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Chapter 2: Operation Concession
Section 1: Procedure of Charter Issuance
Article 7
Concession cases of applying for services are transacted by a two-stage procedure:
1. Stage 1: Review of the applicant’s application form, business plan, and other qualifications and requirements according to regulations.
2. Stage 2: The applicant that passes the stage 1 review becomes a qualified bidder (hereinafter referred to as the "bidder"), and is allowed to participate in bidding. The NCC shall issue a permission of incorporation to the winning bidder after the winning bidder has rendered a performance bond and minimum advancement bond of charter fee according to regulations.
If two or more applications for the Services are submitted, stage one shall be first held; stage two will not be held unless there are two or more applications at stage two.
The minimum advancement bond of charter fee stated in subparagraph 2 of paragraph 1 serves as the guarantee of the right to bid for the bidder; the winning bidder’s failure to remit a charter fee or to keep service operation shall be regarded as the cancellation of the contract, and the advancement bond shall be converted to a default fine.
Article 8
The NCC may establish a review committee to conduct the review of stage one as stated in the previous Article. Items and the proportion for the review shall be stipulated and announced by the NCC.
Article 9
The applicant may apply for one or more charters in one application form. However, if applying for charters in different areas, the applicant shall submit a separate business plan for each area.
One applicant is granted one charter only.
Article 10
The NCC shall select one charter for the North Area and one for the South Area as defined in Article 6 as the priority bidding subjects for the applicant who adopts IEEE 802.16e technical standards, to operate services, and is not a dominate company in the Type One telecommunication business, and not become involved in the circumstances described in Paragraph 5. If no applicant meets the criteria herein or such applicant fails to meet the criteria herein, then other applicants who adopt IEEE 802.16e and operate the services may enter the bidding for the subjects defined herein.
The selected charters described herein shall comply with the alternative bidding procedure in Article 13: the third awarding charter in the North Area and the first awarding charter in the South Area.
An applicant that meets the priority bidding criteria but is not interested in priority bidding shall waive the right to priority bidding prior to the priority bidding procedure by submitting a written waiver to the NCC.
If the total number of qualified applicants for priority bidding procedure is only 2 or 3 after deducting the number of qualified applicants who are not interested, the number of charters offered for priority bidding shall be reduced to one in the North Area; if there is only one applicant, no charter shall be offered for priority bidding procedure.
The applicant and Type One dominate telecommunication companies that meet the conditions stated in Paragraph 2 of Article 16 (as the same applicant) or the conditions stated by Paragraph 1 of Article 17 (as a joint applicant), or the conditions stated in Paragraph 4 of Article 46 cannot be qualified as an eligible applicant for the selected charter as mentioned above.