Government Regulation Reform And Effect Analysis Of China's Telecommunications Industry

Because the significant publicity and monopoly nature of telecommunications industry, it has to involve the issue of government regulation. Before 60s in the last century, all countries'telecommunications industry has been a long-term monopoly. In the monopoly system, the government must ensure the services provided in accordance with requirements of the public interest by controlling the profits of monopoly enterprises. Until 90s of the 20th century, telecommunications industry has undergone tremendous changes across the world, a large number of state-owned telecom companies were privatized, and the introduction of competition and deregulation in the telecommunications industry swept the world. Many countries brought market-oriented ideas in telecom operation. More and more evidence proves that companies would not actively take the initiative to improve technology, improve service, reduce operational costs because of the lack of competitive pressure in the monopoly system, only the open competitive market be conducive to enterprise development and innovation to provide users with better service.Market-oriented to provide telecommunications services means the agency of telecom regulation should avoid involving in the specific business activities of telecommunications industry, telecom operators should be self-operated enterprises, and the responsibility of regulation agency should be maintaining a publicly available and high-efficient marketing environment. Therefore, deregulation is a major trend for the telecommunications industry which makes it go through from monopoly to competition, but at the same time, the telecommunications industry still need to be regulated, the agency of telecom regulation should ensure to choose the most efficient measures to achieve the regulatory objectives.But as so far, there are still large gaps between the actual effect of regulatory reform of China telecom and expectations. China's telecommunications market has not achieved effective competition and the positive role of market competition mechanism has not been fully played out, the legal system of telecommunications industry is not complete, the absence of telecommunications regulatory agency or the lack of independent management, supervision and restraint are not in place, all these problem still exists, it is difficult to control over its implementation effectively. The pricing mechanism of telecom industry does not meet the requirements of the marketing economy, economy efficiency still need to be improved, traditional forms of universal service failed. Therefore, the study of how China's telecommunications industry deepening the reform to achieve effective competition and allow consumers to share the benefits of reform has important practical significance.Firstly, the paper theoretically analyze the economic characteristics of telecommunications industry deeply, namely the telecommunications industry has several major features like economies of scale, economies of scope, productivity, network and product services, which further proves the natural properties of monopoly telecom industry and necessity of government regulation. In the meanwhile, the page researches the concepts, objectives, principles and content of telecommunications regulatory system and further clarifies the objectives of telecommunications regulation and direction.Secondly, the paper analyzes the reform course of the entire telecommunications system. The development of China's telecommunications industry has gone through from monopoly to competition, from unity of government and enterprise to separating to two parts, from the two competitors to more than one government regulation reform, it gradually towards a healthy, high-speed, coordinated development. In particular, in 2001, since China's accession to the World Trade Organization (WTO) the reform of the telecommunications market in China has made breakthrough progress in the government development strategy, full-service competition in the market initially formed; mutual penetration of business areas, new industrial chain has taken shape. Then, the pager analyzes the impacts of government regulation to the development of China entire telecom industry from three aspects, including the telecommunications industry structure, service quality, and telecommunications investment Meanwhile, with the status and characteristics of China's telecommunications industry, the paper points out the main problem of China's current telecom regulation reform process. First, it is the system of telecommunications problems in government regulation, including telecommunications regulatory agencies are not independent, the rigid government regulation functions, telecom legal system is not perfect and so on. Second, the specific functions of the telecommunications regulatory have problems, mainly lies in chaotic pricing system in the telecommunications, resulting in the passive government regulation, absence of internal operations of telecommunications regulation mechanism, failure of traditional form of universal service.Finally, for the problems of government regulation of telecommunications reform and development in the telecommunications industry and government regulation on deepening the reform of the telecommunications industry, the paper gives the following observations and recommendations to achieve the effective regulation of the telecommunications industry. Firstly, establish efficient government regulation system. Concrete methods:â‘ to complete the legal system of telecommunications;â‘¡to establish an independent regulatory agency in the telecommunications industry;â‘¢to establish an effective social supervision mechanism. Secondly, the specific comments and suggestions to the implementation of the telecommunications regulatory aspects.â‘ Proposals to regulation of telecom fees;â‘¡to strengthen the supervision of the telecommunications enterprises;â‘¢to establish universal service fund;â‘£accelerate the "unity of triple networks"Innovation of this paper is the objective assessment of the government reform on the development of China's telecom industry from the perspective of telecommunications employees, and change that brings to telecom business model. Based on the industry as well as the development of the enterprise situation and the various problems that arise on the development of proposed telecommunications reform in China, to provide recommendation to further deepen the reform of the telecommunications industry in the government regulation and better regulate telecommunications market, not only allowing consumers to share the benefits of reform, telecommunications companies also make the ordinary employees get rid of the current business pressures and difficulties and fully enjoy the benefits of government regulation reform.