| Abstract | Dramatically driven by both fast evolving market structure and the pro-competition policy, the Ministry of Posts and Telecommunications (MPT), a leading price setter and regulator for all kinds of telecom services in China for decades, has began to reform the unchanging and monopolistic telecom service tariffs since 1980. As a top national regulatory entity empowered by the State Council, the MPT has been trying to institutionally change its traditional pricing system which has proved to be inefficient to allocate the growing but still limited telecom financial resources. The too-high telecom service tariffs set within the monopolistic structure turned out to block the growth of market demand. Technologically and economically speaking, it also loses sight of the long-term goals of China's telecom development. |
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