Chapter 2: Operation Concession
Section 3: Application and Review
The applicant must be a corporation established in accordance with the Company Act; the chairperson of the board of director must be a citizen of the Republic of China. The total number of shares held by non-nationals must comply with Paragraph 3 or Paragraph 5 of Article 12 of these Regulations.
One applicant shall not submit more than two applications.
Two applicants shall be deemed as an identical applicant in any of the following circumstances:
1. The applicant holds the voting shares more than half of the total voting shares own the other applicant.
2. Half or more than half of the directors of the board of an applicant collectively hold half or more than half of the position as director of the board of the other applicant.
3. The total number of voting shares issued by the applicant and the other applicant is equal to or larger than half of the shares owned by the same shareholders or investors.
4. Different applicants are subsidiary companies of a third-party company.
5. Different applicants’ holding companies are in relation of control or a subsidiary.
The terms of control and subsidiary in Paragraph 4 and 5 above means the concerned parties in Paragraph 1, 2, and 3 above.
The calculation method of shares in Paragraph 2 shall follow Article 369-11 of the Company Act.
If a shareholder of an applicant company also holds shares of the other applicant company, then the shareholder’s percentage of share holding in one applicant’s company is not limited, but the percentage of share holding in the other applicant company may not exceed 10%.
Paragraph 1 and 5 also come into force and are applicable after a charter has been granted to an applicant.
Applicants shall be deemed as a joint applicant in any of the following circumstances:
1. An applicant holding the shares of the other applicant company equivalent to 15% or more of the applicant company’s total capital.
2. The same group of shareholders holds shares of different applicants equivalent to one third or more of each of the applicants’ total capital.
The calculation method of shares shall follow Article 369-11 of the Company Act.
Joint applicants shall negotiate and appoint only one as a qualified applicant; if they fail to do so, then the NCC shall determine a time and place to administer a draw to determine the qualified applicant.
The application made by the applicant that is disqualified after the negotiation or draw described in preceding Paragraph, and the applicant that fails to participate in the draw shall be rejected; the reviewing fee and interest shall not be refunded, and the bid bond will be refunded without any interest.
This Article is also in force and applicable after a charter has been granted to the applicant.
The applicant shall submit the following documents within a time limit to the NCC:
1. Application Form
2. Business Plan
3. Preference List of Winning Order
4. Bid Note
5. A photocopy of the receipt of remittance record of bid deposit.
6. A photocopy of the receipt of remittance record of reviewing fee
The Business Plan as referred to in the proceeding Paragraph shall include the following information:
1. Business items
2. Service area
3. General status of telecommunication facilities:
(1) Type of wireless broadband access technology adopted, maximum mobile speed supported, efficiency of average frequency spectrum, and the name of the international or regional organization that defines the technology.
(2) Construction plan and time schedule for system network, and intended distribution area and quantity of base stations.
(3) System structure, communication type and service pattern.
(4) Usage plan of wireless frequency.
(5) Establishment plan of telecommunication surveillance system.
(6) Plans for avoiding interference of adjacent frequencies
(7) System service quality.
(8) The status of which the system is being used or tested in other countries.
(9) Description of contributions to the domestic telecommunication industry.
4. Financial structure: estimated total capital and total paid-in capital after winning the bid and upon the completion of registration of corporate changes and estimation of the fund resource over the next five years and fund utilization plan; an applicant that operates other telecommunication businesses at the same time shall also submit a responsive solution as required by Paragraph 1 of Article 63.
5. Technological capability and development plan.
6. Fee schedule and calculation method.
7. Personnel and organization structure and shareholding status: Copies of Company Registration, Roster of directors and supervisors, shareholders roster of the shareholders that hold one percent (1%) or more of the shares, the foreign shareholding ratio calculation list, report of the relationship with subordinating company and consolidated business report of the controlling company.
8. Scheduled date for commencement of operation.
9. Related measures for consumer protection.
10. A brief summary of business plan for the NCC to quote and release as public information.
11. Other matters required by the review procedure.
The required information and recording method for the documents in the two preceding Paragraphs shall be defined and announced by the NCC.
In order to verify the applicant’s situation provided in Article 16 and a joint applicant’s situation provided in Article 17, the NCC may order the applicant to provide supplementary information within a time limit after the applicant has won the bid and before the applicant has been granted with a charter.
The applicant shall deliver the documents required by Subparagraph 3 and 4 of Paragraph 1 in a sealed envelope; failure to do so shall result in a rejected application.
After an applicant has submitted an application according to Paragraph 1, the documents submitted shall not be returned.
The bid bond shall be NT$ forty million (40,000,000). The reviewing fee for every business plan shall be NT$ two hundred and fifty thousand (250,000). The applicant may not request for the refund of the rendered bid bond and reviewing fee prior to the announcement of bid result unless otherwise regulated by laws.
The bid bond and reviewing fee shall be remitted to the bank account assigned by the NCC via telegraphic transfer; the applicant’s company name, address, and telephone number shall be noted when transferring the fees.
The application filed by an applicant may not be amended or shall be rejected in any of the following circumstances; the bid bond and reviewing fee remitted shall be refunded without interest within seven days from the next date of the arrival of an application rejection notice.
1. Application deadline is overdue.
2. Application form, business plan, preference list of winning order, or bid note is missing.
3. The bid bond or reviewing fee is not remitted according to the regulations or the bid bond or reviewing fee remitted is insufficient.
The application filed by an applicant may not be amended or shall be rejected if any of the followings happens; the bid bond and reviewing fee remitted and interest, if any, shall not be refunded, and the refunded shall be reclaimed:
1. Violations to Paragraph 1 and 5 of Article 16.
2. The information provided as required by Article 15 to 17 is found to be untrue or false.
3. An application with forged or counterfeit documents.
4. Any conducts that affect the fairness of the bidding process such as bid fixing.
If the application does not meet any of the conditions stated in previous Article, but has any of the following conditions, the NCC shall notify the applicant in request of a remedy within a specific period of time. The application will not be processed if a remedy is not found within the specific period of time, or if the documents are still not completed after resubmitting. The bid deposit will be refunded without interest within seven days from the day following the day of receipt of the decision not to accept the application. The reviewing fee and its interest will not be refunded:
1. Violations to Article 15;
2. The expected paid-in capital as stated in the application or business plan does not meet the minimum paid-in capital as required for the Services;
3. The documents requested according Paragraph 1 and 2 of Article 18 are incomplete, or the content stated therein is not thorough, or any matter stated in the application and business plan is obviously misstated or miscalculated; and
4. The system facilities do not comply with the wireless broadband access technology defined by the NCC.
If an applicant fails to supplement the relevant information according to Paragraph 4, Article 18 within the stipulated period of time, the application will not be processed. The bid deposit will be refunded without interest within seven days from the day following the day of receipt of the decision not to accept the application. The reviewing fee and its interest will not be refunded.
During the bidding process, if the bidder takes any action as stated in any subparagraph of Paragraph 1, subparagraph 1 of Paragraph 2 or Paragraph 3 of the previous Article, the bidder's rights to participate in the bidding will be cancelled or revoked. If such situation is discovered after the bid is awarded, the award will be cancelled or revoked, and any bid bond, reviewing fee or interest shall not be refunded. If these fees had already been refunded to the applicant, they shall be reclaimed.
For an applicant who withdraws the application, the bid deposit and reviewing fee that have been paid shall be handled according to the following regulations:
1. If the withdrawal takes place before the deadline for filing the application as announced by the NCC, bid deposit and reviewing fee will be refunded without interest within seven days from the day following the day of receipt of the withdrawal application;
2. if withdrawal takes place before the qualified bidder is announced, the bid deposit will be refunded without interest within seven days from the day following the day of receipt of the withdrawal application; the reviewing fee and interest thereof will not be refunded; and
3. if the withdrawal takes place after the qualified bidder is announced, none of the bid deposit, reviewing fee and the interest will be refunded; if such funds have been refunded, they shall be reclaimed.