CHAPTER I GENERAL PROVISIONS CHAPTER II ADMINISTRATION OF NATURAL ENDOWMENTS CHAPTER III MANAGEMENT OF THE BUSINESS OPERATIONS CHAPTER IV LEGAL LIABILITIES CHAPTER V SUPPLEMENTARY PROVISIONS Article 1 (Purpose and Basis) The present Procedures are formulated in accordance with the relevant State stipulations and the “Provisions of Shanghai Municipality Article 2 (Definition) The telecommunications services specified in the present procedures refers to the various kinds of services, based on the customers’ Article 3 (Scope of Application) The present Procedures apply to the business operations of telecommunications services and their administration in this Municipality. Article 4 (Basic Principles) Business operations of telecommunication services shall be carried out in compliance with the following principles: monopolization Article 5 (Competent Departments and Coordinated Departments) The Post and Telecommunications Administrative Bureau of Shanghai Municipality (hereinafter referred to as “Municipal Post and Telecommunications The departments of industry and commerce, public security, price control, customs and radio transmission administration, shall, in
CHAPTER II ADMINISTRATION OF NATURAL ENDOWMENTS Article 6 (Clarification of Telecommunications Services) The telecommunication services shall be divided into the monopolized sector and the free-competition sector. For those that fall under Article 7 (Scope of the Monopolized Sector) The following telecommunications services shall be monopolized by State- approved business operators of telecommunications services: 1. Telephone services, including local calls, long distance calls within the country, international calls, etc.; 2. Telegraph services, including telegraphs within the country, international telegraphs, fax services, etc.; 3. Other telecommunications services monopolized with the approval of the State. Article 8 (Scope of Permit System in Business Operations) For the following telecommunications services, a permit system shall be instituted: 1. Paging; 2. 800 MHz concentrated telephones; 3. 450 MHz mobile telephone communication; 4. Telecommunications through very-small satellite ground stations within the country; 5. Other telecommunications services to be run, with the approval of the State, under a permit system. Article 9 (The Scope of Reporting System in Business Operation) For the following telecommunications services, a system of application and official approval shall be instituted: 1. Telephone information services; 2. Computer information services; 3. Electronic mailboxes; 4. Electronic data interchange; 5. Visuals; 6. Other telecommunications services to be run, with the approval of the State, under a system of application and official approval. Article 10 (Qualifications for Application of Business Operation) One who applies for permission to do business in telecommunication shall have the following qualifications: 1. State-owned or collective-owned enterprises with corporate capacity or an enterprise whose interest is controlled by it; 2. Having technical and managerial personnel required for such business operations; 3. Having a fixed place for its business operations and the necessary facilities; 4. Having funds that satisfy the statutory requirements and are commensurate with the scope of its business operations; 5. Having telecommunication equipment that is connected with the public telecommunication networks, and that meets the State’s technical 6. Having the capability to supply long-term services for customers; 7. Having other qualifications required by the State. When organizations or individuals from abroad or foreign invested enterprises in China intend to do, or participate in, the business Article 11 (Materials Required When Submitting the Application) When applying for permission to do business in telecommunication, the applicant shall submit the following materials to the Municipal 1. Application for permission to do business in telecommunication; 2. List of names of the legal representative and chief technicians and executive officers; 3. Certificates regarding the place of business operations, relevant facilities and equipment; 4. Feasibility study report for doing business in telecommunications services, which covers the types of business scope of services, Article 12 (Application and Approval in Connection with the Monopolized Sector of Telecommunications Services) Application and approval in connection with the monopolized sector of telecommunication services shall follow the relevant State provisions. Article 13 (Application for Approval in Connection with the Free- Competition Sector of Telecommunications Services) One who is to be engaged in business operations that fall under the free-competition sector in this Municipality shall submit its Article 14 (Issuance of Permit) In connection with telecommunications services that need a permit, the Municipal Post and Telecommunications Bureau shall decide the Article 15 (Examination and Approval for Telecommunication Services That Need a Permit) The Municipal Post and Telecommunications Bureau shall examine the application within 30 days after it accepts the application regarding Permit may be issued by means of bids-invitation. The Municipal Post and Telecommunications Bureau shall issue the permit to bid winners An applicant shall establish an operative service system within 12 months after receiving the permit. Article 16 (Examination and Approval in Connection with Telecommunication Operations that Need Official Approval) The Municipal Post and Telecommunications Bureau shall complete the examination procedures within 30 days after receiving all application Article 17 (Other Examination and Approval Procedures) Those who have been permitted to do business in telecommunications shall bring their permits or official approvals to the administrative Article 18 (Filing for the Record) Those who have been officially approved by the Ministry of Post and Telecommunications to do interprovince or intercity business in Article 19 (Entrustment of the Monopolized Sector) Business operators in the monopolized sector of telecommunications may entrust qualified entities or individuals to do part of the Article 20 (Term, Renewal, Alteration and Termination of the Permit) The term of the permit shall be five years. The business operators who desires to continue their business operations after the expiration of the term of the permit shall go to When it is necessary to alter the scope of business during the term of the permit, the business operator shall go to the Municipal When it is necessary to have an early termination of the business operations during the term of the permit, the business operator The procedures for the examination and approval of renewal, alteration and termination of the permit shall be completed with reference Article 21 (Requirement for the Administration of the Permit and Official Approval) The permits and official approval documents shall not be forged, altered, lent or transferred to others.
CHAPTER III MANAGEMENT OF THE BUSINESS OPERATIONS Article 22 (Check Before the Operations) Upon completion of preparation for business operations, the business operator of telecommunications services shall notify the Municipal Article 23 (Standards for Telecommunications Equipment) The exchange equipment, transmission equipment, terminals and networks used by business operators of telecommunications shall satisfy Business operators of telecommunications shall not use, accept or sell telecommunication equipment that do not have a certificate Article 24 (Supply of Basic Lines and Equipment) Business operators of the monopolized sector of telecommunications shall, in the light of the situation of supply and demand, and The term of supply of the relay equipment and lines mentioned in the preceding paragraph and matters relevant thereto shall be separately Article 25 (Requirements for Network Operations) Business operators of telecommunications shall establish a necessary maintenance system for the communication lines and equipment Article 26 (Requirements for Business Operations) Business operators of telecommunications shall comply with the following requirements in their business activities: 1. Act in accordance with the business rules and technical procedures prescribed by the Ministry of Post and Telecommunications and 2. Make known, at the place of business, to the public the types of telecommunications services, service standards, rates of service 3. Set up a special service center and surveillance telephone number to give advice to, and receive complaints from, the customers; 4. Guarantee the quality of communication lines and equipment provided to the customers, and make repairs or renovations upon receiving Article 27 (Prohibitions) Business operators of telecommunications and the employees thereof are prohibited from doing the following: 1. Providing, without proper consent, information to others regarding the customer’s use of telecommunication services; 2. Cutting off the customer’s telecommunication or delaying the rendition of services without justifiable reasons; 3. Stopping, without approval, the business operations of telecommunications which have been approved; 4. Imposing restrictions on the use of telecommunications services or on the purchase of telecommunication equipment, or coercing 5. Providing information to customers against their will; 6. Using advertisements containing false information or using other inappropriate means to promote publicity or depreciate other business 7. Committing other acts that will impair the rights and interests of the customers; Article 28 (Suspension of Services) When the customer does one of the following, the business operator of telecommunications may request him to rectify his behavior, 1. Using telecommunication equipment that does not have the newtworking certificate issued by the Ministry of Post and Telecommunications 2. Delaying payment of service fees or refusing to pay it; 3. Using telecommunications services to endanger national security, jeopardize social order or impair the legitimate rights and interests 4. Other acts that may hamper the business operations of telecommunications or the management thereof. When the competent authorities lawfully request the business operator of telecommunications to suspend the rendition of telecommunication Article 29 (Service Charges) Business operators of telecommunications shall strictly comply with the uniform rates of service charges set by the State. With respect Business operators of telecommunications shall comply with the relevant stipulations of the Municipal Post and Telecommunication Bureau Article 30 (Telecommunications Administration Fee) Business operators of telecommunications shall pay administration fee to the Municipal Post and Telecommunications Bureau. The rates For a delay in the payment of the telecommunication administration fee, a penalty of 0.2% for each day of delay shall be imposed. Article 31 (Emergency Adjustment of Telecommunications Network) In the event of emergencies, the Municipal Post and Telecommunications Bureau may, with the approval of the municipal government, Article 32 (Administrative Inspection) The Municipal Post and Telecommunications Bureau is enpost_titled to supervise and inspect the business activities of telecommunication
Article 33 (Administrative Punishment) Units or individuals who violate the present Procedures shall be subject to the punishment by the Municipal Post and Telecommunications 1. Those who engage in business operations of telecommunications without official permission shall be enjoined from continuing their 2. Those who forge, alter, borrow or transfer the permit or the official approval shall be penalized by confiscation of their unlawful 3. Business operators of telecommunications who continue their operations without a renewal after their permit expires, or alter, 4. Those who takes the liberty to start business operations of telecommunications without the check or fail to pass the check, or 5. Business operators of telecommunications, who use telecommunications equipment that does not conform to the relevant technical 6. Those who suspend or terminate their business operations of telecommunications without authorization or justifiable reasons, who 7. Business operators of telecommunications who provide telecommunications services that fall below the set standards shall be ordered 8. Business operators of telecommunications that fail to make known, in accordance with the provisions, to the public the types of 9. Business operators of telecommunications who accept or sell equipment that does not have the networking certificate issued by the 10. Business operators of telecommunications who do not cooperate with the competent authorities in lawfully suspending the telecommunication If cases involving violation of the present Procedures shall be punished, according to law, by other administrative departments, they Article 34 (Civil Liability) Business operators of telecommunication who violate the present procedures and cause a loss to customers shall be liable to compensate Article 35 (Administrative Reconsideration and Legal Action) If the party concerned finds unacceptable the specific administrative act of the Municipal Post and Telecommunications Bureau, it The administrative department that takes the administrative act may, in accordance with the provisions of “Administrative Litigation
CHAPTER V SUPPLEMENTARY PROVISIONS Article 36 (Application and Interpretation) The Municipal Post and Telecommunications Bureau shall be responsible for the interpretation with respect to the application of the Article 37 (Date of Implementation) The present procedures shall become effective on January 1,1996.
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