The Regulation and Administrative Monopoly in Natural Monopolies——Take China′s Telecom Industry as an Example

Natural monopoly always contains some administrative monopoly.The Anti-monopoly Law gives the exemption to natural monopoly,but gives more limitation to administrative monopoly.So distinguishing administrative monopoly from natural monopoly is very important.It is considered that improper entry and price regulation is the main cause of the administrative monopoly in the natural monopoly.The administrative monopoly causes more state-owned enterprises and higher concentration ratio.It also causes the transform from the real profits to the income of workers and a huge efficiency loss.So some reform is needed.