Effective Competition Research Of China's Basic Telecommunications Market

Telecommunications industry influences a country's information security, economic development and convenience of people's life, almost all countries experienced telecommunications monopoly, regulation and competition, they also pay close attention to the structure and competition of telecommunications market. China's telecommunications industry has been seeking better and faster development since 1994 when China Unicom entered, it has experienced three major structural changes, for the first time competition was introduced, for the second time telecommunications services and regional company was divided, for the third time different business was allowed to operate by one company. This article analyzes and studies the telecom market in China based on the structure and effective competition.Many of the telecommunications market structure and competition studies use the traditional SCP paradigm, that the market structure determines market conduct, subsequently decided market competition, but the basic telecommunication industry has its own characteristics, such as economies of scale and network economies, fully competitive market structure is not good for the development of the telecommunications market. So this article is based on the effective competition theory, use statistical analysis, game theory analysis and DEA empirical analysis to illustrate the problem.The article criticize effectiveness of the China's telecom market, and draws that effective competition in the telecommunications market in general has increased annually, but there are some non-effective problem such as vicious price competition, collusion and Matthew phenomenon. Then we analyze China's lack of effective competition factors in basic telecommunications market, such as lack of legislation, exchange and network facilities monopoly. Basic telecommunications market regulation goal should be to promote effective competition, regulate markets non-effective competition and develop market rules. From market structure regulation, interconnection regulation and business conduct regulation we proposed some measures to promote effective competition. In the background of 3G times, the telecom market reforms still be placed on the market structure changes, this article found changes in market structure to some extent improve the competitive situation effectively in early and mid times, but then non-effective competition comes out. This article believes that the development of the telecommunications market depends on the promotion of effective competition, rather than structural changes and the introduction of competition, this point will inspire the long-term direction of development and regulation of telecommunications.