Regulations for Administration on Fixed Network Telecommunications Business Article 22

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.