Relaxing Entry Criteria for the Fixed-Network Market

The National Communications Commission continues to focus on relaxing the criteria for entry to the telecommunications market. The new framework of horizontal communications regulation which is incorporated into the draft Communications and Broadcasting Regulation divides communications businesses into three categories:


● the infrastructure layer;
● the operation and management layer;

● the content and service application layer.

Participants may choose to pursue only their core business, in which case the threshold for market entry is substantially reduced. In view of the considerable time required to draft and enact new legislation, the commission plans to amend the existing Regulation on Fixed-Network Telecommunications Business.

The commission held a public hearing on September 12 2007 to consult on the new policy of liberalizing entry to the fixed-network telecommunications market; new measures will be implemented by 2008.

The commission’s short-term plan is to establish a reasonable threshold for entry to the telecommunications market and for construction capacity. In light of technological advances, the minimum paid-in capital and performance bond (equal to 10% of the minimum paid-in capital) will be carefully reviewed in response to the decline in equipment costs. As part of the plan, the limitations on minimum paid-in capital and performance bonds would be removed after two years and the government would allow existing or potential operators to produce their own construction plans in line with their financial circumstances.

The commission also plans to establish an independent auditing mechanism to ascertain the revenues and costs of each service and promote the standardization of revenue and cost calculations from 2008.


(1) These thresholds apply to two local operators and one international operator. (2) These thresholds apply to potential operators.

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