Monopoly Of The Telecom Industry In Our Country:Reasons, Influence And Countermeasures

In the process of establishing and perfecting of socialist market economy in our country, monopoly problem has attracted widespread attention from all walks of life and become one of the frontier of contemporary economics research and the focus of the reform of political system and economic system reform in China. There are many causes of monopoly and the cause of forming of monopoly of the basic economic characteristics of industry, it is also called natural monopoly, is the root cause of monopoly formation. And the industry administrative monopoly is the product of planned economy and occurs mostly in like the infrastructure sector. The consequences of the administrative monopoly is the low efficiency, poor service, lack of competitive, even restrict the development and application of new technology.The telecommunications industry is an important part of national economy in our country. It is widely believed that the telecom industry is a traditional natural monopoly industry because of its Fixed network system, huge sunk costs, universal service and other characteristics. But in our country, the telecom industry has been under the strict control of the government with the obvious color of administrative monopoly. The telecoms industry’s ethos of administrative monopoly caused many adverse effects, and restricts the healthy development of the telecommunications industry.This paper USES the analysis method of combining theory and practice of monopoly in the telecommunications industry as the research object, on the basis of the monopoly of the western economics theory, combining with the development of China’s telecom industry reform, analyses the problems of the telecom industry monopoly, analyzes the telecommunications industry in our country the causes of the formation of natural monopoly and administrative monopoly, and the consequences of administrative monopoly. Finally put forward to the suggestions of breaking the monopoly of telecom industry in our countr.This paper has five parts:introduction, monopoly theory review, the present situation of the telecommunications industry, telecommunications industry causes and consequences of monopoly and the countermeasures to break the monopoly industry.The first chapter, introduction. This chapter introduces the research background and research purposes of the telecom industry, overall thinking and specific method of use to make the readers understand the necessity and urgency of the telecom industry and have a clear understanding of the overall structure of this paper.The second chapter, the relevant theory. In this chapter, monopoly theory of western economics will be expound in detail, which including the monopoly theories including the concept of monopoly, the effect of monopoly and monopoly price, and many other aspects of leading economists of classical economics period, new classical economics period and the contemporary economics period. This paper is to make the readers understand the basis theories of monopoly.The third chapter, the present situation of the telecom industry in China will be analyzed, including the development of the telecommunications industry,the review of several reforms and current situation and problems of telecoms monopoly of China. The development of the telecommunications industry in our country will be expound in detail. The telecom industry was exclusive monopoly by ministry of posts and telecommunications firstly, but the telecom industry was not monopoly profits because of the reason such as the technology and so on. In order to change the status quo of exclusive monopoly, National China unicom are allowed to enter the telecomm. And then telecom market is no longer the exclusive monopoly of posts and telecommunications but oligopoly Constituted by ministry of posts and telecommunications and National China unicom. As people’s demand for telecom growing once more, countries decided to implement a spin-off of telecoms, split into China telecom and China mobile, and then China’s telecom market has only just begun introducing competition mechanism.The fourth chapter, the causes including natural monopoly and administrative monopoly and effects of monopoly will be analyzed in this chapter. The natural monopoly industries such as electric power, telecommunications, railway has some common features which are the causes of the formation of natural monopoly, such as fixed network system, huge sunk costs, universal service, etc. Because of our country’s basic national conditions and economic characteristics that in the early stages of the development of telecom industry, countries do too much of the telecommunications industry caused the phenomenon of the enterprises. Actually, the country is the telecommunications company’s largest shareholder and this caused the formation of administrative monopoly. The impact of the monopoly in this chapter is mainly for administrative monopoly.The fifth chapter, the countermeasures to break the telecom industry monopoly in our country. Before putting forward the countermeasures, the reform of the British and American telecom are reviewed and the experiences of the reform are sumed up. And then put forward the suggestions on the reform of China telecom according to the experience of the telecom reform of Britain and the United States and the fundamental problems of the telecommunications industry in our country.