| Since 80th last century when introducing competition in telecommunications industry, interconnection between telecom networks has become a hot topic, attracted lots of energy from industry economists, policymakers and regulatory bodys. They found that one could affect the market structure, competitive levels, and furthermore services pricing, consumers's wealth and the whole market's resource allocation efficiency if who controled interconnection, no matter it was an incumbent telecom companies, SMP or regulatory organization. However, the complex features of technologies and economics of thelecom industry, the different market structures and regulatory regimes, along with the multiple objectives of regulations make telecom interconnection a difficult problem under the restriction of maintain competitive market to pursuit maximum wealth. Telecom interconnection is not only a matter with telecommunications technologies, but also comprehensive issues envolve economics and politics.From the connection-oriented telephone networks, non-connected oriented Internet to currently evolving IP-based Next Generation Networks (NGN), the development of telecommunication technologies have triggered great change in market structures, and it also brought different interconnection problems with different technologies and different modes, and put a great pressure on the improvement of corresponded interconnection arrangement and regulatory regime.In terms of researching area on these issues, many organizations which include international organizations, regulatory bodies, advisory companies, and industry economists in particular in Europe and the US have always been doubly concerned about the interconnection issues. There has emerged abundant literatures on traditional PSTN interconnection and Internet interconnection, which included economics theoretical models and empiristic researches. The convergence trend and NGNs development today are stimulating further study on these area. Given the facts that most of the studies were related interconnection settlement arrangements, from an institutional point of view, the specific interconnection arrangements are important, but building an effective regulation system is particularly critical, especially for a country with weak institutional foundations. This is also the most common problems facing developing countries. Therefore, this paper selects an institutional angle of view, hopes to provide a reference for construct an effective interconnection regulation regime through in-depth research.Using a SSP institutional analysis framework, the paper starts from an impact analysis of technologies factor, market structure factor etc., then analyses the characteristics of interconnection markets with constraints of different communications technologies, discusses the demand of interconnection regulation in different markets, and furthermore introduces a general interconnection regulation framework. Combining economic theory and practical experience on NGN regulation of western countries, the paper proposes a concept of "effective interconnection regulation" and constructs an evaluation model. By using the model, a primary evaluation of interconnection regulation regime under context of China has been provided in the paper. Based on that, the paper presents a proposal of the related mechanisms and methods in building an effective interconnection regulation regime.There are nine chapters include in this paper, which are as following:Chapterâ… Introduction, which explains the main background of the topics, address the domestic and international research profile, the research method and the main contributions of this paper.Chapterâ…¡Introduces basic theories and analysis tools, which include the institution theories, regulation theories and SSP analysis frameworexp, and explains the reasons for choose this topic.Chapterâ…¢Discusses technical constraints of interconnection. Fistly introduces the concept of NGN and the technical features and possible evolution path, then compares the different between the interconnection models of traditional circuit-switched telecommunications networks and IP-based packet switching networks, analyses the challenges brings by the development of NGN technologes.Chapterâ…£Analyses the interconnection models of traditional telephone networks and that of Internet. Combined with economic theory, discusses the causations of regulation demand under different markets.Chapterâ…¤Based on an introduction of NGN interconnection models in international level and domestic level, analyses challenges facing by the NGN interconnection regime.Chapter VI Combining with the practice experiences of international organizations, the European and American countries, the paper studies the general interconnection regulation framework, analysis the main issues related to the evolution of NGN interconnection regulations.Chapter VII Mainly introduces NGN interconnection regulation experiences in the US and UK, and gives a comparation between the regulatory practices of the two countries.Chapter VIII Studies the effective interconnection regulation regime in the era of NGN. Proposes a general framework for effective regulation regime, and also presents mechanisms, methods of how to build an effective reglation regime.Chapter IX Conclusions and prospects.The contributions of this paper are states in following:1. By using of SSP analysis framework, the paper provides an insight of that a interconnection regulatory regime is mainly related to technology, market structure, and institutional environment. Then cconstructs a relationship framework among state factors, institutional structures and institutional performances as well as the institutional improvement or transition. And finally proposes that one can improve the regime by evaluate the effectiveness of the regime through certain method.2.Based on analysis of the different among PSTN, Internet, and NGN technologies, the paper proposes the coming challenges facing by interconnection regime in the rode of convergence and evolution to IP-based NGNs.3. Proposes a general evaluation framework for assessment the effectiveness of the interconnection regulation regime based on an analysis of impact factors, and defines a concept of regime improvement. Specifically, the general framework consists of three dimensions, namely, integrity, rationality and effectiveness. Under these three dimensions there are 10 indicators. Using the framework, the paper conducts a preliminary evaluation in context of China.4. Learning the practice experiences of the European, the paper presents recommendations which include simplifying the interconnection regulation objectives, creating a regulation demand identification mechanism, setting a periodic review system, and establishing an evaluation for interconnection regulation policies. These recommendations not only provide a methodology for Chinese interconnection regulation practices but also could be a reference for other developing countries or other regulators in the other sectors.
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