Telecommunications Regulatory Framework in China

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Telecommunications Regulatory Framework in China
2009 CHINA/U.S. LEGAL EXCHANGE

• Shi Yuchun
• Department of Policies, Laws and Regulations
• MIIT China

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• Content
• I. Regulatory Authority
• II. Laws and Regulations
• III. Regulatory Institutions

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I. Regulatory Authority
General Office
Dept. of Policies, Laws and Regulations
Dept. of Planning
Dept. of Finance
Dept. of Industrial Policies
Dept. of Science and Technology
MIIT
24 internal organs
Bureau of Operation Monitoring
Dept. of Work Safety
Dept. of Telecommunication Development
Bureau of Telecommunication Administration
Bureau of Telecommunication Enablement
Bureau of Radio Regulation
31Provincial Communications Authorities
Dept. of International Cooperation

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II. Laws and Regulations

• Law
• Decision on Safeguarding Internet Security (2000)
• Administrative Regulations issued by State
  Council
• Regulations on Administration of Foreign-Invested
  Telecommunications Enterprises (amended in 2008)
• Regulations on Telecommunications(2000)
• Measures on Administration of Internet
  Information Services(2000)
• Regulations on Radio (2000)

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Ministry Rules issued by MIIT
Tariff administration
Market access
Telecom regulation
Resources Administration
Networks interconnection
Security safeguard
Service Quality
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• Telecom Market Access and Services Regulation
• Administrative Provisions on Telecom Services
  Operation and Licensing (2009)
• Provisions on Implementation of Administrative
  Licensing of MIIT(2009)
• Administrative Provisions on Internet E-mail
  Service(2006)
• Administrative Provisions on Internet News
  Information Service(2005)
• Administrative Provisions on Putting Non-Profit
  Internet Information Services on Records(2005)
• 17th Ministry Rule of MII(2001)
• Service Quality
• Rules of Telecommunications Services(2005)
• Interim Provisions on Administration and
  Supervision of Telecom Services(2001)
• Interim Provisions on the Handling of Telecom
  Users Complaints(2001)

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• Networks Interconnection
• Provisions on Handling Disputes regarding
  Interconnection between Telecom Networks (2001)
• Administrative Provisions on Interconnections
  between Public Telecom Networks(2001)
• Telecom Resources
• Administrative Provisions on Putting Internet IP
  Address on Records (2005)
• Administrative Provisions on Internet Domain
  Names of China(2004)
• Administrative Provisions on Telecom Numbering
  Resources(2003)
• Equipments Access
• Administrative Provisions on Anti- Earthquake
  Performance Test of Telecom Equipments (2009)
• Administrative Provisions on Networks Access of
  Telecom equipments(2001)
• Telecom Security
• Administrative Provisions on International
  Communications Gateway(2002)
• Administrative Provisions on Internet Bulletin
  Board Services(2000)

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• Telecom Construction
• Administrative Provisions on Construction of
  International Communications Facilities(2002)
• Administrative Provisions on Telecom
  Construction(2002)
• Provisions on Administration and Supervision of
  Telecom Engineering Quality(2001)
• Interim Provisions on the Tendering of Telecom
  Construction Projects(2000)
• Radio Regulation
• Administrative Provisions on Setting up Satellite
  Communications Network and Setting up as well as
  Using Earth Station(2009)
• Administrative Provisions on Radio Stations
  Licenses(2009)
• Measures on Accreditation of Testing Institutions
  for Radio Equipments Transmitting
  Characteristics(2006)
• Provisions on Radio Frequency Allocation(2006)
• Administrative Provisions on Setting up Radio
  Paging Transmitting Base Station on High
  Buildings, Towers and Mountains(2001)

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• Supervision of Law Enforcement
• Executive Provisions on Administrative Review of
  MII(2002)
• Provisions on Procedures for Administrative
  Punishment concerning Communications Sector(2001)
• Others
• Decisions on Abolishing 8 MPT Rules including
  Provisions on compensation for Damaging
  Communications lines and Circiuts(2009)
• Administrative Provisions on Communications
  Statistics(2002)

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III. Regulatory Institutions

• 1. Telecom market access
• License required for telecom services operation
• Services classification
• Basic telecommunications services
• Value added telecommunications service
• Different licensing requirements stricter
  requirements for basic telecom services

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Foreign-Invested Telecom Enterprise

• Enterprise form Joint-Venture
• Foreign investment basic telecom 49,
  Value-added telecom 50
• Service scope services committed by China upon
  WTO entry
• Approval procedures
• Applying Certificates for Foreign Investing and
  Operating Telecom Services
• Applying Approval Certificate for Foreign
  Investment
• Applying License for Telecom Service Operation
• Registry with enterprise Registration Authority
• Approval information
• 34 Certificates for Foreign Investing and
  Operating Telecom Services issued by MIIT up to
  Aug. 2009
• 16 FITEs received value-added telecom licenses
  issued by MIIT, including such U.S. enterprises
  as Microsoft, Google, Onstar, Amazon

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• 2. Telecom networks interconnection
• Principles technology feasibility, economy
  rationality,
• fairness and impartiality,
  mutual cooperation
• Major telecom operator undertakes more
  obligations
• Formulate interconnection protocol
• Provide information of relevant communications
  facilities
• Not allowed to deny interconnection request
• Procedures negotiationcoordinationargumentation
  decisioncompulsory interconnection

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• 3. Telecom tariff administration
• Pricing methods market-led price,
  government-guided price and government-determined
  price
• Basic telecom service government-determined
  price, government-guided price or market-led
  price
• Value added telecom service market-led price or
  government-guided price
• Sufficiently competitive service market-led
  price
• Before 2004 mainly government-determined price
• After 2004 mainly market-led price, supplemented
  by government-determined or guided price

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• 4. Telecom resources administration
• Telecom resources radio frequency, satellite
  orbit position, telecom numbering, etc.
• Principles unified planning, centralized
  administration
• rational allocation and
  compensation for usage
• Allocation methods designation or auction

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• 5. Supervision of telecom service quality
• Mechanism government regulation, enterprise
  self-discipline and users supervision
• Enterprise obligations and users rights
• Provide prompt, accurate, safe, convenient and
  price-reasonable services
• Abide by standards of service quality and
  requirements of time limit
• Listen to the opinions from users
• Regulation of telecom regulatory authority
• Accept complaints of users in time
• Supervise the service quality
• Punish those operators that violate the service
  rules

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• 6. Telecom security safeguarding
• Telecom network and information security is
  protected by law
• Freedom to legally use telecom and
  confidentiality of communications is protected by
  law
• Prohibit using telecom network to conduct illegal
  or criminal activities, endanger telecom network
  security or disrupt telecom market
• In case of such emergent situation as major
  natural disasters, government may temporarily
  requisition all kinds of telecom facilities to
  ensure the smooth flow of important communications

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Thank you