Applications shall be filed with the central regulatory agency for approval and permits to provide cable radio and/or television services.

To provide cable radio/television services, an applicant shall explicitly specify the service area in the application form and operations plan.
To expand the service area, the system operator shall firstly submit its application of the amendment of operations plan to the regulatory agency.
The service area mentioned in preceding two Paragraphs shall be provided based on municipality/county/city as the minimum service area, except for the following situations:
1. Existing system operator continues to carry out the operations in original service area
2. A merger among existing system operators or with other system operators.
Abovementioned existing system operator refers to the legal system operator that runs operations before the implementation of the provisions amended on the 18th of December 2015.
The minimum service area defined in Paragraph 3 shall be adjusted and announced by the central regulatory agency according to the change of administration area.

After the implementation of the provisions amended on the 18th of December 2015, applicant of cable radio/television service shall provide the said service with digitization technology and the operation shall be initiated only if system’s service area exceeds 15% the area’s total administrative households declared by the Ministry of the Interior. The same rule applies to system operators with expanded service area.
The radio/television services provided through abovementioned digitalization technology refers to the system’s function of receiving digital program signals. For example, the head-ends shall process the program signal with digitalization technology and the processed digital program signals may be transmitted to subscribers’ digital terminal facilities through the cable transmission network.

System operators shall install head-ends by themselves.
Any head-end installed by the system operator with service coverage above two of the municipality/county/city shall have a head-end featured with a back-up mechanism.
System operator may lease transmission equipments of the first type telecommunication business or other system operators to assemble a system.
Provisions of preceding three Paragraphs shall be applied when the founder install the system.

The organization of system operator shall be a company limited by shares.
The number system operator’s directors with ROC nationality shall not less than two-third of the total number of directors. The same rule shall apply to the supervisors.
The chairman of the system operator shall possess the ROC nationality.
Total direct and indirect foreign investment in a company operating a cable radio and/or television system shall be less than 60 percent of the total shares issued by the company. Direct foreign shareholding is limited to legal entities; the total shares directly held by foreign shareholders shall not exceed 20 percent of the total shares issued.
The indirect foreign investment stipulated in preceding Paragraph shall be computed by multiplying the percentage of shares or investment of the company operating a cable and/or radio system owned by domestic legal entities with the percentage of foreign shares of said domestic legal entities.
System operator’s minimum paid-in capital shall be specified by the central regulatory agency.
System operator or applicant of cable radio/television services engaged in Type I telecommunications business, wireless radio/television business or satellite radio/television business with restrictions on minimum paid-in capital shall have the minimum paid-in capital calculated separately according to the minimum paid-in capital of that business.
System operator whose capital is above a certain amount shall submit its application of public offering to the securities regulatory authority.
The amount defined in preceding Paragraph shall be announced by the central regulatory agency

The government, political parties, and foundations established with their endowments, and those commissioned by them, may not directly or indirectly invest in privately system operator. Existing situations for the government, political parties, and foundations established with their endowments, and those commissioned by them, that do not meet the provisions of the preceding paragraph prior to the implementation of the revision of this Act, shall be corrected within two years of the implementation of the revision of this Act.
Political party workers, political appointees, and elected public officials may not invest in system operators. Total shareholdings by their spouses, relatives by blood within the second degree of relationship, and lineal relatives by marriage, may not hold more than 1 percent of the issued shares of the said business. System operators that have existing situations that do not meet these provisions prior to the implementation of the revision of this Act shall have them corrected within two years of the implementation of the revision of this Act.
The government, political parties, political party workers, and elected public officials may not be promoters, directors, supervisors, or managerial officers of system operator. For those who already hold these positions prior to the implementation of the revision of this Act, the system operator shall relieve them of their duties within six months of the implementation of the revision of this Act.
The scope of political party workers, political appointees, and elected public officials mentioned in the preceding two paragraphs shall be defined in the Enforcement Rules of this Act.

To establish cable radio and/or television, an applicant shall complete and submit an application form, along with an operations plan, to the central regulatory agency within the publicly announced period.
The operations plan shall explicitly include the following details:
1. Service area
2. Timetable for setting up the system and the scheduled starting date of operation;
3. Financial structure;
4. Structure of the organization;
5. Channel plan and types;
6. Proposals of broadcasting programs that promote our nation’s culture
7. Rates and their calculation formula;
8. Subscriber service;
9. market analysis of the service area
10. Descriptions of the system architecture, engineering technology and facilities;
11. Planning towards the self-installed system, lease of the type I telecommunication business or other system operator’s transmission equipments, head-end backup mechanism.
12. Plan for business promotion;
13. Plan for personnel education and training;
14. Plan for technological development;
15. Chairman, supervisors, managers, shareholders possessing more than five percent of share, or promoter, names of over five percent of subscribers and relevant information. Over five percent of shareholders and subscribers include parties related to the natural person and juristic person. The identification and application of related party shall refer to Article 4 of Financial Holding Company Act.
16. Other items, as specified by the central regulatory agency.
Anyone who has operated the cable radio and/or television business prior to the amendment of this Act made on the 18th of December 2015 shall apply for a change of operations plan in accordance with Subparagraph 6 of Paragraph 2 within a year after the implementation of the amendment of this Act.
The application mentioned in Paragraph 1 may be conducted at anytime.
Should the application or operations plan of cable radio and/or television business be incomplete, the regulatory agency shall notify the applicant to make up the documents in time. If an applicant fails to do so by the given time, the application shall be rejected.
The document format, acceptance procedures and other regulatory matters related to the applications of establishment and preparation shall be enacted by the central regulatory agency.

Where an applicant of cable radio and/or television business is having any one of the following situations, the application shall be rejected:
1. Violation of Paragraph 3 of Article 6
2. Violation of Paragraph 1 of Article 7
3. Violation of Paragraph 1 or Paragraph 2 of Article 8
4. Violation of Paragraph 1 through 4, Paragraph 6 or Paragraph 7 of Article 9
5. Violation of Paragraph 1 through Paragraph 3 of Article 10
6. Violation of Paragraph 1 of Article 15
7. The applicant had its establishment permit or operating license revoked or abolished less than two years due to the violation of this Act.
8. The applicant’s director, supervisor, manager or the applicant is a company in preparation; the promoter violates Article 30 of Company Act.
Regarding the eligibility of persons mentioned in Subparagraph 15 of Paragraph 2 of Article 11, the central regulatory agency shall summon public hearing for the discussion on the promotion of effective market competition, protection of consumers’ rights and benefits, and other matters required for public interests. Should there be any adverse effects, the application shall be rejected.
The applications shall be reviewed according to Paragraph 5 of Article 11 and preceding two Paragraphs. The central regulatory agency shall also enact the review items and standards.

Before issuing the establishment permit, the central regulatory agency shall command the applicant to pay the performance bond. If an applicant fails to establish the business in accordance with provisions or fails to do so during the validity of the establishment permit, the central regulatory agency shall not return a part or the whole of the performance bond and shall revoke the establishment approvals.
Provisions of the preceding Paragraph shall apply to system operators who apply for changes of operations plan for expanding the service area.
The amount of performance bond, payment deadline, payment methods, conditions of refund of a performance bond, and other regulatory matters shall be enacted by the central regulatory agency.

The central regulatory agency shall issue the establishment permit to applicant who has received approval for establishing the cable radio and/or television business.
The establishment permit may not be leased out, loaned out, transferred or designated with guarantee burden to any individual.
Should the founder violate the preceding Paragraph, the central regulatory agency shall abolish its establishment approval and revoke its permit without returning part or the whole of the performance bond.
The founder shall conduct the establishment in accordance with the operations plan. Should the founder wish to change the content of application form and operations plan after obtaining the establishment approval, an application of the change of approval shall be submitted to the central regulatory agency, except where the changes are made pursuant to Subparagraph 4, Subparagraph 12 and Subparagraph 13 of Paragraph 2 of Article 11.

Foreign applicant of investing cable radio and/or television business shall not affect national security, impair or disadvantage the overall industrial development, hinder fair competition or make competition restraints.
Should the applicant violate preceding Paragraph, the regulatory agency may reject the application.
Regarding the examination mentioned in Paragraph 1, the regulatory agency shall command the applicant to provide explanations and other supporting documents in term of following matters:
1. Openness of public accessing
2. Diversity of channel content
3. Protection and feedback of consumers’ benefits
4. Enhancement of operating efficiency
5. Influence to media relevant market
6. Other matters that the regulatory agency deemed to facilitate the public interest

The validity of the establishment permit is three years and the founder shall complete establishment matters and obtain operating license within the validity. Those who are unable to complete the establishment on time shall state the reason and file a request with the central regulatory agency to seek for an extension within a one-month period at three months prior to the expiry date. The extension shall not exceed two years and is limited to one time only.
The abovementioned establishment matters include corporate establishment registration or change of registration, system installation and system examination.
System operators who wish to expand the service area shall complete additional system installation within three years. Those who fail to do so within three years shall state the reason and file a request with the central regulatory agency to seek for an extension within a one-month period at three months prior to the expiry date. The extension shall not exceed two years and is limited to one time only.
Founder’s paid-in capital shall correspond to Paragraph 6 and Paragraph 7 of Article 9 upon the completion of corporate establishment registration or change of registration

If there is a change in the content of the establishment permit, an application for permit renewal shall be filed with the central regulatory agency by the founder within 15 days after the change. If the establishment permit has been lost, an application for reissuing an establishment permit shall be filed within 15 days.

Applications of the network established by the founder or system operator through constructions shall be submitted to the right-of-way management agency; through attachment the said applications shall be submitted to relevant telecommunication businesses, electricity enterprises and other agencies.
Founders or system operators who wish to construct the network may lease existing underground system. The network constructed or attached by the said party shall be carried out according to relevant regulations.

If the network of the founder or system operator must pass through other people’s land or building in order to be constructed or to save the enormous construction expenses, the founder or system operator may conduct the establishment by choosing locations or methods with the least damages and shall make a compensation with equal amount.
Regarding abovementioned network construction, a written notification shall be sent to the owners or occupants of the land or the buildings thirty days before the construction.
After the network construction is implemented according to Paragraph 1, the owners or occupants of the land or the buildings may request to make changes on the construction due to changes of circumstances.
Those who are against of circumstances mentioned in preceding three Paragraphs may request the mediation committee within the jurisdiction to mediate or file a complaint for civil action.

Regarding the system’s service range, the founder or system operator shall have its service range covered at least fifty percent of the administrative households in applied service area within the validity of the establishment permit.
Where the service range of installed system is more than fifteen percent of the total administrative households in applied service area, the founder may apply for system examination.
Once the system’s qualification is approved through the examination, the founder may request the regulatory agency to issue the operation approval and permit.
System operators shall initiate the operations within three months after obtaining the operation permit and license, unless system operator provides justifications and except those who have received approvals from the central regulatory agency.
System operators who have obtained operation permit and license according to Paragraph 3 shall, while initiating the operations, complete system installation for a service range that is fifty percent the total administrative household in applied increasing service area. Within the period prescribed in Paragraph 1 of Article 16 if its system service range is less than fifty percent of the total administrative household in service area as regulated.
System operator, who attempts to expand the service area and whose service range of additionally installed systems is more than fifteen percent of the total administrative household in applied increasing service area, shall submit its application of system examination to the central regulatory agency. The said system operator is then allowed to expand its service area once its qualification is approved through the examination.
System operators who apply for examination according to preceding Paragraph shall have its paid-in capital complied with Paragraph 6 and Paragraph 7 of Article 9.
When the system operator mentioned in Paragraph 6 initiates the operations and its service range fails to reach fifty percent of the total administrative households in applied increasing service area, it shall increase the system installation to enlarge the system’s service range to fifty percent of the total administrative household in applied increasing service area by the deadline prescribed in Paragraph 3 of Article 16.
System installation conducted by system operator, implementations of the head-end backup mechanism, system examination, technical standards, engineering assessment, system maintenance, and other engineering and technical regulatory matters shall be enacted by the central regulatory agency.
For system examination applied in accordance with Paragraph 2 and Paragraph 6, its transmission facilities of leased type I telecommunications business or other system operators, and head-ends leased from or shared with other system operators as its backup head-ends shall be equipped with leasing or sharing evidentiary documents.

The operating license of a system operator shall be valid for nine years.
If there is a change in the contents of the aforementioned operating license, an application for a new license shall be filed with the central regulatory agency within 15 days of the change. If the operating license has been lost, an application for reissuing an operating license shall be filed within 15 days.
If the operation approval remains valid after the amendment of this Act is made on the 18th of December 2015, the validity of the operation approval shall be 12 years starting from the date of issuance.

Terminal equipments for connection to the system shall conform to technical specifications, and be certified and approved before the use and sale. The technical specifications shall be prescribed and announced by the central regulatory agency.
The central regulatory agency shall enact regulations regarding the compliance approval mode and procedure of the terminal equipment mentioned in preceding Paragraph, the issuance / renewal / replacement / termination of the certificate of approval, and the embossment, marking and use of Approval Label, as well as the regulations with respect to the supervision and administration of compliance approval.
The examination of terminal equipment shall be carried out by the central regulatory agency or certification body commissioned by the central regulatory agency.
Rules governing the qualifications of the certification body as stipulated in preceding paragraph, the delegated authority, cancellation or termination of the engagement, and supervision related to the engagement shall be enacted by the central regulatory agency. The terminal equipment that has to be examined as mentioned in Paragraph 1 shall be announced by the central regulatory agency.
When system operators install the system in the building to provide the cable radio and television service, the equipments and space to be installed by the building constructor or the owner shall refer to Article 38 and Article 38-1 of Telecommunication Act.