On The Application Of Government Cost Supervision In Telecom Enterprises

As one of the means by which our government regulates prices,rationalizes resource allocation and stabilizes the market,the cost supervision system is widely used in public utilities,monopoly industries or public welfare products or services.In the early days,telecommunications was included in the government cost supervision catalogue as member of the national fatal industry.However,with the advancement of China's science and technology as well as the development of market economy,the relations of telecommunications companies has gradually weakened.In 2014,Telecom tariffs bagan to be adjusted by market.But because of the nature of natural monopoly of telecommunications and the provision of universal services,as the regulator of the market and the principal of state-owned enterprises,the government still needs to supervise the cost of telecommunications enterprises to solve the problem of market failure and safeguard its own interests.In this context,this paper takes case analysis as the research method,chooses China Unicom as the research object,and analyses its cost supervision.Firstly,this paper reviews the relevant theories of cost supervision,and makes an analysis of the object of cost supervision and the nature of the telecommunications industry.It makes clear the necessity of the government to implement cost supervision for telecommunications enterprises.Secondly,by analyzing the overall situation of cost supervision and its application in China Unicom at the present stage,it is found that there are still some problems in China Unicom's cost supervision,such as unclear supervision departments,opaque supervision methods,imperfect policies and regulations,unprofessional supervisors and insufficient public participation.Then,with the reference to the experience of cost supervision of telecommunications enterprises in the United States,the United Kingdom and Japan,this paper improves China Unicom's cost supervision institution,policy and regulation construction,supervision personnel and supervision process.What's more,the key points and difficulties of China Unicom's cost supervision work are illustrated with public data.Finally,the establishment of laws and regulations,independent institutions and supporting measures for introducing external cooperation were put forward.From this point of view,the main conclusions drawn in this paper are as follows: Firstly,from the point of view of the necessity of cost supervision of telecommunication enterprises,and based on market failure theory,price regulation theory of natural monopoly industry,cost price theory and principal-agent theory,the government,as the regulator of the market and the shareholder of telecommunication enterprises,has dual roles of supervisor and principal,whether in protecting the rights and interests of consumers.From the angle of optimizing resource allocation efficiency or reducing information asymmetry and safeguarding their own interests,it is necessary for telecom enterprises to conduct cost supervision.Secondly,in view of the problems arising in the cost supervision of telecommunication enterprises in China at this stage,we should solve them from the perspectives of law and supervision departments,such as promulgating special regulations on cost supervision of telecommunication enterprises to make the supervision work legally,introducing external experts to improve the professionalism and transparency of the supervision and examination work,etc.Thirdly,when carrying out cost supervision for telecommunication enterprises,we should pay attention to combining the characteristics of enterprises,fully understand the enterprises,formulate different cost supervision strategies for different nature of cost projects,and seize the key points to break down one by one.To sum up,we should optimize the process,standards and methods of cost supervision according to the changing trend of the industry and the characteristics of the telecommunications enterprises,further improve the construction of cost supervision system in the telecommunications industry,and provide more scientific and reasonable reference for the cost supervision system in China.