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Regulation concerning Telecommunications of the People' s Republic of China
Promulgation Date:2000-09-25  Promulgation Number:Order of the State CouncilNo. 291  Promulgation Department:The State Council
Order of the State Council No. 291 The Regulation concerning Telecommunications of the People' s Republic of China, which was upon deliberation at the 31st regular meeting of the State Council on September 20, 2000, is hereby promulgated. Premier Zhu Rongji September 25, 2000 Regulation concerning Telecommunications of the People' s Republic of China Chapter I General principles Article 1 In order to regulate the order of the telecommunications market, protect the lawful rights and interests of telecommunication users and service providers and ensure the safety of telecommunication network and information to promote the healthy development of telecommunications, this Regulation is formulated Article 2 This Regulation shall be complied with for anyone who is engaged in telecommunication activities or activities related to telecommunications within the territory of the People' s Republic of China. Telecommunications in this Regulation mean the activities using wired or wireless electromagnetic systems, or photoelectric systems in transmitting, emitting or receiving speech, text, data, graphics or any other form of information. Article 3 According to this Regulation, the Ministry of Information Industries (MII) under the State Council shall supervise and administrate the telecommunications all over the country. According to this Regulation and under the guidance of MII, the telecommunications administrative authorities of all provinces, autonomous regions and cities under the direct control of the Central Government shall supervise and administrate the telecommunications in their regions. Article 4 The supervision and administration of telecommunications shall be implemented in accordance with the principles of separation of the Government and enterprises, anti-monopoly, development promotion, openness, fairness and impartiality. The telecommunications service providers shall provide services according to the law and business ethics. They shall be subject to supervision and administration conducted according to the law. Article 5 The telecommunication service providers shall provide services for telecommunication consumers in a rapid, accurate, safe and convenient way, with reasonable price. Article 6 The law shall protect the safety of the telecommunication networks and information. All organisations or individuals shall not deal with activities which are harmful to State Security, social and public interests or the lawful rights and interests of others by using the telecommunication networks. Chapter II Telecommunication market Section I Telecommunication business licensing Article 7 A licensing system is set up by the State for telecommunication business in accordance with the related categories. Without a licence for operation obtained from MII or the telecommunication administrative authorities of the provinces, autonomous regions and cities under the direct control of the Central Government according to the prescriptions of this regulation, telecommunication business shall not be dealt with. Having not obtained a telecommunication business licence for operation, all organisations or individuals shall not deal with telecommunication business. Article 8 Telecommunication business is classified into basic telecommunication business and value-added telecommunication business. Basic telecommunication business is to provide basic facilities of public networks, public data transmission as well as basic speech communication. Value-added telecommunication business is to provide telecommunication and information services using the basic facilities of public networks. The detailed classifications of the telecommunication business can be found in the Appendix of this Regulation: Catalogue of Telecommunication Business. According to the real situation, MII may modulate and renew this Catalogue. Article 9 To deal with basic telecommunication business, anyone shall obtain the approval of MII and obtain a Business Licence for operating Basic Telecommunications Business. To deal with value-added telecommunication business covering two or more provinces, autonomous regions or cities under the direct control of the Central Government, anyone shall obtain the approval of MII and obtain a Business Licence for operating Cross-region Value-added Telecommunication Business. To deal with value-added telecommunication business covering only one province, autonomous region or city under the direct control of the Central Government, anyone shall get the approval of the telecommunication administrative authority of the related province, autonomous region or city under the direct control of the Central Government and obtain a Business Licence for operating Value-added Telecommunication Business. Dealing with new-type telecommunication business not included in the Catalogue of Telecommunications Business by using new technology, anyone shall put his business on records at the telecommunication administrative authority of the related province, autonomous region or city under the direct control of the Central Government. Article 10 A basic telecommunications business provider shall be qualified with the requirements as follows: 1. Being a company set up according to the law and specialised in basic telecommunication business as well as the State-owned equity or shares in the company not less than 51%; 2. Having feasibility study report and technical proposal to structure networks; 3. Having qualified capital and professionals to its business; 4. Having a fixed place and the relevant resources to the business; 5. Having the credibility and capacity of providing long-term services; and 6. Other requirements provided by the State. Article 11 The application of operating basic telecommunication business shall be reported to MII as well as the related documents provided in Article 10 of this Regulation. MII shall take an examination and give a decision of approval or disapproval within 180 days as of the day of receiving the application. If approved, a Business Licence for operating Basic Telecommunication Business shall be granted; if not approved, a written notice shall be given to the applicant to explain the reasons. Article 12 MII shall mainly take into consideration of the factors as follows, State security, safety of telecommunication networks, sustainable development of telecommunication resources, environmental protection, as well as competition of the telecommunication market at the time of examining applications for provision of basic telecommunication business. The way of public bidding shall be adopted when granting the Business Licences for operating Basic Telecommunication Business according to the related provisions. Article 13 A value-added telecommunication business provider shall be qualified with the requirements as follows: 1. Being a company set up according to the law;   2. Having qualified capital and professionals to its business; 3. Having the credibility and capacity of providing long-term services; and 4. Other requirements provided by the State. Article 14 To operate value-added telecommunication business, an application shall, according to Article 9(2) of this Regulation, be reported to MII or to the administrative authorities of the related province, autonomous region or city under the direct control of the Central Government, as well as the related documents provided in Article 13 of this Regulation. If the examination and approval of the related competent authority is also required according to the law, the document of such an approval shall also be reported. The examination of the application shall be taken and the decision about approval or disapproval shall be made by MII or the administrative authorities of the related province, autonomous region or city under the direct control of the Central Government within 60 days as of the day of receiving the application. If approved, a Business Licence for Cross-region Value-added Telecommunication Business or for Value-added Telecommunication Business shall be granted; If not approved, a written notice shall be given to the applicant to explain the reasons. Article 15 A telecommunication business provider shall report an application to the original authority that granted the Business Licence and go through the related formalities if it is to change the business provider, business scope or to stop the business during its term of business. A settlement shall be made according to State regulations if stops its business. Article 16 With the approval of dealing with telecommunications business, the telecommunications business provider shall make registration at the enterprise registration authority with the Business Licence for telecommunications business obtained according to the law. A work unit operating dedicated telecommunications networks wishing to provide public telecommunications services to the area where it is located, shall report an application according to the requirements and procedures prescribed in this Regulation. With an approval, it will be granted a Business Licence for operating telecommunications business and shall make registration in accordance with provisions in the above paragraph. Section II Linking-ups between telecommunication networks Article 17 Linking-up between telecommunication networks shall be implemented in accordance with the principles of technological feasibility, economy, fairness as well as co-ordination. Principal public telecommunication business providers shall not refuse to link-up requested by other public telecommunication business providers or dedicated networks operators. Principal public telecommunication business providers mean the telecommunication business providers controlling necessary basic telecommunication facilities and accounting for a large proportion of the market, and with the ability to cause substantial influence when other business providers enter into the market. The confirmation of the principal public telecommunication business providers shall be made by MII. Article 18 According to the principles of non-discrimination and transparency, the link-up rules including the procedure, time limit, and catalogue of non-tied-up network elements shall be constituted by the principal public telecommunication business providers. The link-up rules shall be upon the approval of MII and Principal public telecommunication business providers in their link-ups shall under the sanctions. Article 19 The inter-network link-up between public networks, and between public and dedicated networks shall be implemented by the parties involved through consultation according to the related regulation of MII. Agreements on such inter-network link-ups shall also be reached and put on record at MII. Article 20 In case an agreement on the inter-network link-up can not be reached between the two parties, either party can give an application for co-ordination within 60 days after receiving a request on such link-up from one party to MII or to the telecommunication administrative authority at the level of province, autonomous region, or city under the direct control of the Central Government in accordance with the area covered by the link-up. In order that an agreement shall be reached between the two parties, the authority receiving such an application shall take co-ordination according to Article 17(2) of this Regulation. Despite the co-ordination, if no agreement can be reached within 45 days after either party gives an application for co-ordination, the co-ordination authority shall invite, through random selection, telecommunication specialists and other related professionals to a public hearing to put forward proposals for the link-up. The co-ordination authority shall make a decision to implement link-up compulsively according to the conclusion of the hearing and the final proposal. Article 21 The two parties shall implement the link-up within the time limit prescribed in the link-up agreement or decision. Either party shall not stop the link-up without approval of MII. The two parties shall take effective measures to remove technological obstacles to link-ups as they appear. The two parties shall dispose the disputes according to Article 20 of this Regulation when disputes arising during the link-up. The communication quality of the link-up shall meet the related State standards. For the principal telecommunication business providers, when linking up with other telecommunication business providers, the communication quality shall not be lower than that when they provide such service within its own network to its subsidiaries or branches. Article 22 The payment settlement and sharing for inter-network link-up shall be made according to related State regulations. Any extra expenses shall not be charged. MII shall be responsible for constituting the technological standard, way of payment and specific management measures for inter-network link-up. Section III Charges for telecommunication services Article 23 The standard of charges for telecommunications services shall carry out based on cost; at the same time, the following factors shall also be taken into consideration: the need for developing national economy, the society and telecommunication industry, as well as the payment capacity of the customers. Article 24 Charges for telecommunication services include fixed price, guideline price or market price. Charges for basic telecommunication services can carry out based on fixed or guideline prices set by the government or based on market prices. Charges for value-added telecommunication services can carry out based on market prices or guideline prices the government set. For telecommunication services with full market competition, the charges can carry out based on market prices. MII shall constitute and give forth the Catalogue of Charges for telecommunication services based on fixed, guideline or market prices with the consultation of the State Planning Commission. Article 25 MII shall put forward the proposal for the standard of charges of important telecommunication services based on fixed prices. With the consultation of the State Planning Commission, the proposal shall be reported to the State Council to get approval. MII shall constitute and carry out the proposal for the standard of charges of important telecommunication services based on guideline prices, with the consultation of the State Planning Commission. The service providers can establish their own prices within the scope allowed and put on records at the administrative telecommunication authorities at the level of province, autonomous region or city under the direct control of the Central Government. Article 26 The standard for fixed and guideline prices shall be constituted based on holding hearings, absorbing the opinions of service providers, end-users and other sectors. The service providers shall provide accurate and complete information and related data on the cost of service they provide according to the request of MII and other telecommunications administrative authorities Section IV Telecommunications resources Article 27 The State sets up a system with the unified planning, centralised administration, rational allocation and paid utilisation of the telecommunication resources. Telecommunications resources mean the limited resources to realize the telecommunications functions as follows, wireless radio frequencies, satellite orbit positions and telecommunication network code numbers. Article 28 The telecommunication business providers shall be responsible for the payment of telecommunication resources charges for holding or using such resources. Upon the approval of the State Council, the standard and method of payment shall be constituted by MII, Ministry of Finance as well as the State Planning Commission. Article 29 The telecommunication resources shall be allocated by taking the following factors into consideration, the planning, use and expected service capacity of such resources. The telecommunication resources can be allocated by distribution or auction. The user shall begin to use the resources and reach the minimum use scale within the statutory time limits after obtaining the right to use certain telecommunication resources, It shall not use, transfer, lease telecommunication resources or change the functions of such resources until it has gained the approval of MII or telecommunication administrative authorities. Article 30 The principal telecommunication service providers and other related work units shall have the responsibility for taking necessary technological measures to assist the user to use such code numbers after the telecommunication resources user get the telecommunication network code numbers according to the law. If there are other laws and administrative regulations of telecommunication resources administration, such laws and administrative regulations shall prevail. Chapter III Telecommunication services Article 31 According to the service standard constituted by the State, the telecommunication business provider shall provide telecommunication services to customers. The category, scope, charge standard and time limits of such services shall be made public and put on records at telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government. The telecommunication users have the right to choose and enjoy all kinds of telecommunication services provided according to the law. Article 32 When the telecommunication users give an application for installing or moving telecommunication terminal equipment, the telecommunication service providers shall make sure that they can install and start to operate such equipment within the time limits they promise to the public. Not meeting the time limits because of the service provider, the service provider shall pay to the user a penalty for breach of contract at the rate of 1% per day of the charge for installation, moving or other charge. Article 33 The service providers shall carry out reparation and reversion within 48 hours (in the city) or 72 hours (in rural areas) after receiving the information of breakdown of services from telecommunication users. If the service providers can not dispose the breakdown within the time limit, they shall give immediate information to the user and exempt the pay of the monthly charge during the period of breakdown, except that the breakdown is caused by telecommunication terminal equipment. Article 34 The telecommunication service providers shall provide assistance to enquiry of their users about the charge and payment. The service providers shall provide the lists that the users request about expenditure for DDD or IDD calls, mobile phone calls or information services they have subscribed to free of charge. If the service provider finds that abnormal huge bills occur to a user, it shall inform the user as soon as possible and take corresponding measures. Huge bills mean the bills of payment 5 times exceeding the average payment made by the user during the previous three months. Article 35 Based on the time and method prescribed in their contracts, the telecommunication users shall make prompt and full payment of their telecommunication bills to the service providers. The service providers have the right to ask the users to pay the bills due and a penalty at the rate of 0.3% per day if the users fail to pay their bills within the time limits. The service providers may suspend their service to the users if the users do not pay their bills due within 30 days after the time limit. The service providers may terminate the service and claim for the non-payment and penalties according to the law if the users do not pay their bills due and the corresponding penalties within 60 days after the suspension. Mobile telecommunication service providers may reach agreements with their users on the time limits and methods to pay the service bills, out of the restriction of the above paragraph. The service providers shall restore the suspended service within 48 hours after the bills due and penalties are paid by the users. Article 36 If normal telecommunication service will be influenced by construction or network projects, etc., the service providers shall give the related information to the users within the time limit prescribed in the law and give a report to telecommunications authorities of provinces, autonomous regions and cities under the direct control of the Central Government If the above affections occur, the service providers shall reduce the related service charges of the users during the affection period. If the service provider is delayed in informing the users as the first clause occurs, the service provider shall compensate the resulting losses the users suffered. Article 37 Local call and mobile call providers shall provide, free of charge, service of such emergency calls as fire, police, medical as well as accident, and make sure the quality of communication. Article 38 The telecommunications service providers shall provide service for the connection of group users through trunk lines to their networks in an equal and reasonable way. Not being approved, the service providers shall not break the connections. Article 39 The telecommunication providers shall set up service quality control systems internally and may constitute and carry out their own service standards higher than the State telecommunication service standards. The telecommunication providers shall gather opinions from their users in all ways and enjoy supervision of the public to improve their service quality. Article 40 If the service provided by service providers can not meet the State telecommunication service standard or the published service standard of their own, or their users is not satisfied with the payment of telecommunication charge, the users have the right to ask the service providers for solution. If the users get refuse from the service providers on resolving the problems or they are not satisfied with the solution, they have the right to appeal to MII or telecommunications authorities of provinces, autonomous regions and cities under the direct control of the Central Government. The authorities receiving such an appeal shall give disposal in time and give a reply within 30 days as of the day receiving the appeal. If the users are not satisfied with their local call bills, upon the request of the users, the service providers shall provide local call lists free of charge and be obliged to help the users to find the reasons. Article 41 When providing services, the telecommunication service providers shall not do any of the acts as follows: 1. To limit the users to enjoy any service appointed by themselves in any form; 2. To limit the users to buy certain telecommunication terminal equipment appointed by themselves or refuse the users to use their own telecommunication terminal equipment with access-license; 3. To alter the statutory payment standard or increase the payment amount and items on one's own authority or in disguised form violating the State provisions; 4. To refuse to provide, delay or terminate services with no reasons; 5. Fail to fulfill their public promises or make false or misunderstanding PR efforts for their services; 6. To make difficulties to or to avenge the users for appealing the services. Article 42 When implementing the business, the telecommunication service providers shall not do any of the acts as follows: 1. To limit the users to choose services provided by other legal service providers in any forms; 2. To give unreasonable subsidies between the different services they provide; 3. To compete unfairly by providing telecommunication business or services at prices below cost for the purpose of elbowing out their competitors; Article 43 MII and telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government shall supervise and examine the service quality and activities of the service providers and make public the result of their supervision and selective examinations. Article 44 The telecommunication service providers shall carry out their obligation concerning universal telecommunication service according to the related law. MII may fix on the substantive obligations of telecommunication services providers concerning universal telecommunication service by appointing or inviting public bidding. Together with the Ministry of Finance and the State Planning Commission, MII shall constitute the subsidy policies for universal telecommunication service with the approval of the State Council. Chapter IV Telecommunication construction Section I Telecommunication infrastructure construction Article 45 MII shall plan and regulate the construction of public telecommunication networks, dedicated telecommunication networks as well as relay networks for radio broadcasting and television. The projects of public telecommunication networks, dedicated telecommunication networks as well as relay networks for radio broadcasting and television of a nation-wide nature or falling within the limited State projects shall be approved by MII before giving an application for approval as State infrastructure projects. Telecommunication infrastructure projects shall be brought into the overall plan for city or township construction of the Governments at different level. Article 46 The infrastructure of cities and towns shall fix related telecommunication facilities. The telecommunication cables and supporting lines inside a building and such cables and lines within the construction land shall be brought into the design documents of the construction projects and constructed and checked upon completion together with the projects. The expenditure shall be brought into the budget of the project. The related departments shall give a notice to telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government and telecommunication service providers in advance and negotiate about the installation of telecommunication cables and equipment when planning for the construction of roads, bridges, tunnels or subways. Article 47 Basic telecommunication service providers may put up such public communication facilities on the top of civil buildings as telecommunication cables or small antenna, mobile telecommunication base stations, but they shall inform the proprietors or users of the buildings in advance and pay the proprietors or other right-holders for such use according to the standards prescribed by governments of provinces, autonomous regions and cities under the direct control of the Central Government. Article 48 Signs shall be placed according to State regulations when building underground, under-water telecommunications facilities. Basic telecommunications providers shall not build seabed telecommunication cables until get approval of MII and go through the related formalities with opinions of related departments. The related department of the State Council shall mark out the seabed telecommunication cables on the Map of the Sea. Article 49 Any entity or individual shall not make hold to alter or move the telecommunication cables and facilities of others; If meeting the situation of such alteration or move, the requesting entity or individual shall get the approval of the proprietor of the facilities and be responsible for the expenses of such alteration or move, as well as compensate the losses, if any. Article 50 The safety of the telecommunication cables and facilities and the communications quality shall not be affected or hampered in activities of construction, production or planting; otherwise, a notice shall be given to the related telecommunication service providers and the entity or individual carrying out such activities shall take related safety measures. If the safety of the telecommunication cables and facilities and the communication quality are influenced or hampered, the original operational state shall be restored or be made reparation and the resulting losses shall be made up. Article 51 There shall be a safety distance between new-built telecommunication cables and the already-existing cables; if the already-existing cables are difficult to avoid or have to be crossed or the tunnels be used, consultation shall be made and agreement be reached with the proprietor of the already-existing cables and tunnels. If no agreement can be reached, co-ordination of MII or telecommunications authorities of provinces, autonomous regions and cities under the direct control of the Central Government shall come into effect. Article 52 All organisations or individuals shall not stop or hamper basic telecommunications service providers to carry out telecommunications infrastructure constructions and provide public telecommunication services to their users according to the law, except in the area the access to which is forbidden or restricted by the State. Article 53 With approval of the public transportation security authorities, Telecommunication vehicles engaged in special, emergency, reparation or disaster-relieving tasks are not controlled by any traffic signs if traffic safety is not affected. Section II Equipments used in the telecommunication network Article 54 The State sets up a Licensing system for network connection of telecommunication terminal equipment, radio communications equipment as well as equipment concerning network link-ups. For Telecommunication terminal equipment, radio communication equipment as well as equipment concerning network link-ups connected to public telecommunication networks, the State standard must be complied with and a license for network connection must be obtained. MII and the State Administration of Quality Control (SAQC) shall constitute the Catalogue for Telecommunications Equipment under the Network Connection Licensing System. Article 55 For the purpose of getting a licence for network connection of telecommunication equipment, an application shall be given to MII and a verification report granted by a telecommunication equipment verification agency recognised by SAQC or a Product Quality Certificate issued by a quality certification agency. MII shall make examinations on the application and the report or certification within 60 days as of the day receiving the application. If the application is qualified, a license will be granted; otherwise, a written reply will be given to explain the reason for rejection. Article 56 The quality of its products getting a license for network connection shall be guaranteed by a producer of telecommunication equipment. Network connection licensing signs shall be put on the telecommunications equipments getting a license for network connection. Together with SAQC, MII shall carry out quality track and do selective examination on telecommunication equipment licensed for network connection and publicize their reports. Chapter V Telecommunication security Article 57 All organisations or individuals shall not produce, copy, publish and transmit information having the contents as follows by using telecommunication networks: 1. Against the Cardinal Principles prescribed in the Constitution; 2. Detrimental to State security, State secrecy, State power as well as national unification; 3. Detrimental to State honour and interests; 4. Instigating national enmity or discrimination and breach of national unity; 5. Breach of State religious policy, propagating heretical or superstitious ideas; 6. Disseminating rumours, disrupting social order as well as stability; 7. Disseminating obscenity, pornography, force, brutality and terror or crime-abetting; 8. Humiliating slandering others, trespassing the lawful rights and interests of others; and 9. Other contents forbidden by laws and regulations. Article 58 All organisations or individuals shall not be engaged in the activities that are harmful to telecommunication network security and information security as follows: 1. To delete or modify the functions of telecommunication networks and the data stored, processed and transported and the application programmes thereof; 2. To steal or destroy the information of others, or to carry out activities harmful to the lawful rights and interests of others by using telecommunication networks; 3. To produce, copy and transmit computer viruses or to attack telecommunication networks and other telecommunication facilities in other ways; 4. To carry out other activities harmful to telecommunication network security and information security. Article 59 All organisations or individuals shall not engage in the activities disordering the telecommunication market as follows: 1. To make hold to operate telecommunications connections with other countries, Hong Kong Macao and Taiwan by renting international dedicated telecommunication lines or setting up relaying facilities without permission or other ways; 2. To connect to telecommunication lines of others and copy the telecommunication codes of others in unlawful way, or to use such facilities or codes knowingly; 3. To fabricate or to change telephone cards and other valued certificates of telecommunication services; 4. To go through formalities on access to the networks with a false ID card and to use mobile phones. Article 60 Telecommunication service providers shall set up their own security safeguarding system and carry out the responsibility of security control in accordance with related laws. Article 61 The telecommunication service providers shall put State security and the safety of telecommunication networks into consideration when designing, constructing and operating telecommunication networks. Article 62 During the period of providing public information service, if a telecommunication service provider finds that information falling within the scope prescribed in Article 57 is being transmitted in the networks, it shall stop the transmission at once and keep record and give a report to related authorities. Article 63 The telecommunication users shall take charge of the content they transmit and the consequence of such transmission by using telecommunication networks. The telecommunication users shall take measures to safeguard the secrecy in case the information the telecommunication users transmit belongs to State secrecy according to the provisions of Law of People' s Republic of China guarding state secrets. Article 64 Upon the approval of the State Council, MII may transfer telecommunication facilities to make sure expedite communications when serious natural disasters and other urgencies occur. Article 65 The provision of international communication service within the territory of the People' s Republic of China shall only be done through international communication accesses set up under the approval of MII. The provision of communication service between the Mainland and Hong Kong, Macao and Taiwan shall also refer to the above paragraphs. Article 66 The law protects freedoms to use telecommunications and communication secrecy of telecommunication users. The content of telecommunications shall not be examined for any reason by any organisations or individuals, except that the public security authorities, State security authorities or the People' s Procuratorates do examinations to meet the need of State security or of criminal investigation Without prior permission, Telecommunication service providers and their employees shall not provide the contents transmitted by the users through the networks to others. Chapter VI Penalties for violating the Regulations Article 67 If the acts constitute crimes, those violating Articles 57 and 58 of this Regulation shall face criminal charges; otherwise, they shall be given penalty by the public security or State security authorities according to laws and administrative regulations. Article 68 If the acts constitute crimes, those violating Article 59(2), (3) and (4) of this Regulation shall face criminal charges for disordering telecommunication market; otherwise, they shall be charged to do rectification by MII or telecommunications authorities of provinces, autonomous regions and cities under the direct control of the Central Government and the illegal income shall be confiscated. They shall be imposed a penalty between three times and five times of the illegal income. If they have no illegal income or their illegal income is lower than 10,000 Yuan, they shall be imposed a penalty more than 10,000 Yuan and less than100,000 Yuan\. Article 69 For those violating this Regulation to forge, use someone' s else' s or assign the telecommunication business license or the network connection licence for telecommunication equipment, or to forge the number of the connection licence, their illegal income shall be confiscated by MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government. They shall be imposed a penalty between three times and five times of the illegal income. If they have no illegal income or their illegal income is lower than 10,000 Yuan, they shall be imposed a penalty more than 10,000 Yuan and less than100,000 Yuan. Article 70 For those violating this Regulation to commit any of the acts as follows, they shall be ordered by MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and the illegal income shall be confiscated, and they shall be imposed a penalty between three times and five times of the illegal income. If they have no illegal income or their illegal income is lower than 50,000 Yuan, they shall be imposed a penalty more than 100,000 Yuan and less than 1,000,000 Yuan. In a serious situation, the business shall be suspended: 1. To act against the third clause of Article 7 or committing the act prescribed in Article 59(1); 2. To set up international communication accesses to operate international communication services without approval of MII,; 3. To use, assign or lease telecommunication resources, or to change the functions of telecommunication resources without permission; 4. To stop link-up or connection services without permission; 5. To refuse to carry out their obligation concerning universal telecommunication service. Article 71 For those violating this Regulation to commit any of the acts as follows, they shall be ordered by MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and the illegal income shall be confiscated, and they shall be imposed a penalty between one time and three times of the illegal income. If they have no illegal income or their illegal income is lower than 10,000 Yuan, they shall be imposed a penalty more than 10,000 Yuan and less than 100,000 Yuan. In a serious situation, the business shall be suspended: 1. To ask for extra charges for network link-ups; 2. Not to take effective measures to remove technological obstacles of link-ups; 3. To provide the contents transmitted by telecommunication users through the network without permission; 4. To refuse to pay the fees for using telecommunication resources. Article 72 For those violating Article 42 of this Regulation to commit unfair competition in their business, they shall be ordered by MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and they shall be imposed a penalty more than 100,000 Yuan and less than 1,000,000 Yuan. In a serious situation, the business shall be suspended. Article 73 For those violating this Regulation to commit any of the acts as follows, they shall be ordered by MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and they shall be imposed a penalty more than 50,000 Yuan and less than 500,000 Yuan. In a serious situation, the business shall be suspended: 1. To refuse the requests from other telecommunication service providers for link-ups; 2. To refuse to carry out the decision of MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government on link-ups; 3. To provide lower quality of link-ups to other telecommunication service providers than that of link-ups to its subsidiaries or branches. Article 74 For those violating the first clause of Article 34 and the second clause of Article 40 of this Regulation, they shall be ordered by telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and to make apology to telecommunication users. If failed to do so, they shall get a warning sanction and be imposed a penalty more than 5,000 Yuan and less than 50,000 Yuan. Article 75 For those violating Article 41 of this Regulation, they shall be ordered by telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the violations and to compensate the losses of the telecommunication users. If failed to do so, they shall get a warning sanction and be imposed a penalty more than 10,000 Yuan and less than 100,000 Yuan. In a serious situation, the business shall be suspended. Article 76 For those violating this Regulation to commit any of the acts as follows, they shall be ordered by telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government to redress the acts and they shall be imposed a penalty more than 10,000 Yuan and less than 100,000 Yuan. 1. To sell telecommunication terminal equipment without network connection licenses; 2. To prevent or disturb unlawfully the public telecommunication services provided by telecommunication service providers; 3. To alter or move telecommunication lines and others' telecommunication facilities without permission. Article 77 For those violating this Regulation to lower the quality of the products after getting the network connection license for their telecommunication facilities they produce, they shall be punished by the administrations of quality control according to related laws and regulations. Article 78 If an act prescribed in Articles 57, 58 and 59 is committed and the situation is indeed serious, the telecommunication business license shall be revoked by the authority originally issuing the license. The related administration of enterprise registration shall be given a notice on revocation of the license by MII and telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government. Article 79 For officials of MII or telecommunication authorities of provinces, autonomous regions and cities under the direct control of the Central Government neglecting their responsibilities or abusing their power in their own interests, if their acts constitute crimes, they shall get criminal charges; if their acts do not constitute crimes, they shall be given administrative sanctions. Chapter VII Supplementary Provisions Article 80 The State Council will constitute detailed regulations on investing and operating telecommunication business in the territory of the People' s Republic of China by foreign organisations or individuals, or by organisations or individuals from Hong Kong, Macao and Taiwan. Article 81 This Regulation shall go into effect as of promulgation. Appendix: Catalogue of Telecommunications Business 1. Basic Telecommunications services (1) Fixed line DDD as well as local phone call services; (2) Mobile network phone call as well as data services; (3) Satellite communications as well as mobile Satellite communications; (4) Internet as well as other public data transmission services; (5) Leasing and sale of bandwidth, wavelength, optical fibres, optical cables, circuits as well as other network elements; (6) Network loading, connection as well as leasing; (7) International communication facilities as well as international telecommunication business; (8) Wireless pager services; (9) Resold basic telecommunication services. Categories (8) and (9) shall be adjusted in accordance with the management of value-added telecommunication services. 2. Value-added telecommunication services (1) Electronic mail service; (2) Voice mailboxes; (3) On-line database storing and searching; (4) EDI; (5) On-line data processing and trading processing; (6) Value-added fax; (7) Internet connection service; (8) Internet information service; (9) Audio-visual telephone meeting service.
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