China Mobile Plans to Acquire 12% Stake in Taiwanese Operator

June 2009

Representatives of China and Taiwan have signed a declaration which, among other things, opens the doors to Chinese investment in Taiwan. Just three days later, Far EasTone Telecommunications Limited announced its plans for a strategic cooperation agreement and a share subscription agreement with China Mobile Limited, the world's largest mobile telecommunications operator.

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Congress Agrees Bill on Base Station Control Measures

May 2009

If a proposed bill to amend the Telecommunications Act is passed in the forthcoming general assembly meeting, not only will existing second and third-generation operators be threatened with the removal of their base stations, but the would-be operators of Worldwide Interoperability for Microwave Access will be left with nowhere to construct their base stations.

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Mobile Telecommunication Firms Ordered to Float Shares

May 2009

The National Communications Commission has approved the Procedure on Public Offerings of Mobile Operators. Mobile operators (including third-generation mobile operators) and 1900 megahertz digital low-tier cordless telephone operators are required to comply with certain measures in order to allow for the supervision of their financial management.

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Telecom Giants Ordered to Cut Prices for Third Consecutive Year

May 2009

For the third consecutive year the three largest mobile network companies in Taiwan have been ordered to cut the rates charged on the most expensive second-generation (2G) mobile network calls, local calls to 2G mobile networks and calls made using prepaid cards. These cuts amount to an overall price decrease of almost 15%, and have been widely criticized by players in the industry.

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NCC Sets Out New Policy Goals

April 2009

Since the new National Communications Commission was formed in August 2008, the seven newly elected commissioners have attempted to complete the tasks left unfinished by the previous commissioners, while also setting out new policy goals. The commision has published its Middle-Term Policy Plan for 2009 to 2012, so as to distinguish it from the first-term policy plan established by the predecessors in 2006.

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NCC to Arbitrate on Dispute over Internet Protocol Peering Fees

April 2009

Taiwan Mobile has refused to pay Internet Protocol (IP) peering fees to Chunghwa Telecom, Taiwan's largest internet service provider, arguing that IP peering between providers should be free. It has filed a claim with the National Communications Commission under Article 28 of the Regulations on Network Interconnection among Telecommunications Enterprises, requesting the commission's arbitration.

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New Universal Service Scheme Raises Concerns for Chunghwa Telecom

February 2009

The National Communications Commission has proposed an amendment to the Regulations Governing the Telecommunications Universal Service which would facilitate the use of universal service funds and empower the regulator to choose the remote villages in need of broadband network infrastructure under the universal service regime.

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WiMAX Rules Revised to Include Content Control

January 2009

The National Communications Commission has proposed amendments to the Regulations on Wireless Broadband Access Services. Among other things, the amendments define the terms 'multimedia services' and 'content of channel' and oblige worldwide interoperability for microwave access operators to obtain approvals or licences under broadcasting laws before offering content through multimedia services.

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New Rules adopted on Takeover of M-Taiwan Project Base Stations

December 2008

In order to allow the Mobile Taiwan National Project to utilize its experimental equipment and base stations, the National Communications Commission has approved amendments to the regulations governing wireless broadband access service. These pave the way for the use of experimental base stations for commercial purposes.

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National Communications Commission Proposes Amendments to Organization Act

December 2008

The National Communications Commission recently reviewed the Organization Act and proposed several changes in order to bring it into line with the demands of independent regulation. These changes include a relaxation of the qualification thresholds for entry into the commission and amendments to the scope of each commissioner's role.

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Ban on Investing in New WiMAX Operator to be Lifted

November 2008

The Appeal Committee of the National Communications Commission (NCC) recently revoked a ban on Chunghwa Telecom acquiring shares in a new worldwide interoperability for microwave access operator imposed by the previous NCC commissioners. This is the first case in which a resolution made by previous commissioners has been dismissed.

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Fourth-Generation Technology at a Crossroads: WiMAX or LTE?

September 2008

Taiwan's three dominant mobile operators have confirmed plans to incorporate Long-Term Evolution into their second-generation and third-generation systems. However, the government and network-equipment manufacturers still seem positive about the prospects for the Worldwide Interoperability for Microwave Access industry. There is thus uncertainty as to which technology will ultimately prevail.

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NCC Bans WiMAX Business Spin-Off

August 2008

The National Communications Commission has rejected an application by First International Telecom, one of the six WiMAX licence holders and the only personal handy-phone system operator in Taiwan, to spin off its WiMAX business from its personal handy-phone system operation to its wholly owned subsidiary.

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New NCC Commissioners Appointed

July 2008

The Legislative Yuan recently approved the nominations for the next term commissioners of the National Communications Commission (NCC). Although some critical issues regarding the NCC Organization Act were resolved in 2007, several problematic issues concerning the organization and functions of the NCC remain to be dealt with. Therefore, the NCC has published proposed amendments to the act.

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M-Taiwan Project WiMAX Base Stations to be Commercialized

July 2008

To facilitate the network deployment of Worldwide Interoperability for Microwave Access (WiMAX), the National Communications Commission is currently amending the Regulations on Wireless Broadband Access Services in order to allow WiMAX licensees to obtain the experimental base stations that are part of the Mobile Taiwan National Project.

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Three Companies Appointed to Provide Universal Data Services

June 2008

Following the completion of its 2007 Broadband Access to Every Village project, the National Communications Commission (NCC) is aiming to extend the construction of the broadband network infrastructure to further remote areas in 2008. The NCC has appointed three companies to offer universal data services for broadband access to 50 mountain villages in 12 different counties.

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No ITS Pricing Rights for Chunghwa Telecom until 2010

May 2008

Although the Internet Telephony Service (ITS) was opened up to operators in 2005, to date no licensed ITS providers have launched their services due to ongoing negotiations of network interconnection agreements with Chunghwa Telecom. In order to introduce competition into the market, the National Communications Commission has ruled that Chunghwa will have no pricing rights on the ITS until the end of 2010.

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Price-Cutting Policy Enters Second Year

May 2008

Taiwan's mobile operators are required to reduce certain primary tariff plans by at least 4.88% each year under a three-year mandatory price-cutting plan. The National Communications Commission recently approved the cuts for mobile services and asymmetric digital subscriber line services for 2008. Ostensibly designed to benefit consumers directly, the policy's real intention seems to be to stimulate competition.

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Detailed Separate Accounting to Be Implemented

March 2008

In order to comply with the adjustment of the value of the Production Efficiency Index in the price cap formula, the National Communications Commission is to implement a new accounting rule providing for detailed separate accounting for the telecommunications industry. The rule will be applied retroactively to cover financial statements and other reporting materials from 2006 onwards.

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Congress Amends the Formation of National Communications Commission

February 2008

After mutual concessions by the ruling and opposition parties, the Taiwanese Congress (the Legislative Yuan) passed the Amendment to Article 4 of the National Communications Commission (NCC) Organization Act on December 20 2007. The amendment, which became effective from January 9 2008, dramatically changes the formation of the NCC and the manner in which commissioners are nominated.

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NCC Completes Broadband Project in Remote Villages Ahead of Time

January 2008

The National Communications Commission (NCC) has announced its completion of the Broadband Access to Every Village project, which was designed to reduce the digital divide between urban and rural areas, following the NCC's amendment of the Regulations Governing the Telecommunications Universal Service in December 2006 to incorporate broadband internet access within the scope of the universal service.

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Price of Local-to-Mobile Calls to Drop Substantially

January 2008

The National Communications Commission (NCC) has decided to shift the right to determine the price of local-to-mobile calls from the termination side (ie, mobile operators) to the originating side (ie, fixed network operators) from January 1 2011. However, the NCC has also ordered the local phone division of Chunghwa Telecom to reimburse mobile operators for the revenue loss caused by the shift.

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