Discussion on Governmental Regulation on China's Telecommunications viewed from the Dynamic Natural Monopoly

Natural monopoly is a special industry, for the reasons of subadditivity of the costs, i.e., resulting in monopoly prices decided by enterprise. For reducing the costs of consumers, the government has to regulate the natural monopoly industries. However, for the changes in technologies and requiring, this kind of monopoly doesn't exist for a long time, and the governmental regulation should be adjusted correspondingly. The dynamic natural monopoly notifies the changing process of the governmental regulation on China's telecommunications.