Research On Government Regulation And Regulation In Natural Monopoly Industry

In view of the natural monopoly’s theory such as Economies of scale and Economies of scope, the sort of telecommunications business is classified as typical natural monopoly industries in most countries as well as in China. Government management mechanism on those natural monopoly industries such as telecommunications, great majority of countries have adopted a parallel mode of supervision and regulation. Industry supervision is the traditional means of our government management of the telecommunications industry. It completely dominates the whole course of reforming and development process of China’s telecom industry before2008. After August1,2008, along with the "AML" begun to implement, Competition regulation are initially involved in the government of China’s telecommunications industry, China’s telecommunications industry has entered the era of industry supervision and competition regulation coexisted. But the two are relatively independent of the respective terms of reference. From the overall situation, regardless of industry supervision or competition regulation, there are still a lot of problems in government management of the telecommunications industry. In order to promote the steady development of China’s telecom industry, the government should take appropriate measures to improve its industry supervision and competition regulation.