●  there is no limit on the number of licenses to be issued;  ●  licenses were granted by the Directorate General of Telecommunications before March 1, 2006 and are now granted  by the National Communications Commission; and  ●  no bidding procedure is required.  We hold a license to operate all Type II services. Type II service licenses issued before November 15, 2005 are valid  for ten years and may be renewed by application made two months prior to the expiration date. Type II service licenses issued  or renewed on or after November 15, 2005 are valid for three years and may be renewed during the period commencing  two months prior to the expiration date. There is no minimum paid-in capital requirement for Type II service providers. Our  license to operate Type II services is included in our license to operate integrated services, and is valid from July 29, 2000 to  July 28, 2025.  Under regulations governing the fees payable for Type II licenses, operators of simple resale or network telephone  services of E.164 or non-E.164 user numbers must pay an annual license fee equal to 1% of annual revenues generated from  these services during the previous year. Type II service operators providing services other than simple resale or network  telephone services of E.164 or non-E.164 user numbers must pay license fees ranging from NT$6,000 to NT$150,000  depending on their respective paid-in capitals. The regulations do not apply to integrated services providers who are permitted  to provide Type II services without additional Type II Licenses. The annual license fee for an integrated services provider  operating Type II businesses is 1% of its annual revenues generated from its Type II services.  The Directorate General of Telecommunications started to process the applications for allocating E.164 and  non-E.164 user numbers (IP phone numbers) on November 15, 2005. A few operators, including our company, have applied  for IP phone numbers. We applied to the National Communications Commissions for E.164 user numbers and as of January  30, 2008, we have received approval to build a network with a capacity of 30,000 numbers. As we are governed by fixed line  regulations, we need to receive approval from the National Communications Commission for our operation rules, tariff and  service agreement for IP phone numbers before we can commence E.164 service.  According to the Telecommunications Act, numbering codes, subscriber numbers, identification numbers and  other telecommunication numbers will be distributed and managed by the National Communications Commission. These  telecommunication numbers may not be used or changed without approval by the National Communications Commission. In  order to maintain effective use of available telecommunication numbers, the Telecommunications Act empowers the National  Communications Commission to reallocate and retrieve and to collect a usage fee for distributed telecommunication numbers.  The National Communications Commission promulgated the  Fee Standards for Special Telecommunication Numbers  on  March 18, 2010, effective immediately, requiring telecommunications service providers to pay 70% of revenues collected  from the auctioning off and selection of “golden numbers” and the standard usage rates for “special identification numbers”  in use.  Telecommunications Numbers  Restrictions on Dominant Telecommunications Services Providers  Under the Telecommunications Act, the regulations governing dominant telecommunications services providers apply  only to Type I service providers. A Type I service provider is deemed to be dominant if it meets any of the following criteria  and was declared by the Ministry of Transportation and Communications or now the National Communications Commission  as dominant:  ●  controls key basic telecommunications infrastructure;  ●  has dominant power over market price; or  56 P AR T I