Chapter 3: Operation Management
Section 1: Charter Fee
Service providers shall remit a charter fee. The method of calculating and remitting the charter fee shall be in accordance with Paragraph 2 to Paragraph 4 and Paragraph 10. However, a service provider obtaining approval of the renewal of its charter from the NCC shall accord to Paragraph 5 to Paragraph 10.
The service providers' charter fee shall be calculated by multiplying sales income with the multiplier as offered in the bidding. However, if the amount derived from such calculation is below the amounts provided below, then the amount of charter fee shall be made according to the following amounts:
1. NT$ twenty million (20,000,000) for the first year
2. NT$ thirty million (30,000,000) for the second year
3. NT$ forty million (40,000,000) for the third year and thereafter.
The “first year” in the preceding Paragraph refers to the twelve months from the month in which the service provider begins commercial operation; the “second year” refers to the thirteenth month to the twenty-fourth month from the month in which the service provider begins commercial operation; and “the third year and thereafter” refers to the twenty-fifth month from the month in which the service provider begins commercial operation. The minimum amount of charter fee of the then-current fiscal year charged to the service provider shall be calculated proportionately according to the months described above.
The minimum advancement bond for charter fee charged to the winning bidder as provided in Article 32 shall be calculated according to Paragraph 1. After the annual charter fee has been remitted, the service provider may apply for the refund of the minimum advancement bond of charter fee of the then-current fiscal year or apply for notifying the guarantor bank to relieve the guarantee responsibility equivalent to the then-current fiscal year’s minimum advancement bond of charter fee.
After service providers obtain renewal of its charter, the annual charter fee shall be calculated pursuant to Regulations for Administration of Mobile Broadband Businesses, by multiplying the average annual value of each MHz, according to the results of the auction of unpaired frequency segments available in 2015, with the frequency bandwidth and the regional coefficient. The method of calculation is attached in the Appendix.
Service providers shall adhere to section 32, Paragraph 1 and remit the six-year advancement bond of to NCC within thirty days from the next due date of the approval of charter renewal. Prior to completing the bidding process, the minimum advancement bond of charter fee is NT$ two hundred and forty million (240,000,000); service providers shall remit price margin within thirty days after completion of the bidding process.
Should service providers fail to remit the advancement bond of charter fee after being issued with the renewed charter, the charter shall be revokewd by NCC.
The valid period of time for the charter shall begin from the date of the remittance of minimum advancement bond of the charter fee, adhered to by a letter of performance guarantee issued by a domestically registered bank, and expire on the date of the expiration date of the charter.
After remitting the annual charter fee, s service provider that obtains its charter renewal in Paragraph 5, may apply for the refund of the minimum advancement bond of charter fee of the then-current fiscal year or apply for notifying the guarantor bank to relieve the guarantee responsibility equivalent to the then-current fiscal year's minimum advancement bond of charter fee.
If the service provider fails to remit a charter fee in Paragraph 1, the NCC shall notify the guarantor bank to execute guarantee responsibility.
Section 2: Cross-investment or Merger
Service providers may apply for cross-investment or merger pursuant to Article 15 of these Regulations without being constrained by Paragraphs 1 and 5 of Article 16 and Article 17.
An application for merger mentioned in the preceding Paragraph shall be rejected if the applicant is subject to the situations provided in Paragraph 4 of Article 46.
If the applicant goes into merger after obtaining a charter and the service area becomes full area after the merger, the multiplier used for the calculation of charter fee shall be the average of the multipliers of the charters being merged. If the service area is still in the North Area or the South Area after merger, then the multiplier used for the calculation of the charter fee shall be the highest among the multipliers of the charters being merged. The minimum paid-in capital for the merged company pursuant to Paragraph 1 shall be greater than the amount as provided in Paragraph 3 of Article 4 multiplied by the number of charter being merged.
If an applicant, pursuant to Paragraph 1, goes into merger within the same service area, the applicant shall submit a report that explains the influence that the merger may impose on the development of the market for the Services, the overall economic benefits, and the reduction of unfavorable competition.
Section 3: Technical Supervision
Winning bidders or service providers shall use telecommunication numbers according to the Regulations on Telecommunications Numbers.
The auto telephone service provided by service providers shall offer users emergency telephone numbers of 110 and 119 free of charge.
Service providers shall give priority processing for all 110 and 119 emergency calls.
The NCC may conduct scheduled or non-scheduled inspection of wireless broadband access systems of service providers.
Service providers shall plan for protecting the channel covered in the assigned bandwidth.
If the radio frequency used by a service provider is interfered by the radio frequency used by legitimate, existing radio stations in other business service, then the service provider is responsible for making arrangement with such radio station through negotiation. Unsuccessful negotiations shall be reported to the NCC.
Equipment established by Operators that connects with other public communication network equipment shall conform to the following regulations:
1. Operators shall sufficiently protect the correspondence privacy of subscribers.
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 provide country code CLIP (Calling Line Identification Presentation) function in inbound international call and blocking inbound international call service by trusted user.
For equipment that doesn’t conform to the preceding paragraph, the authority shall order to improve or confine its use within a time limit.
An Operator shall provide the service of item 5 of Paragraph 1 from 1st Oct 2011.
If a service provider is subject to revocation or annulment of charter, the NCC shall revoke or annul the service provider’s assigned radio frequency, radio station license and network code.
Service providers and recipients of establishment approval shall follow the order of the NCC and form a mobile communication construction negotiation team to negotiate issues pertaining to network linkage, network roaming, and co-constructed or shared stations.
Service providers shall establish a Wireless Broadband Access Application Service Interconnection Test and Negotiation Team to supervise and negotiate the scale, construction, maintenance, and management issues pertaining to the collaborative test platform in order to benefit the promotion and execution of interconnection tests.
When two or more service providers are providing similar and compulsory international standard cross-system services at the same time, the Interconnection Test and Negotiation Team shall complete the cross-system test for such application service on the date that such service is declared as compulsory interconnection by such international standard or within half year from the date the second service provider begins to provide such service, so that the consumers may use the interconnection.
Service providers shall report the operation progress and results of the Wireless Broadband Access Application Service Interconnection Test and Negotiation Team as provided in Paragraph 2 to the NCC.
In order to promote interconnection applications among new services, mediate cross-system test disputes and confirm test results, the NCC may appoint a test lab recognized by Telecom Technology Center or WiMAX Forum or a test lab recognized by international or regional standard organizations, such as Institute of Electrical and Electronics Engineers or Telecommunications Standards Institute to assist in the issues of interconnection of telecommunication interface services.
Service providers shall recruit qualified, high-ranked telecommunication engineering personnel to take charge of and supervise the construction, maintenance and operation of telecommunication equipment; such personnel shall keep log and sign on the construction or maintenance journal.
The construction or maintenance journal shall be preserved for at least one year; the service provider is responsible to provide such journal for inspection by the inspection personnel sent by the NCC.
Section 4: Supervision over Services Operation
In order to improve nationals' rights and interests to basic telecommunication services and to provide basic telecommunication services to remote regions for universal service, the service provider shall contribute to the Telecommunication Universal Service Fund in accordance with the Regulations on the Telecommunication Universal Service.
The channel content on the interactive media platform set up by the service provider shall comply with the content provided by licensed operators in accordance Radio and Television Act, Cable Radio and Television Act, Satellite Broadcasting Act.
Service providers that operate other Type One telecommunication business shall comply with the following regulations:
1. Adopt a separate accounting system by which the amount of capital and related income of the Services are recorded separately from any other telecommunications business
2. Refrain from inappropriate bundling of services and related tarrifs with other Type One telecommunication businesses that obstruct fair competition
3. Telecommunication equipment for services shall be clearly separated from the other telecommunication for other Type One telecommunication business
4. Operate within the principles of fairness; discrimination or any other action of obstruction of fair competition is prohibited
Service providers shall comply with the Regulations on the Equal Access Services when providing auto telephone services.
Service providers shall provide services in a fair manner; refusal to service application for the Services is not allowed without justifiable reasons.
Service providers shall achieve base station wireless wave coverage of 70% or more of the population and half of the counties and cities in their respective service areas.
Service providers’ accounting system and accounting practice shall comply with the Accounting Standards and Regulations on the Type One Telecommunications Enterprises promulgated by the NCC.
The operators shall decide the tariffs for this business in accordance with the Administrative Regulation Governing Tariffs of Type I Telecommunications Enterprises base on Article 26 of the Telecommunications Act.
Service providers shall provide a considerable grace period while requesting for overdue payment from subscribers in case of refusal or postponement of payment, and notify subscribers that the subscribed services shall be suspended according the service contract if the overdue payment is not made within a grace period.
Prior to the end of the grace period as provided in preceding Paragraph, the service provider may not suspend subscribed telecommunication services of which the payment is overdue.
Service providers shall provide service rules in which terms and conditions pertaining to the services provided by the service providers and submit to the NCC for review and approval before such rules may be announced and in force; such rules must be provided at all business locations and the website for consumers to view. This Paragraph is also applicable to amendments of such rules.
The service rules as mentioned in preceding Paragraph shall specify fair and reasonable service terms and conditions and the following information:
1. Services provided by the service provider
2. Fee schedules for all services and the terms and conditions for fee adjustment
3. Limitations and terms and conditions of using the subscribers’ basic information
4. Method of indemnity for subscribers in case the service provider’s charter is revoked or abolished or the services are suspended, or terminated to the extent that subscribers’ rights are violated
5. Measures for damage caused by error, delay, interruption, or transmission failure due to telecommunication equipment breakdown or service denial
6. Measures for subscribers’ complaints and other items concerning subscribers’ rights
7. Other service terms and conditions
When a service provider has set up an interactive media platform for multimedia content service, besides the rules stipulated in the preceding paragraph, service rules shall specify the following information:
1. To assure the sales methods of the providers of the multimedia content service actively and clearly inform consumers of payment requests.
2. To provide a channel interface and storage facilities for program content.
The NCC may order the service provider to amend its service rules within a deadline if the harm to consumers’ rights or significant unfairness is found in such rules.
All required information as provided in Paragraph 2 shall be clearly stated in the standard service contract between a service provider and a subscriber and submitted to the NCC for review and approval before such contract is used. Such contract shall not violate any regulations concerning telecommunications and business operations. This Paragraph is also applicable to any changes.
Service providers shall enter into a service contract with every subscriber using approved standard service contract. This Paragraph is also applicable to a service provider that adopts pre-paid cards or other pre-paid fee schedule for the Services.
Any changes or amendments of the standard service contract made between a service provider and a subscriber shall be announced through public media before it comes into effect.
Service providers shall provide customers with a service quality that matches with the service quality standard defined by the NCC for its wireless broadband access network business.
The service quality standard as mentioned in preceding Paragraph shall be defined by the NCC depending on technique and service developments at the appropriate time.
The NCC may conduct assessment reviews by itself or through private institutions at its discretion and periodically announce service quality assessment reports on all service providers.
The NCC shall issue an order of improvement within a time limit if subscribers’ rights may be damaged due to the service provider’s inappropriate operation or poor service quality.
Interconnection between service provider’s network and other telecommunication enterprises’ network shall comply with the Regulations on Network Interconnection among Telecommunications Enterprises.
Service providers shall be obliged to provide the information of communication history and content for legal investigation or evidence collection that follows due process in laws.
The surveillance of the content of telecommunications under the preceding Paragraph shall be carried out in accordance with the Communication Security and Surveillance Act.
Service providers shall maintain phone records under Paragraph 1 of this Article for at least six months.
When the service provider constructs, installs, increases or expands its wireless broadband access system, its telecommunication surveillance facilities shall be installed in accordance with the applicable provisions of the Communication Security and Surveillance Act and the Enforcement Regulations thereof.
Service providers shall maintain telecommunication records for at least six months.
Service providers shall be obliged to provide telecommunication records maintained as provided in the preceding Paragraph for the user’s inquiry.
Service providers shall reconcile and record their subscribers’ information; service may only be provided after service provider’s system log file has been loaded and saved. Such log file shall be maintained for at least one year after the service contract has expired, and be provided to the authorities concerned for investigation by due process in laws. This Paragraph is also applicable to a service provider that adopts pre-paid cards or other pre-paid fee schedule for the Services.
The subscribers’ information as provided in the preceding Paragraph shall include the subscriber’s name, ID number, address and assigned number.
The loading of the user information mentioned in preceding Paragraph shall be completed within two days after the service provider has accepted an application.
Service providers that adopt pre-paid cards or other pre-paid fee schedule for the Services shall re-check the subscriber’s information every week; if a subscriber has activated service without the subscriber’s information, then the service provider shall notify the subscriber to provide the complete information within one week, otherwise the service provider shall suspend service for the subscriber.
The service provider shall clearly state the regulation provided in the preceding Paragraph in its business rules and standard service contract.
The service provider that intends to temporarily suspend or permanently terminate partial or all services it provides shall report to the NCC for approval three months prior to the planned date of suspension or termination and notify its subscribers one month prior to the planned date of suspension or termination.
The charter that is granted by the NCC to the service provider that is approved to suspend or terminate all its services shall be abolished by the NCC.
The NCC shall take appropriate action at its discretion upon the expiration of the business suspension or termination of operation as mentioned in the preceding Paragraph.
Service providers shall provide phone number portability service according to the Regulations on Number Portability.