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China Network Systems launches cable-based VoIP

China Network Systems Co (中嘉網路), a multiple-system operator, yesterday officially launched its voice-over-Internet protocol (VoIP) phone service, becoming the first operator to integrate digital cable broadcasting, broadband Internet access and VoIP in one cable modem.

With the "Triple Play" service, subscribers of China Network can pay NT$299 per month for a cable modem with a speed of 384/128k, the same rate charged by Chunghwa Telecom Co (中華電信) for its 128/64k Asymmetric Digital Subscriber Line (ADSL) broadband service.

The service is now available in Taipei County, and a trial was launched on month ago for about 3,000 of China Network's cable broadcast service subscribers in the region, said Gary Tsai (蔡俊榮), vice president of China Network.

Currently, there is no per-call charge on top of the monthly fee.

The firm's rate policy for calls will be made in accordance with feedback from users, and will be revealed in the next three to six months after a significant amount of customers have signed up, Tsai said.

China Network plans to invest NT$5 billion to build infrastructure throughout the nation for the three-in-one service, and targets expanding it to southern Taiwan, with a goal of acquiring 200,000 subscribers by the end of the year, he said.

As consumers tend to subscribe to ADSL broadband service instead of cable modem Internet access, Nelson Chang (張安平), chief executive officer of China Network, said there is still room for this niche market.

"To take a leading role in the market, we must offer what consumers want, and that is a one-stop solution that can fulfill their needs," Chang said yesterday at a press conference to launch the service.

"Besides, the penetration rate of cable TV is 85 percent in Taiwan, giving us an advantage to promote the business among our cable subscribers," he said.

Chang also urged the government to amend the Broadcasting and Television Law (廣電法), and the Telecommunications Law (電信法) to allow broadcasting operators to have telecommunications businesses, an issue that has been on the table for the past few years.

The current laws benefit state-run Chunghwa Telecom the most, Chang said, enabling it to maintain its monopoly in the fixed-line business while making inroads in the digital broadcasting market to compete with private operators.

Due to the ban imposed by the law, China Network is working with private fixed-line service providers, including Taiwan Fixed Network Co (台灣固網) and Sparq (速博) to provide the VoIP service.

"With the development of the Internet, which can incorporate various services including telephony, the outdated law should be revised to create a fair environment ... and help the market to grow further," Chang said.
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