Taipei, March 19, 2010 (CENS)-The Taiwan Cabinet passed the draft revision on the Radio and Television Act on March 18, changing substantially the allocation of radio and television operating licenses.

In the future, radio and TV operation licenses will be allocated via multiple channels, including auction, evaluation, and open bidding, which will be added to the existing practice of review. The licenses will be good for nine years and will have to undergo evaluation every three years, instead of six years and two years, respectively, at present.

To avoid dominance by conglomerates with deep pockets, costs for licenses may be capped at a certain level, when they are allocated via auction or public bidding. Winners will be decided by lot drawing from participants or bidders with offers exceeding the level.

The revision has been made in compliance with the Budget Law, which requires the allocation of quota, frequencies, or licenses to be made via public auction or bidding, unless there is contrary stipulation in law. The existing review system for the allocation of radio and TV licenses has been criticized as illegal and an under-the-table practice.

The proposed new practice may be applied in the allocation of the second-batch licenses for terrestrial TV and licenses for mobile TV.

According to the draft revision, the regulator can revoke the operation licenses in case the operators cannot meet its corrective orders for substandard practices during the evaluation every three years.

(by Philip Liu)