About 4.46 million Chunghwa Telecom broadband service users will soon see their bills slightly reduced after the nation’s largest telecom cuts its monthly rental charge for residential lines and its Internet service charge next month.
The National Communications Commission yesterday approved the company’s proposed monthly residential line rental charge for asymmetric digital subscriber line (ADSL) users and very high bit-rate digital subscriber line (VDSL) users, with the decrease being between 4.41 percent and 4.8 percent. The service charge is being reduced by between NT$6 and NT$26 a month.
The commission said an estimated 4.46 million of the company’s broadband service users would benefit from the service charge reduction plan, saving about NT$944 million (US$31 million) a year. They include 1.58 million ADSL users and 2.88 million VDSL users.
However, the plan does not apply to those subscribing to the firm’s fiber-to-the-home or fiber-to-the-building services.
The Internet service speed is also being increased by between 23.1 kilobits per second and 4.4 megabits per second.
The plan is to take effect on April 1, the commission said.
Since last year, Chunghwa Telecom has reduced its broadband service charge by between 7.58 percent and 19.57 percent.
Based on the Administrative Regulation Governing Tariffs of Type I Telecommunications Enterprises (第一類電信事業資費管理辦法), the nation’s telecommunications service rates are regulated by imposing a price cap on the telecoms.
The commission announces an adjustment coefficient, also known as the X value, and the percentage of the service charge decrease is then determined by subtracting X from the Consumer Price Index for the previous year, which is announced by the Directorate-General of Budget, Accounting and Statistics.
Using the formula, Chunghwa Telecom was supposed to reduce its service charge by at least 4.3849 percent this year.
The largest decrease in the monthly charge is seen in the service in which users have a download speed of 100 megabits per second and an upload speed of 20 megabits per second, which will drop by NT$26 per month.
The smallest decrease is seen in the service in which users have a download speed of 2 megabits per second and upload speed of 64 kilobits per second.
Chunghwa Telecom’s new Internet service charge scheme for HiNet customers has yet to be approved by the commission, but the commission estimated that the decrease in this category could exceed 4 percent.