A PSTN shall be classified according to whether any telecommunications resource is used.
The telecommunications resources as described in the preceding paragraph refer to one of the following circumstances:
1. The radio frequencies allocated by the competent authority, except for the scenarios applicable to Subparagraphs 1, 3 and 4 of Paragraph 1 of Article 56.
2. The identification codes, signal point codes or other telecommunications numbers used for interconnection of telecommunications networks allocated by the competent authority.
Before establishing a PSTN, one shall file an application with the competent authority for its approval in accordance with Articles 37 and 38.
Only a company limited by shares is eligible to establish a PSTN that uses telecommunications resources; and the chairman thereof shall be a national of the Republic of China, unless specified otherwise by laws.
With respect to enterprises that have established a PSTN that uses telecommunications resources, the total of shares directly held by foreigners shall not exceed 49% of the total; and the total of directly and indirectly held shares shall not exceed 60% of the total, unless specified otherwise by law.
The shares indirectly held by foreigners as described in the preceding paragraph shall be calculated by multiplying the shareholding ratio of domestic legal persons who have established a PSTN using telecommunications resources by foreigners’ percentage in domestic legal persons’ percentage in shareholdings or capital.
Before the promulgation of this Act, the 3 preceding paragraphs are not applicable to PSTNs that are established using resources as described in Subparagraph 2 of Paragraph 2 and are announced by the competent authority.
Rules governing the procedures of establishing a PSTN, requisite documents, review standards and other related matters shall be promulgated by the competent authority.

When applying for the establishment of a PSTN that uses telecommunications resources, submitting the application, operating plan and network establishment plan to the competent authority for its approval is required. Only upon receipt of the competent authority’s approval is the enterprise eligible to initiate operation and establishment. The same rule shall be applied when making an addition or change to the establishment of the PSTN.
The operating plan as described in the preceding paragraph shall specify the following matters, unless specified otherwise by law:
1. Overall planning;
2. Financial structure;
3. Human resources organization and shareholdings;
4. Network plan required to maintain the service quality;
5. The methods of fulfilling one’s obligations derived from being allocated radio frequency or telecommunications number;
6. Other operation-related matters designated by the competent authority.
Any change to Subparagraphs 4 and 5 of the preceding paragraph shall be submitted to the competent authority for approval, whereas the other changes shall be sent to the competent authority for reference.
The network establishment plan as described in Paragraph 1 shall specify the following matters:
1. The region and schedule planning of the establishment;
2. Communications type, network framework and performance that are in compliance with operating plan;
3. The brand, model, functions and quantity of major telecommunications equipment;
4. Technical interface and network interface points that will be used for the interconnection with other PSTN or connection with subscribers’ terminal equipment;
5. Telecommunications equipment that complies with related authorities’ national security concerns;
6. The info-communications security detection and protection plan for networks;
7. Use of the equipment complying with the info-communications security standard announced by the competent authority;
8. Other competent authority designated items that are related to the establishment of network;
Those who apply to establish a PSTN that uses telecommunications resources may provide domestic network roaming. However, said parties must fulfill their obligations as prescribed in the radio frequency plan, which is proposed in accordance with Paragraph 2 of Article 53.
The agreement in regard to the network roaming as described in the preceding paragraph shall be submitted to the competent authority for its approval 2 months prior to the implementation.
Where a station is necessary to be established for the PSTN as described in Paragraph 1, the network establishment plan thereof shall be attached with a station establishment plan.
The station establishment plan as described in the preceding paragraph shall specify the following matters:
1. Station establishment schedule;
2. Brand, model, technical specifications and quantity of controlled telecommunications radio frequency devices;
3. Frequency use plan;
4. A detailed map showing estimated radio wave coverage;
5. Handling of and alleviation of frequency interference;
6. Other matters designated by the competent authority.
Rules governing the establishment, review, use management, restrictions and other related matters shall be promulgated by the competent authority.

When applying for the establishment of a PSTN that does not use telecommunications resources, submitting an application and network establishment plan to the competent authority for its approval is required. Only upon receipt of the competent authority’s approval is the enterprise eligible to initiate the establishment thereof. The same rule shall be applied when making any addition or change to the establishment of the telecommunications network.
Where the PSTN as described in the preceding paragraph is established by a government agency or school, the competent authority may commission a central second-level agency that supervises the establishment thereof to manage related matters.
The network establishment plan as described in Paragraph 1 shall specify the following matters:
1. The region and schedule planning of the establishment;
2. Communications type, network framework and performance
3. The brand, model, functions and quantity of major telecommunications equipment;
4. Technical interface and network interface points that will be used for the interconnection with other PSTN or connection with subscribers’ terminal equipment;
5. Use of the telecommunications equipment that complies with related authorities’ national security concerns;
6. The info-communications security protection plan for networks;
7. Use of the equipment complying with the info-communications security standard announced by the competent authority;
8. Other competent authority designated items that are related to the establishment of network;

The establishment of a PSTN shall comply with the technical specifications stipulated by the competent authority. The same shall be applied to the establishment of a station.
Upon completion of the establishment of the PSTN, the establisher shall submit the self-assessment report to the competent authority to apply for an inspection. After passing the inspection held by the competent authority and receiving an approval certificate therefrom, the establisher shall then start to use the network. The same shall be applied when making any change to the established telecommunications infrastructure.
Where the PSTN that does not use telecommunications resources is established by a government agency or school, the competent authority may commission a central second-level agency that supervises the establishment thereof to carry out the inspection as described in the preceding paragraph.
The type of PSTN, testing items and methods, qualification standards and technical specifications of other requisite documents shall refer to international technical standards, and the competent authority shall make an announcement accordingly.
Rules governing the type of PSTN; inspection methods and procedures; use management; restrictions; issuance, renewal, reissuance and abolishment of approval certificate; and other related matters shall be promulgated by the competent authority.

When an established PSTN that uses telecommunications resources provides telecommunications services, it shall comply with the following terms and conditions:
1. Having mechanisms sufficiently enough to protect subscribers’ secrecy of communications;
2. Maintaining the appropriate quality of telecommunications services based on the standards set by international organizations for standardization;
3. The responsibility demarcation point is specifically defined between its telecommunications equipment and other PSTN or subscriber terminal equipment;
4. Telecommunications equipment it uses shall comply with the related authorities’ national security concerns;
5. The detection and protection functions thereof are sufficient to ensure info-communications security;
6. Offering public emergency communications services and communication priority functions;
7. Supporting the functions of providing communications records as prescribed in the Communication Security and Surveillance Act;
8. Other matters announced by the competent authority.
When an established PSTN that does not use telecommunications resources provides telecommunications services, it shall comply with the following terms and conditions:
1. Having mechanisms sufficiently protect subscribers’ secrecy of communications.
2. Maintaining the appropriate quality of telecommunications services based on the standards set by international organizations for standardization ;
3. The responsibility demarcation point is specifically defined between its telecommunications equipment and other PSTN or subscriber terminal equipment;
4. Telecommunications equipment it uses shall comply with the related authorities’ national security concerns;
5. The protection functions thereof are sufficient to ensure info-communications security;
6. Supporting the functions of providing communications records as prescribed in the Communication Security and Surveillance Act;
7. Other matters announced by the competent authority.
The network framework and performance shall comply with the preceding 2 paragraphs or the network establishment plan thereof. If not, those who have established a PSTN shall, according to the notification sent by the competent authority, make corrections within the prescribed deadline or have their use thereof restricted.

The telecommunications enterprise that has established a PSTN shall select qualified telecommunications engineers to be in charge of and supervise the construction, maintenance and application of telecommunications equipment. Rules governing the qualifications and management of telecommunications engineers shall be promulgated by the competent authority.
Telecommunications equipment connected to the PSTN shall be constructed and maintained by qualified telecommunications engineers selected by the telecommunications engineering enterprise. Apart from those that are announced by the competent authority as simple telecommunications equipment, telecommunications equipment within the building’s responsibility demarcation point shall be installed by electric appliance contractors.
Rules governing selection of telecommunications engineers; registration, revocation or abolished registration of telecommunications engineering enterprise; and management rules thereof shall be promulgated by the competent authority.
Telecommunications engineering enterprises shall join relevant association before launching the operations.

To ensure national security and public order, the competent authority may designate the PSTN, in whole or in part, as the critical telecommunications infrastructure; the standards for the designation thereof shall be announced by the competent authority.
The establisher of the critical telecommunications infrastructure as described in the preceding paragraph shall, before the deadline prescribed by the competent authority, draw up a critical telecommunications infrastructure protection plan. Said plan shall be evaluated by the competent authority before the implementation.
With respect to the evaluation as described in the preceding paragraph, the competent authority may request the enterprise to make an improvement within a prescribed deadline if an improvement is necessary.
With respect to the implementation of the protection plan as described in Paragraph 2, the competent authority may implement an audit on a regular or irregular basis. Where the status thereof fails to reach the protection plan as described in Paragraph 2, the competent authority may notify it to make an improvement within a prescribed deadline.
Rules governing the format, items, evaluation procedures, evaluation standards and audit procedures of the protection plan as described in Paragraph 2 shall be promulgated by the competent authority.
Where the critical telecommunications infrastructure will likely be infringed, the local government and police agency shall quickly take preventative or elimination measures according to the request of the establisher thereof.
Critical telecommunications infrastructure shall be in compliance with technical specifications for info-communications security evaluation. Otherwise, the establisher thereof shall make an improvement before the deadline prescribed by the competent authority.
The technical specifications as described in the preceding paragraph shall be announced by the competent authority.

To ensure the info-communications security and performance of public telecommunications network, the competent authority may examine the PSTN on a regular or irregular basis. Where it is related to national security, the competent authority may impose restrictions on the purchase and use of specific telecommunications equipment.
Where the PSTN as described in the preceding paragraph is established by a government agency or school, the competent authority may commission a central second-level agency that supervises the establishment thereof to carry out the examination as described in the preceding paragraph.
Rules governing the procedures, standards and methods of the examination as described in the preceding 2 paragraphs, and other related matters shall be promulgated by the competent authority.

The telecommunications terminal equipment that connects to the PSTN shall comply with technical specifications and shall pass examination before production or import. The technical specifications thereof shall be announced by the competent authority.
The technical specifications as described in the preceding paragraph shall ensure the following matters:
1. Electrical safety tolerance;
2. Electromagnetic compatibility and the harmonious and effective sharing of other frequencies;
3. Telecommunications interface compatibility with the public telecommunications network.
Rules governing the inspection methods and procedures for telecommunications terminal equipment; the issuance, renewal, reissuance and abolishment of approval certificate; the labeling, printing and use of approval level; and the supervision and management of inspection activities shall be promulgated by the competent authority.

For telecommunications enterprises, terrestrial radio businesses and terrestrial television businesses whose registration or operation license is revoked or abolished by the competent authority or the operation license thereof expires, the competent authority may simultaneously revoke or abolish its network establishment approval and compliance certification of their PSTN in whole or in part.

Those who have established PSTN may use or access public lands or buildings to establish telecommunications infrastructure. The management agency (organization) of public land or buildings shall not reject it without justifiable reasons. Those who suffer from a loss deriving from their use of land or buildings shall have said losses compensated.
When using or accessing rivers, ditches, bridges, embankments, roads, public forests or other public-use lands and public buildings to establish a station, those who have established a PSTN that uses telecommunications resources shall receive approval from the management agency (organization) thereof. The management agency (organization) shall not reject the proposal without justifiable reasons, whereas schools below the senior high school level may reject the proposal. Where the management agency (organization) has approved the establishment, the competent authority shall assist other establishers of PSTN in putting the establishment into practice.
When the establishers of a PSTN take action to establish a pipeline infrastructure, the central and local agencies shall provide assistance thereto.
The Executive Yuan shall examine the performance of the central and regional agencies and state-owned enterprises with respect to their performance in offering lands and buildings possessed or managed thereby for the establishment of telecommunications infrastructure. Results of said examination shall also be published on an annual basis.
Where the telecommunications infrastructure of a PSTN cannot be established without passing through private lands or buildings or can be established with an enormous amount of money, the establishment may be made by passing through private lands or buildings on the premise of selecting the least harmful location and manner. Also, if any such use of land or buildings causes any damage, then appropriate compensation shall be made.
With respect to the establishment of the telecommunications infrastructure as described in the preceding paragraph, the land or building owner, occupant or manager shall be notified 30 days prior to the construction
Those who are against the circumstances mentioned in Paragraph 5 and the preceding paragraph may request the mediation committee within the jurisdiction thereof to mediate or file a complaint for civil action.
Where the construction of telecommunications infrastructure of the PSTN has to pass through a private land or building in circumstances other than those referred to in Paragraph 5, such construction should be conducted in accordance with the relevant laws.
After the establishment of the telecommunications infrastructure, if the condition has changed or if the infrastructure must be relocated for some reason, the land and/or building owner, occupant or manager may request the establisher to make a change or relocate the infrastructure.
Where the telecommunications infrastructure is damaged due to the construction or renovation of buildings, roads, ditches and buried pipelines or other accidents, the person who has caused such damage shall be liable for the compensation.
Rules governing the conditions and operating procedures of requested relocation as described in Paragraph 9; calculation and sharing of relocating expenses; and liabilities derived from the damage and compensation standards shall be promulgated by the competent authority.
The damage liabilities and compensation calculation standards as described in the preceding paragraph shall not affect a victim’s right to file a claim.
The PSTN shall not be checked, expropriated or seized unless in accordance with the laws.

To obtain lands required for the establishment of a switchboard center or station, those who have established a PSTN may, if necessary, have the competent authority negotiate with the urban planning agency to make a rapid amendment in accordance with Article 27 of Urban Planning Law. Where such change for the use of land is related to the land outside the urban area, the amendment shall be made in accordance with Regional Plan Act.
Before drafting the plan of changing the type of public facility land on which a switchboard center has been established or enforcing the relocation of the existing switchboard center, the local government shall negotiate with the competent authority concerning the feasibility thereof.
For an establisher of a PSTN that uses telecommunications resources who desires to establish a station in an apartment building, the approval from the apartment building management committee shall be obtained. Provided that there is no management committee, the permission of each owner shall be obtained.

The establisher of a PSTN that uses telecommunications resources may, after notifying the property owner, adopt necessary measures on plants that impede or are likely to impede the survey, installation or maintenance of telecommunications lines. In case of emergency, prior notification is not required.
With respect to the necessary measures as described in the preceding paragraph, the enterprise shall select the least harmful location and manner; and compensation shall be made in the forms of an agreement.

When constructing a building, the builder shall install indoor and outdoor telecommunications equipment according to the regulations and shall allocate a telecommunications room and other spaces for the installation of telecommunications equipment.
The building as described in the preceding paragraph shall be announced by the competent authority.
Where the existing building lacks sufficient telecommunications equipment or space for the installation thereof, resulting in the failure of fulfilling the building’s demand for telecommunications services, the owner shall negotiate with the telecommunications enterprise that will provide the necessary telecommunications services to increase the space thereof.
The telecommunications equipment and space established specifically for the use of said building, in accordance with the requirements set forth in the preceding two paragraphs, shall be connected to and used by the service operators at no charge based on the needs of the telecommunications service of the users in said building.
A telecommunications enterprise, before using the telecommunications equipment installed in the telecommunications room of the building, shall obtain prior consent of the owner of the building to provide telecommunications services for subscribers outside the building. The telecommunications enterprise shall negotiate with the owner regarding appropriate compensation.
The building as described in Paragraph 2 shall be installed with indoor and outdoor telecommunications equipment and a space therefor. Rules governing the space thereof; use management; determination of responsibility demarcation point; restrictive scope of community buildings; and other related matters shall be promulgated by the competent authority.
Telecommunications equipment installed inside and outside the building as described in Paragraph 2 shall comply with technical standards, which shall be announced by the competent authority.
The design of the building’s telecommunications equipment and space for related installation shall be reviewed by the competent authority before the launch of the construction project and be reported to the competent authority for inspection upon completion of the project. Only after passing said inspection shall the telecommunications enterprise start to use it.

The dedicated telecommunications network shall not be set up without approval from the competent authority. The same rule shall be applied when making any addition or change to the establishment of the telecommunications network.
The dedicated telecommunications network as described in the preceding paragraph refers to 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.
For the dedicated telecommunications network that is established by the government agency (organization), the competent authority may commission a central agency that supervises the establisher thereof to manage related matters. The same rule shall be applied to other dedicated telecommunications networks that must have its management commissioned.
Upon receipt of approval from the competent authority, foreign nationals may establish a dedicated telecommunications network.
The dedicated telecommunications network shall not be connected to the PSTN or be used for purposes other than the set purpose. However, this shall not apply to any of the following circumstances:
1. Emergency communications for traffic safety, as it relates to distress signals from land, sea, or air transportation vehicles and aerial weather reports;
2. Emergency communications that are deemed necessary to maintain national security, public order or public interests;
3. Communications in response to natural disasters, incidents or emergency hazards for rescue operations;
4. Other circumstances as approved by the competent authority.
To facilitate technology development and service innovation, dedicated telecommunications networks that are primarily used for experimental development may, upon receipt of the competent authority’s approval as a special project, be offered to other people for their use and be charged with fees.
The establishment, inspection, use management, restricted use, commissioned management and other matters related to dedicated telecommunications network shall be promulgated by the competent authority.

Amateur radio operators shall pass the test of the competent authority and receive an amateur radio operator license therefrom before applying for the establishment and operation of an amateur radio station. However, short-term amateur radio operations shall be excluded therefrom.
The qualifications and level of amateur radio operators; qualification test; call sign management; establishment and inspection of the station; issuance, renewal, reissuance and abolishment of personnel and station licenses; use management and restrictions; management of amateur radio short-term operations; and other related matters shall be promulgated by the competent authority.