The winning bidder may remitthe winning bid in one lump sum or in two-to five-year installments; the payment shall be remittedto the account designated by the competent authority via wire transfer; once the payment method of the winning bid has beenselected, it may not be changed.
Upon selecting to remit the guarantee in full in one lump sum per the preceding Paragraph, the bidder shall complete the remittance in the ensuing thirty days from the date the competent authority has announced the nominated bidders list.
When selecting to remit by installments as stipulated under Paragraph 1, the nominated bidder or the operator shall remit the bid award guarantee and the interest in accordance with the following stipulations:
1.The bidder shall remit the initial installment within thirty days from the competent authority has announced the nominated bidders set, with the amount being the nominated bid's bottom price.
2.Effective from the following year of the foresaid remittance cutoff day, the bid award guarantee and the previous year's interest onthe remainder of the bid award guarantee to be remitted shall be calculated based on the Annexed table 2 spanning January 16 to January 31 of each year; however, the interest to be remitted in year one is to span from the following day of the foresaid remittance cutoff day to December 31 of that year.
3.The foresaid interest is to be calculated based on the previous year's maximum baseline interest rate adopted by the Bank of Taiwan on December 31, plus 2.14 percent as the annual interest rate.
If the winning bidder remitsthe winning bid in accordance with Subparagraph 1 of the preceding paragraph, it shall, within 120 days from the date the competent authority announces the winning bidders' list, provide a domestic bank's Letter of Guarantee for Performance Bond as the payment guarantee for the balance of the winning bid payable and the incurred interest. The guarantee period shall be the number of installment years plus three months from the date of providing the Letter of Guarantee in accordance with the installment method; if it is not completed, the winning eligibility shall bedisqualified, and the paid winning bid and its interest shallnot be refunded.
The guarantee amount to be paid on the foresaid balance of the bid award guarantee shall be calculated using the baseline interest rate figure the Bank of Taiwan adopts on the day the competent authority has announced the nominated bidders list, plus 2.14 percent as the annual interest rate.

• Annexed table 2 Calculation table of the ratio of payments by installmentsand the balance ratio of the payable interest of the winning bid (five-year period).pdf

The term local banks specified in the preceding Article encompasses:
1.The local banks founded as stipulated by the Banking Act.
2.The foreign banks referred under Article 116 of the Banking Act.

Following the nominated bidder or the operator posting the balance of the bid award guarantee andthe interest under Subparagraph 2 of Paragraph 3 of Article 36, the competent authority shall notify the guarantee bank to cancel the portion of the guarantee liability on the remitted amount.

In the event where the nominated bidder fails to complete the process under Subparagraph 1 of Paragraph 3, or Paragraph 2 of Article 36, the bid award granted to the bidder shall be invalidated.
In the event where the nominated bidder or the operator should fail to complete the process as stipulated under Subparagraph 2 of Paragraph 3 of Article 36, where the competent authority has notified the guarantee bank to honor its payout guarantee liability, and in the event where the payment should remain pending, the competent authority shall abolish the founding inception consent, system installation permit, concession permit and the assigned frequencies, and the bid award guarantee of the bidder and the interest shall not be reimbursed.

After the winning bidderhas paidthelump sum or the down payment of the winning bid and provision ofthe Letter of Guarantee for the balance of the winning bid and the interest to the competent authority, in accordance with the provisions of Article 36, the winning bidder shall apply to the competent authority for the issuance of the business establishment approvalby providing the business plan and the information and communications security maintenance plan. However, awinning bidder thatis already an operator shall not berequired to apply for the issuance of thebusiness establishment approval, but shallapply to the competent authority for approval of the change of the business plan and the information and communications security maintenance plan.
The business plan as described in the preceding Paragraph shall specify the following matters:
1.Business items.
2.Business area.
3.Summary of telecommunications equipment:
(1)The types and characteristics of mobile broadband technologies adopted, including the name of the technology, the maximum mobile speed that can be supported, the average spectrum usage efficiency, the maximum downlink rate for high-speed cell site equipment specifications, etc.
(2)System equipment development plan and schedule, including the plan to gradually increase the number of high-speedtransmission base stations in remote areas and population coverage. Where the nominated bidder is currently an operator, its number of high-speed transmission base stations and population coverage rate shall be higher than that of its previously approved business plan (prior to bidding).
(3)System framework, communications type, and service type.
(4)Wireless radio frequency utilization plan.
(5)The installation plan for communications surveillance system.
(6)The construction plan of the cell broadcast entity. However, thosethatonly plan to provide special application field services may state the types of the services and be exempt from specifying the construction plan.
4.Financial structure: The estimated total capital and total paid-in capital for company change registration, which shall be submitted after winning the bid; and expected sources of funds and fund utilization plan.
5.Technological capability and development plan.
6.Charge standards and calculation methods.
7.Staff organization and shareholding status: Photocopy of company registration certificate or document, list of directors and supervisors, list of managers, list of shareholders who hold more than 1 percent of shares, calculation sheet of foreign shareholders, report of affiliated and subsidiary companies, and business report of holding companies.
8.Estimated date of launching the business.
9.Relevant measures concerning consumer rights and protection.
10.Business plan summary, including information that can be quoted or published by the commission.
11.Other matters specified by the review process.
When a winning bidder intends to share the public telecommunications networks withother winning bidders, it shall specify its control capability of the said system in the business plan specified in the preceding paragraph.
The control capability referred to in the preceding paragraph means that the mobile broadband system shall includethe following functions:
1.When a winning bidder uses the shared public telecommunications network to provide its own telecommunications services, its shall maintaincontrol capabilities (including fault management, configuration management, performance management, account management, security management, etc.), which are not affected by its partners, over the various resources (including hardware, software, network functions, systems, frequencies, and telecommunications numbers).
2.The winning bidder shall specify the business cooperation model that has control capability over the public telecommunications network in the cooperation contract.
3.The winning bidder shall at least self-build the following core network components or functions:
(1)For those with the fourth generation mobile communications network: Mobility Management Entity (MME), Home Subscriber Server (HSS), Policy and Charging Rules Function (Policy and Charging Rules Function) PCRF), Serving Gateway (SGW), and Packet Data Network Gateway (PGW).
(2)For those with the fifth generation mobile communications network: Access Management Function (AMF), Session Management Function (SMF), Authentication Server Function (AUSF), unified data Unified Data Management (UDM), Policy Control Function (PCF), and User Plane Function (UPF)
The information and communications security maintenance plan of Paragraph 1 shall contain the following items:
1.Information and communications security policy and objectives
2.Core business and its importance
3.Information and communications security maintenance scope of mobile broadband system
4.Information and communications security promotion organization
5.Allocation of specialized manpower and funding
6.Position of Chief Cyber Security Officer
7.Stock-taking plan for information and communications systems (including system equipment complying with the ITU-or 3GPP-issued information and communications security regulations)
8.Cyber security risk assessment
9.Cyber security protection and control measures
10.Relevant mechanisms for notification, response and drill of cyber security incidents
11.Evaluationand response mechanism of cyber security information
12.Management measures for the outsourcing of the information and communications system or service
13.The assessment mechanism of the personnel involved in the business involving the cyber security matters
14.The continuous improvement and performance management mechanism of the cyber security maintenance plan and implementation
15.The establishment and implementation plan of the cyber security detection and protection (including the cyber security protection framework, defense in depth and its establishment schedule.)
16.Security protection measures for the user information collected, stored, processed and utilized via implementing the aforementioned implementation plan
17.Implementation plan passing the cyber security management certification
The mandatory provisions and themethods ofprovision ofthe documents specified in Paragraphs 2 and 5 shall be specified and announced by the competent authority.
The competent authority shall review the business plan and the cyber security maintenance plan, and if necessary, it may order the winning bidder to make certain adjustments tothe content.
Operators shall operate in accordance with the content of their business plans. If there are changes in mattersspecified in Subparagraphs 1 to 3 and 6 to 9 of Paragraph 2, they shall specify the reasons to the competent authority for approval; if there are changes in any other matters, the operatorshall specify the reasons to the competent authority for reference.
For towns and cities with below "national average population density," winning bidders may, if the provisions of Paragraph 4 are met, share various types of public telecommunications networks with other winning bidders, and for the rest of the regions, they may use the method of co-construction and co-location to share network accessibility.
In order to construct the public telecommunications network specified in Paragraph 3, the winning bidder shall complete the covenants of the original business plan before the implementation of the Telecommunications Management Act, prior toapplying to the competent authority for the change of the business plan.
Operators shall operatein accordance with the content of their cyber security maintenance plans.If any changesare made to the contentof the plan, they shall specify the reasons to the competent authority for approval.
Where the operator is deemed to be in any of the following circumstances by the Fair Trade Commission, the competent authority shall not approve amendment to its business plan in regard to relevant matters:
1.A business merger that should have been filed.
2.A business merger that is prohibited.
3.An unapproved concerted action.
The validity of establishment approval is within two years after the date of issue. Where the bidder is unable to complete the establishment and acquire a concession license according to the law shall, within one month, and three months prior to the validity date, apply for an extension to the competent authority with reasons specified. The extension must not exceed one year and must be limited to once only. The establishment approval will lose its effectiveness upon the date of expiry; the competent authority shall revoke the system installation approval and allocated frequency and the payment for bidding and interest shall not be returned.

The nominated bidder, upon securing the inception consent letter, shall file for a company modification registration to conform to stipulations set by the rules.
Whenthe nominated bidder completes the company modification registration per the foresaid stipulation, the nominated bidder's paid-in capital amount shall conform to that stipulated under Paragraph 5 and 6 of Article 4.

Upon the acquisition of establishment approval and completion of company change registration, the nominated bidder shall submit the following documents to the competent authority for frequency allocation:
1.Photocopy of establishment approval.
2.Photocopy of company change registration document.
3.Application for frequency allocation.
Where foresaid bidder is currently an operator, it shall submit the following documents to the competent authority for frequency allocation:
1.A photocopy of the change approval letter for the business plan and the information and communications security maintenance plan
2.Application for frequency allocation.
Where the mobile phone, third-generation mobile communications or wireless broadband access operator returns the frequency segment in advance,the competent authority shall notify relevant nominated bidder or operator and request it to apply for frequency allocation or change.
Where foresaid nominated bidder or operator applies for an amendment, it shall submit the application for frequency allocation to the competent authority.

The nominated bidder shall, upon securing the launching consent letter and completing the company modification registration, submit the following documents to apply with competent authority for a system installation permit:
1.The frequency assignment approval letter and the system installation permit applicant form.
2.Photocopy of the company modification registration document.
3.Proof of documentation on launching a communications surveillance system or equipment negotiated and confirmed with competent communications surveillance enforcement agency.
4.System construction plan:
(1)System framework, and brand, model, quantity, function and capacity of construction equipment.
(2)The number of base stationsand the schedule for reaching the coverage of the radio waves specified in Article 66.
(3)The system equipment complying with the information and communications security regulations issued by the ITU or 3GPP.
(4)The brand, model, quantity, function and capacity of the protection facilities for information and communications security
In the event where the mandated documents applying for the system installation permit should be deemed incomplete, or the content of the entry should be deemed incomplete, orthe entries should contain erroneous entries, the competent authority shall notify the bidder to adopt retroactive correction within a prescribed deadline; when failing to adopt retroactive correction exceeding the deadline or the retroactive correction should be deemed incomplete, the application shall be declined.
The nominated bidder that has been the incumbent operator shall submit the documents per Subparagraph 1, 3 and 4 of Paragraph 1 to apply for system installation permit.
The nominated bidder shall, upon obtaining the system installation permit, develop the mobile broadband system in accordance with the system development plan specified under Subparagraph 4 of Paragraph 1.
The nominated bidder or the operator, when modifying the system launching plan in accordance with Subparagraph 4 of Paragraph 1, shall state the reason why and voluntarily declare it with the competent authority for approval.
The nominated bidder or the operator, when developing the subsequent network beyond that described in thesystem development plan in accordance with Subparagraph 4 of Paragraph 1, shall submit a system development equipment description and quantity checklist to apply with the competent authority for a system installation permit.
The nominated bidder or the operator shall construct a mobile broadband system in accordance with the provisions of Articles 47 and 66, and construct its system by mobile communication technologies approved and announced by ITU, 3GPP or the competent authority.
The bidder, when failingto obtain a permit to begin operations or failing to obtain an approval, may not install the entire or a portion of the mobile broadband system.
The competent authority shall consult with relevant government entities in consideration of national security when approving or revoking a system development plan.

As a mobile telephone service operator or wireless broadband access service operator, the nominated bidder, when utilizing the nominated frequencies or the frequencies obtained per stipulatedunder Article 81, where the frequencies are initially used for its mobile telephone service, shall at the time of applying for the approval and issuance of the operation's concession license using the frequencies also return its mobile telephone service or wireless broadband access service concession license operating on the same frequency segment.

The nominated bidder or operator may apply to transfer its own system equipment or equipment of other mobile communications operator as a part of itsmobile broadband system.
Where foresaid transfer is involved with business termination, or business or asset transfer of mobile communications operator, it shall conduct relevant activities according to Article 15 of the Act.
The nominated bidder or operator that plans to transfer equipment in accordance with Paragraph 1 shall include the system installation, when applying for system installation permit according to Paragraph 1 of Article 43; change to system installation plan according to Paragraph 5 of Article 43; or installation approval for the following network according to Paragraph 6 of Article 43. Equipment that is located in the same location prior to and preceding the installation may not be removed upon receipt of the installation permit.
Those who transfer system equipment that is in use may be exempted from system technical examination if no change has been made to the system hardware / software equipment after the transfer.

The nominated bidder or operator, when applying for the transmission station installation permit and the radio transmission station license and related matters, shall complete the implementation in accordance with Article 46 of the Act and per the mobile communication networking operation's transmission station installation and operation management measures.

Only when the nominated bidder completes the installation of more than 250 fifth-generation mobile communications base stations, may it apply to the competent authority for verification of the system technology verification. After the verification has been confirmed, a system technology verification certificate shallbe issued.
The foresaid nominated bidder shall complete the system development three months prior to the expiry of the founding inceptionconsent letter, and complete the system technology validation filing procedure with the competent authority.
The operator shall managechanges in the Cell Broadcast Entityequipment in accordance with the provisions of Paragraph 5 of Article 55, within one year after obtaining the concession license open for application in 2019 or the announcement of the amendment to the unified message exchange format for public warning system. After completion, it shall apply to the competent authority for system technology verification.
When anoperator adds or changes its system switching equipment, or when the number of base stationsin the new frequency band exceeds250, it shall first apply to the competent authority for approval;after the completion of the addition or modification,it shall apply to the competent authority for system technology verification.Said equipmentcan only be used after it has passedverification, and a system technology verification certificate has been issued by the competent authority.
The nominated bidder or the operator's system technology validation process shall be implemented per the mobile broadband system validation technology guidelines.

The nominated bidder, upon securing the system installation permit, shall complete the system development per its permit; of the connecting circuit between the bidder's system and other systems, the bidder shall lease from the fixed communication service operator or satellite fixed communication service operator, except where a connecting circuit is situated in the same building and has been approved by the competent authority.
Upon approval by the competent authority, the nominated bidder or the operator may develop on its own, the electric circuit for the connecting server equipment of the mobile broadband system.
In the event where the electric circuit approved for development is of a self-developed wired fiber optical or copper cables, the development shall conform to the following stipulations:
1. Of land reserve for laying the network routes, the bidder is to file a request with the management agency for an approval per relevant legal and regulatory stipulations.
2. Of laying the network that requires attaching to the wire routes of state enterprise piping or relevant facilities, the bidder is to complete the process per relevant legal and regulatory stipulations.
If the circuit developed per the preceding Paragraph 2 be of a microwave chain route, matters concerning the frequency assignment, transmission station installation permit and so forth shall be implemented per the Type-I Telecommunication Enterprise Microwave Radio Transmission Installation/Utilization Management Measures; in the case of a satellite chain route, matters concerning the frequency assignment and transmission station installation permit shall be implemented per the Regulations for Administration on Satellite Communications Services.

The nominated bidder, when applying for the previously released approval and issuance of the concession license, shall submit the following documents to apply with the competent authority, and subject to the competent authority's approval is to be issued with the concession license.
1. Concession license application.
2. Photocopy of the inception consent letter.
3. Photocopy of company registration proof of documentation.
4. Proof of documentation on satisfactory system technology validation.
5. Proof of documentation on the completion of system per Article 12 of the Type-I Telecommunication Enterprise Billing ManagementMeasures.
6. Proof of documentation on company business rules and regulations the competent authority has approved and finalized.
7. Proof of documentation on service contract template to be entered into with the subscriber the competent authority has approved and finalized.
The nominated bidder that has been the incumbent operator shall submit the documents in accordance with sSubparagraph 1 and 4 of preceding Paragraph 1 to apply with the competent authority, and subject to the competent authority's approval shall be issued with the previously released concession license.

The concession license shall disclose the following matters:
1.The name of the operator, director and registered company address.
2.The business type.
3.The total capital and total paid-in capital.
4.The operating region.
5.The operating frequency.
6.The validation period.
7.The license issuing date.

The validity of applications for concession licenses isas follows:
1.Available from 2013: From the date of issue to December 31, 2030.
2.Available from 2015: From the date of issue to December 31, 2033.
3.Available from 2017:
(1)1800 MHz frequency segment: From the date of issue to December 31, 2030.
(2)2100 MHz frequency segment: From the date of issue to December 31, 2033.
4.Open for application in 2019:
(1)1800MHz frequency band: from date of issue until December 31, 2030.
(2)3500MHz frequency band:from date of issue until December 31, 2040.
(3)28000MHz frequency band:from date of issue until December 31, 2040.
The validity of foresaid concession license will lose effectiveness upon the expiry. The competent authority shall establish rules governing expired licenses.

The operator is to begin operating the business within a six-month period from the date it obtains the concession license, and when exceeding the deadline, the competent authority shall abolish the concession and the assigned frequencies; the remitted bid award guarantee and the interest will not be reimbursed.
The operator's individually issued concession and establishment permit shall be abolished by the competent authority, once the operator is deemed as falling under any of the circumstances stipulated in Paragraph 1 of Article 10, each subparagraphs of Paragraph 1 or Paragraph 3 of Article 14.
In the event where the inception of the nominated bidder or the operator should be abolished due to breaching relevant legal and regulatory stipulations, the remitted bid award guarantee and the interest will not be reimbursed, unlessotherwise stipulated by the rules.

In the event where the inception consent letter, or the installation permit letter (certificate), or the transmission station license, or the concession license should be lost or destroyed, the bidder shall state the reason to apply with competent authority for a reissue; when any change occurs to the entries, the bidder shall file a request with competent authority for a replacement reissue.
Unless otherwise stipulated by laws and regulations, the inception approval letter, the installation permit letter (certificate), the transmission station license, the concession license, or the assigned wireless radio frequencies may not be leased out, loaned out, transferred, or designated with guarantee burden to any individual.