network Operator was brought in the telecom industry, and in May2014, Chinese government decided to make full use of the market to adjust the telecom price. All of these above prove that the idea of deregulation of telecom has already occupied a leading position.The reform of telecom industrial regulation came with the reform and open-up of China in1978and it experienced three restructuring. The latest one was the "six to three" reform implemented in2008. To be specific, firstly, the basic business of original China Telecom, China Unicom CDMA Network and China Satcom combined to be the new China Telecom. Secondly, the China Unicom without CDMA combined with China Netcom to form the new China Unicom. At last, the original China Mobile and China Railway Telecom combined to be the new China Mobile. After the restructuring, it shaped the telecom market to a three-way race. It seems that there are three competitive telecom companies in the market without serious monopoly, however, in fact Chinese telecom market still lacks of enough competition. In addition, there still exists many problems which need to be solved quickly and efficiently. For example, the telecom market requires proper laws and institutions which can regulate the telecom industry effectively.Based on the developing orientation and the existing problems in the telecom market, this paper firstly introduced the important theory about telecom industry regulation. Besides, according to the development of telecom technology and the change of telecom market, this paper comes up with the idea that natural monopoly of telecom industry becomes weaker so it is necessary to deregulate it. Additionally, this paper also uses the method of comparative analysis to conclude the process of the telecom regulation in the United States, United Kingdom and Japan, making summary of the characters of these three countries and the inspirations to China.last but not least, taking advantage of the existing research of economists and combining with the Chinese national conditions as well as the experience of domestic and overseas regulation, I make some suggestions about the further regulation of telecom industry in China.