To apply for operating this business, the applicant shall be a company limited by shares and established in accordance with the Company Law. Its chairman shall have the nationality of the Republic of China. The total number of the shares held by foreigners shall comply with Paragraph 3 or 5 in Article 12 of these Regulations.

The same applicant shall not apply for two or more than two applications of this business.
If different applicants have any of the following situations, they will be regarded as the same applicant:
1. The applicant holds more than one and half of another applicant’s voting shares, or the applicant’s investment amount exceeds one and half of another applicant’s total capital.
2. The directors of the applicants have more than one and half the same directors of another applicant.
3. More than one and half voting shares or the total capital of the applicant and another applicant are held or owned by the same shareholders.
4. Different applicants are both subordinated to a third party at the same time.
5. There are controlling and subordinating relationship exists among the controlling companies of different applicants.
The controlling and subordinating relationship as mentioned in item 4 and 5 of the preceding paragraph is referred to the relationship mentioned in item 1, 2, and 3 of the preceding paragraph.
The number of shares in item 2 shall be calculated according to Article 369-11 in the Company Act.
If one shareholder of one applicant holds the shares of the other applicant, except that its shareholding ratio in one of applicants is not restricted, its shareholding ration in any other applicants shall not exceed ten percent.
Item 1 and 5 shall also apply to the applicant before the applicant acquires the concession license after the applicant wins the bidding.

If different applicants have any of the following situations, they will be regarded as the associated applicants:
1. One of the applicants holds the other applicant’s shares that are more than fifteen percent of the total capital of such other applicant.
2. The same shareholders hold different applicants’ shares that are more than one third of each applicant’s total capital.
The number of shares in item 2 shall be calculated according to Article 369-11 in the Company Act.
The associated applicants shall coordinate to designate one of the applicants as the qualified applicant in the time limit regulated by the authority. If the coordination cannot be completed, the qualified applicant shall be decided by a lot drawing which will take place at the time and place designated by the authority.
If the applicant decided through the coordination or the lot drawing or the applicants do not attend the lot drawing, the application shall be regarded as countermand. The reviewing fee and the accrued interest will not be refunded while the bid deposit will be refunded.
This article shall also apply to the applicant before the applicant acquires the concession license after the applicant wins the bidding.

The applicant shall conduct the testing of receiving in the condition of the frequency regulated in Article 7. If the testing result reveals any suspicion that needs to be clarified, the applicant shall apply for information inquiry to the authority before the deadline of the application. The authority of the band of the winning bidding shall be responsible for clearing and coordinating the frequency according to related regulations.

The applicant applying for operating the franchised businesses shall submit the following documents to authorities for application in the announced application period:
1. Application
2. Business Plan
3. A photocopy of the receipt of remittance record of bid deposit
4. A photocopy of the receipt of remittance record of reviewing fee
The business plan mentioned in the preceding paragraph shall contain the following items:
1. Operating services
2. Service districts
3. General description of telecommunications facilities:
(1) Adopting the types of IMT-2000 telecommunications technology announced by the International Telecommunications Union.
(2) The construction plan of system facilities and the schedule.
(3) System structure, movement principles, communication types, and service types.
(4) Utilization plan of radio frequency.
4. The financial structure: The estimated total capital and the total paid-in capital after the applicant wins the bidding and completes the registration of the company alternation, the estimation of the capital resources in the future five years, and the utilization plan of the capital
5. The technological capacity and the development plan
6. Charge Standards and the calculating methods
7. Personnel organization and the description of the shareholding: Copies of company license, a name list directors and shareholders who holds one percent of shares, the calculation form of the foreigners’ shareholding ratio, the report on the relationship of the subordinating companies, and the merging business report of the controlling companies
8. The scheduled date of starting operation
The contents and format that shall be provided in the documents regulated in Paragraph 1 and 2 shall be decided and announced by the authority.
In order to verify the situation of the same applicant as mentioned in Article 9 and that of the associated applicants as mentioned in Article 10, the authority may request the applicant to submit relevant supplemental documents in a time limit if necessary. This regulation shall apply to the applicant before the applicant wins the bidding and acquires the concession license as well.
After the applicant files the application according to Paragraph 1, the submitted documents will not be returned.
The bid deposit is one billion New Taiwan dollars, and the reviewing fee is 200 thousand New Taiwan dollars. After the applicant pays the bid deposit and the reviewing fee, the applicant shall not request for refund before the bidding result is announced unless other rules are stated in these Regulations.
The bid deposit and the reviewing fee shall be paid by electronic remittance to the account designated by the authority. The company name, address, and telephone of the applicant shall be written when the remittance is made.

If any of the following situations happens to the application filed by the applicant, the remedy shall not be made, and the application will not be accepted. The bid deposit and the reviewing fee shall be refunded without interest within 7 days from the next day when the not-to-accepted disciplinary citation is arrived:
1. The application is filed after the application deadline.
2. The application or the business plan is not submitted.
3. The bid deposit or the reviewing fee is not paid according to regulations or the paid bid deposit or the paid reviewing fee is not sufficient.

If any of the following situations happens to the application filed by the applicant, the remedy shall not be made, and the application will not be accepted. The bid deposit, the reviewing fee, and the accrued interest will not be refunded. If the above payments are refunded, they shall be reclaimed:
1. Any violation to Paragraph 1 and 5 in Article 9
2. The items contained in the application documents regulated in Article 8 to 10 are untrue or fraudulent statements.
3. The application documents are forged or altered.
4. Any conduct that will affect the fairness of the bidding, such as bid fixing.
If any of the following situations happens to the application filed by the applicant without the existence of the situations regulated in Article 13, the authority shall notify and request for remedy. If the remedy is not made or the content of the application is incomplete after remedy, the application will not be accepted. The bid deposit shall be refunded without interest within 7 days from the next day when the not-to-accepted disciplinary citation is arrived. The reviewing fee and the accrued interest will not be refunded.

If any of the matters in Paragraph 1 and item 1 and 3 in Paragraph 2 of Article 14 happens to the bidder during the bidding process, the applicant’s right of participating the bidding will be revoked or annulled. If any of the above matters are found after the bidder wins the bidding, the winning bidding will be revoked or annulled. The paid bidding price and its interest will be refunded without interest.
For the above situation, the bid deposit, the reviewing fee, and the accrued interest will not be refunded. If they are refunded, the refund will be reclaimed.

If the applicant withdraws the application, the paid bid deposit and the reviewing fee shall be conducted according to the following regulations:
1. If the application is withdrawn before the application deadline announced by the authority, the bid deposit and the reviewing fee will be refunded within seven days from the next day when the withdrawing application arrives.
2. If the application is withdrawn before the list of the qualified bidders is announced, the bid deposit will be refunded without interest within seven days from the next day when the withdrawing application arrives. The reviewing fee and its interest will not be refunded.
3. If the application is withdrawn after the list of the qualified bidders is announced, the bid deposit, the reviewing fee, and the interest will not be refunded. If they are refunded, the refund will be reclaimed.

After the qualification reviewing is completed according to regulations in the preceding section, the authority shall announce the name list of the qualified bidders.

The bidding operation is conduced by the authority.

The bidding date and place shall be announced by the authority seven days before the bidding date.

The authority shall hold an orientation of the budding process in the bidding place fourteen days before the bidding date for the applicants to understand the bidding process.
Each applicant shall designate three to six representatives bringing the letter of attorney and relevant certificates to participate in the whole process of the orientation and to sign the declaration.
The declaration mentioned in the preceding paragraph shall state that the applicant’s representatives clearly understand the bidding process and are willing to obey the regulations and relevant laws of the bidding operation.

The issuance of the license of this business will be conducted by the way of open, simultaneous, ascending, and multi-round bidding methods. The bidding operation is executed according to the electronic bidding quotation methods through the internet of the authority. The bidding process shall be conducted in the way of separating each bidder.

The authority shall prepare a bidding room in the bidding place for conducting the bidding process.
Each bidder can designate no more than six representatives into the bidding room. Two of them have had participated in the process orientation and sign the declaration.
The bidder’s representatives shall submit the letter of attorney before entering the bidding room. Before the finish of each round, the representative cannot leave the bidding room.
If the bidder’s representatives who sign the declaration regulated in Article 20 are less than two persons, the bidder will lose the qualification of bidding.
Without the permission of the authority, each bidder’s representative shall not carry any telecommunications facilities into the bidding room. If there is any violation, the facilities shall be compulsorily taken into custody.
Each bidder’s representative in the bidding room can contact the company only in the way designated by the authority.
Each bidder and the representative cannot participate in any conduct that will affect the fairness of the bidding process or that violates regulations after the authority announce the name list of the qualified bidders and before the final bidding starts.
If the bidder or the representative has any conduct that will affect the fairness of the bidding process or that violates regulations, the authority may notify for remedy in a time limit. If the remedy is not made in the time limit, the bidding qualification will be cancelled.

The bidding shall start at nine o’clock in the morning and finish at five o’clock in the afternoon on each bidding date.
The allocation for the beginning and finish time of each round shall be announced by the authority thirty minutes before the time of starting bidding quotation in each round. The aforementioned time shall submit to the authority’s time.
Each first minimal bid price of the bidding target shall be the base price plus one percent. Each first maximum bid price of the bidding target shall be the base price plus seven percent.
The authority shall announce the first minimal bid price and the maximum bid price of each bidding target thirty minutes before each round starts.

The bidder shall quote the price according to the following regulations:
1. The bidder can quote the price only once for each round.
2. The bidder can only choose one of the bidding targets for each price quotation.
3. The highest bidding quotation for each bidding target shall be the temporary winning bidder of the bidding target, and the bidding quotation shall be the temporary price of the winning bid. The temporary winning bidder of each bidding target in the end of each round shall not quote the price to any bidding target in the next round in the bidding process unless the winning bidder lose the qualification of the temporary winning bidder due to a higher bidding quotation submitted by other bidders.
4. Besides each first bidding price of the bidding target shall comply with Paragraph 3 in Article 23, each quotation price submitted by the bidder shall equate or be more than the temporary winning price plus one percent of that price and shall equate or be less than the temporary winning price plus seven percent of that price.
5. The unit of each quotation price submitted by the bidder shall be million New Taiwan dollars.
6. The bidder’s representative shall quote the bidding price in the way of electronic quotation method, shall print the quotation every time when the electronic quotation is finished, and shall sign on it to submit to the authority.

If any of the following situations exists, the quotation shall be regarded as an ineffective one:
1. The non-temporary winning bidder does not quote the price in the time limit of each round.
2. The bidder’s quotation does not comply with Paragraph 1 to 5 in the preceding Article.

The authority shall announce the temporary winning bidder and the temporary winning price for each bidding target immediately. Upon the finish of each round, the authority shall announce the temporary winning bidder and the temporary winning price, the bidder who submit ineffective quotation, its quotation price, and related facts.

Except the first round, the bidder may waive the bidding right no more than three times in the bidding process. If the bidder temporarily waives the bidding right more than three times, the bidder’s bidding qualification will be cancelled.
Any of the following situations will be considered as a waiver:
1. The non-temporary winning bidder does not quote the price in each round.
2. The price of quotation in the round is regarded as the ineffective one through verification.
During the bidding process, except that the bidder temporarily wins the bidding, the bidder may withdraw from the bidding process in written form.
The authority may revoke the bidder's qualification if the bidder does not quote the price in the first round or the quotation price is ineffective.

During the bidding process, if any force majeure occurs or the bidder commits any significant violation, or if any other situation that makes the bidding process inappropriate to continue, the authority shall announce the suspension of the bidding process and shall decide the follow-up arrangement depending on situations.

The bidding process shall finish when all bidders entitled for quotation do not quote the price and they do not temporarily waive the right.
When the bidding process finishes, the winning price of each bidding target shall submit to the price quoted by the temporary winning bidder of each bidding target at that time then.
After the bidding process, the authority shall announce the name list of winning bidders and the winning bidding price of each bidding target.

If any of the following situations happens to the applicant, the bid deposit shall be refunded without interest:
1. The bid deposit paid by the bidder who participates in the bidding but does not win the bidding shall be refunded within seven days from the next date when the authority announces the name list of the winning bidders.
2. The bid deposit paid by the winning bidder who participates in the bidding shall be refunded after the winning bidder pays the winning bidding price and the first install payment. The winning bidder may transform the paid bid deposit without interest into a part of the first install payment.
If any of the following situations happens to the applicant, the bid deposit will not be refunded. If the bid deposit is refunded, it shall be reclaimed:
1. After winning the price, the winning bidder does not pay the winning bidding price at one time or the first install payment, the remaining sum of the winning bidding price, and the guarantee for the interest according to the regulations.
2. During the bidding process, the bidder does not quote the price in the first round or the quotation is ineffective.
3. The bidder's qualification is revoked by the authority according to Paragraph 7 and 8 in Article 22.

When the following disciplinary actions are taken to the case applied for operating the business, the person who receives the disciplinary action will not given opportunities to state opinions:
1. The reviewing fee and its interest are not refunded according to Paragraph 4 in Article 10.
2. The application is not accepted according to Article 13.
3. The application is not accepted, and the reviewing fee and/or the bid deposit (is)are not refunded according to Article 14.
4. The bidding's qualification or the qualification of the winning bidder is revoked or canceled according to Article 15.
5. The reviewing fee or the bid deposit is not refunded according to Paragraph 2 or 3 in Article 16.
6. The loss of the bidding qualification or the loss of the bidding according to the bidding operation in Section 3.
7. The bid deposit is not refunded according to Paragraph 2 in Article 30.

The winning bidder may choose to pay the winning bidding price at one time or pay it in installments by telegraphic transfer to the account designated by the authority. Once the method of payment to the winning bidding price is decided, it cannot be changed.
If the winning bidder decides to pay at one time according to the preceding paragraph, the winning bidder or the carrier shall finish the payment within 30 days from the date when the authority announces the name list of the winning bidders.
If the winning bidder decides to pay in installments, the winning bidder or the carrier shall pay the winning bidding price and its interest according to the following regulations:
1. The winning bidder shall pay 30 percent of the winning bidding price within 30 days from the day when the authority announces the name list of the winning bidders. If necessary, the duration for payment can be extended for 90 days at most, and the interest shall accrue daily at the basic lending rate published by the Bank of Taiwan on the day when the authority announces the name list of the winning bidders. The performance guarantee issued by domestic banks for the payment of the winning bidding price and the delay interest shall be submitted within 30 days from the day when the authority announces the name list of the winning bidders.
2. From the next year of the payment deadline regulated in the preceding item, the winning bidder shall pay the winning bidding price and the interest calculated according to the form in Attachment between January 16th to 31st every year. The interest is calculated according to the preceding year for the unpaid remaining sum of the winning bidding price. The interest of the first year shall be calculated from the next day of the payment deadline regulated in the preceding item to December 31st in that year.
3. The interest of the preceding item shall be calculated according to the annual basic lending rate of Bank of Taiwan prevailing in the year before the payment.
If the winning bidder pay the winning bidding price according to the first item in the preceding paragraph, the winning bidder shall submit the payment guarantee issued by domestic banks for guaranteeing the payment of the winning bidding price and the interest within 120 days from the day when the authority announces the name list of the winning bidders. The guarantee period shall be 10 years plus 3 months staring from the date of submission of the performance guarantee.
The amount of the payment guarantee for the interest of the winning bidding price in the preceding paragraph shall be calculated according to the basic lending rate published by Bank of Taiwan on the day when the authority announces the winning bidders.

• Attachment.pdf

The domestic banks mentioned in the preceding Article include:
1. The foreign banks incorporated according to the Banking Law.
2. The foreign banks referred in Article 116 of the Banking Law.

After the winning bidder or the carrier pay the remaining sum of the winning bidding price and its interest according to Item 2 of Paragraph 3 in Article 32, the authority shall notify the guarantee bank to be discharged from the guarantee responsibility of the paid remaining sum of the price.

If the winning bidder does not obey Item 3 in Paragraph 3 and Paragraph 2 and 4 of Article 32, the winning of the bidding lose its effectiveness.
If the winning bidder or the carrier does not obey Item 2 in Paragraph 3 of Article 32, the authority shall notify the guarantee bank to carry out the responsibility for guarantee of the payment. If the price is still unpaid, the authority shall revoke the establishment consent, the permit and concession of system installation, and the allocated frequencies. The paid interest of the winning bidding price will not refunded.

If the winning bidder at least makes the 30 percent of the payment of the winning bidding price according to Paragraph 2 of Article 32 or according to Item 1 in Paragraph 3 and Paragraph 4 of Article 32, the authority shall grant the winning bidder the establishment approval.
The valid duration of the establishment approval starts from the date when it is licensed to December 31st in 2004. If the winning bidder cannot complete the establishment and acquire the concession licensed during the valid period, the winning bidder shall apply for extension with explanation within one month and three months before the expiration. The extension shall not exceed one year and can only be applied for once. If the deadline is due, the authority shall revoke the establishment approval, the permit of system installation, and the allocated frequencies. The paid winning bidding price and the paid interest will not be refunded.

After the winning bidder acquires the establishment approval, the winning bidder shall complete the registration for the alternation of the company in order to comply with these Regulations.
When the winning bidder conducts the registration for the alternation of the company according to the preceding paragraph, its paid-in capital shall comply with Paragraph 5 and 6 of Article 4.

After the winning bidder acquires the establishment approval and complete the registration for the alternation of the company, the winning bidder shall apply for the permit of system installation with the following documents to the authority:
1. Application of frequency allocation and the permit of system installation
2. Copies of the registration for the alternation of the company
3. Certificates of the establishing confirmation of communications supervising systems or facilities through the negotiation with the executive authority of communications supervision
4. The plan of system construction: including system construction, names and quantity of construction facilities, the quantity of base stations and timetable for achieving the coverage rate of electric power regulated in Article 67
If the content in the documents of the application for the permit of system installation mentioned in the preceding paragraph is incomplete or is incorrect in its items, the authority shall notify for remedy in a time limit. If the remedy is not made in the time limit or the content is incomplete after remedy, the apllication shall be turned down.
After the winning bidder acquires the permit of system installation, the winning bidder shall construct the third generation mobile telecommunications network according to the plan of system construction mentioned in Item 4 of Paragraph 1.
When the winning bidder or the carrier change the plan of system construction mentioned in Item 4 of Paragraph 1, the explanation shall be submitted to the authority for approval.
If the winning bidder or the carrier constructs the follow-up network which is not included in the plan of system construction mentioned in Item 4 of Paragraph 1, the name and quantity list of the system construction facilities shall be submitted to the authority for approval of the system installation.
Without the permit of system installation according to these Regulations, any of the third generation mobile telecommunications network cannot be constructed.
The competent authority shall consult with relevant government entities in consideration of national security when approving or revoking a system development plan.

The affairs of installation permits and radio station licenses of base stations installed by the winning bidders or carriers shall comply with the Regulations for Administration of Base Stations of Mobile Communications Network Businesses.

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If the amount of the constructed base stations reaches more than 250, after the winning bidder or the carrier completes the construction of relevant exchange facilities and connection telecommunications facilities, the winning bidder or the carrier shall apply for the system technical examination to the authority. After passing the examination, the authority shall issue a certificate to prove the passing of the system technical examination.
If the system exchange facilities are added or altered after the carrier acquires concession, the carrier shall report to the authority for approval. After the addition or the alternation is completed, the carrier shall apply for the system technical examination to the authority. After passing the examination, the authority shall issue a certificate to prove the passing of the system technical examination and allow the system exchange facilities to operate.
The technical regulations concerning the system examination shall be promulgated by the authority.

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After acquiring the permit of system installation, the winning bidder shall construct the approved systems. The connecting circuits among the winning bidder’s or carrier’s systems and other systems shall be rented from carriers operating fixed telecommunication network service and fixed satellite service. However, if the connecting circuits are in the same building, through the approval of the authority, they are not restricted in this regulation.
The connecting circuits facilities of the winning bidder's the third mobile telecommunications system network can be constructed after the winning bidder acquires the approval from the authority.
When the circuits of the approved construction are self-constructed wire optic fiber or cable, the construction shall comply with the following regulations:
1. The land for the laid internet pipelines shall be applied according to relevant regulations to the administrative authority.
2. If the laid internet needs to attach to the pipelines of public business or its related facilities, it shall be conducted according to relevant regulations.
If the circuits of the construction in Paragraph 2 are microwave links, the carrier shall apply for the permit of radio station installation. The needed frequencies will be allocated by the authority depending on the situation of the relevant technical development and the utilization of frequency resources.
Items of frequency allocation and station installation permit for circuits of the construction mentioned in the Paragraph 2, such as microwave links, shall be applied for according to relevant rules of Regulations Governing Microwave Station Establishment and Utilization of Type I telecommunications business. Items of frequency allocation and station installation permit for satellite links shall be applied for according to relevant rules of Regulations Governing Satellite Communications Business.

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When the winning bidder applies for the concession license, the winning bidder shall submit the following documents to the authority for application. After approved by the authority, the concession license will be issued:
1. Application for concession license
2. Photocopy of the letter of consent for establishment
3. Photocopy of the certificates of the corporation registration
4. Certificates of eligibility of system technical examination
5. Certificates of tariff approved by the authority for reference
6. Certificates of operation regulations approved by the authority
7. Certificates of a sample of the service contract between the operator and users which is approved by the authority

The following items shall be contained on the concession license:
1. Name of the operator, its representative, and the location of its company
2. Type of business
3. The amount of total capital and total paid-in capital
4. Service areas
5. Used spectrum
6. Valid term
7. Issuance date

The valid duration of the concession license starts from the issuance date to December 31st in 2018. After this date, the license loses its validity.
When the concession license in the preceding paragraph expires, the method of disposition is decided by the authority.

The carrier shall starts its operation within six months from the day when the concession license is acquired. If the carrier does not starts its operation in the time limit, the authority shall revoke the concession and the allocated frequencies. The paid winning bidding price and the interest will not be refunded.
If the winning bidder or the carrier violates any relevant regulations, after the authority revokes the establishment approval and the concession, the paid winning bidding price and the interest will not be refunded unless there are other rules provided in these Regulations.

If the letter of consent for establishment, the installation permit, the station license, and the concession licenser are lost or damaged, they shall be applied for to the authority with explanation. If there is any alternation to the items specified on them, the applicant shall apply for the renewal.
The letter of consent for establishment, the installation permit, the station license, and the allocated radio frequency shall not be rented, lent, transferred encumbered to others unless there are other regulations in laws provided.