Telecommunications Regulations of the People’s Republic of China

Release Date: 02-06-2016

Source: fdi.gov.cn

Chinese Title: 中华人民共和国电信条例 (2016修订)

CHAPTER 1 — GENERAL PRINCIPLES

Article 1 These Regulations are enacted for the purposes of standardising the order of the telecommunications market, protecting the legitimate rights and interests of telecommunications users and telecom operators, ensuring the security of telecommunications networks and information, and promoting healthy development of the telecommunications industry.

Article 2 Persons engaging in telecommunications activities or telecommunications-related activities within the People’s Republic of China shall comply with these Regulations.

“Telecommunications” referred to in these Regulations shall refer to transmission, emission or reception of voice, text, data, images or any other form of information through wired or wireless electromagnetic or photo-voltaic systems.

Article 3 The information technology administration department of the State Council shall implement nationwide supervision and administration of telecommunications industry pursuant to the provisions of these Regulations.

The telecommunications administration authorities of provinces, autonomous regions, and centrally-administered municipalities shall implement supervision and administration of telecommunications industry within their administrative region under the leadership of the information technology administration department of the State Council and pursuant to the provisions of these Regulations.

Article 4 Supervision and administration of the telecommunications industry shall adhere to the principles of separating politics and business, eliminating monopoly, encouraging competition, promoting development, and the principles of transparency, fairness and equitableness.

Telecom operators shall conduct business pursuant to the law, abide by business ethics, and accept supervision and inspection implemented pursuant to the law.

Article 5 Telecom operators shall provide with prompt, accurate, safe, convenient and reasonably-priced telecommunications services to telecommunications users.

Article 6 The security of telecommunications networks and information shall be protected by law. No organisation or individual shall make use of telecommunications network to engage in activities which compromise national security, public interest, or the legitimate rights or interests of others.

CHAPTER 2 — TELECOMMUNICATIONS MARKET

Section 1 — Telecommunications Business Permits

Article 7 The State shall implement a licensing system for telecommunications businesses in accordance with the classification of telecommunications businesses.

Telecom operators shall apply to the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality for a telecommunications business permit pursuant to the provisions of these Regulations.

No organisation or individual shall engage in telecommunications business without obtaining a telecommunications business permit.

Article 8 Telecommunications businesses are categorised into basic telecommunications businesses and value-added telecommunications businesses.

Basic telecommunications businesses shall mean the businesses of providing public network infrastructure, public data transmission and basic voice communication services. Value-added telecommunications businesses shall mean making use of public network infrastructure to provide telecommunications and information services.

The specific categories of telecommunications businesses are set out in the Classification of Telecommunications Businesses in the appendix of these Regulations. The information technology administration department of the State Council may, based on actual circumstances, make partial adjustments to the classification of telecommunications businesses thereto, and re-announce.

Article 9 Basic telecom operators shall be subject to examination and approval by the information technology administration department of the State Council, and obtain a Basic Telecommunications Business Permit.

Value-added telecom operators with service coverage at two or more provinces, autonomous regions or centrally-administered municipalities shall be subject to examination and approval by the information technology administration department of the State Council, and obtain a Regional Value-Added Telecommunications Business Permit. Value-added telecom operators with service coverage within a province, an autonomous region or a centrally-administered municipality shall be subject to examination and approval by the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, and obtain a Value-added Telecommunications Business Permit.

A telecom operator applying a new technology to launch a new type of telecommunications business which is not listed in the “Classification of Telecommunications Businesses” shall complete filing formalities with the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality.

Article 10 A basic telecom operator shall satisfy the following criteria:

(1) It shall be a company established pursuant to the law to specifically engage in basic telecommunications businesses, and the State shall hold at least 51% of the equity or shares in the company;

(2) Has feasibility study report and network technology plan;

(3) Has funding and professionals relevant for its business;

(4) Has premises and resources for the conduct of business;

(5) Has credibility or capacity to provide long-term services to users; and

(6) Satisfies any other requirements stipulated by the State.

Article 11 Applicants proposing to engage in basic telecommunications businesses shall submit an application to the information technology administration department of the State Council, and submit the relevant documents stipulated in Article 10.

The information technology administration department of the State Council shall examine an application within 180 days from acceptance of the application and decide on approval or non-approval. A Basic Telecommunications Business Permit shall be issued to successful applicants; unsuccessful applicants shall be notified in writing and the reason for non-approval shall be stated.

Article 12 The information technology administration department of the State Council shall take into account factors such as national security, the security of telecommunications networks, sustainability of telecommunications resources, environmental protection, and competition in the telecommunications market, in the examination of applications for a basic telecommunications business permit.

Issuance of Basic Telecommunications Business Permits shall adopt the method of tender and bidding pursuant to the relevant provisions of the State.

Article 13 A value-added telecom operator shall satisfy the following criteria:

(1) It shall be a company established pursuant to the law;

(2) Has funding and professionals relevant for its business;

(3) Has credibility or capability to provide long-term services to users; and

(4) Satisfies any other requirements stipulated by the State.

Article 14 Applicants proposing to engage in value-added telecommunications businesses shall submit an application to the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality pursuant to the provisions of the second paragraph of Article 9 of these Regulations, and submit the relevant documents stipulated in Article 13. Where the said value-added telecommunications businesses are subject to examination and approval by the relevant authorities pursuant to the relevant provisions of the State, the approval document issued by the relevant authorities shall be submitted. The information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality shall examine an application within 60 days from acceptance of the application and decide on approval or non-approval. A Regional Value-Added Telecommunications Business Permit or a Value-added Telecommunications Business Permit shall be issued to successful applicants; unsuccessful applicants shall be notified in writing and the reason for non-approval shall be stated.

Article 15 In the event of change of business entity or scope of business, or termination of business, the telecom operator shall submit an application to the permit issuing authority 90 days in advance, and complete the corresponding formalities. For termination of business, the telecom operator shall also deal with the aftermath pursuant to the relevant provisions of the State.

Article 16 Private telecommunications network operators engaging in telecommunications businesses at their location shall apply for a telecommunications business permit in accordance with the criteria and procedures stipulated in these Regulations.

Section 2 — Interconnection

Article 17 Telecommunications networks shall establish interconnection in accordance with the principles of technical feasibility, economic rationality, fairness and equitableness, and mutual cooperation.

Leading telecom operators shall not reject the Interconnection requests from other telecom operators or private network operators.

“Leading telecom operators” referred to in the preceding paragraph shall refer to operators who control the requisite basic telecommunications facilities, hold a relatively large market share, and are able to exert substantial influence over other telecom operators entering the telecommunications market.

Leading telecom operators shall be determined by the information technology administration department of the State Council.

Article 18 Leading telecom operators shall formulate interconnection protocol which includes the procedures, time frame, a list of unbundled network elements etc in accordance with the principles of non-discrimination and transparency. The interconnection protocol shall be submitted to the information technology administration department of the State Council for examination and approval. The interconnection protocol shall be binding upon the interconnection activities of the leading telecom operators.

Article 19 Interconnection between public telecommunications networks, and interconnection between public telecommunications networks and private telecommunications networks shall be negotiated between the interconnection parties pursuant to the interconnection administration provisions of the information technology administration department of the State Council, and an interconnection agreement shall be executed.

Article 20 Where the interconnection parties are unable to reach an interconnection agreement, either party may, based on the scope of interconnection coverage, apply to the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality for coordination, within 60 days from the proposal of interconnection. Upon receipt of application, the authorities shall, pursuant to the principles stipulated in the first paragraph of Article 17, facilitate the interconnection parties to reach an agreement; where the parties are unable to reach an agreement within 45 days from application by either party or both parties for coordination, the authorities shall invite randomly-selected telecommunications experts and other relevant experts to conduct an open hearing and to propose an interconnection plan. The authorities shall make a decision based on the expert opinions and the interconnection plan, and carry out interconnection compulsorily.

Article 21 The interconnection parties shall achieve interconnection within the time frame stipulated by the agreement or the decision, comply with the interconnection agreement and the relevant provisions of the information technology administration department of the State Council, and ensure unimpeded internet protocol; each interconnection party shall not suspend interconnection arbitrarily. In the event of technical malfunction of interconnection, both parties shall forthwith adopt effective measures to eliminate the malfunction. Dispute between interconnection parties in the course of interconnection shall be handled in accordance with the procedures and methods stipulated in Article 20 of these Regulations.

The communication quality of interconnection shall conform to the relevant standards of the State. The service quality of interconnection provided by leading telecom operators to other telecom operators shall not be lower than the service quality of the same type of services within the network and the service quality provided to their subsidiaries or branches.

Article 22 Settlement and sharing of interconnection expenses shall comply with the relevant provisions of the State, and charges other than the stipulated standards shall not be collected.

The technical standards for interconnection, methods for settlement of interconnection expenses, and detailed administrative provisions for interconnection shall be formulated by the information technology administration department of the State Council.

Section 3 — Telecommunications Fees

Article 23 Telecommunications fees shall be market-regulated. Telecom operators shall take into account factors such as manufacturing and operational costs, and telecommunications market supply and demand, to determine telecommunications fee rates reasonably.

Article 24 The State shall strengthen regulation of fee collection by telecom operators, establish and improve upon regulatory rules, and safeguard the legitimate rights and interests of consumers.

Article 25 Telecom operators shall provide accurate and complete cost data and other relevant information required by the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality.

Section 4 — Telecommunications Resources

Article 26 “Telecommunications resources” referred to in the preceding paragraph shall mean the limited resources for performance of telecommunications functions such as radio frequency, satellite orbital position, and telecommunications network codes.

Article 27 Telecom operators shall pay telecommunications resource fees for possessing and use of telecommunications resources. Detailed fee collection measures shall be formulated by the information technology administration department of the State Council jointly with the finance department and the pricing department of the State Council, and shall be announced and implemented upon approval by the State Council.

Article 28 Distribution of telecommunications resources shall take into account planning, purpose of use and anticipated service capacity of telecommunications resources.

Distribution of telecommunications resources may adopt the method of assignment or auction.

Applicants who have obtained telecommunications resources use rights shall start using the distributed resources, and attain the stipulated minimum use within the stipulated time frame. Unauthorised use, transfer or leasing of telecommunications resources, or change of purpose of use of telecommunications resources, without the approval by the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, shall be prohibited.

Article 29 Where a telecommunications resource user has obtained telecommunications network code resources pursuant to the law, the leading telecom operators and other relevant units shall be obligated to adopt the requisite technical measures, and cooperate with the telecommunications resource user to materialise the functions of the telecommunications network code resources.

Where laws and administrative regulations stipulate otherwise on administration of telecommunications resources, such provisions shall prevail.

CHAPTER 3 — TELECOMMUNICATIONS SERVICES

Article 30 Telecom operators shall provide services to telecommunications users in accordance with the telecommunications service standards stipulated by the State. The types, scope, fee rates and time frame of the services provided by telecom operators shall be announced and filed with the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality.

Telecommunications users shall have the right to choose any type of telecommunications services provided pursuant to the law.

Article 31 When a telecommunications user applies for telecommunications terminal equipment to be installed or reinstalled, the telecom operator shall guarantee installation and connection within the announced time frame. In the event of non-installation or non-connection within the time frame which is attributable to the telecom operator, the telecom operator shall pay a default penalty of 1% per day of the installation fee, reinstallation fee, or any other fee to the telecommunications user.

Article 32 Where a telecommunications user reports a telecommunications service malfunction, the telecom operator shall repair or reconnect the service within 48 hours in urban areas and 72 hours in rural areas upon receipt of the report. If the telecom operator is unable to repair or reconnection within the time frame, it shall forthwith notify the telecommunications user and waive the monthly rental fee during the malfunction period, except where the telecommunications service malfunction is attributable to the telecommunications terminal equipment.

Article 33 Telecom operators shall facilitate fee payment and inquiries by telecommunications users. Where a telecommunications user requests for a breakdown of charges for domestic long-distance calls, international communications, mobile communications, information services etc, it shall be provided by the telecom operator free of charge.

Upon occurrence of abnormally large amount of telecommunications fee of a telecommunications user, the telecom operator shall inform the telecommunications user as soon as possible, and adopt the corresponding measures.

“Abnormally large amount of telecommunications fee” referred to in the preceding paragraph shall mean five times or more of the average telecommunications fee for the past three months of the said telecommunications user.

Article 34 Telecommunications users shall pay telecommunications fees in full to the telecom operator promptly in accordance with the agreed payment deadline and method. Where a telecommunications user fails to pay telecommunications fee within the stipulated period, the telecom operator shall have the right to require the telecommunications user to pay the telecommunications fee retrospectively and may impose a default penalty of 0.3% per day of the arrears.

Where the telecommunications user fails to pay the telecommunications fee during the 30-day period from payment deadline, the telecom operator may suspend the telecommunications service. Where the telecommunications user fails to pay the telecommunications fee or defaults penalty during the 60-day period from suspension of telecommunications service, the telecom operator may terminate the service and seek recourse of the arrears and default penalty pursuant to the law.

Mobile telecom operators may agree with telecommunications users on payment deadlines and methods, without restriction of the timeframes stipulated in the preceding paragraph.

Telecom operators shall resume suspended telecommunications services within 48 hours upon retrospective settlement of arrears and default penalty by the telecommunications user.

Article 35 Where the provision of normal telecommunications services is or may be affected by construction, network development etc, the telecom operator shall promptly notify telecommunications users within the stipulated time frame, and submit a report to the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality.

In the event of suspension of telecommunications services due to the reasons stipulated in the preceding paragraph, the telecom operator shall reduce or waive the corresponding fees for telecommunications users for the suspension period.

Upon occurrence of the circumstances mentioned in the first paragraph of this Article, where the telecom operator fails to promptly notify telecommunications users, it shall compensate the telecommunications users for the losses resulting therefrom.

Article 36 Telecom operators providing local telephone services and mobile telephone services shall provide community nature telecommunications services such as calls to the police or fire department to report fire, robbery, medical emergency, traffic accident etc, and shall ensure that the communication lines are accessible.

Article 37 Telecom operators shall promptly provide equal and reasonable access services to group users who access their telecommunications network through trunk.

Telecom operators shall not suspend access services arbitrarily without approval.

Article 38 Telecom operators shall establish and improve upon their internal service quality control system, and may formulate, announce and implement enterprise standards which are higher than the telecommunications service standards stipulated by the State.

Telecom operators shall adopt various measures to listen to the opinions of telecommunications users, accept public supervision, and continuously improve upon the quality of their telecommunications services.

Article 39 Where the telecommunications services provided by a telecom operator fail to attain the telecommunications service standards stipulated by the State or its announced enterprise standards, or where a telecommunications user disagrees to pay telecommunications fees, the telecommunications user shall have the right to request the telecom operator to resolve the matter. Where the telecom operator refuses to resolve the matter, or where the telecommunications user is not satisfied with the result of the resolution, the telecommunications user shall have the right to lodge a complaint with the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality or other authorities concerned. The authorities shall promptly handle the complaint and respond to the complainant within 30 days from receipt of the complaint.

Where a telecommunications user disagrees to pay local telephone fees, the telecom operator shall, at the request of the telecommunications user, provide the basis for payment of local telephone fees free of charge, and shall be obligated to adopt the requisite measures to assist the telecommunications user in finding the cause of the problem.

Article 40 Telecom operators shall not commit any of the following acts in the provision of telecommunications services:

(1) Adopt any means to restrict use of their telecommunications services by telecommunications users;

(2) Restrict purchase of designated telecommunications terminal equipment by telecommunications users, or disallow telecommunications users to use their own telecommunications terminal equipment which has obtained a network access;

(3) Refuse, delay, or suspend provision of telecommunications services to telecommunications users without a proper reason;

(4) Fail to perform undertakings made to telecommunications users, or make misleading false propaganda; or

(5) Use improper means to make things difficult for telecommunications users, or retaliate against telecommunications users who have lodged a complaint.

Article 41 Telecom operators shall not perform any of the following acts in the course of their telecommunications businesses:

(1) Restrict selection of telecommunications services provided legitimately by other telecom operators;

(2) Provide unreasonable cross-subsidies for different services that it offers; or

(3) Conduct unfair competition in providing telecommunications services below cost to telecommunications business to exclude its competitors.

Article 42 The information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality shall, on the basis of its purview, supervise and inspect the quality of the telecommunications service provided and business operation undertaken by telecom operators, and publicly announce the results of the supervision and spot-checks.

Article 43 Telecom operators shall perform the obligation to provide the corresponding telecommunications universal services pursuant to the relevant provisions of the State.

The information technology administration department of the State Council may adopt designated methods or tender and bidding methods to determine the specific obligations of telecom operators for provision of telecommunications universal services.

The administrative measures on cost compensation for telecommunications universal services shall be formulated by the information technology administration department of the State Council jointly with the finance department and the pricing department of the State Council, and shall be announced and implemented upon approval of the State Council.

CHAPTER 4 — TELECOMMUNICATIONS DEVELOPMENT

Section 1 — Development of Telecommunications Facilities

Article 44 The construction of public telecommunications networks, private telecommunications networks, and radio and television transmission networks shall comply with the overall planning and industry administration by the information technology administration department of the State Council.

The approval of the information technology administration department of the State Council shall be obtained before submitting an application for examination and approval pursuant to the procedures for basic development projects of the State.

Basic telecommunications construction projects shall be included in the urban development master plans and the village and town development master plans of the People’s Government at all levels.

Article 45 Urban development and village and town development shall include establishment of complementary telecommunications facilities. Telecommunications cables and distribution facilities within buildings and telecommunications cables within the scope of land use for development projects shall be included in the design documents for the development project, and construction and acceptance inspection thereof shall be carried out simultaneously with the construction and acceptance inspection of the development project. The required budget shall be included in the estimated budget of the development project.

The relevant units or authorities for the planning or construction of roads, bridges, tunnels, underground railways etc, shall notify the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality and the relevant telecom operators beforehand on reservation of telecommunications cables etc.

Article 46 Basic telecom operators may attach telecommunications lines, or install public telecommunications facilities such as small antennas and mobile communication base stations on civil buildings, provided that they have notified the property right holder or user of the building beforehand, and paid a use fee to the property right holder or user of the building in accordance with the fee rates stipulated by the people’s government of the province, autonomous region or centrally-administered municipality.

Article 47 A marking shall be made on hidden telecommunications facilities such as underground and underwater telecommunications facilities, and aerial telecommunications facilities pursuant to the relevant provisions of the State.

Basic telecom operators shall obtain approval from the information technology administration department of the State Council to construct undersea telecommunications cables, and complete the relevant formalities pursuant to the law upon obtaining the opinions of the relevant authorities. Undersea telecommunications cables shall be indicated on sea charts by the relevant department(s) of the State Council.

Article 48 No unit or individual shall alter or remove telecommunications lines or other telecommunications facilities of others arbitrarily. Where such alteration or removal is necessary under special circumstances, the consent of the property right holder of the said telecommunications facilities is required. The unit or individual requesting for alteration or removal shall bear the alteration or removal expenses, and compensate economic losses arising therefrom.

Article 49 Persons engaging in construction, manufacturing, planting of trees etc shall not endanger the security of telecommunications lines or other telecommunications facilities, or obstruct the accessibility of such lines. Where telecommunications security may be compromised, the relevant telecom operator shall be notified beforehand, and the unit or individual engaging in the activities shall be responsible for adopting the requisite security measures.

Persons who violate the provisions of the preceding paragraph, causing damage to the telecommunications lines or other telecommunications facilities or obstructing the accessibility of telecommunications lines, shall restore the original status, or carry out repair and compensate economic losses arising therefrom.

Article 50 Development of telecommunications lines shall maintain the requisite buffer zone with existing telecommunications lines. Where it is impossible to do so, or where it is necessary to pass through or use existing telecommunications lines, the property right holder of the existing telecommunications lines shall be consulted, and an agreement shall be signed. Where the parties cannot reach an agreement, the matter shall be coordinated and resolved by the information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality in accordance with the circumstances.

Article 51 No organisation or individual shall prevent or hinder basic telecom operators from carrying out development of telecommunications facilities or provision of public telecommunications services to telecommunications users pursuant to the law, except for areas prohibited or restricted by the State.

Article 52 Upon approval by the public security and traffic control authorities, and under the prerequisite of ensuring traffic safety and flow, telecommunications vehicles performing special communication, emergency telecommunications, and emergency repair or rescue missions, may not be subject to the restriction of various “no motor vehicle access” signs.

Section 2 — Telecommunications Network Access

Article 53 The State shall implement a network connection licensing system for telecommunications terminal equipment, radio telecommunications equipment, and interconnection-related equipment.

Telecommunications terminal equipment, radio telecommunications equipment, and interconnection-related equipment accessing a public telecommunications network shall comply with the standards stipulated by the State, and obtain a network connection permit.

The list of telecommunications equipment subject to network connection licensing shall be formulated, announced and implemented by the information technology administration department of the State Council jointly with the product quality supervision department of the State Council.

Article 54 The application for a network connection permit for telecommunications equipment shall be submitted to the information technology administration department of the State Council, together with the testing report issued by a telecommunications equipment testing agency recognised by the product quality supervision department of the State Council, or a product quality certificate issued by a certification body.

The information technology administration department of the State Council shall examine an application and the testing report or product quality certificate within 60 days from receipt of the application for the network connection permit for telecommunications equipment. A network connection permit shall be issued to successful applicants; and unsuccessful applicants shall be notified in writing and the reason for non-approval shall be stated.

Article 55 Telecommunications equipment manufacturing enterprises shall guarantee the quality and reliability of telecommunications equipment which has obtained a network connection permit, and shall not lower product quality or performance.

Telecommunications equipment manufacturing enterprises shall affix a network connection permit mark on their telecommunications equipment that has obtained a network connection permit.

The product quality supervision authority of the State Council shall work together with the information technology administration department of the State Council in making spot checks to follow up and supervise the quality of telecommunications equipment that has obtained a network connection permit, and shall announce the results of the spot-checks.

CHAPTER 5 — TELECOMMUNICATIONS SECURITY

Article 56 No organisation or individual shall make use of telecommunications networks to produce, replicate, publish, or disseminate any information contents which:

(1) Are opposed to the basic principles defined in the Constitution;

(2) Compromise national security, divulge State secrets, subvert State power, or undermine national unity;

(3) Harm national honour or interest;

(4) Incite hatred or discrimination against ethnic minorities, or undermine racial unity;

(5) Undermine religious policies of the State, or propagate cults or feudal superstitions;

(6) Disseminate rumours, disrupt public order, or undermine social stability;

(7) Propagate obscenity, pornography, gambling, violence, homicide, or terrorism, or instigate crime;

(8) Humiliate or defame others, or harm the legitimate rights or interests of others; or

(9) Contain any other contents prohibited by laws and administrative regulations.

Article 57 No organisation or individual shall commit the following acts which compromise telecommunications network security or information security:

(1) Delete or modify the function of telecommunications network or the stored, processed or transmitted data and the applications;

(2) Make use of telecommunications network to steal or destroy information of others, or harm the legitimate rights and interests of others;

(3) Deliberately produce, replicate or spread computer virus, or use other means to attack others’ telecommunications facilities such as telecommunications network; or

(4) Carry out any other acts which compromise telecommunications network security and information security.

Article 58 No organisation or individual shall commit the following acts which disrupt the order of the telecommunications market:

(1) Lease international telecommunications lines, install interconnecting equipment illegally, or use other means to engage in unauthorised telecommunications businesses internationally or in the Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan;

(2) Connect to others’ telecommunications lines, replicate others’ telecommunications code illegally, or wittingly use illegally connected or replicated telecommunications equipment or codes;

(3) Forge or alter telephone cards and any other priced telecommunications service vouchers; or

(4) Use fake identity or other’s identity to complete network connection formalities and to use mobile telephone network.

Article 59 Telecom operators shall establish and improve their internal security protection system, and implement a security protection accountability system pursuant to the relevant provisions of the State on telecommunications security.

Article 60 Telecom operators shall achieve synchronised planning, development and operation for design, development and operation of telecommunications networks with national security and telecommunications network security requirements.

Article 61 Telecom operators shall forthwith cease transmission, retain the relevant records, and report to the relevant State authorities upon discovery of transmission of information contents which are described in Article 56 in the course of their public information services.

Article 62 Telecommunications users shall be responsible for the contents transmitted by them in the use of telecommunications network and the consequences thereof. Where the information transmitted by a telecommunications user through telecommunications network involves confidential State information, confidentiality measures shall be adopted pursuant to the provisions of the Law on Protection of State Secrets.

Article 63 Under emergency circumstances such as occurrence of a major natural disaster, upon approval by the State Council, the information technology administration department of the State Council may make use of various telecommunications facilities to ensure that important communication is unimpeded.

Article 64 International communication business within the People’s Republic of China shall be conducted through the International Communication Exchange Administration approved and established by the information technology administration department of the State Council.

Communication between the Mainland China and the Hong Kong Special Administrative Region, the Macao Special Administrative Region, or Taiwan shall be handled with reference to the provisions of the preceding paragraph.

Article 65 The freedom and communication confidentiality of telecommunications users using telecommunications pursuant to the law shall be protected by law. Except for inspection of telecommunications contents by the public security authorities, the national security authorities, or the People’s Procuratorate in accordance with the procedures stipulated by the law for the purpose of national security or criminal investigation, no organisation or individual shall inspect telecommunications contents for any reason.

Telecom operators and their staff shall not provide the contents of information transmitted by telecommunications users through telecommunications network to others arbitrarily.

CHAPTER 6 — PENALTY PROVISIONS

Article 66 For violation of the provisions of Article 56 and Article 57 of these Regulations which constitutes a criminal offence, criminal liability shall be pursued in accordance with the law. Where the violation does not constitute a criminal offence, the offender shall be punished by the public security authorities or national security authorities pursuant to the provisions of the relevant law and administrative regulations.

Article 67 For the acts referred to in items (2), (3) and (4) of Article 58 of these Regulations which disrupt the order of the telecommunications market and constitute a criminal offence, criminal liability shall be pursued in accordance with the law. Where the act does not constitute a criminal offence, the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality shall, in accordance with its purview, order the offender to make correction, confiscate illegal income, and impose a fine ranging from three to five times the amount of the illegal income. Where there is no illegal income, or the illegal income is less than RMB10,000, a fine ranging from RMB10,000 to RMB100,000 shall be imposed.

Article 68 In the event of forgery, fraudulent use, or transfer of a telecommunications business permit or a telecommunications equipment network connection permit, or fabrication of network connection permit number on telecommunications equipment in violation of these Regulations, the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality shall, in accordance with its purview, confiscate the illegal income, and impose a fine ranging from three to five times the amount of the illegal income. Where there is no illegal income or the illegal income is less than RMB10,000, a fine ranging from RMB10,000 to RMB100,000 shall be imposed.

Article 69 Any offender who commits the following acts in violation of the provisions of these Regulations shall be ordered by the information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, in accordance with its purview to make correction, confiscate the illegal income, and impose a fine ranging from three to five times the amount of the illegal income; where there is no illegal income, or the illegal income is less than RMB50,000, a fine ranging from RMB100,000 to RMB1 million shall be imposed; in serious cases, the offender shall be ordered to suspend business operation and make correction:

(1) Violation of the provisions of the third paragraph of Article 7 in conducting unauthorised operation of telecommunications business as described in item (1) of Article 58, or operation of telecommunications business beyond the scope of business;

(2) Establishment of international communication gateways to carry out international communication without obtaining the approval of the information technology administration department of the State Council;

(3) Unauthorised use, transfer, or leasing of telecommunications resources, or alteration of the use of telecommunications resources;

(4) Unauthorised suspension of interconnection or access services; or

(5) Refusal to perform the obligation to provide universal service.

Article 70 For the following acts which violate the provisions of these Regulations, the information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality shall, in accordance with its purview, order the offender to make correction, confiscate the illegal income, and impose a fine ranging from one to three times the amount of the illegal income; where there is no illegal income or the illegal income is less than RMB10,000, a fine ranging from RMB10,000 to RMB100,000 shall be imposed; in serious cases, the offender shall be ordered to suspend business operation and make correction:

(1) Collection of additional fees for telecommunications interconnection which violates the provisions;

(2) Failure to adopt effective measures to eliminate technical malfunction of network communication;

(3) Unauthorised provision of the contents of information transmitted by telecommunications users through telecommunications network to others; or

(4) Refusal to pay telecommunications resources use fees pursuant to the provisions.

Article 71 Any offender who engages in unfair competition in telecommunications business activities in violation of the provisions of Article 41 of these Regulations shall be ordered by the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality in accordance with its purview to make correction and be subject to a fine ranging from RMB100,000 to RMB1 million. In serious cases, the offender shall be ordered to suspend business operation and make correction.

Article 72 Any offender who commits the following acts which violate the provisions of these Regulations shall be ordered by the information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, in accordance with its purview to make correction and impose a fine ranging from RMB50,000 to RMB500,000; in serious cases, the offender shall be ordered to suspend business operation and make correction:

(1) Refuses interconnection request of other telecom operators;

(2) Refuses to execute the interconnection decision made by the information technology administration department of the State Council or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality pursuant to the law; or

(3) Provides interconnection to other telecom operators, the service quality of which is lower than the service quality of interconnection within the network and to its subsidiaries or branches.

Article 73 Telecom operators who violate the provisions of the first paragraph of Article 33 or the second paragraph of Article 39 of these Regulations in refusing to provide a breakdown of charges for domestic long-distance calls, international communications, mobile communications, information services etc to telecommunications users free of charge, or refusing to provide the basis for payment of local telephone fees free of charge to telecommunications users who disagree to pay local telephone fees, shall be ordered by the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality to make correction and apologise to the telecommunications users. Where the telecom operator refuses to make correction and apologise, the authorities shall issue a warning and impose a fine ranging from RMB5,000 to RMB50,000.

Article 74 Any offender who violates the provisions of Article 40 shall be ordered by the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality to make correction, apologise to the telecommunications users, and compensate losses incurred by the telecommunications users. Where an offender refuses to make correction, apologise and compensate losses, a warning shall be issued and a fine ranging from RMB10,000 to RMB100,000 shall be imposed. In serious cases, the offender shall be ordered to suspend business operation and make correction.

Article 75 Any offender who commits the following acts which violate the provisions of these Regulations shall be ordered by the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality to make correction and impose a fine ranging from RMB10,000 to RMB100,000:

(1) Sale of telecommunications terminal equipment which does not carry a network connection permit;

(2) Prevent or hinder telecom operators from providing public telecommunications services to telecommunications users; or

(3) Unauthorised alteration or removal of telecommunications lines or telecommunications facilities of others.

Article 76 Any offender who violates the provisions of these Regulations in lowering of product quality or performance after obtaining the telecommunications equipment network connection permit, shall be punished by the product quality supervision authorities pursuant to the provisions of the relevant laws and administrative regulations.

Article 77 For the acts prohibited by Article 56, Article 57 and Article 58, where the case is serious, the telecommunications business permit shall be revoked by the issuing authority.

Upon revocation of a telecommunications business permit, the information technology administration department of the State Council, or the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, shall notify the enterprise registration authorities.

Article 78 Where the personnel of the information technology administration department of the State Council, or of the telecommunications administration authorities of the province, autonomous region or centrally-administered municipality, is guilty of dereliction of duties, abusing official powers, or corruption, if the case constitutes a criminal offence, his/her criminal liability shall be pursued in accordance with the law. Where the case does not constitute a criminal offence, the offender shall be subject to administrative punishment in accordance with the law.

CHAPTER 7 — SUPPLEMENTARY PROVISIONS

Article 79 Detailed measures on investment and operation of telecommunications businesses in the Mainland China by foreign organisations or individuals and investment and operation of telecommunications businesses by organisations or individuals from the Hong Kong Special Administrative Region, the Macao Special Administrative Region or Taiwan shall be formulated separately by the State Council.

Article 80 These Regulations shall be implemented with effect from the date of promulgation.

Appendix:

Classification of Telecommunications BusinessesBasic telecommunications services:

(1) Fixed network domestic long-distance and local telephone services;

(2) Mobile network telephone and data services;

(3) Satellite communication and satellite mobile communication services;

(4) Internet and other public data transmission services;

(5) Leasing and sale of broadband, wave length, optical fibre, optical cable, pipeline and other network elements;

(6) Network load capacity, access, network outsourcing etc;

(7) International communication infrastructure and international telecommunications services;

(8) Radio paging services;

(9) Resold basic telecommunications services.

Services (8) and (9) shall be administered with reference to value-added telecommunications services.

Value-added telecommunications services

(1) Email;

(2) Voice mail;

(3) Online information data storage and retrieval;

(4) Electronic data exchange;

(5) Online data and transaction processing;

(6) Value-added facsimile service;

(7) Internet access service;

(8) Internet information service;

(9) Video conference service.

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