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Chapter Law Content

Chapter 3 Operation Administration
Section 1 General
Article 32
The operator is to carry out the implementation as per the content of its business plan. However, the operator is not allowed to carry out any implementation when the content of said business plan is in breach of legal or regulatory stipulations or exceeds the scope of its concession operation.
When changes are made to the content of the business plan, the operator is to state the reason and submit a comparison table on the content of changes and other documents specified by competent government authorities to file for an approval by competent government authorities, provided that none of the changes made would affect the performance bond or all liabilities as stated in the initial business plan.
The foresaid change categories subject to declaration for approval are to include the followings:
1.The operating categories.
2.The operating regions.
3.The scheduled business commencement date.
4.The circuit leasing transmission network scale or the network development capacity planning as specified under Article 22 to Article 22-3 of the administrative regulations.
5.The development of various systems (including the network management and maintenance support system) and the main exchange equipment’s installation site, make installation quantity and timetable.
6.The development of the wireless radio system’s exchange station and the station’s operating frequency, equipment make and installation quantity.
7.The anticipated launching schedule of the various services and the development of the service functionalities.
8.Measures for safeguarding the user’s equity.
9.Other items so specified by competent government authorities.
Of any change to the shareholdings held by foreign shareholders as stated in the content of the business plan, the operator is required to voluntarily declare the information with competent government authorities.
The stipulations set forth in the preceding paragraph 1 to paragraph 4 will also apply when the applicant has surpassed the competent government authorities’ view but prior to obtaining the concession license.
Article 32-1
Operators shall not install, in part or in whole, fixed telecommunications network equipment without approval from the competent authority.
If the telecommunications network facilities are added or altered after the carrier acquires concession, the carrier shall submit the detailed network development plan to the competent authority for approval. After the addition or the alteration is completed, the carrier shall apply to the authority for a technical examination of the telecommunications network. After passing the examination, the authority shall issue a certificate to prove the passing of the telecommunications network technical examination and allow the telecommunications network facilities to operate. The operator shall complete the implementation as per the content of its network development plan, and in the wake of any change category as enlisted under Paragraph 3, Article 32, the operator is required to state the reason and submit other documents specified by competent government authorities to file for approval from competent government authorities.
When the addition or change of the foresaid telecommunications network should involve addition or change to the business service categories, the operator shall state in the network development plan the service categories and the anticipated service starting date.
Article 33
The telecommunications facilities installed by an operator shall meet the telecommunications equipment technical requirements.
The telecommunications facility technical requirements as referred to in the preceding Paragraph shall be promulgated by the competent authority.
The telecommunications terminal equipment provided by a local network business operator to users to connect to the multimedia content transporting platform shall comply with the “Technical Specifications for Set-Top Boxes for Multimedia Content Distribution Platform on a Fixed Telecommunications Network” promulgated in accordance with Paragraph 1 of Article 42 of the Regulations.
Article 34
The telecommunications facilities installed by an operator shall comply with the following regulations:
1. Operators shall sufficiently protect the privacy of users.
2. Operators shall maintain appropriate quality of communications.
3. Operators shall not damage the facilities of users or other public communications network.
4. Operators shall have a precise point of division of liabilities between its telecommunications facilities and the facilities of other public telecommunications network.
5. Operators shall have a precise point of division of liabilities between its telecommunications facilities and the facilities of users.
6. The switching equipment for voice of E.164 number Internet telephony and local telephony shall provide country code CLIP (Calling Line Identification Presentation) function in inbound international call and blocking inbound international call service by trusted user.
7. The switching equipment for the international network for voice shall provide a function of blocking the receiving of specific international calls.
The point of division of liabilities as referred to in item 4 of the preceding Paragraph shall be reported by the operator to the competent authority for records.
The point of division of liabilities as referred to in item 5 of the preceding Paragraph shall be determined pursuant to the relevant provisions under Article 15 of the Rules for Installation of the Telecommunications Facilities Inside/Outside the Buildings of Subscribers.
An operator shall provide the service of item 6 and item 7 of the Paragraph 1 from 1st Jan 2012.
Article 35
In the case of any violation of the preceding two Articles, the competent authority shall require the operator to undertake corrective measures within a prescribed period of time.
Article 36
During the construction of network infrastructure facilities for its fixed telecommunication network, where other laws or regulations require that relevant permits, licenses, approvals or consent of other competent or administrative authorities be obtained, an operator or an applicant who has received the approval for establishment shall comply with the provisions of such other laws or regulations.
Where there is a need for an operator to collocate its lines on the duct or other relevant facilities owned by public utility enterprises so as to construct its fixed telecommunications network, the operator shall so proceed in accordance with the relevant laws and regulations.
Except as otherwise provided in the relevant laws or regulations, the expenses and other terms or conditions for collocation as referred to in the preceding Paragraph shall be subject to the negotiations between the operator and the public utility enterprises in a fair and reasonable manner. If the negotiations cannot be successfully concluded, the competent authority may, upon application, coordinate the matter by consultation with the competent authority having jurisdiction over the business of such public utility enterprises.
Article 37
During the construction of network infrastructure facilities for its fixed telecommunication network, where the bottleneck facilities in the telecommunications network cannot be self-constructed or substituted for by other available technologies within a reasonable period of time, an operator or an applicant who has received the approval for establishment may request for sharing of network infrastructure facilities with operators of fixed network telecommunications business who have the possession of bottleneck facilities.
The request for sharing of network infrastructure facilities pursuant to the preceding Paragraph shall not be rejected by such other operator without due reason.
Operators shall mutually negotiate, in an equal and reciprocal manner, the terms and conditions with regards to the charges for sharing of network infrastructure facilities, management and maintenance of the shared portions, the handling procedures for damages to or interruption of telecommunications in the shared portions, quality and safety of telecommunications, point of division of liabilities and other relevant matters. The sharing agreement shall be reported to the competent authority for records within one month after the execution thereof. In the event where an agreement is not concluded within three months after the negotiations are commenced, or the negotiations are not commenced within one month after the request is made, either party may request for mediation by the competent authority.
The bottleneck facilities as referred to in Paragraph 1 shall be approved and promulgated by the competent authority.
Article 38
In order to facilitate the effective use of telecommunication network resources, operators or applicants who have received approval for establishment shall form and establish, upon the competent authority's direction, a task force for coordinating the construction of network infrastructure facilities, so as to coordinate the negotiations for planning, construction and sharing of network infrastructure facilities.
Article 39
The frequency applied by an operator or an applicant who has received approval for establishment that is required for construction of microwave links and fixed wireless loop equipment may be approved and distributed by the competent authority according to the relevant regulations, depending upon the relevant technological development and the situation where frequency resources are used.
In the case where the concession of an operator is revoked or abolished, the approval for use of radio frequency shall forthwith be revoked or abolished by the competent authority.
Article 40
A local network business operator that installs Telecommunications equipment and its space for subscriber buildings shall do so in accordance with Regulations Governing the Installation and Use of Telecommunications Equipment and its space for Buildings.
Article 41
An operator shall appoint a person who possesses the qualification certificate of advanced telecommunications engineer to be responsible for and supervise the construction, maintenance and operation of its telecommunications network, and to sign and ratify the construction logs and maintenance logs.
The construction logs and maintenance logs as referred to in the preceding Paragraph shall at least be preserved for at least one year. An operator shall provide them for examination by the officials dispatched by the competent authority.
Article 42
The tariffs for the fixed network telecommunications businesses shall be determined by operators in accordance with Administrative Regulations Governing Tariffs of Type I Telecommunications Enterprises and Article 26 of the Telecommunications Act.
Article 42-1
An operator providing subscribers with a dial-up service to download videos, pictures, audio, data or messages via operator-self-assigned simplified numbers, or via allocated telecommunication numbers by the competent authority, shall inform the subscriber of the tariff right after the call has been established, and prompt the subscriber that he should immediately quit using the service if he does not agree to the tariff. After which, the operator is permitted to begin charging.
An operator cooperating with another organization to provide the service as referred to in the preceding Paragraph shall report to the competent authority with records regarding 1) the cooperator, 2) cooperating method, and 3) the simplified or telecommunication number used, within 7 days before the service is online.
Since the service as referred to in Paragraph 1 is online, the operator shall perform a daily test on its service content and keep the test record for one month in preparations for random inspections by the competent authority. If necessary, the competent authority may demand an operator to cooperate accordingly to test the telecommunication terminal equipment.
If the service content does not coincide with that had been reported to the competent authority for records, the Operator shall cease the supplying of the service in compliance with the written notification of the competent authority.
Article 43
By and between any two operators, when one requests for network interconnection with another, except as otherwise provided by the laws and regulations, the other cannot refuse.
The matters relating to arrangement for network interconnection, calculation of fees, and negotiations and conciliation procedures, and so on, as referred to in the preceding Paragraph shall be made in accordance with the Regulations Governing Network Interconnection among Telecommunications Enterprises promulgated by the competent authority.
Article 44
In order to safeguard the basic telecommunications rights and interests of nationals, the competent authority may designate an operator to provide universal telecommunications services. The designated operator cannot reject.
An operator shall be required to share the losses resulting from universal telecommunications services and the necessary management fees relating thereto according to the relevant regulations.
The matters relating to specific service items of universal telecommunications services, determination of the universal services areas, designation of the operators for provision of universal services, calculation of the net cost for providing universal services and the method for allocation, the ratio for universal services contribution, the procedures for applying subsidy, and so on, shall be made in accordance with the Regulations Governing the Universal Telecommunications Services promulgated by the competent authority.
Article 45
A dominant carrier in the fixed network telecommunications market shall not engage in any of the following acts:
1. improperly determine, maintain or change the prices or the manner for provision of telecommunications services;
2. without proper reason, refuse requests made by other telecommunications enterprises or subscribers for lease of circuits;
3. without proper reason, provide other telecommunications enterprises or subscribers with discriminatory treatment;
4. without proper reason, refuse requests made by other telecommunications enterprises or subscribers for negotiations or testing;
5. conduct other acts by abusing its market standing.
Article 46
An operator shall, depending upon the business engaged by it, establish an accounting system which can separately calculate its assets, liabilities, income, cost and profit and loss.
The accounting system established pursuant to the preceding Paragraph shall enable an operator to provide the costs of engaging in local network business, local distance network business, international network business and leased-circuit business as well as the costs of providing unbundled network element.
Article 47
The accounting system and accounting handling of an operator shall be made in accordance with the Guidelines for Type I Telecommunications Enterprises Accounting System and Accounting Handling promulgated by the competent authority.
Article 48
An operator shall, within six months after the end of each fiscal year, report the relevant information relating to its business, financial and telecommunications equipment to the competent authority for records. The relevant information reported by an operator shall not have any false entries.
The categories, contents, formats and methods for submission of the relevant information as referred to in the preceding paragraph shall be determined by the competent authority.
Where necessary, the competent authority may demand an operator to provide the relevant information relating to its business, financial and telecommunications equipment or dispatch officials to examine the conditions of its business, financial and telecommunications equipment, to which an operator shall not hinder or reject.
Article 49
An operator shall provide the existence and contents of communications for the purpose of investigation or collection of evidence upon requests in accordance with the legal procedures.
The supervision of communication content as referred to in the preceding Paragraph shall be undertaken in accordance with the Communication Protection and Interception Act.
Article 49-1
Operators shall maintain the records of local network telecommunications for at least three months, and the records of long distance network telecommunications as well as international network telecommunications for at least six months.
Operators shall provide the records as maintained in the preceding paragraph accordingly upon application of personal inquiry by subscribers.
Article 49-2
The operator is to verify and catalog the user’s information, and may only activate the access upon uploading the information onto the operator’s system pending further verification, who is required to retain the information at least one year after the service contract has been terminated; when inquired by relevant government agencies legally, the operator is to supply the information. The operator, when verifying and cataloging the subscriber information of government agencies, public schools and state-run enterprises, may utilize an agency (institution)’s official document letterhead as the proof of documentation.
The foresaid subscriber’s information is to encompass information of the subscriber’s name, other form of proof of identity document number other than the uniformed identification card, address, assigned number, and so forth.
The foresaid identification document number, in the case of an application filed by a foreign national refers to the passport number or other form of proof of identify document number; of an application filed by an incorporated entity, it refers to the uniformed company registration number and the representative’s uniformed identification card number.
The entry of the subscriber information as stated in paragraph 1 is to be completed within a two-day period following the operator accepts the application.
Article 50
An operator shall prescribe the terms and conditions for its services in the code of practice and report to the competent authority for approval before the announcement of the implementation thereof. The code of practice shall be furnished respectively at its business locations and websites for consumers' review. In the case of any changes relating thereto, the same rule shall apply.
The code of practice as referred to in the preceding Paragraph shall stipulate fair and reasonable service terms and conditions, which shall include the following:
1. Service items provided by the operator
2. Fee schedule of each service item and conditions for adjustment of fees
3. Limitation and terms for the use of the subscribers' data.
4. Compensation scheme for damages caused to the subscribers as a result of revocation or abolishment of the operator's concession, or suspension or termination of its business.
5. Handling procedure for damages caused to the subscribers as a result of errors, delay, interruption, or lack of signals due to the malfunction of telecommunications lines and equipment.
6. Measures in response to the subscribers' complaints and matters in relation to the subscribers' rights and interests.
7. Other service terms and conditions.
The competent authority may direct the telecommunications enterprise to change the code of practice within a prescribed time frame, if it infringes upon consumers' rights and benefits, and appears apparently unfair.
The standard service contract to be entered into by and between an operator and its subscribers shall include the particulars set forth in Paragraph 2 and be reported to the competent authority for approval before the implementation thereof and shall not be contrary to telecommunications laws and regulations or code of practice. The same rule shall apply to any change relating thereto.
Operators shall carry out a copy of service contract to make respectively with the subscribers in accordance with verification.
Any change or modification to the standard service contract between an operator and its subscribers shall be announced via the media before the implementation thereof.
Article 50-1
Should the telecommunications line equipment malfunction due to disaster or any other major incident, and results in one of the following situation, the operator shall provide a report in accordance with Paragraph 2 and shall disclose the status of obstacles and methods to manage damage to users in accordance with Paragraph 4.
1. More than 10,000 city network business users interrupted service for more than thirty minutes.
2. More than a thousand long circuit interrupted service for more than thirty minutes.
3. The domestic and international sea cable system interrupted service for more than thirty minutes.
The operator shall comply with the following procedures when reporting obstacles as described in the preceding paragraph:
1. Notify users, via a message, the status of an obstacle within 15 minutes after the said disaster / incident.
2. Enter the status of obstacle and progress of maintenance in the competent authority’s Telecommunications and Broadcasting Major Incident and Damage Reporting System within two hours after the said disaster / incident; and, prior to solving the issue, provide status reports and repair progress every three hours. However, any significant change to the status shall be reported at any time.
Where the operator is unable to conduct the reporting work as described in the preceding paragraph, the operator may submit a report by fax, telephone, email or other methods.
Within an hour after the circumstance specified in Paragraph 1 occurs, the operator shall disclose the status to users through broadcasting, television, internet and other electronic media. The said status shall include the cause of obstacle, affected areas, and estimated time of completing the repair work and restoration of services. Within an hour after completing the repair work and restoration of services with regard to the malfunction as described in Paragraph 1, the operator shall disclose the damage handling methods to users in accordance with Subparagraph V of Paragraph 2 of Article 50.
The competent authority may reward or subsidize operators that have proactively implemented disaster prevention and mitigation works and those that have been evaluated as an extraordinary operator by the government
Article 50-2
Within three months upon receipt of the competent authority’s notification, the operator shall make an inventory of its telecommunication infrastructure in accordance with Annexed table 1. Operators that are deemed as having critical telecommunications infrastructures according to the inventory results shall conduct a self-assessment of critical infrastructure, and submit Annexed table 2 to 4 to the competent authority for approving the items and level.
Operators that fail to specify infrastructure items in the above-mentioned appendixes shall undertake corrective action within a prescribed period of the competent authority.
Within three months upon receipt of the competent authority’s approval for its critical infrastructure items and level, the operator shall complete the critical infrastructure protection plan according to the following provisions.
1. Operators of level 1 critical infrastructure shall submit a report to the competent authority for approval.
2. Operators of level 2 critical infrastructures shall submit a report to the competent authority for reference.
3. Operators of level 3 critical infrastructure shall adopt their own control measures.
The above-mentioned operators who fail to specify prerequisite details of the level 1 or level 2 critical infrastructure protection plan shall undertake corrective action within a prescribed deadline as notified by the competent authority.
The operator shall conduct regular drills according to its critical infrastructure protection plan and prepare a written record. The record shall be preserved for 5 years.
The competent authority may request an operator to conduct drills according to its critical infrastructure protection plan; the competent authority shall then conduct an evaluation of the performances of the operator in the drill. Where an improvement is required according to the evaluation results, the operator shall undertake corrective action within a prescribed deadline as notified by the competent authority.
Article 51
An operator shall be fair in providing its services, and shall not reject an application for provision of services within the operation area in which it has been approved to operate the fixed network telecommunications business.
Article 52
In the case where there is a change or amendment to the service contract form between an operator and its subscribers, the operator shall announce the contents relating thereto through media before the implementation thereof.
Article 53
In the case where a subscriber refuses or delays to pay the tariff, an operator shall prescribe a time limit to demand payment of the tariff in arrears, and shall inform the subscriber that the services will be disconnected in accordance with the service contract if the tariff in arrears is not paid before the prescribed time limit.
Before expiration of the demand period as referred in the preceding Paragraph, an operator shall not disconnect the telecommunications services without proper reason.
Article 54
For a fixed telecommunications network operated by an operator, its quality of customer services and quality of network performance shall comply with the quality of service requirements set out by the competent authority.
Depending on actual needs, the competent authority may proceed with evaluation by itself or by engagement of a private institution, and may periodically announce the evaluation report with respect to the quality of service of the respective operators.
Article 55
In the case where an operator suspends or terminates the whole or a part of its business, it shall report to the competent authority six months before the scheduled suspension or termination date for approval and shall notify its subscribers three months before the scheduled suspension or termination date. Where an operator is approved by the competent authority to terminate all of its business, the competent authority shall forthwith abolish its concession.
Section 2 Local Network Business
Article 56
Applicants or operators shall use telecommunications numbers in accordance with provisions of the Regulations Governing the Numbering of Telecommunications.
Article 57
An operator shall provide equal access service in accordance with related provisions of the Regulations Governing Equal Access Service.
The network interconnection among the operators and Type II telecommunications carriers that provide long-distance or international telecommunications services shall be processed in accordance with the following requirements:
1.Management of tariff shall apply mutatis mutandis to Article 22 of the Administrative Rules for Network Interconnection between Type I Telecommunications Carriers;
2.The remainder shall be negotiated by both parties.
Article 58
An operator shall provide directory services to its users upon commencement of its operation, and shall begin providing directory services to users of other operators pursuant to the time table promulgated by the competent authority.
The directory services referred to in the preceding Paragraph shall at least include the services of 104, 105 and 106.
Operators shall mutually provide to each other the information pertaining to their subscribers as necessary for provision of the directory services, except for information requested by subscribers to be kept in confidence.
The provision of and inquiry to subscribers' information as referred to in the preceding Paragraph shall be made on a reciprocal basis.
The charges for provision of directory services shall be determined on the basis of costs of the respective directory services.
Article 59
An operator shall provide users with emergency telephone services of 110 and 119 free of charge.
An operator shall take priority in handling telecommunications for emergency telephone.
Article 60
Operators shall provide users with public pay-telephone services.
Article 60-1
An operator providing multimedia content transporting platform service, shall specify in the code of practice the particulars set forth in Paragraph 2, Article 50 and the following:
1. Channel program content service providers limited to those who obtained approval or license pursuant to Radio and Television Act, Cable Radio and Television Act, and Satellite Broadcasting Act.
2. Provide fair and unbiased slotting allowance for rental platform.
3. Ensure no interference with the channel program content service provider’s content service planning and combining, sales, and tariffs.
4. Ensure sales methods will retain the freedom of the subscriber to select and purchase a standard uniform content service, or a different combination of content services.
5. Provide an electronic menu planned on fair basis with a space allocated for channel program content service provider’s planning.
6. An electronic menu listing necessary-for-select information - all content service names, provider, description of content, and tariffs, etc for subscribers to select and purchase by themselves - and providing an operation guide on the homepage.
7. Set-top-box with open spec, that can be rented from the operator, content service provider, or self-prepared by the subscriber.
8. Channel-adopting and program-content-storage facilities are provided for channel program content service provider.
9. While technically feasible, subscribers of other internet access service operators or local network business operators are able to gain access to the content services provided by the content service provider.
Section 3 Long Distance Network Business
Article 61
Provisions of Articles 56 may apply, mutatis mutandis, to long distance network business.
Section 4 International Network Business
Article 62
An operator shall, depending upon the services provided by it, construct or procure the infrastructure facilities for completion of the international telecommunications, including international submarine cable landing station, back-haul facilities, international gateway exchange facilities, satellite transponders, satellite earth stations and exchange equipment, and other auxiliary facilities.
Article 63
Where it is necessary for an operator at the initial phase of operation to request for a lease from another operator the satellite or submarine cable facilities required for intentional telecommunications, such other operator shall not reject such request without proper reason.
The terms and conditions of leasing the facilities required for international telecommunications as referred to in the preceding Paragraph shall be negotiated by and between operators on a fair and reasonable basis.
In the case where the request by an operator for a lease of the facilities required for international telecommunications is made due to technical constraint, the rental shall be calculated on the basis of the lesser cost.
Upon execution of the agreement as referred to in Paragraph 2, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
Article 64
At the initial phase of operation, an operator may request another operator, that has procured the Indefeasible Rights of Use of international submarine cable capacity ("IRUs"), to act as an intermediary to assist in negotiations with international submarine cable organization for obtaining the IRUs to use the international submarine cable capacity, or to transfer a part of its IRUs, of which the royalty or licensing fees for the IRUs, the price for the partial transfer or other terms and conditions shall be subject to negotiations between the operators concerned.
such other operator who has procured the indefeasible rights of use of international submarine cable capacity shall not reject a request made pursuant to the preceding Paragraph without proper reason.
Where an operator is operating its international network business by means of international leased circuits, the competent authority may, depending upon the actual needs, require, either ex officio or upon application, the operator to negotiate with the international submarine cable organization for conversion of its leased circuits into IRUs, and to provide a part thereof for use by other Operators pursuant to the preceding Paragraph.
Upon execution of the agreement as referred to in Paragraph 1, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
The indefeasible rights of use of international submarine cable capacity as referred to in Paragraph 1 means the right of an operator that, based on its membership at an international submarine cable organization or pursuant to the applicable agreement for operation and management of an international submarine cable, is entitled to use a specified proportion of the telecommunications capacity of the international submarine cable.
Article 65
An operator may request another operator, who that procured the right to use international satellite circuits, to act as an intermediary to assist in negotiations with international satellite telecommunication organization or its licensee for obtaining the right to use the international satellite circuits in accordance with the applicable regulations of the international satellite telecommunication organization, or to transfer a part of such other operator's right to use, of which the royalty or licensing fees for the right to use, the price for the partial transfer or other terms and conditions shall be subject to negotiations between the operators concerned, or between the operators and the international satellite telecommunication organization or its licensees.
Such other operator who has procured the right to use the international satellite circuits shall not reject a request made pursuant to the preceding Paragraph without proper reason.
Upon execution of the agreement as referred to in Paragraph 1, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
Article 66
Where a foreign country is not a member of the World Trade Organization, or where there is only one international telecommunications operator within that foreign country, any agreement between an operator and a telecommunications operator of that foreign country in relation to the handling of international telecommunication traffic and settlement rate shall be made in compliance with the principles of International Proportional Returns and Parallel Accounting Rate.
The International Proportionate Returns as referred to in the preceding Paragraph means an operator shall request to be included in an agreement under which the incoming volume of any international telecommunications traffic originated from the network operated by a specific foreign telecommunications operator shall be divided and delivered to the respective operators of our country in such a percentage as proportional to the volume of outgoing international traffic originated from the respective operators of our country and terminated at the network operated by such foreign telecommunications operator, out of the total volume of outgoing international traffic originated from our country and terminated at the network operated by such foreign telecommunications operator.
The principle of Parallel Accounting Rate as referred to in Paragraph 1 means the principle under which the accounting rates to be mutually agreed upon through negotiations between an operator and a specific foreign telecommunications operator in regard to the international telecommunications traffic shall be equally applicable to all other domestic operators without any discriminatory treatment. This principle shall apply to other telecommunications operators in that foreign country as well.
The agreement referred to in Paragraph 1 shall be made through negotiations between the representative(s) jointly appointed by operators and the telecommunication operators of a foreign country, or shall be made in accordance with the current settlement rate.
Before negotiations is proceeded pursuant to the preceding Paragraph, all operators shall negotiate and mutually agree upon the rights and obligations between themselves together with other terms and conditions in advance, and such an agreement and any amendments thereto shall be reported to the competent authority for review and approval.
Article 67
Where a foreign country is a member of the World Trade Organization and there are two or more international telecommunication operators in that foreign country, the agreement in relation to the handling of international telecommunication traffic and settlement rate shall be subject to negotiations between an operator and a telecommunication operators in that foreign country.
Any agreement referred to in the preceding Paragraph shall not hinder or interfere with the negotiations between other operators and foreign telecommunications operators, and shall not cause foreign telecommunications operators to refrain from providing international telecommunications services to other operators, and shall not otherwise create other anti-competitive practice.
Article 68
An agreement relating to the handling of international telecommunications traffic and settlement rate between an operator and a foreign telecommunications operator shall be reported and submitted to the competent authority for records within one month after execution thereof.
In the event where there is a significant change on the international practice of the accounting rate for international telecommunications, or where there is a change in the competition within the telecommunications market of foreign countries, or where there are any other material events, the competent authority may make a announcement to amend the foreign countries to which the preceding two Articles applies, and operators shall then implement the necessary adjustment to the pertinent agreements in accordance with such announcement.
Article 69
Provisions of Articles 56 may apply, mutatis mutandis, to international network business.
Provisions of Articles 63, 64, 65, 66, 67, 68 may also apply to the applicants who have obtained an approval for establishment.
Article 70
The telecommunication networks run by operators for communications with Mainland China shall be conducted by either of the following means:
1. Communications shall be established via communication networks that are connected by a circuit relay via a third region or an international telecommunication network (including international submarine cables, international satellites, international communication exchange facilities, and international relay equipment).
2. Communications shall be established via communication networks that are connected by other means to be promulgated.
Applicants or operators that provide communications by means of the second item of Paragraph 1 shall accord with the regulations of the international network.
Applicants or operators that install telecommunications line facilities and equipment in order to provide communications by means of the second item of Paragraph 1 shall provide the necessary interconnection circuit and functions for the interception of communications. Those related to national defense and security shall carry out physical segregation and conduct regular security inspections.
In addition, applicants or operators that provide communications by means of the second item of Paragraph 1 shall ensure the interception of communications and the management of information security conform to the related regulations stipulated by related authorities.
Section 5 Leased-Circuit Business
Article 71
A dominant carrier in the fixed network telecommunications market shall not reject any request for lease of its circuits without proper reason.
The competent authority may require a dominant carrier in the fixed network telecommunications market to provide and make available for lease of certain circuits of such technical specifications and in such quantities promulgated by the competent authority.
Article 72
The quality and conditions of the circuits provided by an operator for lease shall not be less than the quality and conditions of the circuits provided by such operator for its own use or its affiliated enterprises.
Article 72-1
The provision of international submarine cable leased-circuit service shall accord with the regulations set forth in Article 70.
Section 6 Number Portability
Article 73
Operators shall provide number portability service in accordance with provisions of the Regulations Governing Number Portability Service.
Article 74
The provisions of this Section shall not apply to the operator of the leased-circuit business.
Chapter 3-1 Information and Communication Security Management
Article 74-1
The applicant or operator for the inner city, domestic long-distance landline circuit leasing service does not fall under the information communication security management-related regulations as defined in the chapter.
As for the foresaid regulations, the competent government authorities may, where deemed necessary, review and amend the regulations.
Article 74-2
Upon receipt of the concession license, the operator shall establish information security protection and detection facilities within one year, and pass the following information security management verification within two years:
1. The national standard CNS 27001 or the international standard ISO/IEC 27001.
2. The New Item Audit Form of the Telecommunications Enterprise Information Security Management Manual ISO/IEC 27011 announced by the competent authority.
Operators that have already obtained a concession permit prior to the amendment to Regulations on May 22, 2017 shall establish information security protection and detection facilities within a year after the amended promulgation date, and shall pass above-mentioned information security management verification within two years after the said date.
The implementation of verification and information security protection and detection facilities as described in the preceding two paragraphs shall be reported to the competent authority for approval.
Where the operator falls under any of the following circumstances, an amendment shall be made to the implementation of the verification described in Paragraph 1 and Paragraph 2 according to the notification of competent authority. An approval shall also be received from the competent authority and the operator shall pass the information security management verification within the prescribed deadline notified by the competent authority:
1. Where the information security incident that has occurred to the system reached level 3 of the level of concern as described in Regulations Governing National Information Security Reporting and Responding Operations.
2. Where relevant agency has notified a potential harm to the national or information security.
Where there is any potential harm to national or information security, the competent authority, upon receipt of relevant agency’s notification, may require the operator to shorten the period aforementioned in Paragraph 1 and Paragraph 2.
The operator shall not only conduct penetration test (PT), weakness scanning and maintenance work on a regular basis, but also establish defense and response measures to notify, handle and report information security incidents in accordance with the information security response operating procedures announced by the competent authority
Where an information security incident takes place, the operator shall, according to information security incident notified by the competent authority, conduct emergency response measures, retain relevant records, and report to the competent authority. The said records shall be preserved for at least six months.
Article 74-3
The operator’s telecommunications equipment room or internet data center shall be established with a physical isolation and be equipped with an independent entrance / exit.
The access control security management systems, including all-weather intrusion alerts and video surveillance, shall be installed at the entrance / exit as described in the preceding paragraph. The alerts and recorded videos shall be preserved for at least six months.
The telecommunications equipment room or internet data center as described in Paragraph 1 shall be prohibited to access, except for those with the installation, maintenance, monitoring or other operational purposes that are deemed necessary.
The operator shall set respective security management and operation rules for different telecommunications equipment rooms and / or internet data centers; the rules shall be reported to the competent authority for reference.
The security management and operation rules in the preceding paragraph shall include at least the following items:
1. Division of rights and responsibilities: including the authorities related to the security maintenance zone, responsible units, staff organization and duties, and access to the telecommunications equipment room (internet data center).
2. Access control management: including the management of identification (name and ID card or passport number), organization (institution), entry (exit) time, and entry (exit) purposes of staffs, subcontractors, visitors or internet data center guests who enter the telecommunications equipment room (internet data center); auditor’s audit records; and objects entering (exiting) the room (center).
3. Maintenance management: management of the maintenance works conducted by internal staffs or subcontractors.
4. Environment management: management of fire fighting, security, electricity and relevant facilities.
5. Management records: including the access management, maintenance and environment maintenance records.
6. Audit operations: shall include regular and irregular audit works.
The management records of Subparagraph V of the preceding paragraph shall be preserved for at least six months.
The competent authority, depending on operators’ status of implementation, may require the operator to make amendments to their security management and operation rules for telecommunications equipment room (internet data center) of Subparagraph IV.
Operators shall implement security management and operation rules for telecommunications equipment room (internet data center) of Subparagraph IV; the competent authority may send personnel to conduct audit works on a regular basis or depending on the actual needs.
Article 74-4
Where the operator has established an internet data center for other telecommunications enterprises to place their telecommunications equipment in order to provide telecommunications services, the space leased to other telecommunications enterprises shall be physically isolated and equipped with an independent entrance / exit.
Where the said space does not comply with provisions of the preceding paragraph, the operator shall undertake corrective action within a year after the amendment of the Regulations on May 22, 2017. Those who fail to make corrections within the prescribed deadline shall, prior to the expiry of deadline, apply to the competent authority for an extension with reasons specified; the extension shall not be longer than six months and shall be limited to one time only.
Article 74-5
Where there is any individual who can potentially harm the national security, the national or information security relevant agency shall notify the competent authority; upon receipt of the notification of the competent authority, the operator shall prohibit the said person from entering the telecommunications equipment room or internet data center.
Article 74-6
Where the outsourced design is related to the information system software of network system resources, users’ personal data and telecommunications content, or the maintenance system, the operator shall report it to the competent authority for reference. The maintenance operations shall be monitored by staff of the telecommunications equipment room; all system connection instructions shall be recorded by the staff; relevant records shall be retained for at least six months.
Operators shall not entrust any individual who can potentially cause national security to design the information system software of network system resources, users’ personal data and telecommunications content, or to maintain and test the connection of remote systems.