China's Broadband Access Market Opens to Public Investment


On the afternoon of December 25, the Ministry of Industry and Information Technology released the "Circular on Opening up the Broadband Access Market to Private Capital" (hereinafter referred to as the "Notice"), encouraging private capital to enter the broadband access market in multiple modes.

For the privately-owned enterprises to build their own infrastructure and use their own brands to provide users with broadband Internet access, the Ministry of Industry and Information Technology has formulated specific pilot programs. The first batch of pilot cities consist of 16 cities: Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, Hangzhou and Ningbo. , Xiamen, Qingdao, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing and Chengdu. The Ministry of Industry and Information Technology expands the scope of pilot projects according to the pilot conditions. The pilot time is three years, and the "Pilot Program" will be implemented from March 1, 2015.

In addition, the Ministry of Industry and Information Technology introduced two other modes: One of them is to encourage private enterprises to cooperate with the basic enterprises in various forms such as capital cooperation, business agency, and network maintenance, and share the benefits, and the other is to encourage Internet access. Private enterprises with service business (ISP) business licenses lease the access network resources from basic telecommunications companies and provide broadband Internet access services for users with their own brands.

In order to ensure the active and steady advancement of open work and earnestly protect the legitimate rights and interests of consumers, the “Notice” put forward requirements for basic telecom companies and private enterprises, and formulated and issued the “Broadband Access Network Business Open Pilot Program” for the first open model. .

The Ministry of Industry and Information Technology pointed out that opening up the broadband access market to private capital is an important measure for China to further deepen the reform and opening up of the telecommunications industry. It will vigorously stimulate private investment, expand information consumption, further prosper the information and communication market, and promote the construction of broadband network infrastructure and broadband services. The improvement of service level will provide more choices and better services for customers.

The following is the full text of the pilot program:

Broadband Access Network Business Open Pilot Program

First, the pilot purpose

Encourage and guide private capital to further enter the field of basic telecommunications, participate in the construction of broadband network facilities and business operations, promote the development of broadband network infrastructure and market competition in broadband services, enhance the innovation capability and service level of broadband services, explore the development mode of broadband access services, and gradually Establish and improve a supervisory system that integrates management before, during, and after the event to lay the foundation for formal business use.

Second, pilot business scope

The pilot enterprises can build all or part of the wired communication network facilities from the user end to the network access server according to the requirements of the Philippine-to-home national standards and the principles of co-construction and sharing, and can carry out the rental and sale of corresponding network elements. The pilot companies of Internet access service business licenses can also provide their own brands with broadband Internet access to end users.

Broadband access network services belong to basic telecommunication services.

Third, pilot cities and pilot time

The first pilot cities are: Taiyuan, Shenyang, Harbin, Shanghai, Nanjing, Hangzhou, Ningbo, Xiamen, Qingdao, Zhengzhou, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing and Chengdu. The Ministry of Industry and Information Technology expands the scope of pilot projects according to the pilot conditions.

The pilot time is 3 years.


Fourth, pilot subjects

The pilot entity is a private enterprise established according to law, and private enterprises with experience in the operation of the resident network are encouraged to participate in the pilot. Specific conditions require the following:

(1) The applicant is a private company established according to law.

(2) There are funds suitable for conducting business activities and the minimum registered capital is 20 million yuan.

(C) More than 3 years of experience in the telecommunications industry.

(d) Professionals who are suitable for engaging in business activities.

The person in charge of corporate technology should have more than 8 years of experience in the construction and operation of broadband networks, and have senior technical titles or equivalent in the field of information and communication and related professional; the person in charge of corporate finance should have the professional and technical qualifications as an accountant or perform accounting work for three years The above experience; The company has more than 20 technical and management personnel with junior or higher (including junior) professional title or equivalent professional level in information communication and management related professional.

(e) Ability to provide long-term services to users.

The applicant must have a dedicated customer service department and customer service staff, establish a sound service quality management system according to service specifications and related requirements, publish user complaints and service supervision calls, accept user complaints, have service assurance measures and market withdrawal solutions.
(6) The necessary facilities and facilities.

Applicants should have a fixed office location and have business premises or marketing channels that are compatible with the broadband access network business. A customer service system, billing management system, and business management system must be established to ensure the security of the system.

(7) Have network and information security guarantee capabilities

Applicants should establish a safety management department, clarify safety responsible persons and contacts, establish network and information security management systems and emergency response mechanisms, and establish and improve network and information security technical safeguard measures in accordance with relevant requirements and technical standards.

(8) Other conditions stipulated by laws and regulations such as the “Telecommunication Regulations of the People's Republic of China” and the “Measures for the Administration of Business Licenses for Telecommunication Services”.

V. Approval subject

The Ministry of Industry and Information Technology entrusts the communications authority of the province (autonomous region and municipality directly under the Central Government) where the pilot cities are located to accept and examine applications for local broadband access network pilots and issue pilot approvals. The private enterprises applying for the trial submitted applications to the Communications Administration of the province (autonomous region and municipality directly under the Central Government) where the pilot cities are located.

Sixth, pilot requirements

(1) Basic telecommunications companies must not sign agreements with pilot companies that contain exclusive terms.

(2) Basic telecommunication enterprises shall provide pilot enterprises with access to the online metropolitan area network bandwidth resources that are not lower than their own service quality.

(3) Basic telecom companies and pilot enterprises shall negotiate and determine the access price of the broadband resources for the alliance based on the principle of fairness and reasonableness and equal consultation.

(4) When pilot enterprises establish wired communication network facilities, they shall strictly abide by the "Circular on Implementation of the National Fiber-to-the-Home Standards", "Construction and Acceptance Specifications for Fiber-to-the-Home Communication Facilities in Residential and Residential Buildings," and "Residential Areas." Regulations relating to the construction of telecommunications projects such as the Design Specification for Fiber-to-the-Home Communication Facilities in Residential Buildings. At the same time, it is necessary to abide by the policies on infrastructure construction and sharing, communication facilities protection, etc., and prohibit the signing of exclusive agreements with third parties such as real estate agents, property management companies, or owners' committees to protect users' freedom of choice.

(5) When pilot enterprises provide services to users, they shall strictly abide by relevant industry standards and management requirements and sign service agreements with users. The agreement should explicitly stipulate access rates, tariffs, and the way in which prepayments and dispute resolution are handled when the company terminates operations in advance. If the pilot operation is terminated in advance, it shall report to the competent telecommunications department and inform the user in advance in accordance with the relevant requirements of the "Telecommunications Regulations", "Management Measures for the Telecommunications Business Operation Permit" and "Telecommunications Service Specification" and the contents of the user agreement, and properly handle the prepayment repayment. , Expense settlement, dispute resolution and other aftermath work, and effectively protect the legitimate rights and interests of the already developed users.

(6) Pilot enterprises must be connected to the backbone network of the Internet through the metropolitan area network of the basic telecommunication enterprises. The service nodes in different cities must not be directly connected. The rented access network resources are strictly prohibited from subletting for resale and their access network construction. The scope and connection (aggregation) node location should report to the provincial (autonomous region, municipality) communications authority, and cooperate with related departments to do a good job of network and information security.

(7) The service quality issues between the pilot enterprises and users shall be handled by the complaint acceptance center of the communications authority of the province (autonomous region, municipality directly under the Central Government) where the pilot cities are located.

Seventh, other

(1) Pilot enterprises submit business operations on a monthly basis according to the requirements of the provincial (autonomous region, municipality) communications bureau. The communications bureau of the province (autonomous region and municipality directly under the Central Government) where the pilot city is located shall report the progress of the pilot work of the broadband access network business to the Ministry of Industry and Information Technology on a monthly basis.

(2) Pilot enterprises can participate in broadband China projects, broadband demonstration projects, universal services, etc., and enjoy relevant policies in the same way as basic telecommunications companies.

(3) If a pilot company violates relevant laws and regulations during the pilot period, it shall be punished according to law.

(d) The Ministry of Industry and Information Technology will adjust relevant policies in due course according to the development of the pilots to study the formal commercial use of broadband access services.

(5) The "Pilot Program" will be implemented from March 1, 2015.

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