Taiwan Delays Opening Fixed-Line Telecom Market

HONG KONG (02/10/2000) - Taiwan's government has pushed back the date for opening up its fixed-line telecommunications market, an official of the Ministry of Transportation and Communications said today.

The ministry had been scheduled to issue licenses late this month for competitive fixed-line carriers, but the application review process has been extended, according to W. H. Chen, executive secretary of the ministry's Committee of International Affairs.

"Unfortunately, due to the Chinese New Year, there is a delay. The final results will be delayed for about two weeks from the original schedule," Chen said. He estimated the licenses will be issued in mid-March.

The ministry has received four applications, and the review committee has not decided how many licenses it will issue, according to Chen.

The issuing of licenses will for the first time introduce competition for state-owned Chunghwa Telecom Co. Ltd. in the fixed-line market. In 1997, Taiwan granted operating licenses to six private mobile phone service operators, which since January 1998 have offered services in competition with Chunghwa.

In opening up its telecom market, Taiwan is following in the footsteps of the Singapore and Hong Kong governments, both of which are taking steps to foster more services and lower costs for communications. All three governments have expressed hopes of creating Internet hubs for Asia.

(Terho Uimonen in Stockholm contributed to this story.)

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