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Chapter Law Content

Title: Telecommunications Management Act CH
Category: National Communications Commission(國家通訊傳播委員會)
Chapter II Operations of Telecommunications Business
Section 5 Investment, Assignment and Merger
Article 25
Telecommunications enterprises who have established a PSTN using telecommunications resources or those who are deemed as a telecommunications enterprise according to Paragraph 2 of Article 28 shall, according to the format and methods announced by the competent authority, report the number of outstanding voting shares and any change to the total capital amount with a specific percentage.
The specific percentage as described in the preceding paragraph shall be announced by the competent authority.
Article 26
Where the telecommunications enterprise encounters any of the following circumstances, the entire or primary assigned or transferred business or assets thereof shall be reported to the competent authority for approval. Where the telecommunications enterprise is merged with other enterprises; or directly or indirectly invests in other enterprises’ voting shares or capital that is above specific percentage announced by the competent authority, it shall report the same to the competent authority for approval.
1. The radio frequency is allocated by the competent authority, except for those applicable to Subparagraphs 1, 3 and 4, Paragraph 1 of Article 56;
2. Possess more than one-fourth the share of a specific telecommunications service market.
Where the business to be assigned, transferred or merged among telecommunications enterprises is more than one-fourth the share of a specific telecommunications service market, applying for the approval of competent authority is required.
Where the same person or related person acquires more than 10% of the voting shares of telecommunications enterprises as prescribed in Subparagraph 1 or 2 of Paragraph 1, applying for the approval of the competent authority is required.
Paragraph 5, Article 11 of Fair Trade Act is applicable to the scope of related person(s) as prescribed in the preceding paragraph.
The delimitation of a specific telecommunications service market as described in Paragraphs 1 and 2 shall refer to Article 27.
The acceptance and/or rejection of applications made by the competent authority according to Paragraphs 1, 2 and 3 shall take the following factors into consideration, and auxiliary terms may be added thereto according to its purview:
1. Reasonable allocation of resources;
2. Facilitation to the industry’s development;
3. Maintenance of subscribers’ rights and interests;
4. Maintenance of market competition;
5. National security.