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Developing Taiwan’s ICT

Infrastructure Environment

Yi-Ning Katherine Chen

Commissioner

National Communications Commission

August 07, 2017

2

Introduction to NCC

• Missions

– Promoting the healthy development of communications

– Preserving the independence of the media

– Exercising regulation on communications effectively

– Ensuring fair and operative competition in the

communications market

– Protecting the consumer and respecting the rights of the

disadvantaged

– Promoting the balanced development of cultural diversity

3

Introduction to NCC-Organization Structure

Commission consists of 7 Commissioners,

including Chairperson and Vice Chairperson

Regional Operational UnitsOperational Units Administrative Supporting Offices

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OUTLINE

Telecom Market in TaiwanTelecom Market in Taiwan

Universal Broadband ServiceUniversal Broadband Service

Internet eXchange Point in Taiwan Internet eXchange Point in Taiwan

Draft of Digital Communications ActDraft of Digital Communications Act

Draft of Telecommunications Management ActDraft of Telecommunications Management Act

DIGI+ 2025 Program DIGI+ 2025 Program

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Telecom Market in Taiwan- Development of Broadband Service

Subscription

(Million)

Year

*Fixed Broadband= ADSL+ FTTX+ Cable Modem + Leased Line

*Mobile Broadband= 3G+4G

5.7

22

0

5

10

15

20

25

Fixed Broadband Mobile Broadband

6

Telecom Market in Taiwan- 4G Mobile

6

4G subscriptions

(million)Penetration rate

83%

Population coverage

93~99%2014 2015 2016 2017 April

3.5

11.6

18.1

19.5

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Telecom Market in Taiwan- Fixed Broadband

Cable19%

ADSL40%

Fiber41%

2011

5.44 million

2017

5.69 million

Fiber

62%

Cable

23%

ADSL

15%

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Telecom Market in Taiwan- Cable TV Digitization

Digital

cable TV

coverage

8%

97 %

4 611

23

4046

49.9 50.7

2010 2011 2012 2013 2014 2015 2016 2017 Q1

Set-top box

Subscriptions

(X100,000)

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Universal Broadband Service- Challenge in the Rural Area

Population (million)

Area (km2)

Taiwan 23.54 36,200

Rural area0.8

(3%)21,333

(60%)

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Universal Broadband Service- Goals of Policy

Promote reasonable

prices

Increase

broadband coverageOptimize QoS

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Universal Broadband Services- Initiatives

Broadband for

all villages (2Mbps)

Broadband for all

tribes

(2Mbps)

Broadband upgrade

(12Mbps)

2006 2008 2011 2015

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Orchid Island’s students are communicating

with Museum of Natural Science by

videoconference

Indigenous children are experiencing

broadband service

100 Mbps

100 %

All elementary schools, including those in the off-shore

islands, are connected to 100Mbps fiber network.

All elementary schools and libraries are connected to a

fiber network.

Universal Broadband Service - Upgrade the Quality of Education

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Universal Broadband Services - Mobile Service Coverage in Rural Areas

4G population coverage ratio

in rural areas (%)

Discount on

spectrum usage fee (%)

85 5

90 10

95 15

• Impose coverage obligation in 4G licensing

• Plan policy incentive- The better the rural coverage, the lower the frequency usage fee

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Internet eXchange Point in Taiwan - Environmental Change with Technology

• Services towards cross-border and cross-network services

• Internet traffic is rapidly growing

• A well developed IP interconnection environment is the basis of any digital economy

Source： Cisco VNI, 2016

15Source: ACM, 2015 Dutch IP interconnection in the Netherlands (Adapted)

Internet eXchange Point in Taiwan - Peering Ecosystem

CAP

CDN

IXP

Transit

provider

IASP IASP

End user End user

CDN

CAP

IASP IASP

End user End user

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Private Peering TransitPublic Peering

• Internet interconnection includes both peering and transit.

Connection types can be divided into private peering and

public peering.

Internet eXchange Point in Taiwan - Types of Internet Interconnection

Source: Dr. Peering

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Internet eXchange Point in Taiwan

Three major IXPs’ customers and traffic volume (2017 Q1)

IXP Date Customers

Traffic (Mbps)

Inbound Outbound

Average Maximum Average Maximum

TWIX

JAN 26 36,090 61,060 38,250 60,570

FEB 26 38,340 61,650 39,520 61,310

MAR 26 36,840 62,680 37,420 62,210

TPIX

JAN 29 44,203 53,429 44,164 54,149

FEB 29 43,690 51,219 43,041 51,275

MAR 29 51,467 57,456 51,146 58,086

EBIX

JAN 19 27,300 54,400 28,400 53,200

FEB 19 29,700 61,600 30,800 59,700

MAR 19 29,000 61,800 30,200 62,900

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Draft of Digital Communications Act

NCC proposed the draft of the Digital Communications Act in Dec. 2016

Internet Governance

Facilitate the Development of a Digital

Economy

Ensure Free Flow

of Digital Communications

Respect Digital Human Rights

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Draft of Digital Communications Act

Facilitate the Development of a Digital Economy

Promote Research and Innovation

Consumer Protection & Information Disclosure

Indicate the Obligations of

Service Providers

Ensure Free Flow of Digital

Communications

Network Traffic Management

Reasonable Use of Network

Resources

Transmission of Commercial Electronic

Information

Respect Digital Human Rights

Personal Privacy

Information Security

Equal Access for Minorities

Enhance Internet Governance

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Draft of Telecommunications Management Act

Resources

NetworkService

Consumer

Rights

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Draft of Telecommunications Management Act

• Promote competition• Lower entry barriers• Intensify regulation on SMP

Service

• Harmonization, efficiency, and fairness of frequencies• Simplify the management of numbers, Internet addresses

Resources

• Ensure the safety and security of communications• Establish advanced universal service

Network

• Protect the rights and interests of consumers• Respect the rights of the socially disadvantaged• Strengthen information disclosure

Consumer

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NCC’s Future Strategies

•QoS

•Broadband

Coverage

•TV Digitization

• Universal Service

in Rural Areas

• Digital Inclusion

•Local Content

•Self-Regulation

•Multi-Cultural

Diversity

• Applications

• Services

• Digital

Economy

Innovation Content

InfrastructureUniversal

Access

Innovation Content

Regulation

Environment

Universal

Service Infrastructure

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Conclusion

• Adopt the ‘Light Touch’ approach, introducing the principle of Internet governance.

Internet Governance

• Availability, Affordability, and AccessibilityBroadband

Access

• Promote broadband as an important basis for driving the digital service economy

InnovativeEconomy

• Raise Taiwan’s standing in the global ICT sectorDigital Nation

Promote an open, connected, and innovative ICT environment

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DIGI + 2025 Program – Developmental Framework

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