Law And Economics Research On The Regulation Mechanism Of China Telecommunications Industry

With dramatic changes of the monopoly industry in the world ,it occurs the wave of regulatory reform that de-regulation to strengthen the supervision by the quality of since the 20th century 70's.30 years of reform and opening up, China's monopoly industry has become gradually matured, but still facing the imperfect system problems. 17th People's Congress explicitly proposed regulatory reform of monopolistic industries as development of market economy, adjusting the industrial structure of the most important, deepen reform, further breaking the inefficient state-owned monopoly behavior. As the "Telecommunications Law" missing, so many large enterprises still show confusion and immaturity, it has become more and more difficult to further promote the industry development. The regulatory policy of China's telecommunications industry, combined both the government and enterprises at first, lack the effective competitions, give rise to the inefficiency operating of the telecommunications industry, as the so-called no power, no external pressure, companies will be swallowed up in the wave of economic globalization in the long run, the reform being. This paper attempts to study in the telecommunications regulatory basis, and further explore the diverse regulatory mechanisms, and try to find out a suitable China's regulatory system, and improve the legal system. Regulating mechanism should be rised to institutional level by a reasonable system, and establish a fair and just, orderly market environment and the transformation of government functions to better promote the development of the telecommunications industry. This paper is divided into five parts, here the specific content of this article are as follows.The first part is to introduce the technical and economic characteristics of the telecommunications industry, as well as the theoretical basis for regulatory reform. First of all, it could be divided into basic telecommunications services and value-added telecommunications services. It is an industry with the natural monopoly nature, which mainly reflected on the local fixed network of the bottom basic network, in order to play the function, we must get access to the local fixed network at first to attain full services. Secondly, the telecommunications industry also has the economic characteristics which benefit on both scale and scope. After entering the basic network, this feature mainly reflect on the telecommunications services sector which attached to the top of the telecommunications network. Moreover, there is a positive and negative external telecommunications network issues. Finally, the analysis for the telecommunications industry's government regulation and regulatory reform in theory: the natural monopoly theory, the government supervision capture theory, the price level of supervision, permitting supervision theory, investment supervision theory, theory of public goods and interests, and market competition theory, incentive economic, Industrial Organization theory and so on. By using the combination of theory's role in the real, practical basis summarized. Government supervision behaviors to the telecommunications industry should conduct its regulatory mechanism and policies to achieve the best results and bring the greatest utility by using these theories.The second part is mainly start from the perspective of the law-economics, on the analysis of outstanding issues in the telecommunications industry, and to resolve the puzzle issues which from the optimal regulatory mechanism design ideal to the concrete and workable supervision laws and regulations, to make up for the gap between regulatory mechanism Theory of "supply" and the reality "needs" of regulatory regime in monopoly industry. First of all, we could arrive at the causes that the prices deviations of China's telecommunications industry by the analysis which model of price regulation Britain and American had adopted. Secondly, giving examples of mobile pornographic websites ,make some analysis on the costs and benefits among offenders, law enforcement and operators ,and then to explore the institutional arrangements .by the introduction of rational utility possibilities curve. At last, try to find out the interaction among the government regulators, telecoms operators and consumers and make a balanced decision by using the Game analysis paradigm. Such acts by its own constraints, but also by other decisions of both sides of the game in its favor to make the optimal decision. The ultimate aim is to select the most efficient Nash equilibrium so that to achieve the social optimum efficiency.The third part is the analysis on reform of regulatory status of the Chinese telecom industry. China's current telecommunications regulatory are due to regulatory mechanisms, institutions and systems issues, inadequate supervision of regulatory institutions, and how find another supervisor to the regulatory institutions which could stand above the benefits between telecommunications business and supervisor ,and play a better role on the economies of scale and scope of the telecommunications industry, promoting the rational form of regulation for property rights system and the telecommunications industry mutual integration which is the resolution of China's telecommunications industry to achieve a qualitative leap in the key. Then some regulatory measures and policies for the lagging status has been adopted. China's telecommunication regulators have faced the greater challenge after the implementation of the third time telecom restructuring, our telecommunications industry is rapidly developing, by strengthening laws and regulations, to increase from the control of the main macro-control, to reduce micro-intervention. Rising the regulatory awareness of citizens ,taking participation in monitor the implementation. According to problems in the telecommunications industry ,our government are able to make appropriate policies and measures to protect the stability of the telecommunications industry, and also contributed to the rapid development of the national economy.The fourth part introduced and analyzed the development of telecommunications industry and regulatory experience in the United States, Britain and Japan. According to their successful experiences, it could provide us a strong factual basis for the telecommunications industry regulatory, and also keep away from detours of constructions. By take all these characteristics regulatory mode into account, we may safely arrive at a new road to regulatory reform which will strengthen the supervision as well as promote the development of China's telecom industry.The last part is the main part of this article, after the first four parts analysis, I put forward some reasonable proposals that build a construction in the telecommunications industry regulatory reform related mechanisms, institutions and systems with Chinese characteristics.Firstly, we must accelerate the introduction of the "Telecommunications Law", also we need to pay attention to the coordination, balance the need for constraints among "Telecommunications Act" and "Civil Law", "Criminal Law", "administrative law" and just issued "Antitrust Law". nd follow the principle of "According to the law must following the law." to our telecom industrySecondly, it is necessary to establish an independent regulatory institution attach to the State Council on the system construction, the State Council of decentralization, the NPC and its Standing Committee play a role to strengthen supervision on law enforcement legislation, and the court is acting as a neutral arbitration institutions regulation, the tripartite balance of power constraints, ensure the regulatory agencies to play its optimal efficiency role, and also protecting the telecom market in a smooth and orderly conduct regulatory reform, and its fair and just development. Finally, within the security regime and integrity system supporting, China's telecommunications regulatory reform can be more smoothly develop by adopting multi-regulatory mechanism; strengthening administrative supervision, improving the accountability mechanism; promoting all aspects of society monitoring mechanisms to guarantee fair regulation; telecom operators Business reform focused mainly on the establishing a modern enterprise system.Telecommunications regulatory reform in different countries, is due to the difference in political and economic system, circumstances and cultural, how to choose their own path of development is the key to the success.