A Study On The Coordination Mechanism Between Regulatory Agencies And Antitrust Agencies In China’s Telecommunication Industry

The benign development of the telecommunication industry depends on thespecification and supervision of the regulatory agencies, and also on the antitrustagencies to maintain the market competition order. The two types of institutions in actualenforcement, however, are prone to conflict. On the one hand, the regulatory agenciesmust control the number of enterprises and make strict market access and businessstandards, to ensure the scale economy of the telecommunication industry and protect thesafety of the telecommunication market; antitrust agencies are responsible formaintaining the normal competitive market order, reducing stifle competition behaviorsas many as possible. On the other hand, the laws and responsibilities of China’sregulatory agencies and antitrust agencies are not clear in addressing the problem ofcompetition in the telecommunication industry, which makes the conflicts even morebetween the two types of institutions. If there is no effective coordination mechanism, thecontradictions between the two types of institutions will continue to highlight under thecondition of faultiness of institution construction and the imperfect laws. In view of theabove reasons, this paper studies the coordination of China’s regulatory agencies andantitrust agencies in telecommunication industry, in order to establish a perfect thecoordination mechanism, and to improve the overall efficiency of two types ofinstitutions, which will promote the mercerization reform and government function shift.Specifically, this article firstly summary the economic characteristics of thetelecommunication industry, relevant theories of regulation and antitrust, and the scholarsviews of the enforcement priorities between industry regulations and the anti-monopolylaw. Secondly, analysis the configuration of agencies’ power in the present situation andthe conflicts and further explores the institutional causes of their conflicts. At the sametime, combined with China’s telecommunications industry development present situation,this article compares and chooses the different configuration mode of two types ofinstitutions. On this basis, the article consults Cooper-John coordination game model,builds a coordination game model of two types of institutions, describes the effectingstrategies of strategic complementarities, and analyzes the causes of coordination failureand its improvement methods, and eventually concludes the strategies to strengthen the dynamic mechanism of strategic complementary. Thirdly, in view of the agencies’conflicts and the results of the coordination game analysis, the article puts forward thepolicy ideas of coordination between two types of agencies. There are mainly fouraspects: perfecting the legal system; Clearing positioning function of two classes ofinstitutions; Establishing a incentive system of coordination between the two kinds ofinstitutional; Forming the mechanism of information communication and mutualsupervision.This article may be innovative in the following several aspects:1. Analyzing configuration mode of two types of agencies based on a newperspective of industrial operation efficiency. To compare and choose the configurationmode, this article is not only based on the perspective of industry development andpolicy orientation, but also on the perspective of efficiency improvement in the light ofthe simple empirical analysis of current efficiency of telecommunication enterprise tocarry on, which enriches the research methods and research contents.2. Applying coordination game theory to the discussion of the coordinationbetween two types of agencies. Past researches on the coordination of regulatoryagencies and the antitrust agencies design polices most based on cases and experienceanalysis, this article will be put forward to the policies based on the result of gameanalysis to make the conclusion more persuasive and applied. At the same time,according to the situation of conflicts and Cooper–John coordination game model, thearticle builds a new coordination game model of two types of institutions, and introducesthe concept of strategy complementarities to explore China’s telecommunication industrycoordination mechanism of two types of agencies.3. The multi-view coordination mechanism of two types of agencies ispreliminarily put forward. Past researches only present relatively one-sided singlecoordination measures and never raise the comprehensive reasonable Suggestions basedon overall coordination process. In this article, a series of more targeted and feasiblemeasures to coordinate agencies are put forward clearly from different perspectives,which can help to realize the harmonious operation of two types of institutions andreduce the overall efficiency loss.