Ministry of Information Industry, Questions Relevant to the Establishment of Domestic Joint Ventures to Operate Telecommunications Business by Telecommunications Business Operators Circular

Issued: July 26 2001

Main contents: The Circular is aimed at regulating telecommunications business operators who establish purely domestic joint ventures and authorize such joint ventures to operate their telecommunications business. The Circular requires the holder of the telecommunications licence in a joint venture who directly holds 51% or more of the shares to file the circumstances of the joint venture with the relevant department for the record (Item Two). Holders of telecommunications licences with 51% or less of the shares cannot, in any way, permit the joint venture to operate its telecommunications business without authorization (Item Three). Joint ventures indirectly invested in by holders of telecommunications licences, for instance another joint venture established by the joint venture, are required to apply for their own telecommunications licences.
Related legislation: PRC, Telecommunications Regulations, Sep 25 2000, CLP 2000 No.9 p2