NCC defends tariff cuts

14 Jan 2010

Taiwan’s National Communications Commission (NCC) has condemned industry group the Taiwan Telecommunication Industry Development Association (TTIDA) for claiming that the regulator had failed to discuss proposed tariff reductions with operators before passing legislation, the Taipei Times reports. As reported by CommsUpdate on 7 January, the NCC ordered telcos to reduce mobile tariffs by 5.87% from 1 April 2010, ADSL services will be subject to a 5.68% reduction, or face fines of up to TWD5 million (USD157,000). To refute the TTIDA’s claim that this framework was developed without consulting industry members the NCC argued that it had gathered feedback from operators between 5 November and 19 November 2009, meeting the country’s three major telcos, Chunghwa, Taiwan Mobile and Far EasTone Communications, on 13 November. NCC spokesperson Chen Jeng-chang said: ‘At that meeting, they proposed submitting plans to reward consumers. We told them that we would not force them to accept the new coefficients if we accepted their plans and if we did not accept their plans, we would stipulate new adjustment coefficients. Their plans, however, were not accepted.’ Chen added that the NCC is gearing toward regulating wholesale rates rather than retail rates and that providers could appeal the case to the Executive Yuan if necessary. Chen said: ‘We respect the opinions of telecom providers. What we do not appreciate is that the TTIDA used twisted facts to mislead consumers.’ TTIDA spokesperson Liu Li chau, said that association members would turn in their new service plans as scheduled and that they also sought to communicate with NCC officials, before adding: ‘We want to ask if it is a one-way or two-way communication.’