Printable version

CONCESSION AGREEMENT
- revision -

public telecommunications service
19. 10. 99

CHAPTER 1
BASIC PROVISIONS

Clause One
Purpose of the Concession

The Territory of Macao (hereinafter referred to as “Territory” or “Grantor”) grants the exclusive right to operate the following public telecommunications services, and install all telecommunications systems and equipment required for that purpose as set forth in this Agreement, to Companhia de Telecomunicações de Macau, S.A.R.L (hereinafter referred to as “CTM” or “Concessionaire”):

1. Local: The fixed telephone service, telegram service, fixed telex service, fixed service for data transmission and rental circuit services.
2. International: The fixed telephone service, telegram service and fixed telex service provide that they involve call addressing and be established in real time, fixed service for data transmission and rental circuit Services.
3. Transit: The fixed telephone service, the telex service, telegram service and fixed service for data transmission.

Clause One - A
Definitions

For the purposes of the provisions of this Agreement, the expressions hereunder shall have the following meaning:

1. Access/interconnection - connection between the CTM Telecommunications Network and the telecommunications network of other operators of public telecommunications services.
2. Concessionaire or CTM - Companhia de Telecomunicações de Macau.
3. Governor or Government — Up to 19 December 1999 the Governor of Macau, and after this date the Executive Chief or the Government of “Região Administrativa Especial de Macau”.
4. Telecommunications Infrastructure or Telecommunications Network - all the physical or electromagnetic means that carry the transmission, reception or broadcasting of signals.
5. Macau, Territory or Grantor - Up to 19 December 1999 the Territory of Macau, entity of public law (“pessoa colectiva de direito público”) and after this date the Government of the “Região Administrativa Especial de Macau” (Special Administrative Region of Macao).
6. Rented Circuit Service - offer for transmission capacity from the telecommunications network, in transparent mode, of temporary or permanent nature.
7. Switching Fixed Service for data transmission - offer for addressed data, with origin and destination at the terminal points of the telecommunications network, enabling any user to utilise the equipment connected to its terminal point to communicate with another terminal point.
8. Fixed Telephone Service or Voice Telephony - offer for addressed voice carrying in real time, with origin and destination at the terminal points of the telecommunications network, enabling any user to utilise the equipment connected to its terminal point to communicate with another terminal point.
9. Fixed Telex Service - offer for addressed telex messages carrying, with origin and destination at the terminal points of the telecommunications network, in conformity with the relevant recommendations of ITU, namely, Recommendation F.60, and using the international alphabet no. 2 of Recommendation S. 1, and transmission at 50 Baud, enabling any user to utilise the equipment of his terminal point to communicate with another terminal point.
10. International Service - means where either the originating or terminating points are within the Territory.

12. Local Service - means where both the originating and terminating points are within the Territory.
13. Telecommunications Service of public use - those provided by the operators for public use in general - users - or other operators - either in a direct way through its own systems, or in an indirect way through the interconnection to other operators systems.
14. Telegram Service - offer for a service of reception, transmission, reproduction and delivery to the messages’ addressee, in conformity with the relevant recommendations of ITU.
15. Transit Service - means where both the originating and terminating points are outside the Territory but where part of the telecommunications infrastructure to deliver these services is within the Territory.
16. Telecommunications - any kind of treatment, broadcasting or reception of signals, in writing, pictures, sound, or information of any kind, by means of wires, radio-electrical, optical or other electromagnetic systems.

Clause One - B
Competitive Services

One. Without any further formalities CTM shall keep the right to operate on a competitive basis those Public Telecommunications Services which is already operating on the date the Agreement in hand is executed. The Government of the Territory shall grant CTM the relevant licenses in accordance with the legislation in force at the time.

Two. Furthermore CTM shall be granted the right to bid for or otherwise to apply for the granting of licenses or permits for any new Public Telecommunications Services, on the same terms as those applied to any other interested party.

Three As regards the operation of services on a competitive basis, CTM shall be treated on the same grounds as any other authorised operator and be subject to the legislation in force at the time.

Clause One - C
Access to CTM Network

One. Subject to the other provisions of this clause, CTM shall not in any way refuse, discriminate or render more difficult to another operator of the public telecommunications service, of the competitive regime, the access/interconnection to its telecommunications network

Two. In consideration for the access/interconnection to its telecommunications network, CTM shall be entitled to receive a fee from the other operators of public telecommunications services under the terms of Clause Twenty-Five hereof.

Three. CTM can only be requested to fulfil its obligation to establish the access/interconnection to its telecommunications network once the value of the fee referred to in the previous number and technical compatibility have been established.

Clause Two
Life of the Concession

One. The Concession shall terminate on 31st December 2011 unless any of the termination clauses set forth in Clause Two - A occurs. The Territory and CTM shall proceed to a revision of the present Agreement in the fifth year prior to the end of the life of the Concession, and its conditions shall be agreed by the parties.

Two. At the end of the lift of the Concession, CTM shall transfer to the Territory the whole of the facilities involved in the franchised services free of any charges, encumbrances and liabilities. The facilities shall be transferred in good operating and maintenance conditions, ensuring that the service can still be provided without any loss in quality.

Three. CTM’s net tangible assets, which pursuant to Clause Thirty-Five must be totally depreciated by the end of the life of the Concession, shall revert to the Territory free of cost.

Four. The Agreement in hand may be amended at any time by mutual agreement of both parties.

Clause Two - A
Termination of the Concession

The Concession shall terminate:

1. At the end of the life of the Concession;
2. By mutual agreement between the Territory and CTM;
3. In case of redemption;
4. Due to public interest;
5. Due to default.

Clause Three
Redemption of the Concession

One. The Territory shall be entitled to redeem the Concession in the fifth year prior to the end of the life of the Concession, for such purpose having to inform the Concessionaire of its intentions with one year’s prior nonce.

Two. In the event of this right being exercised, the universal whole of the establishment assigned to the operation of the services on an exclusive basis shall revert to the Territory, free from any charges, encumbrance or liability, and in such operating and upkeep conditions that will enable the continuity of the services in good working order, against a certain consideration to be determined by the addition of the following values:

1. net tangible fixed assets and non-obsolete stocks, reported to the values of the latest balance sheet approved by the General Meeting and by the Governor;
2. a compensation equal to two point five times the average annual profit before taxes resulting of the activities developed on an exclusive basis, settled in the three latest annual balance sheet before the notice of redemption.
   

Clause Three - A-
Termination due to Public Interest

One. The Territory may terminate the Concession unilaterally at any time whenever the public interest so recommend, regardless of whether CTM has violated any of its obligations.

Two. Should the Concession be terminated as provided for in item one above. CTM shall be entitled to a compensation. The amount of this compensation shall be calculated according to the terms established in item two of Clause Three above.

Clause Four
Deleted

Clause Five
Duties of CTM

One. In accordance with the Agreement in hand, CTM shall undertake to provide public telecommunications services, which fully meet the Territory’s needs. The telecommunications network supporting it must incorporate state-of-the-sit systems providing these have been properly tested; be designed and sized to meet promptly the demand at any location within the Territory; and assure a good quality and safe service.

Two. Within the scope of the Concession granted to CTM and as long as the Governor so requires, CTM shall, pursuant to this Agreement, provide those public telecommunications services provided in territories within the region with characteristics similar to those in Macao.

Clause Six
Public Use of Services

Except for the restrictions laid down in the legislation in force or in future legislation, CTM shall not refuse to provide any services to any person or entity as provided for in this Agreement, as long as the relevant service applicant meets the requirements as laid down in the legal provisions and regulations in force.

Clause Seven
Inviolability and Confidentiality of Telecommunications

One. CTM shall undertake to take all the measures required to ensure that all communications under its responsibility are kept inviolable and confidential pursuant to the legislation in force in the Territory.

Two. The confidentiality referred to above covers professional secrecy and all of CTM's staff and managerial members shall in no circumstances disclose the identity of the applicant or addressee, and the contents of the communications they become aware of in the course of their duties. Furthermore the said confidentiality shall prevent staff from disclosing to third parties any information related to them.

Clause Eight
Governing Legislation

One. CTM shall undertake to comply with the legislation in force in the Territory as well as any international treaties, conventions, agreements and regulations on telecommunications to which the Territory is bound irrespective of the name they shall be referred to.

Two. CTM’s advice shall be sought prior to publishing new legislation on telecommunications in the Territory.

Three. (Deleted)

Clause Nine
CTM's rights

One. CTM shall enjoy all rights granted by the governing legislation and those awarded to Macau General Post and Telecommunications Authority (hereinafter referred to as CTT) at the time of the execution of the Agreement in hand in respect of the provision of cables, lines and other telecommunications equipment. namely in what concerns the use of public areas, the setting up of servitudes, the expropriation based on public interest, the setting up of protection areas and the right of access to private land or buildings.

Two. Upon request submitted by CTM, the Governor shall ensure that the rights referred to above can be exercised.

Back to index