July 2023
Albert Yen and Oli Wong
In the era of 5G networks, in addition to public telecommunications networks provided by telecom operators to the general public, many enterprises also want to establish dedicated telecommunications networks to promote digital transformation and explore innovative applications in various fields. The Executive Yuan announced the National 5G Spectrum Policy and Dedicated Network Development Plan at the end of 2019, assigning the 4.8-4.9GHz frequency band for dedicated network usage. After multiple interministerial negotiations and public consultations, the Ministry of Digital Affairs finally promulgated the Regulations Governing the Establishment and Use of Mobile Broadband Dedicated Telecommunications Networks (hereinafter, the “Regulations”) on June 1, 2023 to balance public interests and the needs of enterprises to build and use dedicated 5G networks. The key points of the Regulations are as follows:
Dedicated 5G networks are considered “dedicated telecommunications networks”[1] and their establishment requires approval from the competent authority. How to determine whether the radio frequency is deployed for “self-use”[2] has been a major focus of attention during the policy planning and discussion stages in the past. In this regard, the Regulations require dedicated 5G networks to be set up in the name of the deployer itself and should not be connected to public telecommunications networks in principle.[3] Dedicated 5G networks established by different deployers or for different purposes by the same deployer should not be interconnected.[4] While dedicated 5G networks are allowed to “connect to cloud services,” they are basically required to have “endpoints”[5] and comply with certain provisions.[6]
Another issue of concern during the policy planning and discussion stages is whether “dedicated 5G networks can be combined with the self-built core networks of others.” To effectively reduce the cost burden on enterprises, the Regulations not only allow the “combination with the self-built core networks of others” but also permit the “combination with the self-built access networks of others.” However, certain requirements must be met,[7] such as the deployer having control over the core or access network, the provider of the core or access network not being an enterprise invested by any mainland Chinese investors, the deployer having complete control over the stored data content, and the data center of the core network being located in Taiwan, or the operator having a fixed place of business in Taiwan, etc.
Regarding the prevention of frequency interference, the Regulations require that if there are more than two deployment applicants in the same area, such applicants shall coordinate on their own to achieve harmonious spectrum sharing. If the radio coverage area of the base station under application is adjacent to or overlaps with an existing network area or the interference protection zone of an existing radio station, the consent of the incumbent deployers should be obtained, and a spectrum harmonious sharing agreement should be submitted at the time of application.[8]
Finally, as far as application qualifications are concerned, the Regulations require applicants to have the right to use the deployment site. In addition, applicants and deployers are not allowed to be enterprises invested by mainland Chinese investors.[9] If there is a violation of the above restriction on mainland Chinese investment, the competent authority may impose a fine ranging from NT$100,000 to NT$1,000,000, in accordance with Article 77, Paragraph 1, Subparagraph 5 of the Telecommunications Management Act, and issue a notice for rectification within a specified period. Failure to comply within the stipulated period may result in further fines per violation or the revocation of the approval. [10]
After the Regulations come into effect, how the Ministry of Digital Affairs will determine whether the “self-use” requirement is met for individual deployment scenarios will be a key observation point in the future. In addition, the Ministry of Digital Affairs has started accepting applications since June 5 of this year. Whether the Regulations will continue to be revised and adjusted according to industry development needs and technological trends is worth continued attention for those who intend to apply for the establishment of dedicated 5G networks.
[1] Under Article 50, Paragraph 2 of the Telecommunications Management Act, the “dedicated telecommunications network” refers to a telecommunications network that is established with the radio frequency that is allocated by the competent authority and can only be used by the telecommunications network owner itself
[2] Under Article 2, Paragraph 2 of the Regulations Governing the Establishment and Use of Dedicated Mobile Broadband Telecommunications Networks, the wording “used by the owner itself” means construction in the name of the owner for its own business use.
[3] Article 4, Paragraph 1 and Article 8, Paragraph 1, Subparagraph 4 of the Regulations.
[4] Article 5, Paragraph 3 of the Regulations
[5] Under Article 8, Paragraph 2 of the Regulations, “endpoint” refers to the software and hardware devices that control the connection and routing of cloud service traffic on a mobile broadband dedicated telecommunications network in order to ensure the independence and closure of the mobile broadband dedicated telecommunications network.
[6] Article 8, Paragraph 1 of the Regulations
[7] Article 7 of the Regulations
[8] Article 10 of the Regulations
[9] Article 9 of the Regulations
[10] Article 40, Paragraph 1, Subparagraph 2 of the Regulations
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