Local Telecommunications Regulation And Competition

1. Main purpose of the DissertationLocal telecommunication is the base of telecommunication industry and the key to workable competition. Local telecommunication network is the most difficult section to break through due to its features of heavy sunk cost and heavy monopoly, thus it's always regarded as "the last fortress" in telecommunication industry. Therefore the question of how to capture the fortress and promote telecommunication competition is an important subject for regulatory economics and telecommunication economics. Consequently, this dissertation focuses on studying the relationship between regulation and competition of three ways entering into local telecommunication, especially combining with the new tendency of convergence and competition among .corns, analyzing the inherent relations between regulation and competition of local telecommunication, seeking a path for workable competition of local telecommunication, and pointing out reform directions of local telecommunication, thus pave the way for adjusting policies of telecommunication regulation. Main points are as follows:(D Trying to seek and find out the path of workable competition of local telecommunication, which is also the main purpose of this dissertation. Among three ways of entering into local telecommunication as Resale, UNEs and Facility-Based Entry, the former two can promote and form a certain degree of competition of local telecommunication, but this kind of competition depends on the network of JLECs and can not break the state of ILECs monopolizing local telecommunication networks, thus limit entrants' abilities of innovation. The asymmetric regulation policy that regulatory agencies implement regulations for incumbents but not for entrants, often makes entrants deeply depend on the ILECs' networks. Therefore, it is difficult to depend on these two ways to achieve workable competition of local telecommunication. Only Facility-based competition can threat incumbents' monopoly power. To achieve the competition should resolve two problems: the first is under the situation of Resale and UNEs (mainly about local loop unbundling), how to rationally establish regulatory policies to encourage ILECs to invest in networks facilities and to promote entrants to build network facilities in part or in whole after its operating ability improved, thus compete with ILECs in local telecommunication transmission and local telecommunication business.The second is in Facility-based competition, how to regulate rationally especially in terms of interconnection and its pricing, for the purpose of preventing incumbents to abuse market power and promoting fair competition. Meanwhile, regulatory policies should be adjusted in due time for promoting convergence and competition among .corns. After resolving these two problems, local network facilities market will be formed, and subsequently formed local telecommunication wholesale market andUNEs markets, as a result, the competing situation based on facilities and services of local telecommunication is to be formed.(2)Studying changes of competing condition of local telecommunication and directions of regulatory reform under the situation of convergence among .corns, which represents direction of telecommunication industry. This tendency raises requests to re-understand basic status of local telecommunication in telecommunication industry and conditions of local telecommunication for competition. Thus should start with changes of before and after telecommunication networks, CATV network and Internet convergence, and substitutive competition effect of mobile telecommunication for local fixed telecommunication, to understand competing environment of local telecommunication. Based on these analyses, we should from the angle of promoting local telecommunication competition to study the issue of regulation integration and discuss the directions of regulation reform.(3)Practically understand the achievements and problems of regulatory policies to local telecommunication, find out the joint of theory and practice.