Ministry of Industry and Information Technology’s Notice on Launching Pilot Work for Expanding Opening Up of Value-Added Telecommunications Services
Promulgation Authorities: The State Administration for Market Regulation
Release Date: 2024-04-08
Effective Date: 2023-04-08
Source: https://www.gov.cn/zhengce/zhengceku/202404/content_6944441.htm
Original Title: 工业和信息化部关于开展增值电信业务扩大对外开放试点工作的通告
Gong Xin Bu Tong Han [2024] No. 107
In order to implement the guideline of the 20th National Congress of the Communist Party of China and the deployment of the Central Economic Work Conference, promote high-level opening-up, take initiative to align with high-standards international economic and trade rules, continuously optimize the business environment for foreign investment, and serve the building of a new development pattern, the Ministry of Industry and Information Technology (MIIT) has decided to expand the pilot program of opening up the value-added telecommunications services to the outside world. The relevant matters are hereby announced as follows:
I. The pilot program will be first carried out in the Comprehensive Demonstration Zone for Expanding Opening up in the Service Sector in Beijing, the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone and the Leading Area for Socialist Modernization Construction, the Hainan Free Trade Port, and the Pilot Demonstration Area of Socialism with Chinese Characteristics in Shenzhen. The people’s governments of the provinces (centrally administered municipalities) where the four regions are located are responsible for organizing the formulation of a pilot implementing plan in accordance with the Pilot Program for Expanding the Opening -up of Value-added Telecommunications Services to the Outside World (see the Annex Hereto). The MIIT is responsible for organizing the evaluation and argumentation of the implementing plan and conditions for the pilot program in the four regions and shall issue official replies.
II. In regions approved to carry out the pilot program, the restrictions on the foreign equity ratios for internet data centers (IDC), content delivery networks (CDN), internet service providers (ISP), online data processing and transaction processing, information releasing platforms and delivery services included in information services (excluding the operation of internet news information, online publishing, online audio and video, and internet culture), as well as information protection and processing services, will be removed.
III. Any foreign-invested telecommunications enterprise that intends to provide the aforesaid value-added telecommunications services in the pilot regions shall, in accordance with the relevant provisions, apply to the MIIT for the reply to its pilot services operation of telecommunications services, abide by the provisions of the relevant laws and regulations and the reply to its pilot services operation in the activities of telecommunications services, and accept and cooperate in supervision and administration by telecommunications administrations and the relevant competent authorities.
IV. The MIIT shall organize the evaluation of pilot implementation, summarize the advanced experience, modes and typical cases about the pilot program in a timely manner, and publicize and promote them.
V. The pilot regions will be expanded in due time in the light of the implementation of the pilot program, and the relevant matters will be notified separately.
8 April 2024
Pilot Program for Expanding the Opening of Value-added Telecommunications Services to the Outside World
I. Objectives of the Pilot Program
We should, under the pilot program, expand the opening-up of the telecommunications sector to the outside world, promote and optimize the environment for foreign investment, enrich the supply in the telecommunications market, stimulate the vitality of market players, improve the service level of the sector, deeply participate in international cooperation, form a three-dimensional system and safety regulation system, promote the high-quality development of the information communications sector, form experience and models that can be replicated and promoted, and serve the building of a new development pattern.
II. Content of the Pilot Program
In the regions approved to carry out the pilot program, the restrictions on foreign equity ratios in internet data centers (IDC), content delivery networks (CDN), internet service providers (ISP), online data processing and transaction processing, information publishing platforms and delivery services (excluding operation of internet news information, network publishing, network audio and video, and internet culture), and information protection and processing services, will be removed.
2. Requirements for business operation
The registration address and the location of service facilities (including rented and purchased facilities) of operators of pilot opening-up services shall be within the same pilot region, and it is not allowed to purchase or rent CDN and other facilities outside the pilot region to carry out accelerated services. The service scope of ISPs is only limited to the pilot region, and Internet access services shall be provided for users through Internet access equipment of basic telecommunications enterprises; the scope of other services may cover the whole country.
III. Application Conditions and Assessment Procedures in Pilot Regions
A pilot region shall have certain institutional advantages in terms of opening-up and innovation, good foundation and great potential for the development of the information and communications sector, sound system for attracting foreign investment, sufficient safety regulation capacity and rich experience in pilot demonstration. It shall also firmly establish a systematic concept, coordinate development and security, provide necessary mechanisms and resource support in the light of its own positioning and development needs, support the local communications administration in effectively performing the administration of expanding the opening -up of value-added telecommunications services to the outside world, improve and perfect the safety supervision and guarantee system, obtain more experience that can be replicated and promoted, and better play a leading and exemplary role in the opening up and innovative development of telecommunications services .
The provincial people’s government of a region where the pilot program is proposed shall propose an implementing plan for the pilot program in light of its actual situations and submit the same to the MIIT. The MIIT shall, in consultation with the relevant authorities, organize expert evaluation and demonstration, survey and check the safety regulation and guarantee system, among others, and give an official reply on approving the pilot program in a qualified region.
IV. Exit Mechanism for the Pilot Program
In the event of frequent violation of laws and regulations by enterprises in a pilot region, or if risks are concentrated, or it is difficult to guarantee safety regulation conditions, the MIIT may, in consultation with the relevant authorities, reduce the scope of the pilot services as the case may be, or terminate the pilot program in advance in the pilot region in serious cases. Regions that exit from the pilot program shall organize the relevant enterprises to safeguard the legitimate rights and interests of consumers according to the relevant laws and regulations, and properly handle the relocation of existing users, network exit and other aftermath work.
V. Supporting Measures for the Pilot Program
As the department in charge of the industry, the MIIT shall work with the relevant authorities to assess the expansion of the opening -up of value-added telecommunications services to outside world. The relevant authorities shall, based on their respective responsibilities, effectively implement the supporting measures for the opening-up, strengthen information exchange and sharing and cross-departmental coordination, and prevent and defuse safety risks.
As local telecommunications regulators, local communications administrations shall work with the relevant departments to urge the enterprises under the pilot program for expanding the opening -up of value-added telecommunications services to the outside world to standardize their operations, supervise and manage the service quality, establish information reporting and regular random checks mechanisms for enterprises, strengthen the network and data safety regulation capabilities, and urge enterprises to effectively perform their duties as subjects of safety.
Governments of the pilot regions shall properly manage and provide services for the pilot enterprises in their respective regions, establish a sound information sharing, coordination and cooperation mechanism, build a two-way notification and data comparison mechanism, and effectively connect the mechanisms of license connection, supervision linkage and law enforcement coordination, among others, so as to create a stable, fair, transparent and predictable environment for development. Governments of the pilot regions shall provide personnel, funding and other supports, support local communications administrations in strengthening the development of talent teams for supervision, upgrade and transform the Internet information security management system, establish the Internet regulatory information system and provide regulatory support for the pilot program.
VI. Summary of the Pilot Program
Governments of the pilot regions shall regularly sort out and summarize the pilot situation and problems and report the same to the MIIT. The MIIT shall work with the relevant authorities to evaluate and circulate the information in the pilot regions, timely summarize and promote the advanced experience, modes and typical cases, among others, of the pilot program.