The auctionprocedure for issuing a businesslicenseshall be divided into the bandwidth quantity-basedauction (hereinafter referred to as the quantity bidding) and the location-basedauction.
The quantity auction shall bedivided into main bidding rounds and supplementary bidding rounds;the main bidding rounds shallarried out in accordance with the provisions of Articles 22 to 31-1; inthecase where circumstances asspecified in Paragraph 3 of Article 31-1occur, supplementary bidding rounds shall be subsequently carried out to determine the winning bidder and the awarded bandwidth of the quantity auction. After the quantity auction procedure has completed, the location-basedauction shall commence.

Each bidder and authorized agent(s) shall not participate in any conduct that affects the fairness of bidding procedures or violate regulations after the announcement of the list of qualified bidders and prior to the final bidding. Any offender shall be deemed disqualified from the bidding by the competent authority.
Any bidder or authorized agent(s) who is deemed to affect the fairness of bidding procedures will be required to undertake corrective action within a prescribed period by the competent authority; those who fail to do so shall be disqualified.

Where any of the following circumstances occurs during the bidding procedure, the competent authority shall suspend the bidding procedure and decide the following procedure:
1. Any force majeure.
2. Any major violation of rulesby the bidder.
3. Any circumstance that is inappropriate to carry on the bidding procedure.

The competent authority has adopteda simultaneous, multiple-round, and ascending price method forthe quantity auction procedure.
Relevant operations shall be conducted in forms of electronic quotation; bidders shall maintain contact with the bidding center by means of a direct line; where the direct line is not available, bidders may maintain contact with the bidding center using the internet. Where the bid cannot proceed with either the direct line or through the internet, bidders shall then use a telephone line or fax to conduct relevant operations.

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The starting and ending time foreach auction day shall be from 9:00AM to 5:00PM.
The competent authority shall announce the starting and ending times of each round of the auction ten minutes before commencing each round. The foresaid timing shall heed to the timekeeping of the competentauthority.

The competent authority shall announce the unit bandwidth (hereinafter referred to as the round price) of each frequency band of the said round ten minutes prior tothecommencementof each round.
The unit bandwidth referred to in the preceding paragraph shall be as follows:
1.1800MHz frequency band: 10MHz for uplink and downlink.
2.3500MHz frequency band: 10MHz.
3.28000MHz frequency band:100MHz.
A bidder may submit a bid forbandwidth for its requested frequency bandin each round; the round price of the round shall beits committed unit price.
When the bidder does not submit a bid forbandwidth or the bid is deemedinvalid in saidround, the last knownbidfor bandwidth shall beconsidered as the requested bandwidth of the round;the round price of the bandwidth of its most recent bandwidth bid shall be considered as the committed unit price of the round.
The round price of each frequency band in each round shall bedetermined according to the followingcircumstances:
1.When the sum of the requested bandwidths of the round price equaling the committed unit price of the previous round is greater than or equal to the auctioned bandwidth, the round price of the round shall be1.3 times the round
price of the previous round, calculated to million New Taiwan dollars, and rounded up to the nearest million if the amount is less than NT$1 million.
2.Should the circumstancesspecified in the preceding subparagraph not occur the round price of the round shall be the round priceof the previous round.
3.The round price of the first round is 1.3 times the reserve price. Itshall becalculated to million New Taiwan dollars, and rounded up to the nearest million if the amount is less than NT$1 million.

The competent authority shall rank the priority of bidders in each round from first to last in the following order:
1.The bidder's committed unit price is equal to the round price of the round. When there are more than two bidders thatmeet the requirements of this subparagraph, the order of priority shall bedetermined by computerized drawing of lots.
2.The bidder's requested bandwidth is equal to the previous round's tentatively awarded bandwidth. When there are more than two bidders thatmeet the requirements of this subparagraph, the order of priority shall bedetermined by computerized drawing of lots.
3.Other bidders thatobtained the tentatively awarded bandwidth in the previous round.
The competent authority shall, in accordance withthe provisions of the preceding paragraph, allocate the bidders' tentatively awarded bandwidths based on priority ofeach round; bandwidth shall beallocated to the bidder with the highest priority based on its requested bandwidth, and the remainder shallbeallocated to other bidders based on priority, down to the bidder with the lowest priority, or until the allocated tentatively awarded bandwidth is accumulated to the auctioned bandwidth.
The bidder with allocated tentatively awarded bandwidth shall be deemedthe tentative winning bidder, and the committed unit price shall bethe tentative winning unit price.

The bidder shall submit the requested bandwidth in accordance with the following provisions:
1.The bidder shallsimultaneously submit the requested bandwidth of each frequency band, and the requested bandwidth shall be in compliance with the provisions of Article 18 on bandwidth limit.
2.One period consists of ten rounds up tothe first one hundred rounds, and consists of five rounds after the one hundred and first round. Beginningfrom the fifty-first round, the requested bandwidth submitted for each round of the 3500MHz frequency band in each period shall not exceed the maximum requested bandwidth of the previous period or the maximum of thetentatively awarded bandwidth of each round in the previous period for the said frequency band; when there is no effective requested bandwidth submitted for each round in the previous period, it shall not exceed the maximum of the tentatively awarded bandwidth of each round in the previous period of the said frequency band.
3.The bidder's requested bandwidth shallbe greater than or equal to the tentatively awarded bandwidth of the previous round. However, when the tentative winning unit price of the previous round is equal to the round price of the round, the requested bandwidth shallbe greater than the tentatively awarded bandwidth of the previous round.
4.The requested bandwidth submitted by a bidder each time shall be in units of the unit bandwidth specified in Paragraph 2 of Article 25; the electronic quotation system shall use the enumeration method for bidders to select the requested bandwidth.
If the requested bandwidth submitted by a bidder for any frequency band does not comply with the provisions of the preceding paragraph, the bidshall beconsidered invalid.

Anybidderthatsubmits a bidvia facsimilein accordance with Paragraph 2 of Article 22, shall completethe requested bandwidth form in accordance with the provisions of the preceding article.
The bidshall be deemed as invalid in any one of thefollowing circumstances:
1.There is no company seal or signature or seal of the responsible person on the requested bandwidth form.
2.The requested bandwidth cannot be clearly determined or identified.
3.The requested bandwidth applicationhas been altered or two or more different bandwidths have been requested for the same frequency band.
4.The requested bandwidth submitted does not meet the requirements of Paragraph 1, Article 26.
5.Other circumstances that have been deemed to be invalid by this Commission.

The bidder shall submit the bidwithin the time specified in Paragraph 2 of Article 24; the request shall be deemed as invalidif it has beensubmitted outside the prescribed time.
The number of times a bidder can submit the requested bandwidth shall belimited to once per round; asecond or subsequent request shall not be accepted by the competent authority.

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The competent authority shall, at the conclusionof each round, notify bidders of the following information:
1.The determination of the requested bandwidth submitted, the time of submission, and the validity of the request in the said round.
2.The tentatively awarded bandwidth and tentative winning unit price for each frequency band.
3.The cumulative number of tentative abstentions.
4.From the fifty-first round, the upper limit shall be calculated in accordance with the provisions of Subparagraph 2, Paragraph 1 of Article 26.
The competent authority shall notify each bidder of its eligibility in the supplementary bidding rounds at the conclusionof the main bidding rounds.
The competent authority shall, at the conclusionof each round, announce the following information:
1.The total requested bandwidth with the committed unit price of the proceedinground being the round price for each frequency band.
2.The sum of the requestedbandwidth with the committed unit price of the proceedinground being the round price and the tentatively awarded bandwidth of the previous round with the committed unit price being less than the round price for each frequency band.
3.The number of bidders whose tentatively awarded bandwidth of the round reaches the upper limit of bandwidth specified in Paragraph 1 of Article 18 for each frequency band.
4.The total number of temporary abstentions from all bidders.
5.The total number of bidders that lose biddingeligibility.
6.The cumulative number of times when all bidders that have the right to submit bandwidth requests do not submit effective bandwidthbidsin the same round.
7.Whether the next round is likely to be the concluding round where all bidders thathave the right to submit bandwidth requests fail to submit effective bandwidth requests for the second consecutive time.

If a bidder fails to submit a bidor submits an invalided bid in the first round, the competentauthority shall abolish its bidding eligibility.
If a bidder temporarily abstains from bidding four times in the quantity auction, the competent authority shallabolish its eligibility to continue to submit bids forbandwidth.
In any ofthe following circumstances, the bid shall bedeemed as a temporary abstention:
1.Non-tentative winners of each round fail to submita bidin the round.
2.It is determined that the requested bandwidth in the round is invalid.
During the quantity auction, if a bidder intends to abstain from continuously bidding, it shall use the electronic quotation system to express the abstention to the competent authority within the time specified in Paragraph 2, Article 24. However, if the bidder has already submitted the requested bandwidth in the round, it may not abstain in the said round.
If a tentative winning bidder, in the process of quantity auction, loses the eligibility to continue due to the provisions of Paragraph 2 or abstains from continuation due to the provisions of Paragraph 4, its eligibility of a tentative winning biddershall beretained until there is no tentatively awarded bandwidth.

If all bidders thathave the right to submit requested bandwidths fail to submit effective bids for bandwidth for two consecutive rounds in the main bidding rounds, the main bidding roundshallconclude.
After the main bidding roundconcludes, the awarded bandwidth of the winning biddersof the quantity auction and the winning unit prices in the main bidding rounds for each frequency band shall be the tentatively awarded bandwidth and the tentative winning unit price of each frequency band of the last round of the main bidding rounds.
After the main bidding rounds concludes, if the sum of the tentatively awarded bandwidths of the last round in the main bid rounds for any frequency band does not reach the total bandwidth open for application, and there ismore than one bidder thathasthe right to submit bidsand has beententatively awarded bandwidth in the last round of the main bid rounds, reachingthe upper limit of the said frequency band specified in the provisions of Paragraph 1 of Article 18, the supplementary bidding rounds shallbe conducted subsequently in the next round.

The provisions of Articles 22 to 31shallapply to the supplementary bidding rounds. However, the provisions of Subparagraphs 1 and 2, Paragraph 1 of Article 26 shall not apply.
For each frequency band, only the bidders thathave the right to submit bids and have been awarded bandwidths in the main bidding rounds reaching the upper limit specified in the provisions of Paragraph 1 of Article 18, may participate in the supplementary bidding rounds of the said frequency band.
The auctioned bandwidths of each frequency band in the supplementary bidding rounds shall bethe remaining bandwidths after deducting the awarded bandwidths of themain bidding rounds.
For a participant in the supplementary bidding rounds, its total awarded bandwidth shall not be subject to the restriction of Paragraph 1 of Article 18, but it shall not exceed one-half of the available bandwidth for each frequency band specified in Subparagraph 4, Paragraph 1 of Article 7.
If a bidder fails to submit a bid for bandwidth or submits an invalid bidin the first round of the supplementary bidding rounds, it shall be deemed as abstainingfrom continuously submitting bandwidth requests, and the provisions of Paragraph 1 of Article 31 shall not apply.

If all bidders thathave the right to submit bids forbandwidths fail to submit effective bandwidth requests for two consecutive rounds in the supplementary bidding rounds, the supplementary bidding roundshall conclude.
After conclusion of the supplementary bidding rounds, the quantity auction winners' awarded bandwidths and the winning unit prices in the supplementary bidding rounds for each frequency band shall betentatively awarded bandwidth and the tentative winning unit price of each frequency band in the previousround of the supplementary bidding rounds.

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When the main bidding rounds concludewithout the circumstancesspecified in Paragraph 3 of Article 31-1 or the supplementary bidding rounds conclude, the quantity auction shall end.
After the quantity auction ends, the quantity auction winners' awarded bandwidth and winning unit prices for each frequency band shall bethe awarded bandwidth and the winning unit prices of the main bidding rounds and the supplementary bidding rounds.
After the quantity auction ends, the total winning price of the winning bidder in the quantity auction shall bethe sum of the awarded bandwidth multiplied by the winning unit price for each frequency band in the main bidding rounds and the supplementary bidding rounds.
After the quantity auction ends, the competent authority shallannounce the following items:
1.The list of winning bidders, the awarded bandwidth, the winning unit price and the total winning price ofthe quantity auction.
2.The date, time and venue of the location-basedauction.
3.The combination options thatmay be selected for quotation for each frequency band in thelocation-basedauction.
The combination options specified in the preceding paragraph refer to the various possible combination methods of frequenciesfor the winning bidder of each quantity auction in the location-basedauction, according to its awarded bandwidth in each frequency band and the following principles:
1.The frequency of the winning bidder's awarded subject matter shall be continuous.
2.The frequencieswith no winning bidders shall be continuous, and the 3500 MHz frequency band shall include the frequency of 3570 MHz and the 28000 MHz frequency band shall include the frequency of 27000 MHz.
The period from the announcement date specified in Paragraph 4 to the auction date of the location-basedauction shall be at least seven days.

The nominated frequency location of each frequency segment shall bedecided in accordance with Article 33-3; where the decision cannot be made, methods as prescribed in Article 33-4 shall then be adopted.
The winning bidders of the quantity auction may negotiate the awarded frequenciesof each frequency band among themselves from the ending date of the quantity auction until the start of the location-basedauction; the frequenciesnegotiated shall not be subject to the principles of Subparagraph 1, Paragraph 5 of the preceding article.

The location-basedauction shall commencein the morning on the announcement date specified in Paragraph 4 of Article 33.
Nominated quantity bidders shall submit a letter of intent in regard to the frequency location when the location bid proceeds.
Upon the submission, the letterof intent for frequency location must not be withdrawn or amended.
The nominated quantity bidder may designate a maximum of three people as its authorized agents to participate in the location bid. The said agent(s) shall present the letter of authorization.

The competent authority shall decide the nominated frequency location of nominated quantity bidder of each frequency segment according to the following order:
1.When all winning bidders of the quantity auction have submitted letters of intent for the frequencies, all of the frequenciesdo not includethe frequenciesthathave no winning bidders in the announced combination options specified in Subparagraph 3, Paragraph 4 of Article 33, and there is no overlapping, the awarded frequenciesshall be determined based on the letters of intent for the frequencies.
2.If according to the announcement specified in Subparagraph 3, Paragraph 4 of Article 33, there is only one combination option, the awarded frequency locationsshall bedetermined according to the said combination.
The nominated quantity bidder in any of the following circumstances shall be deemed as failing to submit a letter of intent for frequency location:
1.Failing to participate in the location bid in accordance with provisions of the preceding Article.
2.The letter of intent for frequency location is not signed or sealed by the company or person-in-charge.
3.The intent cannot be recognized in the foresaid letter of intent or more than two intents are recognized.
4.The intended frequency location does not comply with the frequency bandwidth of the item of nominated quantity bid.

Where the nominated frequency location for each frequency segment cannot be decided as in the preceding Article, the competent authority shall hold a one-round quotation session in the afternoon on the day of holding the location bid.
The winning bid for possible frequencies in one round shall be awarded in accordance with the combination options specified in Subparagraph 3, Paragraph 4 of Article 33.
The foresaid bidding price shall be based on units of 1 million New Taiwan Dollars and shall be determined in one round.
The bid must not be withdrawn or amended.
The nominated frequency location shall be determined according to the highest bid by nominated quantity bidders for the frequency location selected from the permutation array as described in Paragraph 2.
Where a nominated quantity bidder placed the highest bid for the frequency location has more than two permutation arrays, the competent authority shall decide the permutation array by drawing lots.
The nominated quantity bidder falling under any of the following circumstances shall be deemed as having submitted a bid of zero New Taiwan Dollar for that frequency location.
1.The bid is not made in the quotation format announced by the competent authority, or the quotation is not submitted.
2.The bid is not signed or sealed by the company or person-in-charge.
3.The bid is not submitted for the frequency location selected from its permutation array.
4.The bid is not submitted for that frequency location or more than two prices have been offered.
5.The bidding price is a negative value or cannot be recognized.
The bid submitted by nominated quantity bidder in regard to the nominated frequency location decided in accordance with Paragraph 5 or 6 shall be its nominated bid price for the location bid.

The bidding operations shall be closed after the competent authority decides the frequency location for each nominated bidder's bidding item. The competent authority shall then announce the list of nominated bidders, nominated bidding item and nominated bid price.
The winning bid in the preceding paragraph shall bethe sum of the total winning price announced in accordance with Subparagraph 1, Paragraph 4 of Article 33, and the winning bid of the location-basedauction in the preceding article.
After the auction operation hasconcluded, the competent authority shallpublicly announcethe bidding information ofeach round of the quantity auction and the location-basedauction.

The tender bond of a bidder falling under any of the following circumstances shall be returned:
1. Where the bidder has participated in the bidding but not been awarded with thebid; the competent authority shall return the tender bond to it without interest within seven days after the list of nominated bidders is announced.
2. Where the bidder has been nominated and paid the nominated bid or the first installment as regulated; the competent authority shall return the tender bond to it without interest. However, the tender bond may be converted into a part of the first installment without interest.
The tender bond of a bidder falling under any of the following circumstances shallbe returned; if the tender bond has been returned, repayment shall be requested:
1. The nominated bid has not been paid in full preceding the nomination, or the first installment, remaining amount and interest of nominated bid price has not been paid.
2. The bidder failed to quote in the first round of quantity bid, or submitted an invalid bid.
3. The bidder has been disqualified by the competent authority in accordance with Paragraph 1 or 2 of Article 21-2.

In the event where an application case should be given the following ruling, the ruling recipient will not be given an opportunity to impart opinion:
1.The review fee and the interest have been withheld per stipulated under Paragraph 4 of Article 10.
2.The application has been rejected per Article 13 or Article 27.
3.The application has been rejected, and the review fee or the tender bond has been also withheld per Article 14.
4.A bidder whose right to participate in the competitive bidding or bid award qualification has been revoked or abolished per Article 15.
5.A bidder's review fee or tender bond has been forfeited from reimbursement per Paragraph 2 or 3 of Article 16.
6.A bidder has lost the qualification to continue submitting bids, competitive bidding qualification, or failing to secure the bid per Section 3 of the competitive bidding work stipulations.
7.A bidder's tender bond has been forfeited form reimbursement per Paragraph 2 of the preceding Article.