Solving The Bad Line: New Telecom Construction Measures

Baker & McKenzie

The Ministry of Information Industry (MII), China's telecom regulator, has formulated new rules aimed at controlling and monitoring investment in the construction of telecom networks in the PRC. The Administration of Telecommunications-related Construction Procedures (the Procedures) entered into effect on February 1 2002. The Procedures require companies to receive MII's approval before they can build telecommunications or cable television networks. The Procedures apply to new construction, reconstruction and expansion of public telecom networks, dedicated telecom networks, and radio and television transmission networks within the PRC. Under the Procedures, MII is responsible for the overall supervision of the construction of the country's telecom network, and for the invitation and submission of bids for telecom construction activities. Basic telecom operators as defined under the PRC Telecommunications Regulations  (中华人民共和国电信条例)(September 2000) are allowed to invest in the construction and operation of telecom facilities in accordance with their permitted scope of business.