Telecommunication Regulation of the People's Republic of China (2016 Revision)

Telecommunication Regulation of the People's Republic of China (2016 Revision) Telecommunication Regulation of the People's Republic of China (Issued by the Order No. 291 of the State Council of the People's Republic of China on September 25, 2000 amended for the first time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on July 29, 2014 (Order No. 653 of the State Council) and amended for the second time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on February 6, 2016 (Order No. 666 of the State Council) ) Chapter I General principles Article 1 This Regulation is formulated to regulate the order of the telecommunications market, to protect the lawful rights and interests of telecommunications users and service providers and to ensure the safety of telecommunications network and information so as to promote the healthy development of telecommunications. Article 2 Anyone engaged in telecommunications activities or activities in connection with telecommunications within the territory of the People's Republic of China shall abide by this Regulation. Telecommunications in this Regulation refer to the use of wired or wireless electromagnetic systems, or photoelectric systems, to transmit, emit or receive speech, text, data, graphics or any other form of information. Article 3 The Ministry of Information Industries (MII) under the State Council is responsible for the nation-wide supervision and administration of telecommunications in accordance with this Regulation. The telecommunications administrative authorities of all provinces, autonomous regions and cities under the direct control of the Central Government are responsible, under the guidance of MII, for the supervision and administration of telecommunications in their regions in accordance with this Regulation. Article 4 The supervision and administration of telecommunications shall be carried out according to the principles of separation of the Government and enterprises, anti-monopoly, development promotion, openness, fairness and impartiality. The telecommunications service providers shall conduct business operation in accordance with the law, observe business ethics, and accept the supervisory inspection carried out in accordance with the law. Article 5 The telecommunications service providers shall provide services in accordance with the law and business ethics. They shall be subject to supervision and administration which are conducted in accordance with the law. Article 6 The safety of the telecommunications networks and information is protected by the law. Any organisation or individual shall not be engaged, by using the telecommunication networks, in activities detrimental to State Security, social and public interests or the lawful rights and interests of others. Chapter II Telecommunication business and market Subsection 1Telecommunication business licensing Article 7 The State establishes a licensing system for telecommunications business according to the different categories of business. Telecommunications business shall be conducted with a licence obtained from MII or the telecommunications administrative authorities of the provinces, autonomous regions and cities under the direct control of the Central Government. Any organisation or individual that does not obtain a telecommunication business licence shall not be engaged in telecommunications business. Article 8 Telecommunications business is divided into two categories: basic telecommunications business and value-added telecommunications business. Basic telecommunications business refers to the provision of basic facilities of public networks, public data transmission and basic speech communication. Value-added telecommunications business refers to the provision of telecommunication and information services by using the basic facilities of public networks. For detailed categories of the telecommunications business, please refer to the Appendix of this Regulation: Catalogue of Telecommunications Business. MII may update and renew this Catalogue in accordance with the real situation. Article 9 Anyone that intends to be engaged in basic telecommunications business shall be approved by MII and obtain a Business Licence for Basic Telecommunications Business. Anyone that intends to be engaged in value-added telecommunications business covering more than two provinces, autonomous regions or cities under the direct control of the Central Government shall be approved by MII and obtain a Business Licence for Cross-region Value-added Telecommunications Business. Anyone that intends to be engaged in value-added telecommunications business covering only one province, autonomous region or city under the direct control of the Central Government shall be approved by the telecommunications administrative authority of the relevant province, autonomous region or city under the direct control of the Central Government and obtain a Business Licence for Value-added Telecommunications Business. Anyone that is engaged, by using new technology, in new-type telecommunication business not covered by the Catalogue of Telecommunications Business shall record his business at the telecommunications administrative authority of the relevant province, autonomous region or city under the direct control of the Central Government. Article 10 A basic telecommunications business provider shall meet the following requirements: (1)being a company established in accordance with the law and specialised in basic telecommunications business and the State-owned equity or shares in the company not lower than 51%; (2)preparing feasibility study report and a plan for the structuring of networks; (3)having capital and professionals commensurate to its business; (4)having a fixed place and the corresponding resources for the business; (5)having the credibility and capacity to provide long-term services; (6)other requirements provided by the State. Article 11 The application for provision of basic telecommunications business shall be addressed to MII together with the relevant documents as provided by Article 10 of this Regulation. MII shall examine the application and approve or disapprove it within 180 days after receiving the application. If approved, a Business Licence for Basic Telecommunication Business shall be granted; if not approved, a written notice explaining the reasons shall be given. Article 12 When examining applications for provision of basic telecommunications business, MII shall mainly take into consideration of such factors as Stare security, safety of telecommunications networks, sustainable development of telecommunications resources, environmental protection, and competition of the telecommunications market. The granting of the Business Licences for Basic Telecommunication Business shall use the method of tender. Article 13 A value-added telecommunications business provider shall meet the following requirements: (1)being a company established in accordance with the law; (2)having capital and professionals commensurate to its business; (3)having the credibility and capacity to provide long-term services; (4)other requirements provided by the State. Article 14 The application for provision of value-added telecommunications business shall, in accordance with Article 9(2) of this Regulation, be addressed to MII or to the administrative authorities of the relevant province, autonomous region or city under the direct control of the Central Government, together with the relevant documents as provided by Article 13 of this Regulation. If the approval of the relevant competent authority is also required by the law, the document of such an approval shall also be provided. MII or the administrative authorities of the relevant province, autonomous region or city under the direct control of the Central Government shall examine the application and approve or disapprove it within 60 days after receiving the application. If approved, a Business Licence for Cross-region Value-added Telecommunications Business or for Value-added Telecommunications Business shall be granted; If not approved, a written notice explaining the reasons shall be given. Article 15 If, during its term of business, a telecommunications business provider intends to change the business provider, business scope or to terminate the business, it shall apply to the original authority granting the Business Licence and go through relevant formalities. In case of termination of business, a settlement shall be made in accordance with State regulations. Article 16 The operator of a dedicated telecommunications network which intends to provide telecommunications services in the area where it is located shall file an application in accordance with the conditions and procedures as prescribed in this Regulation, and upon approval, obtain a permit for engaging in the telecommunications business. Sub-section 2 Link ups between telecommunications networks Article 17 Linking-up between telecommunications networks shall be carried out according to the principles of technological feasibility, economy, fairness and co-ordination. Principal public telecommunications business providers shall not reject the requests for link-up of other public telecommunications business providers or dedicated networks operators. Principal public telecommunications business providers refer to telecommunications business providers that control necessary basic telecommunications facilities and account for a large proportion of the market, thus able to influence substantially the market access of other business providers. The list of the principal public telecommunications business providers shall be defined by MII. Article 18 Principal public telecommunications business providers shall, on the basis of non-discrimination and transparency, formulate the link-up rules including the procedure, time limit, and catalogue of non-tied-up network elements. The link-up rules shall be approved by MII and be binding to Principal public telecommunications business providers in their link-ups. Article 19 The inter-network link-up between public networks, and between public and dedicated networks shall be carried out by the parties involved through consultation in accordance with the relevant regulation of MII. Agreements on such inter-network link-ups shall also be reached and filed for record at MII. Article 20 If the two parties can not reach an agreement on the inter-network link-up, within 60 days after one party requests such link-up, either party can apply for co-ordination to MII or to the telecommunications administrative authority at the level of province, autonomous region, or city under the direct control of the Central Government according to the area covered by the link-up. The authority receiving such an application shall conduct co-ordination in accordance with Article 17(2) of this Regulation in order to reach an agreement between the two parties. Despite the co-ordination, in case no agreement can be reached within 45 days after either party applies for co-ordination, the co-ordination authority shall invite, through random selection, telecommunication specialists and other professionals to a public hearing to raise proposals for the link-up. The co-ordination authority shall make a decision of compulsive link-up on the basis of the hearing. Article 21 The link-up shall be made within the time limit as provided in the link-up agreement or decision. Either party shall terminate the link-up in abiding by the agreements on inter-network link-ups and the relevant provisions of the administrative department of information technology under the State Council and ensuring inter-network communication.. The two parties shall take effective measures to eliminate technological obstacles to link-ups. In case disputes arise during the link-up, the two parties shall settle the disputes in accordance with Article 20 of this Regulation. The communication quality of the link-up shall reach the relevant State standard. The principal telecommunication business providers, when linking up with other telecommunication business providers, the communication quality shall not be lower than that when providing such service within its own network to its subsidiaries or branches. Article 22 T......