Research On The Regulation Reform Of Chinese Telecommunication Industry

Regulation refers to, under the condition of economic system based on market mechanism, regarding correcting, improving the inherent problem of the market mechanism as object, government interfere the behavior of the activity of the economic subject. The purpose of regulation of telecommunication industry is to improve the resource distribution efficiency of telecommunication market, meet the public requirements for telecommunication service.People have been considering telecommunication as monopolized industry in that telecommunication has long been characterized by the completeness of network, the deposition of fixed asset as well as the scale of telecommunication operation. Due to the fact that monopoly operation may lead to inadequate supply, high price and X-Inefficiency and the loss of social welfare, the action of telecommunication enterprises must be under necessary restriction in order to be in the interest of the public.With the emerging of new technology of telecommunications, the natural monopoly of the telecommunication industry is weakened and competitiveness is strengthened gradually. Many countries have begun the regulation reform, in order to promote the competition of the telecommunication market. The reformation once really promoted the competition and development of telecommunication industry, but deregulation on one hand brings about vicious competition of telecommunication service market, on the other hand, local fixed telephone industry still monopolizes the telecommunication market.The telecommunication industry regulation reform of China started in the 80s of the 20th century. From the development of the regulation policies of telecommunication industry in China, we have seen the trend of deregulation, the introduction and the encouragement of competition, which is also the trend of international regulation reform of the telecommunication industries. From the development of the telecommunication industry in China, we can see the great improvement and change in the industry which is brought about by the regulation policies. However, we also have to seriously analyze the problems and drawback existing in the reform. The purpose of this reform is to break the monopoly and achieve the effective competition, but the effect of the so-called taking-apart reform is not so ideal. Essentially, the true sticking point of the monopoly in the industry is the monopoly in administration and the imperfect of the law system. However, the so-called taking-apart can not solve the institutional problems basically.The research method of this paper is from the theory to the practice. Beginning with the theory of natural monopoly and regulation, it analyzes the development and reform process of the telecommunication industry in foreign countries. Then on this base, along with the analysis of the reform in our country, it point out the problems and drawback existing in the reform. Lastly, many related theories and countermeasure for the reform of regulation are given in this paper, considering the existing problems in the telecommunication industry of our country and experiences and lessons attained from other countries.