Digital Reach

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N GENERAL

, T

AIWAN

Province of China is blessed with a

comprehensive telecommunications infrastructure and

extensive telecommunication services. Mobile phone pene-

tration is close to 100 per cent (97.38 per cent), local phone

59.85 per cent, Internet 64.78 per cent, and broadband access

54.70 per cent. In terms of household penetration, local phone

penetration is 97.56 per cent and broadband access 56.84 per

cent. Even though many countries may be envious of such

performance, Taiwan Province of China is still concerned about

the fact that 2.4 per cent of households cannot have access to

phones, and that 43 per cent of households do not enjoy broad-

band services. Under the e-Taiwan Programme in recent years,

great efforts have been made to reduce the digital divide and

create an equitable Information Society by implementing the

policies of providing universal telecommunication services and

creating a number of Telecentres in unserved areas.

Universal Telecommunications Services

A telecommunications deregulation policy was implemented in

Taiwan Province of China in 1996. To continue to safeguard the

basic communications rights of citizens in remote areas and

carry out the Information Society policy, the Ministry of

Transportation and Communications formulated the Regulations

on Telecommunications Universal Services in 2001 to accom-

modate the deregulation of fixed networks. Currently, the

universal services defined by such regulations include uneco-

nomical payphones, uneconomical local call services, free

coastal radio station services for shipwrecks and safety commu-

nications, and data communications access services for primary

schools, high schools and public libraries. The cost of univer-

sal services will be shared by telecommunications operators

based on their annual business volumes.

Implementation of Universal Telecommunications Services

The Directorate General of Telecommunications (DGT), the

telecommunications regulatory body, set up a Telecommunications

Universal Services Fund in August 2001 in accordance with the

Regulations on Telecommunications Universal Services and the

Management Committee for the Telecommunications Universal

Services Fund in October of the same year. Consisting of 11 schol-

ars, experts and government representatives, the Management

Committee is chaired by the DGT’s director general and primar-

ily reviews annual universal service action plans and approves the

cost of universal services. Universal telecommunications services

were formally launched in 2001, and the current provider is

Chunghwa Telecom, the incumbent operator.

God’s Tribe – case study of Smangus

Located in mountainous areas in northern Taiwan Province of China

at an elevation of 1 500 meters, Smangus is abundant in the produc-

tion of peaches, with untainted and graceful natural landscapes.

There are a total of 28 households in Smangus. The residents are reli-

giously faithful and refer to themselves as “God’s Tribe.”

It was not until 1979 that the tribe gained access to electric-

ity, and there were no access roads available until the end of

1995, when tourism development began in the area. However,

telecommunication services were still not available due to the

difficulties in the deployment of a telecommunications infra-

structure. In 2000, the tribe began to enjoy mobile commu

-nications with the outside world after Chunghwa Telecom built

base stations in neighbouring villages. However, high service

charges were a tremendous burden to the residents, not to

mention unstable signal quality and unavailability of fax and

Internet services.

On 30 April 2003, the tribe sent a letter to the DGT, requesting

a resolution of local call deployment issues. After an on-site visit

of a delegation led by the DGT’s director general and members of

the Management Committee for the Telecommunications

Universal Services Fund, Chunghwa Telecom was asked to utilize

a hybrid network technology (microwave and wired communica-

tion technologies) for network deployment. After six months of

planning and construction, the network was completed in

December 2003 with a total construction cost of USD175 000,

translating into USD6 000 per household, 20 times that of the

cost for each general household (approximately USD300). Since

then, local residents have enjoyed local call services and fax and

Internet access at the same prices and with the same quality as

other citizens.

Young students in the tribe were encouraged to set up their

website to promote tourism and market agricultural products via

information and communications technology (ICT). In 2004,

there was an increase of tourists and agricultural products, such

as peaches, were rapidly sold via the Internet in contrast to tough

sales in the past. This is a success story for digital opportunities

created by universal services.

Telecentre

Telecentre is a place equipped with ICT facilities and where

community residents can access the Internet and get relevant ICT

training. Developing telecentres in remote/rural areas has been

one of the key policies for bridging the digital divide in Taiwan

Province of China since 2000.

Stage One

To bring the people of remote areas into the Internet world,

Taiwan Province of China launched an approximately USD1.1

million project to establish telecentres in remote areas in 1999.

Provice of China offered a bid to request proposals and a

proposal from a specialist in integrating resources for religious

groups won the contract. It used churches as the major sites for

the telecentres and 141 had been built in remote areas by the

end of 2001.

Digital reach in Taiwan Province of China