Under WTO The Analysis On Telecommunications Industry Competition

Along with technological innovation, the monopoly nature of telecommunications market is dying out. This market needs competition, which is determined by the inherent development needs of the market. In addition, this need is the reflection of Chinese promise to open up markets when China joined WTO. Market liberalization and effective regulation leads to competition. And then effective competition increases producer plus and consumer plus at the same time, maximizing the social welfare for the whole society. In order to develop telecommunications market on a larger scale, to exploit new service and to research on new technology, the market needs to absorb funds including private funds. Also, the new way to attract funds can help bring advanced management ability. As the country which signed 'Basic Telecommunication Protocol', China must abide by the principles listed on General Agreement on Trade in Service (GATS) and Basic Telecommunications Protocol. As time goes by, Chinese telecommunication service market is moving towards the more legalized and more open situation. The entry barrier for foreign investment flow into Chinese telecommunication market is lower and lower. Thus, from now on, this market is facing the changing trend from cooperating with foreign telecommunication operator to competing against them. For Chinese telecommunication operators, how to deal with this situation and how to improve the distinctive competency have become the questions for discussion.From the perspective of economics, this thesis analyzes the advantage of market competition. Effective regulation can help avoid monopoly and ensure competition. In this case, producer's high profit turns to consumer surplus, encouraging producers to innovate technologically, enhancing producer surplus and then maximizing social welfare. Additionally, on the basis of property right theory, this paper analyzes the strength and weakness of the aftermath of injecting non-state-owned investment, and researches on the impact on telecommunication regulation policy after advancing market competition. Through the case studies of Philippines, Malaysia and Singapore e.t., and the analysis on the current situation of Chinese market competition and on the incumbent competitors, this paper provides suggestions to regulators and market participators, and also mentions the problems happening in the process of facilitating competition.