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The Research Of Government Regulation In "Tri-networks Integration" Of China

Posted on:2013-07-09Degree:DoctorType:Dissertation
Country:ChinaCandidate:H P WangFull Text:PDF
GTID:1226330452463457Subject:Political economy
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The industry integration is an important feature of the new economic era, theindependent operation mode of different scattered industries is no longer suitable for thedevelopment of the new economy, and cooperation, alliances as well as the mergers andacquisitions has gradually become the heats of industrial and economic development.Since the late20th century, the network industrial integration has become the trend for thedevelopment of the world’s media industry, and all the countries are experiencing changeson a network industry regulation. The rapid development of IT information technology,communications and light technology etc. make operation and management oftelecommunications networks, cable television, Internet show the integration oftechnology, business, and all other aspects. The universal access is not limited to the fieldof the telecommunications, and it should be extended to the fields of Internet and cable TV,namely the universal access of the “tri-networks integration”. As the most importantprerequisite to achieve the "tri-networks integration", the universal access of it has beenaroused more and more concern of academia, industry and government. The integration ofthe domestic network industry has only started in recent years, due to the special role ofthe network-based industries in social and political life of China, and the governmenttakes the implementation of strict access control and behavior control of the networkindustry. However, with the further promotion of the opening up to the outside world andgradual integration of network industries, the network industry and regulatory policies ofthe government have shown some of the gaps and shortcomings. For example, theambiguous definition of the network-based industries and the over strict control and so on.Meanwhile, there’s been the research on the regulation of network industries since thehistory, but there’s few research and analysis considering to integrated factors of theindustry. It can be said that the government regulation research on this field is in relativeshortage.The integration of the media industry is the focus of the attention of global media and Internet sector. Under the industrial context of the integration of the global informationindustry, Chinese traditional and new media have accelerated the integration in thesections of content, channels and terminals. In the production areas of content and services,the old and new media are in mutual complement with network industries, and it promotesa new mode of production and the continuous emergence of the production patterns that isoverwhelmed. The integration of the media production explored based on the full mediaproduction, and its value is not only spread and reform as a new mode of productionchanges. It even has brought the development opportunities for increasingly exhaustedtraditional media and also injected new vitality for the implementation of the country’s"three networks integration”.The access pricing research on the interconnection and interoperability of thenetwork-based industries has been the focus areas of network industries, and it is even oneof the widely discussed important issues in theoretical and practical circles. Since the1980s, the developed countries have relaxed the price regulation in the network industries,especially for the network-based industries to break the monopoly and introducecompetition with implementation of regulatory reform. Due to the differences of thebackground of national history, culture, legal system of the countries around the world andso on, the starting point of the regulatory reform is also different. However, in30years thebasic objective of the reform of the world’s countries in network industry regulationsystem has been in consistent: through the break of the monopoly, introduction of thecompetition to promote the effective competition of the network industry. Since thenetwork industry has introduced competition, the interconnection and interoperabilitybetween internets has become the top priority of the supervision of the network production.And the development of a reasonable interconnection access pricing is the key for thesolution of interoperability. However, due to the complexity of the network structure, thediversity of the types of business of the internet-based industries, it is difficult todetermine the scientific and rational pricing schemes recognized by all parties. With thedeepening of the reform practice of "tri-networks integration" in various countries of theworld, establishing the social benefits that can maximize the network enterprise operations, business efficiency and consumer utility interconnection access pricing model at the sametime. And it is the key for network-type production to have the effective competition in themarket. For the above reasons, this paper tries to use the method of the mathematicaleconomic analysis study the impact of the access pricing on the market structure in theinterconnection and interoperability. Meanwhile, under the certain assumptions, make theanalysis of the specific impact factors of one-way access to the incumbent operators and toenter operators of its various business areas, product pricing and the access pricing factorsso as to provide the appropriate theory and practical advice for the development of priceregulation policy.On the basis actual problem of the regulatory system of China’s network industry isin urgent need of innovation, as well as shortage of theoretical studies. This paper hasmade the systematically research from the industrial integration and integration status andtrends of China’s network industry, development and comparison of domestic andinternational network industry of regulatory system, the characteristics and shortcomingsof government regulation of China’s network industry, as well as the adjustment andimprovement in the background of industrial integration of the network of governmentregulation. This paper has also made the analysis for the perfect path for the regulation ofthe network-based industry in order to explore the scientific and feasible measures of theregulations.The specific structure of this paper is designed as follows: on the basis of the analysisof government regulation of the concept, characteristics and development of theinstitutional economics and the economics of regulation to study the technology base andtheir development process of "tri-networks integration" in China. The inherent power andthe operating mechanism of the "tri-networks integration"; the study of the impact of theaccess pricing in the interconnection of the network-based industry on market structureunder the background of "tri-networks integration" by using the mathematical economicanalysis method; meanwhile, the author has analyzed the one-way access reign operatorsand enter operator market structure in its various business areas, product pricing undercertain assumptions, as well as the specific impact of a one-way access pricing factors, in order to provide theoretical and practical recommendations for the development of priceregulation policy; next is the analysis of practice and development of governmentregulation, the current situation and existing problems under the background of“tri-networks integration” in China; at last, on the basis of learning the practice of the"tri-networks integration" regulation, the paper has proposed the government regulation inresponse to the "tri-networks integration" in China.The paper study conclusion has indicated that China’s network-based industryregulation has a major impact on industrial development as well as the economicrestructuring of the overall national economy. When industrial integration has developedto a certain stage, the government regulation has not kept up with the pace of industrialintegration, facing problems and challenges from two aspects: First, it has not yetcompleted the transition from administration to modern government regulation; second, itis lack of the transition of the industrial integrated regulation from the industry discreteregulation. The regulation of network-based industries has social, economic effects andother aspects, the adjustment and improvement of the regulations should make efforts toadapt the overall situations of scientific development of economic regulation, building aharmonious society, opening compatible democracy and the legal process in order to makethe steady progress. Meanwhile, industrial integration has also proposed new requirementsof China’s network industry regulation: adhere to the principle of party monitor; adhere tothe principle of social and economic benefits in unity with the priority of the social benefit;adhere to the principle of long-term sustainable development; adhere to the categorymanagement to take principles of the measures of incentive regulation; adhere to adaptionof the trend of development to promote the principle of industrial development; adhere tothe targeted principle to provide a prerequisite to improve the effective regulation. Underthe premise of such principle to build a comprehensive legal basis and establish theindependent regulatory institutions, culturing the interests independence of marketcompetition as a major is the orientation of the network industry and the regulatory systemreform in China. In addition, the determination of the concept of classificationmanagement, strengthening the relationship between integration and competition etc. are the effective driving force to promote the regulation.The main features and innovative point for the study of this paper lie in:(A) Innovation of the perspective of the analysisThe previous study of government regulation was limited to conduct the independentresearch and analysis of the telecommunications industry or the cable industry. This paperhas first established the analytical framework of a cross-industry study to construct thethree theoretical basis of theory of industrial organization, enterprise competitive strategy,the theoretical basis of industry chain economics as well as the theoretical structure ofgovernment regulation theory, effective market competition as the main theoreticalframework, and carry out the comparative research on the telecommunications industryregulation, the regulation of the Internet industry, the development of the broadcastingregulation. And the author explores how the government does the regulation and thus thestudy of government regulation means as well as the regulation efficiency and other issuesafter the tri-networks integration. And the study from this perspective is innovative byfilling the shield spots of the previous studies.(B) Resolve the forward-looking issue of the problems existed in the currentgovernment regulationThe work of the tri-networks integration has still been in slow progress, according tomany problems exist for the tri-networks integration in the government regulation atpresent, this paper has pointed out the importance and necessity of the tri-networksintegration of government regulation based on government failure theory, regulationtheory, capture theory etc. As well as the means and content of government regulation,these measures are with forward-looking. The performance of government regulation inthe tri-networks integration can determine whether the tri-networks integration can becarried out smoothly.(C) Propose the access pricing strategy under the context of the "tri-networksintegration"The network industries under the full account of the external environment has madethe introduction of the access pricing for the market development through interconnection analysis, which has built the access pricing model, and it can be seen: thetelecommunications access pricing based on the conditions of interconnection that lead tothe lower business volume of the pricing changes from the industrial configuration willresult in adversely affect directly to the net social welfare. And the size of the operators ofthe access pricing is the determinant for the impact of the volume of business on industrialconfiguration. At the same time, because of the differences in scale, it will lead to themonopolization of the market index changes in different directions. Therefore, seen fromthe aspect of reducing the monopolization of the market, improving the social welfare, itshould be borne by the large operators to improve the access pricing.(D) Propose one-way access pricing strategies of network-based industries undergovernment regulationIn the context of government regulation, when there’s the existence of regulatoryincentives, the one-way access in monopoly industries will directly affect the pricing ofthe product. And the major influencing factors include the shadow cost of public funds,the demands elasticity of the product and the government marginal transfer payments. Inthe competitive business of the operators, the impact on product pricing factors: productdemand elasticity, marginal transfer payments, marginal services, the cross-elasticity ofthe products and alternative products, product sales in the market share. Therefore, duringthe development of the regulation of operators of government transfer payment system, itshould take full account of the impact of operator costs and transfer payments onmonopoly power, so as to make the product pricing and regulation to be in consistent withthe goals. Otherwise, the final product of the monopoly would only consider their profits,regardless of the maximization problem of the social welfare function.(E) Propose the incentives under the conditions of one-way accessWith combination of actual special background of telecommunications industryregulation in China, the author has made the analysis of the impact of the case of one-wayaccess regulation and incentives on the operator, together with the access pricing andproduct pricing. And finally concluded that the more efficient companies often have noexistence of motive regulation; when there’s such motivations, the authenticity of the regulatory agencies is higher, and the product pricing of the operator will be increaseaccordingly and it has obtained whether the occurrence of buy the probability value; theregulation bribed does not cause a direct impact on product pricing and access pricing, butit will cause indirect impact through product demands and prices.The study of this paper referring to the forefront of the latest international research, itenriches and improves the method of the theory and practice of network-based regulationand control under the context of the "tri-networks integration", and it has provided thebasis making basis for the control policy of the Chinese government, and this paper is withvery important theoretical significance and broad application prospects.
Keywords/Search Tags:“Tri-networks integration”, Government Regulation, Interoperability, One-way access pricing
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