telecommunications operators in Taiwan – Chunghwa Telecom, Taiwan Mobile and FarEasTone – will be required to be free of charge by the end of December 2012.
Through the legal amendments the NCC will deprive Chunghwa Telecom of its pricing power for internet protocol (IP) peering in the market through commercial negotiation. In addition to the IP peering fees between Chunghwa Telecom, Taiwan Fixed Network
from Taiwan Mobile and Sparq from FarEasTone – which will be completely free (as decided by the NCC) – the interconnection fees between Chunghwa Telecom and cable operators will be approved by the NCC and reduced by a large margin to encourage access service-providers, including cable operators, to reduce broadband internet-access fees.
Chunghwa Telecom responded immediately and criticised this move as ‘cream skimming’, stating that the NCC had ignored the fact that Chunghwa Telecom is the only operator that continues to make large-scale investments to upgrade broadband network infrastructure. According to the NCC, the newly amended interconnection regulations will also require other operators to invest in infrastructure in order to enjoy free interconnections.
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