The Fair Trade Commission (FTC) yesterday announced that it has approved a merger between Far EasTone Telecommunications Co (FET) and Asia Pacific Telecom Co (APT) on the grounds that the former comprehensively accepts the terms of the latter’s existing user contracts and should offer preferential tariff plans for at least one year to general customers.
The merger, which cost FET NT$24.7 billion (US$795.1 million), was first approved by the National Communications Commission on Jan. 30.
“Our analysis showed that the frequency use efficiency as well as telecom service coverage and reception of Far EasTone Telecommunications, the surviving firm, would be enhanced with the spectrum, core networks and manpower that it would take over through the merger with Asia-Pacific Telecom,” the FTC said.
“The merger could also help facilitate development of 5G applications, and the consolidations of networks and base stations in compliance with the government’s policy of conserving energy and reducing carbon emissions,” it said.
However, the commission said that it also recognized the concern that the FET-APT merger could elevate FET’s share in the mobile broadband service market and lead to further concentration of the telecom service market on a few telecoms.
To address the concern, FET has voluntarily offered multiple telecom service plans that would benefit general consumers and promised to protect APT the subscribers, FTC said.
“The telecom further pledged to expand the availability of voice over LTE (VoLTE) service and contribute to the development of cloud services, distance education and distance healthcare through the use of big data, artificial intelligence and Internet technologies,” the commission said. “It also pledged to continue to invest in upgrading its communications system to increase telecom service coverage rate, accelerate communication speed and expand its service capacity.”
The commission said it approved the merger under four conditions: First, FET must comprehensively accept terms of APT’s existing user contracts and ensure that APT service subscribers can continue accessing their telecom services based on existing contracts until Dec. 31, 2025, the commission said.
Second, service subscribers who are mentally or physically challenged, from low-income households or 65 years or older can subscribe to preferential tariff plans for at least five years, it said.
Third, general subscribers can access preferential tariff plans for at least one year, the commission said.
Fourth, FET should submit an annual report on its preferential tariff plans to different subscribers and how it enhances the service quality within five years after the merger is complete, it said.
Meanwhile, the quality of voice, data roaming, portable number and equal access services that FET offers to service subscribers of other telecoms must be the same as those offered to its own service subscribers.
“FET must not reject, suspend or set unreasonable prices or terms for the wholesale services to other telecoms without legitimate reasons,” the commission said.
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