The Research On China Telecom Industry Based On R-SCP

As a government-regulated industry,the market structure of China’s telecom industry has been decided by government’s regulatory policy to a large extent.Since 1994,the government has implemented a number of reform measures to the telecom industry,including the direct adjustment of the market structure of the telecommunications industry and the regulation of the behavior of telecom operators,making the telecom industry’s market structure changing from the initial complete monopoly development to the three oligarchs monopoly.However,what kind of influences will the government’s policy bring about or what strategies should be taken for the government to keep the telecom’s sustainable and healthy development remains a question.To resolve this,most researches about it only from just only one angle,such as the influence of government’s regulations policies on telecom’s market performance,or the impact of telecom’s market structure on market performance.And few comprehensive investigations have been taken to the telecom industry organization,which is based on qualitative analysis of them and requires empirical research.Therefore,this paper integrates the traditional industrial organization theory with the government regulation,constructs the R-SCP theoretical analysis framework which is influenced by the government regulation and has the competitive monopoly industry.Under the guidance of this kind of analysis framework,we have done a complete analysis on China’s telecom industry’ s government regulation,market structure,corporation behavior and market performance.Based on market structure,we have explored enterprise behavior and uses the data envelopment method(DEA)to analyze the market performance of China’s telecom industry,establishes the measurement model of market performance,government regulation and market structure to support the R-SCP paradigm,and attempts to show that government regulation has had a positive impact on the optimization of the telecommunications market structure and the improvement of market performance.Based on the overall analysis,it is concluded that the government regulation has positive effect on the optimization of the market structure and market performance of the telecom,and the market behavior of the telecom operators has a moderating effect on the formation of market performance.Also we concluded that China’s telecommunications industry is In the period of transformation.It is proposed that the government should promulgate the "Telecommunication Law" and the make appropriate liberalization of the basic telecommunications market as soon as possible so that the telecom market can continue to develop healthily.At the same time,in order to successfully complete the transformation of telecom enterprises,enterprises should increase R & D investment,and the Government should relax the constraints about the use of market-oriented means to withdraw from investment projects or the sale of project assets.