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Chapter Law Content

Title: Telecommunications Management Act CH
Category: National Communications Commission(國家通訊傳播委員會)
Chapter II Operations of Telecommunications Business
Section 1 Registration
Article 5
Telecommunications service providers with any of the following activities shall register as a telecommunications enterprise with the competent authority:
1. Negotiate interconnection with other telecommunications enterprises or apply for a ruling therewith;
2. Apply for the assignment of a radio frequency outside Article 56;
3. Apply for the assignment of identification code or signal point code for establishing a PSTN;
4. Apply for the assignment of subscriber numbers.
Article 6
Those who apply to register as a telecommunications enterprise shall submit the application form to the competent authority. The same rule shall be applied when applying any amendments to registered matters.
Said application form shall specify the following matters:
1. Name and residence of the applicant and contact person;
2. Corporate or business registration document No.;
3. Service content and business overview;
4. A photocopy of the telecommunications network framework or of the PSTN use certificate.
Where the applicant fails to specify requisite information in said application form, the competent authority shall notify the applicant thereof and request the applicant to make corrections within a prescribed deadline. For those who fail to make all the requisite corrections or provide the corrections before the deadline, the application will not be accepted.
The application form format, application procedures and other related matters shall be announced by the competent authority.
A telecommunications enterprise organized in the form of a company limited by shares shall apply for public offering if its minimal capital amount and number of shareholders are above the standard.
The aforesaid standard shall refer to that announced by the competent authority.
Article 7
Telecommunications enterprises that are in any of the following circumstances will have their registration abolished by the competent authority:
1. Have terminated or suspended the operations for more than six months, except for those who fail to provide telecommunications services due to disasters or any other force majeure.
2. Failure to implement an operating plan as described in Article 37; and such failure of performance is serious.
Section 2 General Obligations
Article 8
When providing telecommunications services, telecommunications enterprises shall abide by the following rules:
1. Disclose consumer with the information regarding service conditions, telecommunications network’s quality and data transmission management methods/ conditions, in an obvious, public and reachable method.
2. The accounting items of telecommunications service and non-telecommunications service shall be clearly separated; and the telecommunications services shall not be suspended if the non-telecommunications service fees remain unpaid.
3. For a subscriber who fails to pay telecommunications service fees on time, the enterprise shall notify the subscriber of arranging the payment within a prescribed period. The enterprise may suspend telecommunications services provided thereto only if said fees remain unpaid after said period.
4. Adopt appropriate and necessary measures to protect the confidentiality of communications.
5. Ensure staff members thereof abide by the rules of confidentiality of communications.
6. Provide subscribers with consumer complaint handling channels.
Telecommunications enterprises shall not refuse a request for telecommunications services or communications relay without justifiable reasons.
The telecommunications enterprise shall not be held liable to its subscriber for any damage arising out of error, delay, interruption, suspension or failure in telecommunications services due to a failure or breakdown of the telecommunications network, unless specified otherwise in the contract. However, the service fees shall be deducted accordingly.
A telecommunications enterprise shall give priority to the handling of the following:
1. Communications to prevent disasters, provide relief or maintain order in the event of a natural disaster, or the likely occurrence of a natural disaster, accident or any other emergency;
2. Emergency communications for traffic safety, as it relates to distress signals from land, sea, or air transportation vehicles and aerial weather reports; or
3. Other emergency communications necessary for the protection of national security or public interests.
Article 9
The telecommunications enterprise shall ensure the accuracy of communications and accounting records generated from telecommunications services used by the subscribers or telecommunications service users. Said records shall be preserved within a specific period of time and the telecommunications enterprise shall ensure the confidentiality thereof. When a subscriber inquires his/her communications or accounting record, the telecommunications enterprise shall provide it thereto.
The abovementioned communications records refers to records such as the telecommunications numbers of the sender and the recipient, time of communication, length of use, address, service type, mailbox or location information generated by a PSTN after the subscriber or telecommunications service user uses the telecommunications services. The provision of said records shall also be limited to those available to be provided from the functions of the PSTN.
Rules governing the preservation period of communications and accounting records as described in the preceding two paragraphs; subscribers’ inquiry procedures; charging methods and other related matters shall be promulgated by the competent authority.
Telecommunications enterprises and those who have established PSTN are obliged to assist in the implementation of communication surveillance and in the access to communications records and communications user’s information in accordance with the Communication Security and Surveillance Act.
Article 10
Where the telecommunications enterprise desires to suspend or terminate operations in whole or in part, it shall notify the competent authority 3 months before the scheduled date of suspension or termination; and make a public announcement and notify the subscribers 1 month before the scheduled date of suspension or termination.
Article 11
Where the telecommunications enterprise is unable to provide telecommunications services due to disaster, or penalty imposed by the competent authority or other major incidents, it shall make an immediate announcement on the suspension of its operations in whole or in part and report to the competent authority according to the method prescribed by the competent authority.
Rules governing the scope and methods of aforesaid report and other related matters shall be promulgated by the competent authority.
Article 12
To protect nationals’ basic telecommunications rights and interests, telecommunications enterprises shall share the losses and necessary management fees incurred by the telecommunications universal service, except for enterprises whose annual revenue generated from telecommunications services is below certain amount prescribed by the competent authority.
The telecommunications universal service as mentioned in the preceding paragraph refers to telecommunications services with an indispensable basic quality and reasonable price that can be afforded by all nationals.
The telecommunications enterprise that is obligated to share said expenses as prescribed in Paragraph 1 shall submit the shared amount to telecommunications enterprise universal service fund according to the competent authority’s notice.
The fund, as mentioned in the preceding paragraph, does not refer to funds prescribed in the Budget Act.
Rules governing the type, quality and service area of telecommunications universal services; the calculation and sharing methods designated by the provider or for the losses; and other related matters shall be promulgated by the competent authority.
Article 13
In the principles of technical feasibility, fairness and reasonableness, a telecommunications enterprise shall not reject other telecommunications enterprises’ request for negotiation of interconnection without justifiable reasons. Where interconnection is agreed by both parties, both parties shall sign an interconnection agreement, and said agreement shall include dispute handling mechanisms.
To facilitate the signing of an interconnection agreement, the telecommunications enterprise, as mentioned in the preceding paragraph, shall, when another telecommunications enterprise makes a reasonable request, provide information that can facilitate the negotiation of interconnection thereto.
Information that the telecommunications enterprise obtains due to the negotiation of interconnection or fulfillment of the interconnection agreement as prescribed in Paragraph 1 shall be used only in interconnection relevant services. Said telecommunications enterprise shall also adopt appropriate confidentiality measures to prevent its affiliated organization or a third party from knowing or using said data. However, if the telecommunications enterprises have a separate agreement, it shall abide thereby accordingly.
Where there is any amendment to the interface of the interconnection network between telecommunications enterprises as described in Paragraph 1, it shall notify the telecommunications enterprise with which it interconnects before the amendment and provide it with necessary technical support or adjustments on the equipment to maintain the original conditions for interconnection.
The telecommunications enterprise is only allowed to access or transfers the voice services provided by the enterprise who has registered itself as a telecommunications enterprise, except for the situation where the telecommunications enterprise has signed an interconnection agreement with a foreign telecommunication enterprising for the voice services.
Section 3 Special Obligations
Article 14
Telecommunications enterprises that use subscriber numbers to provide voice services shall provide free emergency communications services.
Article 15
Telecommunications enterprises who have established a PSTN using telecommunications resources or other telecommunications enterprises announced by the competent authority shall draw up an info-communications security maintenance plan and implement it accordingly.
The plan as mentioned in the preceding paragraph shall include the following matters:
1. The info-communications security management scope and classification methods.
2. Info-communications security management compliant verification measures.
3. Implementation measures of info-communications security management plan.
4. Joint defense and response measures for info-communications security incidents.
5. Other measures that may facilitate the management of info-communications security as designated by the competent authority.
Rules governing the considering factors for the competent authority's determination of the telecommunications enterprises to be announced as prescribed in Paragraph 1; scope of info-communications security management as prescribed in the preceding paragraph; classification methods; verification standards and procedures; joint defense and response reporting operations; and other related matters shall be promulgated by the competent authority.
Article 16
For the purpose of protecting subscribers’ rights and interests and facilitating market competition, telecommunications enterprises that use subscriber numbers to provide telecommunications services shall provide number portability and equal access services.
Where the telecommunications enterprise as described in the preceding paragraph fails to provide number portability or equal access services, it shall submit relevant documents to the competent authority for the approval of exemption.
The number portability service as described in Paragraph 1 refers to the service that enables the subscriber to retain his or her subscriber number when switching from another telecommunications enterprise to the telecommunications enterprise. The equal access service, on the other hand, refers to the service that allows a subscriber to choose the long-distance and international network services provided by other telecommunications enterprises.
Telecommunications enterprises that provide number portability services shall co-establish or join a centralized database management organization to jointly supervise the establishment, maintenance, operation and management of a centralized database.
Rules governing the scope, provision and implementation schedule of number portability and equal access services as described in Paragraph 1 and the preceding paragraph, the establishment, management and restrictions of centralized database management organization, and other related matters shall be promulgated by the competent authority.
Article 17
Telecommunications enterprises designated by the competent authority shall set forth terms and conditions of standard service contract, specify the rights and obligations between them and subscribers, and submit the said standard service contract to the competent authority for approval before implementation. When applying any amendments, the same rules shall be applied thereto.
The terms and conditions of the standard service contract as described in the preceding paragraph shall including the following matters:
1. Service areas and contents;
2. Service fees and conditions;
3. Responsibilities derived from the guarantee of providing prepaid services;
4. The methods of handling damage arising out of error, delay, interruption, suspension or failure in telecommunications services due to a failure or breakdown of telecommunications network, and fee reduction methods therefor;
5. The tariff reductions offered to subscribers when the telecommunications enterprise’s registration is revoked or abolished or when the subscribers’ rights and interests are damaged due to suspended or terminated operations;
6. Consumer complaint-related information and the court of jurisdiction;
7. Restrictions on and conditions for the collection, processing and utilization of subscribers’ personal information;
8. The confirmation and cancellation mechanisms for testing or receiving free telecommunications services;
9. Other matters related to the protection of consumers rights and interests as announced by the competent authority;
Article 18
With respect to the quality of telecommunications services, telecommunications enterprise determined by the competent authority shall conduct regular self-evaluation based on the items and format announced by the competent authority and then publish the evaluation results accordingly. The competent authority may regularly check and publish the investigation results.
Article 19
Where a telecommunications enterprise determined by the competent authority intends to suspend or terminate operations in whole or in part, it shall submit the consumer protection and handling plan to the competent authority 3 months before the date of suspension or termination for approval and notify the consumers 1 month before the date of suspension or termination.
Article 20
Telecommunications enterprises determined by the competent authority shall co-establish complaint handling channels for telecommunications consumers, submit the articles of incorporation to the competent authority, and have them implemented upon receipt of approval.
The articles of incorporation as described in the preceding paragraph shall specify the following matters:
1. Name and business location of the organization;
2. Business items and the management thereof;
3. Conditions and fees for each service and the use and management of expenses;
4. Procedures governing the admission to and withdrawal from the association;
5. The methods of handling members who violate the articles of incorporation;
6. Amendment procedures for articles of incorporation;
7. Other matters designated by the competent authority and/or related to the handling of consumer complaints.
When applying any amendment to the articles of incorporation, the telecommunications consumers’ complaint handling organization shall report it to the competent authority and, upon receipt of the approval, start to implement it.
Telecommunications enterprise determined by the competent authority shall sign a management contract with the telecommunications consumers’ complaint handling organization, commissioning it to handle telecommunications consumer-related complaints. Where the complaint is serious or emergent, the competent authority may directly intervene in the case to handle the disputes.
Upon the establishment of the telecommunications consumers’ complaint handling organization, the competent authority may determine a specific telecommunications enterprise to be affiliated thereto.
A telecommunications consumers’ complaint handling organization shall make dispute handling reports on a monthly basis according to the format announced by the competent authority and shall make an announcement accordingly.
The rules governing the establishment of a telecommunications consumers’ complaint handling organization, the supervision and management of business practice, and other related matters shall be promulgated by the competent authority.
Article 21
When determining a telecommunications enterprise as described in the preceding 4 articles, the competent authority shall take the following factors into consideration and specify the reasons:
1. Revenue of telecommunications enterprise’s telecommunications services;
2. Types of telecommunications services;
3. The items and quantity of telecommunications consumer complaints.
The standards for determination as described in the preceding paragraph shall be promulgated by the competent authority.
In case of a disagreement with the determination of the competent authority as described in the preceding paragraph, the determined telecommunications enterprise may submit related supporting documents to the competent authority to apply for cancelling the determination.
Upon receipt of the application as described in the preceding paragraph, the competent authority shall make a decision within 2 months. Where the competent authority fails to make a decision upon the expiry, the determined telecommunications enterprise may file an appeal directly.
Section 4 Designated Obligations
Article 22
To prevent or respond to disaster prevention and mitigation activities or defense mobilization, relevant competent authorities may, according to the regulations in charge thereby, designate telecommunications enterprises to adopt measures that are necessary for communications or establish response related facilities.
Concerning those who have established a PSTN and have been designated by the establishment organization of communications surveillance, the telecommunications network thereof shall be equipped with the supervisory functions as prescribed in the Communication Security and Surveillance Act and the said telecommunications enterprises shall assist in the establishment and maintenance of communications surveillance system.
Except for the obligations derived from the acquisition of frequency as prescribed in Paragraph 2 of Article 54 or other laws providing otherwise, any expenses incurred from the cooperation between the designated telecommunications enterprises or those who have established a PSTN, and the respective competent authority as described in Paragraph 1, shall be borne by the competent authority accordingly.
Article 23
The competent authority, according to the relevant laws of the People with Disabilities Rights Protection Act, may designate the telecommunication enterprise to provide necessary telecommunications services to people with disabilities to access to.
Where the designated telecommunications enterprise cooperates to provide necessary telecommunications services or telecommunications terminal equipment required for the access thereto as described in the preceding paragraph, any necessary expenses incurred therefrom will be subsidized by the government.
Article 24
To protect nationals’ basic communications rights and interests, competent authority may, according to the region or service type, designate telecommunications enterprises to provide telecommunications universal services as prescribed in Paragraph 2 of Article 12.
Section 5 Investment, Assignment and Merger
Article 25
Telecommunications enterprises who have established a PSTN using telecommunications resources or those who are deemed as a telecommunications enterprise according to Paragraph 2 of Article 28 shall, according to the format and methods announced by the competent authority, report the number of outstanding voting shares and any change to the total capital amount with a specific percentage.
The specific percentage as described in the preceding paragraph shall be announced by the competent authority.
Article 26
Where the telecommunications enterprise encounters any of the following circumstances, the entire or primary assigned or transferred business or assets thereof shall be reported to the competent authority for approval. Where the telecommunications enterprise is merged with other enterprises; or directly or indirectly invests in other enterprises’ voting shares or capital that is above specific percentage announced by the competent authority, it shall report the same to the competent authority for approval.
1. The radio frequency is allocated by the competent authority, except for those applicable to Subparagraphs 1, 3 and 4, Paragraph 1 of Article 56;
2. Possess more than one-fourth the share of a specific telecommunications service market.
Where the business to be assigned, transferred or merged among telecommunications enterprises is more than one-fourth the share of a specific telecommunications service market, applying for the approval of competent authority is required.
Where the same person or related person acquires more than 10% of the voting shares of telecommunications enterprises as prescribed in Subparagraph 1 or 2 of Paragraph 1, applying for the approval of the competent authority is required.
Paragraph 5, Article 11 of Fair Trade Act is applicable to the scope of related person(s) as prescribed in the preceding paragraph.
The delimitation of a specific telecommunications service market as described in Paragraphs 1 and 2 shall refer to Article 27.
The acceptance and/or rejection of applications made by the competent authority according to Paragraphs 1, 2 and 3 shall take the following factors into consideration, and auxiliary terms may be added thereto according to its purview:
1. Reasonable allocation of resources;
2. Facilitation to the industry’s development;
3. Maintenance of subscribers’ rights and interests;
4. Maintenance of market competition;
5. National security.