China's Telecommunications Industry Rulemaking Price And Effective Competition Analysis

Traditionally, the telecommunication industry is thought that it needs regulation just for it's natural monopoly. With the rapid development speed of telecommunication technology and the recognizing of natural monopoly, the telecommunication industry is seldom taken as natural monopoly industry. With the decomposed of AT&T in 1984, it's worldwide trend to deregulate in telecommunication industry. The essential purpose of deregulation is based on that competence always means efficiency, and deregulation is not unregulation. However, for the telecommunication industry intrinsic technology and economic characteristic, although the weakness of its natural monopoly characteristic, it is thought that we cannot abandon regulation. In fact the key problem of deregulation is introducing competence into the traditional natural monopoly industry, but how to, which sector can be introduced and if deregulation can deal with the shortcoming before deregulating are still questioned. And these problems mean the competence in telecommunication is different with classic perfect competence, and economists introduce efficient competence into analysis and pursue the resolution. In essentially, telecommunication regulation is a game process. Just as the object function belonging to the players are different and the information is asymmetric, the classic regulation pricing cannot provide the regulated enough incentive to improve their performance.Based on the principles of efficient competence, this dissertation analyses the market structure, conduct and performance of telecommunication industry in china before or after 2001, when in 2001 the china telecom was decoupled, and more in details about the relationship of regulation pricing, telecommunication tariff policy and efficient competence. The whole paper is divided into seven parts. In part 1, the theory about regulation, deregulation and efficient competence are described and analyzed the theory reason of these schemes, and in this part provides the theory basement for the whole dissertation. In part 2, regulation-pricing shemes in the telecommunication industry are analyzed and in part 3, the developed countries' experiences are analyzed from the relationship between regulation and telecommunication tariff policy. In part 4, the processes about Chinese telecommunication reform and existing problems are analyzed. In part 5, based the s-c-p model, the performance of telecommunication market in china is analyzed andI think the reform of china telecommunication cannot be thought be successful and need further reforming. In part 6, according to some problems in pricing in telecommunication, some practical resolution are provided and the mechanism of price menu is analyzed. At last, in part 7, the whole dissertation is summarized.