Research On The Efficiency Of China Telecommunication Industry

In the early 1980s, China established the policy of the China Telecommunications Industry (CTI)'s priority development privileges. In the support of government policy, CTI gained great progress from a backward industry to the pillar one, and successfully transformed from a small telecommunications market to the world's largest one. Although performed well in last 30 years, CTI still has many problems judging by the input of CTI and its market conditions.In this paper, the concept of CTI's efficiency and the main influence factor are first presented, and then the industrial organization theory - "structure - conduct - performance" analytical framework is used to analyze the current performance of CTI. Then Data Envelopment Analysis (DEA) input-output model is used to do further research from the perspective of efficiency in CTI, which found that non-efficiency circumstance has emerged in its process in many years for the impacts of the administrative intervention and reorganization of CTI. Finally, by comparing telecommunications enterprises'efficiencies, we draw conclusions as follows. There is no any competitive advantage to the fixed network operators comparing to the mobile network ones in years of 2002-2007; there is a positive correlation-ship between the enterprises'efficiency and the enterprises'scale; there is still a great upgrading in telecommunications enterprises'business innovation.At the end of this paper, the countermeasures against the existing problems are made from two perspectives, the government and company. As to government, releasing Telecommunication Act, supporting the disadvantaged enterprise, and deregulating the telecommunication market entrance should be done. To enterprises, the three efforts of strengthening mutual cooperation in the network level, taking different routes of marketing and accelerating the "go out" the pace are strongly advised.