Taiwan's National Communications Commission (NCC) on November 8 finalized its plan to lower the required minimum paid-in capital for existing operators of fixed-line telecommunications and that of future operators in an aim to further liberalize the telecom market in Taiwan, according to the NCC.
The reduction of minimum paid-in capital applies to telecom operators under four types of fixed-line telecommunication licenses: general (can operate all kinds of services); local voice communications only; domestic long-distance voice communications only; international voice communications only; and leased submarine cables.
The plan will be matched with new regulations and the two together may come into effect in early 2008, the NCC indicated.
Chunghwa Telecom, Taiwan Fixed Network, New Century InfoComm Tech (Sparq) and Asia Pacific Telecom, the four existing general licensees, will benefit from the plan by being able to downsize their paid-in capital and then appropriate the funds for other purposes or return the funds to shareholders, the NCC pointed out. The plan will also help existing MSO (multi-system operators of cable TV) step into operation of local voice communication service, the NCC noted.
|
NCC's final plan to lower required minimum paid-in capital |
|
Type of licensee |
Operator |
Current threshold paid-in capital (NT$b) |
New threshold paid-in capital (NT$b) |
|
General |
Four existing operators |
40.0 |
21.0 |
|
Future operators |
16.0 |
6.4 |
|
Local voice communications |
Three existing operators |
12.0 x W* |
6.3 x W* |
|
Future operators |
12.0 x W* |
4.8 x W* |
|
Domestic long-distance or international voice communications |
One existing operator |
2.0 |
1.05 |
|
Future operators |
2.0 |
0.8 |
|
Leased submarine cables |
Four existing operators |
0.8 |
0.42 |
|
Future operators |
0.8 |
0.32 |
* W is the weight calculated as the proportion of the current Taiwan population for the subject service area
Source: NCC, compiled by Digitimes, November 2007