Telecom industry system is a complex self-organizing system, the basic process of the evolution and development is studied based on hypercycle theory in this study. First of all, the reaction cycle model, the crosscatalytic cycle model and hyper cycle model of the telecom industry system are constructed. Then the hypercycle evolution is analyzed. It’s concluded that: through the cross-catalytic cycle of competing and cooperating among subsystems, the industry’s hypercycle chain is continuously expanded and the telecom industry system shows the evolution and path from disorder to order.