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Chapter Law Content

Chapter 3 Operation Administration
Section 4 International Network Business
Article 62
An operator shall, depending upon the services provided by it, construct or procure the infrastructure facilities for completion of the international telecommunications, including international submarine cable landing station, back-haul facilities, international gateway exchange facilities, satellite transponders, satellite earth stations and exchange equipment, and other auxiliary facilities.
Article 63
Where it is necessary for an operator at the initial phase of operation to request for a lease from another operator the satellite or submarine cable facilities required for intentional telecommunications, such other operator shall not reject such request without proper reason.
The terms and conditions of leasing the facilities required for international telecommunications as referred to in the preceding Paragraph shall be negotiated by and between operators on a fair and reasonable basis.
In the case where the request by an operator for a lease of the facilities required for international telecommunications is made due to technical constraint, the rental shall be calculated on the basis of the lesser cost.
Upon execution of the agreement as referred to in Paragraph 2, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
Article 64
At the initial phase of operation, an operator may request another operator, that has procured the Indefeasible Rights of Use of international submarine cable capacity ("IRUs"), to act as an intermediary to assist in negotiations with international submarine cable organization for obtaining the IRUs to use the international submarine cable capacity, or to transfer a part of its IRUs, of which the royalty or licensing fees for the IRUs, the price for the partial transfer or other terms and conditions shall be subject to negotiations between the operators concerned.
such other operator who has procured the indefeasible rights of use of international submarine cable capacity shall not reject a request made pursuant to the preceding Paragraph without proper reason.
Where an operator is operating its international network business by means of international leased circuits, the competent authority may, depending upon the actual needs, require, either ex officio or upon application, the operator to negotiate with the international submarine cable organization for conversion of its leased circuits into IRUs, and to provide a part thereof for use by other Operators pursuant to the preceding Paragraph.
Upon execution of the agreement as referred to in Paragraph 1, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
The indefeasible rights of use of international submarine cable capacity as referred to in Paragraph 1 means the right of an operator that, based on its membership at an international submarine cable organization or pursuant to the applicable agreement for operation and management of an international submarine cable, is entitled to use a specified proportion of the telecommunications capacity of the international submarine cable.
Article 65
An operator may request another operator, who that procured the right to use international satellite circuits, to act as an intermediary to assist in negotiations with international satellite telecommunication organization or its licensee for obtaining the right to use the international satellite circuits in accordance with the applicable regulations of the international satellite telecommunication organization, or to transfer a part of such other operator's right to use, of which the royalty or licensing fees for the right to use, the price for the partial transfer or other terms and conditions shall be subject to negotiations between the operators concerned, or between the operators and the international satellite telecommunication organization or its licensees.
Such other operator who has procured the right to use the international satellite circuits shall not reject a request made pursuant to the preceding Paragraph without proper reason.
Upon execution of the agreement as referred to in Paragraph 1, the requesting party shall report and submit the agreement to the competent authority for records within one month thereafter.
Article 66
Where a foreign country is not a member of the World Trade Organization, or where there is only one international telecommunications operator within that foreign country, any agreement between an operator and a telecommunications operator of that foreign country in relation to the handling of international telecommunication traffic and settlement rate shall be made in compliance with the principles of International Proportional Returns and Parallel Accounting Rate.
The International Proportionate Returns as referred to in the preceding Paragraph means an operator shall request to be included in an agreement under which the incoming volume of any international telecommunications traffic originated from the network operated by a specific foreign telecommunications operator shall be divided and delivered to the respective operators of our country in such a percentage as proportional to the volume of outgoing international traffic originated from the respective operators of our country and terminated at the network operated by such foreign telecommunications operator, out of the total volume of outgoing international traffic originated from our country and terminated at the network operated by such foreign telecommunications operator.
The principle of Parallel Accounting Rate as referred to in Paragraph 1 means the principle under which the accounting rates to be mutually agreed upon through negotiations between an operator and a specific foreign telecommunications operator in regard to the international telecommunications traffic shall be equally applicable to all other domestic operators without any discriminatory treatment. This principle shall apply to other telecommunications operators in that foreign country as well.
The agreement referred to in Paragraph 1 shall be made through negotiations between the representative(s) jointly appointed by operators and the telecommunication operators of a foreign country, or shall be made in accordance with the current settlement rate.
Before negotiations is proceeded pursuant to the preceding Paragraph, all operators shall negotiate and mutually agree upon the rights and obligations between themselves together with other terms and conditions in advance, and such an agreement and any amendments thereto shall be reported to the competent authority for review and approval.
Article 67
Where a foreign country is a member of the World Trade Organization and there are two or more international telecommunication operators in that foreign country, the agreement in relation to the handling of international telecommunication traffic and settlement rate shall be subject to negotiations between an operator and a telecommunication operators in that foreign country.
Any agreement referred to in the preceding Paragraph shall not hinder or interfere with the negotiations between other operators and foreign telecommunications operators, and shall not cause foreign telecommunications operators to refrain from providing international telecommunications services to other operators, and shall not otherwise create other anti-competitive practice.
Article 68
An agreement relating to the handling of international telecommunications traffic and settlement rate between an operator and a foreign telecommunications operator shall be reported and submitted to the competent authority for records within one month after execution thereof.
In the event where there is a significant change on the international practice of the accounting rate for international telecommunications, or where there is a change in the competition within the telecommunications market of foreign countries, or where there are any other material events, the competent authority may make a announcement to amend the foreign countries to which the preceding two Articles applies, and operators shall then implement the necessary adjustment to the pertinent agreements in accordance with such announcement.
Article 69
Provisions of Articles 56 may apply, mutatis mutandis, to international network business.
Provisions of Articles 63, 64, 65, 66, 67, 68 may also apply to the applicants who have obtained an approval for establishment.
Article 70
The telecommunication networks run by operators for communications with Mainland China shall be conducted by either of the following means:
1. Communications shall be established via communication networks that are connected by a circuit relay via a third region or an international telecommunication network (including international submarine cables, international satellites, international communication exchange facilities, and international relay equipment).
2. Communications shall be established via communication networks that are connected by other means to be promulgated.
Applicants or operators that provide communications by means of the second item of Paragraph 1 shall accord with the regulations of the international network.
Applicants or operators that install telecommunications line facilities and equipment in order to provide communications by means of the second item of Paragraph 1 shall provide the necessary interconnection circuit and functions for the interception of communications. Those related to national defense and security shall carry out physical segregation and conduct regular security inspections.
In addition, applicants or operators that provide communications by means of the second item of Paragraph 1 shall ensure the interception of communications and the management of information security conform to the related regulations stipulated by related authorities.