Examination Regulations on the Establishment Application of Satellite Broadcasting Businesses and Foreign Satellite Broadcasting Businesses

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=K0060099

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Article 1


These Regulations are hereby enacted pursuant to Paragraph 4, Article 6 of the Satellite Broadcasting Act (hereinafter referred to as “the Act”).


Article 2


Applicants shall submit a completed application form and an operations plan to the regulatory agency in accordance with the specified directives. Operations may begin only after the regulatory agency has approved the application and issued a satellite broadcasting business license.


Article 3


Applicants shall meet the following qualifications:
1. Applicants of a satellite broadcasting business shall possess one of the following qualifications:
(1) Company limited by shares that has been established or being established according to law and with shares directly held by non-citizens being less than 50% of total issued shares of said business.
(2) Foundation that has been established or being established according to law.
2. Applicants of a foreign direct satellite broadcasting service operator (hereinafter referred to as “foreign service operator”) shall be limited to a branch office of a foreign satellite broadcasting business located in the Republic of China that has been established according to law; applicants of a foreign satellite broadcasting program supplier (hereinafter referred to as “foreign program supplier") shall be limited to a branch office or agent of a foreign satellite broadcasting business located in the Republic of China that has been established according to law.
For the agent of the foreign program supplier in Subparagraph 2 of the preceding paragraph, one agent shall be limited for each single channel.
For those applying to run a foreign program supplier, while, at the same time, establishing a branch office and agent in the Republic of China, said branch office shall be the party applying for approval.


Article 4


The minimum paid-in capital, operating capital, or total endowment assets of applicants shall meet the following requirements:
1. Running a satellite broadcasting business:
(1) Direct satellite broadcasting service operator (hereinafter referred to as “service operator”): NT$200 million.
(2) Satellite broadcasting program supplier (hereinafter referred to as “program supplier”): NT$50 million.
(3) Running both aforementioned businesses: NT$200 million
2. Running a foreign service operator or a foreign program supplier: minimum operating capital or paid-in capital shall reach NT$20 million.


Article 5


Those applying to run a service operator shall complete the application (Attached Form 1-1) and operations plan, and shall explicitly include the following items in the operations plan:
1. The name, nationality, frequency, transponder of the satellite, and the reception area of the satellite signals; and the number of satellite channels;
2. The initial date of operation;
3. Financial structure and personnel organization;
4. Channel or program planning;
5. Internal control mechanism;
6. Methods of operation and plan for technological development;
7. Fee standards and calculation method; and
8. Other items, as specified by the regulatory agency.
The operations plan in the preceding paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-1) and other documents and supporting documentation, as specified by the regulatory agency.


Article 6


Those applying to run a foreign service operator shall complete the application (Attached Form 1-2) and operations plan, and shall explicitly include the following items in the operations plan:
1. The name, nationality, frequency, transponder of the satellite, and the reception area of satellite signals; and the number of satellite channels;
2. The initial date of operation;
3. Channel or program planning;
4. Fee standards and calculation method; and
5. Other items, as specified by the regulatory agency.
The operations plan in the preceding paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-1) and other documents and supporting documentation, as specified by the regulatory agency.


Article 7


Those applying to run a program supplier shall complete the application (Attached Form 1-3) and operations plan, and shall explicitly include the following items in the operations plan:
1. The number of operating channels, channel name, and method of transmitting signals;
2. The initial date of operation;
3. Program planning;
4. Proposals of broadcasting programs that promote the culture of the ROC;
5. Internal control mechanism and program editorial system;
6. Fee standards and calculation method; and
7. Other items, as specified by the regulatory agency.
If the application is for a channel in the general channel category, the operations plan in the preceding paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-2) and other documents and supporting documentation, as specified by the regulatory agency.
If the application is for a channel in the shopping channel category, the operations plan in the first paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-3) and other documents and supporting documentation, as specified by the regulatory agency.


Article 8


Those applying to run a foreign program supplier shall complete the application (Attached Form 1-4) and operations plan, and shall explicitly include the following items in the operations plan:
1. The name, nationality, frequency, transponder of the satellite, and the reception area of satellite signals; and the number of satellite channels;
2. The initial date of operation;
3. Program planning;
4. Internal control mechanism and program editorial system;
5. Fee standards and calculation method; and
6. Other items, as specified by the regulatory agency.
If the application is for a channel in the general channel category, the operations plan in the preceding paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-2) and other documents and supporting documentation, as specified by the regulatory agency.
If the application is for a channel in the shopping channel category the operations plan in the first paragraph shall be written in accordance with the specified details stated in Attached Form 3, along with the Operations Plan Summary Form (Attached Form 2-3) and other documents and supporting documentation, as specified by the regulatory agency.


Article 9


The regulatory agency shall summon establishment application and license renewal advisory meetings for satellite broadcasting businesses, foreign satellite broadcasting businesses, and other type channel and program supply business to examine the cases of application and provide advisory opinions.


Article 10


Should the application or operations plan of the satellite broadcasting business and foreign satellite broadcasting business be incomplete, the applicant shall be notified to make the required amendments and provide supplementary information within a specified period. If the applicant fails to do so, the application shall be rejected and the examination fee shall be returned.


Article 11


In any of the following situations, an applicant of a satellite broadcasting business may not make amendments or provide supplementary information and the application shall be rejected with stated reasons for the rejection and the examination fee shall be returned:
1. Violation of provisions of Article 5 of the Act, where there are situations of personnel from government, political parties, or related businesses, and foundations investing or taking office;
2. The director, supervisor, or promoter of the applicant is in a situation listed in Subparagraph 2, Paragraph 1, Article 10 of the Act, or does not meet the eligibility criteria related to directors, supervisors, and responsible persons in Paragraph 3, Article 10 of the Act and other regulatory management matters;
3. The applicant had its satellite broadcasting business license revoked or cancelled within the past two years due to a violation of the provisions of the Act;
4. Violation of provisions of Article 3 related to the qualifications of the applicant; and
5. Violation of provisions of Article 4 related to the minimum paid-in capital, operating capital, or total endowment assets.
The provisions of Subparagraphs 3 to 5 of the preceding paragraph are applicable to those applying to run a foreign satellite broadcasting business.


Article 12


Except for the situations in the preceding two articles, where the application cases for service operators and foreign service operators shall be rejected, these cases shall be examined according to the following examination items and assessment standards; those, whose score from the assessments is less than 60 points, are unqualified and shall be disapproved:
1. Market positioning and channel planning, 50 points;
2. Internal control mechanism, 20 points;
3. Financial planning and fee standards, 30 points;
4. Company organization and personnel training, 10 points; and
5. Customer service and complaint process, 10 points.
For the application cases in the preceding paragraph that are in the situation of violating the provisions of Subparagraphs 3 or 4, Paragraph 1, Article 10, or Article 12 of the Act, the applications shall be rejected with stated reasons for the rejection.


Article 13


Except for the situations in Articles 10 or 11, where the application cases for program suppliers and foreign program suppliers of the channel category of general channel shall be rejected, these cases shall be examined according to the following examination items and assessment standards:
1. Channel positioning and content planning, 50 points;
2. Internal control mechanism and content editorial system, 30 points;
3. Financial planning and fee standards, 20 points;
4. Company organization and personnel training, 10 points; and
5. Customer service and complaint process, 10 points.
Those whose total score has not reached 50 points for the examination items in the preceding paragraph shall be excluded; for those whose operations plan in the preceding paragraph has stated the following planning items, appropriate points will be added subject to the completeness and execution period of the plan:
1. International news production and broadcasting planning, maximum of adding 10 points;
2. Domestically produced children and youth program production and broadcasting planning, maximum of adding 15 points;
3. Employment service planning for people with disabilities, maximum of adding 10 points; and
4. Innovative service or planning which facilitates industrial development, maximum of adding 5 points.
Those, whose total score from the assessments in the preceding two paragraphs is less than 60 points, shall be deemed as unqualified and shall be disapproved.
Those whose application cases in Paragraph 1 are program suppliers and are in the situation of violating the provisions of Paragraph 3, Article 8, Subparagraphs 3 or 4, Paragraph 1, Article 10, or Article 12 of the Act, their applications shall be rejected with the stated reasons for the rejection.
Those whose application cases in Paragraph 1 are foreign program supplier and are in the situation of violating the provisions of Subparagraphs 3 or 4, Paragraph 1, Article 10, or Article 12 of the Act, their applications shall be rejected with the stated reasons for the rejection.


Article 14


Except for the situations in Articles 10 or 11, where the application cases for program suppliers and foreign program suppliers of the channel category of shopping channel shall be rejected, these cases shall be examined according to the following examination items and assessment standards:
1. Channel positioning and content planning, 20 points;
2. Internal control mechanism and content editorial system, 40 points;
3. Financial planning and fee standards, 20 points;
4. Company organization and personnel training, 10 points; and
5. Customer service and complaint process, 30 points.
Those whose total score has not reached 50 points for the examination items in the preceding paragraph shall be excluded; for those whose operations plan in the preceding paragraph has stated the following planning items, appropriate points will be added subject to the completeness and execution period of their plan:
1. Employment service planning for people with disabilities, maximum of adding 10 points; and
2. Innovative service or planning which facilitates industrial development, maximum of adding 10 points.
Those, whose total score from the assessments in the preceding two paragraphs is less than 60 points, are unqualified and shall be disapproved.
Those whose application cases in Paragraph 1 are program suppliers and are in the situation of violating the provisions of Paragraph 3, Article 8, Subparagraphs 3 or 4, Paragraph 1, Article 10, or Article 12 of the Act, their applications shall be rejected with the stated reasons for the rejection.
Those whose application cases in Paragraph 1 are foreign program supplier and are in the situation of violating the provisions of Subparagraphs 3 or 4, Paragraph 1, Article 10, or Article 12 of the Act, their applications shall be rejected with the stated reasons for the rejection.


Article 15


Those whose application cases to run satellite broadcasting businesses and foreign satellite broadcasting businesses have been approved shall complete company establishment or change of registration within six months, and then submit the document proofs of company establishment or change of registration for review to apply for an issuance of satellite broadcasting business license from the regulatory agency.
For the application cases of running satellite broadcasting program supplier and foreign satellite broadcasting program supplier, each channel shall be regarded as a separate unit for application and the licenses shall be issued respectively.


Article 16


Decisions for application cases shall be made within six months from the date of receipt.
Those application cases which are unable to be processed and concluded by the period in the preceding paragraph, the regulatory agency shall extend the examination period for a maximum period of six months and only one extension shall be allowed.


Article 17


The provisions of the Regulations on satellite broadcasting program supplier shall apply mutatis mutandis to the approval procedures, examination items, assessment standards, and other matters that shall be complied of other type channel and program supply business, unless otherwise provided by law.


Article 18


The applicants shall make the payment of examination fees and license fees to the regulatory agency according to the provisions.


Article 19


These Regulations shall take effect from the date of promulgation.