The telecommunications industry in China is dominated by three state-run businesses: China Telecom, China Unicom and China Mobile.
a) Identify the market structure that best describes this market and use real examples to describe its key features.
b) As a result of China’s entry to the World Trade Organization (WTO) in 2001, a new regulatory regime is now being established and foreign operators are gradually being allowed to access the market. Using microeconomic theory, discuss how this change would affect the current telecommunications market in China.
Sample Solution