Study Of Monopoly Regulation In The Telecommunication Industry Of China

Since the telecommunication industry is considered to be public utilities, large investment, long duration, wide range, slow effect, and unrepeated construction are its significant characteristics. Related to national economy, social welfare and the people's livelihood, telecommunication industry must be frugal, lower cost, and improve efficiency, and not spread so much to achieve economies of scale, so it is considered as a natural monopoly industry. As science and technology develop, traditional theory of natural monopoly is under challenge. Face the stock market, it often against the interests of consumers. Thus the author believes that the development of science and technology have provided the conditions for competition in the telecommunication industry. Especially since the 1980s, with the development of telecommunication technology and the growth of communication market demand, the advantages of telecommunication industry are gradually disappearing. Meanwhile, foreign reforms to break the monopoly and bring into competition mechanism in telecommunication industry are surging. In recent years, China has carried out a series of reforms in the telecommunication industry, such as the reduction or elimination of subsidies, the implementation of cost-based pricing system to the individual. Through institutional reforms, the traditional framework that administrative government departments or monopoly enterprises are not only "referees" but also "players" has changed. Compared with progress of the reform of the telecommunication industry in some countries, and with the requirements of the socialistic market economic system, China's telecommunication industry structure still exists some problems. Long-term model of monopolization management and planned economy result in a series of problems, such as low level of technical equipment, single function, poor quality and lack of service, and consumers are full of complaint. With China's accession to the WTO and further opening up markets, this will lead to more multinational companies (MNC) entering Chinese market. These MNC not only have solid general financial resources and plenty of world famous brands, the powerful distribution network and advertising, but also have rich finance and production technologies encouragement from their parent companies. Thus, they could quickly achieve market dominance on Chinese market, or even achieve possibility of monopoly status, resulting in commercial monopoly behavior to restrict competition. At present, anti-monopoly regulation in Chinese telecommunication industry must face into natural monopoly...