Taiwan’s Chunghwa Telecom said the regulator’s decision to require the operator to share its last mile connection with its competitors has infringed the company’s operating rights.
The operator also said the amendment will negatively impact broadband competition, as well as national security.
The National Communications Commission (NCC) Wednesday passed an amendment to the telecoms act which requires the incumbent carrier to share the last mile connection to customers with other operators. Chunghwa Telecom will also be required to only charge cost price to competitors who can use the connection to customer premises to deliver their own services.
The Executive Yuan will review the amendments this month and then submit it to the Legislative Yuan before the end of this year, the China Postreports.
In a response, Chunghwa Telecom said it has invested significant amount of money to roll out networks and it is unfair to be forced to share its networks with competitors.
“The development of broadband access requires huge capital investment and involves high risk. Other domestic fixed-line operators are reluctant to invest in this based on profit considerations, making us [Chunghwa Telecom] becoming the major force in the development of broadband access,” the company said.
Chunghwa Telecom stressed the NCC did not require other fixed-line operators to take responsibility for not fulfilling construction obligations, but blame the incumbent carrier for ineffective competition in the fixed-line market, which is in contrary to the principle of fairness.
The addition of the multiple terms, including the authorization of the NCC to require Chunghwa Telecom to operate the last mile function by an independent company or a separate business unit, and sharing the last mile information with other operators will pose a serious negative impact on the island’s broadband infrastructure development, competitiveness, and the national security, Chunghwa Telecom added.