Study In China Telecommunication Industry Competition

The development of the telecom industry plays a very important role in national economic development, which is related to national, economic and political security. The study of the reform and development of the telecom industry has a very important practical significance.Along with the development of digital technology as well as information and telecommunication needs structural changes, most of the attributes of a natural monopoly telecom industry gradually disappeared, and gradually form a pattern of competition. However, as communications competition intensifies, the telecommunications industry revealed excessive competition, and weaken the competitiveness of the enterprises themselves, resulting in low efficiency in the market. In addition, there still exist administrative monopolies in the telecommunications industry, and the market competition still lack of competition. Based on an in-depth analysis of these two aspects of competition, we recognize that only through trade legislation and industry reforms can we break the existing monopoly; only through government controls, can we effectively reduce competition in the telecommunications industry. On the other hand, in the remnants of the natural monopolies in telecommunications industry, such as local call market, telecommunications charges, it is necessary for the redevelopment of control, in order to coordinate the development of telecommunications and the national economy. China telecommunications industry should be able to survive independently, but also be closely integrated with the telecom industry .Only when operators straighten out the relationship between them and when they carry out extensive cooperation in rational competition, can Chinese telecom companies achieve long-term healthy development, and have strength to meet the challenges of foreign investment.This paper provides a review of relevant theories, and then introduced the reform of the telecommunications industry practice and experience in the world. We hope to learn from the developments in the telecommunications industry. In the third part, the article analyzes the problems of the existing competition pattern of excessive competition and a lack of competition in telecommunications competition, and analyzed the causes. The article finally settled on one thing: how to achieve effective competition in the telecommunications industry, and put forward a series of solutions.