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Chapter Law Content

Chapter 2 Operating Franchise
Section 1 Tender and examinations
Article 8
The NCC can launch the examination committee to examine business proposal submitted by the examination applier. The examine items and standard should be approved and announced by the NCC.
The aforementioned guidelines of establishing examination committee should be approved by the NCC.
The examination process guidelines of the service (hereinafter referred to as the Examination Process Guidelines) should be drafted by NCC and be reported to the NCC for approval and promulgation.
Article 9
The operator applying the business should have the document listed as below, and bring up the application to the NCC:
1. Application documents.
2. Business proposal.
3. Sealed quotation of prices.
4. A copy of the cash remittance note of the tender bidding money.
5. A copy of the cash remittance note of the charge for examination.
6. Other document stipulated in the Examination Operation Guidelines
In the case where the application documents are incomplete or the contents thereof are incomplete, NCC shall notify the applicant and prescribe a time limit for correction; if the applicant fails to correct before the time limit or the correction remains incomplete, the application shall be dismissed, and NCC shall return the tender bidding money and the charge of examination without interests required.
The amount of money for bidding is NT 1,500,000. After applicant pay the money for bidding, it cannot be returned before the tender result proclaimed except there are stipulation in the regulation rules.
The bidding money and the examination fee should be remitted into the account that NCC assigned separately by telegraph. The applicants should fill in the corporation or the name of preparatory institute, address, and telephone numbers when they remitted the money by telegraph.
The application documents submitted by applicants referred to the rule of paragraph 1 shall not be returned after these documents delivered.
Article 10
The aforementioned business proposal should record issues down below:
1. Business operating items;
2. Business operating areas;
3. Communication models;
4. Brief introduction of operating telecommunication equipments (as below):
(1) Submit the system network establishment project, timetable, the default base station distribution areas and numbers in the date stipulated in paragraph 2 of Article 27.
(2) Operating proposal utilizing the radio frequency band and the anticipative efficiency analysis of the frequency spectrum usage.
(3) System structure and the operating theorem.
(4) Transmission network plan.
(5) Lists of Service Types that the system can afford.
(6) Working freq. Band, bandwidth, the Max. radio-frequency power, modulating method and the radio-frequency spectrum, harmonic waves and mixed carrier waves, and the performance of antenna…etc.
(7) If the radio-frequency power is adjustable, notify the adjustment range of the radio-frequency power and adjust principles.
(8) Air interface standard.
(9) Interfacing standard for the interconnections to other telecommunication networks.
(10) Description of the system standardization and future technical improving development.
(11) Quality of system service.
(12) Status of system usage in the worldwide
(13) Statement of the devotion to domestic telecommunication industry.
5. Financial structure:
(1) The existing corporation should provide the financial report of the latest 3 years, including the balance sheet, income statement sheet, the shareholder interest variety sheet, the cash flow chart, copies of per year's business tax settlement application and the attachment tables.
(2) The establishment institute should provide the founder list, the drafts of company constitutions, name list of the subscription book (Sorted by stock hold percentage) and the explanation of the capital account.
(3) Expectations of the capital source and capital manipulation proposals in the future 5 years.
(4) Expect and draw up with the future 5 years' entity balance sheet, statement of income and cash flow sheet.
(5) Sensitivity level Analysis for the financial project and the correlated response strategic proposal.
(6) Foreign shareholder or subscription percentage calculating sheets.
6. Technical ability and development proposal:
(1) Manager's professional knowledge about telecommunication and working experience.
(2) The configuration of professional technical man.
(3) Engineering designing and maintenance description (including system design, system installation, and maintaining operation proposals)
(4) Personnel training and development proposals.
(5) Research projects.
(6) Future 5 years service expansion proposals and the expectation goals (including the expectation of market size, market sharing percentage, the expectation of client population, service promoting method, and the report of market survey)
(7) The concrete corporation plans with domestic industries.
7. Fee schedule and the calculation method.
8. Personnel organization:
(1) The existing corporation should provide the corporation constitution, copies of business registration, copies of company license, directors, superiors, manager and the subscription book (sorted by stock hold percentage)
(2) The establishment institute should provide the founders list, the drafts of company constitutions, the preserved managers, and the subscription books (sorted by stock hold percentage)
9. Scheduled date for commencement of operation.
10. Correlated measures that guarantee consumers' rights and benefits.
11. Business proposal abstracts, which can provide NCC the information to quote and announce.
12. Other items which is stipulated to provide in the Examination Process Guidelines.
The format of the aforementioned application documents and the detail of items that by law should be included will be stipulated in the Examination Process Guidelines.
In the case where the contents shall be included in the application documents and business proposals are incomplete, NCC shall notify the applicant and prescribe a time limit for correction; if the applicant fails to correct before the time limit or the correction remains incomplete, the application shall be dismissed, and NCC shall return the tender bidding money and the charge of examination without interests required.
Article 11
The business operating areas are allocated in Grand Taipei Region (including Taipei City, New Taipei City, and Keelung City), Taichung City, and Kaoshiung City.
Operators who intend to expand the operating region outer the area stipulated in aforementioned paragraph should report to the NCC and attain the permission.
The regulation aforementioned also applies to the period before operators get the tender and still acquiring the NCC franchise approval.
Article 12
The applicant are limited as the corporation established under the corporations law, or the establishment institute of limited liability corporations, the chairman of the board should have the nationality of Republic of China, R.O.C., the amount of foreign stockholders should fit the limitation in paragraph 3 of Act 12 of the Act.
The applicant of the service operation should gather 30 billion NT dollars as the actual lowest capital amount; the applicant shall gather the sum at the period settled in Article 26.
While the applicants operate other Type I telecommunication services at the same time, if that service has the limitation of actual lowest capital amount, it should be calculated the actual lowest capital cost separately after attained the approval of establishment.
Article 12-1
When operators have more than the minimum paid-in capital and the shareholders are more than two hundred provisioned in the preceding article, the operators shall apply for a public securities offering process to the securities management authority in three months at the next day of registration of establishment or change of issuing new shares.
Operators reducing capital or conducting the provisions of Paragraph 1, Article 185 of Company Law, according to the shareholder resolution, shall submit the issue to the NCC for reference in 20 days after the day next to the resolution.
Article 13
One applicant cannot apply two or above application cases. If the number of the same shareholders or subscribers reaches to the 50% or above of the totality of the applicant's capital stock, the different applicants will be regarded as same applicant.
If one shareholder or subscriber of the applicant also has stocks of other applicants, the stockholder or subscriber only can hold 1 applicant's stocks unlimited and other applicants' stocks limited in 10% or below.
If applicants violate the stipulation in paragraph 2, in the case NCC shall notify the applicant and prescribe a time limit for correction; if the applicant fails to correct before the time limit or the correction remains incomplete, the application shall be dismissed, and NCC shall return the tender bidding money without the charge of examination and interests required.
Article 14
If the business service application cases have one of the problems down below, it cannot be corrected and the application shall be dismissed:
1. The applicant fails to apply before the time limit.
2. The applicant fails to provide application forms or business proposals.
3. The applicant fails to provide the quotation of prices, seals on the quotation of prices or the seal place didn't affix the applicant's seal stipulated by the regulations.
4. The applicant fails to pay the tender or the amount is not enough to the tender.
5. The actual capital amount recorded in the application or business proposals is less than the lowest actual capital amount promulgated in the Paragraph 2 of Article 12 of the regulations.
6. The applicant whose applications or business proposals request 2 or above frequency bands, or different frequency bands requested in the applications and the business proposals.
7. The system recorded in the business proposals is not adopting communication system of digital Low-Power Wireless Telephone such as DECT(Digital Enhanced Cordless Telecommunication), PACS(Personal Access Communication System),PHS(Personal Handy-phone System)or instituted by ITU(International Telecommunications Unit)
8. Applicants who violated Paragraph 1 of Article 12.
9. Applicants who violated Paragraph 1 of Article 13.
If application dismissed pursuant the aforementioned Paragraph 1 to Paragraph 6, the NCC shall return the tender bidding money and the charge of examination without interests required.
If application dismissed pursuant the aforementioned Paragraph 7 to Paragraph 9, the NCC shall return the tender bidding money without the charge of examination and interests thereof required.