Study On The Efficient Competition Of Telecommunication Industry In China

The reform of telecommunication industry is one of the most active subjects for research of industrial economics circles. Through a series of partition and reorganization, the monopolistic structure of telecommunication industry has been broken in China. However, there is still a great distance before realizing the goal of efficient competition. Obstacles that impede fair competition in telecommunication industry are far from clearance. Telecommunication enterprises in China are weak in competing ability, which would prevent them from winning the contest in global market. All the above mentioned will hinder the further development of telecommunication industry in China.Besides introduction, this paper consists of four parts. Theories on competition are summarized in Part One. The efficient competition is a state of equilibrium in which economy of scale and competing vitality are coordinated. The telecommunication industry Chain, by its tech-economic characteristics, can be divided into three parts as the network infrastructure layer, the basic service layer and the value-added service layer, of which the standards of efficient competition differ from each other due to their differences in tech-economic characteristics. Therefore, the stratification competition mode is proposed in this part to obtain the goal of efficient competition in telecommunication industry.Part Two is the empirical research on the practice of telecommunication industry reform in some countries. Although the reform in U.S.A and India both follow the route characterized by "structure partition", their results are far from each other. In the mode of U.K, the vertical-integrated telecommunication enterprises are preserved. Through gradually introducing competition mechanism and reforming regulation system, the telecommunication industry in U.K. has stepped into benign track. By comparison between cases, this paper indicates that the partition to the industry is not purpose but means, and that the key to the reform lies ineffectively suppressing the monopoly power of vertical-integrated telecommunication enterprises and in constructing efficient regulation system.Industrial organization theories, together with the current statistics, are employed in Part Three to analyze the development situation of telecommunication industry in China. The following factors are especially analyzed as interconnection obstacles, entry barriers, universal services, statutory monopoly, etc. This paper concludes that the vertical-integrated managerial mode and the regulation system derived from planned economy are basic reasons that hinder the telecommunication industry in China from realizing the efficient competition.Combining the case of reform in electricity industry, Part Four puts forward the systematic scheme of realizing the efficient competition in China's telecommunication industry, of which the core is breaking the vertical-integrated managerial mode and separating the network management from the service management, thus introducing stratification competition mode. On this basis, other measures should be taken as restructuring regulation system and deepening system reform of telecommunication enterprises.This paper is the elementary research that is carried on on the basis of forefathers' achievements. The innovation, if there is any in this paper, lies in that such research tools as game theory, mathematical statistics, case comparison and so on, combined with theories on network economy, are employed in analyzing the problem concerning the efficient competition of telecommunication industry from a new visual angle. It is concluded in this paper that the vertical-integrated managerial mode enable telecommunication enterprises to hold the bottleneck of network infrastructure and thus strong monopoly power, so it is the basic reason that hinder the efficient competition in China's telecommunication industry. Stratification competition mode is accordingly proposed as an ideal mode to introduce competition mechanism into the industry. This paper indicates that the key to the telecommunication...