Telecommunications Universal Service Regulations Article 25

Payments to the bad debts reserve fund as regulated in the previous article shall be suspended in the subsequent year if the accumulated sums exceed its upper limit. Payments shall be resumed in the subsequent year if the bad debts reserve fund after payment suspension falls to the lower limit. The aforementioned upper limit shall be five per cent of the total universal service charges in the first implementation year, and the lower limit shall be two per cent of the total universal service charges in the first implementation year. These limits may be adjusted by the competent authority（NCC）depending on current circumstances.If the bad debts reserve fund runs out in any implementation year, any deficits shall be considered universal service charges in the subsequent year, and shared amongst contributing parties in accordance with the methods set forth in Article 22.