Programme distribution for pay cable

An assessment of the 2008 telecommunications restructuring in China

“…As a measure of market concentration, the Herfindal and Hirschman index (HHI 4 ) is very similar to a four-firm and eight-firm concentration ratio (CR4 and CR8 5 ). As Atkin (1992) notes, it is useful to apply both the HHI and the concentration ratio as a multi-dimensional assessment of market diversity. Reflecting the market shares of both the top firms and the composition outside the top firms, the HHI is more sensitive to the number of players in an industry (Atkin, 1992;Atkin, 1994;Gellhorn, Kovacic, & Calkins, 2004).…”

“…As Atkin (1992) notes, it is useful to apply both the HHI and the concentration ratio as a multi-dimensional assessment of market diversity. Reflecting the market shares of both the top firms and the composition outside the top firms, the HHI is more sensitive to the number of players in an industry (Atkin, 1992;Atkin, 1994;Gellhorn, Kovacic, & Calkins, 2004). Given the small number of PTOs in both the mobile and fixed market in China, the HHI gives a better estimate of concentration intensity than the concentration ratio.…”

“…Given the small number of PTOs in both the mobile and fixed market in China, the HHI gives a better estimate of concentration intensity than the concentration ratio. A market with an HHI above 1800 is considered concentrated (Atkin, 1992;Gellhorn et al, 2004). The HHI of China Mobile alone after the merger was 4900, suggesting a highly concentrated mobile market.…”