The Research On Monopoly And Regulation Of Telecom Industry

Natural monopoly industry is related to the development of national economy, and so is the people of daily life. We will use gas, electricity and water every day, we could travel by various traffic tools, we can contact our friends use mobile phones and calls so on. How to effectively regulate natural monopoly industry is very important. This paper choose telecom industry for represent. First, As the traditional monopoly industry, of course telecom industry have a very strong natural monopoly properties, such as local telephone business; At the same time, the telecom industry belongs to the highly technical industry, with the development of economy and the progress of technology, highly technical industry, with the development of economy and technolo gy progress, there are manyfields can introduce competition "weak natural monopoly" link, such as the mobile communications business. The strength of the internal teleco mmunications industry for introducing competition and classification strengthen contr ol provides the basis, the strong natural monopoly link adopts strengthen control way, weak natural monopoly link adopts deregulation and introduce a competitive way.The classification is based on the scale economy theory, cost sub additivity and network economic theory. The scale economy means the yield is lager, average cost is lower. cost sub additivity refers to all product costs of a enterprise is lower than these product costs produced by a number of enterprises. Netwok economy refers to that the natural monopoly industry services and products through the transmission network is provided to the terminal users. According to these theory, Telecom long-distance and local telephone are divided into strong natural monopoly, because their economy scale effect is obvious, the dependence of the network is very strong, and the marginal cost is always located below the average cost. On the contrary, mobile and value-added business belongs to the weak link. the development of our telecom industry and existing problems. For example, it is lacked industry legislation, property rights system is not reasonable, weak natural monopoly parts are lacked of competition, there are interconnected obstacles and controlled chaos in telecom market. At the base of analysis the experience about telecom reform in America, Britain and New Zealand. The author gives the suggestions on how to perfect our telecom regulation, especially introducing competition to the mobile business and value-added business, in addition to the strengthen domestic long distance and fixed network business call regulation.