Administration of the Interconnection of Public Telecommunications Networks Provisions

1.fixed local telephone networks;

2.domestic long-distance telephone networks;

3.international telephone networks;

4.IP telephone networks;

5.terrestrial cellular mobile communications networks;

6.satellite mobile communications networks;

7.internet backbone networks;

8.other telecommunication networks specified by the Ministry of Information Industry.

Article 3: Interconnection between telecommunications networks shall be effected in accordance with the principles of technical feasibility, economic rationality, equitability, fairness, and mutual cooperation.

Article 4: The Ministry of Information Industry and the communications regulatory bureaux of the provinces, autonomous regions and municipalities directly under the central government (hereafter collectively referred to as the Telecommunications Regulatory Authorities) are the authorities in charge of the Interconnection of telecommunications networks. The Ministry of Information Industry is responsible for implementing these Provisions on a national scale and the communications regulatory bureaux of the provinces, autonomous regions and municipalities directly under the central government are responsible for the implementation of these Provisions within their respective administrative territories.

Article 5: For the purposes of these Provisions, the following terms shall have the meanings ascribed to them below:

1."Interconnection" means the establishment of an effective communications connection between telecommunication networks to enable the subscribers of one telecommunications carrier to communicate with the subscribers of another telecommunications carrier or to access the various telecommunications services of another telecommunications carrier. Interconnection includes the direct connection between two telecommunications networks to effect the sharing of services or the rerouting through a third party network by two telecommunications networks to effect the sharing of services.

2."Interconnection Point" means the physical connection point where two telecommunications networks directly interconnect.

3."Leading Telecommunications Carrier" means a carrier that controls the necessary basic telecommunications infrastructure, whose fixed local telephone service controls more than 50% of the market for the same type of service within the scope of the local grid and that is capable of materially affecting the entry of other telecommunications carriers into the market for telecommunications services.

4."Non-leading Telecommunications Carrier" means a telecommunications carrier other than a Leading Telecommunications Carrier.

PART TWO: INTERCONNECTION OBLIGATIONS OF TELECOMMUNICATIONS CARRIERS

Article 6: Telecommunications carriers shall establish an Interconnection organization responsible for Interconnection work. The Interconnection organization shall establish a normal work liaison system to ensure an open channel of communications between telecommunications carriers and the Telecommunications Regulatory Authorities and among telecommunications carriers.

Article 7: Leading Telecommunications Carriers shall formulate Interconnection rules that include such particulars as the procedures, time limit and the number of Interconnection Points for Interconnection between networks, the addresses of the exchanges used for Interconnection between networks, the list of and charges for non-bundled network elements that are provided or rented out. Interconnection rules shall be submitted to the Ministry of Information Industry for approval before implementation. Interconnection rules shall be binding on the Interconnection and inter-communication activities of Leading Telecommunications Carriers.

Article 8: Telecommunications carriers may not refuse the Interconnection requests of other telecommunications carriers or violate relevant State regulations by restricting their subscribers' selection of telecommunications services lawfully operated by other telecommunications carriers.

Article 9: Leading Telecommunications Carriers are under obligation to provide Non-leading Telecommunications Carriers with information on the Interconnection-related network functions (including the network structure, signalling method, billing method, method of synchronization, etc.) and equipment configuration (optical terminals, exchanges, etc.) and with information on the use of such Interconnection-related communications facilities as the conduits (ducts), pole lines, cable inlets and troughs, optic cables (fibres), bandwidth and circuitry.

Non-leading Telecommunications Carriers are under obligation to provide the Leading Telecommunications Carriers with information on their plans and schemes for the Interconnection-related network functions and equipment configuration.

Each party shall maintain the confidentiality of the information provided by the other party and may not use such information to engage in activities not related to Interconnection.

Article 10: When Interconnection is established between the telecommunications network of a Non-leading Telecommunications Carrier and the telecommunications network of a Leading Telecommunications Carrier and the Interconnection transmission lines must pass through such communications facilities of the Leading Telecommunications Carrier as its conduits (ducts), pole lines, cable inlets and troughs, etc., the Leading Telecommunications Carrier shall cooperate by making the same available to the Non-leading Telecommunications Carrier without imposing any unreasonable conditions.

If direct Interconnection is established between the networks of two Non-leading Telecommunications Carriers and the Interconnection transmission lines must pass through such communications facilities of the Leading Telecommunications Carrier as its building stories, yards, conduits (ducts), pole lines, cable inlets and troughs, etc. the Leading Telecommunications Carrier shall cooperate by making the same available to the Non-leading Telecommunications Carriers without imposing any unreasonable conditions.

If the telecommunications regulatory bureau of the province, autonomous region or municipality directly under the central government determines that it is impossible for a Leading Telecommunications Carrier as mentioned in the preceding paragraph to make its facilities available, the Non-leading Telecommunications Carriers may resolve the Interconnection transmission line problem through the use of overhead lines, buried lines or another such method.

Article 11: The Leading Telecommunications Carrier shall provide, and the Non-leading Telecommunications Carrier shall effect, Interconnection within the prescribed time limit. Neither party may delay the Interconnection without cause.

Article 12: Telecommunications carriers shall implement the relevant technical standards and regulations for network Interconnection formulated by the Ministry of Information Industry.

The quality of inter-network communications shall comply with relevant State standards. Telecommunications carriers shall ensure that the quality of inter-network communications is not lower than the quality of communications for the same type of service within their respective networks.

Article 13: At the request of a Non-leading Telecommunications Carrier, a Leading Telecommunications Carrier shall provide telephone number directory services to the subscribers of the requesting carrier and, subject to the agreement of the parties, may handle inquiries for the listed numbers of the requesting carrier's subscribers in accordance with the rules on directory inquiries. The Non-leading Telecommunications Carrier shall provide to the Leading Telecommunications Carrier information on the listed numbers of the subscribers of its network in accordance with the rules on directory inquiries.

At the request of a Non-leading Telecommunications Carrier, a Leading Telecommunications Carrier shall provide special emergency services for reporting fires, reporting crimes, calling for emergency medical rescue, reporting of traffic accidents, etc. to the subscribers of the requesting carrier. The Non-leading Telecommunications Carrier shall conduct a test of the special emergency services on a daily basis. The parties shall jointly ensure the communications quality of the special emergency services.

Article 14: At the request of another party, a telecommunications carrier shall timely make available on such other party's network various telecommunications service access numbers (including abbreviated numbers), other special service numbers (including the service numbers used by the telecommunications carrier itself, service numbers for government services and service numbers for social services), smart service numbers, etc. that the telecommunications carrier has made available on its own network, and it shall ensure the quality of the communications.

Article 15: The direct connection of the telecommunications networks of two Non-leading Telecommunications Carriers shall be resolved through consultations between the parties.

Connection of the inter-network services of the telecommunications networks of two Non-leading Telecommunications Carriers that are not linked by direct Interconnection shall be effected by rerouting traffic through the fixed local telephone network of a third party or the network of an organization designated by the Ministry of Information Industry. If the Non-leading Telecommunications Carriers select the fixed local telephone network of the Leading Telecommunications Carrier as their third party network, the Leading Telecommunications Carrier may not refuse to provide such rerouting service and shall ensure the quality of the rerouted communications.

PART THREE: ESTABLISHMENT OF INTERCONNECTION POINTS AND THE APPORTIONMENT AND SETTLEMENT OF INTERCONNECTION EXPENSES

Article 16: When Interconnection is effected between the telecommunications network of a Non-leading Telecommunications Carrier and the telecommunications network of a Leading Telecommunications Carrier, the Interconnection Points shall be established at one end of the Interconnection transmission line, namely at the end furthest from the equipment of the Non-leading Telecommunications Carrier (for example, if the Interconnection transmission line is an optic cable, the Interconnection Point shall be established on the outside of the Leading Telecommunications Carrier's optical distribution frame).

When direct Interconnection is effected between the telecommunications networks of two Non-leading Telecommunications Carriers, the parties shall determine the specific locations of the Interconnection Points through consultations.

Article 17: The number of Interconnection Points shall be determined through consultations in accordance with the business development requirements of the parties and the demands of inter-network communications security. In principle, within one local grid, each Interconnection between telecommunications networks shall have at least two Interconnection Points.

The telecommunications equipment on either side of an Interconnection Point may be jointly used by each telecommunications network or may be set up separately by each telecommunications network. If the telecommunications equipment on either side of an Interconnection Point is jointly used by each telecommunications network and the inter-network settlement rates of each telecommunications network are inconsistent and the parties cannot easily employ a technological solution to carry out billing verification, the Interconnection relay circuits may be set up in separate groups.

Article 18: When Interconnection is effected between the telecommunications network of a Non-leading Telecommunications Carrier and the telecommunications network of a Leading Telecommunications Carrier, the parties shall each be responsible for one half of the Interconnection transmission lines and the conduits.

When direct Interconnection is effected between the telecommunications networks of two Non-leading Telecommunications Carriers, the parties shall determine the apportionment of the expenses for the Interconnection transmission lines through consultations.

Article 19: The cost of installing, increasing the capacity of and/or upgrading the equipment (here and hereinafter including the telecommunications equipment on each party's own network) on either side of an Interconnection Point (including the cost of signalling methods, exchange data modifications, software upgrades, etc.) shall be borne by each of the parties itself.

The cost of the ancillary facilities for the telecommunications equipment on either side of an Interconnection Point (including the machine room, air conditioning, power source, testers, billing equipment and other ancillary facilities) shall be borne by each of the parties itself.

Article 20: If the Interconnection transmission lines pass through such communications facilities of the Leading Telecommunications Carrier as conduits (ducts), pole lines, cable inlets and troughs, etc. the Leading Telecommunications Carrier shall charge a leasing fee in accordance with the specified rate. Fees for facilities for which no rate has yet been set shall be determined by the parties on the basis of the construction cost.

Article 21: While effecting Interconnection and inter-communication, telecommunications carriers shall implement the Settlement of Call Charges Between Telecommunications Networks Procedures formulated by the Ministry of Information Industry and may not charge extra fees not stipulated in the standards.

A telecommunications carrier shall carry out inter-network settlements in accordance with the settlement cycle stipulated in the Interconnection agreement and may not delay the settlement of charges payable to the other party without cause.

Article 22: Telecommunications carriers shall prepare accounts of the Interconnection-related receipts and payments for their networks and of the Interconnection costs, in accordance with the relevant State regulations. After such accounts have been examined and verified by the relevant intermediary institution, the data for each year shall be submitted to the Ministry of Information Industry by 31 March of the next year.

The fee rates for inter-network settlement shall be determined on a cost basis. Until a telecommunications carrier's Interconnection costs have been determined, the inter-network settlement rates shall provisionally be determined on the basis of charges.

PART FOUR: INTERCONNECTION AGREEMENTS AND CONSTRUCTION

Article 23: Interconnection agreements shall be entered into (and amended) by telecommunications carriers' organizations at or above the provincial level. Telecommunications carriers' organizations below the provincial level shall no longer separately enter into Interconnection agreements. The two parties to the Interconnection shall conduct consultations on an Interconnection agreement in line with the principles of friendly cooperation and mutual coordination.

Article 24: The main topics for the Interconnection consultations shall include the bases for entering into the agreement, the timetable for the Interconnection works, the mutually accessible services, the technical plan for the Interconnection (which shall include the establishment of Interconnection Points, the installation of the equipment on either side of an Interconnection Point, the dialling method, the routing, the relay capacity as well as the signalling, billing, synchronization and transmission quality, etc.), network functions related to the Interconnection, the provision of telecommunications facilities, the configuration of the equipment used for the Interconnection, the apportionment of the Interconnection costs, post-Interconnection network management (including the two Interconnection parties' scope of maintenance, the mutual reporting system for the quality of inter-network communications, the system for handling inter-network communications malfunctions, the reporting system for major breakdowns in inter-network communications, the scheme for responding to emergencies arising in inter-network communications, etc.), inter-network settlements and liability for breach of contract.

Article 25: The Interconnection parties' organizations at or above the provincial level shall enter into an Interconnection agreement in accordance with the PRC, Contract Law and relevant State regulations. The Interconnection agreement may not contain discriminatory provisions or provisions that prejudice the interests of a third party.

Article 26: Within 15 days of entering into an agreement, the Interconnection parties' organizations at or above the provincial level shall forward the agreement to their respective subordinate organizations and submit the same to the Telecommunications Regulatory Authority for the record.

Article 27: Each of the Interconnection parties shall arrange for the construction work for which it is responsible within the stipulated Interconnection time limit and in accordance with the Interconnection work schedule and the technical plan for the Interconnection agreed upon between them, and the parties shall jointly arrange for testing of the Interconnection. Service may commence once all works have passed preliminary examination.

PART FIVE: INTERCONNECTION TIME LIMITS AND INTERCONNECTION OVERSIGHT

Article 28: For network Interconnections effected simultaneously on a nationwide scale (or across-provinces, autonomous regions and municipalities directly under the central government) the Non-leading Telecommunications Carrier shall submit by hand a written Interconnection request to the Leading Telecommunications Carrier on the basis of the progress of the work on its own network or the circumstances of its network operations, and Interconnection work shall commence after it submits the request to the Ministry of Information Industry for the record.

The Interconnection parties shall enter into an Interconnection agreement within two months after the date of commencement of Interconnection.

For network Interconnections effected simultaneously on a nationwide scale that require the establishment of new Interconnection Points, service shall commence within seven months after the date of commencement of Interconnection.

For network Interconnections effected simultaneously on a nationwide scale that do not require the establishment of new Interconnection Points and only require increasing the capacity of the network or upgrading the network, service shall commence within four months after the date of commencement of Interconnection.

For network Interconnections effected simultaneously on a nationwide scale that only involve exchange data modifications, service shall commence within two months after the date of commencement of Interconnection.

When necessary, the Ministry of Information Industry will impose specific requirements on the time for the commencement of service for network Interconnections effected simultaneously on a nationwide scale.

Article 29: For network Interconnections not effected simultaneously on a nationwide scale the Non-leading Telecommunications Carrier's organization at or above the provincial level shall submit by hand a written Interconnection request to the provincial level organization of the Leading Telecommunications Carrier on the basis of the progress of the work on its own network or the circumstances of its network operations, and Interconnection work shall commence once it submits the request to the communications regulatory authority of the province, autonomous region or municipality directly under the central government for the record. The provincial level organization of the Leading Telecommunications Carrier may not refuse to accept the written Interconnection request submitted by the other party.

The Interconnection parties shall enter into a works agreement before commencement of the Interconnection work. The entry into the works agreement shall not affect the progress of the overall Interconnection works. Before the commencement of service, the parties shall enter into agreements on the mutual access to services, post-Interconnection network management and inter-network settlements. Consultations on the agreements may be conducted simultaneously with the implementation of the works.

If the network Interconnection requires the establishment of new Interconnection points, service shall commence within seven months of the commencement of Interconnection.

If the network Interconnection does not require the establishment of new Interconnection Points and only requires increasing the capacity of the network or upgrading the network, service shall commence within four months after the date of commencement of Interconnection.

If the network Interconnection only involves exchange data modifications, service shall commence within one month after the date of commencement of Interconnection.

When necessary, the communications regulatory authority of the province, autonomous region or municipality directly under the central government shall impose specific requirements on the time for the commencement of service for network Interconnections.

Article 30: If, during the course of effecting Interconnection, the Interconnection cannot be completed within the prescribed Interconnection time limit as a result of an objective reason, the time for Interconnection may be postponed subject to the approval of the two Interconnection parties and reporting of the matter to the Telecommunications Regulatory Authority for the record.

Article 31: The two Interconnection parties shall report the Interconnection commencement date, the service commencement date, and the quality of the inter-network communications during the first three days after the commencement of service, to the Telecommunications Regulatory Authority in writing within 30 days after the commencement of service. The Telecommunications Regulatory Authority shall announce the same in an appropriate manner, depending on the specific circumstances.

Article 32: The Telecommunications Regulatory Authority shall regularly or irregularly convene Interconnection coordination meetings of the concerned telecommunications carriers to supervise the resolution of problems encountered during the course of effecting Interconnection.

The Telecommunications Regulatory Bureau of the Ministry of Information Industry shall report on the status of Interconnection work to the communications regulatory authorities of the provinces, autonomous regions and municipalities directly under the central government and the concerned telecommunications carriers.

PART SIX: POST-INTERCONNECTION NETWORK MANAGEMENT

Article 33: The Interconnection Points for Interconnections established at network Interconnection exchange addresses determined by the Ministry of Information Industry shall remain relatively stable. In principle, changes to existing Interconnection Points shall not be permitted.

If a Leading Telecommunications Carrier unilaterally requests making a change to an existing Interconnection Point, it shall submit its plan for the intended modification to the relevant telecommunications carrier beforehand and may only commence modification works after reaching an agreement with the other party through consultations. The modification works shall be completed within seven months. The costs of the modification works shall in principle be borne by the Leading Telecommunications Carrier.

Article 34: If a network capacity increase or upgrade by either Interconnection party could affect the communications of the subscribers of the other network, the circumstances shall be reported to the other party in writing three months in advance.

If adjustments to the routing, relay circuits, signalling method, exchange data, software versions, etc. within the network of either Interconnection party could affect the communications of the subscribers of the other network, the circumstances shall be reported to the other party in writing 15 days in advance.

Article 35: A Telecommunications carrier shall cooperate with adjustments to the inter-network routing, relay circuits, signalling method, exchange data, software versions, etc., in order to ensure that the quality of inter-network communications meets requirements.

Article 36: Telecommunications carriers shall clearly divide the responsibilities for inter-network operation and maintenance, regularly carry out joint analyses of the quality of inter-network communications, establish a system for mutual reporting on the quality of inter-network communications and make regular reports to the Telecommunications Regulatory Authority. The Telecommunications Regulatory Authority shall arrange for the convening of communications quality coordination meetings based on the specific circumstances.

Article 37: Telecommunications carriers shall establish a system for handling inter-network communications malfunctions. If either Interconnection party discovers an inter-network communications malfunction, it shall notify the other party in a timely manner and the parties shall mutually cooperate to jointly handle the malfunction. The time limit for handling inter-network communications malfunctions shall be the same as the time limit for handling similar malfunctions on the parties' own networks.

Article 38: Without the approval of the Ministry of Information Industry, no telecommunications carrier may cut inter-network communications. Telecommunications carriers shall establish a reporting system for major breakdowns in inter-network communications. If inter-network communications are cut or seriously impaired, the telecommunications carriers shall promptly adopt effective measures to restore communications and timely report the matter to the Telecommunications Regulatory Authority.

For the purposes of the preceding paragraph, the phrase "inter-network communications are seriously impaired" means that the inter-network connection rate (answer bid ratio) is less than 20% or that such circumstances as time lags clearly perceptible to subscribers, call loss or static, etc. arise.

PART SEVEN: MEDIATION AND HANDLING OF INTERCONNECTION DISPUTES

Article 39: The Telecommunications Regulatory Authorities shall resolve Interconnection disputes between telecommunications carriers pursuant to the procedures for the resolution of telecommunications network Interconnection disputes formulated by the Ministry of Information Industry.

Article 40: During the course of effecting Interconnection, if a dispute over any of the issues set forth below arises between telecommunications carriers with the result that the Interconnection cannot be continued or if, after Interconnection, a dispute over any of the issues set forth below arises between telecommunications carriers with the result that the mutual access to network services is affected,

either party may apply to the Telecommunications Regulatory Authority for mediation:

1.the technical plan for the Interconnection;

2.the Interconnection network functions and the provision of communications facilities;

3.time limits for the Interconnection;

4.the provision of telecommunications services;

5.the quality of inter-network communications;

6.Interconnection related costs;

7.other issues requiring mediation.

Article 41: After a Telecommunications Regulatory Authority receives an application for mediation, it shall conduct a preliminary examination of the contents of the application. If upon examination the Telecommunications Regulatory Authority discovers that the contents of the application clearly fail to comply with relevant State regulations or clearly exceed the scope of its authority, it shall give the applicant a written response refusing to accept the application. If upon examination the contents of the application are found to comply with requirements, the Telecommunications Regulatory Authority shall formally commence mediation.

Article 42: The Telecommunications Regulatory Authorities shall arrange for relevant persons to mediate Interconnection disputes between telecommunications carriers.

Mediation shall conclude within 45 days of the date of commencement thereof.

Article 43: If, after the conclusion of mediation, the parties to the dispute fail to reach a consensus, the Telecommunications Regulatory Authority shall randomly invite experts on telecommunications technology, economics and the law to publicly debate the issues. The Telecommunications Regulatory Authority shall render a decision on the Interconnection dispute on the basis of the opinions or proposals arising from the debate and enforce the same on the parties to the dispute.

Article 44: Decisions shall be rendered within 45 days of the date of conclusion of the mediation. Decisions rendered by the communications regulatory authorities of the provinces, autonomous regions and municipalities directly under the central government shall be submitted to the Ministry of Information Industry for the record. The Telecommunications Regulatory Authorities shall publish their decisions in an appropriate manner.

Article 45: Once the decision has been made, the parties to the dispute shall perform it within the time limit specified in the decision.

If one or both parties to the dispute are dissatisfied with the decision, it/they may apply for administrative review or institute administrative proceedings according to the law. Implementation of the decision shall not be halted during the review or administrative proceedings.

PART EIGHT: PENAL PROVISIONS

Article 46: If anyone violates Article 9, 10, 11, 12 (first paragraph), 13, 14, 15, 21 (second paragraph), 33, 35, 36 or 37 hereof, the Telecommunications Regulatory Authority shall ex officio issue an order for rectification and impose a fine of not less than Rmb 5,000 and not more than Rmb 30,000, depending on the seriousness of the circumstances.

If a violation of the preceding paragraph causes direct financial loss to another telecommunications carrier, financial compensation shall be paid to the said telecommunications carrier.

Article 47: If anyone violates Article 8, 12 (second paragraph) or 45 hereof, the Telecommunications Regulatory Authority shall ex officio issue an order for rectification and impose punishment in accordance with the relevant provisions of the PRC, Telecommunications Regulations.

Article 48: If anyone violates Article 21 (first paragraph) or 38 hereof, the Telecommunications Regulatory Authority shall ex officio issue an order for rectification, confiscate the illegal income (if any) and impose punishment in accordance with the relevant provisions of the PRC, Telecommunications Regulations.

PART NINE: SUPPLEMENTARY PROVISIONS

Article 49: These Provisions shall be implemented from the date of promulgation. The Administration of the Interconnection of Telecommunication Networks Tentative Provisions promulgated by the Ministry of Information Industry on 7 September 1999 shall be repealed simultaneously.