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Commission rejects Chunghwa's ADSL rate changes plan

Chunghwa Telecom's (CHT) plan to lower the price of its asymmetrical digital subscriber line (ADSL) service by April 1 may not take shape, as the National Communications Commission (NCC) questioned the terms of the company's proposed rate change plan yesterday.

NCC spokesperson Howard Shyr (石世豪) said the formula used by the company in calculating the proposed rate change was incorrect.

The commission originally asked the company to use a formula factoring in the average ADSL rate for last year and the total number of ADSL subscribers for the same period, but the company factored in only the DSL rate last December.

Shyr said the proposed rate change would not affect ADSL subscribers of 1M and 2M services, which account for approximately 55 percent of the company's ADSL subscribers.

Rather, the proposal simply lowers the fees for 8M and 12M users, who are generally capable of paying more for a speedier service.

"This shows that CHT did not take consumer's interest into account," he said, adding that commission members "are really upset" about CHT's refusal to make further changes.

Liu Pan-ho (劉伴和), CHT's senior managing director for marketing, said yesterday afternoon that the company had submitted an updated rate plan for 1M to 2M services yesterday morning.

Liu said CHT knew that the commission was scheduled to review the plan yesterday afternoon. Knowing that the official documents would not arrive before the review session, the company sent the updated plan as an attachment via e-mail.

He emphasized that the company has discussed the controversies surrounding the rate change with NCC officials, but still could not understand why the commission decided to issue a ruling.

The NCC's requirement was unreasonable, he said.

"The calculation should factor in the average rates of the same year when the new policy will be executed, rather than the average ADSL rate of the previous year," he added.
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