Macau overhauls telecoms law with unlimited operator licences

A new Telecommunications Law, set to replace the 20-year-old legislation, has been approved by the Executive Council (ExCo) for legislative review, introducing two technology-neutral licences – network and service – with no limit on the number of operators.

The proposed Telecommunications Law, unveiled by ExCo spokesman, Secretary for Administration and Justice Wong Sio Chak, will replace the current tender-based market access system with an application-based regime and introduce “technology-neutral licences.” The legislation, he explained at a press conference, sets out the legal framework for the deployment and operation of public networks and telecom services, but excludes broadcasting and satellite television services, which are governed by separate laws.

“The bill is designed to foster a more flexible operating environment, encourage competition, broaden service options, support the digital economy, and boost Macau’s regional competitiveness,” Wong said, adding that two licence categories – network and service – would be established under the new framework.

Under the proposed framework, network licence holders will be permitted to install, manage, and operate public telecommunications networks, and to offer fixed or mobile services directly linked to their network operations – including wholesale local and international telecommunications services and network resource leasing – with licences valid for a maximum of 15 years. Service licence holders, meanwhile, will be authorised to provide fixed or mobile services to end users, encompassing voice, data, video transmission, internet access, data centre and value-added services, as well as acting as agents for telecommunications services from other jurisdictions, with licences valid for up to eight years.

Notably, the bill combines ex-ante and ex-post regulation to curb market dominance and impose obligations on dominant players, while introducing technology-neutral licences with no cap on operators. Fines will be adjusted, and aggravated penalties introduced to stop ongoing violations.

The Macao Post and Telecommunications Bureau (CTT) has said that underground pipeline networks will in future be built by a joint venture company, while existing passive infrastructure will be required to be opened for shared use, thereby lowering construction costs for new market entrants. The bill also explicitly provides that the Chief Executive may, through an evaluation mechanism, designate service providers to deliver universal services, covering in particular basic voice and emergency call services, fixed-line directory and enquiry services, public telephone booth services, and internet access services.