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Determination of whether a telecommunications operator has SMP and the NCC’s ex ante asymmetric control measures were discussed by the NCC on December 7, 2022
Determination of whether a telecommunications operator has SMP and the NCC’s ex ante asymmetric control measures were discussed by the NCC on December 7, 2022
According to the Vice Chairperson and spokesperson of the National Communications Commission (“NCC”), the determination of whether a telecommunications operator has significant market power (“SMP”) over the five designated telecommunications service markets and the NCC’s ex ante asymmetric control measures were discussed at the Commission Meeting of the NCC on December 7, 2022. Relevant documents are set to be released by the NCC for public comment on its official website. In addition, the NCC will hold public consultation sessions to collect opinions from various stakeholders; related procedures are expected to be established by April 2023.
After the Telecommunications Management Act (“TMA”) took effect on July 1, 2020, the former Telecommunications Act will be entirely replaced in July 2023. By referencing the European Union’s practice, Articles 27 and 28 of the TMA grant the NCC the power to determine whether a telecommunications operator has SMP. In addition, where necessary, the telecommunications operators identified as having SMP in designated telecommunications service markets may be subject to the NCC’s ex ante asymmetric control measures.
The NCC has designated the following five telecommunications service markets to be subject to ex ante control measures: (i) fixed voice retail, (ii) fixed broadband retail, (iii) fixed wholesale, (iv) fixed voice termination, and (v) mobile voice termination. According to the NCC’s Vice Chairperson and spokesperson, the Commission Meeting on December 7, 2022 determined the telecommunications operators having SMP over the above-mentioned markets as follows.
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Fixed voice retail, Fixed broadband retail, and Fixed broadband wholesale; |
Chunghwa Telecom Co., Ltd. |
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Fixed voice termination |
Chunghwa Telecom Co., Ltd., Taiwan Fixed Network Co., Ltd., New Century Infocomm Tech Co., Ltd. and Asia Pacific Telecom Co., Ltd. |
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Mobile voice termination |
Chunghwa Telecom Co., Ltd., Taiwan Mobile Co., Ltd., Far Eastone Telecommunications Co., Ltd., Taiwan Star Telecom Corporation Limited and Asia Pacific Telecom Co., Ltd. |
The ex ante asymmetric control measures to be imposed on the telecommunications operators having SMP will be further deliberated during public consultation sessions. Said control measures might include an “accounting separation system”, “interconnection”, and “price control”, among others.
The relevant documents regarding the determination of telecommunications operators having SMP over the designated telecommunications service markets and the NCC’s ex ante asymmetric control measures will be released by the NCC soon. If you have any questions about this matter 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.