The government has budgeted about NT$15.5 billion (US$548.5 million) to subsidize telecoms for the building of 5G base stations, with the aim of raising service coverage to 85 percent in two-and-a-half years, the National Communications Commission (NCC) said yesterday.
The program funding came from the budget for the third phase of the Forward-looking Infrastructure Development Program, in which the Executive Yuan earmarked NT$26.6 billion for a five-year plan to speed up the deployment of 5G infrastructure, the commission said.
However, in January, the Legislative Yuan only approved the budget for the first two years: NT$9.92 billion for this year and NT$5.57 billion for next year, it said.
Photo: CNA
Yesterday, the commission also approved the guidelines governing the distribution of subsidies between telecoms, which would help accelerate the installation of 5G base stations at public transport hubs, key industrial zones and non-profit institutions.
Commission Vice Chairman and spokesperson Wong Po-tsung (翁柏宗) said that the guidelines would ensure that subsides would be distributed fairly, transparently and easily, adding that there would be incentives for telecoms to compete with one another, to install more base stations quickly.
Based on the guidelines, the commission would only subsidize base stations that are in addition to the ones stated in telecoms’ business plans.
The more base stations telecoms build beyond their business plans, the more subsidies they would be granted, the commission said.
NCC data showed that five telecoms had pledged in their business plans to build a total of 25,150 5G base stations in five years.
After the announcement of government subsidies, telecoms now aim to build 56,500 5G base stations in five years, the commission said.
Telecoms applying for subsidies are required to prioritize installations of base stations in public places, as well as other strategic areas, the commission said, adding that 3 percent of the budget would be reserved for the development of vertical applications.
Each telecom would not receive subsidies of more than 50 percent of the total that it spends building 5G base stations, it said.
The commission said that the subsidy program would stimulate the upgrade of the information and communications technology sector by encouraging the companies to purchase domestically produced equipment, starting next year.
From 2023, telecoms seeking subsidies would need to have at least 40 percent of their equipment made in Taiwan, it said.
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