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Chunghwa may be forced to share network assets

19 Mar 2012
00:00
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The head of Taiwan's telecom regulator has suggested asymmetrical regulation as a means of addressing complaints about Chunghwa Telecom's service quality and pricing.

Su Herng, chairwoman of the National Communications Commission (NCC), has recommended that the nation's Telecommunications Act should be amended to allow for asymmetrical treatment, Taipei Times said.

Such an amendment would be aimed at ensuring that no operator has an unfair advantage over its rivals.


It would require Chunghwa to share the use of its network with smaller rivals, in a bid to negate the historical advantage the company has long had.

Chunghwa was established in 1996 as part of China's privatization assets. Prior to this, it had operated as a business unit of the Directorate General of Telecommunications. Due to this history, the company owns network assets built using taxpayers' money.

Chunghwa's pricing and network quality have been in the spotlight for weeks, with a government minister taking up alleged claims from Chunghwa customers that monthly fees are too high, while broadband speed is unacceptably slow.


Regulators appear concerned that Chunghwa's market advantages gives it less incentive to compete on price or network quality.

While Chunghwa is a private company, around 30% of its shares are owned by the Ministry of Transportation and Communications.

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