Market Performance Of Chinese Telecommunications

The structure, conduct, and performance of Chinese telecommunications are analyzed to determine whether reform has achieved specified policy objectives. Performance to date suggests that a more comprehensive reform is needed. However, the fragmented policy environment of the Chinese institutional framework makes large-scale reform difficult. Further deregulation of the telecommunication industry requires several related initiatives: reduction of entry barriers (to obtain achieve multiple centers of initiative), creation of a universal service fund (to defuse stakeholder concerns regarding access), and formation of a cross-sector antitrust regulatory agency (with a quot;special interestquot; in promoting competition where feasible). While these policies could further complicate decision-making in a fragmented institutional environment, each initiative is directed at neutralizing powerful stakeholders who can block or delay reform at present.