Measurement Of Natural Monopoly In Internet Service Of China

In November 2013,CPC Central Committee 's decision on reform of major issues pointed out that we should reform the natural monopoly industry.According to the different characteristics of the industry,we should try to make the network and operation separately and make it more competive.Natural monopoly industry face to the market means that allow foreign companies to enter.But basic telecommunications industry is supposed to natural monopoly and not all business suit to competition.Because basic telecommunications is considered as a natural monopoly industry,so it is not suitable for excessive competition.Basic telecommunications whether open and how to open up that has become an important social issue.The upgrading technology and growing social demand change the boundaries of natural monopoly.Telecommunications industry need to promote competition,improve economic efficiency.Many theories are lacked of the quantitative judgment of the natural monopoly industry.Quantified natural monopoly judgment standard is applied to the railway,electric power and other industries with a natural monopoly.At present,it is very important to use the subadditive test to determine whether telecommunication in China is natural monopoly.To judge the Internet service in our country whether is natural monopoly should be based on the cost function.This paper will be based on the three major telecom operators 2008-2014 semiannual data,using of similar unrelated regression method,estimating two elements,two of the product beyond the cost function.Base on the cost function of the regression function,the results show that it does not the natural monopoly,and the competition will be advantageous to the economic efficiency;Base on the main conclusions of the Internet service in China,and put forward the relevant policy recommendations.Making network and operating separation,operators gradually withdraw from the network construction.Making the private capital,foreign capital to enter the Internet service,strengthening competition,improving service quality.