A Research On The Strategy Of Telecommunications Industry Enterprise Reformation In China

In China, the government has directly managed telecommunications industry for a long time. In the early Ninety's, radical reform took place in the China telecommunications industry with the development of international Telecommunications industry. The formal establishment of China Unicom in 1994 marked the broken of the China telecommunications monopoly. The following establishments of the corporations of China Mobile, China Telecom, China Netcom, China Jitong, China Satellite and China Railcom, as well as the previous China Unicom, form the primary competition situation of the telecommunications market.The China telecommunications enterprise reformation, however, has just stepped forward one pace. There are still a number of objective and artificial factors preventing its further development, so the research on telecommunications enterprise reformation will certainly lead to strong realism meaning.The paper gives out the initial description of the development of our telecommunications enterprise reformation. It analyzes the existing problems of the reformation from the point of market structure, market conduct and market performance with the industry organization theory. Moreover, it also brings out the corresponding strategy. The paper develops its research in the following four parts. 1. Part one describes the environment of the China telecommunications enterprise reformation, and separately analyses the influence on telecommunications development by administrative monopoly and the joining of WTO. It also expounds the meaning of the telecommunications system reformation.2. Part two introduces the present telecommunications system reformation and industry recombination condition. Firstly, it summarizes two reformation modes of the global telecommunications industry. Then it introduces the three steps of our telecommunications industry reformation and the present industry recombination condition. Finally it brings out the suggestion that the establishment of modern enterprise system should be the direction of the reformation.3. Part three analyses the existing problems in the telecommunications industry system reformation. From three points of market structure, market conduct and market performance, it analyses the existing problems with the industry organization theory, including the local call monopoly, the government control and the short sight of the enterprises.4. Part four discusses the strategy of the telecommunications system reformation. It brings out the ideal mode for our telecommunications market. The strategy of the telecommunications enterprise reformation should begin with the establishing of the modern enterprise system. One is to set up a reasonable market structure; the other is to regular the enterprise conduct, and to accelerate the establishment of the modern enterprise management system. Based on these systems, an "effective competition" marked mode with appropriate competition and monopoly should be set up to regular and restrict the enterprise conduct to get better market performance.