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Chapter Law Content

Chapter 2 Operating Franchise
Section 3 Establishment
Article 22
Tender winner shall pay the performance bond in the 60 days limit after receiving the tender notice from NCC, and then the NCC shall issue the establishment permit. If not pay the performance bond pursuant to correlated rules, thereof tender will lose the validity.
Article 23
The amount of the business executing guarantee money is 150,000,000 NT dollars.
The aforementioned executing guarantee money shall pay in one of the methods down below:
1. Direct deposit into the account assigned by NCC.
2. Executive Guarantees from Domestic Banks.
3. The negotiable time fixed deposit certificate that set the Pawnee as the NCC.
Using the executive guarantees from domestic banks should promulgated the guarantee period beginning from the day paying the performance bond to the 3 months later calculated from valid ending date of the establishment permit.
If the tender winner applies to extend the valid date of establishment permit, the aforementioned executing guarantee period should be conducted to extend at the same time.
Article 24
The performance bond paid by the tender shall return with 2 steps pursuant to the regulations down below:
1. In the valid time of system construction permit, achieve 25% system base stations' construction of the goal settled in the 3 year construction plans of business proposals, and finished the telecommunication equipment access online operation, then qualified and approved by NCC and attain the franchise approval pursuant to the regulations. To this time the operator can apply to NCC returning 1/2 of executing guarantee money, or apply to notify the guarantee bank dismissed the guarantee responsibility that was equal to 1/2 of executing guarantee money.
2. In the valid time of system construction permit, achieve 100% system exchange equipment and base stations' construction in the 3 year construction plans of business proposals, then qualified and approved by NCC and attain the franchise approval pursuant to the regulations. To this time the operator can apply to NCC returning the resting amount of the performance bond, or apply to notify the guarantee bank dismissed the resting guarantee responsibility.
Article 25
The validity period of establishment permit for four years; Tender winner who can't in validity period inside complete the establishment and obtain the charter according to the method the license, should in period before expiring attach to have the reason toward Ministry of Transportation & Communications to apply the defer, defer most long cannot almost a year, and then once is limited. The overdue Ministry of Transportation & Communications abolish it's establishment permit, not the send back its implement the security deposit or NCC notify and guarantee the bank implement the assurance duty.
Article 26
When the tender obtain the establishment permit, the corporation establishment or license alteration shall be completed in six months. If the operator cannot finish the registration in the time limit stipulated in the regulation, the operator can apply to NCC for extension before the time limited and express the reason to NCC. The extension cannot go past 6 months for the extremity, and limited in 1 time. If the operator failed to achieve the time limit, the NCC shall abolish the establishment permit without returning the performance bond or notify the guarantee banks execute the guarantee duty by NCC.
Article 27
After obtaining the establishment permit and complete the corporation establishment or license alteration, the tender shall submit the documents stipulated by the regulations to apply the system construction permission and allocated frequency to NCC.
The validity of system construction permission is 3 years; while the tender obtain the permission, it should construct the 1900MHz Digital Low-Power Wireless Telephone network according to the 3year construction plan in the business proposals. If the operator cannot finish the construction in the validity, the operator shall apply to NCC the extension with the expression of reasons, the extension cannot go past 1 year for the extremity, and limited in 1 time. If the operator failed to achieve the time limit, the NCC shall abolish the establishment permit and system construction admission without returning the performance bond or notify the guarantee banks execute the guarantee duty by NCC. The operator who obtained the franchise approval would be abolish the approval by NCC.
Operators apply to extension because of force majeure can extend pursuant to the procrastinated time by the fore majeure, and not limited by the aforesaid extension time.
If the validity of the aforementioned 2 system construction permissions surpasses the validity of establishment permit, the extension application should be conducted at the same time.
The validity of the aforementioned 2 system construction permissions cannot surpass the validity of the establishment permit; thereof involved with changes of original business proposals should be conducted pursuant to the regulations in Article 49.
If not request and obtain the construction permission or approval, the operator cannot construct part or the whole 1900MHz Digital Low-Power Wireless Telephone network.
Article 27-1
The affairs of installation permits and radio station licenses of base stations installed by the tenders or operators shall comply with the Regulations for Administration of Base Stations of Mobile Communications Network Businesses.
Article 27-2
(deleted)
Article 28
Tender once obtain the system construction permission, it should construct the system by the permission; the circuit connected its system and the other system should negotiate a lease with the fixed communication network or satellite fixed communication network business operators. But if the connection circuit are in the same building and approved by NCC, shall not limited by the regulation.
The inner equipment connection circuits of the tenders' 1900MHz Digital Low-Power Wireless Telephone networks should construct of his own after obtain the approval from NCC.
If the aforementioned circuits are its own optical fibred or copper cables, the construction should pursuant to the regulation down below:
1. Using the ground to construct the networks should get the permission from the municipality or county government.
2. The network circuits that need to be attached on the tubes or correlated equipments of common carrier, it should be handled pursuant to the correlated regulations.
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 I 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 29
The tenders who achieve 25% base stations' construction of the goal settled in the 3 year construction plans of business proposals, and finished the telecommunication equipment access online operation, then qualified and approved by NCC, it should submit documents down below to obtain the franchise approval pursuant to the regulations:
1. Applications for franchise approval.
2. Copies of establishment permit.
3. Copies of company license.
4. Tariff Approval authorized by the supervisor organization.
5. Corporation service regulations approval authorized by the NCC.
Article 30
The Franchise Approval shall state the items as below:
1. Operator's name, representatives and the location of company.
2. The service types.
3. The totality of capital.
4. The actual capital amount.
5. Service operating area.
6. Assigned frequency band.
7. Valid date.
8. License date.
Article 31
The validity period of franchise approval is 15 years.
Operators whose the aforesaid period of franchise approval expired and willing to operate should apply to the permission in 3 months from the 6 months before expiration and get approved to update the franchise approvals; the exam items and approval regulations will be promulgated by NCC and reported to the NCC for approval and promulgation.
Article 32
Tenders should start the service operation in 6 months from the day obtaining the franchise approval, if the operator failed to achieve the time limit, the NCC shall abolish the franchise without returning the performance bond or notify the guarantee bank to execute the guarantee duty by NCC; if the establishment and system construction permissions are not expired, abolish the establishment and system construction permissions.
If the tender or operator violated the correlated law or regulations, and NCC rescind or abolish the establishment permit or franchise approvals, the NCC shall not return the performance bond or notify the guarantee bank to execute the guarantee duty by NCC.
Article 33
If the establishment permit, system construction permission, radio station license, or the franchise approval are lost or destroyed, it should apply the reissue to NCC with the expression of reasons; if the items stated on permissions or franchise have changed, it should apply the change and approval to NCC.
The establishment permit, system construction permission, radio station license, the franchise approval, or the assigned frequency band cannot be leased, lent, or transfer the ownership.