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Government watchdog recommends overhauling M-Taiwan program

Taiwan's highest government watchdog body has recommended the government revamp its M-Taiwan (Mobile Taiwan) program, stating that inefficient implementation of the program has impeded the development of broadband networks on the island.

The NT$30 billion (US$920 million) M-Taiwan program calls for construction of 6,000 kilometers of broadband networks so as to build up a wireless Internet access environment and improve Taiwan's mobile Internet penetration rate.

The construction of 6,000km broadband networks also aims to build up an environment in which Taiwan's fixed-line operators will be able to compete effectively with Chunghwa Telecom (CHT), which boasts complete telecom infrastructure, including the last-mile connectivity, market sources said.

About 4,500km, or 75%, out of the projected 6,000km broadband networks were completed by February 2009, the watchdog body Control Yuan noted.

However, the utilization rate of the established broadband networks remains low, with a total of only 1,800km having been rented by fixed-line operators so far, it said.

CHT is charging fixed-line operators a higher rental rate for the last mile connectivity, constituting an unfair competition environment for fixed-line operators and creating an unhealthy development of the local broadband industry, it said.

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