1. National Communications Commission 2006 International Digital Cities Convention - Broadband Policies and Regulatory Reform - NCC Chairman, Dr. Su Yeong-Chin June 29, ’06

2. NCC Outline   Current Status of Broadband Development   The role of regulator   Broadband Policies   2006 Annual Plan   Future Directions for Regulatory Reform

3. NCC 2  Telecommunications （ first quarter of 2006 ）  The number of broadband subscribers have reached 4.72 million, the households penetration percentage is 59.05 ％.  The number of 3G service subscribers have reached 1.738 million. Among them, just 0.14 million subscribers utilize voice service only, while others also make use of data service.  FTTC coverage rate ︰ 88.94% Current Status of Broadband Development （ 1 ）

4. NCC 3  Broadcasting （ first quarter of 2006 ）  CATV head end digitalized ︰ 57.14% l Within 63 CATV operators in Taiwan, 36 operators have digitalized their head end. l Total subscribers of CATV: 4.57 million households l Cable Modem internet access : 0.56 million households  DTV service coverage rate ︰ 71.60% l 5 terrestrial broadcasting television companies have 2 6MHz bandwidth for digital TV service usage, and there are 15 channels now. Current Status of Broadband Development （ 2 ）

5. NCC 4 The role of regulator   NCC has been operation since February 22.  The Key to face the convergence of telecom and broadcasting service and the development of digital convergence-Broadband convergence   The role of NCC ︰ creating the environment beneficial to investing and operating for telecom and broadcasting industry  Promoting liberalization of telecom and broadcasting market  Setting up regulatory framework with transparency and reasonableness  Promoting fair, open and effectively competitive environment

6. NCC 5 Broadband development policy （ 1 ）   In the beginning of 21st century, broadband policy is one of the important policies that improves national economical development and competitive strength.   The development of broadband has changed from raising network bandwidth competition to providing ubiquitous network and service competition.  Japan advanced the u-Japan plan  Korea advanced the IT-839 plan   Realize ubiquitous network and service  wireless network  sensor network   The key point to develop ubiquitous network and services successfully is proper arrangement and release of radio frequency

7. NCC 6 Broadband development policy （ 2 ）   NCC actively promotes the wireless broadband access and application, and the following projects are expected be accomplished at the end of this year ︰  Planning the frequency for wireless broadband access  Re-farming relevant frequency  Drafting the relevant regulation about releasing frequency  Preparing the release of WiMAX licenses   Radio frequency is a rare resource, in order to use it effectively  Studying the secondary market of frequency and take-back mechanism to enhance the efficiency and flexibility of frequency usage in the free market

8. NCC 7 2006 Annual Plan   NCC four objectives  Promoting the convergence of communications  Establishing a sound regulatory system for communications  Safeguarding citizens ’ rights of and interests in communications  Promoting diversified cultures and protecting the disadvantaged group   28 work plans, 49 projects proposed in accordance with 4 objectives

9. NCC 8 Promoting the convergence of communications   7 work plans  enlarging market entry  promoting competition  drafting and revising substantial law and regulations  promoting wireless broadband access and utilization  promoting development of digital platforms  enhancing information and communications security  promoting international engagement

10. NCC 9 Establishing a sound regulatory system for communications   7 work plans  increasing the effectiveness of granting and renewing licenses  promoting VoIP interconnection  rationalizing tariff control  conducting effective radio wave regulation  cracking down illegal radio stations  promoting effective use of frequency  opening up new frequency bands for communications

11. NCC 10 Safeguarding citizens ’ rights of and interests in communications   10 work plans  Implementing the withdrawal of government, parties, and military from the media  Promoting universal services to bridge digital divide  Commissioning third party to conduct inspection of in-building telecom equipment  Maintaining a secure network environment  Promoting Internet content rating  Enabling citizen participation in supervising broadcasting contents  Enforcing Prepaid card regulation  Simplifying certification procedure of end-users ’ telecom equipment  Enhancing public awareness of using communications services  Verifying billing system of communication operators

12. NCC 11 Promoting diversified cultures and protecting the disadvantaged group   4 work plans  drafting strategic guidelines to promote diversified cultures and protect the disadvantaged  setting up a mechanism for citizen participation in supervision of communications  helping the disadvantaged use communications resources  realizing access to public welfare channels

13. NCC 12 Future Directions for Regulatory Reform   Revising substantial law to build fair business environment  3 Broadcasting Law  Telecommunications Law  abolishing or revising unnecessary administrative regulation   Enhancing competitive environment, Promoting the development of industry and creating 3 win situation （ consumer, operator & government ）  enhance national broadband construction and diversified cultures  ensure public interest