Article 12
A Type I telecommunications enterprise may not operate without franchise and license issued by the MOTC.
A Type I telecommunications enterprise shall be a company limited by shares incorporated pursuant to the Company Law.
The chairman of the Board, of a Type I telecommunications enterprise shall be a nationals of the Republic of China. The total direct shareholding by foreigners may not exceed forty-nine percent, and the sum of direct and indirect shareholding by foreigners may not exceed sixty percent.
The percentage of indirect shareholding by foreigners mentioned in the preceding paragraph shall be calculated by multiplying the percentage of shareholding by domestic juristic persons in the Type I telecommunication enterprise by the percentage of shareholding or capital paid by foreigners in the said domestic juristic persons.
The percentage of shareholding by foreigners in Chunghwa Telecom Co., Ltd. shall be separately prescribed by the MOTC, and the provision in paragraph three shall not be applied hereto.
The operating items and scope, the timetable for deregulation, and the number of operators to be allowed for Type I telecommunications enterprises shall be announced by the Executive Yuan.
With respect to granting franchise to Type I telecommunications enterprises’ service provisions, the MOTC may adopt a system of evaluation and examination, open tender or any other appropriate method, in consideration of the objectives of liberalization policy, conditions of the telecommunications market, consumers’ rights, and other needs of public interests.
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Article 32
Type I telecommunications enterprises or government agencies which establish dedicated telecommunications facilities may use public and private land and buildings for establishment of conduit infrastructure and terminal equipment. Governmental authorities shall not reject a request to use public land or buildings without due cause. If any such use of land or buildings causes material damage, appropriate compensation shall be made. The location and manner of use shall be the least harmful to governmental entities and owners, occupants or users of such land or buildings.
Type I telecommunications enterprises or government agencies which establish dedicated telecommunications facilities may use rivers, embankments, roads, public forest or other public-use land and public buildings for establishment of radio stations; provided that such establishment was necessary and proper, does not impair the original effective uses of such land or buildings, and prior approval from the authorities concerned has been requested. The authorities concerned shall not reject such request without due cause.
Construction or restoration by Type I telecommunications enterprises or government agencies which establish dedicated telecommunications facilities shall comply with the regulations enacted by authorities concerned.
As referred to in the preceding Paragraphs 1 and 2, public land and buildings shall be provided on a priority basis to facilitate the construction of conduit infrastructure, terminal equipment, and radio stations unless the use of privately owned land would be impossible to avoid or such construction on/in public land or buildings would be difficult. However, senior high schools (senior vocational school) and lower level educational institutions shall not be subject to requests of Type I telecommunications enterprises to construct outdoor base stations (OBS).
The Executive Yuan shall evaluate and publicize the performance of the construction of conduit infrastructure and radio stations on/in lands and buildings managed or possessed by the central and local government authorities and state-owned enterprises every year.
In the event that the private building to be used in accordance with paragraph 1 is an apartment building, the approval of the apartment building management committee shall be obtained. Provided that there is no management committee, the permission of each owner shall be obtained and Article 8, paragraph 1 of the Statute for Management of Apartment Buildings shall not apply to such approval.
The central and local government authorities shall assist Type I telecommunications enterprises in constructing conduit infrastructure.
Regarding the new construction of conduit infrastructure and terminal equipment, Type I telecommunications enterprises shall jointly establish a Conduit Infrastructure Deployment Negotiating Group which shall negotiate matters related to the planning, application, construction and facilities-sharing of conduit infrastructure. If necessary, the MOTC may mediate the aforementioned matters.
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