Taiwan’s Fair Trade Commission approves Taiwan Mobile–Taiwan Star merger

Stipulations are in place to protect an estimated 9.8 million users

Taiwan’s Fair Trade Commission (FTC) has conditionally approved the proposed merger between Taiwan Mobile Co. Ltd. and Taiwan Star Telecom Corp. Ltd.—marking a significant shift in the country's telecommunications market.

The approval comes with several conditions set by the FTC which was aimed at safeguarding consumers’ rights and ensuring fair market practices. In the stipulations, Taiwan Mobile, which will be the surviving company post-merger, must honour the terms of existing Taiwan Sat contracts with end-users until end of December 2025.

Further, Taiwan Star subscribers who have signed up for its 'lifetime' 4G plan must continue to be served under their current terms until the expiration of the company's 4G spectrum license. 

The FTS has also mandated Taiwan Mobile to provide preferential tariffs for at least five years for specific user groups, including those with disabilities and low-income households. Beyond tariff-related matters, Taiwan Mobile must provide annual reports to regulatory authorities detailing the measures taken to enhance services and improve network quality.

In their previous statements during the signing of the merger agreement, Taiwan Mobile and Taiwan Star are optimistic that the partnership will benefit the country’s mobile telco industry.

According to Taiwan Mobile, the merger's primary objectives are to streamline the integration of the 5G spectrum, improve the efficiency of mobile communications base infrastructure deployment, as well as contribute to a low-carbon and sustainable future.

The merger is expected to bring together 9.8 million users and form a large-scale economic entity that offers more efficient investment in basic infrastructure and a greatly improved customer experience.

The firms said both of their customers will be able to take advantage of call discounts within a much bigger network, while T Star subscribers will benefit from increased coverage in 4G and 5G service without a change in rates. They will also gain access to a much larger retail network which means a more convenient and more attentive service.