The Measurement Study Of The Market Power Of China’s Telecommunications Industry

Telecommunications industry, as a basic industry of the country, the level of development is more and more important role in national economic and social development. Great achlevernents have been made in our Chinese telecommunication industry in the recent ten years, but the developing differences among regions has continued to expand. Market power is an important indicator of monopoly level. The measure of market power and differences among telecommunications market, can define the current market structure of the telecommunications industry, and provide a theoretical basis for the future reform of the telecommunications industry in China, and create a healthy market competition environment, narrow the gap among regional economy.On the measurement of market power of telecommunications industry in china, we respectively chose Herfindahl index, Entropy index and the Lerner index as indicators to measure the market power, including the measure of the Province of market forces. The results show that, from2003to2010, telecommunications market structure of china is monopolistic competition, but market concentration did not decline, the level of market competition did not improve, in the overall level, the market powe presented a decline trend in shock.The obvious imbalance development of the telecommunications industry in the country, measure the market power of the31provinces and cities, using k-means clustering to classify31provinces and cities based on the differences of market power, discuss the various differences of market power, and objective comprehensive evaluation. It has important significance to contractible area difference.Finally, study the relationship of market power on the development of the telecommunications industry, and further deepen reform, improve the level of competition on the telecommunications industry in China is of great significance.