Taiwan’s Fair Trade Commission has approved a mobile payments joint venture between five operators and Easycard, the country’s leading contactless smartcard operator.

However, the watchdog set a number of conditions on the proposed venture which was also criticised by an opposition politician.

Chunghwa Telecom, Far EasTone, Taiwan Mobile, Asia Pacific Telecom and Vibo Telecom will set up a company with EasyCard, which is used on the country’s public transport system as well as in convenience stores.

Approval of such ventures are keenly watched by mobile operators in other countries to see the regulatory model being deployed.

In Taiwan, the joint venture has been a set a number of conditions in return for approval. These include a stipulation that it must be open to all other telecoms operators as well as rivals to EasyCard, according to a commission spokesman interviewed by the Taipei Times.

In addition, if similar joint ventures emerge in the future then they must also be accepted by the five operators, he said.

And, in a further condition, within four years after the joint venture is established, the five operators must no longer hold more than 50 percent of its shares, while Easycard must not own more than 10 percent.

However, an opposition politician has called foul. Democratic Progressive Party (DPP) lawmaker Chiu Yi-ying said the new venture will dominate the mobile payments market because there is no potential rival.

Chiu said the five operators dominate the country’s mobile market. Only one operator, the country’s smallest, is not part of the venture. And Easycard is a leader in its particular market.