Empirical Analysis And Policy Suggestion For Regulation Reform On Chinese Telecom Market

As a significant element in the national economy , the telecommunications industry has been under government regulations for decades. Both the theories and practices concerning the regulations system and policies become common research subject for academic circle, government departments and telecommunications enterprises.In this paper, we will discuss the influences of relaxing government regulation on Chinese telecom market. It introduces the process of government regulation reforms and makes comparison with foreign countries, and then empirical analyses are followed on two levels. First, it illuminates the market structure changes of Chinese telecom industry after regulation reforms by H index used in industrial organization analysis; second, it tests the effects of regulation reforms on the development of telecom market with regression in econometrics. It is proved that the market structure of telecom industry has been improved, that is, from monopoly to elementary competition; while subdivided operation markets are still oligopolies. Telecom regulation reform has promoted the development of telecom markets as an activator.Therefore, Chinese telecom regulation reforms have made good results on the whole, but further reform is necessary. Relaxing regulation and introducing competition is the trend of the reform, which will be favorable for the form of an effectively competitive market and accelerate the development of telecom industry.