Miit: will be open to private capital in broadband access market

On December 25, the Ministry on its website today on open to private capital, issued formal notices of the broadband access market (hereinafter “the notice”).
Announced that encourages private enterprises to participate in broadband access network construction and operation of facilities to encourage private enterprise and investment in broadband access networks, and cooperate with basic telecommunications enterprises, encouraging private companies to provide broadband resale services.
Notices also make provisions for basic telecommunications enterprises may not contain exclusivity clauses of agreements signed with private enterprises, basic telecommunications business in providing broadband Internet resources related to private enterprise, its quality of service quality of service should not be lower than their businesses, the corresponding prices shall be determined in consultation with private enterprises.
The Ministry also announced the pilot program, the first pilot city for a total of 16: Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, Hangzhou, Ningbo, Xiamen, Qingdao, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing, Chengdu, pilots subject to legally established private enterprises, encourage customer premises network operation experience of private enterprises participating in the pilot, the pilot for three years.
Following is a circular full text:
For implement implementation party of 18 big and 18 session three in the, and four in the plenary spirit, according to State on issued “broadband China” strategy and the implementation programme of notification, and on promoting information consumption expanded domestic demand of several views and on encourages and guide civil investment health development of several views of related requirements, full played civil capital flexible, and innovation of advantage, industrial and information Department decided encourages civil capital to variety mode entered broadband access market, Promoting the development of broadband infrastructure and service level. Matters relating to notices are as follows:
18 big and 18 session three in the, and four in the plenary spirit, according to State on issued “broadband China” strategy and the implementation programme of notification, and on promoting information consumption expanded domestic demand of several views and on encourages and guide civil investment health development of several views of related requirements, full played civil capital flexible, and innovation of advantage, industrial and information Department decided encourages civil capital to variety mode entered broadband access market, promoting broadband network based facilities development and business service level upgrade. Matters relating to notices are as follows:
, Encouraging private enterprises to participate in broadband access network construction and operation of facilities. Private enterprises in support of broadband access network services pilot (the pilot programme see annex), enterprises can build the network infrastructure required for broadband access network services under its own brand to provide users with broadband Internet access.
Second, encouraging private enterprises to participate in broadband access with basic telecommunications network investment and enterprise cooperation. Supports private enterprises with capital cooperation, business agent, network maintenance and other forms, and basic telecommunications companies to cooperate in sharing the proceeds and basic telecommunications brand provides users with broadband Internet access.
Third, encouraging private companies to provide broadband resale services. Support of Internet access (ISP) business license of the private enterprises, from Basic Telecom leased-access network resources under its own brand to provide users with broadband Internet access.
IV, basic telecommunications business in accordance with the principle of fair and equal consultation, active cooperation with private enterprise, should strictly abide by the State laws and regulations in the process of cooperation, relevant trade regime and to the following provisions:
(A) the basic telecommunication Enterprise shall not contain exclusivity clauses of agreements signed with private enterprises.
(B) Basic Telecom businesses in providing broadband Internet resources related to private enterprise, its quality of service quality of service should not be lower than their businesses, the corresponding prices shall be determined in consultation with private enterprises.
(C) in response to section II of this opinion, basic telecommunications companies should be actively explored and cooperation of mutual benefit and win-win development mode, the Group should strengthen the management of the company to which it belongs, effectively protect the legitimate rights and interests of users, and gradually establish a standardized system. Lessons and questions in a timely manner, and submission to the telecommunications regulatory agencies in cooperation with private enterprises on a regular basis the situation.
(D) according to article III of this opinion, basic telecommunications enterprises should take stock of private enterprises to open broadband access network resources, cooperative approach to the public sector and cooperation matters. Group work to actively seek to advance broadband resale, gradually establish appropriate business processes and management practices, and orderly implementation. Find sublease again resell broadband resources, should entrust the joint venture ceased to sublet immediately reselling, and properly handle the aftermath has developed a user.
Five private enterprises participating in the resale of broadband and broadband access network construction and operation process, should strictly abide by relevant State laws and regulations, the management requirements of the telecommunications industry and the following provisions:
(A) at the time of construction of broadband access network infrastructure, shall strictly abide by the FTTH standards and regulations on communication engineering construction. While communication facilities shall comply with construction and sharing of infrastructure, protection policies and regulations, prohibitions and real estate developers, property management companies or third parties such as owners ‘ Committee signed the agreements contain exclusivity clauses to protect users ‘ freedom of choice.
(B) the Alliance Internet backbone networks now require the basic telecommunications business of metropolitan area network access, different operational nodes may not be directly connected to city, its range of an access network construction and connecting (the gathering) node position should report to the telecommunications regulators.
(Iii) Internet access service under its own brand name through the development of user, should be equipped with a dedicated customer service department and customer service staff, service standards and related requirements to establish and improve the service quality management system. Must sign a service agreement with the user. To be expressly agreed upon in the agreement access rate, tariff and prepaid return when advance termination of the enterprise management, dispute handling, and safeguard the legitimate rights and interests of the user.
(Iv) broadband resale services of private enterprises, and companies signed a cooperation agreement on basic telecommunications, clear both in the services, quality assurance, safety protection of user rights and user information, such as the Division of responsibilities sublease leased once again, access to network resources is strictly prohibited to resell. Before we engage in business, reporting to the telecommunications regulators and to regularly submit broadband resale developments.
Six, telecommunications regulatory bodies to organize local open broadband access market related work, exploring the perfect ex post regulatory policies, strengthen the supervision over acts of unfair competition in broadband access market, protect the user’s freedom of choice and fair access of enterprises to promote resource sharing, nurturing and maintaining a fair and impartial market environment.
Pilot plan to open broadband access network services
Purpose, pilot
Encouraging and guiding private capital to enter the telecommunications field, participation in the broadband network infrastructure and business operations, promoting the development of broadband network infrastructure and competition in the broadband service market, improving broadband innovation capacity and service levels, exploring the broadband access business development model, and gradually establish and perfect the management before, during and after the combination of regulatory systems, laying the Foundation for commercial use.
II, pilot operating range
Pilot enterprises according to the FTTH standards and co-construction and sharing of the relevant principles, you can build from the client to the network access server in whole or in part within the scope of cable communications network facilities, may carry out corresponding network element is leased or sold, including pilot enterprises to obtain Internet access service business license can also own brand provides Internet services to end users.
Broadband access network services belongs to the basic telecommunications services.
Three pilot, pilot cities and time
First group of pilot cities: Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, Hangzhou, Ningbo, Xiamen, Qingdao, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing and Chengdu. Ministry of industry and information technology, according to the pilot at the right moment to expand the pilot scope.
Pilot for 3 years.
Four, pilot
Pilot subject to legally established private enterprises, encourage customer premises network operation experience of private enterprises participating in the pilot. Specific eligibility requirements are as follows:
(A) the applicant is a legally established private companies.
(B) suitable for the operating funds subscribed minimum registered capital is 20 million Yuan.
(C) have at least 3 years experience in the telecommunications industry.
(D) have a and professionals engaged in business activities it is.
Enterprise technology head should has 8 years above broadband network construction and operations management experience, and has information communications and the related professional senior technology titles or equal professional level; enterprise financial head should has accountants above professional technology positions qualification or engaged in accounting work three years above experience; enterprise has information communications and the management related professional primary above (containing primary) titles or equal professional level of technology and management personnel not less than 20 people.
(E) possess the ability to provide long-term services to users.
Applicants must have a dedicated customer service department and customer service personnel, according to the service specifications and requirements establish service and quality management system, released statistics on consumer complaints and supervision of telephone services, receive user complaints, service assurance and market withdrawal of rehabilitation programmes.
(F) have the necessary venues and facilities.
Applicants should have a fixed office location, suitable for the broadband access network service business sites or marketing channel. Customer service, billing and management system must be established and operational management systems, to ensure system security.
(G) have the ability to network and information security
Applicants should establish safety management clearly responsible persons and contacts, networking and information security management systems and emergency response mechanisms, in accordance with the relevant regulatory requirements and technical standards to establish and improve network and information security safeguards.
(VIII) People’s Republic of China Telecommunications Ordinance, the telecommunications business license regulations and other laws and regulations of the other conditions.
Five, subject of approval
Commissioned by the Ministry of industry and information technology pilot cities, provinces (autonomous regions and municipalities) OFCOM is in charge of the local broadband access business for the applications to receive, review, and release pilot approval. Apply for a province where the pilot of the private enterprises in the pilot cities (autonomous regions and municipalities) apply to the Telecommunications Administration.
Six pilot requirements
(A) the basic telecommunication Enterprise shall not contain exclusivity clauses of agreements with the pilot enterprises.
(B) Basic Telecom companies pilot enterprise should be provided not less than the quality of their business access network connection, LAN bandwidth resources.
(C) the basic telecommunication enterprises and pilot enterprises should be based on the principle of fair and equal consultation, consultation resource Alliance broadband access price.
(D) the pilot enterprises building a wired communication network facilities, on implementation of the fiber to the home should be in strict compliance with the national standards: notice of FTTH, residential areas and residential buildings code for construction and acceptance of communications facilities and the residential areas and residential building code for engineering design of fiber to the home communications facilities in State regulations on communication engineering construction. While communication facilities shall comply with construction and sharing of infrastructure, protection policies and regulations, prohibitions and real estate developers, property management companies or third parties such as owners ‘ Committee signed the agreements contain exclusivity clauses to protect users ‘ freedom of choice.
(E) the pilot enterprises in providing service to users, and should strictly adhere to industry standards and regulatory requirements, and signed with the user service agreement. To be expressly agreed upon in the agreement access rate, tariff and prepaid return when the advance termination of the enterprise management, dispute resolution approach. Such as early termination of the pilot operation, under the Telecommunications Ordinance, the telecommunications business license management, telecommunication service specification and other related requirements, and user agreement to report to the Department in charge of telecommunications and to inform users in advance, properly handle return prepaid, billing, dispute resolution and other remedial action, safeguard developing users ‘ legitimate rights and interests.
(Six) pilot Enterprise Alliance Internet backbone network must via based telecommunications enterprise of city domain network access, different to city of business node shall not straight even, leased of access network resources is strictly prohibited again sublet turned sale, its access network construction range and connection (brings together) node location to to where province (autonomous regions, and municipalities) Communications Authority report, and tie related sector do network and information security the work.
(G) pilot between company and user service quality problems, from pilot cities, provinces (autonomous regions and municipalities) belongs to complaints handled by the communications authority.
Seven, other
(A) the pilot enterprises in accordance with the provinces (autonomous regions and municipalities) communications administration requirements, submit monthly business operation. Pilot cities, provinces (autonomous regions and municipalities) OFCOM shall on a monthly basis to the Ministry of industry and information technology, reported progress in the broadband access network services pilot project.
(B) the pilot enterprises with the basic telecommunications sector participate in the demonstration project of Chinese Academy of engineering, broadband, broadband universal service, such as working, enjoy relevant policies.
(C) the pilot enterprises in the pilot period in violation of relevant laws and regulations, shall be given the appropriate punishment.
(D) the Ministry of industry and information technology under the pilot time to change policy, research and commercial use of the broadband access business.
(E) the implementation of the pilot scheme with effect from March 1, 2015.