Nearly 3 million second-generation (2G) telecom service users and fixed-line broadband service users are to have the opportunity to upgrade their services through the Executive Yuan’s short-term plan to boost domestic consumption, the National Communications Commission (NCC) said yesterday.
NCC spokesperson Yu Hsiao-cheng (虞孝成) said the 2G users applying to migrate to 4G would receive a government subsidy for three months, with each user receiving NT$200 per month.
Yu emphasized that the plan only applies to current 2G service users and does not include new 2G users.
“We hope that more 2G users would use this opportunity to upgrade their services to 4G, so that the bandwidth previously used by 2G users can now be used for 4G service and can be used to increase service speed,” he said.
According to the commission, all 2G service operators are obligated to return their licenses by June 2017, as the government has planned to discontinue 2G services.
Though the nation has 1.3 million 2G service users, Yu said that the plan can only fund 522,000 users given the limited budget.
Yu said that the program also includes plans to upgrade the fixed-line broadband service for some users, particularly those whose Internet service speed has yet to reach 12M/3M — meaning that the service has a download speed of 12 megabits per second (Mbps) and an upload speed of 3Mbps.
Commission statistics show that 1.65 million users’ Internet speed is below 12M/3M nationwide.
The commission said that a three-month subsidy would be provided to current broadband service users willing to upgrade to 12M/3M service, with each user getting NT$200 per month. The plan is only available for 330,000 users.
People who cannot have 12M/3M service installed in their homes can apply to have their mobile phone service upgraded to 4G, he said, adding that the quota for this plan is set at 230,000. Those who qualify for this plan would receive the same subsidy as 2G users migrating to 4G, Yu said.
Meanwhile, low-income families applying to upgrade their Internet speed to 12M/3M are also eligible to receive a three-month subsidy, with each user receiving NT$300 per month.
Residents in remote areas where 12M/3M service is not available can also receive the same subsidy as low-income families.
If a person comes from a low-income family and lives in a remote area, they cannot apply for both subsidies, Yu said.
Yu said that applications for upgrading services are to be handled on a “first come, first serve” basis, adding that the commission would end the plan if the budget runs out.
Yu said that the commission only subsidizes telecom services used by individuals, with an estimated cost NT$670 million (US$20 million). He said that the Ministry of Economic Affairs subsidizes the purchase of 4G mobile phones, with each applicant receiving up to NT$2,000.
Instead of having people come to the commission and request subsidies, Yu said that the subsidies would be paid by telecom carriers first and carriers would later collect the subsidies from the commission, adding that offers are to be made available between Saturday next week and Feb. 29.
To encourgae more 2G users to switch to 4G, five 4G carriers are expected to present service plans next week, he said.
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