Assistance in relation to the Implementing Rules and Regulations for the Telecommunications Law of Lao PDR

16 August 2014

Acknowledgement

This report was prepared by Scott W Minehane from ITU Asia-Pacific Special Service Agreement: 5304, under the direction of the Telecommunication Development Bureau (BDT).

The International Telecommunication Union (ITU) would like to express sincere gratitude to the Ministry of Communications and ICT, Myanmar for their support and assistance to the ITU’s expert. Mr Scott W Minehane acknowledges the extensive assistance of Ms Aurora Rubio of the ITU, as well as Gordon Toy, Sam Keogh and Victoria Draudins at Windsor Place Consulting, in the preparation of the report and other project deliverables.

Acknowledgement is also extended to the Government of Australia through the Department of Broadband, Communications and the Digital Economy for the funding support for this Project.

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© ITU 2014

All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of ITU.

Executive Summary

The Government of Lao P.D.R., represented by the Ministry of Posts and Telecommunications (MPT) as part of its broader reforms and re-entry into the world economy, has been focused on instituting new sector legislation and an effective regulatory framework that meets the country’s plans for sector development and expansion. This has included in particular the introduction of the Law on Telecommunications, enacted by the National Assembly in December 2011.

One of the priorities for Lao P.D.R. is the establishment of effective Implementing Rules and Regulations (IRR) and to put in place the necessary regulatory provisions to give effect to the Law on Telecommunications. This is to be done in accordance with regulatory best practice within the ASEAN and broader Asian region, with due consideration given to the needs and requirements of Lao P.D.R. This will produce a regulatory framework conducive to growth within the sector, enhance competition between network operators, and improve the range and affordability of services within Lao P.D.R. telecommunication market.

Lao P.D.R. has the potential to experience significant sector growth in coming years, however the level of growth will depend to a large degree on the right regulatory approach, along with transparent and consistent reform across all aspects of the telecommunications sector.

The Government of Lao P.D.R. is keen to ensure that the Telecommunications Law and associated IRRs are clear to all stakeholders, including clear English translations that reflect the full meaning and intent of the provisions. This will assist in the establishment of transparent rules and make the rights and obligations of market participants, including foreign investors, more certain.

Foreword

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Table of Contents

Executive Summary

Foreword

1 Introduction

1.1 Context

1.2 Lao PDR’s Telecommunications Market

1.2 Project Scope

1.3 The Execution of this Project

1.4 Consultation with MPT/Department Representatives and Other Advisors

1.5 Concrete Deliverables

2 Effective Implementing Rules and Regulations

2.1 Key Elements of a Quality Sector Regulatory Regime

2.2 Supporting Lao PDR’s ICT Policy Objectives

2.3 Key Deliverables

3 Options for the Establishment of an Independent Regulator

3.1 Benefits of Regulator Independence

3.2 Degrees of regulator autonomy

3.3 Market confidence in the regulator

4 Licensing Framework

4.1 Purpose of a Licensing Framework

4.2 Licence Structure in Lao PDR

4.3 Unified Licensing

4.4 Licensing and Universal Service

5 Conclusions

Attachment 1: Best Practice for Regulator Independence and Organisational Structure

1.1 Responsibilities of the Independent Regulator

1.2 Effective Organisational Structures for Regulators

1.3 Model Organisational Structures from Regional Countries

Attachment 2: Malaysia’s Licensing Regime

Appendix A.1: Regulation on Telecommunications Licensing

Appendix A.2: Explanatory memorandum for the regulation on telecommunications licensing

Appendix B.1: Regulation on Mobile Virtual Network Operators Service

Appendix B.2: Explanatory memorandum for the regulation on mobile virtual network operators service

Appendix C.1: Regulation on Telecommunications Access and Interconnection

Appendix C.2: Explanatory memorandum for the regulation on telecommunications access and interconnection

Appendix D.1: Regulation on Telecommunications Competition

Appendix D.2: Explanatory memorandum for the regulation on telecommunications competition

Appendix E.1: Regulation on Resolution of Disputes by Administrative Procedure

Appendix E.2: Explanatory memorandum for the regulation on resolution of disputes by administrative procedure

Appendix F.1: Regulation on retail tariffing

Appendix F.2: Explanatory memorandum for the regulation on retail tariffing

Appendix G.1: Regulation on numbering plan

Appendix G.2: Explanatory memorandum for the regulation on numbering plan

Appendix H.1: Regulation on Universal Service and the Telecommunications Development Fund

Appendix H.2: Explanatory memorandum for the regulation on universal service and the telecommunications development fund

Appendix I.1: Regulation on Domestic Roaming Services for the Increased Provision of Universal Services

Appendix I.2: Explanatory memorandum for the regulation on domestic roaming services for the increased provision of universal services

Appendix J: Law on Telecommunications Implementing Rules and Regulations

Appendix K: Application for Telecommunications License

List of tables and figures

Tables

Exhibit 1: ICT Development Index (ASEAN countries)

Exhibit 3: Summary of operators in Lao PDR

Exhibit 4: Aggregate investment in Lao telecommunications sector (USD)

Exhibit 5: Aggregate component operator investment (USD)

Exhibit 6: Development and Implementation of Lao PDR’s ICT policy

Exhibit 7: Outline of draft IRR presentation

Exhibit 9: Possible facilities and services for each licence type

Exhibit 1.1: Responsibilities of a fully independent regulator

Exhibit 1.2: Three dimensions of organisational responsibility

Exhibit 1.4: Degrees of regulator autonomy

Exhibit 1.5: Staff size of regulators in selected Asian and Asia Pacific countries

Exhibit 2.1: Facilities and services under Malaysia’s unified licence categories

Figures

Exhibit 8: Licence types, issuing authority and licence duration

Exhibit 1.3: ITU model organisational structure

Exhibit 1.6: IDA organisational structure

Exhibit 1.7: ACMA organisational structure

Exhibit 1.8: NCC organisational structure

Exhibit 1.9: MCMC organisational structure

Exhibit 1.10: KCC organisational structure

Exhibit 1: Explanation of key Articles on Regulation on the Resolution of Disputes by Administrative Procedure

Boxes

Exhibit 2: Co-operation between Lao PDR and the ITU

1 Introduction

1.1 Context

The Government of Lao PDR, represented by the Ministry of Posts and Telecommunications (‘MPT’) as part of its broader reforms and re-entry into the world economy, has been focused on instituting new sector legislation and an effective regulatory framework that meets the country’s plans for sector development and expansion. This has included in particular the introduction of the Law on Telecommunications, enacted by the National Assembly in December 2011.

One of the priorities for Lao PDR is the establishment of effective Implementing Rules and Regulations (‘IRR’) and to put in place the necessary regulatory provisions to give effect to the Law on Telecommunications. This is to be done in accordance with regulatory best practice within the ASEAN and broader Asian region, with due consideration given to the needs and requirements of Lao PDR. This will produce a regulatory framework conducive to growth within the sector, enhance competition between network operators, and improve the range and affordability of services within Lao PDR’s telecommunications market.

Lao PDR has the potential to experience significant sector growth in coming years, however the level of growth will depend to a large degree on the right regulatory approach, along with transparent and consistent reform across all aspects of the telecommunications sector. The Government of Lao PDR is keen to ensure that the Telecommunications Law and associated IRRs are clear to all stakeholders, including clear English translations that reflect the full meaning and intent of the provisions. This will assist in the establishment of transparent rules and make the rights and obligations of market participants, including foreign investors, more certain.

Exhibit 1 below outlines Lao PDR’s current standing in the ASEAN group of countries with regard to ICT development. Lao PDR is currently one of the lowest ranked country in the region, however it also has the potential for rapid development.

Exhibit 1: ICT Development Index (ASEAN countries)

Country

IDI

Ranking
(out of 153 countries)

2011

2010

2008

2011

2010

2008

Brunei Darussalam

4.95

4.85

4.97

57

52

44

Cambodia

1.96

1.88

1.63

121

119

120

Indonesia

3.19

3.01

2.39

95

97

107

LAO PDR

1.99

1.84

1.64

120

120

119

Malaysia

4.82

4.63

3.96

58

57

57

Myanmar

1.67

1.65

n.a.

131

129

n.a.

Philippines

3.19

3.04

2.69

94

94

95

Singapore

7.66

7.47

6.71

12

10

15

Thailand

3.41

3.29

3.03

92

89

80

Viet Nam

3.68

3.41

2.76

81

86

91

World (average)

4.15

Developed countries (average)

6.52

Developing countries (average)

3.42

The ITU has had previous experience in assisting Lao PDR and the MPT in the development of ICT policy and sector legislation. This experience is outlined in Exhibit 2 below.

Exhibit 2: Co-operation between Lao PDR and the ITU

The ITU has assisted Lao PDR on a number of projects, including most recently with the development of the country’s draft Decree on Radiofrequency Management. This project involved the drafting of provisions relating to spectrum management, and specifically the obligations and responsibilities of the Minister and MPT, planning and allocation of radio frequency spectrum, spectrum and apparatus licensing, interference, standards and certification, and safety.

This project was developed in accordance with the ITU’s high-level principles for the efficient management of spectrum and an analysis of regulatory best practice in the region. The Radiocommunications Law is one of Lao PDR’s key legislation, including the Telecommunications Law, Security Law, and other regulations covering IT, radio frequency and standardisation.

The ITU has also provided assistance to Lao PDR on ICT development, including the July 2012 ITU Workshop on Bridging the Standardisation Gap and on areas such as cyber security, as well as other policy and regulatory assistance. The goals of this workshop were to provide concrete advice and best practices to developing countries on global standards development and building national standards readiness. The standardization gap refers to disparities in the ability of developing countries, relative to developed ones, to access, implement, contribute to and influence international ICT standards, specifically ITU Recommendations.

1.2 Lao PDR’s Telecommunications Market

The telecommunications market in Lao PDR consists of three major fixed and mobile operators – ETL, Lao Telecom and Star Telecom. Lao Telecom, ETL and Star Telecom are all, as a minimum majority owned by the Lao Government. There are also two smaller providers – Vimpelcom, which supplies mobile services and, and Planet Online, which supplies wireless Internet services. LANIC is international Internet gateway provider affiliated with the MPT. A summary of Lao PDR’s operators is provided in Exhibit 3 below.

Exhibit 3: Summary of operators in Lao PDR

Operator/ISP

Technology/service

Ownership

ETL

PSTN

2.5G (GSM 900/1800, GPRS)

3G (WCDMA 2.1 GHz)

ISP (dial up, ADSL, HIL, VPN)

100% Lao Government

LANIC (Lao National Internet Centre)

International Internet Gateway

Affiliate of MPT

Lao Telecom

PSTN

2.5G (GSM 900/1800, GPRS)

3G (WCDMA) launched July 2008

ISP (dial up, ADSL, IP Star)

51% Lao Government

49% Shin Corporation (Thailand), reverts to Lao Government in 2021

Planet Online

Broadband wireless Internet (700 MHz ISP)

100% private

Star Telecom

PSTN

2.5G (GSM 900/1800, GPRS)

3G (WCDMA)

ISP (dial up, ADSL)

51% Lao Government

49% VietTel (Viet Nam)

Vimpelcom

2.5G (GSM 900/1800, EDGE)

WiMAX

22% Lao Government

78% Vimpelcom

The telecommunications market in Lao PDR has been growing for a significant period of time, both in terms of operator revenue and investment, as Exhibit 4 below shows. The Government’s ICT policy, along with the new IRR, are designed to facilitate further expansion in the sector by ensuring an effective regulatory framework is in place.

Exhibit 4: Aggregate investment in Lao telecommunications sector (USD)

2006

2007

2008

2009

2010

Investment

22,720,264

51,673,726

82,437,751

123,118,578

Revenue

878,102,354

1,105,390,051

1,369,214,608

1,769,146,716

1,665,344,429

Expenses

593,711,286

684,194,930

965,639,269

1,213,224,313

1,599,591,874

Net Profit

226,182,348

335,080,152

318,389,030

428,360,011

296,849,872

Source: MPT

Sector growth has predominantly occurred in mobile, Internet and transmission services, as Exhibit 5 below shows. While investment in fixed services continues to grow, it represents a declining proportion of total sector investment. It is anticipated that the telecommunications sector will continue to experience similar growth into the future, with operators continuing to expand network capacity and coverage.

Exhibit 5: Aggregate component operator investment (USD)

2006

2007

2008

2009

Fixed

97,896

60,174

800,000

1,174,464

Public phone

0

0

0

0

Post-paid (GSM)

15,167,991

16,597,846

35,565,181

24,170,937

Pre-paid (GSM)

0

0

14,613,864

19,420,995

WiMAX (broadband)

0

0

486,795

0

Internet

255,908

150,000

1,210,555

3,204,000

Fixed wireless (CDMA)

17,760

0

758,928

50,000

Transmission

4,004,209

2,123,706

11,872,428

11,902,171

Miscellaneous

3,177,000

32,742,000

17,130,000

63,196,011

Total investment

22,720,764

51,673,726

82,437,751

123,118,578

Source: MPT

1.2 Project Scope

Under the direction of the Head of ITU Area Office for South East Asia in Jakarta, and in close collaboration with the respective project teams from the Ministry of Posts and Telecommunications (‘MPT’) of Lao PDR, and with ITU’s Regulatory and Market Environment Division (‘RME’), the ITU expert was required to:

1 Review the English version of the Telecommunications Law and other relevant government decrees and issuances whose English versions will be provided by MPT;

2 In collaboration with MPT, improve the English translation of the Law as necessary to provide clarity to all stakeholders;

3 Prepare and submit a draft Implementing Rules and Regulations (IRR) for the Telecommunications Law;

4 Prepare explanatory notes on the Implementing Rules and Regulations for use during its deliberation and public consultations;

5 Prepare and submit comprehensive materials on best practices and options on establishing a telecommunication regulator in Lao PDR, including definition of its functions;

6 Develop and recommend an appropriate telecommunication licensing framework including guiding principles, criteria and procedures for approval of license;

7 Recommend necessary workflows, procedures, forms for application of business license, telecommunication equipment/device license, equipment/device certification for export/import, spectrum license, application for installation, maintenance and repair of telecommunication equipment, dispute resolution, administrative action, penalization for offences and penalties;

8 Organize a 1-day workshop participated by MPT and other stakeholders to present preliminary findings;

9 Provide hands-on guidance to counterparts on above tasks;

10 Closely work with counterpart staff in the performance of the above tasks and in finalizing mission report;

11 Submit final report on the above activities and any other information deemed necessary for use during the second mission; and

12 Perform any other related duties assigned to him/her by the Head of ITU Area Office for South East Asia.

1.3 The Execution of this Project

This project involved a single mission to Lao PDR, which took place from 4 to 13 July 2013. During the field visit to Lao PDR, extensive consultations were conducted with representatives from the MPT. While most of the documents were delivered while on the Mission in Lao PDR or soon after, this final report was completed offsite.

Along with the scope of work, the focus of the project has been framed through discussion with MPT and ITU officials in country, including updates on the development of broader ICT policy in Lao PDR, an outline of the key changes to the 2011 Telecommunications Law, and an overview of the key principles for effective regulations for the implementation of the Law.

1.4 Consultation with MPT/Department Representatives and Other Advisors

For the preparation of the Draft Implementing Rules and Regulations, Report and accompanying appendices, the ITU Expert worked in collaboration with representatives of the MPT, the Department of Planning and Cooperation, the Department of Information Technology and the Telecommunications Division. Staff meet and consulted with included:

Senior MPT staff:

Mr Snith Xaphakdy,

Mr Chaleaun Siboungheun,

Mr Vivatthana Kttieovongphachanh,

Dr Chaymaly Phakasoum

Department of Planning and Cooperation:

Mrs Kesone Soulivong, Deputy Director General

Mr Khonesavanh Keosopha

Mr Chanthaniphone Kheuapkhanvone

Miss Soudalin Khouangvichit

Mr Vansana Latmany

Ms Malounny Thipphanvong

Mr Vongpasit Thongkeo

Department of Information Technology:

Mr Mysith Ahnatchaleun, Director General

1.5 Concrete Deliverables

In respect of the scope of the project outlined above, the deliverables of this project consist of:

1 A Report containing analysis and findings for Tasks 1-7;

2 Draft improved English version of the Telecommunications Law; and

3 Draft IRR for the Telecommunications Law ready for public consultation, with accompanying explanatory notes.

2 Effective Implementing Rules and Regulations

2.1 Key Elements of a Quality Sector Regulatory Regime

In the ITU expert’s perspective, the key elements of implementing rules and regulations under the new Law include inter alia:

(i) Clear and Concise Licensing framework: The licensing framework forms a key element of the IRR and must set out detailed rules and procedures for the application, assessment and approval of telecommunications licenses in Lao PDR. The rules and procedures must also be clear to all licensed operators and prospective applicants, and follow clear and transparent licensing principles. The licensing framework should facilitate the Government’s plans for potential market expansion by allowing new entrants – including service based MVNOs – to offer telecommunications services if this is desired.

(ii) Spectrum management: The MPT should ensure clear powers and responsibilities are provided to the relevant authority for the management of spectrum. Spectrum should be allocated on a technology neutral basis to enable an optimal mix of technology. Following the promulgation of the Decree on the Radio Frequency Management the IRR should be issued taking into account the IRR under the Law on Telecommunications (this is because there is an overlap between the two and they ought be consistent).

(iii) Interconnection: The IRR must implement an effective framework for the establishment of interconnection and collocation agreements between operators. MPT may be granted power to mandate sharing and to monitor and enforce interconnection agreements between operators. The MPT may be granted the power to ensure interconnection charges are cost-oriented and do not have a negative impact on competition and retail prices.

(iv) Competition safeguards: The IRR may include provisions that ensure competition in the market and preventing the abuse of market power (dominant firms and significant market power). Such provisions may be included in the IRR or in more general competition and consumer protection legislation or regulations.

(v) Consistent regulation: The IRR should be drafted in a way that is consistent with international norms and regulatory best practice. The provisions should provide sufficient detail while maintaining clarity and providing certainty for all stakeholders.

(vi) Independent regulator: The Government of Lao PDR is currently considering the possibility of establishing an independent regulatory body for sector oversight and the enforcement of the Law on Telecommunications Law and IRR. This could involve the establishment of an entirely new body, or the evolution of the relevant authorities within the MPT to a standalone regulator. While this is not something that can be done overnight or indeed ought be done in haste it should remain a long term objective. There are a number of steps that should be taken to ensure that the process is done well and the necessary skill sets are nurtured.

2.2 Supporting Lao PDR’s ICT Policy Objectives

The ITU has more broadly identified a number of main areas that are key to an effective regulatory framework in Lao PDR. These are outlined in Exhibit 6 below.

Exhibit 6: Development and Implementation of Lao PDR’s ICT policy

Implementation

Details

Priority action

• Implementation of Telecommunications Law, including IRR

• Licensing framework

• Implementation of a Decree on Radiofrequency Management including IRR

• Security Law

Key legislation

• Decree on Radiofrequency Management

• IT Regulation (Internet, Information Cyber Law, content, etc.)

• Security

• Standardisation

Human resource development

• Improvement of ICT curriculum covering current and next generation technology

• Training delivered through Institute of Posts and Telecommunications (‘IPT’)

• Improvement of training lab

2.3 Key Deliverables

With these factors in mind, the ITU Expert, in conjunction with MPT officials, has prepared the following deliverables:

(i) Options for the Establishment of an Independent Regulator [Section 3]

Given that regulator independence is generally viewed as central to regulatory reform, the MPT has requested a review of best practice with respect to the establishment and structure of an independent regulatory body. Attachment 1 includes options for the future establishment of an independent regulator with powers provided explicitly through legislation or via delegation.

(ii) Licensing Framework [Section 4]

The licensing framework is one of the key elements of the IRR and arguably the most complex. Therefore there is a need to establish licensing provisions based on sound principles, informed by regulatory best practice from regional exemplar markets. Recommendations are provided as part of this report on effective licensing arrangements that allow for investment in network infrastructure and services by operators and are conducive to sector growth.

(iii) Draft Implementing Rules and Regulations for the Telecommunications Law and accompanying explanatory memorandums [APPENDICES A to I]

The draft IRR have been designed to give effect to the Law on Telecommunications by providing detailed rules and regulations in accordance with the Law’s provisions. This is the major aspect of the project. The draft IRR will be submitted to the MPT for discussion and review, and then made public for the purposes of sector-wide and public consultation.

The explanatory notes for the IRR provide further guidance on the operation of the IRR along with explanations for the function and purpose of various provisions. This is designed to give key stakeholders, including the MPT, greater knowledge of the IRR for use during internal and public consultation and discussion. The draft IRR are presented as appendices to this report in the format outlined in Exhibit 7.

Exhibit 7: Outline of draft IRR presentation

Regulation

Regulation

Explanatory Memorandum

Regulation on Telecommunications Licensing

APPENDIX A.1

APPENDIX A.2

Regulation on Mobile Virtual Network Operators Service

APPENDIX B.1

APPENDIX B.2

Regulation on Telecommunications Access and Interconnection

APPENDIX C.1

APPENDIX C.2

Regulation on Telecommunications Competition

APPENDIX D.1

APPENDIX D.2

Regulation on Resolution of Disputes by Administrative Procedure

APPENDIX E.1

APPENDIX E.2

Regulation for Retail Tariffing

APPENDIX F.1

APPENDIX F.2

Regulation for Numbering Plan

APPENDIX G.1

APPENDIX G.2

Regulation for Universal Service and the Telecommunications Development Fund

APPENDIX H.1

APPENDIX H.2

Regulation for Domestic Roaming Services for the Increased Provision of Universal Services

APPENDIX I.1

APPENDIX I.2

Regulation on Law on Telecommunications Implementing Rules and Regulations

APPENDIX J

N.A

Telecommunications Licence Application Form

APPENDIX K

N.A

Improved English Version of the Telecommunications Law

APPENDIX L

N.A

(iv) Draft Improved English version of the Telecommunications Law [APPENDIX L]

The draft English version of the Law provides access for a global audience, including international investors and operators along with regional organizations and other stakeholders. The English version of the Law will seek to accurately convey the meaning and intent of the Lao language version.

3 Options for the Establishment of an Independent Regulator

3.1 Benefits of Regulator Independence

The Government of Lao PDR is considering moving responsibility for the regulation and monitoring of the telecommunications sector from the Ministry to an independent body (see Attachment 1). Regulator independence is generally considered a key element of effective sector regulation. The rationale for regulatory independence is to ensure the non-discriminatory treatment of market players and the operation of the market according to established principles.

In discussions with the Ministry, it was resolved that the issue of regulator independence is not an immediate priority. While the Ministry recognises the long-term benefits of independence, the immediate focus of policy is on the implementation of an effective legislative and regulatory framework for the sector. However, should a decision be made to transition to an independent regulator, this can be implemented gradually through a multi-stage process as outlined below.

Where markets have undergone a process of liberalisation, independence has been viewed as an important way of insuring that dominant operators, and especially state-owned or former state-owned entities, are not provided with any undue advantage over their competitors. The idea of independence encompasses a number of aspects, including:

• Political independence: The regulator must be independent of the government and be allowed a certain degree of autonomy in the development and enforcement of regulations;

• Financial independence: The regulator must have a guaranteed source of financing from the government that allows it to carry out its mandate effectively; and

• Human resource independence: The regulator must have control over the management of staff and the ability to recruit staff from a diverse range of sources.

Generally, independence is considered a safeguard against regulations that may benefit certain operators at the expense of good regulatory outcomes that are in the sector’s and the country’s long-term interest. At the same time, the government needs to maintain some control over the direction of regulation, and there must necessarily be some degree of interaction and collaboration between the ministry and the regulator. Independence therefore involves checks and balances between the regulator and the government, with different markets adopting varying degrees of regulatory autonomy.

3.2 Degrees of regulator autonomy

In terms of regulator autonomy, there are four broad models that have been adopted by various countries globally (as outlined in Attachment 1). There are:

• Fully autonomous agency: The regulator is fully independent from the government and may exercise full discretion over those aspects that fall within its mandate;

• Semi-autonomous agency: The regulator has some discretion over certain aspects, but some aspects may ultimately be subject to ministerial approval, or the minister may reserve the right to intervene;

• Separate body within the ministry: The body may have specialised knowledge and expertise in dealing with the sector, but is in essence controlled by the ministry; and

• No special body: Sector regulation is undertaken primarily by a competition and consumer authority and the courts.

There is no one-size-fits-all approach to establishing the right mix of regulator and ministerial powers. Checks and balances are required to ensure both the ministry and the regulator remain accountable. An example might be in the case of licensing, whereby the Minister has the power to award licenses, but may only do so from a short-list prepared by the regulator containing operators meeting the technical and financial requirements under the law.1

The MPT may decide that a gradual transition to a fully independent regulator could be achieved by moving through stages of regulator autonomy. For example the MPT could begin by forming a separate body within the Ministry and then transitioning to a semi-autonomous body with certain powers. This would also assist in the smooth transition of staff and other resources. The MPT could then establish a fully independent body with a clear mandate for the management and supervision of the sector.

3.3 Market confidence in the regulator

Independence is a key factor in shaping the market’s confidence in the regulator. Confidence is essential in order to facilitate investment and development in the sector, and the regulator must have the ability to consult widely with stakeholders. Three factors closely related to independence are competence, objectivity and transparency. These may be broadly defined as follows:

• Competence: The regulator must have the necessary skills, experience and knowledge in place to deal with the challenges posed by the sector.

• Objectivity: The regulator must be impartial and must maintain an analytical focus, with regulation based on a thorough and objective analysis of the market.

• Transparency: The process for making regulatory decisions, including, for instance, licensing requirements for operators and the allocation of universal service funding must be made clear to all stakeholders.

The regulator and the government must ensure that regulatory risks are mitigated as much as is practically possible. The regulatory framework must therefore be complemented by a robust legislative framework and a clear policy direction, which requires the regulator and the Government to work together. Although it is difficult to determine which regulatory issue has the biggest impact on market confidence, the regulatory environment has been shown to have a significant effect on investment in the sector.2

Where there is a lack of transparency, or where the market suspects the regulator is not acting in an objective or consistent manner, market players lose confidence in the current regulatory regime, as well as the regulator’s forward guidance on potential changes to the rules. This can lead to a reduction in investment if sector stakeholders consider the value of and/or the return from their planned investments is at risk or likely to be diminished.

1 www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2000/11/17/000094946_00110406110171/Rendered/PDF/multi_page.pdf

2 www.itu.int/ITU-D/treg/Events/Seminars/GSR/GSR09/doc/GSR09_Regulation-Investment_Dorward.pdf

4 Licensing Framework

4.1 Purpose of a Licensing Framework

The goal of telecommunications licensing is to ensure regulatory certainty, to provide regulators with a means of managing and monitoring the telecommunications market, and to provide a framework for enhancing competition through the introduction of new entrants. Licensing categories may be technology or service based, may involve general classifications such as facilities-based or service-based activities, or may involve a single or unified classification.

The licensing process controls both a licensee’s entry into a market as well as the behaviour of the licensee operating within that market. The introduction of an effective licensing framework is a key step in the overall restructuring of telecommunications regulation and can have a significant impact on the efficient supply of telecommunications services.

2006

2007

2008

2009

Fixed

97,896

60,174

800,000

1,174,464

Public phone

0

0

0

0

Post-paid (GSM)

15,167,991

16,597,846

35,565,181

24,170,937

Pre-paid (GSM)

0

0

14,613,864

19,420,995

WiMAX (broadband)

0

0

486,795

0

Internet

255,908

150,000

1,210,555

3,204,000

Fixed wireless (CDMA)

17,760

0

758,928

50,000

Transmission

4,004,209

2,123,706

11,872,428

11,902,171

Miscellaneous

3,177,000

32,742,000

17,130,000

63,196,011

Total investment

22,720,764

51,673,726

82,437,751

123,118,578

An effective licensing framework provides flexibility and certainty for operators as well as recognising the rapid pace of change in the ICT sector and the converging nature of ICT services. Licences may cover various categories by service or function, or they may be closer to a fully converged and unified licence model. The structure of licensing may be determined by the shape of the market as well as by the availability and development of ICT technology. In the case of Lao PDR, a licensing framework based on broad service definitions is considered an effective way of licensing service providers in the telecommunications sector. These service definitions have been implemented in accordance with regulatory best practice within the ASEAN and broader Asian regions, such as Malaysia (see Attachment 2).

2006

2007

2008

2009

Fixed

97,896

60,174

800,000

1,174,464

Public phone

0

0

0

0

Post-paid (GSM)

15,167,991

16,597,846

35,565,181

24,170,937

Pre-paid (GSM)

0

0

14,613,864

19,420,995

WiMAX (broadband)

0

0

486,795

0

Internet

255,908

150,000

1,210,555

3,204,000

Fixed wireless (CDMA)

17,760

0

758,928

50,000

Transmission

4,004,209

2,123,706

11,872,428

11,902,171

Miscellaneous

3,177,000

32,742,000

17,130,000

63,196,011

Total investment

22,720,764

51,673,726

82,437,751

123,118,578

4.2 Licence Structure in Lao PDR

The Law on Telecommunications requires that any domestic or foreign entity carrying out a telecommunications service as specified in the Law must hold a valid telecommunication licence. The licensing framework consists of four licence types, as provided in Article 22 of the Law and further specified in Article 4 of the Regulation.

2006

2007

2008

2009

Fixed

97,896

60,174

800,000

1,174,464

Public phone

0

0

0

0

Post-paid (GSM)

15,167,991

16,597,846

35,565,181

24,170,937

Pre-paid (GSM)

0

0

14,613,864

19,420,995

WiMAX (broadband)

0

0

486,795

0

Internet

255,908

150,000

1,210,555

3,204,000

Fixed wireless (CDMA)

17,760

0

758,928

50,000

Transmission

4,004,209

2,123,706

11,872,428

11,902,171

Miscellaneous

3,177,000

32,742,000

17,130,000

63,196,011

Total investment

22,720,764

51,673,726

82,437,751

123,118,578

Each licence type is issued for a particular service or category of service that may be undertaken by the licensee. The Ministry of Post and Telecommunication (‘MPT’) has the power to determine which services shall be required to be licensed. The Law specifies four types of licences:

• Type I: Telecommunication networks and service providers;

• Type II: Telecommunication service providers without having their own networks, Internet service providers, Internet domain name registrars, Internet access providers and value-added services;

• Type III: Consulting services, installation, repair services; export, import, manufacturing and distribution of telecommunication equipment; and

• Type IV: Privat e telecommunication networks.

The Regulation provides two further categories for the Type II licence, which separates telecommunication service providers without their own network, and providers of other services listed under Type II.

It is important that licence durations be appropriately determined in order to provide licensed operators with a sufficient degree of certainty for investment in network expansion and services. For network providers, there is a need for a longer licence term to facilitate investment in physical network assets. Article 23 of the Law provides licence durations for each licence type.

Article 24 of the Law sets out those services that are licensed by the MPT and those that are licensed by the Provincial Ministry of Post and Telecommunication (‘PPT’). Exhibit 8 below provides a summary of the MPT’s four licence types. Type I, Type II (A) and Type IV licences are issued by the MPT and relate to telecommunication services, including private networks. Type II (B) and Type III licenses are issued by the PPT and relate to services other than telecommunication network services.

Exhibit 8: Licence types, issuing authority and licence duration

4.3 Unified Licensing

The key objectives of unified licensing include, inter alia, regulatory flexibility to address technological and market developments, simplification of licensing procedures, ease of administration, encouragement of service innovation and growth of new applications, efficient utilisation of network resources and encouragement competition, include ease of entry for potential new operators.

The adoption of unified or multi-service licences has been undertaken in a number of key markets, including, India and Hong Kong. There are a range of circumstances that will affect the decision on whether to adopt a unified or multi-service licensing framework, with major considerations being the degree of competition and the ability to prevent anti-competitive behaviour, as well as the existing degree of convergence in the communications and information technology sector.

While there are a number of different categories that could be applied for a multi-service licence, which each category potentially including a broad range of services, licences should be technology neutral.

In the case of Lao PDR, unified licensing should be considered for each of the four licence types. The implementation of unified licensing may require careful planning and a comprehensive assessment of a range of issues. In particular, this will require:

• Analysis of telecommunications law and regulations to identify regulatory scope for implementation of unified licensing;

• Consideration of the appropriate degree of regulatory intervention required (i.e. individual license or class licence) based on the structure of the market;

• Determination of which licensing process is more appropriate (i.e. unified or multi-service) for each licence type, based on the structure of services provided;

• Consideration of transition/migration process and the terms for transition, e.g. whether there is mandatory or voluntary migration, and the period of time over which transition will take place; and

• Licence mapping on how existing licences will fit into the new unified licensing categories.

Article 22 of the Law provides for the four licence types required for establishment of a telecommunications business operation, with further specification provided in Article 4 of the draft Regulation. Article 4(2) of the draft Regulation states that the Ministry shall specify which of type of telecommunications network, service or activity is required to be licensed. The Ministry may therefore establish unified forms of licensing under each licence type should this be desired.

For example, the MPT could issue unified Type I licences that include a range of facilities, including cellular towers and masts, ducts, earth stations, cables, transmitters and other network infrastructure. A unified approach will remove the need for providers of both services to apply for separate licenses, and allow greater flexibility for providers to expand their existing services.

A unified licensing regime provides a simplified licensing procedure, allowing service providers to use any technology, ensuring greater flexibility and an efficient use of resources. In addition, a unified licensing framework removes arbitrary and artificial distinctions between different services, promotes sector competition and facilitates sector convergence. The benefits of unified licensing include:

• A simplified licensing structure which reduces the regulatory burden;

• Allows greater flexibility for operators;

• Is technology neutral, allowing operators to adopt best-use technologies that maximize economic value;

• Facilitates greater competition, both through greater ease of market entry and through the introduction of new technology;

• Reduces legal disputes on scope of license and breach of licence conditions;

• Allows operators to take advantage of an evolving market, which is often characterized by rapid technological or market developments; and

• Allows for customisation based on country’s unique circumstances.

A similar unified approach could be adopted for Lao’s four licence types to provide flexibility to licensees. This approach could be structured in a similar way to other unified licensing frameworks. Type I licences, for example, could include the all infrastructure and assets necessary for the provision of public telecommunications services; Type II licences could include all services associated with public telecommunications networks; Type III licences could include certain ancillary services related to the provision of telecommunications networks and services; and Type IV licences could include all limited purpose, private networks and services.

Examples of the possible facilities and services that could be included under each licence type are given in Exhibit 9 below. These should be decided by the Ministry and provided for in the Regulation.

Exhibit 9: Possible facilities and services for each licence type

Category

Facilities and services including within Type

Type I

Telecommunication networks and service providers

• Earth stations;

• Fixed links and cables;

• Radiocommunications transmitters and links;

• Satellite control station;

• Satellite hubs;

• Space station;

• Submarine cable landing centre;

• Towers, poles, ducts and pits used in conjunction with other network facilities;

• Public payphone facilities and services;

• Bandwidth services;

• Broadcasting distribution services;

• Cellular mobile services;

• Access applications services;

• Space services;

• Switching services;

• Gateway services.

Type II (A)

Telecommunication service providers without having their own networks

• Bandwidth services;

• Broadcasting distribution services;

• Cellular mobile services;

• Access applications services;

• Switching services;

• Gateway services;

• MVNOs.

Type II (B)

Internet service providers, Internet domain name registrars, Internet access providers and value-added services

• Internet service providers,

• Internet domain name registrars;

• Internet access providers;

• Value added services.

Type III

Consulting services, installation, repair services; export, import, manufacturing and distribution of telecommunication equipment

• Consulting services;

• Installation and repair services;

• Import and export of telecommunications equipment;

• Manufacturing and distribution of telecommunications equipment.

Type IV

Private telecommunication networks

• Private telecommunication networks

4.4 Licensing and Universal Service

The idea of universal service is commonly expressed as the desire to provide a basic level of communications services to all households regardless of geographic location or socio-economic status. Given the extra cost involved in providing services to more remote areas of the country, it is often not commercially viable for operators to extend network infrastructure to these customers. This is particularly problematic as those who are least able to access basic ICT services are often those most likely to be disadvantaged in other ways, for example, the disabled, the poor or those living in remote or rural areas.

Universal service policy can be implemented either as a separate law or regulation, or as part of telecommunications licence conditions. Licenses may be issued with standard universal service obligations, and the Ministry may also establish special conditions for certain operators or service providers.

Extending ICT services forms an important part of the government’s ICT policy. Substantial progress has been made in improving network coverage and making ICT services more affordable for Laotians. Article 27(3) states that operators have a responsibility to “secure the availability of universal services with good quality, convenience, timeliness and equality of access”. However, achieving full or close-to-full coverage for the Lao market will require an innovative universal service policy.

This could involve a form of mandated universal service obligation, however the Ministry may, in consultation with major operators, assign exclusive universal service areas for each operator, with other operators given the opportunity to roam over that particular network. The objective is to ensure that each operator has an incentive to extend network coverage and services to certain areas. This would require Type I licenses to specify those areas in which the licensee has exclusive rights to provide facilities, and those areas where it may not provide facilities.

The MPT must ensure that such a policy is focused on improving universal service and does not provide any unfair advantage to any operator. The MPT may require a rollout plan from the universal service provider prior to approving universal service areas, which the operator may be obligated to adhere to.

5 Conclusions

This report provides assistance for Lao PDR to put in place the necessary regulatory provisions to give effect to the Law on Telecommunications 2011 and to meet its sector development goals. The development of the Implementing Rules and Regulations has been done in accordance with regulatory best practice within the ASEAN and broader Asian region, with due consideration given to the specific needs and requirements of Lao PDR. This will produce a regulatory framework conducive to growth within the sector, enhance competition between network operators, and improve the range and affordability of services within Lao PDR’s telecommunications market.

It addresses the stated requirements of Lao PDR by providing analysis and recommendations for:

• A clear, concise and unified licensing framework;

• Interconnection regulations;

• Protection and promotion of competition; and

• A set of broader regulations to promote the growth and development of the telecommunications sector of Lao PDR.

Combined with the soon to be promulgated Decree on Radio Frequency Management which was the focus of ITU assistance in 2012, Lao PDR should have a comprehensive regulatory framework which ought to add industry certainty. The draft regulations have been drafted in a manner consistent with the Law on Telecommunications, the future Decree of Radio Frequency Spectrum and with other Regulations.

It is hoped that the Implementing Rules and Regulations will provide a basis for the continued development of telecommunications within Lao PDR and the attendant benefits this will bring to all Lao PDR’s citizens.

Attachment 1: Best Practice for Regulator Independence and Organisational Structure

The Government of Lao PDR is currently considering the possibility of establishing an independent regulatory body for sector oversight and the enforcement of the Law on Telecommunications and corresponding Implementing Rules and Regulations (IRR). While the Law of Telecommunications 2011, proposed draft Decree of Radio Frequency Management and draft IRR do not currently provide for regulator independence, it is important to consider best practice for the structure and organisation of a potential independent regulatory body, as well as possible transition mechanisms. This will provide the Ministry and other stakeholders with a platform for further discussion and consultation on this issue.

As discussed in the report, a transition to a fully independent regulator could involve the establishment of an entirely new body, or the evolution of the relevant authorities within the Lao PDR Ministry of Post and Telecommunication (“MPT”) to a standalone regulator. While this is not something that can be done overnight or indeed ought be done in haste, it should nevertheless remain a long-term objective. There are a number of steps that should be taken to ensure that the process is done well and the necessary skill sets are nurtured.

This attachment examines a number of different regulator structures from regional exemplar markets in the Asian and Asia Pacific region. This examination is designed to provide a comparison of different structures for the purpose of establishing an independent regulator based on common or best practice. While such an examination is informative, the structure of an independent regulator in Lao PDR will also be based on the market’s unique regulatory requirements.

1.1 Responsibilities of the Independent Regulator

The independent regulator is responsible for managing inter alia spectrum resources, enforcing aspects of the relevant telecommunications legislation and allocating spectrum and licences in an independent manner. The regulator also has a number of other responsibilities, including the transmission of information to the government and the public, and monitoring of the telecommunications market.

The regulator operates within the legislative framework established by the government, and upholds the Telecommunication Principles set out in the Law of Telecommunications 2011. The key areas of responsibility for the regulator (currently the MPT in accordance with Article 44 of the Telecommunications Law) are set out below in Exhibit 1.1.

Exhibit 1.1: Responsibilities of a fully independent regulator

Issue

Comments

Spectrum management

The overall role of the regulator is to ensure an efficient use of spectrum resources that maximises the benefits for the people of Lao PDR. The regulator is responsible for the management, allocation and assignment of frequencies in the radio spectrum, and has the power to make or amend rules for this purpose within the legislative framework.

Licensing and fees

The Law on Telecommunications governs licensing for domestic and foreign operators. The law requires persons or organisations to hold a licence in order to operate a network or provide a telecommunications service. The regulator is responsible for issuing spectrum licences as well as licences for service providers under the pricing regime established by the legislation.

The regulator also collects fees and service charges from individuals and organizations applying for a telecommunications business licence, use of telecommunication resources and use of infrastructure.

Numbering

The regulator is responsible for maintaining the numbering system, including telephone numbers, Internet numbers and Internet domain names, as well as registering individuals and organizations.

Technical standards

The regulator is responsible for enforcing technical standards for telecommunications equipment. Standards are determined based on the need to protect the safety of users, minimise environmental damage, avoid dangerous interference with essential network services and ensure compatibility with telecommunications networks in Lao PDR.

Competition

The regulator is responsible for enforcing the competition provisions of the legislation, which includes collusion among service providers, anti-competitive conduct and misuse of market share. This responsibility is typically performed in conjunction with the competition regulator.

Spectrum requirements

The regulator has responsibility for monitoring trends in the telecommunications sector, including data traffic and technological development, to ensure that current spectrum arrangements are appropriate and provide adequate capacity for growth in the sector.

Access and interconnection

The regulator is responsible for enforcing the equal access and non-discrimination provisions of the legislation. Network operators have an obligation to allow access on equal terms to avoid expensive duplication of infrastructure. Service providers have the right to request interconnection in accordance with technical requirements.

In a more typical institutional arrangement, the Ministry, as distinct from the industry regulator) will generally have an overriding responsibility for telecommunications policy at a national level. The Ministry will have various responsibilities conferred on it by the legislature. In many cases the Ministry will defer certain parts of its authority to a secondary body, which may also be given a range of other responsibilities. Legislation should be designed to ensure that any division of responsibility between different regulatory bodies avoids both gaps as well as overlaps in responsibility.

While separate regulators may share some common responsibilities (e.g. separate telecommunications and competition authorities may share a broad responsibility for ensuring competitive outcomes in the telecommunications sector), there should be clear direction as to which authority performs which actions under given circumstances. Clear separation of responsibilities between various regulatory bodies is also key to effective cooperation between responsible authorities. The growing involvement of competition authorities is an important institutional trend resulting from sector liberalisation.

As competition between operators has grown, competition authorities have generally taken on greater responsibility for the monitoring of firm behaviour and the level of competition in the market. This creates a jurisdictional issue for regulators as well as operators who rely on consistent and objective regulation. Similarly, the clear separation of responsibilities between different groups within the regulator is important to ensure the smooth operation of regulatory activity and the consistent application of the law and other rules and regulations.

1.2 Effective Organisational Structures for Regulators

To create a successful regulatory authority, certain key components must be considered and implemented. One of the critical elements is the regulator’s institutional design, as well as its relationship with the government, industry, and the public. The institutional design of the regulator will affect the structure of the regulator, including its leadership, management organization, its organizational and administrative structures. Additionally, the successful management of a regulator and the effective exercise of its functions will be affected by the administrative structure of the regulator, such as its staffing process and size.

1.2.1 Organisational structure based on regulator’s responsibilities

Different countries will have different organisational structures in place based on their own administrative practices and policy requirements. While there is no universal structure that will be suited to every market, generally organisational units will reflect key areas of responsibility, which are shared across countries. The question from an organisational point of view is how best to structure the various units within the regulator to provide a clear separation of responsibilities while maintaining efficiency and reducing the duplication of certain operational functions (see Exhibit 1.2).

Exhibit 1.2: Three dimensions of organisational responsibility

Regulatory function

Operational function

Technology/service

• Licensing of telecommunications services

• Spectrum management

• Technical standards, quality of service and cross-border coordination

• Access and interconnection

• Retail tariff and price regulation

• Content regulation and consumer protection

• Competition

• Universal service regulation

• Strategy and planning

• Resource management, personnel and training

• Finance, budget, reporting and auditing

• Legal affairs

• Corporate affairs and communication

• Market analysis, statistics and monitoring

• Enforcement and compliance

• Broadcast services

• Fixed telecommunication services

• Mobile and wireless services

• Satellite services

• Internet and data services

In practice, regulatory responsibility is structured according to some mixture of the above categories. For example, there may be a separate broadcasting unit within the regulator that is responsible for the licensing of broadcasters as well as content regulation, competition and other regulatory aspects related to that particular service. Alternatively the regulator may be more converged and apply content regulation across all technologies and platforms through a separate content and consumer affairs unit.

For example, the National Communications Commission (‘NCC’) in Taiwan has a separate Television and Radio Administration Department, which is responsible for the licensing and monitoring of broadcast services, as well as a Department of Content Affairs which is responsible for content regulation. Exhibit 1.3 below shows a model organisational chart provided by the International Telecommunication Union (‘ITU’). It shows the basic organisational structure for spectrum management based on the key responsibilities mentioned above.

Exhibit 1.3: ITU model organisational structure

Source: www.ictregulationtoolkit.org/en/Section.1309.html

There are varying degrees of regulator autonomy that will have an impact on organisational structure. The Lao PDR Government, in moving towards an independent regulator, could also consider transitional mechanisms that gradually introduce regulatory autonomy over time. Examples of regulators with different degrees of autonomy are summarised in Exhibit 1.4 below.

Exhibit 1.4: Degrees of regulator autonomy

Degree of regulator independence

Description

Examples

Fully autonomous

The regulator is fully independent from the government and may exercise full discretion over those aspects that fall within its mandate.

Australia, Malaysia, Republic of Korea, Singapore

Semi-autonomous

The regulator has some discretion over certain aspects, but some aspects may ultimately be subject to ministerial approval, or the minister may reserve the right to intervene.

Indonesia

Separate body within ministry

The body may have specialised knowledge and expertise in dealing with the sector, but is in essence controlled by the ministry.

Japan, Vietnam, Myanmar (moving towards independence by 2015)

No special body

Sector regulation is undertaken primarily by a competition and consumer authority and the courts.

New Zealand

1.2.2 Regulator independence and market confidence

Countries across the region that have implemented reforms in telecommunications have taken steps to restructure (and often privatise) the incumbent operators, introduce competition in some market segments, and update their regulatory frameworks. However, there are a number of issues that can result in either an inadequate degree of regulatory power or the misuse of power. This can have an effect on the regulator’s reputation and credibility, with further ramifications for trust and confidence in the market. These issues include:

• A lack of adequate autonomy and a clear mandate to make and enforce key decisions, free of political interference and influence. For example, where the regulatory agency is embedded inside the Ministry it may lack a clear mandate to achieve certain objectives;

• The strong government representation on the boards of the regulatory agencies in some countries increases the chances of political interference or government representation on the boards of the licensed operators;

• Scarcity of professional and financial resources and limited tenure security for commissioners. In some cases regulators may face high turnover of key staff due to poor compensation and job security, and regulators typically have limited control over their funding and spending;

• Limited capacity to actively regulate (rather than administer) the sector and to enforce decisions. Most regulators have yet to master all the regulatory levers, such as industry structure, licensing, pricing, and universal service obligations. In some markets, an inability to build a strong, proactive regulatory authority has meant that issues tent to drag on unresolved;

• Overcoming strong historic ties to the incumbent operator, especially in relation to technical matters and market reform; and

• Marginal adoption of transparent regulatory processes and consultation that can help increase public support and enhance investor confidence.

1.2.3 Leadership organisation

Determining the best organisational structure for a regulatory authority requires an assessment of various factors, including the country’s needs and objectives, political environment, legal requirements, and available expertise in the labour market.

There are essentially two models of leadership organization for regulatory authorities. These include the collegial body (a board or commission composed of multiple members), and the single regulator (often given the title of chairperson or president). Each has its advantages and disadvantages, and variations of each model are in use around the world.

The collegial body model usually involves a board or commission made up of individuals with different areas of expertise, potentially bringing those varied perspectives to bear on each regulatory issue. These multi-member commissions or boards of directors are composed of a varying number of members (usually an odd number from three to seven to minimize tie votes) that oversee and direct all activities of the regulator. One member is the chairperson or president of the commission/board and sometimes has a “casting” or deliberative vote that counts twice and acts as a tie-breaking vote, if necessary.

A collegial body may be able to be more independent, as it is less likely that all members would be influenced in the same way by the same actors, whether in the government or the private sector. Collegial bodies also often impart a sense of legitimacy in decision-making, as it is less likely that a single individual was responsible for any particular decision. However, as in any decision-making process involving more than one actor, the development of regulatory decisions can be a slower process and more subject to internal struggle (eg for example, in Thailand and Indonesia).

By comparison, the single individual regulator model has the potential benefit of a consistent approach to regulation and decision-making, as decision-making authority is vested in a single individual who may have a unified plan for the telecommunications sector. In contrast to the collegial body model, single regulators can make decisions much more quickly, even when constrained by due process regulations.

However, the single regulator is also potentially more vulnerable to undue influence exerted by external actors, whether in the government or in the private sector. In addition, a single individual may not be able to match the expertise of a collegial body made up of individuals from different backgrounds, although experienced staff can provide substantial expertise.

1.2.4 Staffing and agency resourcing

The government must ensure that the regulator has the resources to carry out its responsibilities and meet its required outcomes. This includes office space, furnishings, equipment, IT capability, human resource management and support services, as well as staff remuneration. The regulator should provide the government with information regarding its operational requirements, and the government in turn should ensure proper monitoring is in place to reduce waste and inefficiency.

Many factors affect the staffing design of a regulatory authority. Principally among these are market conditions, established objectives and goals, scope of the regulator’s responsibility, selected management structure, distribution of responsibilities/duties within the regulator, and available resources. In general, telecommunications regulators are composed of a diverse group of professionals that include: attorneys, economists, engineers, market analysts, accountants, and administrative support personnel. In addition, depending on the needs and resources of the regulatory authority, some have provisions that allow them to hire consultants on an “as needed” basis.

In most cases, the head of the regulatory authority is empowered by the applicable law or regulation to hire appropriate staff as deemed necessary to conduct the business of the regulatory authority provided such appointments are made within the confines of the regulator’s budget. The hiring of staff for the regulatory authority also is usually subject to national civil service or public employment laws or regulations.

Exhibit 1.5 below shows staff sizes for various selected regulators in the Asian and Asia Pacific region. Staff sizes will reflect the size and sophistication of the market, as well as the scope of the regulator’s responsibilities (i.e. whether it is a single-sector or multi-sector regulator).

Exhibit 1.5: Staff size of regulators in selected Asian and Asia Pacific countries

Country

Total number of staff

Total number of professional staff

Year created

GDP (USD billions)

Population (millions)

Comments

Australia

618

323

2005

1542.055

22.683

Single-sector regulator. Responsible for spectrum, USF.

Bangladesh

223

100

118.693

150.039

Single sector regulator. Responsible for spectrum, broadcasting (with other ministry).

Hong Kong

390

221

2012

257.953

7.173

Converged regulator. Responsible for spectrum, broadcasting.

India

190

80

1997

1239.261

1223.170

Converged regulator. Responsible for spectrum broadcasting.

Malaysia

500

80

1998

307.178

29.038

Converged regulator. Responsible for spectrum, broadcasting, USF.

New Zealand

20

n.a

2001

166.923

4.463

Multi-sector regulator.

Philippines

456

1979

240.664

97.737

Single-sector regulator. Responsible for spectrum, USF (with other ministry).

Singapore

88

74

1992

267.941

5.366

Single-sector regulator. Responsible for spectrum, USF.

Sri Lanka

185

34

1991

59.773

20.681

Single-sector regulator. Responsible for spectrum, USF.

Thailand

941

2004

376.989

64.460

Converged regulator. Responsible for spectrum, broadcasting, USF.

Source: ITU World Telecommunications Regulatory Database (2012).

1.3 Model Organisational Structures from Regional Countries

This section provides examples of the structure of spectrum management units within selected regulators from the East Asian and Asia Pacific regions. The following case studies are designed to provide a basis for best practice organisational structure for Lao PDR, bearing in mind that an appropriate structure must take into account the country’s own regulatory requirements as well as the overall state of the telecommunications market.

Case Study A: Infocomm Development Authority (Singapore)

The Infocomm Development Authority (‘IDA’) of Singapore was created in 1999 with a merger between Singapore’s National Computer Board and the Telecommunications Authority of Singapore. This was done because of growing convergence between information technology and telephony and the recognition that separate regulators could not adequately cater for this.

The IDA’s structure consists of two major ‘wings’, two minor groups and an overseeing CEO’s Office that manages those other four. The two major wings are the Competition and Enabling Infrastructure Wing and the Government Chief Information Office Wing. The two minor groups are the Corporate Services Group and the Industry Development Group. Each of the four departments has various sub-departments or clusters that deal with more specific areas of responsibility. These are shown below in Exhibit 1.6:

Exhibit 1.6: IDA organisational structure

In addition to its main departments the IDA has four wholly-owned subsidiaries:

• IDA International: An international arm of IDA whose aim is to provide support to international governments who wish to implement policies similar to those implemented by IDA.

• Infocomm Investments Pte Ltd: A subsidiary whose aim is to use its equity investments to support IDA in achieving its goals.

• Singapore Network Information Centre: A subsidiary whose main role is to administer the internet domain name space in Singapore.

• Assurity Trusted Solutions Pte Ltd: Is a wholly-owned subsidiary who acts as the National Authentication Framework operator for 2nd Factor Authentication set up to offer NAF 2FA Services to Service Providers (‘SP’s) and consumers at a national level.

The IDA is responsible for maintaining Singapore’s Frequency Allocation Chart, its Radio Spectrum Master Plan and for allocating and regulating all radio frequencies within Singapore. IDA publishes several guides and policy frameworks on its website relating to spectrum management and spectrum utilization.

Case Study B: Australian Communications and Media Authority (Australia)

The Australian Communications and Media Authority was created in 2005 with a merger between the Australian Communications Authority and the Australian Broadcasting Authority. The ACMA’s day-to-day activities are managed by an executive team comprised of the Chair, the Deputy Chair, the Full-Time Member, five General Managers and 16 Executive Managers. The General Managers are responsible for five broad areas:

• Communications Infrastructure;

• Digital Economy;

• Content, Consumer and Citizen;

• Corporate Services and Coordination; and

• Legal Services.

The areas are further divided into branches and sections with specific business functions, as outlined in Exhibit 1.7 below.

The ACMA is responsible for all aspects of Spectrum Management within Australia, including spectrum allocation, licensing, and all forms of regulation. Its stated aims are to promote self-regulation by industry participants but to protect consumers and other users where necessary. It should be noted the Australian Competition and Consumer Commission (‘ACCC’) is responsible for competition related regulatory issues.

Exhibit 1.7: ACMA organisational structure

Case Study C: National Communications Commission (Taiwan)

In Taiwan, the Ministry of Transportation and Communication (‘MOTC’) is responsible for the overall planning of communications resources, assisting and promoting the communications industry, and fostering universal access to communications technology. The organisation is comprised of the Minister, along with a Political Deputy Minister and two Administrative Deputy Ministers. Within the Ministry the Department of Posts and Telecommunications has specific responsibility for telecommunications. The National Communications Commission (‘NCC’) was established in 2006 and since then responsibilities for telecommunications policy and regulation have been divided between the Ministry and the Commission. The NCC is responsible for regulating telecommunications and broadcasting services. Prior to the establishment of the NCC, this authority was vested with the Directorate General of Telecommunication and the Department of Broadcasting Affairs of the Government Information Office (see Exhibit 1.8).

Exhibit 1.8: NCC organisational structure

Case Study D: Malaysian Communications and Multimedia Commission (Malaysia)

The Malaysian Communications and Multimedia Commission (‘MCMC’) was created in 1998 as the authority responsible for the new licensing framework created by the Communications and Multimedia Act of 1998. This act replaced the Telecommunications Act (1950) and the Broadcasting Act (1988). In 2001 the SKMM also took over responsibility for the regulatory functions set out in the Postal Services Act (1991) and the Digital Signature Act (1997). As a result of this creation process it is a completely convergent regulator with responsibility for all areas of Malaysia’s digital regulation.

The MCMC follows a similar organisational structure to the regulators already listed. It has four main departments: The Chairman’s Office; Service and Support; Regulatory and Supervisory; and Planning and Development. Each of these departments has numerous sub-groups with more specific areas of focus. The organisational structure of the SKMM is the least complex of any of the regulators in these case studies. It has condensed the same functions as other regulators into just four broad categories, as shown in Exhibit 1.9.

The MCMC’s role is to implement the policies of the Malaysian Government as they apply to the telecommunications and multimedia sector. Within this role they are responsible for spectrum licensing, spectrum allocation, maintenance of broadcasting technical standards and also tasked with preventing anti-competitive behaviour within the sector. They are also responsible for maintaining Malaysia’s National Frequency Allocation Table and to ensure the best use of spectrum and number resources within Malaysia.

Exhibit 1.9: MCMC organisational structure

Case Study E: Korean Communications Commission (Republic of Korea)

The Korean Communications Commission was formed in 2008 with the merging of the Ministry of Information and Communications and the Korean Broadcasting Commission. The KCC merged telecommunications, spectrum allocation and broadcasting, including content, under a single regulatory authority. This was significantly in response to continued disputes between the MIC and the KBC over who had jurisdiction over converged technologies such as IPTV.

IPTV had been delayed in Korea by several years because of these disputes, however by the end of 2009 Korea had over 1 Million IPTV subscribers as the result of the merged regulatory body. The KCC’s organizational structure is similar to both the IDA and the ACMA, however it is significantly more complicated, with two additional senior management positions, six major divisions and three additional minor divisions. The KCC’s general structure is shown in Exhibit 1.10 below.

The KCC is the chief regulatory body for telecommunications within Korea, such as spectrum licensing, spectrum allocation and spectrum planning all fall within its area of responsibility.

Exhibit 1.10: KCC organisational structure

Attachment 2: Malaysia’s Licensing Regime

The exhibit below provides a summary of the facilities and services included under each licence category as set out in the Communications and Multimedia (Licensing) Regulations 2000.1

Exhibit 2.1: Facilities and services under Malaysia’s unified licence categories

Individual licence

Class licence

Network facilities provider

• Earth stations;

• Fixed links and cables;

• Radiocommunications transmitters and links;

• Satellite control station;

• Satellite hubs;

• Space station;

• Submarine cable landing centre;

• Towers, poles, ducts and pits used in conjunction with other network facilities;

• Other network facilities not exempt under the Act or not subject to a class licence.

• Niche or limited purpose network facilities;

• Other network facilities not exempt under the Act or not subject to an individual licence.

Guidelines:

• Minister may issue guidelines to clarify the meaning of niche or limited purpose network facilities.

Network service provider

• Bandwidth services;

• Broadcasting distribution services;

• Cellular mobile services;

• Access applications services;

• Space services;

• Switching services;

• Gateway services;

• Other network services not exempt under the Act or not subject to a class licence.

• Niche customer access;

• Niche connection service;

• Other network services not exempt under the Act or not subject to an individual licence.

Guidelines:

• Minister may issue guidelines to clarify the meaning of niche customer access and niche customer service.

Applications service provider

n.a.

• PSTN telephony;

• Public cellular services;

• IP telephony;

• Public payphone services;

• Public switched data services;

• Audio text hosting services provided on an opt-in basis;

• Directory services;

• Internet access services;

• Messaging services;

• Other applications services not exempt under the Act.

Content applications service provider

• Satellite broadcasting;

• Subscription broadcasting;

• Terrestrial free to air TV;

• Other content applications services not exempt under the Act or not subject to a class licence.

Special conditions:

• Licensee shall provide local content programmes and those that promote Malaysian culture and national identity;

• Licensee shall carry public announcements for the purposes of the Government or for public or national interest.

• Content applications services limited in availability to: vehicles, vessels, railway or aircraft used for hire or reward or for any other valuable consideration; a single commercial or residential building; a restricted geographical area;

• Content applications service of limited appeal, targeted to special interest group, and available through subscription using equipment designed for receiving that service;

• Content applications service where content is remotely generated and distributed through a network service or displayed on a screen;

• Content applications service for distance learning purposes;

• Content applications service linked to a sporting, cultural or other on-off event.

1 www.skmm.gov.my/Legal/Acts/Communications-and-Multimedia-Act-1998-Reprint-200/COMMUNICATIONS-AND-MULTIMEDIA-(LICENSING)-REGULATI.aspx

Appendix A.1: Regulation on Telecommunications Licensing

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Regulation on Telecommunications Licensing 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

Article 46(2) the Law on Telecommunications (Amended)

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS FOR TELECOMMUNICATIONS LICENSING 2013

CHAPTER 1

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications (Amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Effective Date” means the date of signature of regulations by the Ministry.

“Class licence” means a licence issued pursuant to Section III of this regulation to a defined class of service providers and which applies to a person falling within the defined class without that person having to apply for the licence.

“Individual Licence” means a licence issued pursuant to Section III of this regulation to an individual person upon the application of that person.

“Licence to Land” means the point where a submarine or other underwater telecommunications cable makes landfall.

“Licensee” means a person granted a license.

“Person” means an individual or juridical person for purposes of this regulation.

“Telecommunications Service” includes but is not limited to fixed and mobile telephony, long distance and international services, public payphone services, [radio and television broadcast], VOIP, leased lines and circuits, telecommunications infrastructure services, and other value added services.

“Telecommunications Systems” means a system that is capable of use in different types of telecommunication services. Such systems consist wired or wireless systems or a combination of both wired and wireless systems.

“Private Telecommunications Network” means a network which is not available to the general public, which is operated by a single entity (or related entities) or which covers a single geographic site or series of contiguous (or near-contiguous) geographic sites and which is operated on more than a single land title.1

CHAPTER 2

OBJECTS

Regulation 2

(1) The object of this Regulation is to provide a licensing regime for the provision of telecommunications networks and services.

(2) The licensing framework established under this regulation shall be implemented in a non-discriminatory, fair and transparent manner in respect of all relevant persons and entities (whether privately or Government owned or jointly owned) having regard to objectively specified criteria.

CHAPTER 3

APPLICATION

Regulation 3

The following requirements apply:

(1) No person shall own or operate a telecommunications network, provide a telecommunications service or undertake related activity that applies under this Regulation for direct or indirect compensation without a license granted by the Ministry, unless exempted under Article 8 of this Regulation.

(2) No person shall utilize wireless telecommunications systems in the provision of a telecommunications service or operate a telecommunications network without a frequency authorisation granted by the Ministry under the relevant Decree.

(3) A person who wishes to provide a telecommunications service shall apply to the Ministry in the manner specified in Article 20 of this Regulation.

(4) The Ministry may grant or refuse any application for a license based on applicable polices and this Regulation.

(5) Where an applicant for a license is refused, the Ministry shall notify the applicant in writing, giving detailed reason(s) for the refusal.

(6) The terms of a license shall be made available to the public at the office of the Ministry and may be reproduced by the Ministry at the request of any member of the public on payment of the specified fee.

(7) The Ministry shall determine applications for all licenses on a non-discriminatory basis.

(8) Article 3(1) shall not apply for three months after the Effective Date of this Regulation to Telecommunications Service Providers who held telecommunications related licenses or authorizations before the Effective Date.

(9) Telecommunications Service Providers issued telecommunications related licenses or authorizations before the Effective Date of this Regulation shall apply for licenses under article 3 within three months after the Effective Date.

Regulation 4

(1) The Ministry may issue the following licenses, in accordance with Part V, Article 22 of the Law:

(a) Type I: telecommunications network and service provider;

(b) Type II:

(A) telecommunications service without their own networks.

(B) service provider, internet domain name registrar, internet access provider and value – added services;

(c) Type III: consulting services, installation, repair services, export, import, manufacturing and distribution of telecommunication equipment;

(d) Type IV: own or operate private telecommunication networks.

(2) The Ministry shall specify which type of and telecommunications networks, services and activities require licences in a regulation, rule, order or notice issued by the Ministry.

(3) The Terms and Conditions for the Four (4) Types of Telecommunications Licenses, that has core provisions relating to all licenses and special provisions relating to individual types of licenses, are found in Schedule 1 of this Regulation and must be complied with.

Regulation 5

(1) A license gives a person the right to carry on the activities specified therein upon compliance with the license and registration requirements specified by the Ministry.

(2) The license shall specify the telecommunications networks and/or services it authorises, a person’s eligibility for a license and the conditions of the license, including but not limited to:

(a) the scope of the licensed telecommunications networks or telecommunications services;

(b) any applicable technical and operational standards or conditions;

(c) the location in which the authorised networks are to be operated or the authorised services to be provided;

(3) Before undertaking an activity requiring a license, a person must register with the Ministry, in the manner specified in this Regulation or license application, his or her intention to undertake such activity, and submit such information in writing and pay such fee as Ministry may require.

(4) Upon receipt of the registration by a person pursuant to subsection (3) and where it considers appropriate, the Ministry may issue a declaration that such person is authorized to undertake the activity authorised by the license.

(5) A licensee must notify the Ministry of any subsequent change or inaccuracy in its registration or operations that would make it ineligible for the license.

Regulation 6

(1) Type I licensees must only operate or own those types of facilities that are authorised under the license.

(2) Type I licenses must give no less than two months notice in writing to the Ministry, informing if they wish to suspend the provision of the facilities being provided and the reasons therefore.

Regulation 7

(1) The Ministry may, consistent with this Regulation, determine –

(a) the circumstances under which the license or authorisation may be suspended, terminated or amended and relevant technical requirements; or

(b) the payment of any initial, annual, renewal or other fees payable by any licensee holder.

(2) The Ministry may specify that certain conditions may not apply to certain types or classes of operators of telecommunications networks or providers of telecommunications services.

(3) The Ministry may attach special conditions, where justified and consistent with the requirements of the Law and this Regulation, to a license.

(4) The Ministry may grant an exclusive license or a limited number of licenses where necessary.

Regulation 8

(1) The Ministry, regarding the objectives of this Regulation and the Law, may specify that certain types of providers of services may be exempted from Type II or Type III licenses.

(2) Factors that the Ministry may take into account when determining exempt categories may include, but are not limited to:

(a) the need for the licensing framework established under this regulation to be implemented in a non-discriminatory, fair and transparent manner in respect of all relevant persons and entities;

(b) the nature of the services;

(c) the size and impact of the services within the market;

(d) the burdens imposed on the service provider relative to their suggested activities.

CHAPTER 4

LICENSE FEES

Regulation 9

(1) Licensees shall pay an annual license fee to the Ministry as set by regulation.

(2) The Ministry shall issue a Regulation specifying the quantum and methods of determining, verifying and collecting license fees.

(3) The collection and payment of fees to the State budget shall comply with the Presidential Decree on Fees and Service Charges as promulgated annually in each Decree.

CHAPTER 5

LICENSE CONDITIONS

Regulation 10

(1) Every licensee shall –

(a) pay the fees specified by the Ministry;

(b) not transfer, lease or assign the license without the prior written approval of the Ministry;

(c) provide reasonable assistance to the Government and law enforcement agencies during emergencies and national disasters;

(d) shall co-operate with the government on all matters of national security;

(e) observe the conditions of its license, the regulations and the Law.

(2) A person owning or holding a significant interest in telecommunications network or telecommunications service for which a license is required shall not sell, transfer, charge or otherwise dispose of his interest in such operator or service provider, or any part of his interest, unless the prior written approval of the Ministry has been obtained.

(3) A telecommunications network operator or telecommunications service provider shall not, unless the prior written approval of the Ministry has been obtained –

(a) cause, permit or acquiesce in a sale, transfer, charge or other disposition referred to in subsection (2);

(b) issue or allot any shares or cause, permit or acquiesce in any other reorganisation of its share capital that results in:

(i) a person acquiring a significant interest (10% or greater) in such operator or service provider; or

(ii) a person who already owns or holds a significant interest in the operator or service provider, increasing or decreasing the size of his interest.

(4) The approval of the Ministry required under subsections (1)(b), (2) and (3) shall not be unreasonably withheld.

(5) Notwithstanding anything in this article, where a sale, transfer, change or other disposition referred to in subsection (2) is a result of an internal reorganization of a body corporate that does not constitute ultimate transfer of control of an operator or service provider:

(a) the prior written approval of the Ministry shall not be required; and

(b) such operator or service provider shall, as soon as reasonably practicable, notify the Ministry of the nature and extent of such sale, transfer, change or other disposition.

(6) The Ministry may, in respect of telecommunications network operator or telecommunications service provider whose shares are publicly traded on a stock exchange recognized by the Ministry, waive the obligation to obtain approval under subsection (3). Any such waiver shall be subject to a condition that the operator or service provider shall, as soon as reasonably practicable, notify the Ministry of any sale, transfer, change or other disposition referred to in subsection (2).

Regulation 11

(1) Every license shall contain conditions regarding:

(a) the terms and expiration of the license and the time required for an application for renewal;

(b) the circumstances under which the license may be amended for force majeure, national security, changes in national legislation and implementation of international obligations and where the Ministry, taking into account the public interest, otherwise deems amendment necessary to achieve the objectives of these Regulations; and

(c) such other matters as the Ministry may specify for such license.

Regulation 12

(1) Every licensee shall:

(a) in addition to compliance with any directions issued, submit to the Ministry such information with respect to the development of its network or service as may reasonably be required by the Ministry, in a regular and timely manner ;

(b) provide users, under conditions which are published or are otherwise filed with the Ministry, with access to and the opportunity to use such network or service on a fair and reasonable basis;

(c) not discriminate unduly among users, including other network and service providers, in the provision of services and transmission of all communications;

(d) not, in a manner that might lessen, or might have the effect of lessening, competition, engage in anti-competitive pricing and other related practices. In particular, a licensee shall refrain from unduly using revenues or resources, from a telecommunications network or service in respect of which the licensee is dominant, to cross-subsidise unfairly any other telecommunications network or telecommunications service, without the prior written approval of the Ministry;

(e) meet standards of quality in accordance with its license and specified in this Regulation and other technical and quality of service regulations prescribed by the Ministry;

(f) file annually with the Ministry a report on its quality of service as measured against the quality of service performance standards set by the Ministry and otherwise publish such reports as the Ministry may authorise;

(g) file annually with the Ministry a report on the number of subscribers, the locations in which services are provided, the percentage of population in service footprint, and such other information as the Ministry may reasonably require;

(h) develop, implement and publish procedures for responding to user complaints and disputes related to quality of service, statements of charges and prices and shall respond quickly and adequately to such complaints;

(i) submit to the jurisdiction of the Ministry with regard to the resolution of complaints from and disputes with other licensees, operators of telecommunications networks, providers of telecommunications services and any other users, where such disputes arise out of the licensee’s exercise of its rights and obligations under the license;

(j) file with the Ministry forms of user agreements with users for the provision of telecommunications services to the public;

(k) permit the resale of a telecommunications service by not imposing unreasonable or discriminatory conditions or limitations on such resale;

(l) provide and contribute to universal service in accordance with policies established by the Ministry; and

(m) account for costs in accordance with this Regulation and any other relevant Guidelines and Regulations.

(2) The Ministry shall, in accordance with the Law, specify

(a) quality of service standards for classes of telecommunications equipment and services; and

(b) means to enforce a licensee’s compliance with its stated quality of service standards, including measures by which a licensee shall compensate users adversely affected by a failure to provide a telecommunications service in accordance with such standards;

(c) Where an operator is a dominant operator of a network, as determined in accordance with the criteria set out in the interconnection regulations, such operator shall make available on a timely basis, as the Ministry may specify in the Guidelines and Regulations on Interconnection, to other operators of telecommunications networks or providers of telecommunications services, such technical information as the Ministry may determine regarding such network, including planned deployment of equipment, and other information relevant to such other operator’s or service provider’s network or services.

Regulation 13

(1) Every licensee shall maintain the confidentiality of, and refrain from using or disclosing, any confidential, personal and proprietary information of any user, other operator of a telecommunications network or other provider of a telecommunications service originating from:

(a) any such user, operator or service provider; or

(b) any information regarding usage of the service or information received or obtained in connection with the operation of the network or provision of the service;

for any purpose other than to:

(i) operate such network or service;

(ii) bill and collect charges;

(iii) protect the rights or property of the operator or provider; or

(iv) protect users or other operators or providers from the fraudulent use of the network or service;

(v) except as otherwise permitted by the user, other operator or other provider, as the case may be, or as required by warrant, court order or other government agency with competent authority.

(2) Nothing in subsection (1) prohibits the Ministry from authorising any telecommunications service provider to disclose lists of its subscribers, including directory access databases, for the publishing of directories or for such other purposes as the Ministry may specify.

(3) The State shall promote the confidentiality and privacy of all individuals, government bodies, legal entities and organizations while ensuring transparency and justice are adhered to. Government Telecommunications staff are prohibited from disclosing official and confidential information to any non-authorised individual, organization or entity.

CHAPTER 6

SUSPENSION, TERMINATION, AMENDMENT AND RENEWAL

Regulation 14

(1) Subject to this article, the Ministry may suspend or terminate a license where –

(a) the licensee has failed to comply materially with any of the provisions of the Law, Regulations or the terms and conditions of its license;

(b) the licensee has failed to comply materially with any lawful direction of the Ministry;

(c) the licensee is in default of payment of any fees or charges imposed pursuant to the Law or these Regulations, it owes to the Ministry or the government;

(d) the licensee is dissolved or goes into liquidation or ceases operating any public telecommunications network, providing any public telecommunications service; or

(e) the suspension or termination is necessary for reasons of:

(i) national security; or

(ii) the public interest.

(2) The Ministry shall, before exercising the power of suspension or termination conferred by this article, give the licensee adequate advance notice, which, absent exigent circumstances, shall not be less than 90 days, in writing of its intention to do so, specifying the grounds on which it proposes to suspend or terminate the license, and shall give the licensee the opportunity –

(a) to present its views;

(b) to remedy the breach of the provisions of these regulations, the regulations or the term or condition of the license; and

(c) to submit to the Ministry within such time as the Ministry may specify a written statement of objections to the suspension or termination of the license – which the Ministry shall take into account before reaching a decision on suspension or termination.

(3) The suspension or termination of a license shall take effect on the date specified by the Ministry in the notice required under subsection (2).

(4) During the period that the Ministry is considering exercising its power to suspend or terminate a license or a frequency authorisation, the licensee shall continue to operate until such time as the Ministry makes a determination and, in the event that the period of the license comes to an end before the determination by the Ministry is made, an interim renewal of the license on the same terms shall be granted.

(5) Nothing in this article precludes the Ministry from immediately suspending or terminating a license where there is, or is likely to be, a risk to national security, or where to do so is essential to the public interest.

Regulation 15

(1) A license may be amended by the written agreement of the licensee or the holder of the frequency authorisation or by the Ministry, where–

(a) force majeure, national security considerations, changes in national legislation or the implementation of international obligations require amendment; or

(b) the Ministry, taking into account the public interest, otherwise deems amendment necessary to achieve the objectives of these Regulations and the Law.

(2) Where a license is amended pursuant to subsection (1) on grounds of national security, the rights of the licensee to compensation shall not be prejudiced.

(3) Before amending a license, the Ministry shall give the licensee adequate advance notice, which, absent exigent circumstances, shall not be less than 90 days, in writing of the proposed amendment, giving reasons for the amendment and the date by which the amendment shall take effect, and shall give the licensee the opportunity:

(a) to present its views; and

(b) to submit to the Ministry within such time as the may specify a written statement of objections to the amendment of the license or the frequency authorisation, which may include proposed alternatives to the amendment –

which the Ministry shall take into account before reaching a decision on amendment.

(4) Nothing in this article precludes the Ministry causing the immediate amendment of a license where there is, or is likely to be, a risk to national security, or where immediate amendment is essential to the public interest.

(5) The licensee may request that the Ministry consent to an amendment of its license.

(6) A decision of the Ministry pursuant to this article is subject to judicial review by the Court.

Regulation 16

(1) Licensees may apply to the Ministry for the extension of the validity of their license at least six months before the expiry date of the license.

(2) The Ministry shall automatically renew licenses or frequency authorisation granted under these Regulations for a period equivalent to the first license granted unless –

(a) the licensee failed to operate within the terms of the first license;

(b) the licensee failed to comply materially with any of the provisions of the Law and these Regulations or the terms and conditions of the license;

(c) the licensee failed to comply materially with any lawful direction of Ministry; or

(3) Before determining not to renew a license pursuant to subsection (2), the Ministry shall give the licensee adequate advance notice in writing of its intention not to renew such license, specifying the grounds on which it proposes to not renew, and shall give the licensee the opportunity:

(a) to present its views; and

(b) to submit to the Ministry within such time as the may specify a written statement of objections to the decision not to renew the license.

CHAPTER 7

APPLICATIONS FOR LICENSES

Regulation 17

(1) Applicants for licenses shall provide such information as the Ministry shall specify, which may include:

(a) applicant details, including name, legal status, business address, the address of the registered office and other applicable contact information;

(b) details regarding the type of telecommunications networks and services and in the case or wireless telecommunications systems the required frequency authorisations for which the application is being submitted;

(c) in the case of a license to land, such details regarding the place of landing, capacity and other matters;

(d) information regarding the applicant’s directors, partners, management, officials and controlling persons;

(e) information regarding the applicant’s background and other licenses or frequency authorisations held by the applicant or any of its affiliates;

(f) information describing the telecommunications network or service to be supplied;

(g) details regarding business plans, including the estimated date of commencement of the relevant activity;

(h) information regarding the applicant’s proposed rates; and

(i) details, policies, strategies or representations regarding applicant’s intention and ability to comply with the Law, these Regulations, or any conditions of a license or frequency authorisation granted under Regulations issued by the Ministry.

(2) The Ministry shall prescribe the instructions for applicants, the forms of applications for licenses and the charges for submitting an application.

(3) The Ministry may ask applicants for further information and may refrain from considering or acting upon the application until the information is supplied.

(4) Each applicant will be bound by the terms, commitments, offers, plans and obligations stated in their applications.

(5) Any change in the information contained in the application and in any subsequent information provided to the Ministry must be immediately made known to the Ministry.

Regulation 18

(1) The Ministry shall maintain a register of licensees and such other information as the Ministry deems appropriate, other than information the disclosure of which will be a breach of confidential information.

(2) The register shall be open to public inspection, without charge, at the offices of the Ministry.

CHAPTER 8

CLOSING PROVISIONS

Regulation 19

(1) The Ministry is responsible for the implementation and dissemination of this Regulation to all relevant parties.

Regulation 20

(1) Any person who violates this Regulation will subject to the enforcement measures and penalties specified in accordance with Part VII of the Law.

Regulation 21

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Schedule 1

DRAFT TERMS AND CONDITIONS FOR THE FOUR (4) TYPES OF TELECOMMUNICATIONS LICENSES TO BE ISSUED UNDER ARTICLE 22 OF THE LAW ON TELECOMMUNICATIONS (2011).

First Draft

Table of Contents

Section

Title

Page

A.

CORE LICENCE CONDITIONS – ALL LICENCES

42

B.

TYPE I – TELECOMMUNICATION NETWORKS AND SERVICE PROVIDER LICENCE

43

B.1

Standard Terms – All Type I Licences

43

B.2

Type I Licence – Licensee Specific Terms

45

C.

TYPE IIA – TELECOMMUNICATION SERVICE PROVIDER LICENCE

46

C.1

Standard Terms – Type IIA Licence

46

C.2

Licensee Specific Terms – Type IIA Licence

48

D.

TYPE IIB – SERVICE PROVIDER, ISP, DOMAIN NAME REGISTRAR, VALUE-ADDED SERVICES PROVIDER LICENCE

49

D.1

Standard Terms – Type IIB Licence

49

D.2

Type IIB Licence – Licensee Specific Terms

50

E.

TYPE III –CONSULTING, INSTALLATION AND REPAIR SERVICES AND/OR EXPORT, IMPORT, MANUFACTURE OR SUPPLY OF TELECOMMUNICATION EQUIPMENT, LICENCE

51

E.1

Standard Terms – Type III Licence

51

E.2

Licensee Specific Terms – Type III Licence

52

F.

TYPE IV – PRIVATE TELECOMMUNICATIONS NETWORK LICENCE

53

F.1

Standard Terms – Type IV Licence

53

PROVISIONS FOR TELECOMMUNICATIONS LICENCES

A. CORE TERMS – ALL LICENSES – TYPE I, II, III AND IV

Residence

The Licensee shall be an individual that is resident in, or a company that is registered in Lao PDR.

Shareholding

The Licensee shall notify the Ministry of any changes in the substantial shareholdings of the company.

The Licensee shall comply with all the relevant laws and rules under any legislation or guidelines issued by the Government or Government agencies pertaining to the restrictions on shareholdings in the Licensee.

Restructuring or Rationalisation

The Licensee shall notify the Ministry, in writing, of any restructuring or rationalization of the Licensee’s corporate structure (if any).

Joint Ventures or Consortiums

The Licensee shall notify the Ministry of any joint venture or consortiums which it enters into with any other Licensees after the grant of the licence.

Compliance with the law

The Licensee shall comply with the provisions of the Law.

The Licensee shall comply with the provisions of any subsidiary legislation made, or other instruments, guidelines or regulatory policies validly issued, in writing, by the Ministry.

Indemnity

The Licensee shall indemnify the Ministry against any claims or proceedings arising from any breaches or failings on the part of the Licensee.

Confidentiality of Customer Information

The Licensee shall take all reasonable steps to ensure that its employees, agents, consultants or other third party suppliers who are engaged in the Licensee’s business or who have access to the Licensee’s customer information do not disclose information about a customer of a Licensee which has been acquired in the course of the Licensee’s business without the prior consent of that customer, in accordance with Article 36, subsection 8 of the Law.

B. Type I – Telecommunication Networks and Service Provider Licence

B.1 Standard Terms – All Type I Licences

Sole Licence

This Licence replaces any other licence granted by the Ministry and shall be the sole licence held by the Licensee in respect of the network facilities and services authorized under this licence.

Compliance with numbering and electronic addressing plans

The Licensee shall comply with the numbering and electronic addressing plan issued by the Ministry under Article 12 of the Law.

Compliance with spectrum plan

The Licensee shall comply with any radio frequency spectrum plan issued by the Ministry under Article 5 of the Law.

Compliance with consumer codes

The Licensee shall comply with any consumer codes promulgated in Lao PDR which are relevant to the activities of the Licensee.

Obligation to allow interconnection

The Licensee must allow all reasonable requests for interconnection to its network, in accordance with Articles 19 and 27 of the Law.

Safety Measures

The Licensee shall in respect of all apparatus, equipment and installations possessed, operated, maintained or used under the licence, take all proper and adequate safety measures to safeguard life or property, including exposure to any electromagnetic emission or radiation emanating from the apparatus, equipment or installations so used.

Charging Mechanism

The Licensee shall take reasonable steps to ensure that the charging mechanisms used in connection with any of its network facilities and services are accurate and reliable in all material aspects.

Compliance with Tariff Provisions of the Law

The Licensee shall notify the Ministry of the rates and charges for use of their facilities and services as required by Article 26 of the Law, and shall not vary these rates or charges without approval from the Ministry as provided for in Article 36 of the Law.

Term of Licence

This Type I licence shall be valid for fifteen (15) years from its date of issue under Article 23 of the Law.

The Licensee may apply to the Ministry for extension of the validity of their licence at least six (6) months before the expiry date of the licence.

Commencement of Providing Facilities and Services

The Licensee shall commence the provision of facilities and services which it is authorised to provide within 12 months of the date of issue of this licence.

The Ministry may, upon application by the Licensee, grant an extension of time to the Licensee if the Ministry is satisfied that there has been genuine progress made towards the provision of the facilities.

Licence Fees

The Licensee shall pay the Ministry such annual licence fee as is promulgated by the Ministry in the relevant regulations and under Article 23 of the Law.

Alterations to the Licensee’s Network

The Licensee shall inform the Ministry and provide such additional information as the Ministry may reasonably require about any proposals for changes to the Licensee’s network facilities.

Prohibitions

The Licensee shall not engage in any conduct which would breach Article 36 of the Law.

Disputes

Any dispute which arises under this license shall be resolved according to Articles 39 to 43 of the Law.

Access to Land

The Licensee shall have access to land, streets, drainage channels and buildings etc. as is necessary for the establishment or operation of their network, as provided for in Article 26 of the Law, provided such access complies with all relevant national laws, decrees or regulations.

Emergency Services

The Licensee is required to provide free access to all persons connected to its network to any officially designated method of contacting emergency services such as police, ambulance or fire services.

Technical Standards Compliance

The Licensee shall ensure that all telecommunication equipment used in its network is certified and approved by the Ministry in accordance with article 17 of the Law.

Quality of Service

The Licensee shall ensure that its services meet all quality of service standards as are promulgated by the Ministry in accordance with Article 5 of the Law.

In Case of Disaster

The Licensee shall take all reasonable actions to assist the government during times of emergency or disaster, as declared by a competent government body as referred to in Article 36 of the Law. Such actions may include granting control of, access to or use of the network to government agencies for the duration of the disaster.

B.2 Type I Licence – Licensee Specific Terms

Types of facilities and services which are authorised by the licence

The Licensee shall own or operate only those types of facilities and services as are specifically authorised by the provisions of this licence.

Suspension of Facilities or Services

If the Licensee wishes to suspend the provision of any of the facilities or services being provided, the Licensee shall give not less than 2 months’ notice in writing to the Ministry and its users.

The Licensee may suspend the provision of the facilities or services for a maximum of 4 months from the date of its suspension and must recommence the provision of the suspended facilities or services no later than this period.

However, the Ministry may, upon an application being made, grant extension of time to the Licensee if the Ministry is satisfied that there are good reasons for its continued suspension.

Obligation to contribute to the Telecommunication Development Fund

The Licensee shall comply with any determination made by the Ministry in regard to contributions to the Telecommunications Development Fund under Article 31 of the Law.

Licensed Area

The licence shall be valid in those areas as are specifically authorised by the provisions of this licence.

Accounting Records

The Licensee shall prepare and deliver to the Ministry accounting records as may be reasonably required by the Ministry, in writing, from time to time.

C. Type IIA – Telecommunication Service Provider Licence

C.1 Standard Terms – Type IIA Licences

Sole Licence

This Licence replaces any other licence granted by the Ministry and shall be the sole licence held by the Licensee in respect of the network services authorized under this licence.

Compliance with numbering and electronic addressing plans

The Licensee shall comply with the numbering and electronic addressing plan issued by the Ministry under Article 12 of the Law.

Compliance with spectrum plan

The Licensee shall comply with any radio frequency spectrum plan issued by the Ministry under Article 5 of the Law.

Compliance with consumer codes

The Licensee shall comply with any consumer codes promulgated in Lao PDR which are relevant to the activities of the Licensee.

Safety Measures

The Licensee shall in respect of all apparatus, equipment and installations possessed, operated, maintained or used under the licence, take all proper and adequate safety measures to safeguard life or property, including exposure to any electrical emission or radiation emanating from the apparatus, equipment or installations so used.

Charging Mechanism

The Licensee shall take reasonable steps to ensure that the charging mechanisms used in connection with any of its services are accurate and reliable in all material aspects.

Compliance with Tariff Provisions of the Law

The Licensee shall notify the Ministry of the rates and charges for use of their facilities and services as required by Article 26 of the Law, and shall not vary these rates or charges without approval from the Ministry as provided for in Article 36 of the Law.

Term of Licence

This Type IIA licence shall be valid for ten (10) years from its date of issue under Article 23 of the Law.

The Licensee may apply to the Ministry for extension of the validity of their licence six (6) months before the expiry date of the licence.

Commencement of Providing Services

The Licensee shall commence the provision of services that it is authorised to provide within 12 months of the date of issue of this licence.

The Ministry may, upon application by the Licensee, grant an extension of time to the Licensee if the Ministry is satisfied that there has been genuine progress made towards the provision of the facilities.

Licence Fees

The Licensee shall pay the Ministry such annual licence fee as is promulgated by the Ministry in the relevant regulations and under Article 23 of the Law.

Alterations to the Licensee’s Offered Services

The Licensee shall inform the Ministry and provide such additional information as the Ministry may reasonably require about any proposals for changes to the Licensee’s offered services.

Prohibitions

The Licensee shall not engage in any conduct which would breach Article 36 of the Law.

Disputes

Any dispute which arises under this license shall be resolved according to Articles 39 to 43 of the Law.

Access to Land

The Licensee shall have access to land, streets, drainage channels and buildings etc. as is necessary for the establishment or operation of their network, as provided for in Article 26 of the Law, provided such access complies with all relevant national laws, decrees or regulations.

Emergency Services

The Licensee is required to provide free access to all persons connected to its network to any officially designated method of contacting emergency services such as police, ambulance or fire services.

Technical Standards Compliance

The Licensee shall ensure that all telecommunication equipment used in its network is certified and approved by the Ministry in accordance with article 17 of the Law.

Quality of Service

The Licensee shall ensure that its services meet all quality of service standards as are promulgated by the Ministry in accordance with Article 5 of the Law.

In Case of Disaster

The Licensee shall take all reasonable actions to assist the government during times of emergency or disaster, as declared by a competent government body as referred to in Article 36 of the Law. Such actions may include granting control of, access to or use of the network to government agencies for the duration of the disaster.

C.2 Licensee Specific Terms – Type IIA Licence

Types of Services which are Authorised by the Licence

A Licensee shall provide those types of services as are specifically authorised by the provisions of this licence.

Suspension of Services

If the Licensee wishes to suspend the provision of any of the services being provided, the Licensee shall give not less than 2 months’ notice in writing to the Ministry.

The Licensee shall recommence the provision of the suspended services not later than 4 months from the date of its suspension.

However, the Ministry may, upon an application being made, grant extension of time to the Licensee if the Ministry is satisfied that there are good reasons for its continued suspension.

Obligation to contribute to the Telecommunication Development Fund

The Licensee shall comply with any determination made by the Ministry in regard to contributions to the Telecommunications Development Fund under Article 31 of the Law.

Licensed Area

The licence shall be valid in those areas as are specifically authorised by the provisions of this licence.

Accounting Records

The Licensee shall prepare and deliver to the Ministry accounting records as may be reasonably required by the Ministry from time to time.

D. Type IIB – Service Provider, ISP, Domain Name Registrar, Value-added services provider Licence

D.1 Standard Terms – Type IIB Licence

Sole Licence

This licence replaces any other licence granted by the Ministry and shall be the sole licence held by the Licensee in respect of the services authorized under this licence.

Compliance with numbering and electronic addressing plans

The Licensee shall comply with the numbering and electronic addressing plan issued by the Ministry under Article 12 of the Law.

Compliance with spectrum plan

The Licensee shall comply with any radio frequency spectrum plan issued by the Ministry under Article 5 of the Law.

Compliance with consumer codes

The Licensee shall comply with any consumer codes promulgated in Lao PDR which are relevant to the activities of the Licensee.

Safety Measures

The Licensee shall in respect of all apparatus, equipment and installations possessed, operated, maintained or used under the licence, take all proper and adequate safety measures to safeguard life or property, including exposure to any electrical emission or radiation emanating from the apparatus, equipment or installations so used.

Charging Mechanism

The Licensee shall take reasonable steps to ensure that the charging mechanisms used in connection with any of its services are accurate and reliable in all material aspects.

Compliance with Tariff Provisions of the Law

The Licensee notify the Ministry of the rates and charges for use of their facilities and services as required by Article 26 of the Law, and shall not vary these rates or charges without approval from the Ministry as provided for in Article 36 of the Law.

Term of Licence

This Type II licence shall be valid for ten (10) years from its date of issue under Article 23 of the Law.

The Licensee may apply to the Ministry for extension of the validity of their licence six (6) months before the expiry date of the licence.

Commencement of Providing Services

The Licensee shall commence the provision of services that it is authorised to provide within 12 months of the date of issue of this licence.

The Ministry may, upon application by the Licensee, grant an extension of time to the Licensee if the Ministry is satisfied that there has been genuine progress made towards the provision of the facilities.

Licence Fees

Licensees shall pay the Ministry such annual licence fee as is promulgated by the Ministry in the relevant regulations and under Article 23 of the Law.

Alterations to the Licensee’s offered services

The Licensee shall inform the Ministry and provide such additional information as the Ministry may reasonably require about any proposals for changes to the Licensee’s offered services.

D.2 Type IIB Licence – Licensee Specific Terms

Types of Services which are authorised by the licence

A Licensee shall provide those types of services as are specifically authorised by the provisions of this licence.

Suspension of Services

If the Licensee wishes to suspend the provision of any of the services being provided, the Licensee shall give not less than 2 months’ notice in writing to the Ministry.

The Licensee shall recommence the provision of the suspended services not later than 4 months from the date of its suspension.

However, the Ministry may, upon an application being made, grant extension of time to the Licensee if the Ministry is satisfied that there are good reasons for its continued suspension.

Obligation to contribute to the Telecommunication Development Fund

The Licensee shall comply with any determination made by the Ministry in regard to contributions to the Telecommunications Development Fund under Article 31 of the Law.

Licensed Area

The licence shall be valid in those areas as are specifically authorised by the provisions of this licence.

Accounting Records

The Licensee shall prepare and deliver to the Ministry accounting records as may be reasonably required by the Ministry from time to time.

E. Type III –Consulting, installation and repair services and/or export, import, manufacture or supply of telecommunication equipment, Licence

E.1 Standard Terms – Type III Licence

Sole Licence

This Licence replaces any other licence granted by the Ministry and shall be the sole licence held by the Licensee in respect of the services authorized or the business operated under this licence.

Compliance with consumer codes

The Licensee shall comply with any consumer codes promulgated in Lao PDR which are relevant to the activities of the Licensee.

Safety Measures

The Licensee shall in respect of all apparatus, equipment and installations possessed, operated, maintained or used under the licence, take all proper and adequate safety measures to safeguard life or property, including exposure to any electrical emission or radiation emanating from the apparatus, equipment or installations so used.

Charging Mechanism

The Licensee shall take reasonable steps to ensure that the charging mechanisms used in connection with any of its services are accurate and reliable in all material aspects.

Term of Licence

This Type III licence shall be valid for five (5) years from its date of issue under Article 23 of the Law.

A Licensee may apply to the Ministry for extension of the validity of their licence six (6) months before the expiry date of the licence.

Commencement of Activity

The Licensee shall commence the provision of services or activities that it is authorised to undertake within 12 months of the date of issue of this licence.

The Ministry may, upon application by the Licensee, grant an extension of time to the Licensee if the Ministry is satisfied that there has been genuine progress made towards the provision of the facilities.

Licence Fees

The Licensee shall pay the Ministry such annual licence fee as is promulgated by the Ministry in the relevant regulations and under Article 23 of the Law.

Technical Proficiency

The Licensee shall have sufficient technical proficiency to perform the activities authorised by this licence, and shall meet any qualification, registration, licensing or similar requirements for the activities they are to be engaged in, as may be required in Lao PDR in addition to this licence.

E.2 Licensee Specific Terms – Type III Licence

Types of Activities which are Authorised by the Licence

This Licensee shall undertake only those activities as are specifically authorised by the provisions of this licence.

Licensed Area

The Licence shall be valid in those areas as are specifically authorised by the provisions of this licence.

F. Type IV – Private Telecommunications Network Licence

F.1 Standard Terms – Type IV Licence

Sole Licence

This licence replaces any other licence granted by the Ministry and shall be the sole licence held by the Licensee in respect of the network authorized under this licence, and shall apply in respect of one entity (and related entities) or one geographic site (or series of contiguous or near-contiguous geographic sites) spanning more than one land title.

Compliance with numbering and electronic addressing plans

The Licensee shall comply with the numbering and electronic addressing plan issued by the Ministry under Article 12 of the Law.

Compliance with spectrum plan

The Licensee shall comply with any radio frequency spectrum plan issued by the Ministry under Article 5 of the Law.

Safety Measures

The Licensee shall in respect of all apparatus, equipment and installations possessed, operated, maintained or used under the licence, take all proper and adequate safety measures to safeguard life or property, including exposure to any electrical emission or radiation emanating from the apparatus, equipment or installations so used.

Term of Licence

This Type IV licence shall be valid for three (3) years from its date of issue under Article 23 of the Law.

The Licensee may apply to the Ministry for extension of the validity of their licence six (6) months before the expiry date of the licence.

Licence Fees

The Licensee shall pay the Ministry such annual licence fee as is promulgated by the Ministry in the relevant regulations and under Article 23 of the Law.

Licensee to Operate Private Network Only

This licence shall be granted only for a private network as defined in Article 1 of the Regulation for Telecommunications Licensing 2013.

8. Types of Network which is Authorised by the Licence

The Licensee shall operate only that type of network and only those types of network equipment as are specifically provided for in this licence.

1 Note ‘Land Title’ is defined in Article 49 of the Amended Land Law, 2003.

Appendix A.2: Explanatory memorandum for the regulation on telecommunications licensing

EXPLANATORY MEMORANDUM FOR REGULATION ON TELECOMMUNICATIONS LICENSING 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 for Lao PDR. The regulation is designed to give effect to the Law, in particular Articles 4, 22-26, 33-34, 36, 46-48 and 57. It gives specific standard terms and conditions for each of the license types specified in Article 22 of the Law.

Objects and Application

Under Chapter 2 the object of the Regulation is to create a licensing scheme for telecommunications facilities and services as envisaged and required by the Law. The framework established by the regulation is to be implemented in a fair, transparent and non-discriminatory way, with regard to objective criteria.

Regulation 3 specifies that no one shall own or operate a telecommunications network or provide a telecommunications service unless they are licensed, that they must apply to the Ministry for a license and the terms on which the Ministry shall consider a license application. Regulation 4 specifies the types of licenses which shall be issued in line with Article 22 of the Law.

Regulation 5 provides that a licensee may only conduct those activities which are specifically provided for in their license, and that any person seeking to conduct activities as a licensee must register with the Ministry prior to doing so. It also requires licenses to contain such specific details as are necessary for these provisions to have effect.

Regulations 7 and 8 allow the Ministry to specify the fees and any specific conditions which may attach to a license, to exempt some types of licenses from certain conditions and allow the Ministry to exempt certain types or classes of operators from requiring licenses.

Fees and Conditions

Chapter 4 specifies that the Ministry may set an appropriate annual license fee and that the Ministry shall issue a regulation specifying the quantum of this fee and the methods of determining, verifying and collecting any license fees.

Chapter 5 specifies that licensees must pay any fees specified by the Ministry, may not transfer, lease or assign the license without the prior approval, in writing, of the Ministry, must provide reasonable assistance to government agencies during emergencies or disasters, must cooperate with the government on matters of national security and must observe all conditions of the license, the regulations and the Law. It also requires that any person holding a significant interest in a telecommunications licensee may not dispose of this interest without the prior written approval of the Ministry.

Regulation 11 sets out specific conditions which all licenses must contain, including duration, time of expiry and time required for renewal applications, circumstances under which the license may be amended and other matters the Ministry may specify for such a license. Regulation 12 sets out what licensees are required to do in relation to meeting the obligations imposed by the Law. Regulation 13 requires licensees not to disclose or improperly use the confidential information of their customers or other licensees.

Suspension, Termination, Amendment and Renewal

Regulation 14 sets out the conditions on which the Ministry may terminate or suspend a license, including failure to comply with the Law, Regulations or the terms of its license or being in default of lawful fees or charges. It requires the Ministry to give notice to the Licensee and to allow the Licensee to respond to the alleged breaches and to attempt to remedy them. Regulation 15 allows the Ministry to alter the terms of a license subject to similar criteria. Regulation 16 allows for licensees to apply for the renewal or extension of their licenses.

Applications for Licenses

Regulation 17 sets out the information requirements which must be met in any application for a license. It allows the Ministry to specify the form of applications, to prescribe the instructions for applicants and to request applicants to supply information beyond that which is generally required. Regulation 18 requires the Ministry to maintain a register of licensees which shall be open to public inspection without charge at the offices of the Ministry.

Schedule to the Regulation

Schedule 1 to the regulation sets out the standard terms and conditions of the various types of licenses specified in the Law, including core provisions which should be present in all licenses.

Conclusion

This regulation ensures that the articles of the Law in relation to licensing are capable of effective and easy implementation by the Ministry as well as providing certainty and predictability for investors in the telecommunications sector of Lao PDR. It will ensure that licensing processes are transparent and fair and that they do not impose an unnecessary burden on the sector. It and the recommended license terms and conditions attached as schedule 1 represent a strong licensing framework for Lao PDR which will aid in its ICT development going forward.

Appendix B.1: Regulation on Mobile Virtual Network Operators Service

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Mobile Virtual Network Operators Service 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

Considering:

(a) that under Part IV, Articles 19 and 20 of the Law on Telecommunications (Amended), Telecommunications network and service providers are obliged to allow interconnection with their own networks and share telecommunications infrastructure; and

(b) that under Part IX. Article 36 of the Law on Telecommunications (Amended), Telecommunications network and service providers are prohibited from unduly using advantages from their own networks to prevent or restrict the operations of other telecommunications network and service providers; and

(c) that to promote fair competition and development in wireless broadband and cellular mobile (voice) service providers, and in acknowledging that radio frequency spectrum is a bottleneck and an entry barrier to potential new competitors, it is necessary to stipulate regulation on mobile virtual network operator service with Regulation from the Ministry of Posts and Telecommunication.

In view of:

1. the Law on Telecommunications (Amended), and especially Article 46

2. the MPT Policy on Mobile Virtual Network Operators

3. the Commercial Competition Regulations of Lao People’s Democratic Republic

4. the Policy on Post and Telecommunication/ICT 2013 – 2016 of the Lao People’s Democratic Republic

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON MOBILE VIRTUAL NETWORK OPERATOR SERVICE 2013

CHAPTER 1

GENERAL PROVISION

Regulation 1

(1) The terms in this decree shall have the same meaning as prescribed in the Law on Telecommunications (Amended).

(2) In this decree, unless the context otherwise requires:

“Law” means Law on Telecommunications (Amended) 2011.

“Mobile Access Provider” is a Type I licensed telecommunications network and services licensee who operates a mobile network and who is a holder of cellular mobile frequency spectrum licences under the Law.

“Mobile Virtual Network Operator” means a Type II licensed telecommunications operator that is not a holder of a cellular mobile frequency spectrum licence under the Law but is capable of providing public cellular services to end users by utilising the radio frequency spectrum and telecommunications facilities of a Mobile Access Provider.

“Mobile Virtual Network Operator Service” has the meaning as described in Regulation 3.

CHAPTER 2

PROVISIONING OF MOBILE VIRTUAL NETWORK OPERATOR SERVICE

Regulation 2

A Mobile Access Provider shall be permitted to provide a wholesale Mobile Virtual Network Operator Service.

Regulation 3

(1) The Mobile Virtual Network Operator Service is a wholesale service that enables a Mobile Virtual Network Operator to provide public cellular services to end users by accessing the radio networks of one or more Mobile Access Providers.

(2) The Mobile Virtual Network Operator Service comprises any or all of the following:

(a) sharing of airtime wholesale capacity of the Mobile Access Provider;

(ii) use of the switching services and radio communications transmitters and links of the Mobile Access Provider; and

(iii) use of bandwidth service, cellular mobile services and access application services of the Mobile Access Provider.

Regulation 4

(1) The Mobile Virtual Network Operator Service is limited to enable a Mobile Virtual Network Operator to resell the airtime capacity and services of the Mobile Access Provider under its own brand name to end users for purposes of voice calls, SMS/MMS and data access.

(2) The functionalities of the Mobile Virtual Network Operator Service include but are not limited to:

(a) network elements such as the radio networks, mobile switching centres, home location registers and authentication centres, prepaid platforms, short message service centres and voicemail servers; and

(b) operations support systems such as charging gateway and mediation systems, wholesale billing systems, retail billing systems, customer care systems, customer relationship management systems, IT platforms and interfaces, and fraud and bad debt management system.

Regulation 5

Where the Mobile Access Provider and the Mobile Virtual Network Operator reach an agreement on the terms and conditions on the Mobile Virtual Network Operator Service, the parties shall record their agreement formally in writing and provide a copy to the Ministry of Posts and Telecommunication for registration.

CHAPTER 3

CLOSING PROVISION

Regulation 6

This Regulation shall come into force as from the date of promulgation

Stipulated in Vientiane
On
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix B.2: Explanatory memorandum for the regulation on mobile virtual network operators service

EXPLANATORY MEMORANDUM FOR REGULATIONS ON MOBILE VIRTUAL NETWORK OPERATORS SERVICE 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

Introduction

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 (Amended) (“the Law”) for Lao PDR. The Regulation is designed to govern how Mobile Access Providers provide wholesale Mobile Virtual Network Operator Services (“MVNO services’). In particular Article 4, and subsection 4 of Article 36. Under Article 46 of the Law, the Ministry of Posts and Telecommunications (“the Ministry”) has the rights and obligations to establish this Regulation for the monitoring and enforcement of the policies, objects and principles of this Regulation and the law.

Policies, Objectives and Principles

This Regulation has been made to promote the fair and transparent use of MVNO services amongst telecommunication service providers, in accordance with the Objects of the Law. Such aims will ensure that the Ministry is able to manage the efficient allocation of Telecommunications resources for the benefit of the network and service providers, and the people of Lao PDR more generally.

In furtherance of these objects, Articles 19 and 20 of the Law oblige network and service providers to allow interconnection with their own networks and share telecommunications infrastructure. Furthermore, Subsections 4 and 6 of Article 36 of the Law prohibits telecommunications operators from obstructing fair competition in this sector, by colluding or using their infrastructure.

Provisioning of Mobile Virtual Network Operator Service

Chapter 2 clearly defines MVNO services, though not exhaustively. Regulation 4 further defines the application of this Regulation by limiting a Provider to resell airtime capacity and services to end users for the purposes of voice calls, SMS/MMS and data access. This ensures the application of this Regulation is clearly defined and does not have too wide an operation.

To ensure the transparency of MVNO services and the ability to resolve a dispute if such an event occurred, Regulation 5 requires MVNO agreements to be formally written and a copy registered with the Ministry.

Conclusion

This Regulation is for the benefit of consumers as well as network operators and providers in the Lao PDR telecommunications sector. This Regulation provides for the regulation of competition in the sector in a manner which is consistent with the aims, objects and articles of the Law. By defining clearly the operation of MVNO services, the Ministry will ensures that the telecommunications sector of Lao PDR is operated fairly and transparently, for the benefit of those within it.

Appendix C.1: Regulation on Telecommunications Access and Interconnection

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Telecommunications Access and Interconnection 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

1. Articles 5, 19, 20, 21 and 46(2) of the Law on Telecommunications 2011 (Amended)

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON TELECOMMUNICATIONS ACCESS AND INTERCONNECTION 2013

CHAPTER 1

PRELIMINARY

Regulation 1

(1) The terms in this Regulations shall have the same meaning as prescribed in the Law on Telecommunications 2011.

(2) In these Regulations, unless the context otherwise requires

“Law” means the Law on Telecommunications 2011

“Access agreement” means an agreement between two licensees setting forth their respective rights and obligations with respect to providing access to and interconnection between their telecommunications networks and telecommunications services.

“Call communication” means a communication from or to, or involving a fixed number or mobile number for use in the operation of a licensee’s network and as allocated by the Ministry in accordance with the licensee’s licence (or joint venture agreement) and the Act.

“Cellular mobile network services” means a telecommunications service where:

(a) an end-user can use a telecommunications service while moving continuously between places;

(b) the cellular mobile access device used for or in relation to the supply of telecommunications service is not in physical contact with any part of the telecommunications network by means of which the telecommunications service is supplied; and

(c) the telecommunications service is supplied by the use of a telecommunications network that has intercell hand-over functions.

“Charges” means the sums payable by one licensee to another licensee for the provision of telecommunications network or telecommunications services.

“CLI” means calling line identification whereby information generated by a telecommunications network identifies the calling number and forwards that information through that telecommunications network to another telecommunications facility directly or indirectly.

“Confidential information” means all information, know-how, ideas, concepts, technology, manufacturing processes, industrial, marketing and commercial knowledge of a confidential nature (whether in tangible or intangible form) relating to or developed in connection with or in support of the business of the relevant licensee but does not include:

(a) information which is or becomes part of the public domain (other than through any breach of an access agreement); or

(b) information rightfully received by another person from a third person without a duty of confidentiality being owned by the other person to the third person, except where the other person has knowledge that the third person has obtained that information either directly or indirectly as a result of a breach of any duty of confidence owned to the first mentioned person; or

(c) information which has been independently developed by another person;

(d) information required by law or the business rules of any stock exchange to be disclosed, provided that:

(i) the receiving party gives twenty-four (24) hours notice to the disclosing party of the particulars of the required disclosure;

(ii) the receiving party provides the disclosing party with all assistance reasonably required by the disclosing party (at the disclosing party’s cost) to enable the disclosing party to take any steps available to it to prevent that disclosure or to ensure that it occurs subject to a reasonable obligation of confidence.

“Customer” means in relation to a licensee, a person having a contractual relationship with the customer for the provision of telecommunications services.

“DTS” means a digital trunk switch installed in a licensee’s network.

“Interconnection” means the interconnection of telecommunication networks of different service providers for the purpose of providing a wide range of services to users. Interconnection includes interconnection services.

“Interconnection services” means PSTN services and cellular mobile network services, and covers the licensed operations for local, national and international services.

“International gateway” is a designated DTS which provides operational interworking between the licensee’s network respectively, and a foreign operator. Every international gateway is defined by a unique name or code.

“International services” means communications routed to or from a foreign destination via an international gateway.

“Local service” means communication between two (2) exchange lines which are:

(a) connected to the same switching centre;

(b) connected to switching centres within the same charging district area; or

(c) connected to switching centres which are in an adjacent charging district area.

“National service” means communication between two (2) exchange lines connected through switching centres which are not within the same charging district and not in the charging district which are adjacent to each other.

“POI” means point of interconnection which is a point at or between tandem switches which demarcates the network of the licensees and is a point at which communication is transferred between the interconnecting networks.

“PSTN” means public switched telephone network which is a domestic public telecommunications network usually accessed by telephones, key telephone systems and private automatic branch exchanges, and the completion of circuits between the calling party and called party in such a network requires network signalling in the form of dial pulses or multi-frequency tones.

CHAPTER 2

OBJECTIVES AND APPLICATION

Regulation 2

(1) These Regulations sets out the policy objectives for access and interconnection of telecommunications network and telecommunications services between licensees within the telecommunications sector in Lao PDR.

(2) These Regulations are intended to:

(a) encourage the orderly development of the telecommunications network that enhances and strengthens the social and economic welfare of Lao PDR;

(b) to prevent and abolish discrimination in the provision of telecommunications networks and telecommunications services in Lao PDR;

(c) to promote and maintain co-operation and fair competition between licensees in providing telecommunications networks and telecommunications services in Lao PDR; and

(d) to promote and safeguard the interests of consumers by ensuring that telecommunications services are reasonably accessible to all citizens of Lao PDR consistent with the prevalent social and economic realities of the country.

(3) These Regulations are not intended to:

(a) limit the matters which may be dealt with in an access agreement but to provide a minimum set of issues which should be addressed; and

(b) prevent or delay the licensees from negotiating or entering into bilateral or multilateral agreements which deal with matters other than those addressed in this Guideline.

Regulation 3

This Guideline shall apply to the access and interconnection of telecommunications networks and telecommunications services between licensees providing interconnection services. The Regulations applies to both domestic and foreign legal entities and organizations involved in telecommunications in Lao PDR.

CHAPTER 3

ACCESS AND INTERCONNECTION PRINCIPLES

Regulation 4

(1) Every licensee:

(a) has a duty to provide access to and interconnection with other licensees’ telecommunications networks and telecommunications services, on such terms and conditions as may be mutually agreed by the licensees;

(b) shall not, with respect to its telecommunications networks and telecommunications services, refuse, obstruct or in any way impede, other than for reasonable technical grounds stated in writing, another licensee from seeking access to and interconnecting with the licensee’s telecommunications networks and telecommunications services; and

(c) shall provide for the transmission and routing of the telecommunications services of other licensees, at any technically feasible point, as may be specified by the Ministry.

(2) The requirement specified in sub-article (1) (c) shall be deemed satisfied if interconnection is:

(a) offered either at the licensee’s host switch or at any other POI mutually agreed by both licensees; and

(b) upon request, provided at other POIs, at charges that reflect the licensee’s total economic cost of constructing additional telecommunications network as necessary to provide the interconnection services at the requested POIs.

(3) The Ministry may require a licensee, in fulfilling its duty to interconnect, to undertake specific obligations to ensure that the access and interconnection provided by such licensee is fair, reasonable and timely.

(4) The access and interconnection arrangements between the licensees shall be based on the principles of symmetrical arrangements, transparency and reciprocity as between the licensees.

Regulation 5

(1) The access and interconnection between the licensees shall be:

(a) on an equitable and non-discriminatory basis; and

(b) of at least the same or more favourable technical standard and quality as the technical standard and quality provided on the licensees’ own telecommunications networks and telecommunications services.

(2) For the purpose of this Guideline, the term ‘non-discriminatory’ requires comparison of:

(a) the basis on which a service is provided by one licensee to another licensee; with; and

(b) the basis on which that service is provided by one licensee to itself and to other licensees who are similarly situated.

Regulation 6

(1) Each licensee shall be required to make available its telecommunications networks and telecommunications services to any licensee wishing to interconnect on an appropriately unbundled basis, at charges to be agreed between the licensees.

(2) The charges that a licensee offers for all interconnection services shall reflect the fact that the relationship between licensees is a carrier-to-carrier relationship. This generally involves the provision of facilities and services which are not available to customers or to unlicensed third parties.

(3) Where feasible, the licensee must use an established cost methodology.

(4) In negotiating access agreements, the licensees shall take into consideration the following charging principles:

(a) the charges should be cost based. This means that the charges for a service shall not exceed the stand-alone cost of providing the service and shall not be lower than the long-run average incremental costs of providing the service where:

(i) “stand-alone cost” means the cost of providing a service independently of providing any other service or services; and

(ii) “long-run average incremental costs” means the costs incurred by providing a service in addition to other service or services already being provided.

(b) the charges should not discriminate in a way which reduces efficient competition. This means that:

(i) the charges should not have the effect of reducing efficient competition; and

(ii) the charges should allow more efficient sources of supply to displace less efficient sources of supply in downstream telecommunications markets;

(c) the charges should not be inflated to reduce competition in downstream markets. This means that a licensee facing effective competition will not be able to inflate the access charges with the aim of reducing competition in downstream telecommunications markets; and

(d) the charges should not be predatory.

(5) The charges shall be structured as follows:

(a) fixed once off charges for the establishment and implementation of physical interconnection;

(b) periodic rental charges for use of telecommunications networks and resources; and

(c) variable charges for telecommunications services and supplementary services.

(6) The calculation of charges for the interconnection and utilization of telecommunication infrastructure shall be based on the principles of transparency, fairness, and non-discrimination,

Regulation 7

(1) A licensee has a duty to negotiate and establish, in good faith, with another licensee, an access agreement.

(2) A licensee must comply with the following procedures in negotiating and establishing an access agreement:

(a) submit a written request to another licensee to negotiate an access agreement (“access request”);

(b) where the access request is accepted, enter into a confidentiality agreement within seven (7) days of receipt of the access request;

(c) begin negotiations within fourteen (14) days after submission of the access request and receipt of an executed confidentiality agreement; and

(d) subject to sub-article (4), conclude and execute the access agreement within three (3) months from the date of the access request (“negotiation period”).

(3) For the purpose of sub-article (2)(a), the access request must:

(a) contain the name and contact details of the licensee requesting interconnection;

(b) specify the type of access and interconnection required including inter alia:

(i) information on network configuration;

(ii) proposed POIs;

(iii) proposed interfaces;

(iv) capacity requirements;

(v) proposed traffic routing;

(vi) traffic forecasts;

(vii) traffic types;

(viii) proposed implementation schedules not earlier than six (6) months from the date of the access requests; and

(ix) details of initial and further network operations relevant to the access and interconnection requirements.

(4) In determining whether to accept a licensee’s request under sub-article (2)(a), the licensee upon whom an access request has been served (“providing licensee”) shall have regard to:

(a) whether the provision of access and interconnection to the requested telecommunications networks and telecommunications services would promote the objectives of this Guideline;

(b) the legitimate business interest of the providing licensee and the providing licensee’s investment in telecommunications network used to provide access and interconnection;

(c) the legitimate interests of persons who have rights to use the requested telecommunications networks and telecommunications services;

(d) the operational and technical requirements necessary for the safe and reliable operation of the requested telecommunications networks and telecommunications services; and

(e) the economically efficient operation of the requested telecommunications networks and telecommunications services.

(5) In the event that the licensees fail to conclude an access agreement within the negotiation period, either licensee may:

(a) make a written request to the Ministry to extend the negotiation period; or

(b) make a written request for the Ministry to determine an access agreement between the licensees in accordance with this Guideline 12. The Ministry may however require a licensee to publish a reference interconnection offer as it deems fit, which shall be submitted to the Ministry for approval.

(6) The determination made by the Ministry pursuant to sub-article (5)(b) shall be legally binding on the licensees.

Regulation 8

(1) Any exchange of traffic between the licensees prior to the conclusion of an access agreement pursuant to Guideline 7 shall be subject to suitable metering and charging mechanisms being put in place, and agreement being reached with regard to the keeping of records by the licensees concerned.

(2) Where the access agreement is concluded pursuant to Guideline 7 the licensees will accordingly adjust retrospectively any access charges previously agreed, and effect payments in accordance with the provisions of the access agreement unless otherwise agreed by the licensees.

Regulation 9

(1) An access agreement should enable licensees to provide telecommunications networks and telecommunications services to their respective customers and the customer of other licensees.

(2) An access agreement shall cover at least the following matters:

(a) scope and definition of telecommunications networks and telecommunications services including transit services (if offered);

(b) interconnection and POI requirements and principles;

(c) provision of information;

(d) interconnection provisioning procedures;

(e) network and transmission capacity requirements;

(f) technical service level commitments;

(g) technical specifications and standards;

(h) transmission and performance standards;

(i) fault reporting and resolution procedures

(j) network management, maintenance and measurement;

(k) network safety, protection and related matters;

(l) call handling and operations procedures;

(m) access to interconnection facilities and sharing of infrastructure;

(n) charging mechanisms, billing and settlement procedures;

(o) transmission of calling line identification information;

(p) operator assisted services, directory information and assistance;

(q) commercial terms and conditions;

(r) the universal service contribution of operators (if required);

(s) network numbering;

(t) confidentiality of information;

(u) liability and indemnities;

(v) force majeure;

(w) intellectual property rights;

(x) provision for an access agreement liaison committee; and

(y) review periods and terms for review.

(3) Each access agreement shall incorporate:

(a) a technical and implementations manual;

(b) an operations and maintenance manual; and

(c) any other necessary manuals to facilitate the implementation of the provisions of the access agreement.

Regulation 10

(1) Subject to sub-article (2) below, any licensee, may at any time after the access agreement comes into force, request in writing and agree to negotiate in good faith any proposal to replace, revise or amend the access agreement in accordance with this Guideline and the review provisions of the access agreement.

(2) The terms and conditions of the current access agreement shall remain in force and effect during any negotiations until commencement of the replaced, revised or amended access agreement.

(3) If the licensees fail to reach an agreement on any such proposal pursuant to sub-article (1) above within a reasonable time, either licensees may make a written request to the Ministry to make a determination on any proposal necessary to give effect to a workable and equitable access agreement.

The modification to the access agreement shall be effective upon lodgement with the Ministry in accordance with Guideline 12.

Regulation 11

(1) The licensees must lodge with the Ministry copies of all access agreements into which they enter within [seven (7)] days from the date of execution of the access agreements.

(2) Upon lodgement, the access agreement becomes effective and are enforceable in law unless the Ministry directs the parties to the access agreement to amend the terms thereof.

(3) The access agreements lodged pursuant to sub-paragraph (2) shall be kept on a register of access agreements which shall be maintained by the Ministry.

(4) The public part of the register of access agreements shall be available for public scrutiny on payment of a reasonable fee as determined by the Ministry.

Regulation 12

Any determination by the Ministry under this Guideline shall to the extent possible:

(1) be taken only after licensees have had any opportunity to come to a commercial agreement;

(2) avoid distorting industry economics;

(3) discourage uncommercial or anti-competitive behaviour; and

(4) take account of operational realities and the objectives detailed in the Law.

CHAPTER 4

TECHNICAL CONSIDERATIONS

Regulation 13

(1) A licensee who interconnects with another licensees shall take reasonable measures to ensure that the interconnection does not cause physical or technical harm to the other licensee’s telecommunications network.

(2) In negotiating access agreements, the licensees shall take into consideration the following technical matters:

compliance with international standards where feasible;

the offering of technical and operational interconnection facilities on the basis of suitably unbundled system components, in accordance with general practice in the industry;

that the licensees’ switching and transmission facilities have the capacity to interconnect with other telecommunications networks;

the preservation of network integrity and network security;

the reasonableness of lead times for network provisioning;

compliance with the provisions and requirements of the national numbering plan;

allowance for differences in the interconnecting telecommunications network;

good engineering principles and practices; and

timely and efficient deployment of sufficient numbers and capacity of links to support the required grade of service for customers.

Regulation 14

(1) A licensee who controls a telecommunications network used to support the provision of telecommunications services shall allow other licensees to jointly use the same telecommunications network, at cost based prices and on non-discriminatory terms and conditions to be mutually agreed by the licensees involved.

(2) A licensee may include as part of the access agreement, access to and shared use of physical space at the premises and facilities of the licensee including but not limited to buildings, land, ducts, pipelines, equipment, installations and wires.

CHAPTER 5

PROTECTION OF CUSTOMER INTERESTS

Regulation 15

(1) In negotiating access agreements, the licensees shall take into consideration the interests of the end-users including:

(a) ensuring the least possible cost to customers necessary to ensure the provision of affordable telecommunications services;

(b) improved access for currently underserved groups within the community in Lao PDR, pursuant to the objective of universal access to telecommunications services;

(c) enabling any customer to communicate with any other customer on a seamless and transparent basis (the any-to-any principle);

(d) the protection of customer’s privacy and the confidentiality of customer information; and

(e) allowing customers to choose their preferred operator of network access for telecommunications services without artificial or anti-competitive constraint limiting their choices.

Regulation 16

(1) In relation to a customer:

(a) a customer will be regarded as a customer of a licensee when the customer utilises a telecommunications service provided to that customer by the licensee;

(b) the same person may be a customer of more than one licensee:

(i) in respect of the same or different telecommunications service provided by different licensees; or

(ii) because the customer is directly connected to one licensee’s telecommunications network but utilises the telecommunications services provided by another licensee.

Regulation 17

(1) Each licensee shall be responsible for billing its own customer, unless express agreement to the contrary is made by the licensees.

(2) The licensee responsible for billing the customer shall determine accurately the charge of the communication and shall pay any other licensees involved in carrying part of the communication their due access charge as agreed between the licensees.

CHAPTER 6

PROTECTION OF INFORMATION

Regulation 18

(1) All licensees who are parties to any access agreements shall provide on a timely basis all available and relevant information to the extent reasonably required for inter alia the following purposes:

(a) to ensure efficient network interconnection;

(b) to determine rates and charges to be billed by the licensees for use of each licensee’s telecommunications networks and telecommunications services;

(c) to determine rates and charges to be billed by a licensee to its customers;

(d) in relation to likely changes to the licensee’s network which will affect the telecommunications networks and telecommunications services of the other licensees; and

(e) in relation to conditions affecting the quality of service experience by customers;

(2) For the purpose of inter-operator billing reconciliation, the licensees shall provide CLI and network charging information associated with each call communication on the terms and conditions to be set out in the access agreement.

Regulation 19

(1) The licensees must protect from disclosure any confidential information provided by another licensee in the course of negotiating or concluding an access agreement.

(2) The licensees may only use such confidential information for the provision of the telecommunications services and for the specific purpose for which the confidential information was provided.

(3) The licensees shall adopt appropriate procedures to ensure that the confidential information is not used for the development or marketing of other telecommunications networks and telecommunications services by the licensees or by any third party.

CHAPTER 7

CLOSING PROVISIONS

Regulation 20

This Guideline may be reviewed by the Minister from time to time who may add to, vary or revoke any regulation, after consultation with the licensees and the public.

Regulation 21

In the event of any inconsistency between the provisions of these Regulations and provisions of the Law, the provisions of the Law shall prevail to the extent of the inconsistency.

Regulation 6

This Regulation shall come into force as from the date of promulgation

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix C.2: Explanatory memorandum for the regulation on telecommunications access and interconnection

EXPLANATORY MEMORANDUM FOR THE REGULATION ON ACCESS AND INTERCONNECTION 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

Introduction

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 for Lao PDR. The Regulation constitutes the regulations contemplated in Article 5 of the Law and are designed to give effect to the law, in particular Articles 19 to 21, 27 and 46.

Objectives and Application

Chapter 2 sets out the policy objectives for access and interconnection of telecommunications networks and services between licensees in Lao PDR. They are intended to encourage orderly development of Lao PDR’s telecommunications network, prevent discrimination in the provision of networks and services, promote competition between licensees and to promote and safeguard the interests of consumers by ensure reasonable access to telecommunications services for the citizens of Lao PDR.

This Regulation does not limit the matters which may be dealt with in an access agreement, nor prevent or delay licensees from negotiating or entering into agreements which deal with matters other than those addressed.

This Regulation applies to the access and interconnection of all telecommunications networks and services between licensees in Lao PDR.

General principles

Chapter 3 provides minimum standards which must be met in respect of the duty to interconnect with other licensees, principles of non-discrimination and charging principles. All licensees must allow other licensees to interconnect to their network, such access and interconnection cannot be discriminatory or inequitable, and must be of the same technical standard as they provide to themselves. Fees or charges for interconnections should be on an appropriately unbundled basis, based on costs, and where feasible based upon an established cost methodology. The regulation also provides a structure for how charges should be levied.

Furthermore, Chapter 3 provides duties and standards for licensees in respect of negotiations for interconnection. Licensees have a duty to negotiate and establish access agreements with other licensees in good faith. Requests for interconnection must be submitted in writing after which the parties must enter into a confidentiality agreement. At this point the parties have fourteen (14) days to commence negotiations and must conclude and execute an access agreement within three (3) months of doing so.

Regulation 7(3) contains the minimum information which must be present in a request for access and 7(4) details the factors a licensee must consider when determining whether to accept a request for access. Where negotiations fail either licensee may make a written request to the Ministry to extend the negotiation period, or to determine an access agreement for the parties.

Under Regulation 8, any exchange of interconnection traffic which occurs prior to the conclusion of an access agreement is subject to suitable meeting and charging mechanism, and an agreement between the parties in respect of record keeping. Where an agreement is subsequently concluded the licensees will adjust the fees or charges for such traffic accordingly.

Regulation 9 details the minimum matters which must be covered in any access agreement and the necessary manuals which must be incorporated into such an agreement. Regulation 10 allows licensees to renegotiate access agreements and provides that an existing agreement will continue in force until the conclusion of any new or altered agreement.

Under regulation 11 licensees are required to lodge copies of all access agreements with the Ministry within 7 days of the execution of the agreement. Once lodged an agreement is effective and enforceable in law unless the Ministry directs the parties to amend the terms of the agreement. The Ministry will maintain a register of agreements, the public parts of which shall be available for public scrutiny on payment of a fee. Regulation 12 covers the factors the Ministry will take into account when making determinations under any of the regulations.

Technical Matters

Regulation 13 provides that licensees shall take reasonable measures to ensure that their interconnection with the network of another licensee does not cause physical or technical harm to that other licensee’s network. It also provides a minimum set of technical matters which must be considered when negotiating an access agreement.

Regulation 14 provides for mandatory infrastructure sharing between licensees at cost based prices and on non-discriminatory terms and conditions. It also provides that an access agreement may include provisions for access to and shared use of physical space at the facilities and premises of the licensees.

Customer Interests and Information Protection

Chapter 5 provides that when negotiating access agreements licensees must take into consideration the interests of end users, including minimising costs, improving access for underserved groups, any-to-any communication, privacy and confidentiality of information, and freedom of customer choice. It also provides a definition of what constitutes a customer, and states that a person may be a customer of two or more providers at once.

Chapter 6 requires all licensees who are parties to an access agreement to provide all available and relevant information which may reasonably be needed for ensuring efficient network interconnection, for determining rates and charges for billing of other licensees or customers, in relation to conditions affecting the licensee’s network which will affect other licensees and which relate to conditions affecting the quality of service experienced by customers. The division also requires licensees to protect against disclosure of any confidential information provided by other licensees, prevents licensees from using confidential information other than for the purpose for which it was provided, and requires licensees to adopt procedures to ensure that confidential information is not used for the development or marketing of services by licensees or third parties.

Variation

Under Section 20 the regulations are subject to review and variation by the Ministry from time to time after consultation with licensees, in order to ensure they represent the best form of regulation for the telecommunications sector.

Conclusion

This Regulation is the most effective way to ensure that the requirement of Article 27 of the Law for telecommunications licence holders to allow interconnection to their networks is of benefit to the state and people of Lao PDR. They ensure that interconnection takes place on fair and non-discriminatory terms and that it meets all technical requirements necessary so that it improves outcomes for end users. They also ensure that access agreements cannot be used to circumvent the intent of the Law to promote competition in the telecommunications sector of Lao PDR.

Appendix D.1: Regulation on Telecommunications Competition

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Telecommunications Competition 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

Considering:

the powers conferred by Articles 4, 7, 36 and 46 of the Law on Telecommunications 2011 (Amended)

In view of:

1. the Law on Telecommunications (Amended)

2. the Commercial Competition Regulations of Lao People’s Democratic Republic

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON TELECOMMUNICATIONS COMPETITION 2013

CHAPTER 1

GENERAL PROVISION

Regulation 1

(1) The terms in this Regulation shall have the same meaning as prescribed in the Law on Telecommunications 2011 (Amended).

(2) In this Regulation, unless the context otherwise requires:

“Access and Interconnection Guidelines” means the Telecommunications Access and Interconnection Guidelines 2013.

“Customer” means in relation to a licensee, a person having a contractual relationship with the licensee for the provision of telecommunications services.

“General competition authority” means the Trade and Commerce Commission as created by the Decree on Trade Competition (2004) or any successor organisation as established by general competition law.

“General competition law” means the Decree on Trade Competition (2004) or any similar law or decree which is passed in Lao PDR.

“Law” means the Law on Telecommunication 2011 (Amended).

CHAPTER 2

OBJECTIVES, PRINCIPLES AND APPLICATION

Regulation 2

(1) This Regulation sets out the policy objectives for the promotion and regulation of competition within the telecommunications sector in Lao PDR.

Regulation 3

(1) This Regulation is intended to:

(a) promote the long term interest of users of telecommunications services in Lao PDR;

(b) promote and maintain fair and efficient market conduct and effective competition between licensees engaged in provisioning telecommunications networks and telecommunications services in Lao PDR;

(c) facilitate the development and efficient use of telecommunications network and telecommunications services which are innovative and of high quality in Lao PDR; and

(d) encourage, facilitate and promote investment in the development of telecommunications network and telecommunications services in Lao PDR.

(2) This Regulation is consistent with Article 4 of the Law which requires the Ministry to promote fair competition and efficiency in the operation of telecommunications and ICT services in Lao PDR.

Regulation 4

In regulating competition in the telecommunications sector in Lao PDR, the Ministry shall:

(1) take into consideration the following:

the Access and Interconnection Guidelines 2013;

the specific characteristics of certain telecommunications and ICT markets;

international best practice in telecommunications and ICT competition regulation;

the general competition law; and

(2) apply the following principles:

proportionality in the degree of regulatory intervention which is necessary or desirable;

technological neutrality;

primary reliance on market forces;

the pursuit of workable competition; and

equality of opportunity by all Lao PDR citizens to access telecommunications and ICT services.

Regulation 5

This Regulation shall apply to all licensees providing telecommunications network and telecommunications services in Lao PDR. The guidelines applies to both domestic and foreign legal entities and organizations involved in telecommunications in Lao PDR.

CHAPTER 3

ANTI-COMPETITIVE CONDUCT

Regulation 6

Regulations 7 to 12 set out the Ministry’s approach in defining “obstructing fair competition” as the key concept used in Article 36, sub-article 4 of the Law.

Regulation 7

In assessing whether conduct is anti-competitive, the Ministry shall firstly define the telecommunications market.

In defining the telecommunications market, the Ministry shall have regard to:

(a) generally agreed economic principles by reference to three key factors:

(i) product demand substitution;

(ii) product supply substitution; and

(iii) geography;

(b) time; and

(c) technological developments.

(3) In determining the product demand substitution in sub-regulation 2(a)(i), the Ministry shall consider how easily customers can substitute the products in question for those of a similar nature. This is also referred to as the cross-elasticity of substitution between products.

(4) In determining the product supply substitution in sub-regulation 2(a)(ii), the Ministry shall consider the ability of licensees not already providing the telecommunications network and telecommunications services in question to do so. This is also known as the cross-elasticity of supply.

(5) The geographic dimension in sub-paragraph 2(a)(iii) involves the identification of the area or areas over which a licensee and its competitors are able to compete, and to which customers can turn given sufficient price incentive.

(6) The time dimension in sub-paragraph 2(b) involves the identification of the period over which substitution possibilities should be considered.

(7) The technological developments in sub-section 2(c) involves the identification of future trends that may impact markets, market structures and market definitions which are particularly relevant in the telecommunications markets where technological developments are relatively dynamic and subject to change.

(8) Once the telecommunications market is defined under this Regulation 7, the Ministry shall assess the conduct that purports to have the purpose obstructing fair competition using the criteria in Regulations 8 – 11 below.

Regulation 8

(1) In defining conduct, the Ministry considers that:

(a) conduct in its broadest sense encompasses any or all commercial activity in which a licensee could engage including but not limited to:

(i) refusal to supply telecommunications network or telecommunications services to actual or potential competitors;

(ii) refusal to deal with, or restricting other licensees from dealing with, any person or classes of persons;

(iii) price discrimination and the giving of undue preference towards, or undue preference against, any persons or class of persons;

(iv) bundling of telecommunications network and telecommunications services which forces customers to purchase the bundle rather than just the telecommunications network and telecommunications service they need;

(v) predatory pricing whereby the charges for telecommunications network and telecommunications services are set below the production costs in the short term in order to eliminate competitors and increase long term profits;

(vi) parallel pricing whereby there is collusion between the competitors to vary charges for telecommunications network and telecommunications services in step;

(vii) excessive pricing and setting prices at a wholesale or retail level in a way that inhibits competition in downstream markets;

(viii) excessive discounting and pricing below a measure of cost in order to raise prices to a level which enables the losses from the original below-cost pricing to be recouped;

(ix) foreclosure whereby the customer is forced to enter into a long term supply arrangement with a particular licensee, therefore limiting competition in the telecommunications market;

(x) cross-subsidisation whereby the revenues from the provision of a network facility or network service are used to unfairly cross subsidise the price of other telecommunications network and telecommunications services;

(xi) unfair pricing of wholesale services whereby the prices for telecommunications network and telecommunications services are fixed at a level such that they cannot subsequently be re-sold profitably to end-customers;

(xii) improperly deterring new entry or restricting competition in the telecommunications market whereby false or misleading claims and information are made to other licensees or any third party as to the availability, price or quality of service provided by another licensee;

(xiii) Any conduct which is prohibited by the general competition law; and

(b) conduct means any action, or lack of action which either actually or potentially affects the level of competition in a telecommunications market.

(2) For the purpose of clarification, the examples of conduct in sub-regulation (1)(a) above do not, of themselves, necessarily result in a substantial lessening of competition.

Regulation 9

(1) In defining “purpose”, the Ministry shall apply broad principles including but not limited to:

(a) the nature of the conduct;

(b) the circumstances of the conduct; and

(c) the likely effect of the conduct.

(2) In determining sub-regulation (1)(a), the Authority shall consider inter alia the scope of the conduct that affects competitors in the telecommunications market.

(3) In determining sub-regulation (1)(b), the Ministry shall consider inter alia the process of decision making which led up to the conduct.

(4) In sub-regulation (1)(c), “likely” refers to “reasonable possibility” as opposed to “probability”.

(5) Where the conduct has more than one purpose, a licensee will be deemed to have engaged in conduct with a particular “purpose” if that purpose is or was a substantial purpose of the conduct.

Regulation 10

In defining “obstruct fair competition”, the Ministry shall find that ““obstruction of fair competition” occurs where, as a result of the conduct, it is possible for the firm engaging in that conduct to profitably charge more and/or give less than would have been the case absent the conduct.

Regulation 11

In defining “competition”, the Ministry shall have regard to the process whereby there is rivalry in a telecommunications market between:

(a) suppliers (“actual rivalry”); or

(b) potential suppliers (“potential rivalry”) –

in relation to the supply of certain telecommunications network and telecommunications services.

(2) The Ministry shall consider inter alia the following factors in determining actual rivalry in a communications market:

(a) the degree of market concentration;

(b) the number of independent suppliers;

(c) the extent of vertical integration with licensees in upstream and downstream markets;

(d) the level of product or service differentiation; and

(e) the nature and enforceability of any arrangements between licensees in the telecommunications market which restrict their independence of action.

(3) The Ministry shall consider inter alia the following factors in determining potential rivalry in a telecommunications market:

(a) the presence or absence of technology and market developments which lead or are likely to lead to substitutes; and

(b) the height of barriers to market entry and exit.

Regulation 12

(1) A licensee may, prior to engaging in any conduct which may be construed to have the purpose or effect of substantially lessening competition in a telecommunications market, apply to the Ministry for authorisation of the conduct.

(2) Notwithstanding any provision to the contrary in this Regulation, the Ministry shall authorise the conduct if the authorisation is in the national interest.

(3) The Ministry may require the licensee to submit an undertaking regarding his conduct before authorising the conduct.

(4) The licensee may withdraw an application made under sub-regulation (1) at any time.

CHAPTER 4

MERGERS AND ACQUISITIONS

Regulation 13

A licensee shall comply with the foreign investment restrictions as specified in the Law on Enterprises, the Law on the Promotion of Foreign Investment and other applicable laws in relation to a merger or acquisition involving a foreign party.

Regulation 14

(1) A licensee must not directly or indirectly acquire shares or assets in a corporation where the acquisition would have the effect, or likely effect of obstructing fair competition in a telecommunications market unless authorised by the Ministry in accordance with regulation 12, in conjunction with the Trade Competition Commission, so as to meet the requirements of the general competition law.

(2) Chapter 3 of this Regulation shall be applicable in defining “obstructing fair competition” as a key concept in this Chapter 4.

Regulation 15

The licensee who wishes to acquire the shares or assets in a corporation (“acquiring licensee”) shall notify the Ministry in advance of completing a merger or acquisition where:

(1) the merger or acquisition will result in the acquiring licensee and the target corporation (“collectively “merged parties”) with a post-merger market share of greater than twenty (20) per cent in the relevant telecommunications market; and

(2) the products of the merged parties are either substitutes or complementary in nature.

CHAPTER 5

INVESTIGATIONS, ENFORCEMENT AND REMEDIES

Regulation 16

(1) The Ministry shall, of its own volition or in response to a complaint or request by any person, investigate suspected breaches of Part IX of the Law by any licensee.

(2) The Ministry shall undertake its function under this Regulation 16 in a manner which is reasonable and transparent, having regard to the competition objects and principles set out in Regulations 3 and 4.

(3) The Ministry shall upon receipt of a complaint or request pursuant to sub-regulation (1):

(a) inform the licensee against whom the suspected breach is alleged (“suspected licensee”) that a complaint has been made, or that the grounds for a complaint have been satisfied and will be investigated;

(b) allow the suspected licensee, the complainant and any other person with a legitimate interest in the investigation, equal opportunity to present submissions on the alleged conduct and respond to the submissions made; and

(c) decline to commence or continue an investigation where the Ministry reasonably believes that the complaint against the suspected licensee is frivolous, vexatious or would be inconsistent with the objects and principles set out in Regulations 3 and 4.

(4) In deciding whether a conduct requires the Ministry to proceed to a full investigation of that conduct, the Ministry shall have regard to the following criteria which it will apply on a case-by-case basis:

(a) the likelihood that continuation of that conduct will encourage other licensees to engage in the same or similar conduct;

(b) whether the conduct has already ceased or not;

(c) whether any person has informed the Ministry of any loss or damage as a result of the conduct;

(d) whether the conduct is likely to have adverse impact on end-users and the market itself;

(e) whether the Ministry’s action would clarify the nature of the conduct;

(f) whether the costs of the Ministry ’s action would outweigh the benefits of the conduct; and

(g) the likelihood that another licensee might take its own action over the conduct.

(5) In determining whether a suspected licensee has engaged in or is engaging in a conduct in breach of Part IX of the law, the Ministry shall have regard to inter alia:

(a) Chapter 3 of this Regulation;

(b) the suspected licensee’s co-operation with the Ministry both in the past and in relation to the particular conduct in question;

(c) whether the conduct involves access to a new technology or leveraging of market power in a new and emerging market;

(d) where relevant, the suspected licensee’s previous conducts and the suspected licensee’s compliance with previous directions;

(e) where relevant, the suspected licensee’s ongoing conduct;

(f) whether the conduct in question has or is likely to have an adverse impact on consumers and the market itself in terms of the price and product offerings available to them; and

(g) such other matters as may be deemed relevant and applicable by the Ministry.

Regulation 17

(1) The Ministry shall use the following procedures in any process of enforcing compliant with or sanctioning breaches of Part IX of the Law by a licensee:

(a) the suspected licensee shall be notified that a finding of non-compliance has been made;

(b) the suspected licensee shall be given a reasonable opportunity to respond to the finding of non-compliance;

(c) following consideration of the suspected licensee’s response, the Ministry shall issue a notification (“competition notification”), setting out the Ministry ’s final views on the relevant conduct.

(2) The competition notification shall state the enforcement action which will be imposed by Ministry. Such enforcement action may include:

(a) a direction in accordance with the Law, requiring a licensee to cease conduct in that telecommunications market which has, or may have, the effect of substantially lessening competition in any telecommunications market; or

(b) a notification that a relevant licence shall be cancelled or suspended in accordance with Article 46 of the Law;

(c) a specific requirement to undertake remedial action; or

(d) a financial penalty up to the prescribed statutory maximum amount.

Regulation 18

In respect of Articles 12, 14, 16 and 17 above the Ministry will enter into an agreement with the general competition authority to avoid duplication of effort and regulation.1

Regulation 19

The Ministry or a person may seek an interim or interlocutory injunction against any conduct prohibited under Part IX.

CHAPTER 6

REVIEW AND SAVINGS

Regulation 20

This Regulation may be reviewed by the Ministry from time to time who may add to, vary or revoke any regulation after consultation with the licensees.

Regulation 21

In the event of any inconsistency between the provisions of this Regulation and provisions of the Law, or other relevant existing Laws, the provisions of the Laws shall prevail to the extent of the inconsistency.

CHAPTER 7

CLOSING PROVISION

Regulation 22

This Regulation shall come into force as from the date of promulgation.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

1 It is anticipated that the MPT will have primary jurisdiction in respect of activities which take place in the telecommunications market and that the MPT and the TCC will consult on broader competition issues in relation to telecommunications.

Appendix D.2: Explanatory memorandum for the regulation on telecommunications competition

EXPLANATORY MEMORANDUM FOR REGULATION ON TELECOMMUNICATIONS COMPETITION 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

EXPLANATORY MEMORANDUM

Introduction

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 for Lao PDR. The Regulation is designed to give effect to the provisions of the law, in particular Article 4, and subsection 4 of Article 36.

Policies, Objectives and Principles

Under Article 4 of the law it is the policy of Lao PDR to promote fair competition among telecommunication service providers in the provision and operation of telecommunication networks. Subsection 4 of Article 36 of the Law prohibits telecommunications operators from obstructing fair competition in this sector.

Chapter 2 of the Regulation sets out policies for the promotion and regulation of competition in the telecommunications sector of Lao PDR. These policies are intended to promote the long term interest of users of telecommunications services, to promote fair, efficient and effective competition between licensees, to facilitate investment in and the development of the sector, and to encourage the development of innovative telecommunications services in Lao PDR.

Regulation 4 sets out general competition principles for the telecommunications sector of Lao PDR, including the factors that the Ministry will take into account when regulating competition and the principles that the Ministry will apply when doing so. They call for a proportional approach to regulation, technology neutrality, reliance on market forces and equality of opportunity for the citizens of Lao PDR to access telecommunications services. It also states that the Regulation applies to any licensee providing telecommunications networks and services in Lao PDR.

Breaches of the Law

In order to determine whether conduct in breach of the law has occurred the Ministry first needs to define the market in which the conduct has taken place. Regulation 7 sets out the factors which will define a market, including the economic principles of product demand substitution, product supply substitution and geography, the role of time, and any technological developments which may change the nature of the market over time. It also gives guidance as to how these factors are to be applied.

Once the market has been defined the Ministry is able to determine whether particular actions are likely to unfairly obstruct competition in this market. In doing so the Ministry will consider whether the actions complained of constitute “conduct” for as defined by Regulation 8, whether the conduct, if any, has the purpose of obstructing competition, as defined by Regulation 9, whether competition is present in the market as defined by Regulation 11, and whether fair competition has been obstructed as defined by Regulation 10.

Regulation 12 of the Regulation allows licensees to engage in conduct which may be construed as having the effect or purpose of substantially lessening competition in a telecommunications market, provided they apply to the Ministry for authorisation of the conduct prior to its commencement. The Ministry shall authorise the conduct if it is in the national interest to do so, but may require the licensee to submit an undertaking in relation to the conduct before doing so. A licensee may withdraw such an application at any time.

Mergers and Acquisitions

In addition to regulating conduct which would obstruct fair competition, Chapter 4 allows the Ministry to regulate Mergers or Acquisitions which would have the effect of obstructing fair competition, in conjunction with the Trade Competition Commission or any successor organisation. Telecommunications licensees are prohibited from acquiring shares or assets in another entity where doing so would have this effect, unless they are authorised to do so by the Ministry in conjunction with the Trade Competition Commission.

In order to fulfil these provisions, Regulation 18 empowers the Ministry to enter into an agreement with the Trade Competition Commission to avoid duplication of effort and regulation. It is anticipated that the Ministry would have primary jurisdiction over matters relating to the telecommunications sector under such an agreement.

Investigation, Enforcement and Review

Under Regulation 16 the Ministry will investigate any suspected breaches of the prohibitions contained in the Law in a reasonable and transparent manner, and with regard to the aims and principles of competition mentioned above.

In investigating a suspected breach the Ministry will inform the suspected licensee that there has been a complaint, or that the grounds for a complaint have been satisfied and will be investigated. The licensee and any other party with a legitimate interest in the investigation will have an equal opportunity to present and respond to submissions about the conduct suspected to breach the law. The Ministry will decline to commence or continue any investigation which it reasonably believes is frivolous, vexatious or would be inconsistent with the principles and aims for competition.

The Regulation sets out the criteria by which the Ministry will determine whether a full investigation is warranted, and by which it will be determined if there has been a breach of the Law.

Regulation 17 provides that should a breach be found to have occurred the licensee will be notified that a finding on non-compliance with the Law has been made and shall be given a reasonable opportunity to respond to such a finding. Next, the Ministry will issue a final notification of its views on the conduct. The final notification will state the enforcement action to be taken by the Ministry, which may include a direction to cease conduct, suspension or cancellation of a license, a requirement to undertake remedial action, or a financial penalty in accordance with statute. In addition, Regulation 19 allows the Ministry or a person to seek an interim or interlocutory injunction against any conduct prohibited by the Law.

Under Regulation 20 the Regulation is subject to review and variation by the Ministry from time to time after consultation with licensees, in order to ensure they represent the best form of regulation for the telecommunications sector.

Conclusion

This Regulation is for the benefit of both consumers and operators in the Lao PDR telecommunications sector. They provide for the regulation of competition in the sector in a manner which is consistent with the aims, objects and articles of the Law in a way that will create consistency and fairness for all. By investigating and prohibiting acts, including mergers or acquisitions, which would obstruct or lessen competition, and by collaborating with the other relevant government organisations to do so, the Ministry will ensure that the telecommunications sector of Lao PDR is operated fairly and for the benefit of consumers, operators and the State.

Appendix E.1: Regulation on Resolution of Disputes by Administrative Procedure

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Resolution of Disputes by Administrative Procedure

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

 Part X, and specifically Article 41 of the Law on Telecommunications 2011(Amended)

 Law on Resolution of Economic Disputes 2010 (No. 06/NA)

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON RESOLUTION OF DISPUTES BY ADMINISTRATIVE PROCEDURE 2013

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications 2011 (Amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Dispute” means a dispute related to domestic telecommunications in and/or relating to Lao PDR.

“Decision” means a decision made by the Ministry of Posts and Telecommunications in accordance with this Regulation.

“Party” or “Parties” means the parties involved in the dispute and can be used interchangeably. Parties include both domestic and foreign individuals, natural persons as well as legal entities and organizations involved in the telecommunications sector in Lao PDR.

“Effective Date” means the date of signature of this Regulation by the Ministry unless another effective date is promulgated.

CHAPTER 2

OBJECTS

Regulation 2

(1) The object of this Regulation is to facilitate the resolution of any telecommunications related disputes by Administrative Procedure as provided for in Article 41 of the Law. The settlement by Administrative Procedure provides an alternative to filing an action in court and the other settlement of disputes mechanisms provided for in Part X of the Law.

(2) The settlement framework established under this Regulation shall be applied by the Ministry in a fair, timely and transparent way, applying to all licensees, relevant persons and entities (whether privately or Government owned or jointly owned) and allowing all parties to the dispute to make representations.

CHAPTER 3

SUBMISSION PROCEDURE

Regulation 3

(1) In accordance with Article 39 of the Law, parties may only refer the dispute to the Ministry of Posts and Telecommunications for resolution by administrative procedure after first acting in accordance with Article 40 of the Law by genuinely attempting to resolve the disputes between themselves, for a period of no less than ninety (90) days.

(2) If emergency circumstances require, the parties may request special leave from the Ministry of Posts and Telecommunications to have the dispute referred to the Ministry in less than ninety (90) days.

Regulation 4

To refer the dispute, a party or parties must lodge submissions in writing to the Ministry, stating the issues clearly and in detail, and provide supporting evidence if necessary.

Regulation 5

Within seven (7) days of the initial submissions seeking that a dispute be resolved by Administrative Procedures, all parties to the dispute will be notified by the Ministry and provided with thirty (30) days from the initial submission date to lodge a written submission (with an electronic copy in a format specified by the Ministry). These submissions must be duly lodged to the Ministry and the parties must also provide copies of their submissions to the other parties to the dispute.

Regulation 6

Parties have fifteen (15) days to review the opposing party’s submission – provided to them in Regulation 5 – and may respond to any issue contained in the other party’s submission to the Ministry in a further written submission.

Regulation 7

(1) Upon receipt of the submissions, the Ministry will then have up to thirty (30) days to decide the matter. If required, for example due to the complex nature of the issues, the Ministry may extend the time for its determination at its discretion by up to twenty-one (21) days by providing written notice to the parties to the dispute. In determining the matter, the Ministry may have regard to:

(a) The nature of the dispute;

(b) The Law, any regulations made in accordance with the Law and Government policy;

(c) The available evidence outlined in submissions of the parties, including any common agreement or stipulations made between the parties;

(d) The effect, including any hardship, the dispute has on the parties and any third parties including especially consumers;

(e) The attitude and conduct of the parties to the proceeding and/or any other party.

(f) The effect, including any hardship, any Ministry decision relating to remedies will have on the parties and any third parties; and

(f) Any international agreements, treaties or conventions to which Lao PDR is a signatory.

(2) In making a determination, the Ministry must have regard to the objects and principles of the Law and the Objects of this Regulation contained in Regulation 2. In particular, a decision of the Ministry must be delivered in a fair, timely and transparent manner.

(3) In the event that a party does not make a submission to the Ministry, then the Ministry may, but is not obligated, to determine the dispute in favour of the parties that make submissions on the dispute to the Ministry.

Regulation 8

(1) Upon arriving at a decision, the Ministry must notify the parties of the outcome and provide detailed reasons for the decision in writing.

(2) The Ministry may order one of the following remedies:

(a) Make a determination on the matter to settle the issue in dispute between the parties;

(b) A party pay compensatory damages to the other party or parties. Awards of compensatory damages to opposing parties may be offset against each other. The Ministry shall specify in writing in its determination any quantum or methods used to determine such damages. For the purposes of clarification, no party shall be liable for punitive damages;

(c) Specific performance of an agreement;

(d) Restrain a licensee from acting in a particular manner or

(e) Require a licensee to act in a particular manner.

CHAPTER 4

PROCEDURAL PRACTICES

Regulation 9

If necessary to further assess the veracity of submissions of the parties or to provide information on the issue in dispute, the Ministry may engage expert consultants and/or seek assistance from international organisations including the International Telecommunications Union (ITU).

Regulation 10

Notwithstanding Regulation 4, the Ministry may require one or more parties to provide further information or submissions relating to the initial submission as the Ministry deems reasonable and appropriate.

Regulation 11

In extraordinary circumstances, provided that the Ministry agrees, parties may make oral submissions to the Ministry providing further details relating to the dispute.

Regulation 12

(1) During the resolution of the dispute, parties must use reasonable endeavours and act in good faith to try to preserve the state of the contractual arrangement to the extent practicable. Parties should not cause undue harm to the other party during the resolution process. Such actions will be accounted for in any assessment of remedy

(2) Notwithstanding sub-regulation (1), the parties must use reasonable endeavours to mitigate their own losses.

Regulation 13

The parties should comply with their third parties confidentiality requirements. When a party finds it necessary to submit confidential third party information, it may request confidentiality in relation to any aspect of its submission and/or proceedings. If the effect of the confidentiality is that the opposing party is not entitled to view the confidential information and hence cannot make a full submission, such a claim of confidentiality shall be assessed by the Ministry. The Ministry shall have the right to determine whether the claimed confidentiality claimed is reasonable.

CHAPTER 5

APPEAL PROCEDURE

Regulation 14

Parties wishing to challenge the decision made under Regulation 7 may:

(1) Appeal to Economic Dispute Resolution Committee as provided for in Article 42 of the Law, in accordance with the appropriate laws and regulations, based on their common agreement; or

(2) If parties are unsatisfied with the results of the dispute settlement procedures made by the relevant organisation, which includes the Economic Dispute Resolution Committee, a party may sue the opposing party in the People’s Court, as provided for in Article 43 of the Law and in accordance with the laws and regulations.

CHAPTER 6

CLOSING PROVISION

Regulation 15

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix E.2: Explanatory memorandum for the regulation on resolution of disputes by administrative procedure

EXPLANATORY MEMORANDUM FOR THE REGULATION ON RESOLUTION OF DISPUTES BY ADMINISTRATIVE PROCEDURE TO BE ISSUED UNDER ARTICLE 41 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

Introduction

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 (amended) (“the Law”) for Lao PDR. It is designed to give effect to Article 41 of the Law.

Policy

The Ministry of Posts and Telecommunications (‘‘the Ministry’’) may make regulations governing the Resolution of Disputes by Administrative Procedure. This Regulation is outlined in Exhibit 1 below.

Regulations

Article 39 outlines the four (4) forms of dispute resolution:

1. Settlement by Bilateral Compromise;

2. Settlement by Administrative Procedures;

3. Settlement by the Economic Dispute Resolution Committee;

4. Filing an action in court.

To explain how these forms of dispute resolution interact, the parties must first try to resolve their disputes themselves by Bilateral Compromise before attempting to settle their dispute by administrative procedure.11 If parties are still unable to reach a compromise, they may attempt to settle the dispute by appealing to the Economic Dispute Resolution Committee or by filing an action in court. 22

Exhibit 1: Explanation of key Articles on Regulation on the Resolution of Disputes by Administrative Procedure

Regulation

Explanation/Rationale

(1) DEFINITIONS

Regulation 1

In particular, ‘Dispute’ is defined broadly to include a dispute related to domestic telecommunications in and/or relating to Laos, in accordance with Article 40 of the Law. Notably, disputes relating to foreign investment is governed separately.

(2) OBJECTS

Regulation 2

As the Law is designed to provide a number of dispute resolution alternatives, the types of matters that may be settled by Administrative Procedure – instead of filing an action in court – is not capped at any maximum value.

(3) SUBMISSION PROCEDURE

Regulation 3

This provision reinforces the requirement that parties first attempt to resolve a dispute between themselves, as required by Article 39 of the Law. To ensure that parties make a genuine effort, they must take at least 90 days to resolve the dispute. This is desirable as the inability to automatically have recourse to other dispute resolution mechanisms promotes the efficiency of the dispute resolution process.

If emergency circumstances require the dispute to be resolved by the Ministry in less than ninety (90) days, one or more parties may request the Ministry to hear the dispute in less than ninety (90) days. Whether the circumstances constitute an ‘emergency’ for the purposes of this Regulation is a matter to be decided by the Ministry, by reviewing the application.

Regulation 4

Submissions must be in writing, with sufficient detail, clarity and necessary evidence to enable the Ministry to make an informed decision.

Regulation 5

Parties must provide initial submissions to the Ministry that outlines the their intention to resolve a dispute by Administrative Procedure. The Ministry is allowed up to seven (7) days to notify the parties if they may do so. Parties must then lodge their submissions to the Ministry and copies to opposing parties.

The submissions must be lodged in accordance with any formats specified by the Ministry. These may include, for example, using both Adobe Acrobat and Microsoft Word formats.

Given the uncertainty that can exist in deciding when a dispute began, parties are allowed thirty (30) days from when an initial submission for review was placed. This should provide adequate time for parties to organise and distribute their written submissions.

Regulation 6

Parties have fifteen (15) days to view an opposing party’s submission; and

If a party chooses, they may respond to any issue brought up within the opposing party’s submission by making further submissions to the Ministry within the fifteen (15) days.

Regulation 7

After the forty-five (45) days required by Regulations 4 and 5, the Ministry may take up to thirty (30) days to determine the matter.

The Ministry has the discretion to extend the period of determination by up to twenty-one (21) days, if it considers this necessary. The Ministry must notify parties in writing. This may be necessary if, for example, more time is necessary to gather material information.

Given the overall length of the settlement process, a longer time period is not desirable. This is especially so given that parties are encouraged to preserve the state of affairs governed by the contract (as provided in Regulation 12).

The Ministry may take into account a non-exhaustive list of factors.

The failure of a party to make a submission does not automatically require, though still allows, the Ministry to make a decision in favour of the party that did make a submission.

Regulation 8

The Ministry must inform the parties of the outcome and give detailed reasoning.

The Ministry may order a wide range of remedies. Awards of compensation that parties have against each other may be offset and punitive damages are prohibited. An award for specific performance may include, for example, ordering a service provider to keep providing telecommunications services in accordance with a service agreement.

As outlined in Regulation 7, a Ministerial order should take into account the burden any order imposes on the parties or third parties as well as the requirements of fairness and transparency outlined in the Law and this Regulation.

(4) PROCEDURAL PRACTICES

This Chapter outlines the practises that the parties and the Ministry may engage in during the settlement procedure.

Regulation 9

If necessary to aid the Ministry in making an informed and accurate decision, the Ministry may use expert consultants or seek assistance from international organisations.

Regulation 10

Notwithstanding Regulation 4, and keeping in mind the need for a timely dispute resolution process, the Ministry may require one or more parties to provide more information to assist it in determining the dispute. This may occur any time while the Ministry is determining the dispute, within the thirty (30) day decision-making period or during an extension.

Regulation 11

To ensure procedural efficiency, oral submissions are only allowed in extraordinary circumstances. This may arise if, for example, it is necessary to accord one or more parties with procedural fairness as well as if new, material evidence comes to light and if time is of the essence.

Regulation 12

Parties must try to preserve the commercial affairs outlined by any agreements. For example, in a dispute over payment, a service provider should not terminate the service before the resolution of the dispute.

Favourable and unfavourable actions will be accounted for in assessing damages. The use of ‘reasonable’ endeavours limits the extent of the action required by the parties.

Regulation 13

Confidentiality is a priority. However, to prevent parties shielding relevant matters so that the opposing party is prevented from making a full submission, the Ministry alone shall determine the whether claims of confidentiality are necessary and reasonable. The Ministry may find that confidentiality relates to the whole, or part of information, or that there is no confidentiality.

(5) APPEAL PROCEDURE

Regulation 14

Parties may appeal a decision of the Ministry under this Regulation to the Economic Dispute Resolution Committee. Article 42 is a favourable addition to the Law as it allows parties to have recourse to an appeal process other than in court.

Article 43 of the Law also allows the parties to file an action in the People’s Court of Lao PDR.

(6) CLOSING PROVISION

Regulation 15

The Regulation comes into force from the date of promulgation unless otherwise provided for.

Conclusion

Through the authority given under the Law, the Ministry has the responsibility for making regulations governing the Resolution of Disputes by Administrative Procedure. This Regulation is in the best interest of consumers in Lao PDR and is an effective way of governing the resolution of disputes through allowing parties number of alternatives, rather than court action alone. This should ensure the proper and efficient administration of justice for the people of Lao PDR.

1 1 Detailed in Regulation 3 and Article 39 of the Law.

2 2 Detailed in Regulation 12.

Appendix F.1: Regulation on retail tariffing

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Regulation for Retail Tariffing 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

 Articles 12, 13 and 46(2) of the Law on Telecommunications 2011 (Amended)

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS FOR
RETAIL TARIFFING 2013

CHAPTER 1

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications 2011 (Amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Party“ or “Parties“ can be used interchangeably. A party includes all relevant domestic and/or foreign persons and entities (whether privately or Government owned or jointly owned) operating within the Telecommunications sector in Lao PDR.

“Short Term Promotion” or “Holiday Promotion“ must vary from the relevant retailer’s standard retail tariff and be recognised as a temporary price change. It must accord with Regulation 4.

“Effective Date” means the date of signature of this Regulation by the Ministry unless another effective date is promulgated.

CHAPTER 2

OBJECTS AND APPLICATION

Regulation 2

(1) The object of this Regulation is to outline how the Ministry governs the retail tariffs that licensees may charge within the Telecommunications sector, in accordance with Articles 1, 26 and 36, and provided by Article 42, of the Law.

(2) The retail tariff system established under this Regulation shall be applied by the Ministry in a fair, timely and transparent way, in accordance with Article 4 of the Law.

CHAPTER 3

OPERATION OF RETAIL TARIFFING

Regulation 3

(1) All licensees must lodge with the Ministry all tariffs they propose to charge for their products and services.

(2) A licensee intending to change their tariff must lodge a request with the Ministry and cannot otherwise increase, decrease or otherwise vary their tariffs until receiving the written approval of the Ministry, unless an exception referred to in Regulation 4 applies.

(3) The Ministry shall decide whether or not to approve the variation of a retail tariff in line with the Objects and provisions of the Law as well as this Regulation.

Regulation 4

(1) A licensee offering a short-term or holiday promotion is generally exempt from seeking the approval of the Ministry to vary their tariff, such as when the promotion:

(a) is of a short duration of no more than fourteen (14) days;

(b) does not require customers to commit to a contract of more than one (1) month.

(2) The Ministry, if it sees fit, retains the right to require a licensee offering promotion to lodge a request for approval.

CHAPTER 4

CLOSING PROVISION

Regulation 5

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix F.2: Explanatory memorandum for the regulation on retail tariffing

EXPLANATORY MEMORANDUM FOR THE REGULATION FOR RETAIL TARIFFING 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 (Amended) (“the Law”) for Lao PDR. It is designed to give effect to the Law, in particular Articles 26, 36, and 46.

Policy

Article 26 of the law states that all licensees must lodge their proposed tariffs for retail service offerings with the Ministry of Posts and Telecommunications and Article 36 states that they may not alter these tariffs without the approval of the Ministry. This policy gives certainty to retail consumers in Lao PDR and prevents licensees from unfairly taking advantage of developments or changes in the telecommunications sector of Lao PDR, or of their market power, at the expense of consumers.

Exceptions

It is consistent with the aims of Article 1 of the Law to allow licensees to offer short-term promotions or holiday promotions which are different to their registered tariffs. Such promotions may only be temporary so cannot form a retailer’s standard retail tariff. Where promotions are of a short duration (a maximum of fourteen (14) days), and do not require customers to commit to a contract of more than one (1) month duration, they should be permitted by the Ministry. It is likely that promotions which fulfil these criteria will benefit end users by allowing greater or cheaper access to services, and will not have the effect of allowing licensees to benefit at the expense of consumers by using promotions to lock them into long term contracts.

Conclusion

The Law requires licensees to lodge their proposed tariffs with the Ministry and for the Ministry to approve any changes to these tariffs. This policy, reflected in the Regulation is in the best interest of consumers in Lao PDR and is an effective way of preventing licensees with significant power from exploiting their position. However, short term or holiday promotions, which do not require a significant commitment from consumers are likely to be in consumers’ interests, and should be permitted without requiring the prior approval of the Ministry.

Appendix G.1: Regulation on numbering plan

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Regulation for Numbering Plan 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

 Articles 12, 13, 36(9) and 46(2) of the Law on Telecommunications 2011 (amended)

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS FOR THE NUMBERING PLAN 2013

CHAPTER 1

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications 2011 (amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Numbering Plan” means the Numbering Plan to be issued by the Ministry in assigning telephone numbers in Lao PDR, in accordance with this Regulation. A Numbering Plan may include, but is not limited to providing for:

(1) the allocation of area codes such as international, national and individual subscriber access codes in Lao PDR;

(2) the allocation process to individuals, entities, licensees and Government of specific numbers;

(3) special codes, identification codes of Networks, short codes, or emergency service codes; and

(4) the applicable charges for the allocation of numbers including but not limited to short codes.

“Licensee” refers to Type 1 and Type 2A Licensees, as defined within Part V of the Law.

“Party” or “Parties” can be used interchangeably. A party includes all relevant domestic and/or foreign persons and entities (whether privately or Government owned or jointly owned) in Lao PDR.

“Effective Date” means the date of signature of this Regulation by the Ministry unless another effective date is promulgated.

CHAPTER 2

OBJECTS AND APPLICATION

Regulation 2

(1) The object of this Regulation is to facilitate the establishment and operation of a Numbering Plan, as required by Article 12 and provided for in Article 42 of the Law. The Numbering Plan shall govern how the Ministry administers, allocates, assigns and revoke telephone numbers, internet numbers and internet domain names.

(2) The Numbering Plan established under this Regulation shall be applied by the Ministry in a fair, timely and transparent way, in accordance with Article 4 of the Law.

CHAPTER 3

ESTABLISHMENT OF THE NUMBERING PLAN

Regulation 3

(1) The Ministry will issue a draft NumberIng Plan in accordance with the Objects and provisions of the Law as well as this Regulation, after which there shall be a consultation period of ninety (90) days.

(2) During the consultation period all parties with a legitimate interest in the formulation of the plan shall be able to make submissions to the Ministry in response to the draft plan.

(3) The Ministry shall review all submitted submissions. The Ministry shall then make any amendments to the draft plan it believes beneficial, in light of the submissions.

(4) The Ministry shall then publish a final Numbering Plan which shall take effect fourteen (14) days after the Numbering Plan is published.

CHAPTER 4

OBLIGATIONS

Regulation 4

The Numbering Plan is binding on all licensees.

Regulation 5

Upon receiving an application for registration, the Ministry shall issue the telephone number, internet number or internet domain name, in accordance with the Numbering Plan.

CHAPTER 5

CLOSING PROVISION

Regulation 6

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix G.2: Explanatory memorandum for the regulation on numbering plan

EXPLANATORY MEMORANDUM FOR THE REGULATION FOR NUMBERING PLAN 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

Introduction

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 (Amended) (“the Law”) for Lao PDR. It is designed to give effect to Articles 12, 13 and 36(9) of the Law.

Policy

The Ministry of Posts and Telecommunications (“the Ministry”) will issue a Numbering Plan as contemplated by Article 12 of the Law and shall have responsibility for managing, enforcing and updating it. The Ministry will issue a draft Numbering Plan after which there shall be a consulting period of sixty (60) days. During this period all parties with a legitimate interest in the formulation of the plan shall be able to make submissions to the Ministry in response to the draft plan.

The Ministry shall review all submissions made and make any amendments to the draft plan it believes beneficial, in light of the submissions. The Ministry shall then publish a final Numbering Plan which shall take effect fourteen (14) days after it is published.

The Numbering Plan may, but is not required to include various elements, as detailed in the ‘Numbering Plan’ definition of this Regulation. Such elements include allocating of area codes, fixing or varying the number of digits of each number, or provide for different codes, such as emergency service codes.

Conclusion

The Law very clearly gives the Ministry the responsibility for implementing, enforcing and managing the numbering plan of Lao PDR. By undertaking a draft process and inviting comments and submissions from interested parties the Ministry will gain the benefit of additional views, interests and experience when preparing the plan, and the end result will likely be a Numbering Plan which offers the greatest benefit to Lao PDR.

Appendix H.1: Regulation on Universal Service and the Telecommunications Development Fund

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Regulation on Universal Service and the Telecommunications Development Fund 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In recognition:

 Of the importance of ensuring that the telecommunications sector of Lao PDR is developed effectively and for the benefit of all; and

 That some regions of Laos PDR are unserved or materially underserved in respect of telecommunications services and that, given that it is uneconomic for operators to provide services to these areas, this situation is otherwise likely to continue.

In view of:

 Articles 1, 4, 30 to 32, 46 and 47 of the Law on Telecommunications 2011 (Amended); and

 The Regulation of the Ministry of Posts and Telecommunications on Telecommunications Licensing 2013

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON UNIVERSAL SERVICE 2013

CHAPTER 1

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications 2011 (Amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Telecommunications Development Fund” or “TDF” shall be administered by the “TDF Administrator” which shall comprise of representatives of the Ministry of Finance of Lao PDR and the Ministry of Posts and Telecommunications of Lao PDR. The TDF shall be administered in accordance with Regulation 3.

“Party” or “Parties” can be used interchangeably. A party includes all relevant domestic and/or foreign persons and entities (whether privately or Government owned or jointly owned) operating within the Telecommunications sector in Lao PDR.

“Licensee” means the holder of a Type I, Type IIA or Type IIB telecommunications license as specified in Article 22 of the Law and the Regulations on Licensing 2013.

“Effective Date” means the date of signature of this Regulation by the Ministry unless another effective date is promulgated.

“Telecommunications Development Fund” means the fund established under Article 30 of the Law to contribute to the development of telecommunications services in Lao PDR to unserved or underserved areas.

“Capex” means expenditure on fixed or other long term assets which will remain assets beyond the end of the financial year. For example the purchase of base station switches and associated equipment.

“Opex” means ongoing operating expenses incurred in the operation of a business for example power and maintenance costs incurred in respect of a telecommunications towers and related equipment.

CHAPTER 2

OBJECTS AND APPLICATION

Regulation 2

(1) The object of this Regulation is to govern how the Ministry implements universal service measures to encourage telecommunications development by utilising the Telecommunications Development Fund, in accordance with articles 1, 4, 30 to 32, 46 and 47 of the Law.

(2) The Universal Service regime established under this Regulation shall be applied by the Ministry in a fair, timely and transparent way, in accordance with Article 4 of the Law.

(3) This Regulation will not interfere with competition issues that ordinarily arise between licensees operating nationwide and/or areas that are not uneconomic regions. Such issues shall be dealt with under the Law and other relevant Regulations.

CHAPTER 3

ESTABLISHMENT AND CONTRIBUTIONS

Regulation 3

(1) A Telecommunications Development Fund (“TDF”) shall be established in accordance with Article 30 of the Law and any other applicable law.

(2) The fund shall be administered by the [Ministry of the Department of Finance of Lao PDR and the Ministry of Posts and Telecommunications of Lao PDR to be known as the] TDF Administrator.11

(3) The [Ministry of Finance] TDF Administrator shall prepare an Annual Report on the operation of the fund, which shall be submitted to the government for review.

Regulation 4

Contributions to the fund shall be made from the sources specified in Article 31 of the Law. While the contributions from other sources may vary from time to time, contributions coming telecommunication operators shall be [X] % of its annual gross revenues.22

CHAPTER 4

DISBURSEMENTS FROM THE FUND

Regulation 5

(1) Funds shall be allocated by the [Ministry of Finance on the recommendation of the Ministry of Posts and Telecommunications] TDF Administrator.

Regulation 6

(1) The Ministry may determine that the provision of a specific licensed service to a specific area is a Specified Development Project.

(2) The Ministry may make such a determination where:

(i) The provision of a service is commercially unviable or is uneconomic;

(ii) The area to which the service would be provided is unserved or underserved;

(iii) The provision of such service would contribute to the development of the telecommunications sector of Lao PDR; and

(iv) An operator could complete the project within a reasonable time-frame with assistance from the fund.

(3) Where such a determination is made, the Ministry shall inform all relevant operators within 60 days.

(4) There shall be no minimum nor maximum size or scale of a Specified Development Project, but the allocation of projects shall be limited by the funds available.

(5) A Specified Development Project shall not be within Vientiane Province.

Regulation 7

(1) Funds shall be allocated to Licensees on the basis of competitive bidding for Specified Development Projects.

(2) Upon notification of the existence of a Specified Development Project a licensee may submit a bid to the Ministry, representing the amount of subsidy funding they would require in order to make the project commercially viable, within 60 days of receiving notification of the project, or such other period of time as is specified in the notification of the project, but which shall not be less than 60 days.

(3) Such bids may include both Capex and Opex components.

(4) Eligibility to bid shall not be restricted by any terms other than those contained in a Telecommunications License.

Regulation 8

(1) Once all bid submissions have been received the Ministry shall undertake an evaluation process to determine which bid represents the lowest total cost to the Telecommunications Development Fund required to meet the goals of the project, over the period of the project. This bid shall then be allocated the project subject to such contractual and roll-out commitments as the Ministry may reasonably require.

(2) Once notified by the Ministry of Posts and Telecommunications of the successful bid the Ministry of Finance shall allocate such funds from the Telecommunications Development Fund as specified in said bid. Such funds may be distributed over such time period and in such instalments as agreed between the Ministry of Posts and Telecommunications and the Licensee.

CHAPTER 5

OBLIGATIONS OF LICENSEES

Regulation 9

All Specified Development Projects shall be subject to the QoS requirements as set out in the Law or Regulations.

Regulation 10

(1) Licensees have obligations including, but not limited to:

(a) Honestly and accurately provide all relevant information relating to a bid for telecommunications development funds for the provision of universal service.

(b) Acknowledge that the value of their bid shall be the full and final total of any funding they shall receive in respect of the project.

(2) The Licensee shall be subject to Audit to ensure that these and any contractual obligations are met.

CHAPTER 6

CLOSING PROVISION

Regulation 11

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

1 1 These two Ministries, in making up the TDF Administrator, should consult with and form agreement with each other in administering the fund, with a decision being made by the Prime Minister of Lao PDR.

2 2 It is proposed that a figure of 1% of annual gross revenue is in line with regional benchmarks, but will be left for final determination by the Ministry.

Appendix H.2: Explanatory memorandum for the regulation on universal service and the telecommunications development fund

EXPLANATORY MEMORANDUM FOR REGULATION ON TELECOMMUNICATIONS DEVELOPMENT FUND 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 for Lao PDR. The regulation is designed to give effect to the law, in particular Articles 1, 4, 30 to 32, 46 and 47. It provides for the creation and management of a Telecommunications Development Fund as specified in the Law including processes for collection and disbursement of funds for telecommunications development projects.

Objects and Application

The aim of this regulation is to allow for the implementation and effective management of a Telecommunications Development Fund as specifically called for in Article 30 of the Law. Regulation 2 specifically requires these provisions to be administered in a fair and transparent way and without interference to ordinary competition in the telecommunications sector.

Management and Oversight

Regulation 3 provides that the Fund shall be administered by the TDF Administrator [Ministry of Finance] who shall be required to prepare annual reports on the state of the Fund for the government’s review.1

Collection and Allocation of Funds

Regulation 4 states that the sources of the Fund shall be those specified by Article 31 of the Law, specifically: the government budget, donations from international organisations, fees collected from licensees, fines imposed on licensees and revenues generated from administration fees.

Funds are to be allocated in accordance with Chapter 4. This provides that funds shall be allocated by the [Ministry of Finance on the recommendation of the Ministry of Posts and Telecommunications] TDF Administrator.

It also provides that funds will be allocated to a specific project which must otherwise be commercially unviable and must be in an area which is unserved or underserved in respect of telecommunications services and which may not be in Vientiane Province.

Regulations 7 and 8 provide that funds are to be allocated following a process of competitive bidding for specific projects and that the Ministry of Posts and Telecommunications is to evaluate these bids and recommend those which represent the lowest subsidy required needed to meet the goals of the project over the time period specified. They further provide that funds may be allocated in a staggered manner and that the Ministry of Posts and Telecommunications may require contractual and/or roll-out commitments from successful bidders.

Licensees’ Obligations

Chapter 5 requires licensees to ensure that any projects under the Fund meet any quality of service requirements as may be specified.

It also requires licensees to honestly and accurately provide all relevant information relating to a bid and to acknowledge that the value of their bid is the maximum possible allocation of funds they may receive. It also makes licensees subject to audit to ensure compliance with these provisions.

Conclusion

These regulations represent an effective and functional means of ensuring that the fund contemplated in the Law is established and operated to effectively promote the development of the telecommunications sector of Lao PDR. They provide a framework for licensees to expand network services into areas, which would otherwise be uneconomic or unviable to the benefit of all citizens of Lao PDR.

1 The Ministry of Finance and the Ministry of Posts and Telecommunications, in making up the TDF Administrator, should consult with and form agreement with each other in administering the fund, with a decision being made by the Prime Minister of Lao PDR

Appendix I.1: Regulation on Domestic Roaming Services for the Increased Provision of Universal Services

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Regulation on Domestic Roaming Services for the Increased Provision of Universal Services 2013 11

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In recognition:

 Of the importance in ensuring that those persons and entities in Laos PDR have access to telecommunications services; and

 That some regions of Laos PDR currently have no telecommunications service as it is unprofitable for operators to provide services to these areas, and it is unlikely that these regions will be provided with services in the short to medium; and

 telecommunications services to these otherwise un-serviced regions could be provided by a single operator nominated to provide services as agreed with the Ministry.

In view of:

 Articles 1, 4, 20, 28(1) and 46(2) of the Law on Telecommunications 2011 (Amended)

 The Regulation of the Ministry of Posts and Telecommunications on Telecommunications Competition 2013

 The Regulation for the Resolution of Disputes by Administrative Procedure 2013

DECIDES:

To stipulate: REGULATION OF MINISTRY OF POSTS AND TELECOMMUNICATIONS ON DOMESTIC MOBILE ROAMING SERVICES 2013

CHAPTER 1

DEFINITIONS

Regulation 1

(1) Terms in this Regulation shall have the same meaning given to them in the Law on Telecommunications 2011 (Amended) “the Law”.

(2) In addition to terms defined in the Telecommunications Law, the following terms shall have the following meanings in this Regulation:

“Ministry” means the Ministry of Posts and Telecommunications of Lao PDR.

“Party” or “Parties” can be used interchangeably. A party includes all relevant domestic and/or foreign persons and entities (whether privately or Government owned or jointly owned) operating within the Telecommunications sector in Lao PDR.

“Domestic mobile roaming service” means a service provided by visited network licensees to visitor network licensees in order to allow customers of visitor network licensees to have connectivity in areas where there is no home network coverage.

“Reference Mobile Roaming Service Offer” means an offer made by licensees to provide domestic mobile roaming services under terms and conditions as set out in this notification.

“Specified area” means an area specified by the Ministry for the purposes of this Regulation. Specified areas are those regions in which telecommunications services will not otherwise be provided because it is unprofitable for operators to provide such services.

“Assigned Licensee” means the licensee the Ministry assigns to provide services in a Specified Area to Visitor Licensees.

“Visitor Licensee” means the licensees who use the Assigned Licensee’s network to provide service to their customers in a Specified Area.

“Effective Date” means the date of signature of this Regulation by the Ministry unless another effective date is promulgated.

CHAPTER 2

OBJECTS AND APPLICATION

Regulation 2

(1) The object of this Regulation is to govern how the Ministry implements domestic roaming measures for service providers in Specified Areas, in accordance with Articles 1, 20, 27 and 28, and as provided by Article 42 of the Law.

(2) The Domestic Roaming regime established under this Regulation shall be applied by the Ministry in a fair, timely and transparent way, in accordance with Article 4 of the Law.

(3) This Regulation will not interfere with competition issues that ordinarily arise between service providers operating in profitable regions. Such issues shall be dealt with under the Law and other relevant Regulations.

CHAPTER 3

ASSIGNING SPECIFIED AREAS

Regulation 3

(1) The Ministry is responsible for determining Specified Areas for the purposes of this Regulation. The Ministry shall maintain an accurate registry of the Specified Areas.

(2) The Ministry shall assign one (1) licensee to each Specified Area as the primary service provider, and require that service provider to provide service to that Specified Area. The Ministry shall notify the assigned service provider in writing and, where possible, give the licensee reasonable notice of this requirement.

(3) The Ministry shall assign licensees to each area in line with specified criteria. The criteria shall address the objects and provisions of the Law and this Regulation.

(4) The Ministry will only make exceptions and not assign licenses on the grounds of non-interoperability because of different standards or technology.

CHAPTER 4

OBLIGATIONS OF ASSIGNED LICENSEES

Regulation 4

(1) A licensee must comply with an order by the Ministry under this Regulation to make it an Assigned Licensee of a Specified Area unless it is granted an exemption referred to in Regulation 6.

(2) The Assigned Licensee will then provide Reference Mobile Roaming Service Offers to Visitor Licensees under any terms and conditions as set out by the Ministry.

(3) A Reference Mobile Roaming Service Offer should be made available to the public, and a copy of the agreement of the Reference must be lodged with the Ministry within ninety (90) days after the start of negotiations between the licensees.

(4) The Reference Mobile Roaming Service Offer must include, but is not limited to, the following:

(a) Details on domestic mobile roaming services, quality of service, and criteria and conditions for providing domestic mobile roaming services including procedures and durations for negotiations;

(b) Procedures and processes for providing domestic mobile roaming services;

(c) The duties and responsibilities of both parties, including conditions on confidentiality, information disclosure and safety measures;

(d) Charges for domestic mobile roaming services; and

(e) Liabilities for the breach of contract.

(5) If no agreement can be reached between the licensees within ninety (90) days, the parties shall undergo the Dispute Resolution Process outlined in the Regulation for the Resolution of Disputes by Administrative Procedure 2013.

Regulation 5

(1) Assigned Licensees have obligations including, but not limited to:

(a) Accurately provide all necessary information to Visitor Licensees who request use of roaming services;

(b) Be honest and to negotiate and carry out all contracts with other licensees in good faith;

(c) Facilitate any other licensee’s ability to roam their mobile network and provide these services among Visitor Licensees on a fair, reasonable and non-discriminatory basis; and

(d) Refrain from any acts that lead to monopolisation, reduction or restriction of domestic mobile roaming services.

(2) Assigned Licensees shall guarantee that the quality of roaming services shall be no less than that received by their own customers and should comply with Quality of Service standards as prescribed by the Law.

Regulation 6

(1) A licensee may only refuse to provide domestic mobile roaming services in the following cases:

(a) The existing network capacity is insufficient for domestic mobile roaming services;

(b) Domestic mobile roaming services could result in technical problems that would cause interference or obstruction to the operator’s telecommunications business.

(2) Licensees who refuse to provide domestic mobile roaming services under subsection 2 must prove the grounds for such refusal to the Ministry.

CHAPTER 5

OBLIGATIONS OF VISITOR LICENSEES

Regulation 7

The name of an Assigned Licensee must be provided to users of Visitor Licensee’s network who are roaming.

Regulation 8

(1) Visitor Licensees have obligations including, but not limited to:

(a) Accurately provide all necessary information to Assigned Licensees for the provision of roaming services;

(b) Be honest and to negotiate and carry out all contracts with other licensees in good faith;

(c) not provide any other types of mobile services beyond mobile services available in their own network; and

(d) Refrain from any acts that lead to the reduction or restriction of domestic mobile roaming services.

(2) Visitor Licensees should not use information obtained from Assigned Licensees except for the purposes allowed by this Regulation.

CHAPTER 4

CLOSING PROVISION

Regulation 9

This Regulation shall come into force from the date of promulgation unless otherwise provided for.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

1 1 Subject to resolution of Universal Service Policy as the provision of services in an un-served areas would be a full or partial substitute for the payment of a Universal Services Levy.

Appendix I.2: Explanatory memorandum for the regulation on domestic roaming services for the increased provision of universal services

EXPLANATORY MEMORANDUM FOR THE REGULATION FOR DOMESTIC ROAMING FOR THE INCREASED PROVISION OF UNIVERSAL SERVICES 2013 TO BE ISSUED UNDER ARTICLE 46 OF THE LAW ON TELECOMMUNICATIONS (2011).

Final Draft

This Regulation has been prepared as part of the Implementing Rules and Regulations for the Law on Telecommunications 2011 (Amended) (“the Law”) for Lao PDR. It is designed to give effect to the Law, in particular Articles 1, 4, 20, 27, 28 and 46.

This Regulation recognises that some areas of Laos PDR have no service whatsoever as it is unprofitable for service providers to operate in these regions. This makes it likely that such regions will continue to be un-serviced. Therefore, this Regulation is established as the Ministry of Posts and Telecommunications (“the Ministry”) recognises the importance that technology plays in the lives of the people of Laos PDR.

Policy

This Regulation aims to carry out the objects and principles found in the Law, in recognising that the entire community of Laos PDR should have access to telecommunications services irrespective of whether users live in otherwise unprofitable regions. This Regulation therefore aims to provide service to areas where it would otherwise be unprofitable for licensees to operate.

In particular, Article 1 requires that telecommunications services providers should give widespread coverage, as well as being convenient and fair. Furthermore, Articles 27 and 28(1) recognises that Telecommunication Service Users shall have equality of access of telecommunications services. Article 4 in particular notes that people living in rural and remote areas should have access to telecommunication services with reasonable service charges.

This Regulation has tried to ensure the efficient use of resources in the Telecommunications sector, in accordance with Article 20 of the Law. Therefore, the Ministry shall require a single licensee (“Assigned Licensee”) to service each specified area, and this licensee is also required to let the other service providers, who will not otherwise have service (“Visitor Licensees’) to roam off this service. These measures mean that service providers expend the minimum resources necessary to ensure that the public receives nationwide coverage.

’The State promotes fair competition among licensees, in accordance with Article 4 of the Law. Therefore this Regulation distinguishes and does not apply to areas where one or more service providers already offers service. Otherwise, this Regulation would affect the fair competition between such operators. The limited application of this Regulation is reflected by the definition of ‘Specified Area’ in Regulation 1. A Specified Area is confined to the criterion found within the definition and is in no way meant to be nation-wide.

Assigning Specified Areas

As discussed above, the Ministry shall assign one (1) licensee to provide service for each Specified Area. The Ministry shall determine objective, specified criteria to ensure the fairness and transparency of the process for all. The criteria must include the objects and principles of the Law and this Regulation. In particular, any hardship to an assigned licensee should be considered, as well as the fairness to other licensees. The Regulation clearly allows for an exception for non-interoperability due to different standards or technology,

Obligations of Assigned Licensees

This Regulation specifies the process that Assigned Licensees must take when providing domestic roaming to Visitor Licensees. Regulation 4 specifies that Assigned Licensees must provide Visitor Licensees with Reference Mobile Roaming Service Offers unless an exemption applies.

To ensure the fairness, efficiency and transparency of this process, Assigned Licensees have a number of non-exhaustive obligations outlined in Regulation 5, to promote domestic roaming in specified areas. For example, an Assigned Licensee must act in good faith. These broad obligations mean that Assigned Licensees cannot, for example, provide inaccurate information or refuse to provide necessary information without reasonable grounds.

The Regulation allows a Licensee to be exempt from becoming an Assigned Licensee where it is beyond the existing network’s capability or where would negatively impact the Licensee’s business. This exemption has been made to ensure the quality of service a Licensee may provide to its customers and to ensure that licensees do not suffer unnecessary economic hardship.

Obligations of Visitor Licensees

As the purpose of this Regulation is to ensure that regions are given access to Telecommunications services that they would not otherwise have, Regulations 7 and 8 prevent Visitor Licensees from obtaining unnecessary advantages in providing their services and aim to limit competition issues arising. For example, Regulation 8 prohibits Visitor Licensees from using information obtained from Assigned Licensees except for the purpose of providing roaming to their customers.

Conclusion

In the interests with the objects and principles of the Law and relevant regulations, this Regulation is established in the best interest of consumers in Lao PDR. It provides an effective and efficient way of solving the problem of allowing everyone in Laos PRD access to Telecommunications services at fair and reasonable prices in a way that will not unduly burden Assigned Licensees.

Appendix J: Law on Telecommunications Implementing Rules and Regulations

LAW ON TELECOMMUNICATIONS 2011

Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

Implementing Rules and Regulations

Regulation of Ministry of Posts and Telecommunications

Number: PM. of 2013

On

Law on Telecommunications Implementing Rules and Regulations 2013

Peace Independent Democratic Unity Prosperity

Ministry of Posts and Telecommunications

In view of:

 the Law on Telecommunications 2011(amended), considering generally Article 46; and specifically Articles 4 5, 7, 19, 20, 21, 22, 26, 27, 36, and 41;

 Decree on Radio Frequency Management [to be promulgated];

 Decree on Trade Competition (2004);

 the Policy on Post and Telecommunication/ICT 2013 – 2016 [to be promulgated] of the Lao People’s Democratic Republic.

The following rules and regulations are issued in order to give effect to the Law on Telecommunications 2011(amended):

 Regulation for Telecommunications Licensing 2013;

 Regulation on Mobile Virtual Network Operators Service 2013;

 Regulation on Telecommunications Access and Interconnection 2013;

 Regulation on Telecommunications Competition 2013;

 Regulation on Resolution of Disputes by Administrative Procedure 2013;

 Regulation on Retail Tariffing 2013; and

 Regulation for the Numbering Plan 2013.

This Regulation shall come into force as from the date of promulgation.

Stipulated in Vientiane
on
MINISTRY OF POSTS AND TELECOMMUNICATIONS

Appendix K: Application for Telecommunications License

1. Licence type

(tick appropriate box)

Type I

Telecommunications network and service provider

Type IIA

Telecommunications service provider without their own network

Type IIB

Service provider, internet domain name registrar, internet access provider or value-added services provider

Type III

Consulting services provider, installation or repair services provider, export, import, manufacturing or distribution of telecommunication equipment

Type IV

Owner or operator of a private telecommunication network

2. Type of application

(tick appropriate box)

New Application

Licence Renewal Application

3. Details of Applicant

A) Name of Applicant and Company Registration Number (if applicable)

B) Contact Information

Address

Telephone number:

Facsimile number:

Alternate address

4. Does the Applicant currently hold a spectrum assignment or telecommunications network facilities? (please circle)

Yes / No

If yes, please provide details:

5. Does the Applicant currently hold any number or electronic addresses? (please circle)

Yes / No

If yes, please provide details:

6. Does the Applicant entered into any joint venture or consortia? (please circle)

Yes / No

If yes, please provide details:

7. If this application is a renewal, has the Applicant’s license ever been revoked or suspended? (please circle)

Yes / No

If yes, please provide details:

8. Has a receiver, or receiver and manager, been appointed in respect of any of the applicant’s assets? (please circle)

Yes / No

9. Has the Applicant entered into a compromise or arrangement with creditors? (please circle)

Yes / No

10. Has there been an application in the Courts for the winding up of the Applicant? (please circle)

Yes / No

11. Details of at least 2 persons who can be contacted for further information or correspondence regarding this application:

Name

Position

Telephone Number

Address

12. Any additional information considered relevant to this application:

13. Declaration

We, , the applicant, declare that we are eligible to apply for a licence under the Law and that all the information given in this application and in the attached annexes is true and accurate.

Date:

Signed by:

Sign here

Print Names)

Note: If the spaces provided are too small to provide any information, please attach annexes including it. Any annex should be signed by the signatory to this application.