Market performance of Chinese telecommunications: new regulatory policies

The structure, conduct, and performance of Chinese telecommunications are analyzed to determine reform's impact on policy objectives. Recent performance suggests that a more comprehensive reform is needed. However, China's fragmented policy environment makes large-scale reform difficult. Further deregulation of the telecommunication industry requires several related initiatives: reduction of entry barriers, creation of a universal service fund (to defuse stakeholder concerns regarding access), and formation of a cross-sector antitrust regulatory agency (with a special interest 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.