During its 823^rd Commission Meeting held on Sep 26, 2018, the National Communications Commission (NCC) approved the proposed reduction of fixed interconnection rates of Chunghwa Telecom. For mobile calls terminating at local networks, the interconnection rate charged by local network operators will be reduced from NTD 0.4851 to NTD 0.4383 per minute ( 9.65%) during the regular time period, and from NTD 0.2531 to NTD 0.2148 per minute (15.13%) during the reduced-price time period. The new rates will come into effect from Jan. 1, 2019 and will run until Dec. 31, 2022. The interconnection rate of fixed-to-fixed networks will remain unchanged as the calculated costs are higher than the current retail rate.

　　The reduction of rates is expected to allow mobile operators more flexibility to review their cost and price structures in a timely manner, which can then be suitably reflected onto the retail prices, allowing consumer benefits from such competition. However, NCC also pointed out that due to the ubiquity of fixed and mobile broadband allowing free OTT voice service to replace traditional voice telephony to a certain extent, sunk cost investments in telecommunications businesses have become quite substantial. In the meantime, NCC will continue to pay close attention to changes in the market and ensure that regulation policies and measures of the future take both industrial development and consumer rights into consideration.