Study On The Compensation Mechanism Of Broadband Universal Service In Telecommunication Industry

With the rapid development of broadband industry, everyone from all over the world, could feel the changement from "digital divide" into "broadband divide", which is bringing some significant impact and influence to their personal life styles, even the national economy. Through the study we found that, no matter the developed countries or the developing countries, regardless of their economic power, they are all eager to take the broadband universal service as their national strategy, which shows its importance as self-evident. For China, the basic national conditions is different from other countries, for instant as that, universal service compensation mechanism and broadband development cannot fully adapt to cooperate with each other, which is together with vast territory, great population, imperfect telecom laws and regulations system, no-sound as safeguard mechanism of the telecommunications universal service and etc, with these problems, difficulties become more obvious and prominent.Through the empirical analysis and literature research, combining with the characteristics of Chinese basic national economic conditions, this paper argues that there are three urgent theories needs which must be made for Chinese nascent broadband universal service compensation mechanism:first theory of needs, contains two levels:level1, there is no study which is doing the research by using the perspective of quantitative on the relationship between input of cost and output of socioeconomic performance; level2, there is no study which is doing the research by using the perspective of broadband portfolio type to analysis the broadband industry characteristic. Second theory of needs, there is rarely study of cost accounting estimation by using statistical data released by authorities. Third theory of needs, there is no study of using the perspective of evolutionary game theory, from the angle of dynamic replication system to analysis and research the Nash equilibrium problem in broadband industry’s development, much less for the further study of broadband universal service.For the three theoretical blank choice, this paper argues with consideration of the logical coherence and progressive relation, which could be summarized as follows:first of all, the characteristics of broadband industry could affect universal service compensation mechanism, if China’s existing "cross-subsidy" cannot be match with the development of broadband compensation system, the effect will be the most intuitive reflect on input(rural broadband development and cost) and output(socioeconomic performance) efficiency estimation. According to the theoretical analysis of this article, government subsidies(in accordance with the cost method) should be involved as auxiliary compensation mode, which could improve the existing compensation mode, the next question is that how to estimate the cost. After all of that, we need to research the influence of the government subsidies to the compensation mechanism, which consistent with the theory made in the front of our paper, enhancing the integrity.So, the conclusions of this study are:1. By using relevant mathematical tools to analyze the characteristics of the broadband industry, through the DEA data envelopment analysis method, this paper argues from the perspective of empirical analysis to prove that the efficiency between the input of rural broadband development and cost and output of socioeconomic performance is low, only56.97%on average, the efficient provinces accounted for the proportion of the total village broadband task is41.07%. Aimed at the present theory needs and the lack of empirical data analysis towards broadband universal service compensation mechanism’s efficiency for socioeconomic performance, using the CCR model of DEA method, combined with the statistical data released by authorities, we build the input and output efficiency evaluation index system and make certain empirical research. Results show that the intervention to our broadband market with government subsidies for broadband universal service, could solve the shortage of funds, improve the efficiency and increase the broadband penetration, which is important and necessary for our national economic development.2. This paper proposes a new way and conception of estimating the cost with statistical data:recursion method of mixed cost subsidy measurement". This paper uses statistical data released by authorities to estimated the operators’cost of broadband universal service for rural areas, which as a innovative way and method for our research and study. Results which are analyzed with Statistical perspective by using SPSS20.0to show that the cost of broadband universal service compensation mechanism for rural areas in our country and the product between the broadband task number and the deployment rate is significantly related. This conclusion could not only help us to estimate operators’future cost of broadband universal service for rural areas, but also could help the government make budgets for the broadband subsidies.3. Based on the condition of rural broadband construction in China, by building a evolutionary game theory and dynamic replication system (2×2×2double strategy game, government with2options:subsidies or no subsidies, the operators with2options:cooperation or no cooperation with other operators) towards the broadband universal service compensation mechanism for the rural area with related statistical data, we got an important conclusion:government subsidies is one of the necessary requirements that the dynamic replication system could reach gradual stability of Nash equilibrium in the process of repeated games through Lorentz’s timing system, and there is no cooperation between operators in stable equilibrium. This important conclusion highly stressed the necessity of government subsidies for rural area, but also has certain of significant meaning for our entire broadband industry. Besides this, the conclusion also makes up for the theoretical blank:there is no study on the broadband universal service compensation mechanism by using empirical analysis with dynamic development perspective and method.