Telecommunications Universal Service Regulations Article 24

The participating universal service carriers, after the approval of the competent authority (NCC), shall be exempted from sharing the universal service cost in the implementation year if the revenue as designated by the competent authority(NCC) is not achieved.I. Bad debts incurred in the first implementation year in accordance with this set of Regulations shall be considered part of the universal service charges for the second implementation year, and shall be shared amongst contributing parties in accordance with the methods set forth in Article 22.II. From the second implementation year onwards, a certain proportion in relation to the contributing universal service charges shall be paid annually.The aforementioned "certain proportion" shall be set in accordance with the following criteria as well as the adjustment by the competent authority (NCC) according to the experience of collecting bad debts:I. If the proportion of bad debts of the first implementation year exceeds one per cent, the "certain proportion" shall be the proportion of bad debts.II. If the proportion of bad debts of the first implementation year is less than 1%, the "certain proportion" shall be one per cent.The aforementioned "proportion of bad debts" shall be the proportion of bad debts incurred in an implementation year in relation to the total universal service charges in that year.