Research on the measurement of the price change of telecom services in China

It is difficult to measure the total change of the telecom service price (TSP) in China due to the complexity of TSP and the diversity of telecom service. This article analyzes the relation between telecom service revenue and traffic volumes of telecom service and deduces the method of measuring the total change in tendency of telecom price, which is based on the consumer's actual payment for telecom services. After describing the changing trend of TSP with the time series data from 1949 to 2000, the TSP showed a continuous declining tendency during 1949∼1975. In contrast, the TSP showed a rising tendency from 1976 to 1991 and a sharp declining trend after 1992. Empirical tests and actual background of telecom reform support the results.