The National Communications Commission (NCC) yesterday said that cable service fees should be determined by a market mechanism, adding that the low-price strategy introduced by some cable service operators is not necessarily a good thing for consumers.
The commission made the statement following a series of stories published by the Chinese-language Apple Daily on the low-price strategy adopted by some of the new cable service operators to attract customers and expand their market share.
Specifically, the reports indicated that some of the operators introduced plans in which cable service subscribers only pay NT$500 to NT$1,500 per year.
NCC Planning Department Deputy Director Chi Hsiao-cheng (紀效正) said the commission has allowed cable operators to branch out and offer services outside their designated areas since 2012 to stimulate competition.
Prior to the launch of the policy, most of the cable service areas in Taiwan had only one cable service provider.
Some of the newcomers to the market began to operate after installations of cable lines were completed, Chi said, adding that cable service fees in the market are undergoing drastic fluctuations because the new operators want to attract customers with better content and cheaper prices.
Chi said that current regulations cap cable service fees, but do not set a minimum amount that operators can charge subscribers, adding that the reported low-price services are offered by operators whose pricing schemes are reviewed annually by local governments.
“The phenomenon shows that consumers now have the right to choose the service they want and it magnifies the urgent need to establish a tier-pricing scheme for cable services,” he said.
While cable subscribers are now given more choice, Chi said that they need to look closely at their contracts with the service providers and actively inquire about their rights and obligations as subscribers.
Cable operators are also required to provide a guarantee that they would fulfill the terms of the contract, he said.
The Taipei Department of Health yesterday said it has launched a probe into a restaurant at Far Eastern Sogo Xinyi A13 Department Store after a customer died of suspected food poisoning. A preliminary investigation on Sunday found missing employee health status reports and unsanitary kitchen utensils at Polam Kopitiam (寶林茶室) in the department store’s basement food court, the department said. No direct relationship between the food poisoning death and the restaurant was established, as no food from the day of the incident was available for testing and no other customers had reported health complaints, it said, adding that the investigation is ongoing. Later
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