COURSE: TELECOMMUNICATION ECONOMICS PROFESSOR: WUHONG School of Economics and Management BUPT Economics Research Center (MING GUANG 504) Tel:

Chapter 2 telecommunication industry economic characteristics and the status in economy Section 1 nature of telecommunication industry Section 2 telecommunication industry economic characteristics Section 3 telecommunication industry and society information

Section 1 nature of telecommunication industry Development of industry division theory Information industry contents Definition of telecommunication industry Nature of telecommunication industry

1. Development of industry division theory industry—a set between macro and microscopic Industry division is a method to analysis economic running. method contributes to objective, if objective is different, division should be different. Quesnay: in 1758 Marks :two categories theory—production and consumer product produce material or not—telecommunication just for what? devise industry to three—telecommunication just for what? devise industry to four—telecommunication just for what?

New provisions for divise industry to three 2003/5/14 state statistical bureau issued notice about The first industries are agriculture, forestry, livestock, fishery. The second industries are mining industry, manufacturing, power, gas and water production, supply industry and construction The third industries are the others.

Contents of the third industry The third industries include: transport, warehousing and post, information transmission, computer service and software, wholesale and retail, lodging and food, financial, real estate, renting and business services, scientific research,technical services, geological prospecting, water management, environment management and public facilities management, residents services and other services, education, health, social security and social welfare, culture, sports and entertainment, public management and social organizations, international organizations.

2.Information industry contents in division to four Makeleipu raised about knowledge industry and information services. Knowledge industry is a agency that to use it for yourself or others to produce knowledge, do information service or produce information — manufactures, units, organizations and departments or team in it, sometimes it would be personality or family. Knowledge industry include five parts: education, research, telecommunication media, information equipment and information service. In 1977 America department of commerce granted Mark Bolate to publish nine research reports,raised knowledge industry, and it was to be his own unique division system.

Standard to recognition According to various economical activities and information transformated, it assured to the relativity. Porat devise information department to the first department and the second department. The first department refers to directly provide information product and service. The second department refers to provide internal consumption for information labor and capital, not to enter market.

the first information the first information department department Knowledge production and with nature of invention industry Information distribution and telecommunication industry Risk management industry like Financial and insurance. Market survey and coordination industry Information handling and transmission industry Information manufacturing industry Government public industry like Post, education. infrastructure Government public department Civil management department

The first department refers to directly provide information product and service. Include: computer manufacturing, telecom, printing, media, advertising, accounting, education and so on. The second department refers to majority of government public department that information production is used for themselves and management department in all private enterprises. This is because in government department and enterprises, there are production and consumption of information labor, information product and service. There are no different with the first department, but the activities with economical value, through non-commercialization but market exchange. It comes true through distribution.

Research about information industry domestic Generalized prospective: information industry refers to all about information production, circulation and utility, including information service and technology, but also including science, education, publication, news, advertisement, financial and so on. Narrow prospective: information industry refers to information technology research, development and application, manufacturing for information equipments and components, comprehensive production activity and infrastructure to provide information service for economical development and public desire. In China, electronic information industry have four parts: electronic information equipment manufacturing, software, telecommunication and information transmission industry, information contents service industry.

THAT’S ALL! THANK YOU!!