Abstract
The purpose of this study is to review the asymmetric regulation in telecommunications in Taiwan by a comparative analysis of U.S. and EU regulatory framework and experience. The study found that asymmetric regulation should solely be a necessary transitional tool during the telecommunications liberalization process, for the purpose of promoting competition. The necessity of such regulation comes from the compromise for competition interests. A regulatory framework established from the “ladder of investment” theory is unlikely to be effective in promoting facilities-based competition, although it can effectively promote service-based competition. Therefore, the implementation of regulatory remedies shall be based on the competition barriers identified, and be proportionated and justified according to its purpose, that is, to promote competition effectively. Based on the study findings described above, the author suggests that the following elements should be included in a proper asymmetric regulatory framework: 1. To define relevant markets based on principles of competition law, 2. To identify dominant suppliers through a forward-looking market analysis, 3. To periodically review, 4. An explicit cost accounting and pricing methodology, 5. A regulatory impact assessment, 6. and a process planning of over time segmental deregulation.