Monday, April 13, 2009

Taiwan market: ISPs dispute over ADSL interconnection fees

Chunghwa Telecom (CHT), the largest ISP (Internet service provider) in Taiwan, on April 8 temporarily reduced the 9.3Gbps bandwidth of Internet-access interconnection leased to fellow competitor Taiwan Fixed Network (TFN) because of a payment dispute, but restored the bandwidth the next day, according to the two companies.

CHT, which was a state-run and the sole telecom carrier in Taiwan, still dominates the fixed-line telecommunication market in Taiwan with almost monopolized last-mile connection with users, and other ISPs have to lease bandwidth from CHT, industry sources said.

The dispute between CHT and TFN arose after the latter stopped payment of lease fees and asked for a cut price. TFN was asking that charge rate be cut to NT$300 (US$9.0)/Mbps, far below the current rates of at least NT$1,500/Mbps, the sources said. Both sides have yet to reach an agreement.

source

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