Chapter 2 Application and Review
Section 2 Commercial experiments and research and development telecommunications network
Article 16
Those that 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. Network establishment plan.
3. Photocopy of the frequency use certificate issued by the Ministry of Digital Affairs.
4. Photocopy of the planning documents for the application to use radio frequencies.
5. Document of performance bond when prepaid fees are planned to be charged to subscribers.
6. Other documents required by the competent authority.
Article 17
The network establishment plan mentioned in Paragraph 2 of the preceding Article shall, in addition to applying the provisions of Article 9 mutatis mutandis, specify the terms of service agreements for subscribers, defining the conditions for using the services and subscriber-end equipment, and the rights and obligations of both parties. If charges are planned, a service contract shall be established separately in accordance with the principles of good faith and fairness.
If prepayment is adopted for fees specified in the preceding paragraph, one of the following methods shall be specified in the service contract to provide 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 18
The provisions of Article 10 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. The completeness of subscriber rights protection measures and the appropriateness of the performance bond content.
Article 19
When applying for the establishment of a commercial experiments and research and development telecommunications network, the provisions in Articles 7, and 12 to 15 shall apply mutatis mutandis to the number of subscribers, the implementation of the network establishment plan, certificate issuance, matters to be specified on the certificate, the valid period for accepting the application and establishment approval, as well as the handling of extensions and terminations.
Article 20
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. Telecommunications services that have been available for public communications.
3. A dedicated telecommunications network of the same applicant that has been granted the approval for the same purpose of business verification.
4. Failure of the network establishment plan to qualify.
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 a 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.