2009 CHINA/U.S.

LEGAL EXCHANGE

Telecommunications Regulatory
Framework in China

Shi Yuchun
Department of Policies, Laws and Regulations
MIIT China
 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
31Provincial Communications
Authorities
Bureau of Operation Monitoring
Dept. of Work Safety
Dept. of Telecommunication Development
Bureau of Telecommunication Administration
Bureau of Telecommunication Enablement
Bureau of Radio Regulation
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)
– …… 4
•Ministry Rules issued by MIIT

Tariff
Market
administration
access

Networks Resources
interconnection Telecom
Administration
regulation

Security Service
safeguard 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 Recor
ds （ 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 Netwo
rks （ 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 Equip
ments （ 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 ） 7
– Telecom Construction
• Administrative Provisions on Construction of International Communications Faciliti
es （ 2002 ）
• Administrative Provisions on Telecom Construction （ 2002 ）
• Provisions on Administration and Supervision of Telecom Engineering Quality （ 2
001 ）
• Interim Provisions on the Tendering of Telecom Construction Projects （ 2000 ）
– Radio Regulation
• Administrative Provisions on Setting up Satellite Communications Network and Sett
ing up as well as Using Earth Station （ 2009 ）
• Administrative Provisions on Radio Stations Licenses （ 2009 ）
• Measures on Accreditation of Testing Institutions for Radio Equipments’ Transmitti
ng 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 Commun

ications Sector （ 2001 ）

– Others
• Decisions on Abolishing 8 MPT Rules including Provisions on compensation f
or 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 Tele
com 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 Ser
vices 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 11
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: negotiation—coordination—argumentation
—decision—compulsory interconnection
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3. Telecom tariff administration
– Pricing methods: market-led price, government-guided pr
ice and government-determined price
• Basic telecom service: government-determined price, governme
nt-guided price or market-led price
• Value added telecom service: market-led price or government-g
uided price
• Sufficiently competitive service: market-led price
– Before 2004: mainly government-determined price
– After 2004: mainly market-led price, supplemented by go
vernment-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 16
Thank you

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