In conjunction with TTC, Plum provided the NCC – the Taiwanese regulator – with three reports examining the current market for leased lines in Taiwan, providing input to a consultation on the appropriate regulatory mechanisms, and specifying how a regulatory cost model should be built.
The leased line market in Taiwan has historically been regulated using an RPI-X formula, which was initially based on a retail-minus calculation. Regulation has been focused on the retail market, and there has been limited growth in retail competition. Following our work, the NCC has decided to move to a wholesale regulatory regime, and to revise the way that regulated prices are evaluated, changing to a cost-oriented approach.
Our project involved extensive discussions with both NCC and TTC, as well as industry workshops and consultations.