Newsletter
REGULATIONS ON TYPE I CAR-RIERS' CHARGES
The Administrative Regulations Governing Charges by Type I Telecommunications Enter-prises were announced on 8 September 2000 by the Ministry of Transportation and Communica-tions (MOTC), with immediate effect. The new Regulations change the method of regulatory control over Type I carriers' charges from a sys-tem based on control of rate of return to one of ceilings on charge adjustments. The controls on charge adjustments have also been relaxed. A dominant Type I carrier must report any intended change in its primary charges to the DGT for MOTC approval 40 days before the planned date of implementation. But adjustments to a domi-nant carriers' non-primary charges, or to any charges by a non-dominant carrier, need only be announced in the media, on websites and at all places of business 14 days before the intended effective date, and reported to the DGT for its records. Primary charges include local, long-distance, international and mobile phone service charges, and other charges announced by the DGT.
The DGT states that under the new charge ad-justment ceilings method, for the period until April 2001 it will only allow reductions, but not increases, in long-distance, international and mobile phone call charges. But in view of the long-term low level of profits earned by Chunghwa Telecom for local telephone services, it will allow some room for increases in local service charges.