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NCC fines telcos over NP service

The National Communications Commission (NCC) yesterday announced fines for three major telecom operators for giving different treatment to customers who choose to upgrade their mobile phone service to third-generation (3G) service and those who choose the number portable (NP) service.

Chunghwa Telecom Co (中華電信), Taiwan Mobile Corp (台灣大哥大) and Far EasTone Telecommunications Co (遠傳電信) must pay NT$300,000 (US$9,100) each, the NCC said.

The NP service allows customers to switch from one mobile phone service to another without having to change the mobile phone number. The government has allowed telecom operators to offer users the service since October 2005.

The NCC said it began investigating the case after Vibo Telecom Inc (威寶電信), the nation's smallest mobile telecom operator, filed a complaint.

The commission found that the three service providers on average required nine days to process applications for the NP service.

However, those who applied for 3G service could secure the service within a day.

"This [the delayed NP service] has indeed created an obstacle for Vibo to compete," NCC vice chairman Howard Shyr (石世豪) said.

PROFIT DECLINE

In other news, Chunghwa Telecom yesterday reported a 5.7 decline in profits last year.

Full-year unaudited net income was NT$44.89 billion, or NT$4.63 per share, the company said in a filing to the Taiwan Stock Exchange. This compared with NT$47.65 billion a year earlier.

Revenue increased to NT$184.39 billion from NT$183.38 billion a year earlier, the company said on Jan. 10.

Chunghwa Telecom, whose long-term foreign currency corporate credit rating was raised to "AA" from "AA-" by Standard and Poor's, said it was scheduled to announce a credit card partnership tomorrow with Cathay Financial Holding Co (國泰金控), the nation's largest financial services company by market value.

"We'll announce a strategic alliance with Cathay that allows users of their Visa cards to accumulate points toward Chunghwa Telecom bills," spokeswoman Hsu Mei said.

The alliance will also extend to a preferred-customer program, which will include discounts on handsets and tariffs, she said.
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