MIXED REACTIONS:
Taiwan Cell complained in regards to the timeline for integration with Taiwan Star, whereas Far EasTone thanked the NCC for giving it the inexperienced gentle
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By Shelley Shan / Workers reporter
The Nationwide Communications Fee (NCC) yesterday permitted mergers between Taiwan Cell and Taiwan Star, and between Far EasTone Telecommunications and Asia Pacific Telecom (APT) after a virtually one-year assessment, offered Taiwan Cell and Far EasTone get rid of extra bandwidth acquired by means of the mergers by the top of June subsequent yr.
The mergers nonetheless should be permitted by the Truthful Commerce Fee, the NCC stated.
Taiwan Cell and Far EasTone should additionally full administrative procedures on the Ministry of Digital Affairs, the Securities and Futures Bureau and the Ministry of Financial Affairs, it added.
Following its merger with Taiwan Star, Taiwan Cell would personal 60 megahertz (MHz) of bandwidth at frequency bands under 1 gigahertz (GHz), which exceeds one-third — or 50MHz — of the whole auctioned spectrum of 150MHz.
Rules require the telecom to get rid of the additional 10MHz of bandwidth.
Following its merger with APT, Far EasTone would accumulate extra bandwidth of 13MHz at frequency bands under 3GHz, extra of 3MHz between the 3GHz and 6GHz bands, and extra of 160MHz at bands above 24GHz, the NCC stated.
Taiwan Cell and Far EasTone can voluntarily return the surplus bandwidth to the federal government, or switch it to or trade it with telecoms that aren’t its subsidiaries, associates and enterprise companions, the fee stated.
Telecoms that fail to get rid of extra bandwidth and use it illegally could fined between NT$500,000 and NT$5 million (US$16,484 to US$164,837), the NCC stated.
Taiwan Cell and Far EasTone have agreed to the opposite circumstances set by the fee for the mergers, NCC Deputy Chairman Wong Po-tsung (翁柏宗) stated.
By 2027, the 2 telecoms should elevate their 4G protection charge to 99 % and 5G protection charge to 98 %, Wong stated, including that their 5G protection charge in rural areas should be raised to 95 %.
Each are dedicated to spending a complete of NT$60 billion over the following 4 years to construct community infrastructure utilizing the elevated bandwidth, he stated.
Far EasTone would obtain 2.07 million APT service subscribers by means of the merger, whereas Taiwan Cell would obtain 2.69 million Taiwan Star service subscribers, Wong stated.
“Far EasTone and Taiwan Cell have pledged that current APT and Taiwan Star subscribers can proceed accessing telecom companies primarily based on contracts they signed with their respective carriers till Dec. 31 subsequent yr. Altering SIM playing cards is not going to be needed,” Wong stated.
“Taiwan Star in 2019 provided some prospects limitless 4G companies for less than NT$199 per thirty days, which is legitimate all through their lives. They are going to proceed to entry the 4G companies on the low month-to-month payment till the 4G license expires in 2033,” he stated.
Taiwan Cell and Far EasTone should supply companies to Taiwan Star and APT subscribers indiscriminately, Wong stated.
“They have to proceed offering numerous service plans to subscribers, notably customers who’re economically deprived, bodily challenged or from medium to low-income households,” he stated.
The 2 telecoms should attempt to attenuate the digital divide by putting in extra base stations in rural areas, Wong stated.
“We additionally hope that Taiwan Cell and Far EasTone could be extra clear by way of their median gross sales costs and pricing methods to assist draw extra service suppliers into the market,” he stated. “They need to develop the vertical functions of 5G by utilizing the know-how to construct personal networks for companies.”
The 2 telecoms are dedicated to saving a complete of 1.6 million kilowatt-hours of electrical energy yearly following the mergers, and spending NT$3.2 billion on digital inclusion initiatives over the following 4 years, Wong stated.
Taiwan Cell stated that the fee’s ruling is “regrettable,” because it can’t probably combine networks with Taiwan Star in 18 months.
“This exhibits that present laws can’t handle challenges within the new period after the mergers of telecoms. We’ll let our board of administrators resolve what to do subsequent,” the telecom stated.
Far EasTone thanked NCC commissioners for approving its merger with APT.
“We respect the NCC’s ruling, and can submit an software for a merger with the Truthful Commerce Fee,” Far EasTone stated.
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