Telecoms: Regulatory reform and digital convergence

Proshare

Wednesday, March 09, 2016 01:30 PM / ILO Telecoms

Taiwanese NCC initiates regulatory reform and digital convergence - Contributed by
Shay & Partners

On December 31 2015, after a long run of ambitious regulatory reform (for further details please see "
NCC invites comment on proposed Communications Convergence Act"), the National Communications Commission (NCC) officially released its legislative proposal on five new laws to replace the existing Telecommunications Act, Terrestrial Radio and Television Act, Cable Television and Radio Act and Satellite Broadcasting Act. All five new draft bills are pending review with the Executive Yuan and are expected to complete submission at the end of April 2016 for further consideration.

The NCC says that it will change from a silo model to the horizontal-layers model used in telecommunications, traditional radio and television regulation in order to address the enhanced effect of the Internet. Practically speaking, the NCC follows the Japanese approach of the last century by splitting the existing Telecommunications Act into two separate statutes – the Telecommunications Business Act and the Law Governing Telecommunications Infrastructure and Resource Management. This liberalises the communications service market and removes entry barriers to further investment in both basic and enhanced services.

Terrestrial television and radio stations, as well as cable television systems, will in future be categorised as telecommunications platform providers that carry content subject to NCC approval and licencing. The NCC clarified that the new proposal does not suggest any business separation or entity spin-off of existing telecommunications carriers and licensed operators; nor will the NCC require more licences and prior approvals for emerging communications services. It appears that the NCC no longer persists in pressing Chunghwa Telecom to implement functional and structural separation.

The draft laws have yet to be finalised, as the NCC continues to consult the relevant government agencies to ensure that the process is fine tuned. Nevertheless, it would be embarrassing if the legislative proposal won enough support in the newly formed Taiwan Congress. KMT, Taiwan's long-ruling party, suffered a landslide defeat in the national election on January 16 2016.

The Executive Yuan is now caretaker until May 20 2016, when the government will be handed over. Further, five of the seven NCC commissioners – including the chairman and vice chair – will be appointed by the new government by the end of May 2016. This will cast a shadow over the review of the proposed regulatory reform.

For further information on this topic please contact
Arthur Shay at Shay & Partners (arthur@elitelaw.com).

Deals 

Here are this week's largest global deals by value.

1.       mobilcom-debitel GmbH to acquire Media Broadcast

2.      Cisco Systems Inc to acquire CliQr Technologies Inc

3.      Allwin Telecommunication Co Ltd to acquire Shanghai Snowfish Tech Co Ltd


Related Updates

Telephone fraud: a (pass)word to the wise

France – FIDAL

Winners in round two of Taiwan's 4G spectrum auction announced

Taiwan - Shay & Partners 

READ MORE:
Related News
Proshare is Nigeria’s Premier Financial, Business and Economic Information Hub (since 2006)
Registered Office: Plot 590B, Lekan Asuni Close, Omole Phase II, Isheri LGA, P.O. Box 18782, Ikeja, Lagos, Nigeria. Telephone: 0700 PROSHARE (070077674273)
Some of our Trademarks are: WebTV, TheAnalyst, Proshare, Personal Finance, The Nigerian Capital Market Reports, Money Africa, The Nigerian Investor, Making Money in the Nigerian Capital Market, Investor Relations Service, Proshare Investment Clubs, Evaluating your Financial Health, Becoming your own Stock Analyst
Proshare - Facebook Proshare - Twitter
SCROLL TO TOP