Deregulation,Subside and Fringe Entry

The concluding of this paper is that the Xiaolingtong(PHS)was the results of demand structure, way of deregulation and the power arrangements of regulatory. With the divestiture, the increment's monopolist was faced hard times, but the asymmetric demand and product structure given it a chance to provide a fringe service with lower price by its rest monopoly power. For the reasons of special relation with the prior monopoly, the regulatory take into this business into his regulation content. This behaviors improvement the competition of China telecommunication industry and increase the consumer's surplus, but challenged the regulation regimes.