China's Telecom Industry, Government Control

In modern time, the information industry has grown rapidly in the entire national economy of China, the role of the industry is increasing important apparently. Information technology stimulates the industry, in the new "Eleventh Five-Year Plan" has been stressed out the important of the industry, this also means that the information industry assume the task that drive the national economy up. In the process of informatzation, telecommunications industry is the pillar of a country in the economic development; it plays a very important role. Reform and open up of new China, the telecom industry has been developed very rapidly, but there is a high monopoly, the Government needs for making the telecommunications industry under government control, takes all the necessary control measures. Three decades of reform and opening up process, the telecom industry is from the initial deregulation of the price formation to the modern full-service competition, great changes have taken place. The effect of government regulation gradually exposed on the telecommunications industry, market competition is gradually strengthening.Control policies are in the Government guidance, which are a number of industrial restructuring and mergers and acquisitions, the Chinese telecommunications industry has undergone enormous changes, the three operators of the whole new pattern of competition has been revealed. In terms of price control, industry policy control, asymmetric control, the Government has made some achievements, but the telecommunications industry developed rapidly in China, there is an urgent need for more focused control policy. China Telecom is currently behind in the telecommunications reform legislation, the telecommunications market still exists many problems.Monopolistic behavior, regulatory bodies, the telecommunications market can not reflect rapidly reform result, the mechanism has not yet formed. In the future if the government solves these problems, the development of the telecommunications industry will be better and better.The Chinese government issued the third generation mobile communication business license (3G license) in 2009, which the Government takes the important measures to adjust the capacity of the telecommunications industry. China telecom industry regulation and competition should be made by how to settle the important and practical problems urgently in such a time. In this paper, introduce the economic characteristics of the telecommunications industry firstly, followed a brief review of all the Chinese government control of the telecommunications industry, the effect of the reform on the history, make a comparison and summary of the foreign telecom industry on the process of government regulation, problems and experiences, an analysis of 2008 on many new government regulation of the telecommunications industry, make an conclusion of the effects of proposed government regulation to promote competition in China telecom industry. In this paper I use an analysis of empirical methods in economics and the use of principal component multiple regression analysis which are to demonstrate the innovation of the article. The last part of the article is the future of China telecom industry reform and the development proposal.