Regulation And Competition In Network Industries: Case Of China's Telecommunications Industry

Network Industries are industries characterized by basic operational networks. Examples include telecommunications industry, electrical industry, and railway industry. These industries are also called infrastructure industries. State control over basic operational networks is likely to lead to the incumbent operators' monopoly and low efficiency in the markets. Meanwhile, the limitation of information, administration and policy may result in government regulatory failure.This thesis focuses on analyzing the regulation and competition of China's network industries with special reference to China's telecommunications industry. Based on reviewing classical industrial organization theories and modern industrial regulation theories and illustrating the regulatory reform process of China's telecommunications industry, the thesis makes theoretical and empirical studies on governmental regulation and competition measures. Moreover, with lessons learned from corresponding successful experiences in foreign industrial countries, studies are broadened to other network industries facing similar issues. Specifically, by taking China's current situation into account, this thesis makes a number of institutional explanations. Policy implications are also drawn for regulation and competition in China's network industries in both short and long runs.