PART I 54 Telecommunications Numbers  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.  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.  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.  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.  • 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.  The Telecommunications Act was amended in 1996 to open the market for all Type II services. Under the  Type II Services Regulations as last amended on November 5, 2010, Type II services are divided into special  services and general services. Special services include simple resale, VoIP, network telephone service of E.164  and non-E.164 user numbers (IP Phone Numbers), international leased circuit and other services specified by  governing authority. General services include any Type II service other than special services. The policy for  granting a Type II service license is as follows:  Satellite services licenses are valid for 10 years. Minimum paid-in capital requirements for fixed satellite  services providers and mobile satellite services providers are NT$100 million and NT$500 million, respectively.  We currently hold a fixed satellite services license, valid from December 10, 2008 to December 9, 2018.  Type II 