China has for the first time in 12 years issued a new edition of
the Telecommunications Services Catalogue to replace the badly
outdated 2003 version issued shortly after China's WTO
accession. The texts of the Catalogue and a helpful Q&A are
available here and here.
The new 2015 edition, issued by the Ministry of Industry and
Information Technology in its capacity as industry regulator on
December 28, 2015, is to enter into effect on March 1, 2016. The
Catalogue remains the basis for China's implementation of a
licensing system for telecommunications business in accordance with
the classification of telecommunications businesses under the
Telecommunications Regulations of the PRC (2014 rev.). It
constitutes an effort to modernize the classification system and
encourage private investment, but it is unclear to what extent
foreign investors will be allowed to participate more widely in
dynamic telecoms services.
Compared to the 2013 draft version, the 2015 edition makes several
revisions, including the further clarification of 'IP telephone
services'; the reclassification of 'internet resource
collaboration services' under the IDC subcategory instead of a
separate parallel subcategory; and removal of several detailed
descriptions or definitions under 'online data processing and
transaction processing services' as well as 'information
services' to more flexibly respond to rapidly expanding
e-commerce needs and provide other industry services now and in the
future.
In the Basic Telecommunications Services category, the two
categories of services, Category I (nationwide, broader service
with higher security protections) and Category II (less stringent,
more flexible), have been retained while subcategories for IP
telephone services, cellular mobile communication services,
Internet data transport services, and network access facility
services have been reclassified and segmented.
IP telephone services, a longtime industry spotlight, has been
redefined as telephone service jointly provided via fixed-line or
mobile networks and the Internet and removed from the fixed-line
communications category and separately listed as a new subcategory
further divided into domestic IP telephone services and
international IP telephone services. Voice services provided
entirely through the Internet has been reclassified as Information
Instant Interaction Services under Information Services, a
value-added category.
Subcategories under value-added telecommunications services
Category I and Category II have been reclassified and consolidated,
with Category I services defined as services based on facilities
and resources and Category II services defined as services based on
public application platforms. In addition, content distribution
network (CDN) services, code and protocol conversion services
(referring specifically to 'Domain name resolution
services' in the 2015 edition) have been clarified, and
Internet data center (IDC) services, call center services and
information services have been segmented.
With respect to fast-growing Internet-based multimedia video
service and Internet TV, CDN is a new network transmission
architecture that considerably improves the efficiency of content
and app services transmission such as Internet video transmission.
CDN is now separately listed with a defined scope of services in
the new edition to encourage entry by qualified and innovative
businesses in this sector.
The new edition adds 'Internet resource collaboration
services' within IDC services under value-added telecoms
services Category I. With the rapid development of cloud computing
and other technologies, new types of services based on data center
facilities and conducted through the Internet have emerged to bring
about flexible resources configuration, sharing and collaboration.
Addition of these services is intended to better adapt to market
development trends.
Information Services, the most dynamic sector developed in the past
decade, is also a key area for market regulation. The existing
classification by network technology no longer meets the needs of
market development so the new edition, based on the form of
services and the technological characteristics in organization and
delivery of information services, expands and divides information
services into 1) information release platforms and delivery
service, 2) information search and query service, 3) information
community service, 4) information instant interaction service, and
5) information protection and processing service.
Outmoded telegraphic services, analog trunking communication
services and wireless data transport services have been removed
from the new edition. The new edition paves the way for broader
private investment in basic telecoms services, including allowing
cellular mobile communications services provided by means of
resale, and network hosting services to be managed like value-added
services. As stated earlier, however, it is unclear to what extent
foreign investors willbenefit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.