Chapter 2 Application and Review
Section 2 Commercial experiments and research and development telecommunications network
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.
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.
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.
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.
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 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.