Anti-Competitive Behaviors in Managed Competition: The Case of China’s Telecommunications Industry

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Communications of the Association for Information Systems, Volume 28, No. 1, Article 36 (2011).  Zhong Liu, Senior Fellow, Information Economy Project, Southwestern University of Finance & Economics, Chengdu, China, Jason Whalley, University of Strathclyde, Glasgow, UK.

The Chinese telecommunications industry has attracted considerable interest in recent years. Much of this interest has, however, focused on issues such as the growth of the industry, its structure or how it is regulated. The anticompetitive behavior of incumbents, however, has largely been overlooked. This article addresses this oversight by focusing on the incumbents’ suspected anti-competitive behaviors within the Chinese broadband telecommunications market. In doing so, the key role of the June 2001 Circular in shaping operator behaviors within the broadband telecommunications market is highlighted. From the analysis it is clear that the incentive of anticompetitive behaviors exists in the Chinese broadband market structure that was created through restructuring and June 2001 Circular, and that anti-competitive strategic behaviors of the incumbents are suspected to have occurred. The Chinese government does not have at its disposal, or has not implemented, measures to counter or deter this type of behavior. Article available here http://aisel.aisnet.org/cais/vol28/iss1/36. Contact Zhong Liu: Southwestern University of Finance & Economics, Chengdu, China at zl1969@gmail.com.

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