Voice-based Telecommunication Universal Service includes uneconomic public payphones and telephone service in uneconomic areas.

The incumbent Operator shall, by June 1 of the year prior to the fiscal year in which universal service is implemented（hereafter named the "implementation year"）, submit the Annual Universal Service Implementation Plan（hereafter named the "implementation plan"）based on the cabinet-level municipalities, counties and cities which are publicly designated as the implementation units by the competent authority（NCC）, and apply to the competent authority（NCC）for accreditation as universal service providers for uneconomic public payphone and telephone services in uneconomic areas. In addition to the incumbent operators, other local network operators or mobile broadband operators shall also apply to become a universal service provider for telephone service in uneconomic areas in accordance with the aforementioned procedure.
The "Implementation Year" as stated in paragraph 1 refers to the calendar year from January 1 to December 31.
The competent authority（NCC）shall publicize the Implementation Plan in accordance with paragraph 1 and paragraph 2 no later than July 1 of the year prior to the implementation year. Local network operators or mobile broadband operators shall once again submit improved implementation plans no later than August 1 of the same year, and apply for accreditation as a universal service provider for telephone service in uneconomic areas.
The competent authority（NCC）, before approving the previous implementation plan, shall compare the net universal service costs, requested subsidy amounts, and the predicted improvements in service penetration and quality as outlined in various implementation plans; and in consideration with the actual operating abilities of the applicants, the competent authority（NCC）shall then choose the best implementation plan; if necessary, the competent authority（NCC）must request the applicant to amend its proposed implementation plan.

The implementation plan shall clearly outline the following items:
I. The indicators of universal rate and service quality prior to the implementation of the universal service in the implementation year.
II. Predictions of maintenance or improvement of the universal rate and service quality indicators of the telephone service in uneconomic area after implementation of the universal service in the implementation year.
III. Implementation solutions and the tariffs of the universal service in the implementation year.
IV. Estimates of the net universal service costs of the implementation year, and the amount of subsidies required.
V. Detailed calculations of the net universal service costs required in the implementation year.
Implementation plans published by the competent authority（NCC）under Articles 6 and 9 of the Regulations do not include the contents of item 5 of the above paragraph.
For the implementation plan described in paragraph 1, the net universal service cost sheet in the implementation year shall be tabulated in accordance with the main compilation points of the telecommunications universal service financial statement.

The net universal service costs for uneconomic area telephone service and uneconomic public payphone service are the avoidable costs incurred by the universal service provider in connection with the fulfillment of the service obligation less any revenues forgone.

The avoidable costs of the telephone service in uneconomic area shall be calculated in accordance with the formula as stated in Appendix 1.
The revenue forgone for the fixed telecommunications service in an uneconomic area shall be the sum of the following listed revenues as collected from the provision of telephone and other related services by the universal service providers in a single local private branch exchange network of the remote area:
I. Monthly rental revenue
II. Phone charge revenue
III. Installation and connection revenue
IV. Extension charges
V. Internet connection charges
VI. Rental revenue from leased circuit or other networking equipment
VII. Internet access service revenue
VIII. Other service revenue
IX. Other non-operating revenue
The revenue forgone for the mobile broadband transmission station in an uneconomic area shall be the sum of the following listed revenues as collected from the mobile broadband transmission station services by the universal service providers of the remote area.
If the district in which the single local private branch exchange network serves crosses remote and non-remote areas, the universal service provider shall, in its calculations of the total net universal service costs of the telephone service in an uneconomic area, include the net universal service cost incurred by the district in which the single local private branch exchange network serves.

• Appendix 1：Avoidable cost formula for telephone or data communication access service in uneconomic areas.pdf

The avoidable costs of uneconomic public payphone service shall be calculated in accordance with the formula as stated in Appendix 2. The revenue forgone for an uneconomic public payphone service shall be the service income as derived from a single public payphone booth. The following are the subsidy methods of uneconomic universal public phone service:
I. Subsidize two uneconomic public payphone booths within a radius of two hundred meters in remote areas
II. Subsidize one uneconomic public payphone booths within an area of two square kilometers in non-remote areas
The competent authority（NCC）shall, in accordance with the actual requirement, adjust the subsidy amount of the installation of uneconomic public payphones in government bureaus, local schools, hospitals, prisons, military camps, train stations, airports, congress, and mountainous areas; the subsidy is not limited by the previous regulations.

• Appendix 2：Formula for the calculation of avoidable costs for uneconomic public payphone service.pdf