Chapter 2 Application and Verification
Section 3 The Establishment and Investigation of Radio Station
A proposal of the establishment under Subparagraph 2 of the preceding article shall include the following items:
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 users, method of collecting equipment deposits, and reasons.
4. Terms of service agreements or contracts for the users.
5. Methods of network communication and a diagram of system configuration; if interconnecting with other networks, a diagram of interconnection configuration shall also be attached.
6. Construction project, schedule and expected costs of network system.
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 (excluded if not operating on radio frequencies).
Subparagraph 10 of the preceding paragraph regarding radio frequency use proposals 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 various frequencies, frequency bandwidth and transmission power used in various experimentation areas.
3. Air interface specifications.
4. The mechanism for the prevention of interference.
5. Radio wave coverage:
(1) The radio station location and a diagram of the area covered by radio waves (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 perimeters used in various experimentation areas and the perimeters of areas for conducting 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 those that apply to establish a technical experiments and research and development telecommunications network, matters such as the application, review items, establishment proposal, and license issuance, as well as items to be recorded on the license may be in accordance with stipulations set forth in Article 12, Article 13, Article 15, Article 17, and Article 18.
The applications for the establishment and use of a technical experiments and research and development telecommunications network falling under ant one of the following circumstances shall not be approved:
1. Those that do not adhere to the regulations on the establishment purpose specified in Paragraphs 2 and 3, Article 5.
2. Those that do not adhere to the regulations on the application qualifications specified in Article 19.
The valid period of the approval for a technical experiments and research and development telecommunications network shall be six months.
Should the applicant not complete the establishment of the proposed technical experiments and research and development telecommunications network within the valid period of the certificate of approval for network establishment, the applicant may state the reasons and apply to the competent authority for an extension, one month prior to the expiration; the extension period may not exceed three months and shall be limited to once only.
Should the applicant abort the establishment of the network within the valid period of the certificate of approval for network establishment, the applicant shall state the reasons and submit the established radio station list or network status data to the competent authority for future reference and also have the certificate of approval for network establishment revoked by the competent authority.
If network establishment has not be completed within the valid period of the certificate of approval for network establishment or should the competent authority revoke the certificate of approval for network establishment, the applicant shall promptly abort the establishment, dismantle relevant equipment, and act in accordance with the provisions set forth under Paragraph 3, Article 47.
Applicants for the establishment and use of commercial experiments and research and development telecommunications networks shall submit the applications to the competent authority with the following documents attached:
1. An application for commercial experiments and research and development telecommunications network.
2. An establishment proposal.
3. Photocopies of the applicant’s establishment document or company registration certificate (except for government agencies or schools).
4. The services provided shall be chartered, permitted, or approved by other competent authorities for business objectives, with relevant supporting documents.
5. The supporting documents of the performance security deposit for those who intend to pre-charge users.
6. A CD-Rom containing the application in digitized documents (either PDF or ODF format).
The provisions of Article 22 shall apply mutatis mutandis to the items which shall be recorded in the establishment proposal specified in Article 22, and in addition the proposal shall contain the following items:
1. The purpose and necessity of business verification, including telecommunications service items for conducting commercial verification and the descriptions of differences with existing public telecommunications services.
2. Execution planning and implementation period of business verification.
3. The perceived benefits of the telecommunications services of commercial verification in the nation’s industrial development and the feasibility analysis of commercialization in the domestic market.
4. User usage regulations: clearly define the service, the user conditions for equipment use and the rights and obligations of both parties; if fees are to be charged, the service contract shall be separately formulated and handled in good faith and fairness.
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 guarantee specified in the preceding paragraph shall specify the scope of responsibility.
The provisions of Article 13 shall apply mutatis mutandis to the competent authority’s review of the commercial experiments and research and development telecommunications network, and the following review items shall be added:
1. The purpose and necessity of business verification.
2. Execution planning and implementation period of business verification.
3. The completeness of user rights protection measures and the appropriateness of the performance guarantee content.
4. Perceived benefits promoting the nation’s industrial development and feasibility of commercialization of future verification services.
When applying for the establishment of a c commercial experiments and research and development telecommunications network, the provisions of Articles 12, 15, and 17 to 20 shall apply mutatis mutandis to the acceptance of the application, the handling of the establishment proposal, the issuance of the license, the items to be recorded in the license, the application qualifications, and the number of users.
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 4, Article 5.
2. Those that do not adhere to the regulations of Article 28 for the applying mutatis mutandis of the application qualifications specified in Article 19.
3. Telecommunications services having been commercially operated.
4. The same applicant having been granted the same commercial verification telecommunications service.
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 Subparagraph 2 shall be handled in accordance with the provisions of Article 369-11 of the Company Act.