Abstract: At present, due to the imbalance of the market structure, a restructure for the telecommunication industry is attracting attention once again. For making effective policy it is helpful to learn from historical experience. Based on the analysis on market performance of twice restructure in Chinese telecommunication industry, particularly the China Telecom’s North-South Split in 2002, the paper points out that the market structure which seemed to be balance through the restructure was broken soon by the dynamic technological progress and demand development. It reveals that it is necessary to establish a suitable regulatory institution and mechanism of policy-making based on dynamic technological progress and development of demand for forming effective competition and promoting economical and sustainable development of telecommunication industry.

Key words: telecomsplit, telecomrestructure, regulation, policy-making, marketperformance