Goto Main Content
:::

Chapter Law Content

Chapter 2: Operation Concession
Section 5: Establishment Preparation
Article 31
Winning bidders shall remit a performance bond and the minimum advancement bond of charter fee to the NCC within thirty days from the date after the arrival of notice of award of bid, and the NCC shall issue an establishment approval. Any failure to make remittance shall be subject to annulment of award of bid.
Article 32
The Performance bond for the Services shall be NT$ forty million (40,000,000), and the minimum advancement bond of charter fee shall be NT$ two hundred and ten million (210,000,000). Any of the following payment methods are accepted:
1. Direct deposit to the assigned bank account of the NCC.
2. A letter of performance guarantee issued by a bank legally incorporated domestically.
3. Negotiable certificate of deposit pledged with the NCC.
The period of time of guarantee in the letter of guarantee mentioned in the preceding paragraph shall begin from the date of the remittance of the performance bond, or minimum advancement bond of the charter fee, and end on the date of the expiration date of the establishment approval plus a 6-year term of charter.
Winning bidders that apply for extending the effective period of the establishment approval shall also apply for the extension of the performance guarantee as referred to in the preceding paragraph.
Article 33
The performance bond remitted by winning bidders shall be refunded in three stages according to the following regulations:
1. Successfully achieve the wireless wave coverage of base stations in which the population accounts for 10% of the total population in service area, and acquire a charter issued by the NCC by passing the NCC’s acceptance inspection on the completed telecommunication facilities and wiring equipment installation, and then 10% of the performance bond may be refunded or the guarantor bank may relieve partial performance responsibility equivalent to 10% of performance bond.
2. Successfully achieve the wireless wave coverage of base stations to 40% of the county and city in the service area and 70% of population in every county and city in the service area, and pass the NCC’s acceptance inspection, and then 30% of the performance bond may be refunded or the guarantor bank may relieve partial performance responsibility equivalent to 30% of performance bond.
3. Within in five years after an establishment approval is issued, successfully achieve the wireless wave coverage of base stations to 70% of total population in the service area and half of the county and city in the service area, and pass the NCC’s acceptance inspection from the acquisition of system installation, then the remaining amount of performance bond may be refunded or the guarantor bank may relieve the performance responsibility equivalent to the remaining of performance bond.
Article 34
An establishment approval is valid for 1 year and 6 months. Winning bidders that are unable to complete the establishment within a time limit and acquire a charter through due process shall apply for extension to the NCC with explanation within one month starting from three months prior to the expiration of approval. Length of extension may not exceed one year and only one extension is allowed.
The NCC may revoke the establishment approval, system installation permit, and frequency granted to the winning bidder, if such bidder fails to meet the time limits provided in the preceding paragraph; the performance bond and the minimum advancement bond of charter fee will not be refunded; or, or the NCC shall notify the guarantor bank to fulfill the responsibility of performance guarantee.
Article 35
After acquisition of establishment approval, the winning bidder shall complete necessary registration of company changes and complete shares issuance within three months after company changes registration. Winning bidders that are unable to complete the necessary registration and complete shares issuance within a time limit shall apply for extension to the NCC with an explanation within one month starting from three months prior to the expiration of approval. Length of extension may not exceed three months and only one extension is allowed.
The NCC may revoke the establishment approval, system installation permit, and frequency granted to the winning bidder, if such bidder fails to meet time limits provided in the preceding paragraph; the performance bond and the minimum advancement bond of charter fee will not be refunded; or, the NCC shall notify the guarantor bank to fulfill the responsibility of performance guarantee.
Winning bidders shall comply with Paragraph 3 of Article 4, Subparagraph 4 of Paragraph 2 of Article 18, and Paragraph 1 of Article 63 pertaining to paid-in capital when completing company changes registration pursuant to Paragraph 1.
Article 36
After obtaining the installation permit and completing the changing registration for the company, the winning bidders shall apply for the permit of system installation and for the allocated frequency to the NCC with the following documents:
1. Application forms of the system installation permit and the frequency allocation
2. Copies of certificates of the changing registration for the company
3. Documents or certificates of the confirmation to the establishment of the telecommunications supervising systems or facilities after the negotiation with the telecommunication supervising and executing authorities
4. System Construction Plan: The plan includes system structure, name and quantity of the installation facility, quantity of base stations and the time schedule in the business plan for passing the system technology examination regulated in Paragraph 1 of Article 39.
After licensed with the permit, the service providers shall apply for the system installation permit for the operating duration with application forms of system installation permit, certificates of confirmation to the establishment of the telecommunications supervising systems or facilities after the negotiation with the telecommunication supervising and executing authorities, and the system construction plan (including system structure, name and quantity of the installation facility, and the quantity of base stations and time schedule in the business plan for achieving the wireless wave coverage ratio regulated in Article 66.)
If the required documents mentioned in the preceding two paragraphs for the application of the system installation permit are incomplete, or if the content of the required documents is incomplete or incorrect in its terms, the NCC shall give a notification and request for a remedy in a time limit. If the applicant does not make a remedy in the time limit, or if the remedied documents remain incomplete, the application shall be rejected.
After the winning bidders or service providers acquire the system installation permit, they shall construct the wireless broadband access network according to the system construction plan as mentioned in point 4 of Paragraph 1 and Paragraph 2.
The valid duration of the permit in the period of constructing the system is one and half year. If the construction cannot be completed in the valid period, the explanation for the incompletion shall be stated for the application for the extension. The extension shall not exceed one year and can be applied for once only. If there is any delay, the NCC can revoke the construction consent and the system installation permit and does not refund the performance bond deposit, or the NCC shall notify the guarantor bank to perform the suretyship.
Extension due to the force majeure shall be allowed to be applied according to the time delayed by the force majeure without the extension restriction regulated in the preceding paragraph.
If the system installation permit mentioned in the preceding two paragraphs expires, the extension of the permit for construction period shall be applied for simultaneously.
The system installation permit in the preceding five paragraphs shall not exceed the valid period of the construction permit. When the winning bidders or service providers change the system construction plan mentioned in point 4 of Paragraph 1 and Paragraph 2, the explanation for the alternation shall be stated to the NCC for approval. However, the alternation shall not influence the performance bond deposit and the responsibilities mentioned in the business plan.
If the winning bidders or service providers want to construct the follow-up network which is not included in the system construction plan the Paragraph 2, a list of name and quantity of system construction facilities shall be submitted for the application to the NCC for the system installation permit.
Those who do not acquire the system installation permit according to these Regulations cannot establish any or the whole of the wireless broadband access network.
The winning bidders or service providers shall divert the developed network of wireless broadband access experiment as one of its system network. The developed network of wireless broadband access experiment shall be established by themselves with approval or by other administrators with assignment and approval.
If the bidders or service providers adopt the diversion mentioned in the preceding paragraph, the diversion shall be included in the system construction plan when applying for the system installation permit according to Paragraph 1. Or the bidders or service providers shall apply for the alteration of the system construction plan according to Paragraph 8 or shall apply for the follow-up network installation permit to the NCC according to Paragraph 9. If the facilities are located in the same places before and after the diversion, they shall be free from dismantle before acquiring the installation permit.
If the subscribers who want to continue to use the original service after the diversion of the developed network of the wireless broadband access experiment, they can be the subscribers of the services when the winning bidders or service providers comply with the Regulations in Paragraph 1 of Article 12.
Article 37
The affairs of installation permits and radio station licenses of base stations installed by the winning bidders or service providers shall comply with the Regulations for Administration of Base Stations of Mobile Communications Network Businesses.
Article 38
(deleted)
Article 39
A winning bidder or service provider may apply for a system technical inspection to the NCC if its wireless wave coverage of base stations reaches 70% of the population in any county or city within its service area and the related switching equipment and telecommunication connection equipment have been completed. Certificates of system technical inspection qualification shall be issued after the inspection result is found to be satisfactory.
Service providers that do not provide operational service in every county and city within its service area at the same time shall develop its business by county and city. Operation is only allowed after related switching equipment and telecommunication connection equipment have been completed and the result of system technical inspection by the NCC is found to be satisfactory.
The development operation mentioned in the preceding paragraph may be exempted from the inspection of base station wireless wave coverage.
After a service provider has obtained the license, any addition or change of system switching equipment shall require prior approval from the NCC; upon completion of the addition or change the provider shall submit an application for a system technical inspection to the NCC. The NCC shall issue a certificate of system technical inspection qualification before operation of the system exchange facilities if the result of the inspection is found to be satisfactory.
Specifications for technical inspection on base stations shall be defined by the NCC.
Article 40
(deleted)
Article 41
After a winning bidder has obtained system construction approval, the construction shall adopt the approved system. The connection circuits between the system and other systems shall be leased from fixed network communication service providers or fixed satellite telecommunication service providers. If the connection circuits are installed in the same building, then an exception may be granted by the NCC.
After obtaining approval from the NCC, the winning bidder may install circuits for connecting equipments within the wireless broadband access system network by itself.
If the circuits constructed pursuant to the approval under the preceding Paragraph consist of fiber optic or copper cables built by the winning bidder itself, such construction shall be carried out in accordance with the following provisions:
1. An application for an approval shall be filed with the administrative authorities in accordance with applicable laws and regulations for using the land needed for rolling out the circuit lines of the network.
2. If the circuit lines of the network rolled out by the winning bidder need to be attached to the pipelines of the cables or relevant facilities owned by public enterprises, such attachment shall be proceeded in accordance with applicable laws and regulations.
If the circuits constructed under Paragraph 2 of this Article are microwave connections, a station erection permit is required, and the NCC may assign the frequency needed thereby after taking into account the development of relevant technologies and the condition of use of the frequency resources.
If the circuits constructed under Paragraph 2 of this Article are microwave connections, matters relating to the assignment of frequency and station erection permit shall be handled in accordance with the applicable provisions in the Regulations on the Establishment and Use of Microwave Stations of a Type One Telecommunication Enterprise. In the case of satellite connections, matters relating to the assignment of frequency and the station erection permit shall be handled in accordance with the Administrative Rules on Satellite Telecommunication Services.
Article 42
(deleted)
Article 43
(deleted)
Article 44
The winning bidder shall apply to the NCC for issuance of a concession charter by submitting the following documents, and the charter shall be issued upon the approval of the NCC:
1. Application form for a charter
2. A photocopy of the establishment approval
3. A photocopy of the Company Registration
4. Documents showing the system has passed the technical inspection
5. Document showing the competent authority's consent to the service charges
6. Document showing the NCC’s approval of the code of business operational regulations of the company
7. Document showing the NCC’s approval of a sample of the service contract between the service provider and users
Article 45
A concession charter shall contain the following items:
1. Name of the service provider, its representative and the location of its business office
2. Type of business
3. The amount of total capital and total paid-in capital
4. Service area
5. Frequency range used
6. Valid term
7. Issuance date
Article 46
The valid period of a charter shall be six years and shall lose its validity upon expiration.
The charter renewal may be applied for upon expiration of a charter, and such renewal charter shall be valid for six years and renewal is limited to one time only. Service providers shall apply for renewal to the NCC within three months during the last 9 months prior to the expiration date of the charter.
Service providers shall apply for charter renewal by submitting the following documents:
1. Application form
2. Self-assessment report on the execution of the original business plan
3. Self-assessment report on performance of frequency use
4. Business plan for the next six years
5. Other documents required by the NCC
An application for charter renewal as provided in Paragraph 2 shall be rejected in any of the following circumstances:
1. Any failure to complete the system construction plan without justifiable reasons, or responsibilities stated in the business plan not being executed, will result in the performance bond not being entirely refunded,
2. Any failure to make effective use of frequency resource and no improvement is made as ordered by the NCC
3. Entire or partial service is suspended due to violations of laws
4. Unilaterally pause or termination of entire or partial service without approval
5. Unilaterally transfer entire or partial service or the majority of business of property without approval
6. Causing major consumer disputes and is incapable of solving such disputes in the correct manner
7. Other major flaws that compromise the service provider’s operation capability
The NCC may adjust the charter fee in consideration of market competitiveness when issuing a renewal charter.
Article 47
Service providers shall commence service within six months from the date of charter issuance; otherwise the NCC may revoke the charter issued and the frequency assigned; the remitted performance bond and the minimum advancement bond of charter fee shall not be refunded, or the NCC shall notify the guarantor bank to execute the guarantee responsibility.
If the winning bidder or service provider violates related laws, and the establishment approval or charter has been revoked by the NCC, the performance bond and the minimum advancement bond of charter fee remitted by such winning bidder or service provider shall not be refunded, or the NCC shall notify the guarantor bank to execute the guarantee responsibility.
Article 48
Any lost or damaged establishment approval, installation permit, radio station license, or charter shall be reported to the NCC with an explanation for replacement. In case the stated items have changed, please report to the NCC for renewal.
Establishment approval, installation permit, radio station license, charter, or assigned radio frequency may not be leased, lent transferred, or assigned to a third party unless otherwise provided by laws.