These Regulations are promulgated pursuant to Paragraph 6, Article 28 of the Telecommunications Management Act（hereinafter referred to as the Act）.
Chapter II Market Definition Principles
To define a specific telecommunications service market, the competent authority may review relevant market information and consider the following factors for the announcement of the specific telecommunications service market:
1. Level of technology and service development;
2. Importance to overall telecommunications service market: level of demands of users or trading counterparts of the service;
3. Region or range of competition engaged: network architecture, network or service coverage associated with the telecommunications business;
4. Framework of and competition of the telecommunications service market: vertical integration and competition in wholesale and retail markets from up- to downstream, considering service demands and alternatives for supply.
The competent authority may request, in written form, the relevant telecommunications enterprise to provide the following information in a specified format while defining the specific telecommunications market pursuant to Paragraph 2, Article 27 of the Act:
1. Capital and services provided;
2. Number of employees hired by the telecommunications enterprise;
3. Financial report and accounting independent
financial report of the telecommunications enterprise and its affiliates of the previous year, reviewed and approved by a registered accountant;
4. Business status of the specific telecommunications service market engaged in, including range of service area, number of users, number of subscribers subscribing a tariff or service program, sales income, and cost analysis;
5. Items, number, and locations of essential facilities owned or controlled as announced by the competent authority;
6. Other information specified by the competent authority.
As the competent authority has defined the specific telecommunications market pursuant to Paragraph 2, Article 27 of the Act, the telecommunications enterprise that provided the specific telecommunications service shall provide relevant information according to the written notification in the format specified by the competent authority.
Chapter III Criteria to Designate Significant market powers
To designate an entity that has significant power to influence market price or service terms according to Subparagraph 1, Paragraph 1, Article 28 of the Act, the competent authority may consider the following factors:
1. Relative scale of business;
2. Market entry barrier（s）;
3. Technical and commercial advantage（s）;
4. Dominating position in capital market or access to capital.
The following criteria may be taken into consideration for the announcements of percentages pursuant to Subparagraph 2, Paragraph 1, Article 28 of the Act:
1. For an entity that has 40% or more of market share in the specific telecommunications market（referred to as the market hereinafter）, the competent authority may consider the market structure for certification of significant market power;
2. For an entity that has 50% or more of market share, it is considered a significant market power.
The market share percentage mentioned in the preceding paragraph shall be determined based on the number of subscribers or revenue from the specific telecommunications service.
A telecommunications enterprise whose total revenues of the previous fiscal year does not reach 2 billion New Taiwan Dollars shall not be considered as significant market powers under these Regulations.
Chapter IV Administrative Procedures
For significant market powers in a specific telecommunications service market designated according to Article 27 and 28 of the Act, the competent authority may enforce necessary special control measures.
In the case aforementioned in the preceding paragraph, the competent authority shall provide public consultation documents to explain the certification of significant market powers and configuration of special control measures to be taken, and organize a public hearing to compile feedback from the parties and stakeholders concerned prior to the measures being enforced.
The consultation results shall be in principle public; however, this does not apply when business confidentiality or official secrets are involved.
The competent authority shall perform a review procedure every three years to review the scope of specific telecommunications service market defined pursuant to Paragraph 3, Article 27 of the Act.
In the case aforementioned in the preceding paragraph, the telecommunications enterprise informed by the competent authority shall submit the relevant information by the given deadline.
The competent authority shall examine the definition of specific telecommunications service market based on the information provided in the preceding paragraph, and organize a public hearing to compile feedback from the parties and stakeholders concerned.
Significant market powers may apply to the competent authority for decertification of significant market power along with relevant information for justification.
Should the application aforementioned in the preceding paragraph, after review by the competent authority, be determined to be incomplete or that more information is required for justification, the applicant shall be required to undertake corrective action within a prescribed period of time. Failure to undertake correct action may result in the application’s rejection.
Chapter V Supplementary Provisions
These Regulations shall become effective on the day of promulgation.