With the development of reforms in network industries such as telecommunications and electricity in China, interconnection becomes a serious issue. This paper introduces the interconnection regulation practice of vertical network industries in foreign countries and the relevant access pricing methods, and then analyses the interconnection problems that baffled the telecom regulator in China. The main results of this paper are as follows: access pricing is the foundation for efficient interconnection and it should be designed solely for this purpose; the low-level access price is the main reason for inefficient interconnection; at present, access pricing based on long-run incremental cost should be adopted for the interconnection in China telecommunication industry, and long-run incremental cost method should be adopted as the main cost computation method, while the fully distributed cost method can be used temporarily as a transition measure.