State-run Chunghwa Telecom Co (中華電信) announced late yesterday that it had reached a local-loop leasing agreement with the nation's three private fixed-line telecom operators in a move to further liberalize Taiwan's telecom market.
Under the two-year contracts, Chunghwa will charge Taiwan Fixed Network Co (台灣固網), Sparq (速博) and Eastern Broadband Telecom (東森寬頻) NT$200 per line per month in the first year, and NT$220 in the second year.
Chunghwa had previously agreed to share the local loop, also known as the "last-mile," with three fixed-line operators at a cost of NT$300 per fixed line per month, but that offer was turned down by private operators.
Last-mile access is the crucial final connection to subscribers' residences or workplaces. Yet the state-run company said the agreement will only apply to voice services, while the lucrative data transmission will be restricted.
Chunghwa Telecom also plans to adjust rates on local calls to cope with possible loss in voice services.
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