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LEE & LI Bulletin - August 2019

The new era of the telecom industry: discussing the opportunities and challenges after the Telecommunication Management Act passed The current Telecommunications Act ("Old Law") was promulgated in 1958. Due to Taiwan’s accession to the WTO in the 1990s, the original regulatory framework was thoroughly reviewed and changed. A series of new mechanisms which were conducive to fair market competition were introduced, such as separate accounting systems for telecom operators, network interconnections, and special obligations for dominant market players. However, the reform of the regulatory framework became relatively slow after 2002, and many out-of-date restrictions still existed (for example, various communication software may, without approval, provide the same voice or video services like telecom operators could provide before). In order to encourage market entry, to promote innovative services and to ensure fair competition, the Legislative Yuan passed the Telecommunications Management Act ("New Law") on May 31, 2019. The New Law does not require telecom operators to apply for registration and adopts a "behavioral management" model instead. Nevertheless, it is worth noting that the Old Law will remain in effect for three years after the New Law take effect. Therefore, this article analyzes the differences between the New Law and the Old Law so that telecom operators may make their own decision on whether to register under the New Law or not.....More