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.