Abstract:

Price regulation of natural monopoly industry has been the focus of theoretical research from home and abroad for a long timeIts purpose is to care about both effectiveness and fairness, that is, price regulation should not only promote the industrial development but also guarantee the maximum benefits of consumersBased on the analysis of highest price regulation model, and the mature price regulation experience in British Telecom, this paper analyzes the pricecap regulation in China from the perspective of dynamic adjustmentThen reasonable price regulation cycle calculation model is built to guide the policymaking by telecom regulation departments in the future

Key words: telecommunication in China, price cap regulation, regulation cycle, British Telecom