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;