The Option Of China Telecom Price Regulation Modes: Theory And Cases Research

Most of the countries in the world have regulated their telecom industry, and price regulation is the most important one in all kinds of telecom regulation. But in China, there are not any price models about telecom price regulation, so the formulation and adjustment of the prices of telecom services is lack of accuracy, quite subjective inevitably. Meanwhile, China's telecom market is opening to the foreign investment; investors will ask the government to regulate the prices of telecom services with a system of transparency and clear rules, as the basis of their investment decisions. Therefore, the choice of a suitable price regulation method or building the price regulation of China telecom industry has been necessary.The thesis firstly introduces the theory of telecom price regulation. Then we discuss the principles and aims of telecom price regulation. The analysis in this quarter focuses on the discussion of two major price regulation models including Rate of Return Regulation and Price Cap Regulation. The analysis reveals that these two models have their own advantages and disadvantages in specific applications. So the conditions of their applications are different, and the development phases, market structures, service traits and capability of regulator in different countries have important impact on the choices. Taking the case of telecom price regulation of four countries, the thesis analyzes the choices and applications of these countries and summarizes some experiences and lessons. Then, the thesis analyzes China's price regulation system and the factors that affect the choice of China's telecom price regulation. It reveals that Price Cap Regulation is more applicable to China's situations. Finally, this thesis gives some policy recommendations to the choice of China's telecom price regulation.