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Chapter Law Content

Title: Telecommunications Management Act CH
Category: National Communications Commission(國家通訊傳播委員會)
Chapter III Facilitating Market Competitiveness
Section 1 Determination of Enterprises with Significance in the Market
Article 27
To ensure effective competition in the telecommunications service market, the competent authority is entitled to adopt control measures for those with market significance in the specific telecommunications service market if necessary.
When delimiting the scope of the specific telecommunications service market as described in the preceding paragraph, the competent authority shall take the following factors into consideration:
1. The technology and service development level;
2. The importance thereof in the overall telecommunications service market;
3. The region or range of competition and the demand or supply substitutability of that service;
4. The structure and competition of the telecommunications service market.
With respect to the determined scope of a specific telecommunications service market, the competent authority shall carry out a review every 3 years and hold a public hearing therefor to listen to the opinions of telecommunications enterprises and stakeholders.
Article 28
Where the telecommunications enterprise of a specific telecommunications service market encounters any of the following situations, the competent authority may recognize it as an enterprise with significance in the market:
1. Can obviously affect the market price or service conditions;
2. The number of subscribers or revenue of telecommunications service items operated thereby is above the percentage announced by the competent authority;
3. Possess or control essential facilities.
Where the telecommunications service provider encounters any of the situations described in the preceding paragraph and fails to register itself as a telecommunications enterprise, it shall be deemed as a telecommunications enterprise under this Chapter and subject to the obligation thereunder accordingly.
Where the telecommunications enterprises are not in competition with each other and their external relationship is as described in Paragraph 1, all of them will be deemed as having significance in the market.
When determining enterprises with significance in the market, the competent authority shall not only follow Paragraph 1 and the preceding paragraph but also take the consolidation of the telecommunications enterprise and affiliated companies thereof into consideration.
Those enterprises determined as having significance in the market by the competent authority may submit supporting documents related to its operations in the specific telecommunication service market to the competent authority as an application for canceling the determination as prescribed in Paragraph 1.
Rules governing the market significance determination standards, procedures and cancellation; date of promulgation; and other related matters shall be promulgated by the competent authority.
The essential facilities as described in Subparagraph 3 of Paragraph 1 refer to those which are in compliance with the following conditions and are announced by the competent authority:
1. The facilities cannot be established separately or be replaced; otherwise, the establishment or replacement thereof would require a rather long period of time and high costs, showing no economic benefit.
2. Where the enterprise’ refusal of providing the facilities to other telecommunications enterprise will directly or indirectly obstruct other telecommunications enterprises from entering the market competition.
Section 2 Special Control Measures
Article 29
The competent authority may order enterprises with significance in the specific telecommunications service market to disclose necessary information, conditions, procedures and expenses in terms of interconnection, network access components or use of telecommunications infrastructure.
The types, arrangement and disclosure methods of the necessary information as described in the preceding paragraph shall be promulgated by the competent authority.
Article 30
The competent authority may order enterprises with significance in the specific telecommunications service market to ensure that the agreements made with respect to interconnection, network access components or use of telecommunications infrastructure are fair and reasonable without any discrimination.
The “non-discrimination” as described in the preceding paragraph refers to the fact that the quality, price, conditions and information stipulated under the agreements offered to telecommunications enterprises by the enterprises with market significance are not inferior to that provided to the subsidiaries, affiliates or partners thereof.
Article 31
The competent authority may request those with significance in the specific telecommunications service market to provide interconnection, network access components or relevant telecommunications infrastructure.
When making a decision for the preceding paragraph, the competent authority shall take the following matters into consideration:
1. The feasibility and economic rationalization of technology provided to the network component or telecommunications infrastructure.
2. The necessity of maintaining long-term competition in the market.
3. Motivation to establish the telecommunications infrastructure.
Those with market significance shall reach an agreement within 3 months after other telecommunications enterprises propose or request to amend the proposal in terms of interconnection, network access components or related telecommunications infrastructure. Where an agreement cannot be made within 3 months, either party may apply for a ruling with the competent authority, and those with significance in the market shall follow the results of ruling.
With respect to interconnection, network access component or related telecommunications infrastructure provided by those with market significance, the rules governing the scope of use, cost attribution, segmented network components, establishment, co-installation and adoption of network interconnection points, rate calculation, interconnection agreement terms, ruling procedures and other related matters shall be promulgated by the competent authority.
Article 32
The competent authority may order those with significance in the specific telecommunications service market to, within a prescribed period, draw up a template agreement related to the preceding article and publish it upon receipt of the competent authority’s approval. When applying any amendments, the same rule shall be applied thereto.
The content of the template agreement as described in the preceding paragraph shall include arrangements on the price and conditions, technology, procedures and schedule.
Article 33
The competent authority may prohibit those with significance in the specific telecommunications service market from setting the service fee that may cause a cross-subsidy, price squeeze or any other abuse of power and hence impede fair competition.
Where any circumstance described in the preceding paragraph exists according to the investigation, the competent authority may adopt fee control measures for those with significance in specific telecommunications service markets.
With respect to those with significance in the specific telecommunications service market, the competent authority may adopt fee control measures for the provision of interconnection and network access component or for the use of telecommunications related infrastructure.
When adopting fee control measures as described in the preceding paragraph, the competent authority shall take reasonable remuneration and investment risks of new technology invested by those with significance in the market into consideration.
Those with significance in the market are obliged to provide evidence that supports the calculation of costs and reasonable recycling of investment measures; and shall provide relevant data, information, costs and other necessary documents.
With respect to rules governing fee control measures, items, implementation methods, fee review procedures, management and other related matters shall be promulgated by the competent authority.
Article 34
To implement special control measures, the competent authority may order those with significance in specific telecommunications service market to establish an accounting separation system.
With respect to the accounting separation system as described in the preceding paragraph, the enterprise shall make the manual of accounting operating procedures and submit it to the competent authority for approval before implementing such. When applying any amendments, the same rules shall be applied.
The accounting separation methods and principles as described in the preceding two paragraphs; cost separation principles; stipulation and review of accounting operating procedures; administration management standards; and other related matters shall be promulgated by the competent authority.
Article 35
Based on the principle of equality and reciprocity, and according to international conventions and agreement, the competent authority may set the individual international roaming service provided by the telecommunications enterprise as a special telecommunications service market and order telecommunications enterprises that provide international roaming services to adopt measures as prescribed in Articles 29 and 33.