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Chapter Law Content

Chapter 2 Application and Review
Section 1 Technical experiments and research and development telecommunications network
Article 7
Those who apply to establish a technical experiments and research and development telecommunications network shall fall under one of the following qualifications:
1. Corporations or public or private research institutions that have committed to related research or manufacturing of telecommunications network and radio communications.
2. Other government agencies(organizations), educational institutes, companies, legal persons or groups that have the capabilities or experimental testing needs of establishing and managing experimental research and development telecommunications networks.
Those who apply for the establishment of a technical experiments and research and development telecommunications network shall not be of a China-funded investment business.
Article 8
Those who apply to establish a technical experiments and research and development telecommunications network shall be limited to a maximum of 100 subscribers. However, this does not apply to those who are approved by the competent authority herein.
Article 9
Those who apply to establish a technical experiments and research and development telecommunications network shall prepare the following documents and their electronic files(in PDF or ODF format)and submit them to the competent authority for application:
1. Application form for the establishment and use of a technical experiments and research and development telecommunications network.
2. A proposal of the establishment.
3. Photocopies of the documents of establishment of the applicant or company registration certificate(except for government agencies or schools).
4. The technology provided shall be chartered, permitted, or approved by other competent authorities for business objectives, with relevant supporting documents.
Article 10
The proposal of the establishment under Subparagraph 2 of the preceding article shall include the following:
1. The purpose and benefits of establishment.
2. Experimental items and methods.
3. The geographical range and the valid period of the establishment, the number of subscribers, method of collecting equipment deposits, and reasons.
4. Terms of service agreements or contracts for the subscribers.
5. Network stability, security, ability of operation maintenance, methods of network communication and a diagram of system configuration; and a diagram of interconnection configuration if interconnecting with other networks.
6. Development project, schedule and expected costs of network system; and the document proving the authorization of network use by the network provider for those that are self-developed;
7. Available technical research and development telecommunications services or service items other than telecommunications services.
8. A concrete proposal on research, development, test or the collection of related data.
9. A concrete proposal to cooperate with domestic industries, authorities and academic circles.
10. A proposal for the use of radio frequency.
11. Cyber security plan; and cyber security responsibility level shall be stated and cyber security maintenance plan provided for those specified by the Cyber Security Management Act.
12. Use of telecommunications equipment that complies with the national security considerations of relevant authorities.
The proposal for the use of radio frequency mentioned in Subparagraph 10 of the preceding paragraph shall state the following matters with relevant proof of documentation data:
1. The radio station establishment proposal and quantity list.
2. A proposal of use of radio frequency, including radio frequencies, frequency bandwidths and transmission power used in each of the experimentation areas.
3. Air interface specifications.
4. Necessary configuration against interference.
5. Radio wave coverage:
(1)A map indicating the radio station location and radio wave coverage(drawing and chart’s peripheries shall come with topographical drawing, photocopied maps or electronic maps with longitude and altitude).
(2)Description of the measurement evaluation data, which shall include various radio frequencies of radio wave(≧-125dBm)coverage for the radio frequencies used for each of the experimental areas and the range of the experiments.
For the application of a technical experiments and research and development telecommunications network using a specific experimental frequency in a specific experimental field, the radio frequency operation plan may be exempted from recording the information specified in Subparagraphs 3 and 4 of the preceding paragraph.
For the application for the use of the frequency band from 4.8GHz to 4.9GHz, the following information shall be provided in the establishment proposal in addition to that specified in Paragraphs 1 and 2 above:
1. Relationship between the applicant and the field of application(those who have the jurisdiction, owner or user)and supporting document;
2. Bandwidth to be used in 10MHz.
Article 11
The documents submitted for the application for the establishment and use of technical experiments and research and development telecommunications network shall not be returned.
Where the Applicant fails to provide all documents or the provided information is deemed to be incomplete, the competent authority shall notify the Applicant to undertake corrective action within a prescribed period. If the Applicant fails to do so or the provided information remains incomplete, the application shall be rejected.
Article 12
The following examination criteria shall apply to the applications for the establishment and use of technical experiments and research and development telecommunications network received by the competent authority:
1. Whether the purpose of establishment is met, benefits and its necessity;
2. Whether the geographical range of establishment, period of establishment and use, conditions of use for subscribers or number of subscribers is met, and whether the equipment guaranty bond is charged reasonably;
3. Whether the network development and the development schedule are feasible; this does not apply to those that are not self-developed;
4. Whether the concrete plan for research, development, testing or data collection contributes to the development of telecommunications industry and any specific industry;
5. Whether there is the ability of network stability, security and administrator maintenance;
6. Whether there is any violation of the requirements specified in these Regulations in the proposal;
7. Whether there is possible harmful interference from the assigned frequency;
8. Whether appropriate and sufficient cyber security measures are taken to ensure the security of information collection, processing, use and transmission;
9. Whether telecommunications equipment of consideration of national security is used.
For applications for the use of frequency band between 4.8GHz and 4.9 GHz, the following criteria shall be considered in addition to those mentioned in the preceding paragraph:
1. Whether the applicant is one who has the jurisdiction of the field, owner or user;
2. Whether the bandwidth applied for is reasonable;
3. Whether the necessary configuration against interference is feasible;
4. Whether the radio wave coverage exceeds the range of field applied for.
The competent authority may delete part of the items or contents in the establishment proposal for the applications for the establishment and use of technical experiments and research and development telecommunications network.
Where the radio frequency and geographical coverage are overlapping across multiple applicants, the one with more subjects of cooperation shall have the priority; however, the competent authority may ask the applicants to reach a mutual agreement if necessary.
The harmonious use and effective sharing of radio frequencies among applications shall be facilitated in principle. The applicants or administrators shall observe the establishment proposal approved by the competent authority for the use of radio frequencies.
Where the competent authority requires a change or termination of the use of radio frequency, the applicant or administrator shall apply for the change of establishment proposal pursuant to Paragraph 1 of Article 33.
Article 13
The application for the establishment and use of technical experiments and research and development telecommunications network shall be rejected should any of the following occurs:
1. Failure to comply with the requirements for the purpose of establishment specified in Paragraph 1 of Article 4;
2. Failure to comply with the requirements for the eligibility of application specified in Article 7;
3. Failure of qualifying the establishment proposal.
Article 14
The application for the establishment and use of technical experiments and research and development telecommunications network that has passed the document review shall be issued the document of approval for the network establishment and frequency use certificate by the competent authority.
The expiration date for the frequency use certificate mentioned in the preceding paragraph shall be the same as that on the network examination approval certificate.
The establishment proposal approved by the competent authority shall be observed for the technical experiments and research and development telecommunications network established and used by administrators.
Article 15
The approval of technical experiments and research and development telecommunications network establishment is valid for six(6)months.
Where the applicant fails to establish the technical experiments and research and development telecommunications network by the given deadline, an application for extension with appropriate justification may be submitted to the competent authority in one(1)month starting from a month before expiration; the extension is valid for three(3)months and only one(1)extension shall be granted.
The applicant shall specify the reason(s)and provide a list of radio stations established or information of network overview to the competent authority for reference on the termination of establishment during the approved establishment period, and the competent authority shall withdraw the approval of network establishment.
Where the network is not established before the network establishment approval expires or the competent authority revokes the network establishment approval, the applicant shall stop the establishment and remove all equipment immediately. Paragraph 3 of Article 39 shall apply mutatis mutandis for the equipment removed.
Article 16
Where the technical experiments and research and development telecommunications network is established according to the approved development schedule, the applicant shall submit a network security self-evaluation and test report to the competent authority for the application for network examination approval certificate.
Article 17
The following information shall be provided on the network examination approval certificate for technical experiments and research and development telecommunications network:
1. Name of telecommunication network established, name and address of administrator;
2. Type of telecommunication network established;
3. Geographical coverage of establishment;
4. Conditions or number of subscribers;
5. Frequency band(s)used;
6. Expiration date;
7. Date of certificate issuance.
Section 2 Commercial experiments and research and development telecommunications network
Article 18
Those who apply to establish a commercial experiments and research and development telecommunications network shall prepare the following documents and their electronic files(in PDF or ODF format)and submit them to the competent authority for application:
1. Application form for the establishment and use of a commercial experiments and research and development telecommunications network.
2. A proposal of the establishment.
3. Photocopies of the documents of establishment of the applicant or company registration certificate(except for government agencies or schools).
4. The technology provided shall be chartered, permitted, or approved by other competent authorities for business objectives, with relevant supporting documents.
5. Document of performance bond where it is planned to charge subscribers.
Article 19
The following information shall be provided in the establishment proposal mentioned in Paragraph 2 above in addition to Article 10 mutatis mutandis:
1. Purpose and necessity of business verification, including the telecommunications service items for the business verification and the description of the differences from existing public telecommunications service;
2. Configuration for the implementation of business verification and the period of implementation;
3. Benefits of the telecommunications of business verification for the development of domestic industries and the feasibility evaluation for future commercialization in domestic market;
4. Service agreement: the agreement shall specify the terms of service and use of subscriber equipment; where a fee is to be charged, a service contract shall be established additionally based on the principles of good faith, fairness and reasonability.
If prepayment is adopted for fees specified in Subparagraph 4 of the preceding paragraph, one of the following methods shall be specified in the service contract, providing a performance bond at least equivalent to the total amount of the prepaid fee(guarantee of refunding the proceeds):
1. Full performance bond provided by domestic banks.
2. Domestic banks' trust accounts.
The performance bond specified in the preceding paragraph shall specify the scope of responsibility.
Article 20
The provisions of Article 12 shall apply mutatis mutandis to the competent authority’s review of the commercial experiments and research and development telecommunications network, and the following review criteria shall be added:
1. Whether the purpose of business verification is met and its necessity.
2. Execution planning and implementation period of business verification.
3. The completeness of subscriber rights protection measures and the appropriateness of the performance bond content.
4. Perceived benefits promoting the nation’s industrial development and feasibility of commercialization of future verification services.
Article 21
When applying for the establishment of a commercial experiments and research and development telecommunications network, the provisions of Articles 7, 8, 11, 14, 16, and 17 shall apply mutatis mutandis to the eligibility of application, the number of subscribers, the handling of application, the handling of the establishment proposal, the issuance of the certificate, the items to be recorded in the certificate.
Article 22
Applications for the establishment and use of a commercial experiments and research and development telecommunications network falling under any one of the following circumstances shall not be approved:
1. Those that do not adhere to the regulations on the establishment purpose specified in Paragraph 2, Article 4.
2. Those that do not adhere to the regulations of Article 21 for the applying mutatis mutandis of the application qualifications specified in Article 7.
3. Telecommunications services having been available for public communications.
4. A dedicated telecommunications network of the same applicant that has been granted the approval for the same purpose of business verification.
5. Failure of qualifying the establishment proposal.
6. The use of any frequency between 4.8GHz and 4.9GHz.
Different applications shall be deemed as coming from the same applicant if they fall under any one of the following circumstances:
1. The applicant holds more than half of the total number of issued shares with voting rights of another applicant.
2. More than half of the applicant’s directors are the same as that of another applicant.
3. More than half of the total number of issued shares with voting rights of the applicant and another applicant are held or funded by the same shareholders.
4. Different applicants are also subordinate companies of the third party.
5. There is control and supervisor- subordinate relationship between control companies of different applicants.
The control and supervisor-subordinate relationship mentioned in Subparagraphs 4 and 5 of the preceding paragraph refers to the relationship specified in Subparagraphs 1, 2 or 3 of the preceding paragraph.
The method of calculating shareholding in Paragraph 2 shall be handled in accordance with the provisions of Article 369-11 of the Company Act.
Article 23
Article 15 shall apply mutatis mutandis to the expiration date, extension and termination of the approval of the commercial experiments and research and development telecommunications network establishment.