National Communications Commission

2006 International Digital Cities Convention

-Broadband Policies and Regulatory Reform-

NCC NCC Chairman, Dr. Su Yeong-ChinChairman, Dr. Su Yeong-Chin

June 29, ’06

NCC

Outline

Current Status of Broadband Development

The role of regulatorBroadband Policies2006 Annual PlanFuture Directions for

Regulatory Reform

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Telecommunications（first quarter of 2006）

The number of broadband subscribers have reached 4.72 million, the households penetration percentage is 59.05％ .

The number of 3G service subscribers have reached 1.738 million. Among them, just 0.14 million subscribers utilize voice service only, while others also make use of data service.

FTTC coverage rate︰88.94%

Current Status of Broadband

Development （ 1）

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Broadcasting（first quarter of

2006）CATV head end digitalized︰ 57.14%

Within 63 CATV operators in Taiwan, 36 operators have digitalized their head end.

Total subscribers of CATV: 4.57 million households

Cable Modem internet access : 0.56 million households

DTV service coverage rate︰ 71.60%5 terrestrial broadcasting television companies have 2 6MHz bandwidth for digital TV service usage, and there are 15 channels now.

Current Status of Broadband

Development （ 2）

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The role of regulator

NCC has been operation since February 22. The Key to face the convergence of telecom

and broadcasting service and the development of digital convergence-Broadband convergence

The role of NCC︰ creating the environment beneficial to investing and operating for telecom and broadcasting industry Promoting liberalization of telecom and

broadcasting market Setting up regulatory framework with

transparency and reasonableness Promoting fair, open and effectively

competitive environment

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Broadband development policy（ 1）

In the beginning of 21st century, broadband policy is one of the important policies that improves national economical development and competitive strength.

The development of broadband has changed from raising network bandwidth competition to providing ubiquitous network and service competition. Japan advanced the u-Japan plan Korea advanced the IT-839 plan

Realize ubiquitous network and service wireless network sensor network

The key point to develop ubiquitous network and services successfully is proper arrangement and release of radio frequency

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Broadband development policy （ 2）

NCC actively promotes the wireless broadband access and application, and the following projects are expected be accomplished at the end of this year︰ Planning the frequency for wireless broadband access Re-farming relevant frequency Drafting the relevant regulation about releasing frequency Preparing the release of WiMAX licenses

Radio frequency is a rare resource, in order to use it effectively Studying the secondary market of frequency and take-bac

k mechanism to enhance the efficiency and flexibility of frequency usage in the free market

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2006 Annual Plan NCC four objectives

Promoting the convergence of communications Establishing a sound regulatory system for

communicationsSafeguarding citizens’ rights of and interests in

communicationsPromoting diversified cultures and protecting the

disadvantaged group 28 work plans, 49 projects proposed in accordance with

4 objectives

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Promoting the convergence of communications

7 work plansenlarging market entrypromoting competitiondrafting and revising substantial law and regulatio

ns promoting wireless broadband access and utilizati

on promoting development of digital platforms enhancing information and communications secur

ity promoting international engagement

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Establishing a sound regulatory system for communications

7 work plansincreasing the effectiveness of granting and rene

wing licensespromoting VoIP interconnectionrationalizing tariff controlconducting effective radio wave regulation cracking down illegal radio stationspromoting effective use of frequencyopening up new frequency bands for communica

tions

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Safeguarding citizens’ rights of and interests in communications

10 work plans Implementing the withdrawal of government, parties, and military

from the media Promoting universal services to bridge digital divide Commissioning third party to conduct inspection of in-building tele

com equipment Maintaining a secure network environment Promoting Internet content rating Enabling citizen participation in supervising broadcasting contents Enforcing Prepaid card regulation Simplifying certification procedure of end-users’ telecom equipmen

t Enhancing public awareness of using communications services Verifying billing system of communication operators

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Promoting diversified cultures and protecting the disadvantaged group

4 work plansdrafting strategic guidelines to promote diversified cultu

res and protect the disadvantaged setting up a mechanism for citizen participation in super

vision of communications helping the disadvantaged use communications resource

s realizing access to public welfare channels

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Future Directions for Regulatory Reform

Revising substantial law to build fair business environment 3 Broadcasting Law Telecommunications Law abolishing or revising unnecessary administrative

regulation

Enhancing competitive environment , Promoting the development of industry and creating 3 win situation（ consumer, operator & government） enhance national broadband construction and

diversified cultures ensure public interest