The Causes Of Monopoly And Competition In The System

In the 1990s, the telecom reform has been prevailed in the world. There is an irreversible trend in the development of global economy, information economy and network economy. The ICTS (Information & Communication Technologies and Services) industry will be the biggest industry of the world. The telecommunications industry of China is at the turning point with both challenges and opportunities.During the past 20 years, there have been great changes in the ICTS sector in China. In the 1990s especially, the average growth rate of telecommunications industry has reached 44% annually with the proportion in GDP of China increasing every year. In the past 9 years, the aggregate assets of public telecom networks are 600 billion RMB which have increased 30 times; the telephony density has increased from 1% to more than 10% in China of which the speed is the fastest in the world at this stage. At the same time, the whole ICT (Information & Communication Technologies) level and many new services were developed remarkably. The government regarded the ICTS industry as higher priority industry, and established relevant policies to push it forward. It is the reform that made the rapid development of the ICTS industry. The process of reforming the old system, establishing a new one, adapting to the market economy, and facing up to the future and the world is the process of institutional innovation.The institutional innovation liberated the productivity and promoted the rapid growth of the telecommunications industry as well as the whole national economy. The telecommunications industry is among the industries of highly intelligence-intensive, highly technology-intensive and highly investment-intensive. Many essential factors determine the power and competitive of the telecommunications industry of a state, including the ability to master and apply the advanced ICT, the scale and structure of networks, types and quality of services, quality of management and human resources, infrastructures and facilities, and investments. The growth of telecommunications industry is not only the growth in quantity, but also the growth in quality. Since the late 1980s, as the development of ICT became faster and faster, various services have emerged, the technological architecture and management methods have become more and more sophisticated. Technology progress is the primary impetus of the development of telecommunications industry and has changed the face of traditional telecommunications industry revolutionarily. The convergence of telecom, computer networks and video transmission technologies blurs the boundaries of traditional industries, broadens the contents of services, and pushes the reconstruction and merger of the ICTS. At the same time, multilevel development becomes the characteristic of the ICTS markets. ICT and ICTS are playing a more and more important role in both people's daily life and other sectors of the economy. The rapid development of ICT stimulates the market demands, and makes the ICTS industry the most active and promising industry.In the past 20 years, there would be no fully development in China's telecommunications industry without the reform and institutional innovation; the technology progress, market enlargement, and multilevel development of the marketdemands together claim for the further reform of telecom regulatory system and impulse the institutional innovation. In fact, the institutional innovation in the ICTS industry is a global subject.Telecommunications industry was born in US, and now has become the most powerful and competitive field. In the 1980s telecom reform was initiated in US, then spread to other developed countries. The implications and actions of this reform were based on the background of Western countries, especially the US. How can we refer to its experiences and its today's choices whose market economy is fully developed and the ICT surpasses that of China so greatly? To the officers and the people who concern about the ICTS industry in China, how to get through the o...