Despacho do Chefe do Executivo n.º 4/2012 (ANNEX)

Specific regulation for the public tendering of the
licence of installation and operation of the fixed public telecommunications network in the Macao Special Administrative Region of the People’s Republic of China telecommunications of public use in the Macao Special Administrative Region of the People's Republic of China

 

Section 1 – Introduction

1.1 In response to the development and full liberalization of Macao telecommunications market, the Government of the Macao Special Administrative Region (MSAR) considers that it is the appropriate moment to issue the licences for the installation and operation of the fixed public telecommunications network (licences hereafter), for the purpose of attracting more investment, increasing the construction of the local public telecommunications network and the provision of related services.

1.2 The fixed public telecommunications network refers to the telecommunications network composed by cables, optical fiber, radio or other electromagnetic systems, which links local fixed points within MSAR or between local and foreign fixed points, and also supports public telecommunications services.

1.3 Considering the actual situation and the market demand of the local telecommunications market, the Government of MSAR will issue two licences through this public tender. The licensed entities may provide bandwidth to the duly authorized telecommunication operators in MSAR or foreign places, and provide local and international leased line services and data center services.

1.4 Definitions of the technical terms used in this regulation refer to the relevant documentations of International Telecommunications Union (ITU hereafter).

1.5 This regulation intends to provide the information and explain the procedures to be observed for licence tendering applications, therefore, to follow the rules mentioned in this regulation does not, in any case, bind the Government of MSAR to grant any licence.

 

Section 2 – Applicable legislations

2.1 Followings are the legislations to be considered in preparing proposals:

Decreto-Lei n.º 18/83/M Legal Regime of Radiocommunications
Decreto-Lei n.º 48/86/M Administrative Regime of Radiocommunications
Decreto-Lei n.º 33/95/M Update of the Decreto-Lei n.º 48/86/M
Lei n.º 14/2001 Telecommunications Basic Law
Regulamento Administrativo n.º 41/2004 Regime on the interconnection of the public telecommunication networks
Regulamento Administrativo n.º 5/2006 Organization and functioning of the Bureau of Telecommunications Regulation
Regulamento Administrativo n.º 16/2010 Approval of the General Taxes and Fines Table for Radio Services
Regulamento Administrativo n.º 41/2011 Regime of installation and operation of the fixed public telecommunications network

 

2.2 The major concession contracts and licences related to installation and operation of the fixed public telecommunications network are as follows:

Midterm Review of Concession Agreement of the Public Telecommunications Service celebrated with Companhia de Telecomunicações de Macau, S.A.R.L
Concession contract of the terrestrial subscription TV service celebrated with TV Cabo Macau, SARL
Despacho do Chefe do Executivo n.º 157/2002 and
Despacho do Chefe do Executivo n.º 399/2008
In accordance with the terms and conditions stipulated in Licence no. 1/2002, Companhia de Telecomunicações de Macau, S.A.R.L. is authorized to install and operate a public telecommunications network and to provide services of land mobile telecommunications of public use
Despacho do Chefe do Executivo n.º 158/2002 and
Despacho do Chefe do Executivo n.º 400/2008
In accordance with the terms and conditions stipulated in Licence no. 2/2002, Hutchison Telephone (Macau) Company Limited is authorized to install and operate a public telecommunications network and to provide services of land mobile telecommunications of public use
Despacho do Chefe do Executivo n.º 159/2002 and
Despacho do Chefe do Executivo n.º 401/2008 and
Despacho do Chefe do Executivo n.º 423/2009
In accordance with the terms and conditions stipulated in Licence no. 3/2002, Smartone - Mobile Communications (Macau), Limited is authorized to install and operate a public telecommunications network and to provide services of land mobile telecommunications of public use
Despacho do Secretário para os Transporte e Obras Públicas n.º 96/2002 and
Despacho do Secretário para os Transporte e Obras Públicas n.º 49/2010
In accordance with the terms and conditions stipulated in Authorisation of Virtual Mobile Operator no. 1/2002, Kong Seng Paging Limited to provide services of land mobile telecommunications of public use, without its own public telecommunications network and frequencies (Virtual Mobile Operator)
Despacho do Chefe do Executivo n.º 171/2007 In accordance with the terms and conditions stipulated in Licence no. 1/2007, Companhia de Telecomunicações de Macau, S.A.R.L. is authorized to install and operate a WCDMA public land mobile telecommunications network and provide corresponding public land mobile telecommunications services of public use
Despacho do Chefe do Executivo n.º 172/2007 In accordance with the terms and conditions stipulated in Licence no. 2/2007, Hutchison Telephone (Macau) Company Limited is authorized to install and operate a WCDMA public land mobile telecommunications network and provide corresponding public land mobile telecommunications services of public use
Despacho do Chefe do Executivo n.º 173/2007 and
Despacho do Chefe do Executivo n.º 12/2009
In accordance with the terms and conditions stipulated in Licence no. 3/2007, China Telecom (Macau) Company Limited is authorized to install and operate a CDMA2000 1X EV-DO public land mobile telecommunications network and provide corresponding public land mobile telecommunications services of public use
Despacho do Chefe do Executivo n.º 350/2009 In accordance with the terms and conditions stipulated in Licence no. 1/2009, Smartone – “Mobile Communications (Macau), Limited is authorized to install and operate a WCDMA public land mobile telecommunications network and provide corresponding public land mobile telecommunications services of public use

 

Section 3 – Applicants

3.1 The commercial corporations or consortia, established or to be established, can participate in the tendering.

3.2 When the shareholders of the tendering corporations or members of the tendering consortia are also corporations or consortia, they should have been established, and they should present the document of proof of the commercial registry from the Commerce and Movable Property Registry in Macao; if the corporations or consortia are established outside MSAR, the copy of the foreign registration, duly certified by notary, should be presented.

3.3 The concessionaire of Macao public telecommunications services and their shareholders cannot directly or indirectly participate in this tender.

3.4 Applicants should possess adequate financial capability and technical capability relevant to the construction of network.

3.5 For the proof of meeting the requirements mentioned in the previous point, applicants should submit the past financial statements with relevant audit results and should demonstrate the experience in installing and operating telecommunications network.

3.6 Applicants, when submitting the proposals, are not allowed to be shareholders of or have any other interest in any other applicants.

 

Section 4 – Composition of the proposals, method and timeframe for submitting the proposals

4.1 Proposals should be submitted in triplicate with the label of “Tender for installation and operation of the fixed public telecommunications network”, written in the official languages of MSAR or in English, opaquely covered and wax-sealed, and must be delivered to the address shown below before 5 o' clock in the afternoon of 27th March 2012, and the acknowledgement of receipt could be obtained:

Bureau of Telecommunications Regulation
789-795, Avenida da Praia Grande, 1/F,
Macao Special Administrative Region

4.2 The proposal should include the following documentations:

1) A declaration of presentation in tendering which contains the identification of the tendering company, the main office address, the identification of directors and others with power to obligate the applicants to fulfil the obligations;

2) Documents proving the conformance of the requirements mentioned in points 3.1 and 3.2;

3) Documents which prove the submission of the provisional guarantee.

4.3 Applicants may request for clarification of any doubts with respect to the clauses of this regulation or regarding the objective of this tendering process before 8th February, 2012.

4.4 If request for clarification is needed, the application should be made in writing and sent to the address shown in point 4.1 above, soliciting a proof of receipt, or sent by registered mail with acknowledgement of receipt to the same address or sent by fax to the number +853 28356328.

4.5 Clarifications will be provided by the Bureau of Telecommunications Regulation not later than 24th February, 2012.

4.6 Clarifications provided must be given to the other applicants no later than the date mentioned in previous point.

4.7 In designing the network and preparing the proposal, the applicants should refer to the following requirements:

1) Transmission system of the fixed public telecommunications network should be based on cable system, but where technologically infeasible, with the approval of the Bureau of Telecommunications Regulation, the system can be supplemented by other wireless system;

2) Underground ducts must be used in the installation of the cable system mentioned in previous item;

3) The network system mentioned in item 1, should be constructed by the operator itself, in case where the construction cannot be done within a reasonable timeframe or where no substitutes by other technologies are viable, with sufficient justification, together with the authorization from the licensing entity, applicants can construct the network together with other licensed entities, or request facility sharing from other fixed public telecommunications network operator, including basic telecommunications network operator;

4) The system must have backup power for support;

5) The system must support IPv6;

6) The system must reserve bandwidth for the simultaneous transmission of 150 Mbps television signals free of charge and 300 Mbps television signals on cost basis, to the access points of telecommunications facilities within the buildings;

7) The system capacity and expandable capacity should be stated explicitly;

8) Network design and configuration including international gateways, switching systems, transmission systems, network management systems, routing plan, underground ducts, and wireless systems, if any, should be submitted, together with the planned location of related facilities, technical details and list of equipments;

9) The organizational structure of the applicant and the estimation of local job opportunities to be created should be included in the proposal;

10) The operational plan for the first year and for the first 5 years should be submitted;

11) An investment plan with consideration of the timeframe stated in item 18 should be submitted;

12) In the investment plan, the cost of network interconnection with other fixed public telecommunications network operators, including basic telecommunications network operator, and mobile telecommunications network operators, together with the cost of facilities sharing should be considered;

13) The billing and operation supporting systems, including the customer services, should be described in details;

14) Types of services to be offered should be clearly indicated;

15) Tariff proposal of the proposed services with sufficient and reasonable justifications should be included in the proposal;

16) Items stated in the proposals should be based on facts after thorough studies and extensive independent market survey;

17) The potential social and economic benefits to be brought about by the investment plan to the MSAR should be described by the applicant;

18) A system construction plan, the network coverage of which should respectively reach 30% of total residential buildings at the beginning of operations, 70% in the following two years, and 99% in another two years followed, in Macao Peninsula, Taipa and Coloane, should be submitted;

19) The network coverage of the system construction plan submitted by the applicant, apart from reaching the coverage stated in previous item, it must also reach all schools under non-tertiary educational regime and tertiary educational institutions, within the first two years after the beginning of operations;

20) The timetable of planned initial network operations and provision of related services;

21) An executive summary summarizing the essential of the proposal should be included;

4.8 The proposal may contain any other information that the applicants consider important for evaluating their proposals.

4.9 The proposal should be signed by the person or persons with power to bind the applicant, and whose signature is recognized by the notary.

4.10 The validity period of the proposal is 240 days, counting from the date stated in point 4.1.

Section 5 – Tender Commission

5.1 Tender Commission must be established before the date stated in point 4.1;

5.2 It is the competence of the Tender Commission to analyze and decide all matters related to the public tender, with the exception of tender award.

Section 6 – Opening of the proposals

6.1 All proposals submitted in accordance with the related provisions before the deadline will be opened in the Bureau of Telecommunications Regulation at 3 o’clock in the afternoon of 28th March 2012.

6.2 Representatives of applicants, duly authorized by the applicant, may attend the session of opening of the proposals.

6.3 The Government of MSAR reserves the right not to disclose the names of shareholders or members of the applicants.

6.4 Applicants will not be accepted under the following situations:

1) Any document stated in point 4.2 is missing;

2) The submitted documents are not written in the official language of MSAR or in English;

3) Failure to submit the proposals before the date and time stated in point 4.1;

4) The applicants, whose documents exist the omission in inessential procedures, may be admitted conditionally, but the applicants should supplement the related omissions within the time set by the Tender Commission, otherwise the admission will be invalid.

Section 7 – Evaluation of the proposals

7.1 The evaluation will follow immediately after the opening of the proposals.

7.2 For the purpose of proposal evaluation, when considering necessary, the Government of MSAR may request the applicants to provide supplementary information or explanations on the submitted information.

7.3 Proposals will be evaluated by the Bureau of Telecommunications Regulation, taking into consideration of the content of the proposal, the requested information, and the situations and criteria listed in the following point of this session, yet not excluding the adoption of other evaluation criteria pertinent to the interest of MSAR.

7.4 In evaluation of the proposals, the following situations and criteria will be considered with priority in selection:

1) Applicants, or shareholders or members who possess 51% or more of the company’s capital, have relevant experience in the telecommunications industry; especially the international experience in installing and operating related networks;

2) The commitment of providing systems with state-of-the-art and sophisticated capability;

3) Investment commitment and financial position;

4) Technical aspects with regard to the proposed network infrastructure;

5) Implementation plan for achieving the proposed coverage of the areas and regions, especially the proportion of cable network built on its own using underground ducts and the network capability of providing fiber-to-the-home;

6) Quality of service to be offered and system performance standards;

7) Expertise in managerial and technical aspects of the corporation;

8) Tariff of the proposed services to be offered, including retail and wholesale prices;

9) Training programs and facilities to be provided to local personnel;

10) Economic and social benefits are to be brought about to MSAR, including the percentage of local recruitment;

7.5 Before the licence is being granted, the successful candidate should conform to the requirements stipulated in items 1 and 2 of Article 5 of the Regulamento Administrativo n.º 41/2011.

Section 8 – Final decision

8.1 The licensing decision should be made within the timeframe stipulated in no. 5 and 6 of Article 4 of the Regulamento Administrativo n.º 41/2011.

8.2 With regard to the licensing decision, the Bureau of Telecommunications Regulation should notify all the applicants by registered mail with acknowledgement of receipt.

Section 9 – Guarantees

9.1 To ensure the assumption of responsibilities bound when submitting the proposals and the fulfillment of inherent obligations in the tendering process, applicants should provide a provisional guarantee in favour of the Government of MSAR, in the amount of two hundred thousand patacas.

9.2 Pursuant to the stipulations in Article 6 of the Regulamento Administrativo n.º 41/2011, the applicant who is awarded the licence is obliged to provide a guarantee in favour of the Government of MSAR, in the amount of two million patacas.

9.3 The guarantees should be provided in the form of bank guarantee or performance bond, in regime of first demand, issued by banks or insurance companies operating in MSAR.

9.4 After the validity period of the proposals or in case the issuance of the licence is before the expiry of the validity period, the other applicants can request the return of the bank guarantee or performance bond.

9.5 If the proposals submitted by the applicants are not admitted, applicants also have the right to request the return of the guarantee or performance bond.

9.6 All the expenses resulting from providing or withdrawing the guarantees shall be borne by the applicants.

9.7 If the applicant or the licensed entity, by any reasons, gives up the tendering or the licence by its own will, the guarantee that it provides will be reverted to the Government of MSAR, except where the justifications cited by the applicant or the licensed entity are accepted in writing by the Government of MSAR.

Section 10 – Issuance of licence

10.1 Pursuant to the stipulations in no. 2 of Article 3 of the Regulamento Administrativo n.º 41/2011, the validity period of the licence is until 31/12/2021.

Section 11 – Other terms and conditions to be complied by the licensed entitiy

11.1 The licensed entity should comply with the provisions in the related documents of International Telecommunications Union (ITU), in particular with the provisions stipulated in the "Constitution and Convention" and the "Radio Regulations" of ITU, and the recommendations and reports of the Telecommunication Standardization Sector (ITU-T) and the Radiocommunication Sector (ITU-R) of ITU.

11.2 If the licensed entity changes the technical specifications of the system unilaterally within the validity period of the licence, the Government of MSAR has the right to revoke its licence.

11.3 The licensed entity should start providing its commercial services within a period of eighteen months, counting from the date of the issuance of licence.

11.4 Prior to the provision of commercial services to the public, the licensed entity is not authorized to transfer the licence to a third party.

11.5 If the licensed entity, by any reasons, decides not to proceed with its project, the Government of MSAR has the right to issue the respective licence to one of the unsuccessful applicants, before the expiry of the period stated in point 4.10 of this regulation.

11.6 The licensed entity is subject to the payment to the Government of MSAR, a licence issuance fee in the amount of five hundred thousand patacas, and a royalty equal to 5% of the total operating revenue, resulting from the provision of services within the scope of the licensed activities.

11.7 The payment stated in point 11.6 does not exempt the licensed entity from the obligation of payment of any other fees or taxes, including the radio spectrum usage fees.

11.8 The licensed entity has the responsibility to provide good quality services to its customers in compliance with the generally accepted service quality and system performance standards.

11.9 The licence grants to the licensed entity all the rights and obligations related to the services indicated in this regulation, and the rights and obligations stipulated in the Regulamento Administrativo n.º41/2011. The special conditions stipulated in the proposal will be considered as extra terms and conditions.

11.10 The licensed entity must indemnify any damage that MSAR suffers in consequence of the activities carried out by the licensed entity related to the provision of services or the installation, maintenance and operation of the network.

11.11 The licensed entity should cooperate with the public departments of MSAR when, according to their competence, impose specific requirements or rules on the network built or to be built by the licensed entity.


NOTE: Should there be any discrepancy noted between this English translation and the published Chinese and Portuguese texts of the Regulation as annexed to the Despacho do Chefe do Executivo n.º 4/2012, the latter two versions will prevail.