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MOTC to Issue More Fixed Telecom Licenses in September, Lower Entry Requirements

August 30, 2004

The Directorate General of Telecommunications (DGT) of the Ministry of Transportation and Communications (MOTC) has announced that it be accepting applications for complex fixed-line network services and undersea cable circuit leasing services on March and September each year, starting from this September.

According to DGT plans, the minimum asset requirement for bidders of fixed-line network licenses has been lowered from NT$40 billion to NT$16 billion. The licenses allow operators to offer local-connection, long-distance and international-call services, and require operators to set up a minimum load capacity of 400,000 subscriber lines.

For bidders of undersea cable circuit leasing services, the DGT will revise the regulation stipulating that only fixed-line network and Internet service providers are allowed to compete for the licenses. The revision is expected to allow enterprises with large bandwidth requirements to lease the circuits directly from renters in order to minimize costs.

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