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Issue Date:2019/05/31

NCC welcomes the completion of legislation of the "Telecommunications Management Act" for the country to move towards a new era of digital transformation中文

  For the Legislative Yuan passed the draft of Telecommunications Management Act on May 31. The National Communications Commission (NCC) would like to especially express the appreciation and gratitude to all political groups of the Legislative Yuan for their valuable opinions and supports on the Telecommunications Management Act.

  NCC indicate that the successfully completed legislation of the Telecommunications Management Act enables the telecommunications industry to flexibly use frequencies in order to allow rare resources such as frequencies to be used in a harmonious, effective and flexible manner. In addition, for the establishment and use of telecommunications infrastructure networks, due to the diversity of self-built or leased networks, it may accelerate the construction and renovation of various telecommunications infrastructures such as 5G, which is beneficial to building a ubiquitous high-quality network and moving towards the development of smart cities that provide broadband services anytime and anywhere.

  Acting Chairperson Chen of NCC expresses gratitude to the Legislative Yuan for its support and affirmation of the Telecommunications Management Act during this session so that the Telecommunications Management Act can successfully complete the legislation, and the NCC will complete the enactment of the Telecommunications Management Act related licensing sub-law as soon as possible to complete the legal system of communications and broadcasting. With the paradigm shift in various fields arising from the rapid development of communications and broadcasting technology and information technology, the existing operating model has to face rigorous transformation. The adoption of the Telecommunications Management Act shall lay a solid foundation for the construction of our country's broadband network environment and the promotion of innovation services in communications and broadcasting, to further drive the transformation and development of the country's digital economy.

  The formulation of the Telecommunications Management Act focuses on:

(I)Improving the development of the convergence industry, encouraging innovative services, and promoting fair market competition

  In order to encourage free market participation and change the old regulatory thinking of the past state-chartered era, for telecommunications businesses that do not need to use radio frequencies or telecommunication numbers, this Act specifies that they are only required to register with the competent authorities and to meet the information and telecommunications security, general consumers protection, and confidential communication obligation. If radio frequencies or telecommunication numbers are to be used, the corresponding control measures for their resources, such as specifications on number portability, equal access, operational plan management, information security management, etc., shall be implemented.

  At the same time, in order to avoid market failure, in reference to the precedents of Japan and the EU, this Act stipulates that asymmetric control measures to correct market structure and adjust business practices shall be adopted for those significant market providers (SMP) announced by the competent authorities, in order to create a market environment in which telecommunications businesses can compete fairly.

(II)Promoting the harmonious, effective, fair and flexible use of rare telecommunications resources such as frequencies, numbers, etc.

  This Act gives the competent authority the flexibility to release the frequencies, via auction, public tenders or other appropriate means, according to the characteristics of the frequency and the purpose of use, and reserve relevant measures for the development of new technologies, such as spectrum sharing mechanism, authorization-exempt use of frequency, etc. After approval, the incentive mechanism of frequency sharing, application for re-assignment, and re-auction after recovery may be adopted to meet the needs of rapid development of mobile communication technology and more convenient application environment.

(III)  Improving the addition of convergence infrastructure network, maintenance efficiency, and network security

  Building a secure and trustworthy public telecommunications network is an important cornerstone for ensuring digital economic development. In order to ensure the network and information security, this Act specifies a protective obligation on the provision of public telecommunications networks and the provision of telecommunications services. It includes adopting telecommunications equipment that meets national security considerations and information and telecommunications security standards, assigning the equipment to establish the implementation of communications monitoring, formulating the information and telecommunications security maintenance plan, the protection of key telecommunications infrastructure, etc., in order to ensure national security and information and telecommunications security, and to coordinate the maintenance of public safety.

(IV) Seamless integration of the old and new laws

  In addition, in order to achieve the goal of seamless integration of the old and new laws, there will be a three-year transition period after the implementation of this Act, allowing existing operators to comply with the new law at a more flexible pace.