Regulations on Wireless Broadband Access Services

Regulations on Wireless Broadband Access Services
Date:2008/11/14
The amendment of Article 36 is hereby promulgated by NCC on November 14,
2008, the order Ref. Tong-Chuan-Ying-Zih No. 09741070960. Paragraphs of 11,
12 and 13 are added to Article 36.
Chapter 1: General Provisions
Article 1 These Regulations are promulgated pursuant to Paragraph 6, Article 14 of
the Telecommunication Act (hereinafter referred to as the “Act”).
Article 2 Definitions of terms used in these Regulations:
1. Wireless broadband access: A service provider using the approved
frequency as stated in Article 6 and adopting wireless broadband access
technology appointed in Paragraph 2 provides services enabling users to
send, transfer, or receive symbols, messages, texts, images, voices, or
messages of other natures.
2. Wireless broadband access technology: The capability to support
uninterrupted services of mobile stations at the speed of 100Km/hr, with
an average frequency spectrum efficiency of higher than 2bits/sec/Hz as
defined in the technical specifications, complying with technology
standards defined by one of the following standard organizations:
(1)
Technology standards defined by the International
Telecommunication Union (ITU)
(2) Technology standards defined by the Institute of Electrical and
Electronics Engineers (IEEE), European Telecommunications
Standards Institute (ETSI), or other international or regional
organizations.
3. Wireless Broadband Access System: A communications system
consisting of facilities required for wireless broadband access services,
such as mobile stations, base stations, switch facilities, network
management, and account management.
4. Wireless Broadband Access Network: A communications network
consisting of a wireless broadband access system and
telecommunications facilities, cables and equipment.
5. Wireless Broadband Access Services (hereinafter referred to as
“services”): A service provider using the approved frequency as stated
in Article 6 and adopting the wireless broadband access technology
appointed in Paragraph 2 provides services enabling users to send,
transfer, or receive symbols, messages, texts, images, voices, or
messages of other natures.
6. Mobile Station: a wireless terminal facility used for accessing wireless
broadband service.
7. Base Station: A land-based wireless communication backhaul for
communication among mobile stations and other users.
8. Service Provider: The entity that the Commission has granted the right
to engage in wireless broadband access services as well as the charter to
operate.
9. Subscriber: A user that registers or enters a contract with a service
provider for using wireless broadband access provided by the service
provider.
10. Emergency Telephone: The telephone used for reporting fire, theft or
other emergencies.
Article 3
The competent
Communications
“Commission”).
authority of the Services is the National
Commission (hereinafter referred to as the
Article 4
Services shall not begin before permission is granted and the charter is
issued by the Commission.
The beginning date and the final date of accepting operation
applications shall be announced by the Commission.
The minimum paid-in capital of a service provider that operates the
Services shall be NT$ one billion (NT$ 1,000,000,000).
If the applicant applying for the operation of the Services (hereinafter
referred to as the “applicant”) is also operating other telecommunication
services of which minimum paid-in capital is mandatory, the amount of
minimum required paid-in capital for the applicant may be the
summation of all minimum paid-in capitals mandatory for other
telecommunication services being operated by the same applicant after
establishment approval is granted.
Newly added capital of the applicant shall go public by issuing shares
within three months after a business registration or a registration of
changes for issuing new shares.
An applicant shall apply to the security authority for issuing shares to
the public, provided the capital exceeds the amount defined by the
competent authority.
Article 5
Service areas are defined as follows:
1. The North Area: Taipei County, Taipei City, Keelung City, Taoyuan
County, Hsinchu County, Hsinchu City, Miaoli County, Yilan County
and Lienchiang County.
2. The South Area: Taichung County, Taichung City, Nantou County,
Changhua County, Yunlin County, Chiayi County, Chiayi City, Tainan
County, Tainan City, Kaohsiung County, Kaohsiung City, Pingtung
County, Hualien County, Taitung County, Penghu County and Kinmen
County.
Article 6
Service areas, bandwidth, and frequency range of each charter are
defined as follows:
1. Charter A1: North Area; 30MHz (2565~2595MHz)
2.
3.
4.
5.
6.
Charter A2: South Area; 30MHz (2565~2595MHz)
Charter B1: North Area; 30MHz (2595~2625MHz)
Charter B2: South Area; 30MHz (2595~2625MHz)
Charter C1: North Area; 30MHz (2660~2690MHz)
Charter C2: South Area; 30MHz (2660~2690MHz)
Chapter 2: Operation Concession
Section 1 Procedure of Charter Issuance
Article 7
Concession cases of applying for services are transacted by a two-stage
procedure:
1. Stage 1: Review of the applicant’s application form, business plan,
and other qualifications and requirements according to regulations.
2. Stage 2: The applicant that passes the stage 1 review becomes a
qualified bidder (hereinafter referred to as the "bidder"), and is
allowed to participate in bidding. The Commission shall issue a
permission of incorporation to the winning bidder after the winning
bidder has rendered a performance bond and minimum advancement
bond of charter fee according to regulations.
If two or more applications for the Services are submitted, stage one
shall be first held; stage two will not be held unless there are two or
more applications at stage two.
The minimum advancement bond of charter fee stated in subparagraph 2
of paragraph 1 serves as the guarantee of the right to bid for the bidder;
the winning bidder’s failure to remit a charter fee or to keep service
operation shall be regarded as the cancellation of the contract, and the
advancement bond shall be converted to a default fine.
Article 8
The Commission may establish a review committee to conduct the
review of stage one as stated in the previous Article. Items and the
proportion for the review shall be stipulated and announced by the
Commission.
Article 9
The applicant may apply for one or more charters in one application
form. However, if applying for charters in different areas, the applicant
shall submit a separate business plan for each area.
One applicant is granted one charter only.
Article 10
The Commission shall select one charter for the North Area and one
for the South Area as defined in Article 6 as the priority bidding
subjects for the applicant who adopts IEEE 802.16e technical standards,
to operate services, and is not a dominate company in the Type One
telecommunication business, and not become involved in the
circumstances described in Paragraph 5. If no applicant meets the
criteria herein or such applicant fails to meet the criteria herein, then
other applicants who adopt IEEE 802.16e and operate the services may
enter the bidding for the subjects defined herein.
The selected charters described herein shall comply with the
alternative bidding procedure in Article 13: the third awarding charter
in the North Area and the first awarding charter in the South Area.
An applicant that meets the priority bidding criteria but is not
interested in priority bidding shall waive the right to priority bidding
prior to the priority bidding procedure by submitting a written waiver
to the Commission.
If the total number of qualified applicants for priority bidding
procedure is only 2 or 3 after deducting the number of qualified
applicants who are not interested, the number of charters offered for
priority bidding shall be reduced to one in the North Area; if there is
only one applicant, no charter shall be offered for priority bidding
procedure.
The applicant and Type One dominate telecommunication companies
that meet the conditions stated in Paragraph 2 of Article 16 (as the
same applicant) or the conditions stated by Paragraph 1 of Article 17
(as a joint applicant), or the conditions stated in Paragraph 4 of Article
46 cannot be qualified as an eligible applicant for the selected charter
as mentioned above.
Section 2: Bidding Rules and Procedure
Article 11
The Commission shall adopt a single round for bidding pursuant to
Article 12 unless the condition stated in Article 14 sustains.
The applicant shall state its preference for winning order of the bidding
subjects and provide a corresponding bidding value when submitting
an application form.
The bidding value mentioned in the preceding paragraph refers to a
percentage to multiply by the annual income of the Services as the
calculation of charter fee that a bidder promises to remit.
The bidding value mentioned in Paragraph 2 shall not be less than
1.5% and shall be made in an increment of 0.01%. The unconditional
elimination method shall be applied to any bidding value which is not
in an increment of 0.01%, and any digit next to 2 decimal places out of
0.01% shall be ignored.
Any of the following shall be deemed as an invalid bid:
1. The bidding form is not affixed with the company stamp seal and
the signature & seal of the person-in-charge.
2. The bidding subject is not listed in the preference list of winning
order.
3. The bidding value is not clearly stated or is beyond recognition.
4. The bidding value has been tampered, or two or more values are
submitted.
5. The bidding value is less than 1.5%.
6. Any bid that the Commission deems invalid.
The bidding subject without confirmation on preference for winning
order will not be listed in the preference list of winning order.
Article 12
The Commission shall open all bids at the same time and determine the
winning bidders.
Pursuant to Paragraph 4 of Article 10, the eligible applicant shall be
granted the priority to bidding competition and bid determination. The
temporary winner of the priority to bidding competition procedure
shall not participate in the bidding competition of other charters.
The method for determining winning bidders:
1. The bidder that offers the highest price for a bidding subject shall
be the temporary winning bidder of such bidding subject.
2. If two or more bidders offer the same price for the same bidding
subject, the temporary winning bidder shall be the one that has
stated the higher preference of winning order. If such method still
can not determine the temporary winning bidder, then the
Commission shall administer a draw to determine the winning
bidder.
3. Each bidder may hold only one temporary winning bid. If one
bidder holds the temporary winning bid of more than one bidding
subjects, then the bidder’s preference of winning order shall
determine which bid to be the temporary winning bid. The other
bidding subjects shall be awarded to other bidders according to the
proper order described in Paragraph 4.
The proper order mentioned in Paragraph 3 shall be determined by the
bidding prices; in case of the same bidding price, the preference of
winning order shall be the determinant; if no winner can be determined,
then the Commission shall administer a draw to determine the winning
bidder.
If any of the following situations happens and is concerned with
bidders’ rights, then the alternative bidding procedure shall be applied
pursuant to Article 13:
1.
2.
3.
Temporary winning bidders of multiple bidding subjects must be
determined by drawing.
A bidder is a temporary winning bidder and one of the bidders
offering the highest price at the same time, and its preference of
winning order for the bidding subject with the highest bidding
price is higher than the preference of winning order for the
temporarily won bidding subject.
Other bidders complain that a bid is ended without due process of
bid opening, and the Commission deems the situation has
substantiated the need for the alternative bidding procedure.
The round of bidding for every charter shall be ended after the bidding
price has been compared until only one temporary winning bidder
remains.
Prior to comparing the preference of winning orders among bidders
and determining the order of alternative bidding procedure pursuant to
Article 13, the preference list of the winning order submitted by all
bidders shall be re-arranged by first applying Paragraph 5 of Article 11
and eliminating invalid bids - the charter of which preference order is
beyond recognition, the charter of which the preference list of
winning order is not listed,, the charter of which the scope of business
applied for is not listed, the charter of which the scope of business is
not reported in business plan, and the charters not involved in the
bidding.
Article 13
A point system shall be calculated for every bidding subject. When the
bidding order is to be determined according to the total points from the
lowest to the highest order and the alternative bidding procedure is
followed, the following rules must be applied:
1. One point for the first preference of bidding subjects, two points
for the second preference, three points for the third preference, and
so on. Points for the bidding subjects that are not selected by the
applicant shall be calculated by dividing the applicants’ remaining
points by the number of charters not selected by the applicants.
2. The total points for every bidding subject shall be calculated by
the preference list of winning order of all bidders and the rules
provided in the preceding Paragraph. However, in case of bidding
subjects with the same points, the Commission shall administer a
draw to determine the winning applicant.
If all charters are in valid order, the total valid points in the applicants’
preference list of winning order shall be determined by summation
pursuant to the first half of Paragraph 1 of Article 1. The applicants’
remaining points shall be the total valid points after deducting the
points of the charters in valid order derived from the preference list of
winning order from the total valid points.
Article 14
If the number of the qualified Applicants is 10 or more pursuant to
Article 23, the bidding for the charters not released in the priority
bidding procedure provided in Paragraph 2 of Article 12 shall adopt
synchronized, increased, and multi-round methods. The bidding
method provided in Paragraph 1 of Article 12 shall become a
multi-round bidding for round one. The temporary winning bidder of
the charter determined by the bidding method stated in Article 12 shall
be the temporary winning bidder of round one.
Bidders who fails to submit a bidding price in round one or submits an
invalid bidding price shall lose the entitlement to bidding.
A maximum of ten rounds of bidding will be administered. The
bidding procedure shall end when ten rounds of bidding are completed
or when no qualified bidder remains before ten rounds have been
completed.
Bidders shall lose their entitlement to bidding if they give up bidding
more than three times from round two to round nine.
Any of the following shall be deemed as abstaining from bidding:
1. Non-temporary winning bidders do not submit a bidding price in
each round of bidding.
2. The bidder’s bidding price is deemed invalid in any round.
Starting from round two, bidders shall submit a bidding price subject to
the following methods:
1. Bidders are limited to submit one bidding price each round and
must submit a bidding price for one bidding subject only.
2. The bidder that offers the highest bidding price for one bidding
subject shall be the temporary winning bidder; the bidding price
shall be the temporary multiplier. The temporary winning bidder of
every round may submit a bidding price on the same bidding subject
after other bidders have submitted bidding prices and before the bid
is ended in the next round of bidding, except Round Ten, but may
not submit a bidding price for any other bidding subject.
3. There will be no upper limit of bidding price for all rounds of
bidding, except for round ten of which the upper limit shall be 110%
of temporary winning multiplier.
4. Bidders must submit a bidding price at an increment of 0.01%; any
bidding price multiplier not in an increment of 0.01% shall be
subject to unconditional elimination and any digit next to 2 decimal
places out of 0.01% shall be ignored.
The definition of invalid bidding price complies with Paragraph 5 of
Article 11.
If there are two bidders offering the highest price in rounds two to nine,
the Commission shall administer a draw to determine the temporary
winning bidder. If there are two bidders offering the highest price in
round ten, the bidder that has won more rounds shall be the temporary
winning bidder; if the bidders have the same number of winning
rounds, the one that first wins as the temporary winning bidder shall be
the winner. If no winner can be determined, then the Commission shall
administer a draw to determine the result. From rounds two to nine, if a
bidder that offers the highest bidding price but is unable to win as the
temporary winning bidder due to a draw, its bidding record shall be
included in Round Ten as the number of wins of temporary winning
bidder.
The bidding procedure from round two:
1. The Commission shall issue a bidding price ballot for all bidders at
every round, and an additional bidding subject ballot will be issued
in round ten;
2. Bidders shall submit a signed bidding form that contains a bidding
price and bidding value in a sealed bidding envelope to the
Commission staff within the time limit for every round; an
additional single-listed bidding form that contains a bidding price
for round ten shall be sealed in another envelope and submitted.
3. Once the bidding price submitted, the bid will be opened at rounds
two to nine. After the price bidding for round ten is completed, the
single-listed bidding form shall be first opened so that the temporary
winning bidder of round nine may consider raising the bid for the
same subject. Round ten may not begin unless the temporary
winning bidder of round nine has submitted its bidding form or
decided not to raise its bid or unless the consideration time has
ended.
4. When opening the bid for round ten, the bidding form from bidders
other than the temporary winning bidder shall be opened first; the
bidding form of the temporary winning bidder of round nine may
not be opened unless the biddings from the other bidders are deemed
valid. If the biddings from bidders other than the temporary winning
bidders are all deemed invalid, then the bidding form of the
temporary winning bidder of round nine will not be opened; the
temporary winning bidder of round nine shall be the temporary
winning bidder of round ten and the temporary winning bidding
price of round nine shall be the temporary winning bidding price of
round ten.
Section 3: Application and Review
Article 15
The applicant must be a corporation established in accordance with the
Company Act; the chairperson of the board of director must be a
citizen of the Republic of China. The total number of shares held by
non-nationals must comply with Paragraph 3 or Paragraph 5 of Article
12 of these Regulations.
Article 16
One applicant shall not submit more than two applications.
Two applicants shall be deemed as an identical applicant in any of the
following circumstances:
1. The applicant holds the voting shares more than half of the total
voting shares own the other applicant.
2. Half or more than half of the directors of the board of an applicant
collectively hold half or more than half of the position as director
of the board of the other applicant.
3. The total number of voting shares issued by the applicant and the
other applicant is equal to or larger than half of the shares owned
by the same shareholders or investors.
4. Different applicants are subsidiary companies of a third-party
company.
5. Different applicants’ holding companies are in relation of control
or a subsidiary.
The terms of control and subsidiary in Paragraph 4 and 5 above means
the concerned parties in Paragraph 1, 2, and 3 above.
The calculation method of shares in Paragraph 2 shall follow Article
369-11 of the Company Act.
If a shareholder of an applicant company also holds shares of the other
applicant company, then the shareholder’s percentage of share holding
in one applicant’s company is not limited, but the percentage of share
holding in the other applicant company may not exceed 10%.
Paragraph 1 and 5 also come into force and are applicable after a
charter has been granted to an applicant.
Article 17
Applicants shall be deemed as a joint applicant in any of the following
circumstances:
1. An applicant holding the shares of the other applicant company
equivalent to 15% or more of the applicant company’s total capital.
2. The same group of shareholders holds shares of different
applicants equivalent to one third or more of each of the applicants’
total capital.
The calculation method of shares shall follow Article 369-11 of the
Company Act.
Joint applicants shall negotiate and appoint only one as a qualified
applicant; if they fail to do so, then the Commission shall determine a
time and place to administer a draw to determine the qualified
applicant.
The application made by the applicant that is disqualified after the
negotiation or draw described in preceding Paragraph, and the
applicant that fails to participate in the draw shall be rejected; the
reviewing fee and interest shall not be refunded, and the bid bond will
be refunded without any interest.
This Article is also in force and applicable after a charter has been
granted to the applicant.
Article 18
The applicant shall submit the following documents within a time limit
to the Commission:
1. Application Form
2. Business Plan
3. Preference List of Winning Order
4. Bid Note
5. A photocopy of the receipt of remittance record of bid deposit.
6. A photocopy of the receipt of remittance record of reviewing fee
The Business Plan as referred to in the proceeding Paragraph shall
include the following information:
1. Business items
2. Service area
3. General status of telecommunication facilities:
(1) Type of wireless broadband access technology adopted,
maximum mobile speed supported, efficiency of average
frequency spectrum, and the name of the international or
regional organization that defines the technology.
(2) Construction plan and time schedule for system network,
and intended distribution area and quantity of base stations.
(3) System structure, communication type and service pattern.
(4) Usage plan of wireless frequency.
(5) Establishment plan of telecommunication surveillance
system.
(6) Plans for avoiding interference of adjacent frequencies
(7) System service quality.
(8)
The status of which the system is being used or tested in
other countries.
(9)
Description of contributions to the domestic
telecommunication industry.
4. Financial structure: estimated total capital and total paid-in capital
after winning the bid and upon the completion of registration of
corporate changes and estimation of the fund resource over the next
five years and fund utilization plan; an applicant that operates other
telecommunication businesses at the same time shall also submit a
responsive solution as required by Paragraph 1 of Article 63.
5. Technological capability and development plan.
6. Fee schedule and calculation method.
7. Personnel and organization structure and shareholding status:
Copies of Company Registration, Roster of directors and
supervisors, shareholders roster of the shareholders that hold one
percent (1%) or more of the shares, the foreign shareholding ratio
calculation list, report of the relationship with subordinating
company and consolidated business report of the controlling
company.
8. Scheduled date for commencement of operation.
9. Related measures for consumer protection.
10. A brief summary of business plan for the Commission to quote and
release as public information.
11. Other matters required by the review procedure.
The required information and recording method for the documents in
the two preceding Paragraphs shall be defined and announced by the
Commission.
In order to verify the applicant’s situation provided in Article 16 and a
joint applicant’s situation provided in Article 17, the Commission may
order the applicant to provide supplementary information within a time
limit after the applicant has won the bid and before the applicant has
been granted with a charter.
The applicant shall deliver the documents required by Subparagraph 3
and 4 of Paragraph 1 in a sealed envelope; failure to do so shall result
in a rejected application.
After an applicant has submitted an application according to Paragraph
1, the documents submitted shall not be returned.
The bid bond shall be NT$ forty million (40,000,000). The reviewing
fee for every business plan shall be NT$ two hundred and fifty
thousand (250,000). The applicant may not request for the refund of
the rendered bid bond and reviewing fee prior to the announcement of
bid result unless otherwise regulated by laws.
The bid bond and reviewing fee shall be remitted to the bank account
assigned by the Commission via telegraphic transfer; the applicant’s
company name, address, and telephone number shall be noted when
transferring the fees.
Article 19
The application filed by an applicant may not be amended or shall be
rejected in any of the following circumstances; the bid bond and
reviewing fee remitted shall be refunded without interest within seven
days from the next date of the arrival of an application rejection notice.
1. Application deadline is overdue.
2. Application form, business plan, preference list of winning order,
or bid note is missing.
3. The bid bond or reviewing fee is not remitted according to the
regulations or the bid bond or reviewing fee remitted is
insufficient.
Article 20
The application filed by an applicant may not be amended or shall be
rejected if any of the followings happens; the bid bond and reviewing
fee remitted and interest, if any, shall not be refunded, and the
refunded shall be reclaimed:
1. Violations to Paragraph 1 and 5 of Article 16.
2. The information provided as required by Article 15 to 17 is found
to be untrue or false.
3. An application with forged or counterfeit documents.
4. Any conducts that affect the fairness of the bidding process such
as bid fixing.
If the application does not meet any of the conditions stated in previous
Article, but has any of the following conditions, the Commission shall
notify the applicant in request of a remedy within a specific period of
time. The application will not be processed if a remedy is not found
within the specific period of time, or if the documents are still not
completed after resubmitting. The bid deposit will be refunded without
interest within seven days from the day following the day of receipt of
the decision not to accept the application. The reviewing fee and its
interest will not be refunded:
1. Violations to Article 15;
2. The expected paid-in capital as stated in the application or
business plan does not meet the minimum paid-in capital as
required for the Services;
3.
The documents requested according Paragraph 1 and 2 of
Article 18 are incomplete, or the content stated therein is not
thorough, or any matter stated in the application and business
plan is obviously misstated or miscalculated; and
4. The system facilities do not comply with the wireless
broadband access technology defined by the Commission.
If an applicant fails to supplement the relevant information according
to Paragraph 4, Article 18 within the stipulated period of time, the
application will not be processed. The bid deposit will be refunded
without interest within seven days from the day following the day of
receipt of the decision not to accept the application. The reviewing fee
and its interest will not be refunded.
Article 21
During the bidding process, if the bidder takes any action as stated in
any subparagraph of Paragraph 1, subparagraph 1 of Paragraph 2 or
Paragraph 3 of the previous Article, the bidder's rights to participate in
the bidding will be cancelled or revoked. If such situation is discovered
after the bid is awarded, the award will be cancelled or revoked, and
any bid bond, reviewing fee or interest shall not be refunded. If these
fees had already been refunded to the applicant, they shall be
reclaimed.
Article 22
For an applicant who withdraws the application, the bid deposit and
reviewing fee that have been paid shall be handled according to the
following regulations:
1. If the withdrawal takes place before the deadline for filing the
application as announced by the Commission, bid deposit and
reviewing fee will be refunded without interest within seven days
from the day following the day of receipt of the withdrawal
application;
2. if withdrawal takes place before the qualified bidder is announced,
the bid deposit will be refunded without interest within seven days
from the day following the day of receipt of the withdrawal
application; the reviewing fee and interest thereof will not be
refunded; and
3. if the withdrawal takes place after the qualified bidder is announced,
none of the bid deposit, reviewing fee and the interest will be
refunded; if such funds have been refunded, they shall be reclaimed.
Section 4
Bidding Operation
Article 23
The Commission will announce qualified bidders as defined in Article
10 upon the completion of the qualification review in accordance with
the above section.
Article 24
The operation of bidding will be handled by the Commission.
Article 25
The Commission will announce the date and location for conducting
the bidding seven days before the bidding date.
Article 26
To carry out the bidding process, the Commission shall prepare
bidding rooms in the bidding location.
Unless otherwise agreed by the Commission, the representatives of
each bidder shall not take any telecommunications equipment into the
bidding room. While in the bidding room, the representatives of each
bidder can only contact their companies by the method designated by
the Commission.
After the qualified bidders are announced by the Commission and
before the final award, no bidders or representatives thereof may take
any action in any manner with any other bidders or their
representatives that may affect the fairness of the bidding process or,
violate the law. Violators shall be deemed as disqualified in the
bidding.
If any action taken by a bidder and its representatives that may affect
the fairness of bidding process or violate the law, the Commission shall
request the violator to remedy the violation within a specific period of
time; failure to such remedy shall be disqualified.
The bidder and a maximum of three of its authorized representatives as
mentioned in Paragraph 2 are allowed to enter the bidding room only
when a power of attorney and related documents are presented; the
bidder or its authorized representative may only leave the bidding
room during the announced recess time or if prior approval is given by
the Commission. The bidder shall service the delivery of the list of
representatives three days prior to the date of bidding.
Article 27
The Commission may announce suspension of the bidding operation in
case of force majeure or major violations committed by the bidder or
any other situation that prevents the bidding operation from
proceeding .The Commission shall determine the responding actions at
its discretion.
Article 28
Upon the end of the bidding process, the winning multipliers of each
bidding subject shall be the temporary winning bidder’s stated
quotation for the bidding subject.
After the end of the bidding process, the list of winning bidders and
their multipliers of each bidding subject shall be announced by the
Commission.
Article 29
In the following circumstances the bid bond already paid shall be
refunded without interest:
1.
The applicant participates in the bidding, but does not win the
bid. The bid deposit will be refunded without interest within
seven days from the day following the day the Commission
announces the winning bidder list.
The applicant participates in the bidding and wins the bid, and
has paid the performance bond according to regulations.
However, the full amount of bid bond remitted by the winning
2.
bidder may be converted as a part of performance bond without
any interest.
The bid bond remitted by an applicant will not be refunded in
any of the followings circumstances: the refunded bid bond will
be reclaimed:
1.
Any failure to remit performance bond or the minimum
advancement bond of charter fee according to regulations
2. Disqualification as stated in Paragraph 3 of Article 26
Article 30
An applicant shall not file a complaint immediately pertaining to the
decision or action that the Commission made in the following
circumstances:
1. Refusal to refund the reviewing fee and its interest as
provided in Paragraph 4 of Article 17.
2. Rejection of the application as described in Article 19.
3.
4.
5.
6.
7.
Refusal to refund the reviewing fee and bid bond and
rejection of application as described in Article 20.
Disqualification or revocation or annulment of award of bid
as described in Article 21.
Refusal to refund the reviewing fee bid bond and rejection of
application as described in Paragraph 2 or 3 of Article 22.
Refusal to refund bid bond as described in Paragraph 2 of
Article 29.
Disqualification or not winning the bid as described in the
bidding operation regulations in this Section.
Section 5: Establishment Preparation
Article 31
Winning bidders shall remit a performance bond and the minimum
advancement bond of charter fee to the Commission within thirty days
from the date after the arrival of notice of award of bid, and the
Commission shall issue an establishment approval. Any failure to
make remittance shall be subject to annulment of award of bid.
Article 32
The Performance bond for the Services shall be NT$ forty million
(40,000,000), and the minimum advancement bond of charter fee shall
be NT$ two hundred and ten million (210,000,000). Any of the
following payment methods are accepted:
1. Direct deposit to the assigned bank account of the Commission.
2. A letter of performance guarantee issued by a bank legally
incorporated domestically.
3. Negotiable certificate of deposit pledged with the Commission.
The period of time of guarantee in the letter of guarantee mentioned
in the preceding paragraph shall begin from the date of the remittance
of the performance bond, or minimum advancement bond of the
charter fee, and end on the date of the expiration date of the
establishment approval plus a 6-year term of charter.
Winning bidders that apply for extending the effective period of the
establishment approval shall also apply for the extension of the
performance guarantee as referred to in the preceding paragraph.
Article 33
The performance bond remitted by winning bidders shall be refunded
in three stages according to the following regulations:
1. Successfully achieve the wireless wave coverage of base stations
in which the population accounts for 10% of the total population in
service area, and acquire a charter issued by the Commission by
passing the Commission’s acceptance inspection on the completed
telecommunication facilities and wiring equipment installation, and
then 10% of the performance bond may be refunded or the
guarantor bank may relieve partial performance responsibility
equivalent to 10% of performance bond.
2. Successfully achieve the wireless wave coverage of base stations
to 40% of the county and city in the service area and 70% of
population in every county and city in the service area, and pass the
Commission’s acceptance inspection, and then 30% of the
performance bond may be refunded or the guarantor bank may
relieve partial performance responsibility equivalent to 30% of
performance bond.
3. Within in five years after an establishment approval is issued,
successfully achieve the wireless wave coverage of base stations to
70% of total population in the service area and half of the county
and city in the service area, and pass the Commission’s acceptance
inspection from the acquisition of system installation, then the
remaining amount of performance bond may be refunded or the
guarantor bank may relieve the performance responsibility
equivalent to the remaining of performance bond.
Article 34
An establishment approval is valid for 1 year and 6 months. Winning
bidders that are unable to complete the establishment within a time
limit and acquire a charter through due process shall apply for
extension to the Commission with explanation within one month
starting from three months prior to the expiration of approval. Length
of extension may not exceed one year and only one extension is
allowed.
The Commission may revoke the establishment approval, system
installation permit, and frequency granted to the winning bidder, if
such bidder fails to meet the time limits provided in the preceding
paragraph; the performance bond and the minimum advancement bond
of charter fee will not be refunded; or, or the Commission shall notify
the guarantor bank to fulfill the responsibility of performance
guarantee.
Article 35
After acquisition of establishment approval, the winning bidder shall
complete necessary registration of company changes and complete
shares issuance within three months after company changes
registration. Winning bidders that are unable to complete the necessary
registration and complete shares issuance within a time limit shall
apply for extension to the Commission with an explanation within one
month starting from three months prior to the expiration of approval.
Length of extension may not exceed three months and only one
extension is allowed.
The Commission may revoke the establishment approval, system
installation permit, and frequency granted to the winning bidder, if
such bidder fails to meet time limits provided in the preceding
paragraph; the performance bond and the minimum advancement bond
of charter fee will not be refunded; or, the Commission shall notify the
guarantor bank to fulfill the responsibility of performance guarantee.
Winning bidders shall comply with Paragraph 3 of Article 4,
Subparagraph 4 of Paragraph 2 of Article 18, and Paragraph 1 of
Article 63 pertaining to paid-in capital when completing company
changes registration pursuant to Paragraph 1.
Article 36
Winning bidders shall apply for system installation permit during the
establishment period and assigned frequency to the Commission after
acquiring establishment approval and completing company changes
registration by submitting the following documents:
1. System installation permit and frequency assignment application
form.
2. Photocopy of company changes registration
3. Documents of consulting with the telecommunication surveillance
authority to confirm the establishment of telecommunication
surveillance system or equipment
4. System construction plan: including system structure, name and
quantity of construction equipment, number of base units and time
schedule in the business plan for passing the inspection of system
technology as provided in Paragraph 1 of Article 39
Service providers shall apply for system installation permit during the
establishment period after acquiring charter by submitting an
application form for system installation permit, documents of
consulting with the telecommunication surveillance authority to
confirm the establishment of telecommunication surveillance system or
equipment, and a system construction plan (including system structure,
name and quantity of construction equipment, and number of base
units and time schedule in the business plan for achieving wireless
wave coverage ratio as described in Article 66.
If the documents for the application for system installation permit
mentioned in the two preceding Paragraphs are incomplete or the
content of such documents is incomplete or the content has obvious
errors, the Commission shall notify and request for a remedy; any
failure to make remedy within a time limit or if the content is still
incomplete after remedy shall be subject to rejection.
After acquiring a system installation permit, the winning bidder shall
construct wireless broadband access network according to
subparagraph 4 of Paragraph 1 and Paragraph 2 pertaining to system
construction plan; for base stations, the winning bidder shall require
station installation permit before construction begins.
The valid period for system installation permit during establishment
period shall be one year and six months; those who are unable to
complete within a time limit shall apply for an extension with an
explanation. Extensions may not exceed one year and is limited to once
only. The Commission may revoke establishment approval and system
installation permit if a time limit is not met, and the performance bond
will not be refunded; or, the Commission shall notify the guarantor
bank to fulfill the responsibility of performance guarantee.
Extension due to the force majeure may be allowed depending on the
time delayed by such force majeure without being limited by the time
limit for extension provided in the preceding Paragraph.
If the system installation permit for the establishment period
mentioned in the previous two paragraphs expires, then the extension
for establishment approval for establishment period shall also be
applied for.
The valid period for the system installation permit as defined in
Paragraph 5 may not exceed the valid period for establishment
approval; winning bidders or service providers shall obtain approval
from the Commission with an explanation prior to changing the system
installation plan as mentioned in subparagraphs 2 and of Paragraph 1.
However, such change may not influence performance bond and the
responsibility stated in the business plan.
Winning bidders or service providers shall obtain a system installation
permit from the Commission if a list of name and quantity of system
installation equipment for the construction of follow-up network is not
included in the system installation plan as mentioned in Paragraph 2.
Establishment of partial or entire wireless broadband access network
shall not be permitted without first obtaining a system installation
permit through due process.
Winning bidders or service providers shall transfer approval Academic
and Educational, or Experimental, Research and Development
Telecommunication Network established by itself or other
administrator to be part of constructed wireless broadband access
network.
Shall winning bidders or service providers plan to accept the transfer
according to the preceding paragraph, the system installation plan shall
include the transferred network equipments at the time of application
for system installation permit according to Paragraph 1, or apply to the
Commission for permission to change the system installation plan
according to Paragraph 8, or apply to the Commission for permit of
future network establishment according to Paragraph 9. Equipments
installed at the same locations before and after the transfer may be
eligible for removal exemption prior to obtaining the installation
permit.
Shall users of the transferred Experimental, Research and
Development Telecommunication Network intend to continue using
the original services, the users may register with winning bidders or
service providers complying with the rules stipulated in Paragraph 1,
Article 12 of this Act.
Article 37
Winning bidders or service providers shall apply for a radio station
establishment permit to the Commission by submitting the following
documents:
1.
Radio station establishment application form and related
specification information
2. Affidavit for radio station establishment for the Services
The Commission may revoke the establishment permit if the winning
bidder or service provider fails to provide an affidavit as required by
the preceding paragraph or falsifies an affidavit. If the matters to which
the affidavit is concerned with have changed, the winning bidder or
service provider shall make another affidavit and report to the
Commission.
The valid period of radio station establishment permit shall be one year.
Winning bidders or service providers that are unable to complete the
establishment within a time limit shall apply for an extension to the
Commission with an explanation within one month during the last two
months before expiration; an extension may not exceed six months and
is limited to one time only.
During the station establishment period, the base station may not
broadcast any radio waves except short-term tests approved by the
Commission or on-site technical inspection conducted by the
Commission. The Maximum period of short-term tests may not exceed
five days.
The Commission shall issue a radio station license after the completed
radio station establishment has passed the Commission’s inspection.
The valid period of the charter shall be five years. Charter renewal
shall be applied to the Commission within one month during the last
two months prior to the expiration of the charter. The valid period of
the renewed charter shall begin from the date next to the date on which
the old charter expires.
The charter renewal as provided in the preceding Paragraph shall be
subject to technical inspection at the Commission’s discretion, and the
Commission shall issue a new charter after the inspection result is
satisfactory.
Radio station establishment is involved with structural safety and
rights of the use of the station of the building construction or location;
winning bidders or service providers shall comply with all regulations
concerning construction management and obtain related approvals
from the competent authorities.
Specification for technical inspection on base stations shall be defined
by the Commission.
Article 38
A winning bidder or service provider shall apply for a station
establishment permit to the Commission to change location of the base
station or maker of equipment. After the completed station has
successfully passed the inspection, the Commission shall issue a radio
station license.
A winning bidder or service provider that changes the address of a base
station antenna without changing location of the base station, changes
base station equipment model without changing the maker, or changes
number of radio frequency module, shall file a report to the
Commission prior to such change; if radio station license has been
obtained, then such change shall be completed within one month and a
renewal charter of radio station shall be applied to the Commission.
Article 39
A winning bidder or service provider may apply for a system technical
inspection to the Commission if its wireless wave coverage of base
stations reaches 70% of the population in any county or city within
service area and the related switching equipment and
telecommunication connection equipment are completed. Certificates
of system technical inspection qualification shall be issued after the
inspection result is found to be satisfactory.
Service providers that do not provide operational service in every
county and city within service area at the same time shall develop its
business by county and city. Operation is only allowed after related
switching equipment and telecommunication connection equipment is
completed and the result of system technical inspection by the
Commission is found to be satisfactory.
The development operation mentioned in the preceding paragraph may
be exempted from the inspection of base station wireless wave
coverage.
After a service provider has obtained the charter, any addition or
change of system switching equipment shall require prior approval
from the Commission; completed addition or change shall require
application for a system technical inspection to the Commission. The
Commission shall issue a certificate of system technical inspection
qualification if the result of the inspection is found to be satisfactory.
Specifications for technical inspection on base stations shall be defined
by the Commission.
Article 40
Base station radio frequency equipment provided by winning bidders
or service providers shall require a model certificate from the
Commission prior to installation application.
Article 41
After a winning bidder has obtained system construction approval, the
construction shall adopt the approved system. The connection circuits
between the system and other systems shall be leased from fixed
network communication service providers or fixed satellite
telecommunication service providers. If the connection circuits are
installed in the same building, then an exception may be granted by the
Commission.
After obtaining approval from the Commission, the winning bidder
may install circuits for connecting equipments within the wireless
broadband access system network by itself.
If the circuits constructed pursuant to the approval under the preceding
Paragraph consist of fiber optic or copper cables built by the winning
bidder itself, such construction shall be carried out in accordance with
the following provisions:
1.
An application for an approval shall be filed with the
2.
administrative authorities in accordance with applicable laws and
regulations for using the land needed for rolling out the circuit
lines of the network.
If the circuit lines of the network rolled out by the winning
bidder need to be attached to the pipelines of the cables or
relevant facilities owned by public enterprises, such attachment
shall be proceeded in accordance with applicable laws and
regulations.
If the circuits constructed under Paragraph 2 of this Article are
microwave connections, a station erection permit is required, and the
Commission may assign the frequency needed thereby after taking into
account the development of relevant technologies and the condition of
use of the frequency resources.
If the circuits constructed under Paragraph 2 of this Article are
microwave connections, matters relating to the assignment of
frequency and station erection permit shall be handled in accordance
with the applicable provisions in the Regulations on the Establishment
and Use of Microwave Stations of a Type One Telecommunication
Enterprise. In the case of satellite connections, matters relating to the
assignment of frequency and the station erection permit shall be
handled in accordance with the Administrative Rules on Satellite
Telecommunication Services.
Article 42
The base station establishment applied by the winning bidder or the
service provider, or the microwave station or satellite earth station
approved to be erected shall not be constructed until the permits under
Articles 37 and 44 have been obtained, and shall not be used until they
have passed the examination and a relevant charter has been issued.
Article 43
As soon as the winning bidder or the service provider has obtained a
station erection permit or station license, a photocopy thereof shall be
displayed externally of the station equipment for examination.
Article 44
The winning bidder shall apply to the Commission for issuance of a
concession charter by submitting the following documents, and the
charter shall be issued upon the approval of the Commission:
1. Application form for a charter
2. A photocopy of the establishment approval
3. A photocopy of the Company Registration
4. Documents showing the system has passed the technical inspection
5. Document showing the competent authority's consent to the service
charges
6. Document showing the Commission’s approval of the code of
business operational regulations of the company
7. Document showing the Commission’s approval of a sample of the
service contract between the service provider and users
Article 45
A concession charter shall contain the following items:
1. Name of the service provider, its representative and the location of
its business office
2. Type of business
3. The amount of total capital and total paid-in capital
4. Service area
5. Frequency range used
6. Valid term
7. Issuance date
Article 46
The valid period of a charter shall be six years and shall lose its
validity upon expiration.
The charter renewal may be applied for upon expiration of a charter,
and such renewal charter shall be valid for six years and renewal is
limited to one time only. Service providers shall apply for renewal to
the Commission within three months during the last 9 months prior to
the expiration date of the charter.
Service providers shall apply for charter renewal by submitting the
following documents:
1. Application form
2. Self-assessment report on the execution of the original business
plan
3. Self-assessment report on performance of frequency use
4. Business plan for the next six years
5. Other documents required by the Commission
An application for charter renewal as provided in Paragraph 2 shall be
rejected in any of the following circumstances:
1.
2.
3.
4.
5.
Any failure to complete the system construction plan without
justifiable reasons, or responsibilities stated in the business plan not
being executed, will result in the performance bond not being
entirely refunded,
Any failure to make effective use of frequency resource and no
improvement is made as ordered by the Commission
Entire or partial service is suspended due to violations of laws
Unilaterally pause or termination of entire or partial service without
approval
Unilaterally transfer entire or partial service or the majority of
business of property without approval
6. Causing major consumer disputes and is incapable of solving such
disputes in the correct manner
7. Other major flaws that compromise the service provider’s operation
capability
The Commission may adjust the charter fee in consideration of market
competitiveness when issuing a renewal charter.
Article 47
Service providers shall commence service within six months from the
date of charter issuance; otherwise the Commission may revoke the
charter issued and the frequency assigned; the remitted performance
bond and the minimum advancement bond of charter fee shall not be
refunded, or the Commission shall notify the guarantor bank to execute
the guarantee responsibility.
If the winning bidder or service provider violates related laws, and the
establishment approval or charter has been revoked by the Commission,
the performance bond and the minimum advancement bond of charter
fee remitted by such winning bidder or service provider shall not be
refunded, or the Commission shall notify the guarantor bank to execute
the guarantee responsibility.
Article 48
Any lost or damaged establishment approval, installation permit, radio
station license, or charter shall be reported to the Commission with an
explanation for replacement. In case the stated items have changed,
please report to the Commission for renewal.
Establishment approval, installation permit, radio station license, charter,
or assigned radio frequency may not be leased, lent transferred, or
assigned to a third party unless otherwise provided by laws.
Chapter 3
Operation Management
Section 1 Charter Fee
Article 49
Service providers shall remit a charter fee, which shall be calculated by
multiplying sales income with the multiplier as offered in the bidding.
However, if the amount derived from such calculation is below the
amounts provided below, then the amount of charter fee shall be made
according to the following amounts:
1. NT$ twenty million (20,000,000) for the first year
2. NT$ thirty million (30,000,000) for the second year
3. NT$ forty million (40,000,000) for the third year and thereafter.
The “first year” in the preceding Paragraph refers to the twelve months
from the month in which the service provider begins commercial
operation; the “second year” refers to the thirteenth month to the
twenty-fourth month from the month in which the service provider
begins commercial operation; and “the third year and thereafter” refers
to the twenty-fifth month from the month in which the service provider
begins commercial operation. The minimum amount of charter fee of
the then-current fiscal year charged to the service provider shall be
calculated proportionately according to the months described above.
The minimum advancement bond for charter fee charged to the
winning bidder as provided in Article 32 shall be calculated according
to Paragraph 1. After the annual charter fee has been remitted, the
service provider may apply for the refund of the minimum
advancement bond of charter fee of the then-current fiscal year or
apply for notifying the guarantor bank to relieve the guarantee
responsibility equivalent to the then-current fiscal year’s minimum
advancement bond of charter fee.
If the service provider fails to remit a charter fee, the Commission shall
notify the guarantor bank to execute guarantee responsibility.
Section 2
Cross-investment or Merger
Article 50
Service providers may apply for cross-investment or merger pursuant
to Article 15 of these Regulations without being constrained by
Paragraphs 1 and 5 of Article 16 and Article 17.
An application for merger mentioned in the preceding Paragraph shall
be rejected if the applicant is subject to the situations provided in
Paragraph 4 of Article 46.
If the applicant goes into merger after obtaining a charter and the
service area becomes full area after the merger, the multiplier used for
the calculation of charter fee shall be the average of the multipliers of
the charters being merged. If the service area is still in the North Area
or the South Area after merger, then the multiplier used for the
calculation of the charter fee shall be the highest among the multipliers
of the charters being merged. The minimum paid-in capital for the
merged company pursuant to Paragraph 1 shall be greater than the
amount as provided in Paragraph 3 of Article 4 multiplied by the
number of charter being merged.
If an applicant, pursuant to Paragraph 1, goes into merger within
same service area, the applicant shall submit a report that explains
influence that the merger may impose on the development of
market for the Services, the overall economic benefits, and
reduction of unfavorable competition.
the
the
the
the
If service providers of different service areas merge, the Commission
shall re-issue a full-area charter, of which the valid period shall be
re-calculated and extended to ten years. However, the expiration date
of such full-area charter shall not exceed the expiration date of the
second stage charter as promulgated by the Executive Yuan.
Section 3 Technical Supervision
Article 51
Winning bidders or service providers shall use telecommunication
numbers according to the Regulations on Telecommunications
Numbers.
Article 52
The auto telephone service provided by service providers shall offer
users emergency telephone numbers of 110 and 119 free of charge.
Service providers shall give priority processing for all 110 and 119
emergency calls.
Article 53
The Commission may conduct scheduled or non-scheduled inspection
of wireless broadband access systems and base station equipment of
service providers.
Article 54
Service providers shall plan for protecting the channel covered in the
assigned bandwidth.
In order to prevent or improve all types of overlaying and adjacent
frequency interferences, service providers are responsible for making
arrangement of base station locations and channels through negotiation
among themselves or adopt other effective technologies until such
interference is improved. Unsuccessful negotiation shall be reported to
the Commission.
If the radio frequency used by a service provider is interfered by the
radio frequency used by legitimate, existing radio stations in other
business service, then the service provider is responsible for making
arrangement with such radio station through negotiation. Unsuccessful
negotiations shall be reported to the Commission.
If the base station in construction interferes with the bandwidth used
by legitimate, existing radio stations in other business service, the
service provider shall adopt effective technologies to avoid the
interference; if necessary, the base station shall cease to operate
temporarily until improvements are made.
Article 55
The antenna of a base station may not violate the regulations
concerning building and obstacle height restriction in the perimeters of
airports, airfields, navigation aids and related facilities promulgated by
the Ministry of Interior, the Ministry of National Defense, and the
Ministry of Transportation and Communications.
The height of antenna structure exceeding sixty meters above ground
shall be painted with aviation color marks and equipped with marker
beacons, and shall maintain a safety clearance from high voltage lines
for public safety.
Article 56
The height and direction of base station antenna to be erected on
rooftop of buildings must maintain a clearance that there are no
legitimate buildings higher than the antenna within fifteen meters in
the front.
If the power of the antenna for input-side radio frequency installed for
outdoor radio wave coverage is larger than 2 watts, then such antenna
may not be installed inside buildings.
Article 57
Service providers shall complete co-constructed stations and shared
stations of which the total quantity shall be at least 10% of its total
number of base station constructed within one year from the date of
charter issuance, and the number of co-constructed stations constructed
shall be at least 5%. The service provider shall complete
co-constructed stations and shared stations of which the total quantity
shall be at least 20% of its total number of base station constructed
within two years from the date of charter issuance, and the number of
co-constructed stations constructed shall be at least 10%. The service
provider shall complete co-constructed stations and shared stations of
which the total quantity shall be at least 30% of its total number of
base station constructed within three years from the date of charter
issuance, and the number of co-constructed station constructed shall be
at least 12%. Service provider shall complete co-constructed stations
and shared stations of which the total quantity shall be at least 40% of
its total number of base station constructed within four years from the
date of charter issuance, and the number of co-constructed station
constructed shall be at least 14%.
The term of co-constructed station described in Paragraph 1 refers to
the antenna of a base station that is shared by other service providers
that engage in the Services. The term “shared station” refers to a base
station where different service providers engage in services or other
service providers engage in other business are using their own antennas
to set up base station at the same location.
If a base station is established on public buildings or land, the station
shall be shared with service providers engaged in the services or other
business as a co-constructed or shared station.
Article 58
If a service provider is subject to revocation or annulment of charter,
the Commission shall revoke or annul the service provider’s assigned
radio frequency, radio station license and network code.
Article 59
Service providers and recipients of establishment approval shall follow
the order of the Commission and form a mobile communication
construction negotiation team to negotiate issues pertaining to network
linkage, network roaming, and co-constructed or shared stations.
Service providers shall establish a Wireless Broadband Access
Application Service Interconnection Test and Negotiation Team to
supervise and negotiate the scale, construction, maintenance, and
management issues pertaining to the collaborative test platform in
order to benefit the promotion and execution of interconnection tests.
When two or more service providers are providing similar and
compulsory international standard cross-system services at the same
time, the Interconnection Test and Negotiation Team shall complete
the cross-system test for such application service on the date that such
service is declared as compulsory interconnection by such international
standard or within half year from the date the second service provider
begins to provide such service, so that the consumers may use the
interconnection.
Service providers shall report the operation progress and results of the
Wireless Broadband Access Application Service Interconnection Test
and Negotiation Team as provided in Paragraph 2 to the Commission.
In order to promote interconnection applications among new services,
mediate cross-system test disputes and confirm test results, the
Commission may appoint a test lab recognized by Telecom
Technology Center or WiMAX Forum or a test lab recognized by
international or regional standard organizations, such as Institute of
Electrical and Electronics Engineers or Telecommunications Standards
Institute to assist in the issues of interconnection of telecommunication
interface services.
Article 60
Service
providers
shall
recruit
qualified,
high-ranked
telecommunication engineering personnel to take charge of and
supervise the construction, maintenance and operation of
telecommunication equipment; such personnel shall keep log and sign
on the construction or maintenance journal.
The construction or maintenance journal shall be preserved for at least
one year; the service provider is responsible to provide such journal for
inspection by the inspection personnel sent by the Commission.
Section 4
Supervision over Services Operation
Article 61
In order to improve nationals' rights and interests to basic
telecommunication services and to provide basic telecommunication
services to remote regions for universal service, the service provider
shall contribute to the Telecommunication Universal Service Fund in
accordance with the Regulations on the Telecommunication Universal
Service.
Article 62
Service providers of broadcasting or television services shall comply
with the Radio and Television Act.
Article 63
Service providers that operate other Type One telecommunication
business shall comply with the following regulations:
1.
Adopt a separate accounting system by which the amount of
capital and related income of the Services are recorded separately
from any other telecommunications business
2. Refrain from inappropriate bundling of services and related tarrifs
with other Type One telecommunication businesses that obstruct
fair competition
3. Telecommunication equipment for services shall be clearly
separated from the other telecommunication for other Type One
telecommunication business
4. Operate within the principles of fairness; discrimination or any
other action of obstruction of fair competition is prohibited
Article 64
Service providers shall comply with the Regulations on the Equal
Access Services when providing auto telephone services.
Article 65
Service providers shall provide services in a fair manner; refusal to
service application for the Services is not allowed without justifiable
reasons.
Article 66
Service providers shall achieve base station wireless wave coverage of
70% or more of the population and half of the counties and cities in
their respective service areas.
Article 67
Service providers’ accounting system and accounting practice shall
comply with the Accounting Standards and Regulations on the Type
One Telecommunications Enterprises promulgated by the
Commission.
Article 68
Service providers shall comply with Article 26 of these Regulations in
the determination of fee schedule of the Services.
Article 69
Service providers shall provide a considerable grace period while
requesting for overdue payment from subscribers in case of refusal or
postponement of payment, and notify subscribers that the subscribed
services shall be suspended according the service contract if the
overdue payment is not made within a grace period.
Prior to the end of the grace period as provided in preceding Paragraph,
the service provider may not suspend subscribed telecommunication
services of which the payment is overdue.
Article 70
Service providers shall provide service rules in which terms and
conditions pertaining to the services provided by the service providers
and submit to the Commission for review and approval before such
rules may be announced and in force; such rules must be provided at
all business locations and the website for consumers to view. This
Paragraph is also applicable to amendments of such rules.
The service rules as mentioned in preceding Paragraph shall specify
fair and reasonable service terms and conditions and the following
information:
1. Services provided by the service provider
2. Fee schedules for all services and the terms and conditions for fee
adjustment
3. Limitations and terms and conditions of using the subscribers’
basic information
4. Method of indemnity for subscribers in case the service provider’s
charter is revoked or abolished or the services are suspended, or
terminated to the extent that subscribers’ rights are violated
5.
Measures for damage caused by error, delay, interruption, or
transmission failure due to telecommunication equipment
breakdown or service denial
6. Measures for subscribers’ complaints and other items concerning
subscribers’ rights
7. Other service terms and conditions
The Commission may order the service provider to amend its service
rules within a deadline if the harm to consumers’ rights or significant
unfairness is found in such rules.
All required information as provided in Paragraph 2 shall be clearly
stated in the standard service contract between a service provider and a
subscriber and submitted to the Commission for review and approval
before such contract is used. Such contract shall not violate any
regulations concerning telecommunications and business operations.
This Paragraph is also applicable to any changes.
Service providers shall enter into a service contract with every
subscriber using approved standard service contract. This Paragraph is
also applicable to a service provider that adopts pre-paid cards or other
pre-paid fee schedule for the Services.
Any changes or amendments of the standard service contract made
between a service provider and a subscriber shall be announced
through public media before it comes into effect.
Article 71
Service providers shall provide customers with a service quality that
matches with the service quality standard defined by the Commission
for its wireless broadband access network business.
The service quality standard as mentioned in preceding Paragraph shall
be defined by the Commission depending on technique and service
developments at the appropriate time.
The Commission may conduct assessment reviews by itself or through
private institutions at its discretion and periodically announce service
quality assessment reports on all service providers.
Article 72
The Commission shall issue an order of improvement within a time
limit if subscribers’ rights may be damaged due to the service
provider’s inappropriate operation or poor service quality.
Article 73
Interconnection between service provider’s network and other
telecommunication enterprises’ network shall comply with the
Regulations on Network Interconnection among Telecommunications
Enterprises.
Article 74
Service providers shall be obliged to provide the information of
communication history and content for legal investigation or evidence
collection that follows due process in laws.
The surveillance of the content of telecommunications under the
preceding Paragraph shall be carried out in accordance with the
Communication Security and Surveillance Act.
Service providers shall maintain phone records under Paragraph 1 of
this Article for at least six months.
When the service provider constructs, installs, increases or expands its
wireless broadband access system, its telecommunication surveillance
facilities shall be installed in accordance with the applicable provisions
of the Communication Security and Surveillance Act and the
Enforcement Regulations thereof.
Service providers shall maintain telecommunication records for at least
six months.
Service providers shall be obliged to provide telecommunication
records maintained as provided in the preceding Paragraph for the
user’s inquiry.
Article 75
Service providers shall reconcile and record their subscribers’
information; service may only be provided after service provider’s
system log file has been loaded and saved. Such log file shall be
maintained for at least one year after the service contract has expired,
and be provided to the authorities concerned for investigation by due
process in laws. This Paragraph is also applicable to a service provider
that adopts pre-paid cards or other pre-paid fee schedule for the
Services.
The subscribers’ information as provided in the preceding Paragraph
shall include the subscriber’s name, ID number, address and assigned
number.
The loading of the user information mentioned in preceding Paragraph
shall be completed within two days after the service provider has
accepted an application.
Article 76
Service providers that adopt pre-paid cards or other pre-paid fee
schedule for the Services shall re-check the subscriber’s information
every week; if a subscriber has activated service without the
subscriber’s information, then the service provider shall notify the
subscriber to provide the complete information within one week,
otherwise the service provider shall suspend service for the subscriber.
The service provider shall clearly state the regulation provided in the
preceding Paragraph in its business rules and standard service contract.
Article 77
The service provider that intends to temporarily suspend or
permanently terminate partial or all services it provides shall report to
the Commission for approval three months prior to the planned date of
suspension or termination and notify its subscribers one month prior to
the planned date of suspension or termination.
The charter that is granted by the Commission to the service provider
that is approved to suspend or terminate all its services shall be
abolished by the Commission.
The Commission shall take appropriate action at its discretion upon the
expiration of the business suspension or termination of operation as
mentioned in the preceding Paragraph.
Article 78
Service providers shall provide phone number portability service
according to the Regulations on Number Portability.
Chapter 4
Article 79
Dispute Mediation
Service providers shall conduct mutual negotiation for network
roaming and other issues that shall be negotiated according to these
Regulations among service providers in an honest and trustful manner.
If multiple service providers request for negotiations on the same issue,
then the negotiations may be conducted collectively.
The negotiations mentioned in the preceding Paragraph shall reach a
conclusion within three months after the beginning date of the
negotiation and a negotiation report shall be submitted to the
Commission within one month after the negotiation is concluded. If a
service provider does not begin negotiation within one month after
receiving negotiation request or fails to reach a conclusion within three
months, then any party of the negotiation may request for mediation
from the Commission.
Chapter 5
Article 80
Supplementary Provisions
The applicant of this service shall follow the due process that includes
application review, authentication, examination and licensing, and
remit reviewing fee, authentication fee, examination fee as well as
charter fee according to the fee scheduled determined by the
Commission.
Winning bidders shall remit the radio frequency fee according to the
fee schedule determined by the Commission on the date of issuance of
system construction permit for establishment period.
Article 81
The content and format of related documents and charters as provided
by these Regulations shall be determined by the Commission unless
otherwise provided by these Regulations.
Article 82
These Regulations shall come into effect on the date of promulgation.