Administrative Measures for the Licensing of Telecommunications Business

Administrative Measures for the Licensing of Telecommunications Business

Order of the Ministry of Industry and Information Technology of the People's Republic of China No.42

July 3, 2017

The Administrative Measures for the Licensing of Telecommunications Business were deliberated and adopted at the 31st ministerial affairs meeting of the Ministry of Industry and Information Technology on June 21, 2017, which are hereby promulgated for implementation as of September 1, 2017. In the meantime, the Administrative Measures for the Licensing of Telecommunications Business issued by the Ministry of Industry and Information Technology on March 5, 2009 (Order of the Ministry of Industry and Information Technology No. 5) shall be simultaneously repealed.

Minister Miao Wei

Administrative Measures for the Licensing of Telecommunications Business

Chapter I General Provisions

Article 1 In order to enhance the administration of the licensing of telecommunications business, these Measures have been instituted in accordance with the provisions of the Telecommunications Regulations of the People's Republic of China and other relevant laws and administrative regulations.

Article 2 These Measures apply to the application, approval, utilization and administration of the telecommunication operating license (the "operating license") within the territory of the People's Republic of China.

Article 3 The Ministry of Industry and Information Technology and the local communications administrations of all the provinces, autonomous regions and municipalities directly under the Central Government (the "Telecommunications Administrations") shall be the approval and administrative agencies for an operating license.
The approval and administration of an operating license shall uphold the principle of providing convenience for the masses, efficiency, openness, equity and fairness.
The Ministry of Industry and Information Technology shall establish a comprehensive telecommunications business administrative platform (the "Administrative Platform"), promote the online application, approval and administration of an operating license and the publication, inquiry and sharing of relevant information, and optimize the credit management mechanism.

Article 4 The telecommunications business shall be permitted to be conducted provided that an operating license issued by the Telecommunications Administrations has been obtained.
Telecommunications operators shall abide by the provisions as prescribed in their operating licenses, and be subject to and render assistance with the regulation exercised by the Telecommunications Administrations in their telecommunications operation activities.
Telecommunications operators shall be under the protection of the laws provided that they conduct telecommunications business in accordance with the provisions as prescribed in their operating licenses.

Chapter II Application for an Operating License

Article 5 Telecommunications operators shall be permitted to conduct basic telecommunications business to the extent that they satisfy the following conditions:
1. The operators are a company established to specialize in basic telecommunications business according to the law and the state holds at least 51% of the equity or shares of the company;
2. They have completed their business development research reports and worked out network technical solutions;
3. They have funds and professionals fit for their business activities;
4. They have the premises, facilities and corresponding resources for conducting business activities;
5. They have the reputation and capacity for providing users with long-term services;
6. They conduct business with the minimum registered capital of CNY100 million within a province, autonomous region and municipality directly under the Central Government; they carry on business with the minimum registered capital of CNY1 billion across China or cross-province, autonomous region and municipality directly under the Central Government;
7. The operators and their major investors and chief business or managerial personnel have not been included in the list of dishonest operators of telecommunications business;
8. Other conditions as prescribed by the state.

Article 6 Telecommunications operators shall be permitted to conduct value-added telecommunications business to the extent that they meet the following conditions:
1. The operators are a company established according to the law;
2. They have funds and professionals fit for their business activities;
3. They have the reputation and capacity for providing users with long-term services;
4. They conduct business with the minimum registered capital of CNY1 million within a province, autonomous region and municipality directly under the Central Government; they carry on business with the minimum registered capital of CNY10 million across China or cross-province, autonomous region and municipality directly under the Central Government;
5. They have the necessary premises, facilities and technical solutions;
6. The operators and their major investors and chief business or managerial personnel have not been included in the telecommunications business dishonesty list;
7. Other conditions as prescribed by the state.

Article 7 Where a company applies for an operating license for basic telecommunications business, it shall submit the following application materials to the Ministry of Industry and Information Technology:
1. A written application for conducting basic telecommunications business signed by the legal representative of the company, encompassing the types of telecommunications business to be applied for, scope of business and name and contact information of the company;
2. A duplicate and photocopy of the business license of the company;
3. The corporate profile, including the basic situation of the company, the telecommunications division to be established and management, technical workforce and business and managerial personnel, the premises and facilities fit for its business activities and so on;
4. The articles of association, shareholdings and shareholders of the company;
5. The business development research report, involving the telecommunications business development and practice plan, service items, scope of business, the charge plan, expected service quality and profit analysis, etc.;
6. The network technical solutions, including network architecture, network size, the network building-up plan, networking plan, technical standards, telecommunications equipment configuration and the telecommunications resource utilization plan, etc.;
7. The measures for providing users with long-term services and ensuring quality;
8. The measures for ensuring network and information security;
9. The relevant materials proving its corporate reputation;
10. A letter of commitment to conduct telecommunications business according to the law which is signed by the legal representative of the company.

Article 8 Where a company applies for an operating license for value-added telecommunications business, it shall submit the following application materials to the Ministry of Industry and Information Technology:
1. A written application for conducting basic telecommunications business signed by the legal representative of the company, encompassing the types of telecommunications business to be applied for, scope of business and the name and contact information of the company;
2. A duplicate and photocopy of the business license of the company;
3. The corporate profile, including the basic situation of the company, the personnel, premises and facilities to be assigned for the future telecommunications business;
4. The articles of association, shareholdings and shareholders of the company;
5. The telecommunications business development and practice plans and technical solutions;
6. The measures for providing users with long-term services and ensuring quality;
7.
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