TAIWAN: NCC may allow open bids, auctions for TV licenses

Currently the National Communication Commission awards broadcasting licenses through a screening process

The China Post
Thursday, July 16, 2009

Taipei, Taiwan --- Taiwan's broadcasting officials are mulling changes to the law to open up competition for licenses, the local press reported yesterday.

The National Communication Commission (NCC) said open bidding and auctioning will be introduced as two new options for awarding broadcasting licenses, the United Evening News reported.

The changes to law will be made in line with the revised budget law that requires the release of broadcasting frequencies and licenses through open competition, the NCC was cited as saying.

Currently broadcasting licenses are awarded through a screening process by the NCC.

For existing terrestrial TV operators, they need to renew their licenses every six years for a fee of NT$10 million.

The transport ministry was said to considering releasing five more terrestrial TV frequencies.

The government would be able to fetch at least NT$100 million from the release of the five new terrestrial TV licenses through open competition, the United Evening said.

The NCC has been reprimanded by the highest government watchdog Control Yuan over its last release of radio frequencies that failed to fall in line with the revised budget law, the paper said.

Hsieh Chin-nan, a member of the NCC, was quoted as disclosing that the government is looking to release new radio frequencies soon.

If the revisions to the licensing law can be adopted in time, the upcoming release of radio frequencies will be conducted through open bidding or auctioning, Hsieh said.

The new approaches for the license awarding will come with necessary measures to guard against frequencies from being dominated by big businesses, Hsieh said.

The paper did not say what measures the commission is looking at.

But the newspaper pointed out the recent controversy over China-traded food company Want Want's takeover of the China Times newspaper group that controlled a cable network and a terrestrial TV station.

The release of licenses through open competition is prompting concerns over the possibility of facilitating wealthy businesses' control of the broadcasting media, the paper said.

But NCC officials were cited as saying that it is a common in the United States and European countries to auction off broadcasting licenses.

Date Posted: 7/16/2009