Goto Main Content
:::

Chapter Law Content

Chapter 2: Franchise for Operation
Section 4: Establishment
Article 32
The winning bidder may choose to pay the winning bidding price at one time or pay it in installments by telegraphic transfer to the account designated by the authority. Once the method of payment to the winning bidding price is decided, it cannot be changed.
If the winning bidder decides to pay at one time according to the preceding paragraph, the winning bidder or the carrier shall finish the payment within 30 days from the date when the authority announces the name list of the winning bidders.
If the winning bidder decides to pay in installments, the winning bidder or the carrier shall pay the winning bidding price and its interest according to the following regulations:
1. The winning bidder shall pay 30 percent of the winning bidding price within 30 days from the day when the authority announces the name list of the winning bidders. If necessary, the duration for payment can be extended for 90 days at most, and the interest shall accrue daily at the basic lending rate published by the Bank of Taiwan on the day when the authority announces the name list of the winning bidders. The performance guarantee issued by domestic banks for the payment of the winning bidding price and the delay interest shall be submitted within 30 days from the day when the authority announces the name list of the winning bidders.
2. From the next year of the payment deadline regulated in the preceding item, the winning bidder shall pay the winning bidding price and the interest calculated according to the form in Attachment between January 16th to 31st every year. The interest is calculated according to the preceding year for the unpaid remaining sum of the winning bidding price. The interest of the first year shall be calculated from the next day of the payment deadline regulated in the preceding item to December 31st in that year.
3. The interest of the preceding item shall be calculated according to the annual basic lending rate of Bank of Taiwan prevailing in the year before the payment.
If the winning bidder pay the winning bidding price according to the first item in the preceding paragraph, the winning bidder shall submit the payment guarantee issued by domestic banks for guaranteeing the payment of the winning bidding price and the interest within 120 days from the day when the authority announces the name list of the winning bidders. The guarantee period shall be 10 years plus 3 months staring from the date of submission of the performance guarantee.
The amount of the payment guarantee for the interest of the winning bidding price in the preceding paragraph shall be calculated according to the basic lending rate published by Bank of Taiwan on the day when the authority announces the winning bidders.
Article 33
The domestic banks mentioned in the preceding Article include:
1. The foreign banks incorporated according to the Banking Law.
2. The foreign banks referred in Article 116 of the Banking Law.
Article 34
After the winning bidder or the carrier pay the remaining sum of the winning bidding price and its interest according to Item 2 of Paragraph 3 in Article 32, the authority shall notify the guarantee bank to be discharged from the guarantee responsibility of the paid remaining sum of the price.
Article 35
If the winning bidder does not obey Item 3 in Paragraph 3 and Paragraph 2 and 4 of Article 32, the winning of the bidding lose its effectiveness.
If the winning bidder or the carrier does not obey Item 2 in Paragraph 3 of Article 32, the authority shall notify the guarantee bank to carry out the responsibility for guarantee of the payment. If the price is still unpaid, the authority shall revoke the establishment consent, the permit and concession of system installation, and the allocated frequencies. The paid interest of the winning bidding price will not refunded.
Article 36
If the winning bidder at least makes the 30 percent of the payment of the winning bidding price according to Paragraph 2 of Article 32 or according to Item 1 in Paragraph 3 and Paragraph 4 of Article 32, the authority shall grant the winning bidder the establishment approval.
The valid duration of the establishment approval starts from the date when it is licensed to December 31st in 2004. If the winning bidder cannot complete the establishment and acquire the concession licensed during the valid period, the winning bidder shall apply for extension with explanation within one month and three months before the expiration. The extension shall not exceed one year and can only be applied for once. If the deadline is due, the authority shall revoke the establishment approval, the permit of system installation, and the allocated frequencies. The paid winning bidding price and the paid interest will not be refunded.
Article 37
After the winning bidder acquires the establishment approval, the winning bidder shall complete the registration for the alternation of the company in order to comply with these Regulations.
When the winning bidder conducts the registration for the alternation of the company according to the preceding paragraph, its paid-in capital shall comply with Paragraph 5 and 6 of Article 4.
Article 38
After the winning bidder acquires the establishment approval and complete the registration for the alternation of the company, the winning bidder shall apply for the permit of system installation with the following documents to the authority:
1. Application of frequency allocation and the permit of system installation
2. Copies of the registration for the alternation of the company
3. Certificates of the establishing confirmation of communications supervising systems or facilities through the negotiation with the executive authority of communications supervision
4. The plan of system construction: including system construction, names and quantity of construction facilities, the quantity of base stations and timetable for achieving the coverage rate of electric power regulated in Article 67
If the content in the documents of the application for the permit of system installation mentioned in the preceding paragraph is incomplete or is incorrect in its items, the authority shall notify for remedy in a time limit. If the remedy is not made in the time limit or the content is incomplete after remedy, the apllication shall be turned down.
After the winning bidder acquires the permit of system installation, the winning bidder shall construct the third generation mobile telecommunications network according to the plan of system construction mentioned in Item 4 of Paragraph 1.
When the winning bidder or the carrier change the plan of system construction mentioned in Item 4 of Paragraph 1, the explanation shall be submitted to the authority for approval.
If the winning bidder or the carrier constructs the follow-up network which is not included in the plan of system construction mentioned in Item 4 of Paragraph 1, the name and quantity list of the system construction facilities shall be submitted to the authority for approval of the system installation.
Without the permit of system installation according to these Regulations, any of the third generation mobile telecommunications network cannot be constructed.
The competent authority shall consult with relevant government entities in consideration of national security when approving or revoking a system development plan.
Article 39
The affairs of installation permits and radio station licenses of base stations installed by the winning bidders or carriers shall comply with the Regulations for Administration of Base Stations of Mobile Communications Network Businesses.
Article 40
(deleted)
Article 41
If the amount of the constructed base stations reaches more than 250, after the winning bidder or the carrier completes the construction of relevant exchange facilities and connection telecommunications facilities, the winning bidder or the carrier shall apply for the system technical examination to the authority. After passing the examination, the authority shall issue a certificate to prove the passing of the system technical examination.
If the system exchange facilities are added or altered after the carrier acquires concession, the carrier shall report to the authority for approval. After the addition or the alternation is completed, the carrier shall apply for the system technical examination to the authority. After passing the examination, the authority shall issue a certificate to prove the passing of the system technical examination and allow the system exchange facilities to operate.
The technical regulations concerning the system examination shall be promulgated by the authority.
Article 42
(deleted)
Article 43
After acquiring the permit of system installation, the winning bidder shall construct the approved systems. The connecting circuits among the winning bidder’s or carrier’s systems and other systems shall be rented from carriers operating fixed telecommunication network service and fixed satellite service. However, if the connecting circuits are in the same building, through the approval of the authority, they are not restricted in this regulation.
The connecting circuits facilities of the winning bidder's the third mobile telecommunications system network can be constructed after the winning bidder acquires the approval from the authority.
When the circuits of the approved construction are self-constructed wire optic fiber or cable, the construction shall comply with the following regulations:
1. The land for the laid internet pipelines shall be applied according to relevant regulations to the administrative authority.
2. If the laid internet needs to attach to the pipelines of public business or its related facilities, it shall be conducted according to relevant regulations.
If the circuits of the construction in Paragraph 2 are microwave links, the carrier shall apply for the permit of radio station installation. The needed frequencies will be allocated by the authority depending on the situation of the relevant technical development and the utilization of frequency resources.
Items of frequency allocation and station installation permit for circuits of the construction mentioned in the Paragraph 2, such as microwave links, shall be applied for according to relevant rules of Regulations Governing Microwave Station Establishment and Utilization of Type I telecommunications business. Items of frequency allocation and station installation permit for satellite links shall be applied for according to relevant rules of Regulations Governing Satellite Communications Business.
Article 44
(deleted)
Article 45
(deleted)
Article 46
When the winning bidder applies for the concession license, the winning bidder shall submit the following documents to the authority for application. After approved by the authority, the concession license will be issued:
1. Application for concession license
2. Photocopy of the letter of consent for establishment
3. Photocopy of the certificates of the corporation registration
4. Certificates of eligibility of system technical examination
5. Certificates of tariff approved by the authority for reference
6. Certificates of operation regulations approved by the authority
7. Certificates of a sample of the service contract between the operator and users which is approved by the authority
Article 47
The following items shall be contained on the concession license:
1. Name of the operator, its representative, and the location of its company
2. Type of business
3. The amount of total capital and total paid-in capital
4. Service areas
5. Used spectrum
6. Valid term
7. Issuance date
Article 48
The valid duration of the concession license starts from the issuance date to December 31st in 2018. After this date, the license loses its validity.
When the concession license in the preceding paragraph expires, the method of disposition is decided by the authority.
Article 49
The carrier shall starts its operation within six months from the day when the concession license is acquired. If the carrier does not starts its operation in the time limit, the authority shall revoke the concession and the allocated frequencies. The paid winning bidding price and the interest will not be refunded.
If the winning bidder or the carrier violates any relevant regulations, after the authority revokes the establishment approval and the concession, the paid winning bidding price and the interest will not be refunded unless there are other rules provided in these Regulations.
Article 50
If the letter of consent for establishment, the installation permit, the station license, and the concession licenser are lost or damaged, they shall be applied for to the authority with explanation. If there is any alternation to the items specified on them, the applicant shall apply for the renewal.
The letter of consent for establishment, the installation permit, the station license, and the allocated radio frequency shall not be rented, lent, transferred encumbered to others unless there are other regulations in laws provided.