Abstract
For Chinese telephony, the new restructuring scheme – designed to boost efficiency and create three full-serviceoperators is completed by the end 2008. This paper studies the regulatory trajectory of the telecommunicationsindustry in China. Different stages of the regulation process with policy intervention and market competition areexamined. The interaction of different players like the Chinese government, incumbent operator, and competitiveoperator is analyzed. In the paper, two general theories of regulation, public interest theory and the economictheory of regulation are firstly introduced. Theses literatures are later used to explain the current regulatoryparticularities of Chinese telephony.
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