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NCC to Release Green Paper on Designation of Specific Telecommunications Service Markets
NCC to Release Green Paper on Designation of Specific Telecommunications Service Markets
According to a press release of the National Communications Commission (the "NCC") dated July 21, 2021, the NCC has completed the Green Paper on Specific Telecommunications Service Market (the “Green Paper”) and is set to release such Green Paper for public comment on its official website in order to collect opinions from various stakeholders for a two-week period.
Under the Telecommunications Act, telecommunications markets were delineated and defined based on the nature of the activities conducted on such markets. However, after the Telecommunications Management Act took effect on July 1, 2020, which is set to replace the Telecommunications Act, the NCC has adopted a new approach by referencing the European Union’s practice, which first identifies the service markets that require ex ante regulation, before diving into a competition analysis thereon. Under this new approach, the telecommunications service markets identified as having significant market power are subject to ex ante asymmetric control measures.
To further elaborate, pursuant to Paragraphs 1 and 2, Article 27 of the Telecommunications Management Act, the NCC may, where necessary, adopt control measures for the telecommunications service market identified as having significant market power after conducting a comprehensive assessment that takes into consideration the following factors: (i) the technology and service development level; (ii) the importance thereof in the overall telecommunications service market; (iii) the region or range of competition and the demand or supply substitutability of that service; and (iv) the structure and competition of the telecommunications service market. Based on the Green Paper, the NCC’s preliminary designation of the telecommunications service markets that require ex ante regulation includes the following five service markets: (i) fixed voice retail; (ii) fixed broadband retail; (iii) fixed wholesale; (iv) fixed voice termination; and (v) mobile voice termination.
The Green Paper will be released by the NCC soon. If you have any questions about the Green Paper or wish to learn how your telecommunications business will be impacted thereby, please do not hesitate to contact our Digital, TMT and Data Privacy Practice Group for more information.