The Market Structure, Business Model And Public Police In Telecommunications Towards Network Convergence

The telecommunications industry is getting along with the trend of network convergence. With the development of information and communication technology, such as digital technology, software, TCP/IP, and broadband access, the telecommunications network, CATV network, computer network and so on which were independent and expert before are converging now.However, little is known about the future industrial organization of the telecommunications industry towards network convergence. Because the mainstream industrial economics in telecommunications rests on a well-defined set of service offered by a well-identified operator in a well-circumscribed geographical area, pay special attention on the analysis of competition and regulation.This dissertation will try to develop a theory of the industrial organization towards network convergence. Yet we will elect to concentrate our attention on three interactional questions. First, under the background of network convergence, how will the games between operators push the evolution of market structure? Second, in the circumstance of network convergence, how will the games between operators and users push the change of business model? Third, in the trend of network convergence, how will the games between government and operators push the adjustment of public policy?Chapter 2 reviews the economics literature about industrial economics in telecommunications. The review involves four contents: (1)summarize of economic characters research in telecommunications. We investigate both in natural monopoly from the view of supply and in network externality from the view of demand. (2)summarize of competitive theories in telecommunications. We investigate the equilibrium analysis of competitive restructure in telecommunications, and discuss some other competitive theory such as Demsetz competition, second source competition and yardstick competition. (3)summarize of regulatory theories in telecommunications. We investigate the advance in regulatory theory from traditional to incentive reform, and discuss applications in telecommunications. (4)comment on the research of network convergence.Chapter 3 discusses the dynamic affection against market structure by games between operators under the background of network convergence. Where the market structure will transferfrom vertical to horizontal. Based with the theroy of market foreclosure, our analysis of the vertical structure has proved that on the one hand, the bottleneck enterprise would be keener to foreclose, the more competitive the competitive enterprise; on the other hand, the bottleneck enterprise would be keener to foreclose, the less effective the bypass, and more of the loss of social welfare. But in the horizontal structure, the incumbent will not make sure that horizontal foreclosure will prevent the entrant with innovation. Furthermore, to share in the profit of the innovation, whether will the incumbent foreclosure is uncertain. When the incumbent competes with the entrant in the innovation, horizontal foreclosure will incentive the investment of the incumbent, make uncertain effect of both the entrant and the consumer.Chapter 4 discusses the affection of the business model by games between operators and users in the circumstance of network convergence, and offers the question of"two-sided"market in telecommunications. In my opinion, network convergence makes multi type network to be a universal platform, which will be cope with two sides users: buyers and sellers, so we can consider it as a"two-sided"market. According to the design of business model, this chapter discusses the economic principle of choice of the customer, gain of the value and control by the strategy.Chapter 5 discusses the affection of the public policy by games between operators and the government in the trend of network convergence. In this game we consider the government as a principal and the operator as an agent. In the trend of network convergence, new services and markets will emerge between the traditional industrial boundaries. Under the current regulatory system, these new services and markets will suffer from the multi-regulation, which will induce compact. We will discuss the question of convergence of the regulatory department by the model of"common agent". Second, since network convergence make uncertain affection against telecommunications, the affection of regulation is also uncertain. Then the competitive policy will be more important than before, but which will not displace the regulation in the end. We will interpret by the contract theory. Third, network convergence will involve some other public policy such as universal service, standardizing and the management of content and so on.At last, the dissertation discusses the special topic of Chinese network convergence based on the theoretic research. First, we introduce the status of Chinese network convergence. Since the convergence of telecommunications network and computer network is well-rounded, we emphasis on the internet. Second, we introduce the evolution of the industrial organization of Chinesetelecommunications, and analyze how to adapt with the trend of network convergence. Third, we introduce the reform of the regulation of Chinese telecommunications, and analyze how to adapt with the trend of network convergence. Forth, we prospect the future of Chinese network convergence.