Study On Performance Of Telecommunication Industry In China After The Full-service Reform

Telecommunication industry is natural monopoly industry, in order to break the monopoly telecommunication market has launched four reforms. Telecommunication reform in 2008 of China had pushed Telecommunication industry to become the focus once again. Each reform of the telecommunication industry gives a great contribution to Chinese economy, giving operators and consumers great benefits and enhancing the market performance. In this paper, first to description several major restructuring of the telecommunication industry in a detailed way, Analysis of several reforms and study the effect, focus on the fourth major restructuring. In the course of the study we found that the fourth reorganization makes the market performance of the telecommunication industry has greatly improved, but in recent years the market performance has declined, downward economic environment are inseparable. Saturated by users, the impact speed reduce costs, OTT impact and other factors adversely affect to the telecommunication market, telecommunication market need to find new profit point change the trend of the current slowdown, Therefore, this study will provide a reform direction. Research the changes of the telecommunication industry is significant to enhance the performance of our worldwide strength and important to improve the country’s competitiveness. And relative to other monopoly industries, the telecom industry is more leading reform, the reform on these issues to other monopoly industries also have significance.This paper studies the market structure market behavior and market performance of the telecommunication industry in qualitative and quantitative manner and the SCP theory throughout. Based on the analysis and drawing on previous studies, this paper sets itself indicator system. Taking operators and consumers into account, the index system is from the telecommunication industry, operational efficiency and consumer welfare to analyze Chinese telecom market performance. This paper uses entropy method to calculate the telecommunication industry market performance. It calculates the entropy of each index, and then gives weight to calculate the total score of the market performance. Overcome bias caused by subjective, the use of entropy method can objectively reflect Utility Index. And then it uses the STATA software to test telecom market performance and concludes that the reform of the market optimizes the performance. Finally it puts forward some policy recommendations.This paper mainly studies the market performance after the full-service reform to prove whether the observed effect is good or bad by comparing analysis. Therefore, to study the market performance before and after the full-service reform, this article selects the data from 2003 to 2014. The Data is mainly from the Statistical Yearbook of China’s telecommunication industry, the Ministry of Industry and Information Technology official website data and the major operators of the annual report.