To apply for operation of a fixed network telecommunication business, an applicant must submit an application form, business plan, and other relevant documents to the competent authority for approval.
The business plan as referred to in the preceding Paragraph shall include the following information:
1. Scope of business.
2. Operation area.
3. Type of communications.
4. General description of telecommunications equipment.
5. Financial structure.
6. Technological capability and development plan.
7. Fee schedule and calculation method.
8. Personnel and organization structure.
9. Scheduled date for commencement of operation.
10. Other information required by the instructions for application.
The format for various application documents as referred to in Paragraph 1 and the headings and details of the required information relating thereto will be specified in instructions for applications for various categories of fixed network telecommunications businesses.
In the case where the submitted documents are incomplete or the contents thereof are incomplete, the competent authority shall notify the applicant to undertake corrective measures within a prescribed period of time; if the applicant fails to undertake such matters satisfactorily within the prescribed time limit or the correction remains incomplete, the application shall be dismissed.
No correction shall be allowed for failure to submit the application before the time limit prescribed in the announcement promulgated in accordance with Paragraph 2, Article 5 or, for failure to submit the application form or business plan, no correction shall be allowed and the application shall be dismissed accordingly.

An applicant for local network business, while adding any new city or county for operation, shall be subject to the preceding Article to apply the same for approval. An applicant for a local network business, pursuant to Paragraph 4, Article 4-2, may expand its operation area by units of cable radio and television operating area promulgated by the competent authority.

To apply for operation of a fixed network telecommunications business, the applicable minimum paid-in capital is, by application time, is set forth below:
1. Up until June 30, 2004:
(1) Integrated network business: 21 Billion New Taiwan Dollars.
(2) International submarine cable leased-circuit business: 420 Million New Taiwan Dollars.
2. From July 1, 2004 to January 31, 2008:
(1) Integrated network business: 8.4 Billion New Taiwan Dollars.
(2) Local network business: the product of 6.3 Billion New Taiwan Dollars and local network operation weight.
(3) Long distance network business: 1.05 Billion New Taiwan Dollars.
(4) International network business: 1.05 Billion New Taiwan Dollars.
(5) International submarine cable leased-circuit business: 420 Million New Taiwan Dollars.
3. From February 1, 2008:
(1) Integrated network business: 6.4 Billion New Taiwan Dollars.
(2) Local network business: the product of 4.8 Billion New Taiwan Dollars and local network operation weight.
(3) Long distance network business: 800 Million New Taiwan Dollars.
(4) International network business: 800 Million New Taiwan Dollars.
(5) International submarine cable leased-circuit business: 320 Million New Taiwan Dollars.
4. From July 1, 2013: international submarine cable leased-circuit business: 300 Million New Taiwan Dollars.
By June 30, 2004, the applicant shall subscribe the minimum paid-in capital as referred to in the preceding Paragraph through the following methods:
1. An applicant for integrated network business shall open a special capital account with a domestic bank in its own name and deposit Ten Billion New Taiwan Dollars therein before submission of the application and shall submit a copy of the deposit agreement as well as a written document issued by the depository bank verifying the deposit together with the application.
2. The applicant shall deposit an additional Ten Billion New Taiwan Dollars in the special capital account set forth in the preceding Item within the time limit specified in Paragraph 1, Article 16 and shall submit a copy of the deposit agreement as well as a written document issued by the depository bank verifying the deposit.
3. The minimum paid-in capital set forth in Paragraph 1 shall be paid in full within the time limit specified in Paragraph 1, Article 18 and the applicant shall provide the certificate of Company Registration as proof.
The amount of deposit as referred to in Item 1 and Item 2 of the preceding Paragraph may be counted in New Taiwan Dollar, equivalent foreign currency or a combination of the two. In case the amount is deposited in foreign currency, such amount shall be converted into New Taiwan Dollars by using the exchange rate at the date of deposit.
The deposit kept in the special capital account as referred to in Item 1 and Item 2 of Paragraph 2 shall not be disbursed before a report has been made by the applicant to the competent authority for completion of incorporation or amendment registration; provided that subject to the resolutions adopt at the applicant's promoters meeting and the board meeting, the applicant shall be allowed to use the deposit for acquisition of fixed assets necessary for business operation or for payment of start-up costs after obtaining the Establishment Approval and approved by the competent authority.
The deposit kept in the special capital account as referred to in Item 1 and Item 2 of Paragraph 2 may be disposed of by the applicant upon receipt of the order of rejection from the competent authority, in the case that the application is not approved.
After June 30, 2004, an applicant for an integrated network business shall subscribe Ten Billion and Sixty Hundred Million New Taiwan Dollars for the minimum paid-in capital, which is not applied to Item 1 of Paragraph 1 and Paragraphs 2 to 5 regarding the regulations for subscribing the minimum paid-in capital.
For an applicant who simultaneously engages in other Type I telecommunications businesses or the cable radio and/or television business, its minimum paid-in capital shall be separately calculated upon approval for establishment, if such other businesses are subject to the minimum paid-in capital restriction.

Operators with a minimum paid-in capitalization at TWD200 Million and with 200 or more shareholders shall apply for an open share issue proceeding with competent government securities authorities within a three-month period from the following day of the initial inception or new share issue modification registration.
An operator that moves to reduce the capitalization as per shareholder’s resolution or enact in conducts as stipulated under paragraph 1, Article 185 of the Corporate Law is required to declare a voluntary filing with competent government authorities within a twenty-day period from the following day a resolution is voted through the shareholders’ meeting.

The "domestic bank" referred to in Paragraph 2, Article 8 shall include:
1. Domestic banks established in accordance with the Banking Law; and
2. Foreign banks as defined in Article 116 of the Banking Law.
The deposit agreement as referred to in Paragraph 2, Article 8 shall be agreed to by and between the applicant and the depository bank on the following provisions:
The deposit agreement shall not be canceled, terminated or subject to any pledge before the applicant may disburse or dispose of the deposit in accordance with the relevant regulations.
The depository bank may not exercise the right to set-off before the applicant can disburse or dispose of the deposit in accordance with the relevant regulations.
In the event that the applicant disburses or disposes of the deposit, the depository bank shall allow such disbursement or disposal only if any of the following documents is furnished:
(1) An official letter issued by the competent authority to verify the report made by the applicant for completion of incorporation or amendment registration, and to approves any disbursement of the capital by the applicant.
(2) An official letter issued by the competent authority to reject the application made by the applicant.
(3) An official letter issued by the competent authority to otherwise approve any disbursement or disposal of the deposit in the special capital account by the applicant.

To apply for operation of a fixed network telecommunications business, an applicant shall be limited to a company limited by shares incorporated in accordance with the Company Law; its chairman shall have the nationality of the Republic of China, and the total number of the shares held by foreign nationals shall comply with the restrictions provided in the latter part of Paragraph 3, Article 12 of the Telecommunications Act.

The same applicant may not apply for two or more petition cases of the same type of fixed communications operations. Different applicants who fall under any one of the following circumstances shall be deemed as the same applicant:
1. The application holds the shares of other applicants with voting rights that exceed over one half of the total shares of other applicants’ shares issued with voting rights.
2. The applicant and other applicants share over one half of the same directors.
3. Over one half of the applicant and other applicants’ total shares issued with voting rights are held or invested by the same shareholders.
4. Different applicants who are the subsidiary companies of a third party.
5. The controlling companies of different applicants are in a controlling or subsidiary relationship.
The controlling or subsidiary relationship referred in the preceding Paragraph 4 and Paragraph 5 pertains to the relationships stated in the preceding Paragraph 1, Paragraph 2 or Paragraph 3.
The calculation method for the equity share as stated in the preceding Paragraph 2 shall be implemented as per stipulations set forth under paragraph 11, Article 369 of the Corporate Law.
In the instance where any given shareholders or subscribers of an applicant concurrently holds the share of other applicants of the same type of fixed telecommunications business, said shareholder or subscribers, except one of the applicant’s shareholding percentage is unrestricted, and all other applicants’ shareholding percentage may not exceed ten percent.
Of an applicant who breaches stipulations set forth under paragraph 1 or paragraph 5, the application case may not be retroactively corrected, and shall not be accepted.
Stipulations set forth under the preceding paragraph 1 and paragraph 5 will also apply to the circumstances where an applicant has been approved for launching and prior to securing the concession license.
The stipulations provided under this article also apply when the applicant and a general networking service operator fall under any one of the circumstances as stipulated under paragraph 2.
The stipulations provided under this article do not apply to those applying to run the electrical circuit leasing service or offering the inner city networking service in different central-ruled municipalities, or counties (municipalities).

In the case when an applicant withdraws its application within ten days following submission, the review fee shall be reimbursed without interest within a seven-day period from the following day the withdrawal application is delivered.
When the application submitted by an applicant is declined as per stipulations provided under Paragraph 5, Article 7, the review fee is to be reimbursed without interest within a seven-day period from the following day the declined application ruling is delivered.
When an applicant’s application submitted is free of any circumstances described in the preceding two paragraphs but falls under any one of the following circumstances, the review fee and the interest will not be reimbursed:
1. The application has been declined as per stipulations set forth under Paragraph 4 or Paragraph 13 of Article 7.
2. The application is in violation of stipulations set forth under Article 11.

To be eligible to apply for the operation of a domestic local and long-distance land cable leased-circuit business, an applicant shall be either one of the following:
1. A company that is limited by shares under the Company Act and has legally installed a fixed line transmission network by the time of application.
2. A company that is limited by shares under the Company Act and has obtained authorization to use a fixed line transmission network installed as per Item 1.
A leased-circuit business as specified in Paragraph 2 shall submit the required documentation to prove the fixed line transmission network has been set up in accordance with law.
To apply for the operation of a domestic local and long-distance land cable leased-circuit business, an applicant shall, by the time of application, specify the actual deployment of its wire transmission network already installed, the plan for the division of the existing transmission network, transmission equipment, and shall provide a network structure diagram.
In the case when the plan for the division of the existing transmission network set forth in the preceding Paragraph involves the change of dedicated telecommunications, it shall be made in accordance with the Regulations Governing the Installation and Use of Dedicated Telecommunications.
The transmission equipment leased by a domestic local and long-distance land cable leased-circuit business shall comply with the technical specifications promulgated by the competent authority.
The scope of operation of a domestic local and long-distance land cable, leased-circuit business stipulated in Paragraph 1 shall not be beyond its legitimately approved wire transmission network. Violators shall be required by the competent authority to undertake corrective measures within a prescribed period of time limit; failure to undertake such measures within the prescribed period shall result in punitive measures in accordance with the relevant provisions of the Telecommunications Act.

An applicant for international submarine cable leased-circuit business shall acquire the certificate of authorization for connection and use from the international submarine cable system owner or manager prior to the application.
The international submarine cable system aforementioned in the preceding Paragraph shall be limited to systems constructed after March 1, 2000.
An applicant for international submarine cable leased-circuit business shall install its international submarine cable landing to Taiwan and its landing station within the period of its network construction permit. The landing route permit shall be subject to the relevant provisions in the Regulations of Permission on Delineation of Course for Laying, Maintaining, or Modifying Submarine Cables or Pipelines on the Continental Shelf of the Republic of China.
The inland gateway set by international submarine cable leased-circuit business operator should have remote backup mechanisms. Only one inland gateway may be set to correspond to international submarine cable landing station in addition to the one located at the same location of the international submarine cable landing station. However, the competent authority may choose appropriate locations to set the second inland gateway for redundancy.
The international submarine cable leased-circuit business operator may deploy its own inland backhaul or negotiate a lease of inland backhaul to connect the landing station to the inland gateway from integrated network business operators or domestic local and long-distance land cable, leased-circuit businesses.
The international submarine cable leased-circuit business operator shall not use its inland backhaul to engage in other business than international submarine cable leased-circuit business.

A cable radio and television system operator, which applies for simultaneous operation of local network business, shall specify the local transmission equipment and network structure diagram to be installed, the plan for division of existing transmission network, and the division between the two businesses, in the business plan. This also applies to local network business operators that apply for simultaneous operation of a cable radio and television system.

In the case that any of the following circumstances occurs in the process of applying for operation of a fixed network telecommunications business, the competent authority shall notify the applicant and prescribe a period of time for the applicant to undertake corrective measures; if the applicant fails to correct within the prescribed period or if the correction is deemed incomplete, the application shall be dismissed.
1. Failing to pay the review fee as required by the relevant regulations.
2. Violating Article 8.
3. Violating Article 9.
4. Violating Article 10.
5. Violating Paragraph 1and 2, Article 12.
After the applicant has been approved for establishment, if the circumstances prescribed in Items 2 and 3 of the preceding Paragraph occur, the approval shall be abolished.

Except as otherwise stipulated in these Regulations, the review of applications for concession shall be conducted based on the information set forth in the business plan. Depending upon the categories of businesses, the competent authority may separately enact and promulgate the reviewed items and criteria.

As soon as the applications for concession have been reviewed and approved, the competent authority shall make a public announcement. Except in the case of the applications for a domestic local and long-distance land cable leased-circuit business pursuant to Article 12 where the competent authority shall directly issue the approval for establishment, the competent authority shall issue the approval for establishment for integrated network business applications after the additional Ten Billion New Taiwan Dollars have been deposited in the special capital account in accordance with Article 8, Item 2 of Paragraph 2 and the performance bonds have been rendered in accordance with Article 16 and Paragraph 1 of Article 17.
For applications before June 30, 2004, except as otherwise provided in these Regulations, the competent authority shall abolish its approval in the case where an applicant fails to render the performance bond in accordance with the relevant regulations.
The competent authority shall issue the approval for establishment for international submarine cable leased-circuit business applications, local network business applications, long distance network business applications, or International network business applications after the performance bonds have been rendered in accordance with Article 16 and Paragraph 1 of Article 17. The competent authority shall abolish its approval in the case where an applicant for an international cable circuit leasing business fails to render the performance bond in accordance with the relevant regulations.
After June 30, 2004, the competent authority shall issue the approval for establishment for integrated network business applications after the performance bonds have been rendered in accordance with Article 16 and Item 2, 3 of Article 17, which is not applied to Paragraph 1 regarding the regulations for rendering the performance bonds and issuing the approval for establishment.

Within sixty days from the day of receiving the approval of its application for concession, an applicant shall render the performance bond to the competent authority.
The performance bond as referred to in the preceding Paragraph shall be made in any of the following methods:
1. Deposit directly made to the account designated by the competent authority.
2. A letter of guarantee guaranteed by a domestic bank.
3. A negotiable certificate of deposit pledged with the competent authority as pledgee.
In the case where a letter of guarantee guaranteed by a domestic bank is provided to render the performance bond, the guaranteed period shall begin from the date when the performance bond is rendered till three months after the expiry date of the effective period of the approval for establishment.
In the case where an applicant applies to extend the effective period of the approval for establishment, the extension of the performance bond as referred to in the preceding Paragraph shall be made accordingly.

The amounts of the performance bond for application of various categories of fixed network telecommunications business are, by application time, set forth below:
1. Up until June 30, 2004:
(1) Integrated network business: 2.1 Billion New Taiwan Dollars.
(2) International submarine cable leased-circuit business: 42 Million New Taiwan Dollars.
2. From July 1, 2004 to January 31, 2008:
(1) Integrated network business: 840 Million New Taiwan Dollars.
(2) Local network business: the product of 630 Million New Taiwan Dollars and local network operation weight.
(3) Long distance network business: 105 Million New Taiwan Dollars.
(4) International network business: 105 Million New Taiwan Dollars.
(5) International submarine cable leased-circuit business: 42 Million New Taiwan Dollars.
3. From February 1, 2008:
(1) Integrated network business: 640 Million New Taiwan Dollars.
(2) Local network business: the product of 480 Million New Taiwan Dollars and local network operation weight.
(3) Long distance network business: 80 Million New Taiwan Dollars.
(4) International network business: 80 Million New Taiwan Dollars.
(5) International submarine cable leased-circuit business: 32 Million New Taiwan Dollars.
4. From July 1, 2013: international submarine cable leased-circuit business: 30 Million New Taiwan Dollars.

After an applicant obtains the approval for establishment for operation of a fixed network telecommunications business, it shall complete company modification registration within six months. If the applicant fails to complete the registration according to the relevant regulations before the time limit, it may state the reasons and apply to the competent authority for an extension prior to the lapse of the time limit. The extension shall not be longer than six months and shall only be made once. In the case of the lapse of the time limit, the competent authority may abolish the approval for establishment, and forfeit the performance bond or notify the bank providing guarantee to honor its performance guarantee.
In the case where an applicant completes the company modification registration in accordance with Paragraph 1, its minimum paid-in capital shall be in compliance with the provisions set forth in Paragraphs 1 and 6, Article 8.

The effective period of the approval for establishment for various categories of the fixed network telecommunications businesses is as follows:
1. Integrated network business: seven years.
2. Local network business: four years.
3. Long distance network Business: four years.
4. International network business: four years.
5. Domestic local and long distance land cable leased-circuit business: two years.
6. International submarine cable leased-circuit business: four years.
After June 30, 2004, the effective period of the approval for establishment for integrated network business is five years, which is not applied to Item 1 of Paragraph 1.
In the case where an applicant fails to complete the establishment and to obtain the concession license according to the relevant regulations before the time limit set forth in Paragraphs 1 and 2, it shall provide the reasons and apply to the competent authority for an extension prior to the lapse of the time limit. The extension shall not be longer than one year and shall only be made once. In the case of the lapse of the time limit, the competent authority may abolish the approval for establishment, and forfeit the performance bond and its interest or notify the bank providing guarantee to honor its performance guarantee.

An applicant shall, after the approval for establishment has been obtained and the company modification registration has been completed, submit the documents set forth in the relevant instructions for application and the certificate of a negotiation conclusion with the communication supervisory executive agency to install the communication supervisory system or equipment, and apply to the competent authority for a network construction permit.
The effective period of a network construction permit for various categories of fixed network telecommunications business is as follows:
1. Integrated network business: six years.
2. Local network business: three years.
3. Long distance network business: three years.
4. International network business: three years.
5. International submarine cable leased-circuit business: three years.
After June 30, 2004, the effective period of a network construction permit for integrated network business is four years, which is not applied to Item 1 of Paragraph 2.
The effective period of a network construction permit for various categories of fixed network telecommunications business shall not be longer than the effective period of the approval for establishment; in case there is any change of the original business plan, it shall be made in accordance with the provisions set forth in Paragraph 2, Article 32.
An operator that wishes to construct an additional network that is not included in construction plan within the effective period of a network construction permit, as stated in its business plan, shall provide a detailed network construction plan and apply to the competent authority for an approval.
Without applying for a Network Construction Permit or approval according to the relevant regulations, it shall not be permissible to install a fixed telecommunications network in part or in whole.
In the case where there is a need for an integrated network business applicant to construct microwave links or fixed wireless access equipment, the applicant may apply to the competent authority for approval according to the relevant regulations.
The competent government authorities, when rendering an approval or overrule decision on networking infrastructure plan, shall have the decision sought in consultation with relevant governmental agencies for national security concerns.

Upon receipt of the Network construction permit, an applicant shall construct its fixed telecommunications network according to construction plan within the effective period of a network construction permit as stated in its business plan. If the applicant fails to complete the construction before the effective period of the network construction permit, it shall state the reasons and apply to the competent authority for an extension prior to the lapse of the time limit. The extension shall not be longer than one year and can only be made once. In the case where the time limit has lapsed, the competent authority may abolish the establishment approval and forfeit the performance bond or notify the bank providing guarantee to honor its performance guarantee. If the applicant has obtained a license, the concession may forthwith be abolished accordingly.
In the case where the application for an extension is due to a force majeure event, the extension may be made corresponding to the delay of such events and shall not be subject to the time limit set forth in the preceding Paragraph.
In the case where an extension of the network construction permit according to the preceding two Paragraphs goes beyond the effective period of the Establishment Approval, the effective period of the approval for establishment shall forthwith be extended accordingly.

To apply for operation of integrated network business, an applicant shall, within the effective period of the network construction permit, construct by itself a local network with a system capacity of subscribers' lines, subscribers' ports or a combination of both. The capacity should, by its application time, meet the following requirements:
1. Up until June 30, 2004: no less than 1 Million subscriber lines.
2. From July 1, 2004 to January 31, 2008: no less than 400 thousand subscriber lines.
3. From February 1, 2008: no less than 300 thousand subscriber lines.
The construction of lines and ports as referred to in Paragraph 1 shall include exchange equipment and subscribers' loops for connecting customer premise equipment（CPE）. Subscribers' loops shall have the two-way transmission function and be built to roadside curbs or to the home. For fixed wireless subscribers' loops, they shall be built to the base stations or the distribution frame of the buildings.
In the case where the construction of fixed wireless subscribers' loops as planned by an applicant as referred to in Paragraph 1 in construction plan as stated its business plan exceeds two hundred thousand lines, only two hundred thousand lines will be counted for calculation of the capacity.
An applicant set forth in Paragraph 1 shall specify the scale of its network construction, the plan for construction of lines and ports, the applied technologies, and the method for calculation of system capacity in its business plan.

To apply for operation of Local Network Business, an applicant shall, within the effective period of the Network Construction Permit, construct by itself a local network with a system capacity of subscribers' lines, subscribers' ports or a combination of both. The capacity should, by its application time, meet the following requirements:
1. From July 1, 2004 to January 31, 2008: no less than four-hundred thousand (400,000) subscriber lines and the local network operation weight.
2. From February 1, 2008: no less than three-hundred thousand (300,000) subscriber lines and the local network operation weight.
The construction of lines and ports as referred to in Paragraph 1 shall include exchange equipment and subscribers' loops for connecting customer premise equipment（CPE）. Subscribers' loops shall have the two-way transmission function and be built to roadside curbs or to the home. For fixed wireless subscribers' loops, they shall be built to the base stations or the distribution frame of the buildings.
The applicant or operator that operates the inner city networking operation for two business districts or more, subject to approval by competent government authorities, may collectively install the exchangers in a given business district or develop the interconnecting circuit between the cross-district inner city network on its own. However, the applicant or operator may not operate in the long-distance networking operation.
In the instance where the foresaid approved developing circuit be of the self-developed fiber optic, copper cable, microwave chain, or satellite chain, the development shall be implemented in accordance with stipulations set by relevant laws and regulations.
An applicant set forth in Paragraph 1 shall specify the scale of its network construction, the plan for construction of lines and ports, the applied technologies, and the method for calculation of system capacity in its business plan.
An applicant of local network business, pursuant to Paragraph 4, Article 4-2, may have its existing cable radio and television operating system subscriber loops recognized as self-constructing facilities set forth in Paragraph 1 and 2. The facilities shall meet the technical requirements promulgated by the competent authority.

To apply for operation of a long distance network business, an applicant shall, within the effective period of the network construction permit, construct a fiber optical backbone network connecting Grand Taipei Region (including Taipei City, New Taipei City, and Keelung City), Taichung City and Kaohsiung City.
An applicant set forth in Paragraph 1 shall specify the scale of its network construction in its business plan.

The applicant for international network business, within the period of its network construction permit, shall install its international gateway exchange facilities and international submarine cable landing to Taiwan（including landing station）or fixed earth station.
The landing route permit shall be subject to the relevant provisions in the Regulations of Permission on Delineation of Course for Laying, Maintaining, or Modifying Submarine Cables or Pipelines on the Continental Shelf of the Republic of China.
An international network business provider shall only install one inland gateway in addition to the one located at the same location of the international submarine cable landing station.
An international network business operator may deploy its own inland backhaul or negotiate a lease of inland backhaul to connect the landing station to the inland gateway from integrated network business operators or domestic local and long distance land cable leased-circuit business operators.
The installment of fixed earth station set forth in Paragraph 1 shall be pursuant to the related rules of the Administrative Regulations on Satellite Communication Services.
An applicant set forth in Paragraph 1 shall specify the scale of its network construction in its business plan, and its minimum authorization bandwidth of international submarine cable shall be at least 5 Gbps (Giga bits per second) of full circuit.
An applicant may obtain international bandwidth by two means: one is to install submarine cable by itself and the other is to purchase IRU（Indefeasible Right of Use）.

As soon as the applicant for integrated network business has completed part of its self-constructed local network as set forth in Paragraph 1 of Article 22, with the network scale of a system capacity (subscribers' lines, subscribers' ports or a combination of both),meets the requirement set forth in Paragraph 2, and the same has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a concession license:
1. Application form for a concession license.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the fixed telecommunications network.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the operator and users.
The amount of self-constructed subscribers' lines prerequisite to apply for a concession license mentioned in Paragraph 1 is, by its application time, set forth below:
1. Up until June 30, 2004: 150 thousand (150,000) subscriber lines.
2. From July 1, 2004 to January 31, 2008: sixty thousand (60,000) subscriber lines.
3. From February 1, 2008: forty-five thousand (45,000) subscriber lines.
As regards to the examination as referred to in Paragraph 1, and Article 27, the items for inspection and the criteria for certification shall be promulgated by the competent authority.

An applicant for a domestic local and long distance land cable leased-circuit business shall, within the effective period of the approval for establishment, complete the division of the leased portion of its network technically from its existing transmission network after completion of the company amendment registration. After the leased portion of its network has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a concession license:
1. Application form for a concession license.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the domestic local and long distance land cable leased-circuit.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the operator and users.
As regards to the examination as referred to in preceding Paragraph, the items for inspection and the criteria for certification shall be promulgated by the competent authority.

If an applicant for international submarine cable leased-circuit business, within the effective period of the approval for establishment has completed the construction its international submarine cable landing to Taiwan and landing station which are set forth in Paragraph 3, Article 12-1 and it has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a concession license:
1. Application form for a concession license.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the international submarine cable leased-circuit.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the operator and users.
As regards to the examination as referred to in preceding Paragraph, the items for inspection and the criteria for certification shall be promulgated by the competent authority

As soon as the Local Network Business applicant has completed its self-constructed local network with the network scale of no less than the product of a system capacity (subscribers' lines, subscribers' ports or a combination of both, listed in Paragraph 2) and Local Network Operation Weight, and the same has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a Concession License:
1. Application form for a Concession License.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the local network.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the operator and users.
The amount of self-constructed subscribers' lines as a product factor prerequisite to apply for a concession license mentioned in preceding Paragraph is, by its application time, set forth below:
1. From July 1, 2004 to January 31, 2008: sixty thousand (60,000) subscriber lines.
2. From February 1, 2008: forty-five thousand (45,000) subscriber lines.
As regards to the examination as referred to in Paragraph 1, the items for inspection and the criteria for certification shall be promulgated by the competent authority

If an applicant for a long distance network business, within the effective period of the approval for establishment, has completed the fiber optical backbone network which is set forth in Paragraph 1, Article 22 and it has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a concession license:
1. Application form for a concession license.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the long distance network.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the Operator and users.
As regards to the examination as referred to in preceding Paragraph, the items for inspection and the criteria for certification shall be promulgated by the competent authority

If an applicant for an international network business has international bandwidth of at least 5 Gbps (Giga bits per second), and has completed the constructions set forth in Paragraph 1, Article 12-3, and it has been examined and certified by the competent authority, the applicant may provide the following documents to apply to the competent authority for a concession license:
1. Application form for a concession license.
2. A copy of the approval for establishment.
3. A copy of the certificate of company registration.
4. A document evidencing the examination and certification of the international network.
5. A document evidencing the approval or notification of the tariffs by the competent authority.
6. A document evidencing the approval of the code of practices by the competent authority.
7. A copy of the competent authority's approval of a sample of the service contract between the operator and users.
As regards to the examination as referred to in preceding Paragraph, the items for inspection and the criteria for certification shall be promulgated by the competent authority

A concession license shall specify the following particulars:
1.The name of the operator, its representative, and its place of business.
2.Category of business
3.Total capital and paid-in capital
4.Operation area
5.Effective period
6.Issue date.

An operator shall commence its business operation within six months after the date of which a concession license is obtained. In the case of the lapse of the time limit, the competent authority shall abolish the concession, and forfeit the performance bond and its interest or the competent authority may notify the bank providing guarantee to honor its performance guarantee. In the case where the effective period of the approval for establishment has not expired, the approval for establishment shall forthwith be abolished accordingly.

The effective period of the concession license of fixed network telecommunications business is as follows:
1. Twenty-five years for consolidated network business.
2. Twenty-five years for local network business.
3. Twenty years for long distance network business.
4. Twenty years for international network business.
5. Fifteen years for domestic local and long distance land cable leased-circuit business.
6. Fifteen years for international submarine cable leased-circuit business.
An operator that wishes to continue its operation shall, within three months beginning from nine months prior to the expiration date of its concession license as set forth in Paragraph 1, apply to the competent authority for renewal of its concession license according to the relevant regulations. The provisions with respect to such review and approval shall be promulgated by the competent authority.

The performance bond rendered by an integrated network business applicant or a local network business applicant shall be returned in two stages according to the ensuing regulations:
1. During the effective period of its network construction permit, as soon as twenty-five percent (25%) of the total construction as stated in the construction plan of its business plan has been completed and the same has been examined and certified by the competent authority, the operator may request for a return of fifty percent (50%) of the performance bond without interest, or request for a notice to the bank providing guarantee for a release of the guaranteed liability equivalent to fifty percents (50%) of the performance bond.
2. During the effective period of its network construction permit, as soon as the total network construction has been a hundred percent (100%) completed as stated in the construction plan of its business plan and the same has been examined and certified by the competent authority, the operator may request for return of the remaining fifty percent (50%) of the performance bond without interest, or request for a notice to the bank providing guarantee for a release of the guaranteed liability equivalent to the remaining fifty percent (50%) of the performance bond.
For international submarine cable leased-circuit business, long distance network business, or international network business, within the period of the construction permit, the applicant may request return of the performance bond, or request a notice to the bank providing a guarantee for release of the guaranteed liability, upon receiving the operating license pursuant to Article 23-2, Article 23-4 or Article 23-5.

In the case where an applicant or an operator violates the provisions of the relevant laws and regulations, and thereby causing revocation or abolishment of its approval of establishment or concession by the competent authority, except as otherwise provided in Articles 18, 19, 21 and 25, the performance bond and its interest shall be forfeited or the competent authority shall notify the bank providing guarantee to honor its performance guarantee.

In the case of loss or damage of the approval of establishment, the network construction permit, or the concession license, an application setting forth the reasons shall be made to the competent authority for a replacement. In the case of any change of the particulars stated therein, an application shall be made to the competent authority for approval for a replacement.

The approval of establishment, the network construction permit, and the concession license shall not be assigned, leased or sublet.

Prior to its receipt of the concession license, an applicant may request for entering into negotiations with the incumbent operator for matters in relation to network interconnection, sharing of network infrastructure facilities, leased circuit and the required facilities for international telecommunications.
The procedures and method for the negotiations as referred to in the preceding Paragraph shall altogether be arranged by the competent authority and the incumbent operator shall cooperate accordingly.