Laws of the People's Republic of China

INTERIM PROVISIONS ON THE APPROVAL AND REGULATIONS OF BUSINESSES
ENGAGING IN OPENED TELECOMMUNICATIONS SERVICES

(Issued by the Ministry of Post and Telecommunications
(MPT, precedessor of the Ministry of Information Industry)
on September 11, 1993)

SUBJECT: TELECOMMUNICATIONS SERVICES

ISSUING-DEPT: MINISTRY OF POST AND TELECOMMUNICATIONS

ISSUE-DATE: 09/11/1993

IMPLEMENT-DATE: 11/01/1993

LENGTH: 1587words

TEXT:

Article 1. In order to strengthen the regulation of the telecom sector and to meet the telecom needs of the society, these measures were established according to the 1993 Notice on Reinforcing Regulations of the Telecommunications Sector issued by the State Council.

Article 2. Public telecom service providers within the borders of the PRC fall under these regulations.

Article 3. The Ministry of Posts and Telecommunications (MPT) is responsible in the general implementation and monitoring of these regulations. Postal and telecom regulatory bureaus that belong to the provinces, autonomous regions and cities directly under the jurisdiction of the central government are responsible for the specific implementation and monitoring of these regulations.

Article 4. Providers of the following public telecom services must obtain business permits:

1. Wireless electronic paging
2. 800mhz grouped telephone service
3. 450mhz wireless electronic mobile telecom service
4. Domestic VSAT (very small aperture terminal) telecom service
5. Other assorted telecom services approved by the MPT.

Article 5. Providers of the following services must adhere to registration rules:

1. Telephone information service
2. Computer information service
3. Electronic mailbox service
4. Electronic data exchange service
5. Electronic imaging
6. Other telecommunication services approved by MPT

Article 6. No work units may operate telecom services without the inspection and approval of the MPT and the regional postal and telecom regulatory bureaus (all together referred to as supervisory departments of communications (SDC) hereafter). Foreign individuals and organizations, along with foreign invested or partnered enterprises that have been already established in China are forbidden from investing or either solely or cooperatively operating in telecom services in China.

Article 7. The total number of business permits that can be issued to the public telecom service providers listed in Article 4 will be determined by the SDC according to telecom resources and actual demands.

Article 8. Basic qualifications for engaging in providing public telecom services are the following:

1. Sponsors or investors must be juridical state-owned enterprises (SOEs) or non-profit organizations or corporations of collective ownership.
2. Technical and managerial staff necessary and relevant to the specific service provided must be hired.
3. Sufficient and necessary funding is available.
4. Necessary service facilities and spaces are acquired; telecom equipment used by the provider to connect itself to the public telecom network should meet the network requirements set up by the MPT.
5. The service provider has the ability to provide long-term service. Specific requirements related to each of the services will be established by the MPT at a later time.

Article 9. Firms that apply for the operations of telecommunications service within provinces, autonomous regions or cities directly under the jurisdiction of central government must report to their local bureau of postal and telecom regulations, which is responsible for conducting inspections and issuing certifications that is prerequisite to the receipt of a business permit. These enterprises should also be filed at the MPT. Inter-regional firms should report to the MPT and should undergo similar procedures in order to obtain permits.

Article 10. Work units applying for the permission to provide telecom services to the public should furnish the SDC with the following material:

1. The application to operate telecom services;
2. A feasibility study, which should discuss the types of services provided, the scope of services, market projections, plans of development, technological standards, service quality expected and fee-charging standards;
3. Notarization material meeting the requirements of Article 8.

Article 11. When a service provider that is listed in Article 5 applies for registration, SDC should make a decision and issue a written notice of acceptance or refusal 30 days after all application materials are received.

Article 12. Firms applying for permits to operate services listed in Article 4 will be initially inspected in batches by the SDC and according to a fixed date after all application materials are received. Those who are certified after the initial inspection and have met the basic qualifications will then undergo general evaluations.

The SDC will then choose and grant business permits to the most qualified firms based on the frequency resource that can be provided by the wireless communications management organization (WCMO) and the relay and wiring equipment that can be provided by postal and telecom enterprises. The final decision will be released to the public.

Article 13. Organizations that are given permission to provide wireless telecom services must bring their permit to the WCMO and apply for frequency designation and station installation. All organizations with permissions to provide telecom services to the public should bring their business permits or documents of permission to apply for business registration at the Industrial and Commercial Administrative Bureau.

Article 14. Business permits to operate public telecom services are printed by the MPT only. They cannot be forged, altered or transferred without authorization.

Article 15. These permits are valid for five years. When a firm’s permit nears its expiration date and the firm intends to have it renewed, renewal should be applied according to the regulations of this document at least 60 days before the expiration date.

Article 16. When the business permit is still valid and the content regulated by the permit has changed, the permit-holding organization should go to the permit’s original granting institution and apply for modifications. Organizations that intend to terminate business operations while their permits are still valid should report to their permits’ original institution of issuance, take on the full responsibility of dealing with client affairs and then apply for termination of their business permits.

Article 17. Postal and telecom enterprises should act according to the "win-win" principle, and complement and benefit organizations that are permitted to provide public telecom services. They should supply these firms with necessary and basic relay equipment and lines and charge fees according to regulated standards. Organizations that do not have the permission to provide telecom services will not be supplied with equipment or lines.

Article 18. Organizations permitted to operate telecom must adhere to all related telecom policies and laws, accept regulations and inspections from government regulatory branches, guarantee service quality and strictly carry out policies and standards for fee-charging. They may not exceed the permitted scope of services, and interfering with the normal operations of the national public telecom network and other specialized telecom networks is forbidden.

Article 19. SDC will monitor and inspect the operations and services of providers with permits. Personnel responsible for monitoring and inspections should hold proper credentials. And telecom service providers with business permits should deliver annual statistical information to the SDC according to regulations.

Article 20. According to the degree of the offense in question, violators of Article 6, Section 2 of Article 14 and Article 18 will be penalized with warnings, will be instructed to make corrections within a specified time period, will have illegal documents confiscated, will have business permits or documents of permission revoked, and will be forced to give up their circuit usage. Offenses will be made public. Violators who have also made infringements on ICAB regulations will be turned over to the ICAB. Activities that constitute a threat to public order can be punished according to provisions of the public security management penalty articles. Where crimes have occurred, prosecutions for criminal responsibility should be made. Organizations whose business permits have been revoked must take on full legal responsibilities in response to their clients.

Article 21. Violators of Article 17 will be ordered to take remedial actions within a specified time period, and they will be penalized with a warning, have notices of criticism circulated about them, or they will have related leaders investigated for administrative liability according to the degree of the offense.

Article 22. The SDC will take measures to make it easier for the public to report offenses and to continue to encourage public monitoring. Disciplinary actions will be taken against personnel who misuse their powers in minor cases. In more serious cases, prosecutions of criminal activities will be made.

Article 23. Organizations that disagree with SDC’s registration decisions may apply for administrative reconsideration with the MPT.

Article 24. Organizations that disagree with refusals to grant business permits or refuse to comply with administrative penalties can apply for administrative reconsideration according to related rules and regulations or bring a suit to the People’s Court.

If an organization to whom a penalty has been issued does not apply for reconsideration, takes matters to court or carries out terms of the penalty after the deadline, the administrative branch that issued the penalty may apply at the People’s Court for a forced execution of that penalty.

Article 25. The specific responsibilities of conducting certification and approval of telecom service providers belong to the MPT and to the regional postal and telecom regulatory bureau’s communications industry regulatory branches.

Article 26. Organizations that have already started providing telecom services to the public before the promulgation of these measures must retroactively undergo the authorization process within 60 days after the promulgation of these measures. Those who miss the deadline or after inspections are proven under-qualified are forbidden to continue their operations, and they will be penalized according to Article 20.

Article 27. These regulations go into effect on November 1, 1993.