The Next Generation Network Entry Regulation In China

The development of the next generation network is not only an irreversible historical trend, but also the motivation of Chinese telecommunication industry. Governmental control policy is critical, to a great extent, to determine the course of our society. In the near twenty years, china's telecommunication has made great process both in technology and economy. The china's policy about "use IT to propel industrialization", in order to grow the country's economic strength and ability to compete internationally and to make a leap-forward development, has a profound effect on china's telecommunication industry supported by government in the past few years, the voice service is quite popular. The basic demand of voice service can be met satisfyingly. The internet services, growing rapidly in recent years, promote the development of web resources and data services, and make data and multimedia key development tasks in the next stage of development. In the long run, telecommunication network's upgrade to the data service is an inexorable trend.The original principle for network design is mostly one service to one network. With the advent of digital technology, it is possible for all communication networks to employ one or zero serial based on internet protocol. We can develop kinds of services without changing the network infrastructure. Now existed networks will be integrated into one IP based network under evolving. The next generation network can be seen with base network and services lays to use. To meet ubiquitous services, there are many access ways such as Wi-Fi mesh,WiMAX, Femocell, VDSL2, HSPA, LTE to link into next generation core network. So the situation of monopoly of local loop line will be destroyed. Much more services to choose for users will bring more competition for the market. In 2008, reconstructed three new operators, China Mobile, China Telecom, and China Union, all have mobile and fixed line licenses and 3G licenses, which bring convergence of industry and network construction in large scale. It is obvious that next generation core network is with obviously natural monopoly feature. Before solving the regulation problem, I review the literature. Then we do some work about relations between number of players and the social welfare in theory. We apply it to the NGN market entry regulation. We also suggestion some measures for easily market entry under regulation. We suggestion identical property according to customers number to solve the exterior effect problom in core network and some infrastructure acess network, two stage ceiling access pay and fund for innovation risk for new service provider which encourage innovation. And it also compensates the operator's investment. In the end, we analyze the situation for Chinese communication chance and mechanism, and then show some limitation of our work and further research suggestions.