Telecommunications Management Act Article 55

To facilitate the use benefits of the radio frequency and to satisfy the needs for the overall communications and information development, the competent authority may, upon receipt of the Executive Yuan’s approval, announce that users of specific radio frequencies may apply to return the allocated radio frequency; and said frequencies will be allocated to other telecommunications enterprises by the competent authority through auction. In addition, the auctioned radio frequencies will not be bound by the original use thereof.The competent authority shall, in the announcement as described in the preceding paragraph, specify that a certain percentage or amount of the auction price will be paid to the users who have applied to return the frequencies. The amount paid thereto will be deducted from the amount obtained by the auction.With respect to the application of the original user to whom the frequencies were originally allocated as described in Paragraph 1, the competent authority shall take the use benefits of radio frequency into consideration in order to agree or reject the application. The competent authority may proceed to auction the frequencies directly or after planning it with other radio frequencies.With respect to radio frequencies that are granted to be returned as described in the preceding paragraph, the original user shall, before the radio frequency is auctioned to another party, maintain its operation according to the operation plan of operation license during the period of original operation license.Before proceeding to auction, the competent authority shall announce the qualifications, conditions and obligations applicable to telecommunications enterprises participating in the auction. Only those who pass the competent authority’s review will be able to join the auction.The original users who meet said qualifications may also join the auction. However, when winning the bid, the original users will not receive the payment as described in Paragraph 2.