Conditions for Ceasing Telecommunications Business Operations

Provisions on telecommunications business under the Law on Telecommunications 2023 took effect from 01/7/2024; accordingly, the conditions for ceasing telecommunications business are as follows:

1. Conditions for ceasing telecommunications business

Pursuant to Article 23 of the Law on Telecommunications 2023, the conditions for a telecommunications enterprise to cease its telecommunications business are as follows:

(i) A telecommunications enterprise may cease part or all of its telecommunications business only if it fully satisfies the following conditions:

– Has a plan to protect the lawful rights and interests of telecommunications service users under the concluded contracts for the provision and use of telecommunications services, and of the related parties.

– Has notified the Ministry of Science and Technology of the cessation of its telecommunications business.

(ii) A telecommunications enterprise holding essential facilities, a telecommunications enterprise or group of telecommunications enterprises holding a dominant market position in State-regulated telecommunications service markets, or an enterprise providing public-utility telecommunications services may cease part or all of the telecommunications services directly related to essential facilities, dominant-market telecommunications services, or public-utility telecommunications services only if it satisfies the following conditions and is approved in writing by the Ministry of Science and Technology:

– Has a plan to protect the lawful rights and interests of telecommunications service users under the concluded contracts for the provision and use of telecommunications services, and of the related parties.

– In case of ceasing business without terminating operations, it must ensure the provision of substitute telecommunications services to users, transfer users to the corresponding telecommunications services of another telecommunications enterprise, or agree on compensation with users.

– In case of ceasing business due to termination of operations, it must have measures to ensure the continued provision of telecommunications services to users under its reorganization plan or its bankruptcy or dissolution plan.

(iii) In case of ceasing service business at the request of a competent state agency due to the enterprise’s violation of law, the enterprise must have a plan to protect the lawful rights and interests of telecommunications service users under the concluded contracts for the provision and use of telecommunications services, and a plan to remedy the violation, and report in writing to the Ministry of Science and Technology.

Thus, compared to Article 27 of the Law on Telecommunications 2009, Article 23 of the Law on Telecommunications 2023 provides more detailed and clearer conditions for ceasing telecommunications business for telecommunications enterprises. In particular, it adds provisions on ceasing service business at the request of a competent state agency due to the enterprise’s violation of law.

2. Types of telecommunications business licenses

Pursuant to Clause 2, Article 33 of the Law on Telecommunications 2023, telecommunications business licenses include:

• (i) A license to provide network-based telecommunications services with a term of no more than 15 years, granted to enterprises providing network-based services.
• (ii) A license to provide non-network-based telecommunications services with a term of no more than 10 years, granted to enterprises providing non-network-based services.

3. Conditions for issuance of telecommunications business licenses

Pursuant to Article 36 of the Law on Telecommunications 2023, the conditions for issuance of telecommunications business licenses include:

• 3.1. Conditions for issuance of a license to provide radio-frequency-using network-based telecommunications services granted through auction, selection for radio frequency use rights, or re-issuance of a frequency band use license
  (i) Having an enterprise registration certificate or an investment registration certificate.
• (ii) Having minimum charter capital as prescribed by the Government.
• (iii) Not being in the process of dissolution or bankruptcy under a decision of a competent state agency.
• (iv) Having technical and business plans suitable for the information and communications infrastructure master plan, the provisions of the Law on Telecommunications 2023 on telecommunications resources, interconnection, service prices, standards and technical regulations, quality of telecommunications services, assurance of telecommunications infrastructure safety, protection of the lawful rights and interests of telecommunications service users, and other relevant laws.
• (v) Ensuring commitments to deploy telecommunications networks for the radio frequency bands or channels granted through auction or selection, or for the re-granted frequency bands.
• (vi) Having won the auction or selection for radio frequency use rights, or being eligible for re-issuance of a frequency band use license.

3.2. Conditions for issuance of a license to provide network-based telecommunications services, except for the case in Section 3.1 above, and a license to provide network-based telecommunications services in areas with special requirements as prescribed by the Government
– The conditions specified in clauses (i), (ii), (iii) and (iv) of Section 3.1 above.

– Conditions on telecommunications network deployment as prescribed by the Government.

3.3. Conditions for a license to provide non-network-based telecommunications services
A license to provide non-network-based telecommunications services (except for cases of service provision subject to the registration or notification procedures under Clauses 1 and 2, Article 41 of the Law on Telecommunications 2023) is granted to an enterprise when it fully satisfies the conditions specified in clauses (i), (iii) and (iv) of Section 3.1 above.