Chapter 2: Operation Authorization
Section 1: General Provisions
Article 4
The business items and the range of business for this business to open operation shall be as follows:
1. Digital Low-Power Wireless Telephone Business: means business that Operators establish digital low-power wireless telephone system to provide domestic land radio communication service.
2. Trunking Radio Telephone Business: means business that Operators establish trunking radio telephone system to provide domestic land radio communication service.
3. Mobile Data Communication Business: means business that Operators establish mobile data communication system to provide domestic land radio data communication service.
4. Radio Paging Business: means business that Operators establish radio paging system to provide domestic land radio paging service.
5. Mobile Telephone Business: means business that Operators establish mobile phone system to provide domestic land radio communication service.
Article 5
Band open to operate Digital Low-Power Wireless Telephone Business shall be 864.1MHz to 868.1MHz.
The business region open to operate Digital Low-Power Wireless Telephone Business shall be as follows:
1. Northern Region: Taipei City, New Taipei City and Keelung City.
2. Central Region: Taichung City.
3. Southern Region: Kaohsiung City.
Article 6
The band opened to operate Trunking Radio Telephone Business shall be divided as 500MHz and 800MHz; the uses of each band shall be as follows:
1. Band at 500MHz: 507.4500MHz to 509.9375MHz and 523.9500MHz to 526.4375MHz with a channel span of 12.5 KHz. Channel Number and Channel Group shall be as Attachment 1 and Attachment 2.
2. Band at 800MHz: 810.5MHz to 812MHz and 855.5MHz to 857MHz. A channel span can be divided as 12.5 KHz and 25 KHz. Channel Number and Channel Group shall be as Attachment 3 to Attachment 5.
The business region open to operate Trunking Radio Telephone Business shall be as follows:
1. Northern Region: Taipei City, New Taipei City, Taoyuan County, Hsinchu County and City, Keelung City, Yilan County and Hualien County.
2. Central Region: Miaoli County, Taichung City, Changhua County, Yunlin County and Nantou County.
3. Southern Region: Chiayi County and City, Tainan City, Kaohsiung City, Pingtung County, Taitung County and Penghu County.
4. All Regions: Including entire islands of Taiwan (including Penghu County), Kinmen County and Lienchiang County.
Article 7
The band opened to operate Mobile Data Communication Business shall be divided as 500MHz and 800MHz; the uses of each band shall be as follows:
1. Band at 500MHz: 510.4875MHz to 512.9750MHz and 526.9875MHz to 529.4750MHz. A channel span can be divided as 12.5 KHz and 25 KHz. Channel Number and Channel Group shall be as Attachment 6 to Attachment 8.
2. Band at 800MHz: 812MHz to 813.5MHz and 857MHz to 858.5MHz. A channel span can be divided as 12.5 KHz and 25 KHz. Channel Number and Channel Group shall be as Attachment 9 to Attachment 11.
The business region open to operate Mobile Data Communication Business shall be as follows:
1. Northern Region: Taipei City, New Taipei City, Taoyuan County, Hsinchu County and City, Keelung City, Yilan County and Hualien County.
2. Central Region: Miaoli County, Taichung City, Changhua County, Yunlin County and Nantou County.
3. Southern Region: Chiayi County and City, Tainan City, Kaohsiung City, Pingtung County, Taitung County and Penghu County.
4. All Regions: Including entire island of Taiwan (including Penghu County), Kinmen County and Lienchiang County.
Article 8
The band to opened for Radio Paging Business shall be as follows:
1. 284.5MHz to 285.5MHz.
2. 165.25MHz to 166.975MHz and 280.5MHz to 281.5MHz.
The business region open to operate Radio Paging Business shall be as follows:
1. Northern Region: Taipei City, New Taipei City, Taoyuan County, Hsinchu County and City, Keelung City, Yilan County, Hualien County and Lienchiang County.
2. Central Region: Miaoli County, Taichung City, Nantou County, Changhua County and Yunlin County.
3. Southern Region: Chiayi County and City, Tainan City, Kaohsiung City, Pingtung County, Taitung County, Penghu County and Kinmen County.
4. All Regions: Including entire islands of Taiwan (including Penghu County), Kinmen County and Lienchiang County.
Article 9
The band opened to operate Mobile Telephone Business can be divided as 900MHz and 1800MHz; the uses of each band shall be as follows:
1. Band at 900MHz: 895MHz to 915MHz and 940MHz to 960MHz.
2. Band at 1800MHz: 1710MHz to 1755MHz and 1805MHz to 1850MHz.
The business region open to operate Mobile Telephone Business shall be as follows:
1. Band at 900MHz:
(1) Northern Region: Taipei City, New Taipei City, Keelung City,Taoyuan County, Hsinchu County and City, Yilan County, Hualien County and Lienchiang County.
(2) Central Region: Miaoli County, Taichung City, Nantou County, Changhua County and Yunlin County.
(3) Southern Region: Chiayi County and City, Tainan City, Kaohsiung City, Pingtung County, Taitung County, Penghu County and Kinmen County.
2. Band at 1800MHz:
(1) Northern Region: Taipei City, New Taipei City, Keelung City, Taoyuan County, Hsinchu County and City, Yilan County, Hualien County and Lienchiang County.
(2) Central Region: Miaoli County, Taichung City, Nantou County, Changhua County and Yunlin County.
(3) Southern Region: Chiayi County and City, Tainan City, Kaohsiung City, Pingtung County, Taitung County, Penghu County and Kinmen County.
(4) All Regions: Including entire islands of Taiwan (including Penghu County), Kinmen County and Lienchiang County.
Article 10
Those who operate this business shall acquire a license of authorization to start operation with special authorization of the competent authority.
Article 11
For the items, ranges and operator numbers of this business added, manners of special authorization open to operate shall be stipulated further.
The beginning and the end date that accepts to apply for operating the case of this business with special authorization shall be promulgated by the authority.
Article 12
For the items and ranges open by this business as well as schedule, operators and the business region, the authority assigned by the Executive Yuan shall depend on frequency resources, the distribution of population, a development profile of industry and commerce as well as the required draft that maintains communication quality to file to the Executive Yuan for promulgation of the approval.
Section 2: Application and Review
Article 13
Applicants are limited as the corporation established under the Corporation Act, or the establishment institute of limited liability corporations, the chairman of the board should have the nationality of Republic of China, R.O.C., the amount of foreign stockholders should comply with the limitations of the Telecommunications Act.
The minimum of the capital amount that a company shall receive actually in the preceding paragraph shall conform to the following regulation respectively pursuant to a type of business:
1. Digital Low-Power Wireless Telephone Business: Two Hundred Million New Taiwan Dollars.
2. Trunking Wireless Telephone Business:
(1) Northern Region, Central Region and Southern Region: Twenty Million New Taiwan Dollars.
(2) All Regions: Sixty Million New Taiwan Dollars.
3. Mobile Data Communication Business:
(1) Northern Region, Central Region and Southern Region: Fifty Million New Taiwan Dollars.
(2) All Regions: One Hundred and Fifty Million New Taiwan Dollars.
4. Radio Paging Business:
(1) Northern Region, Central Region and Southern Region: Two Hundred Million New Taiwan Dollars.
(2) All Region: Four Hundred Million New Taiwan Dollars.
5. Mobile Telephone Business:
(1) Northern Region, Central Region and Southern Region: Two Billion New Taiwan Dollars.
(2) All Regions: Six Billion New Taiwan Dollars.
The same operator shall propose to apply for each business separately in accordance the opening announcement promulgated by authority. For an operator who obtains the permission of operation over two businesses through the legal procedure, its minimum paid-in capital shall be separately calculated upon approval for establishment, if such other businesses are subject to the minimum paid-in capital restriction, and the same as an applicant who simultaneously engages in other Type I telecommunications businesses
Article 13-1
After paid-in capital exceeds the minimum capital amount (inclusive) prescribed in the foregoing article and the number of shareholders exceeds 200 persons, the operator must apply to the securities management agency for public issuance procedures within three months after its establishment registration or new stock issuance change registration.
If an operator reduces its capital pursuant to a resolution of its shareholders meeting or engages in the actions specified in Article 185, Paragraph 1 of the Company Law, it shall report said actions to the competent authority for future reference within 20 days of the day after the shareholders meeting resolution.
Article 14
The same applicants shall not apply for two or more than two of business with the same type; if the same stockholders or warrant persons who hold stocks of different applicants shall reach up to fifty percent of capital stocks in total for each of that applicant, each different applicant shall be considered as the same.
If one stockholder or warrant person of applicants hold stocks of other applicants with the same type business at the same time, the stock ratio held by stockholders or warrant persons shall not be limited in one of applicants and shall not exceed ten percent in the rest of the applicants.
Article 15
Those who apply to operate this business with special authorization shall provide and attach the following documents to propose to the authority for applications:
1. Application.
2. Business Proposal.
3. A Certificate of Financial Capability.
4. Other related documents of provisions.
Article 16
A Business Proposal established by Paragraph 2 of Preceding Article shall specify the following items:
1. Business Items.
2. Business Regions.
3. Communication Type.
4. Profile of Telecommunications Equipment:
(1) Establishment Schedule of system equipment, quantity of base stations decided to establish and frequency channel number of each base station decided to establish (including detailed illustrations of distribution area, decided address of base station, coordinate of longitude and latitude, antenna altitude, effective radiation power, range of forecast service and electric field intensity at their boundaries).
(2) Manipulation proposal and spectra of radio frequency shall achieve its efficiency analysis. A manipulation proposal of frequency shall include service function, traffic information analysis and number of mobile station predicted to load bearing.
(3) System framework and operation principles.
(4) Service type that its system can provide.
(5) Operating Band, Bandwidth, Maximum Transmission Power, Modulation Type and transmission spectra, harmonics, mixed wave as well as antenna performance.
(6) Transmission power that can be varied shall illustrate the deviation range of transmission power and deviation criteria.
(7) Standards of Air Interface.
(8) For the interface standard, decided interface point and interface requirement connected with other Telecommunications network; that interface standard shall adopt interconnection of the technical standard promulgated by the authority, national standard, international standard or incumbent Telecommunications system in sequence.
(9) System Standardization and development situation of future technical development.
(10) Those that system manufacture and use are involved in patent rights shall propose the related certificates.
(11) The situation of system used around the world.
5. Financial Structure:
(1) A founded company shall propose a fiscal form in the late three years, which includes a table of asset debt, loss and profit, variation for stockholder’s rights and interests, cash flow as well as annotation or attached table.
(2) An establishing company shall propose a name list of the founders, the constitutions agreed and established by the whole founders, a name list of stockholders as well as the minimum paid-in capital that shall receive.
(3) The fund source predicted in future five years and a manipulation proposal of fund.
(4) To pre-estimate and draw up within five years in the future, a table of asset debt, loss and profit as well as cash flow.
(5) Format for stocks held by foreigners or a calculation table of warrant ratio shall be stimulated by the authority.
6. Technical Power and Development Proposal:
(1) Executives’ professional knowledge and work experience in Telecommunications.
(2) Allotment of professional technician personnel.
(3) Engineering design and maintenance illustrations, including system design, establishment and maintenance proposal.
(4) Personnel Training Proposal.
(5) Research Project .
(6) Five years and ten years of business promotion proposal and decided target, including a forecast of market scale, the ratio of share market, the number of predicted subscriber, business promotion and market survey.
7. Fee criteria and calculation method.
8. Personnel and organization structure: Company Constitutions, A Name List of Trustees, Supervisor and Executives as well as A Name List of Stockholders holding more than 5% of stocks.
9. Scheduled date for commencement of operation.
10. Related measures to guarantee consumer’s rights and interests.
11. Other items shall be specified.
The documents stipulated in the preceding paragraph shall record the items and format established and promulgated by the authority.
If the submitted documentation as referred to in the preceding paragraph is incomplete or the content is insufficient, the supplement and correction shall be made within the specified period stated in the notice of deficiency by the authority. If no supplement or correction is made after such notice or if the application is still incomplete or the information is still insufficient as of the end of the specified period for supplement and correction, the application shall not be accepted or reviewed.
Article 17
The authority shall not accept an application in one of the following circumstances:
1. Those that violated Article 13 and Article 14.
2. Applicants’ founders, trustees and executives who occur one of subparagraph of Article 30 in Corporation Act.
Section 3: Preparing to Establish
Article 18
Before issuing a consent letter of establishment, the authority shall command the applicant to pay the performance bonds in accordance with provisions. If an applicant fails to complete the establishment depending on provisions or the reviewed proposal, the authority shall not return a part or the whole of the performance bonds, and shall revoke the Establishment Approvals.
Article 19
The term of validity for a consent letter of the establishment shall be six months.
After receiving a consent letter of the establishment, applicants shall complete the erection of a company during the establishment or the registration to be changed as well as provide and attach the following documents to apply to the authority for frequency assignment and being issued the system construction permit:
1. Application of Frequency Assignment.
2. Application of System Construction Permit.
3. A Photocopy of the company erection or certificates to change the registration.
4. Certificates to negotiate with communication supervisor and enforcement law organization for confirming communication supervisory system or equipment of the establishment.
5. Proposal of the establishment for system: Including system framework, name and quantity of establishing equipment and schedule.
Applicants that do not complete the items stipulated by the preceding paragraph during authorization of the establishment, shall state the reasons to apply to the authority for postponement before the term is expired. Postponement shall not exceed 6 months at most and be limited to once. If applicants go past a time limit, the authority shall abolish authorization of the establishment.
When applicants complete the erection of a company or the registration to be changed, the minimum paid-in capital shall conform to Paragraph 2 and Paragraph 3 of Article 13.
Article 20
The term of validity with the system construction permit shall be as follows:
1. Digital Low-Power Wireless Telephone Business: Five years.
2. Trunking Radio Telephone Business: Two years.
3. Mobile Data Communication Business: Two years.
4. Radio Paging Business: Three years.
5. Mobile Telephone Business: Three years.
After being issued with the system construction permit, applicants shall establish its mobile communication system within the term of validity for permission to establish system pursuant to a construction proposal of the Subparagraph 5, Paragraph 2 in the preceding article. Applicants that do not complete within the term of validity shall attach the reasons why and apply to the authority for postponement within one month since the term is expired three months ago. Postponement to apply for the establishment shall not exceed one year at most and limited to postpone once. If applicants go past a time limit, the authority shall abolish the system construction permit.
Those who apply for postponement owing to unforeseen circumstances shall postpone in accordance with the course of accident delay, which doesn’t limit to the course of postponement in the preceding paragraph.
Those that do not apply for the system construction permit in accordance with the regulations shall not establish one part or all of mobile communication system.
Operators that establish follow-up network for a proposal of system establishment in accordance with Subparagraph 5, Paragraph 2 in the preceding article shall attach equipment name of system establishment and quantity list to apply permission to the authority to ensure establishment.
Article 21
A circuit connecting mobile phone system of applicants or Operators with other system shall be leased from Fixed Communication Business or Satellite Fixed Communication Business Operators. If a connecting circuit is located in the same building, applicants or Operators that file to the authority for approval will not be limited herein.
Applicants or Operators shall establish a circuit of connecting line equipment that is located in Mobile Communication System Network after being approved by the authority.
If the circuit established in the preceding paragraph is a microwave link, the items of the frequency assignment and permission to establish radio station shall conduct pursuant to Administrative Regulations for Governing the Installation of Microwave Radio Station for Type I Telecommunications Business; if it is a satellite link, the items of the frequency assignment and permission to establish radio station shall conduct pursuant to Administrative Regulations on Satellite Communication Business.
Article 22
The affairs of installation permits and radio station licenses of base stations installed by the applicants or operators shall comply with the Regulations for Administration of Base Stations of Mobile Communications Network Businesses.
Article 29
For the ratio that number of base station to establish occupies that of all system to establish, applicants shall conform to the following regulations in accordance with business type respectively while deciding to engage the business:
1. Digital Low-Power Wireless Telephone Business: Above twenty-five percent.
2. Trunking Radio Telephone Business: Above fifty percent.
3. Mobile Data Communication Business: Above fifty percent.
4. Radio Paging Business: Above twenty-five percent.
5. Mobile Telephone Business: Above twenty-five percent.
Article 30
For the number of base station established up to the ratio stipulated in the preceding article and connected with Telecommunications line equipment to be completed, applicants shall apply to the authority for system technical inspection. After inspecting with qualification, applicants shall provide and attach the following documents to apply to the authority for issuing a license of special authorization:
1. Application for A License of Special Authorization.
2. A Photocopy of Consent Letter for Establishment.
3. A Photocopy of Certificate for Company Registration.
4. A Certificate Qualified by System Technical Inspection.
5. A Certificate of Tariff Consented by Competent Authority for Reference.
6. A Certificate of Operation Constitutions Approved by the authority.
7. A copy of service contract established by Operators and the subscriber shall be certificates approved by the authority.
Applicants shall engage in the business within 6 months from the day of being issued with a license of special authorization. If going past a time limit, applicants will be abolished special authorization.
The standard of system technical inspection shall be stipulated by the authority.
Article 31
A license of special authorization shall record the following items:
1. Operators Name, Representative and Company Location.
2. Business Type.
3. Total Capital and paid-in capital.
4. Business Regions.
5. Using Frequency.
6. Date of Validity.
7. Date of Issue.
Article 32
The term of validity for a license of special permission to this business shall be as follows:
1. Digital Low-Power Wireless Telephone Business: Ten years.
2. Trunking Radio Telephone Business: Ten years.
3. Mobile Data Communication Business: Ten years.
4. Radio Paging Business: Fifteen years.
5. Mobile Telephone Business: Fifteen years.
Before the term of validity for a license of special permission to this business is expired one year ago, Operators who want to continue operation shall apply to reissue a license of special authorization using same technology and radio band in accordance with the procedure stipulated in Article 32-1.
The effective period of the renewed license of Radio Paging Business and Mobile Telephone Business shall be valid until June 30, 2017; after expiration, the license shall be void.
Article 32-1
Upon submitting its application for license renewal to the competent authority, in accordance with Paragraph 2 of Article 32, the enterprise shall attach the following documents:
1. License Application
2. Business Proposal
3. A Certificate of Financial Capability.
A Business Proposal established by subparagraph 2 of preceding paragraph shall specify the following items
1. Business Items.
2. Business Regions.
3. Communication Type
4. Profile of Telecommunications Equipment:
(1) Establishment Schedule of system equipment, frequency channel number established by base station (including distribution area, decided address of base station, coordinates of longitude and latitude, antenna altitude, effective radiation power and range of forecast service).
(2) Radio frequency manipulation efficiency analysis.
(3) System framework and operation principles.
(4) The type of service that its system can provide.
(5) Operating Band, Bandwidth, Maximum Transmission Power, Modulation Type and transmission spectra, harmonics, mixed wave spectra, as well as antenna performance.
(6) Interfaces that connect with other telecommunications networks shall adopt the interconnection technical standards promulgated by the authority, national standard, international standard, or incumbent Telecommunications system respectively.
5. Financial Structure
(1) A fiscal form of the past three years shall be submitted, which shall include a table of asset debt, loss and profit, variation for stockholder’s rights and interests, cash flow, as well as annotation or attached table
(2) Paid-in capital
(3) The estimated sources of funds over the first five-year period and the proposed use of funds.
(4) An estimated balance sheet covering the first five-year period, including a table of assets, debt, loss and profit, as well as cash flow. .
(5) Stocks held by foreigners or a calculation table of warrant ratio.
6. Technical Power and Development Proposal
(1) Executives’ professional knowledge and work experience in Telecommunications.
(2) Allocation of professional technical personnel.
(3) Engineering design and maintenance illustrations, including system design, establishment and maintenance status.
(4) Personnel Training Proposal.
(5) five-year business promoting plan and targets.
7. Fee criteria and calculation method.
8. Personnel and organization structure: Company Constitutions, a Name List of Trustees, Supervisor and Executives as well as a Name List of Stockholders holding more than 5% of stock.
9. Related measures to guarantee consumer’s rights and interests.
10. Other items shall be specified and shall be designated by the competent authority.
The documents stipulated in Paragraph 1 shall record the items and format established and promulgated by the authority.
If the submitted documentation as referred to in Paragraph 1 is incomplete or the content is insufficient, supplementary corrections shall be made within a specified period stated in the notice of deficiency by the authority. If no supplement or correction is made after such notice or if the application is still incomplete or the information is still insufficient as of the end of the specified period for supplement and correction, the application shall not be accepted or reviewed.
When an operator applies for license renewal, in accordance with Paragraph 1, the competent authority shall review whether the operator has the ability to continue operations; if necessary, the competent authority may conduct on-site systematic technology inspection and review the financial capability, manipulation status of radio wave spectra, telecommunication number resource usage status, and other relevant information of the operator.
In accordance with Paragraph 2 of Article 32, the competent authority shall deny the application for license renewal in any of the following circumstances:
1. Failure to improve the manipulation efficiency of radio wave spectra after notice from the competent authority;
2. The enterprise has either partially or entirely been ordered to cease operations due to violation of any regulations or laws;
3. The partial or entire suspension or termination of business without permission;
4. Assignment of all or primary area(s) of business or assets to this business without permission;
5. Occurrence of significant consumer’s dispute and failure to appropriately manage them;
6. Other significant deficiency that may influence operational capability; and
7. Failure to possess the capability of continuing operations to this business.
Article 33
If A Consent Letter of Establishment, A Permit Letter (Certificate) of Establishment, A License of Radio Station and A License of Special Authorization is lost or damaged, Operators shall state the reasons to apply to the authority for reissue. When the items recorded make some change, Operators shall apply to the authority for renewing.
A Consent Letter of Establishment, A Permit Letter (Certificate) of Establishment, A License of Radio Station and A License of Special Authorization or Radio Frequency Approved to Assign shall not lease, lend and transfer except for the regulations stipulated in addition.
Article 34
Operators shall operate in accordance with the contents of business proposal proposed to apply for operating this business. However, the contents of business proposal that violates the regulations or go beyond the range of business operated under special authorization shall not proceed.
The contents of business proposal shall not make changes except for involving the regulations related to bid competition. If the date of deciding to start operation is changed, the business item, communication type, a profile of Telecommunications equipment, fee criteria standard and calculation method shall state the reasons and be submitted to the authority for approval. The rest related with financial structure, technical power, development project, and personnel chart should state the reasons to file to the authority for reference if making change. However, the contents of proposal to change shall not influence to perform deposit or other responsibility recorded by the original proposal.
The authority shall conduct a regular assessment for the execution of business project proposed by Operators. Those that are reviewed as Poor shall inform of improvement within a time limit.
The regulations in the Paragraph 2 can also be applied before applicants are issued with a license of special authorization.