Regulations on Wireless Broadband Access Services

（December 17, 2009）

(Unofficial Translation)

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.

1. 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.
2. Wireless Broadband Access Network: A communications network consisting of a wireless broadband access system and telecommunications facilities, cables and equipment.
3. 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.
4. Mobile Station: a wireless terminal facility used for accessing wireless broadband service.
5. Base Station: A land-based wireless communication backhaul for communication among mobile stations and other users.
6. 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.
7. Subscriber: A user that registers or enters a contract with a service provider for using wireless broadband access provided by the service provider.
8. Emergency Telephone: The telephone used for reporting fire, theft or other emergencies.
9. Important Public Construction: It refers to high speed rail, railway, mass rapid transit, freeways, highways, airports, harbors, tunnels, or other public constructions used by the public with a certain scale and with the verification of other authorities.
10. Multimedia Content Service: An interactive media platform providing audio, modem, and video content services set up by a service provider.
11. Channel Service: Programs and advertisements that are arranged by content service providers and which broadcast order and time cannot be changed by users.

Article 3

The competent authority of the Services is the National Communications Commission (hereinafter referred to as the “Commission”).

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. Charter A2: South Area; 30MHz (2565~2595MHz)
3. Charter B1: North Area; 30MHz (2595~2625MHz)
4. Charter B2: South Area; 30MHz (2595~2625MHz)
5. Charter C1: North Area; 30MHz (2660~2690MHz)
6. 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. Temporary winning bidders of multiple bidding subjects must be determined by drawing.
2. 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.
3. 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.
2. 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 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. Refusal to refund the reviewing fee and bid bond and rejection of application as described in Article 20.
4. Disqualification or revocation or annulment of award of bid as described in Article 21.
5. Refusal to refund the reviewing fee bid bond and rejection of application as described in Paragraph 2 or 3 of Article 22.
6. Refusal to refund bid bond as described in Paragraph 2 of Article 29.
7. 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

After obtaining the installation permit and completing the changing registration for the company, the winning bidders shall apply for the permit of system installation and for the allocated frequency to the Commission with the following documents:

1. Application forms of the system installation permit and the frequency allocation
2. Copies of certificates of the changing registration for the company
3. Documents or certificates of the confirmation to the establishment of the telecommunications supervising systems or facilities after the negotiation with the telecommunication supervising and executing authorities
4. System Construction Plan: The plan includes system structure, name and quantity of the installation facility, quantity of base stations and the time schedule in the business plan for passing the system technology examination regulated in Paragraph 1 of Article 39.

After licensed with the permit, the service providers shall apply for the system installation permit for the operating duration with application forms of system installation permit, certificates of confirmation to the establishment of the telecommunications supervising systems or facilities after the negotiation with the telecommunication supervising and executing authorities, and the system construction plan (including system structure, name and quantity of the installation facility, and the quantity of base stations and time schedule in the business plan for achieving the wireless wave coverage ratio regulated in Article 66.)

If the required documents mentioned in the preceding two paragraphs for the application of the system installation permit are incomplete, or if the content of the required documents is incomplete or incorrect in its terms, the Commission shall give a notification and request for a remedy in a time limit. If the applicant does not make a remedy in the time limit, or if the remedied documents remain incomplete, the application shall be rejected.

After the winning bidders or service providers acquire the system installation permit, they shall construct the wireless broadband access network according to the system construction plan as mentioned in point 4 of Paragraph 2 and Paragraph 2. If the construction is a base station, the carrier shall acquire the station installation permit before construction. However, in order to comply with the establishment of important public constructions, the station installation can be constructed without acquiring the station installation permit after exclusively approved by the authorities if the carrier submits the letter of consent issued by the authorities of important public constructions or buildings.

The valid duration of the permit in the period of constructing the system is one and half year. If the construction cannot be completed in the valid period, the explanation for the incompletion shall be stated for the application for the extension. The extension shall not exceed one year and can be applied for once only. If there is any delay, the Commission can revoke the construction consent and the system installation permit and does not refund the performance bond deposit, or the Commission shall notify the guarantor bank to perform the suretyship.

Extension due to the force majeure shall be allowed to be applied according to the time delayed by the force majeure without the extension restriction regulated in the preceding paragraph.

If the system installation permit mentioned in the preceding two paragraphs expires, the extension of the permit for construction period shall be applied for simultaneously.

The system installation permit in the preceding five paragraphs shall not exceed the valid period of the construction permit. When the winning bidders or service providers change the system construction plan mentioned in point 4 of Paragraph 1 and Paragraph 2, the explanation for the alternation shall be stated to the Commission for approval. However, the alternation shall not influence the performance bond deposit and the responsibilities mentioned in the business plan.

If the winning bidders or service providers want to construct the follow-up network which is not included in the system construction plan the Paragraph 2, a list of name and quantity of system construction facilities shall be submitted for the application to the Commission for the system installation permit.

Those who do not acquire the system installation permit according to these Regulations cannot establish any or the whole of the wireless broadband access network.

The winning bidders or service providers shall divert the developed network of wireless broadband access experiment as one of its system network. The developed network of wireless broadband access experiment shall be established by themselves with approval or by other administrators with assignment and approval.

If the bidders or service providers adopt the diversion mentioned in the preceding paragraph, the diversion shall be included in the system construction plan when applying for the system installation permit according to Paragraph 1. Or the bidders or service providers shall apply for the alteration of the system construction plan according to Paragraph 8 or shall apply for the follow-up network installation permit to the Commission according to Paragraph 9. If the facilities are located in the same places before and after the diversion, they shall be free from dismantle before acquiring the installation permit.

If the subscribers who want to continue to use the original service after the diversion of the developed network of the wireless broadband access experiment, they can be the subscribers of the services when the winning bidders or service providers comply with the Regulations in Paragraph 1 of Article 12.

Article 37

The winning bidders or service providers shall apply for the radio station installation permit to the Commission with the submission of the following documents:

1. The application forms of the radio station installation and relevant information of specification
2. Affidavit for the radio station installation of the services

According to Paragraph 4 in the preceding Article, through the approval by authorities, before acquiring the radio station installation permit, those who construct the base station shall submit the certificates approved by authorities mentioned in the preceding Article, in addition to the documents mentioned in the preceding paragraph.

If the winning bidders or service providers fail to follow what are required in the affidavit, the Commission can revoke the installation permit. If there is any change or alternation to the affidavit, the winning bidders or service providers shall give another affidavit and report to the Commission for reference.

The valid period of the radio station installation permit is one year. If the winning bidders or carries cannot complete the installation in the time limit, the explanation shall be stated to the Commission for the application for extension within one month during the last two months before the deadline. The extension cannot exceed six months and can be applied for once only.

During the installation of the radio station, the radio station shall not emit radio wave except that the winning bidders or service providers apply to the Commission for the short-term test or that the Commission undergoes the on-site technical inspection. The duration of the short-term test cannot exceed five days.

After the radio station is installed and after it is tested and qualified by the Commission, the Commission shall issue the radio station license whose valid period is five years. The application for renewing license shall be submitted within one month during the last two months before the expiration. The valid period of the renewed license shall start from the next date when the old license is expired.

When the renewal of the license mentioned in the preceding paragraph is dealt with, a technical inspection shall be conducted according to the Commission's discretion. The Commission shall issue the renewed license after the inspection is passed.

When the radio station installation involves with structural safety and rights of using base stations of the radio station buildings or location, the winning bidders or service providers shall comply with the relevant regulations of construction management and acquire related approval from the competent authorities.

The regulations concerning the station inspection techniques 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 administrative authorities in accordance with applicable laws and regulations for using the land needed for rolling out the circuit lines of the network.
2. 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 stations established by the winning bidders or service providers, the microwave stations, or the satellite earth stations shall not be established without the permission according to Paragraph 4 of Article 36, Article 37, and the preceding Article. Without the license issued in the inspection, stations cannot be used.

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. 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,
2. Any failure to make effective use of frequency resource and no improvement is made as ordered by the Commission
3. Entire or partial service is suspended due to violations of laws
4. Unilaterally pause or termination of entire or partial service without approval
5. 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 the same service area, the applicant shall submit a report that explains the influence that the merger may impose on the development of the market for the Services, the overall economic benefits, and the reduction of unfavorable competition.

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%.

However, in case that no other service provider exists in a business area (city, county) of the said service provider, resulting in no co-constructed base stations, the establishment of co-constructed base stations may be placed on hold by granting the approval of NCC. The schedule of base station co-construction shall commence until two (2) or more service providers exist in the said business area (city, county).

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

The channel content on the interactive media platform set up by the service provider shall comply with the content provided by licensed operators in accordance Radio and Television Act, Cable Radio and Television Act, Satellite Broadcasting 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

When a service provider has set up an interactive media platform for multimedia content service, besides the rules stipulated in the preceding paragraph, service rules shall specify the following information:

1. To assure the sales methods of the providers of the multimedia content service actively and clearly inform consumers of payment requests.
2. To provide a channel interface and storage facilities for program content.

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 Dispute Mediation

Article 79

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 Supplementary Provisions

Article 80

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.