The National Communications Commission (NCC) on Wednesday granted conditional approval to two mergers, one between Taiwan Mobile and Taiwan Star Telecom (T Star), and the another between Far EasTone Telecommunications (FET) and Asia Pacific Telecom (APT).
The conditions attached to the approval include requiring the companies to take corrective measures by the end of June 2024 to resolve the fact that as a result of the mergers they will exceed the limits on bandwidth that can be owned by a single company, according to the NCC.
The problem can be resolved by returning the extra bandwidth, transfers or trade-offs with other telecom operators that are not affiliates or subsidiaries and do not have business partnership ties with them, according to the NCC.
However, the methods adopted to address the issue have to be approved by the Ministry of Digital Affairs, NCC Vice Chairman and spokesman Wong Po-tsung (???) said Wednesday.
If the companies fail to complete the necessary corrective measures by the deadline and engage in the unauthorized use of spectrum not assigned to them, they could face a fine ranging from NT$500,000 (US$16,485) to NT$5 million, according to the NCC.
The applications for mergers between Taiwan Mobile and T Star, and FET and APT, were submitted to the NCC on Feb. 10 and March 23 last year, respectively. Taiwan Mobile and FET will be the surviving entities following the mergers.
The NCC held administrative hearings in September last year on merger-related matters. After a review of the two merger plans that last nearly one year, the agency gave a conditional green light to them on Wednesday.
Wong indicated that the surviving companies should generally accept original contracts and protect the rights and interests of original users. For example, a 4G lifetime fixed fee of NT$188 per month for unlimited 4G service offered by T Star will remain unchanged until the 4G spectrum usage expires in 2033.
The mergers still require approval by the Fair Trade Commission, according to the NCC.
The mergers will give Taiwan Mobile and FET bandwidth in excess of the legal maximum — one-third or 50MHz of the total spectrum of 150MHz — allotted to all carriers through public tender.
FET had said it will give the extra bandwidth back to the NCC in accordance with regulatory requirements.
However, Taiwan Mobile had argued that if it is forced to return the extra bandwidth following the merger, that would affect the quality of service it provides to subscribers.
After the two mergers are fully completed, Taiwan will have three major telecom operators left — Chunghwa Telecom Co., Taiwan Mobile, and FET.
Source: Focus Taiwan News Channel