Gov’t extends CTM concession for two years with option for early exit

The government has agreed with local telecommunications service provider CTM to extend its concession contract for another two years, until September 30, 2027.

The director of the Macao Post and Telecommunications Bureau (CTT), Derby Lau, announced the arrangements during yesterday’s press conference at the CTT headquarters.

As she noted, since the Public Telecommunications Service Concession Contract is set to expire on September 30, the government has decided to approve a new extension to the current contract in line with the promotion of the development of the sector that aims to expand the number of providers and increase competition beyond the current monopoly held by CTM.

Lau noted that the new concession contract extension differs from previous ones, “introducing new provisions that state that the assets and investments covered in Articles 5 to 7 of the contract will be integrated into the Macau SAR’s assets upon the expiration of the concession contract.”

The new short-term extension contract also stipulates that the assets and investments will be formally integrated into the MSAR’s assets starting October 1, 2025, a measure that she said aims to strengthen the MSAR government’s control over the concession contract.

Another difference is related to the duration of the contract, which adopts the form of “one-year fixed contract, one-year living contract,” which allows the government to terminate it at any point in the second year by notifying CTM 60 days in advance of the termination date.

Lau also remarked that to ensure the principles of “fairness, transparency, and user pays,” the government has improved the existing concession duct-sharing mechanism, stipulating that part of the concession duct space will be free for other qualified telecommunications operators.

As a license holder, CTM must pay for any use of the space exceeding the free portion under the same conditions offered to other market players.
Qualified telecommunications operators may submit applications to use these assets starting January 1, 2026.

She remarked that with these measures, the government hopes that all operators will benefit and, ultimately, pass on the benefits to their customers via a more competitive range of services and pricing.

At the same press conference, Vandy Poon, CEO and chairman of the Executive Committee of CTM, said, “We will continue to fulfill our promises by introducing new technologies, protecting Macau’s network, and providing quality services to Macau residents. Since 2021, the MSAR government and CTM have signed contract extensions four times. I have seen that the government has been determined to reform telecommunications throughout this time, and I am becoming increasingly confident.”

“Today is a new beginning for CTM. In the future, we have many new tasks ahead of us, and with the guidance of the CTT, we will move forward with these tasks. With our cooperation, I believe we will create better conditions for the market and the telecommunications sector,” Poon added.

The CEO of the local telecom provider also added that CTM’s current structure results from the efforts of several generations of workers, whom we have been encouraging to work hard and serve the population.

Price reductions are part of the deal

As part of the new conditions for the concession contract extension, the government has urged CTM to implement price reductions for individuals and small and medium-sized enterprises, covering a variety of services, including commercial landline, broadband, and leased-line services.

The CTT director also remarked that the government has been advancing legislative work on amendments to the Telecommunications Law, which will set the rules for the final opening of the market.

Still, this work seems to be at an early stage, with Lau stating that more industry consultations are needed to adjust the draft law’s provisions, taking into account some recent developments in the industry.

In addition to the industry consultations, the CTT will also promote two information sessions next week, which will provide an introduction to the new law’s content and collect feedback.

In this sense, the Fixed Public Telecommunications Network Licenses will also be renewed until September 30, 2027.

Questioned by the media on the topic of the price reductions, Poon stated that these might not reach everyone, as that is not the company’s intention. Instead, the company wants to provide a wider range of options and choices so that users can choose and adjust their service packages better according to their needs.

“We can’t guarantee that all users will benefit from this [price reduction] or that they will get a very cheap service, but we are working to benefit as many as possible,” Poon said.

He also announced that details on the matter would soon be unveiled at a different press conference by CTM.

A new public entity might manage concession assets

The media asked who would be responsible for managing the concession assets, and Lau remarked that there is no final decision yet.
Still, she noted that one of the most likely possibilities is the creation of a new public entity that will manage and ensure the proper use of all the assets shared among the operators that might join the local telecom market.