China’s Telecom Industry Effective Competition And Theory Analysis:Based On Network Externalities

The China telecoms industry has been a hot spot in the study of academic circles in recent years mainly because of the past several industry reforms, which made the telecoms industry’s competition pattern preliminarily form. What is more, telecoms carriers consecutively listed,which provide the academic research with a corresponding data support. The past several industry reforms make China’s telecom enterprises play an important role in national economic development and people’s daily life. The revenue of telecoms industry also advances by leaps and bounds,increasing about dozens of times in the past twenty years. The reforming process of telecoms industry has been constantly removing monopoly and introducing competition process. Competition produces prosperity. With the process of marketization, people pay more attention to the degree of telecoms industry’s marketization. Has China telecoms market achieved effective competition? Where should the telecommunications industry go?Born in the mid of1980s, network economics have become increasingly mature after decades’ development in theory. The researches in telecoms industry are also numerous. This thesis considering of Ralph model, using network externality theory and combining with the actual Chinese telecommunications industry, gives suggestions to China telecom industry about reforming. The situation of China telecoms industry competition will be evaluated, also, recommendations in the policy will be put forward by my own combined with China telecom market’s problems.First of all, this paper focuses on the telecommunications’competition, and review the current theory about industry effective competition. Then, it chooses SCP analysis paradigm to analyze China’s telecoms industry, especially its present situation. Finally, using the network externality theory of network economics,it puts forward reasonable suggestions for China telecoms industry to establish an effective competition pattern. In the implementation of SCP model analysis process,the current Chinese telecommunications industry will be divided into three parts:Fixed telephone business market, Mobile communications market and Internet broadband access market. Although other operators exist in the current Internet access market besides telecom carriers, the telecommunications carriers play a dominant role in China’s Internet access market. So this paper will still choose Internet access as a single part to analyze and summarize. In the process of writing,Rohlfs model is mainly applicated and combined with China’s actual deployment research, and three operators will be expanded by social welfare evaluation to arrive in a conclusion.