Chapter 2 Network Interconnection between Type I Telecommunications Enterprises
Section Three – Cost of Network Interconnection
Related service fees for network interconnection are as follows:
1. Network interconnection setup charge: it refers to the one-time cost for network interconnection establishment between Type I telecommunications enterprises.
2. Access charge: it refers to the cost calculated on the basis of duration of the network communications using network interconnection.
3. Transit charge: it refers to the charge paid to the other Type I telecommunications enterprise, through whose network the communication between networks of two Type I telecommunications enterprises are completed for the networks of two enterprises, which are partly or completely not well interconnected.
4. Connection charge or other equipment rents: it refers to the cost for leasing links or other equipment in order to construct the network interconnection circuits.
5. Other auxiliary charge: it refers to the costs for providing other services.
The fees in the preceding paragraph shall be handled as follows:
1. The access charge and connection charge are assumed by the party that receives the tariff; nevertheless, specific agreement follows if there is any negotiation with the connection charge by the interconnecting enterprises.
2. The transit charge is assumed by the party that leads to the reason for the switching, and it shall be determined through negotiation if there is no reason for the switching.
3. Other costs shall be assumed by the party that requires interconnection and results in the cost increase of the other party.
If the traffic volume between two networks exceeded the bearing capacity of the direct interconnection circuit or bandwidth and requires network switch, the resulted cost shall be negotiated by related enterprises, and the provisions of Item 2 in the preceding paragraph are not applicable.
Except as otherwise provided hereunder, the termination rate of Type I telecommunications enterprises shall be determined through negotiation between both parties of the network interconnection.
Calculation of the above-mentioned termination rate shall meet the principle of cost orientation, fairness, reasonableness, and non-discrimination.
The termination rate of fixed network operators with significant market power (SMP) shall be determined pursuant to the following principles in accordance with the cost of the applied relay, transmission, and switching equipment, which shall be reviewed every four years:
1. The termination rate shall be determined by the costs of the unbundled network elements in service; and
2. The cost mentioned in the preceding paragraph shall be determined on the basis of TELRIC.
The termination rate ascertained by fixed network operators with significant market power (SMP) shall be verified by the NCC in advance; the commission shall also verify any modification to the rate.
In order to maintain balanced competition, consumer benefits, and other public interests, the NCC may modify the termination rate submitted by fixed network operators with significant market power (SMP) during verification.
The termination rate of 3G operators and mobile broadband operators, except as otherwise provided in regulations or provision, shall be determined in accordance with regulation. The provisions of Paragraph III also apply to the calculation and review of the termination rate.
For network interconnection between the dominant market player of Type I telecommunications enterprises and other Type I telecommunications enterprises, the tariff shall be figured out as provided in the preceding article, which shall be paid to other Type I telecommunications enterprises as the access charge.
The fixed network operators with significant market power shall disclose the calculation method for the termination rate to the NCC. If the party that requests interconnection is unsatisfied with the proposed termination rate, it may apply to the NCC for a crosscheck; the NCC shall reply to the applicant in writing with the results of the check.
The NCC shall require fixed network operators with significant market power to provide related information for the purpose of the said check.
The fixed network operators with significant market power shall unbundle its network elements.
The unbundled network elements shall contain the following:
1. local subscriber loops;
2. local switch transmission equipment;
3. local trunks;
4. toll switching transmission equipment;
5. long-distance trunks;
6. international switching transmission equipment;
7. network interface equipment;
8. directory equipment and service; and
9. signaling network equipment.
The unbundled network elements of 3G operators and mobile broadband operators are stated as follows:
1. mobile telecommunications trunks；
2. mobile telecommunications base transceiver stations；
3. mobile telecommunications base stations control equipment；
4. mobile telecommunications switching and transmission equipment；
5. Other network-related elements approved by NCC.
With feasible technologies, Type I telecommunications enterprises shall agree to set up the access point of local subscriber loops on the distribution frames of the local exchange office, MDF or distribution frames of subscribers’ buildings, or cabinets at curbside.
The tariff of unbundled network elements leased by other Type I telecommunications enterprises, unless otherwise provided by laws or regulations, shall be determined through negotiation between both parties; provided that the tariff for network bottleneck facilities shall be charged on a cost basis.
The charges of Type I Telecommunications Enterprises leasing its twisted-pair local loop to other Local network business operator shall be calculated by the historical cost method and shall be approved by the NCC in advance each year.