Through econometric model, this paper analyzed empirically the data of China telecom output in 1990-2009, studying the rationality of the price regulation on the development of China telecom. During the research, this paper paid more attention to the specific issues and made conclusions by the econometric analysis and testing. It is concluded that price-capping regulation is an effective measure to promote China telecom industry development, while the effect of relax into control is not significant.
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