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Legal Document
Title: Decision on Approval of Internet Service Business Operation No. 2530/MPT, dated 22 September 2015
Type: Decision
Responsible Agency: Ministry of Posts and Telecommunications
Issuing Date: 2015-09-22
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Decision on Approval of Internet Service Business Operation

Chapter 1: General Provisions

Article 1          Objectives

Article 2          Approval of Internet Service Business Operation

Article 3          Definitions

Article 4          Basic Principles in Operating Internet Service Businesses

Article 5          Scope of Application

Chapter 2: Internet Service Business Operation

Article 6          Request for Approval to operate Internet Service Businesses

Article 7          Conditions for License Issuance

Article 8          Duration for License Issuance

Chapter 3: Types and Duration of Validity of Licenses for Internet Service Business Operation

Article 9          Types of License for Internet Service Business Operation

Article 10        Duration of Validity of a License for Internet Service Business Operation

Article 11        Extension of a License for Internet Service Business Operation

Article 12        Change, Suspension, or Termination

Article 13        Scope of a License for Internet Service Business Operation

Chapter 4: Technical Standards and Safety

Article 14        Technical Standards and Safety

Chapter 5: Management and Inspection of Internet Services

Article 15        Management and inspection authorities for Internet services

Article 16        Rights and duties of the Ministry of Post and Telecommunications

Article 17        Rights and duties of Provincial/Vientiane Capital Post and Telecommunications Divisions

Article 18        Rights and obligations of Internet service providers

Article 19        Rights and obligations of Internet service users

Chapter 6: Service Fees and Charges

Article 20        Service fees and charges

Chapter 7: Measures against Violators

Article 21        Fine Measures

Article 22        License Suspension and Withdrawal Measures

Chapter 8: Final Provisions

Article 23        Implementation

Article 24        Effectiveness

Appendix

Appendix A

Appendix B

Appendix C


Lao People’s Democratic Republic

Peace Independence Democracy Unity Prosperity

  Ministry of    No.: 2530/MPT.
Post and Telecommunications  Vientiane Capital, 22 September 2015

                                                                                                                      

Decision

on Approval of Internet Service Business Operation

- Pursuant to the Law on Telecommunications (amended) No. 09/NA, dated December 21, 2011;

- Pursuant to the Law on Investment Promotion No. 02/NA, dated July 08, 2009;

- Pursuant to the Prime Minister’s Decree No. 303/PM, dated September 26, 2011 on the Organization and Operation of the Ministry of Post and Telecommunications.

The Minister of Post and Telecommunications hereby issues a Decision:

Chapter 1

General Provisions

 

Article 1          Objectives

This Decision defines principles, regulations, and measures regarding the monitoring, inspection, and management of permission for Internet service business operation aiming to ensure genuine and legal provision of Internet services. This Decision also aims at promoting the use of quality, convenient, quick, and safe Internet services to contribute to national socio-economic development.

Article 2          Approval of Internet Service Business Operation

Permission fo Internet service business operation refers to a license issued by the post and telecommunications sector allowing individuals and legal entities to operate Internet service businesses to provide Internet services to individuals, legal entities, and organizations.

Article 3          Definitions

Terms used in this Decision have the following definitions:

  1. Internet service refers to any type of telecommunications service allowing users to access the Internet via a wired or wireless connection;
  2. Internet service provider (ISP) refers to an authorized person who provides Internet services;
  3. Internet user refers to any individual, legal entity, or organization who uses an Internet service provided by an ISP or at an Internet café.
  4. Wired connection refers to any connection system using cables to transmit signals, such as dial-up, xDSL, FTTX, cable TV, and so on;
  5. Wireless connection refers to any connection system using radio waves to transmit signals, namely WiMAX, Wi-Fi, satellite, 3G/4G/5G, and so on;
  6. Types of service refer to services that an ISP provides to Internet users, for instance xDSL, FTTX, Wi-Fi, hosting, e-mail, IPTV, and so on.

Article 4          Basic Principles in Operating Internet Service Businesses

Internet service business operation shall comply with the following basic principles:

  1. Ensure equality of Internet service nationwide;
  2. Ensure the expansion of the Internet network nationwide;
  3. Ensure the effective and practical utilization of resources in the area of telecommunications;
  4. Meet technical standards for connecting with both domestic and international Internet networks to ensure high efficiency, speed, and quality;
  5. Ensure benefits for Internet providers and users;
  6. Ensure all networks are integrated into a single Internet gateway.

Article 5          Scope of Application

This Decision applies to both domestic and foreign individuals or legal entities that provide or use Internet services in the Lao PDR.

Chapter 2

Internet Service Business Operation

Article 6          Request for Approval to operate Internet Service Businesses

Individuals or legal entities who intend to operate an Internet service business must request permission from the post and telecommunications sector by submitting a request form along with other relevant documents as required by the sector. The requesters must also comply with conditions and measures as defined in this Decision and other relevant laws.

Article 7          Conditions for License Issuance

Below are the conditions for issuing a license for Internet service business operation:

  1. Requesters must submit a request form, economic analysis, technical analysis, and other documents as required by the post and telecommunications sector (see appendix);
  2. Have sufficient numbers of experts based on the type and scope of service;
  3. If it is necessary to use resources in the area of telecommunications and/or to build a telecommunications network, requesters must have permission from the post and telecommunications sector;
  4. A license cannot be issued during a period of property seizure, insolvency, or bankruptcy by court judgment under the laws of the Lao PDR;
  5. Requesters must comply with the stated conditions of the post and telecommunications sector.

Article 8          Duration for License Issuance

Management and monitoring authorities for Internet services will consider issuing a license based on the following durations:

- License type 1 – within 30 official days

- License type 2 – within 20 official days

- License type 3 – within 15 official days

Chapter 3

Types and Duration of Validity of Licenses for Internet Service Business Operation

Article 9          Types of License for Internet Service Business Operation

There are 3 types of license for Internet service business operation:

License type 1:            for ISPs who have their own network and are capable of providing service nationwide;

License type 2:            for ISPs who have or do not have their own network and are capable of providing service within a provincial/Vientiane Capital area;

License type 3:            for ISPs who have or do not have their own network and are capable of providing service within a district area.

Article 10        Duration of Validity of a License for Internet Service Business Operation

The duration of validity of a license for Internet service business operation is divided into two phases as follows:

  1. Phase 1: a temporary license with each type valid for one year;
  2. Phase 2: a complete license which is valid for each type as follows:

- License type 1: valid for five years;

- License type 2: valid for three years;

- License type 3: valid for two years.

Article 11        Extension of a License for Internet Service Business Operation

  1. Conditions for an Extension

Those who request an extension of their Internet service business operation license must submit a request form at least 30 days prior to the expiration date of the license. They also have to comply with the following conditions:

- Submit complete documents as required by the post and telecommunications sector (see the appendix);

If resources in the area of telecommunications are used, there must be a receipt for usage payment;

Those with a temporary license who fail to achieve their first year plan are only able to request one extension of that temporary license;

Those with a temporary license will be considered and upgraded to a complete license only if they are able to achieve at least 60% of their first year plan.

  1. Duration for Consideration

Duration for consideration will vary depending on the type of license:

- License type 1: within 20 official days.

- License type 2: within 15 official days.

- License type 3: within 10 official days.

If requesters submit incomplete or incorrect applications or do not meet the criteria to request permission, management and inspection authorities will not consider issuing or extending a license for them.

Management and inspection authorities for Internet services will state their reasons for declining in writing within 10 official days.

Article 12        Change, Suspension, or Termination

Internet service business operators who intend to change, suspend, or terminate a license for their services are required to have permission from the post and telecommunications sector. The operators must submit a request in writing explaining the reasons for doing so.

Article 13        Scope of a License for Internet Service Business Operation

Legal entities who are permitted to operate Internet service businesses can provide a service within the area and of the type as defined in their license.

Internet service providers can choose types of service a, b, or c as defined in the appendixes.

Chapter 4

Technical Standards and Safety

Article 14        Technical Standards and Safety

Technical standards and safety in Internet services consist of the following:

  1. Technical Standards

a. Location

- An Internet service center must be located in a permitted area.

- An Internet control room, server room, offices, and other rooms shall ensure safety for the electrical system by equipping it with a cooling system, fire protection, and other necessary systems based on the technical standards of the post and telecommunications sector.

b. Internet Connection

- License type 1: the Internet can only be connected through the National Internet Center.

- License type 2: the Internet can only be connected through the National Internet Center or an ISP type 1 network.

- License type 3: the Internet can only be connected through the National Internet Center or an ISP type 1 or type 2 network.

c. Network System

- A diagram of the overall network, a diagram of hardware installations, and details of the hardware and software must be included in a technical analysis.

d. Hardware

- Hardware imported from foreign countries to be used for Internet services must be approved by the post and telecommunications sector.

- Hardware used in Internet service systems must be inspected and certified by the post and telecommunications sector to ensure standardization.

- Hardware must be regularly maintained and repaired to guarantee its efficient function. Backup hardware must be available to avoid any interruption of service.

e. Keeping a Record of usage History

- There must be a device to keep a record and save information regarding Internet service usage for up to three months, such as a Log file, CDR file, and so on, based on the instruction of the management and inspection authorities for Internet services.

2. Safety Standards

- Must ensure that all information regarding service users is safe from being damaged, changed, or stolen.

- Must have a well-functioning backup system to protect against data loss from fire, flood, and other forms of natural disaster.

- Must have a data screening and security system to prevent users from accessing any website and information resources that could have an adverse impact upon national defense, public security, society, and culture.

- Must ensure that an Internet service is not a place that can be used to destroy or damage others.

Chapter 5

Management and Inspection of Internet Services

Article 15        Management and inspection authorities for Internet services

Management and inspection authorities for Internet services consist of:

- The Ministry of Post and Telecommunications;

- Provincial/Vientiane Capital Post and Telecommunications Divisions.

Article 16        Rights and duties of the Ministry of Post and Telecommunications

The Ministry of Post and Telecommunications has the following rights and duties:

             Scope of rights:

- Consider the approval, extension, change, suspension, and withdrawal of a license for Internet service;

- Monitor and inspect the implementation of conditions, standards, and regulations of this Decision;

- Warn, educate, or fine individuals and legal entities who breach this Decision and other relevant laws;

- Exercise other rights as defined in relevant laws;

Duties

- Consider how to solve problems related to Internet services, such as service quality, technical standards, and service charges;

- Collect service fees and charges in issuing licenses for Internet services and other charges as defined in relevant laws;

- Implement other duties as defined in relevant laws.

Article 17        Rights and duties of Provincial/Vientiane Capital Post and Telecommunications Divisions

Provincial/Vientiane Capital Post and Telecommunications Divisions have the following rights and duties:

Scope of rights:

- Consider the issuance, extension, change, suspension, and withdrawal of a license for Internet service based on the regulations of the Ministry of Post and Telecommunications;

- Monitor and inspect the implementation of conditions, standards, and regulations of this Decision;

- Warn, educate, or fine individuals and legal entities that violate this Decision;

- Exercise other rights as defined in relevant laws.

Duties:

- Consider how to solve problems related to Internet services, such as service equality, technical standards, and service charges based on their scope of responsibility;

- Collect service fees and charges in issuing licenses for Internet services;

- Exercise other rights as defined in relevant laws.

Article 18        Rights and obligations of Internet service providers

Internet service providers have the following rights and obligations:

           Scope of rights:

- Propose the extension, suspension, or termination of their business operation;

- Suspend Internet service based on the terms of their contract;

- Exercise other rights as defined in relevant laws.

Obligations:

- Cooperate with officials of the post and telecommunications sector, including those from the monitoring and inspection area;

- Allow other Internet service providers to rent their network as appropriate;

- Contribute to national defense and public security by reporting any information seen as a danger to national and social security;

- Comply with Internet connection regulations as defined in Article 14 of this Decision;

- Supply complete and correct information and provide Internet connection contracts to the post and telecommunications sector;

- Keep the information of service users confidential and safe except when there is an instruction from relevant authorities;

- Regularly supply information related to services to users;

- Ensure quality service and fair prices as defined in relevant laws;

- Solve technical problems and difficulties for users based on relevant regulations;

- Regularly report on their Internet service, such as the utilization of telecommunications, technical, and security resources of the post and telecommunications sector;

- Contribute to and promote the application of the Internet in the education and health sectors, especially for healthcare work in rural areas;

- Pay service fees, charges, and taxes based on relevant laws;

- Implement other obligations as defined in relevant laws.

Article 19        Rights and obligations of Internet service users

Internet service users have rights and obligations as follows:

          Scope of rights:

- Choose which service to use based on their preference;

- Request or complain to ISPs when they do not receive a good service;

- Exercise other rights as defined in relevant laws.

Obligations:

- Pay service charges based on relevant regulations;

- Be liable for any of their information that breaches relevant laws;

- Implement other obligations as defined in relevant laws.

Chapter 6

Service Fees and Charges

Article 20        Service fees and charges

Service fees and charges in requesting a license for Internet service business operation shall be implemented based on a specific regulation on service fees and charges in each period.

 

Chapter 7

Measures against Violators

Article 21        Fine Measures

Individuals or legal entities that violate this Decision shall be fined as follows:

  1. Operating an Internet service business without permission, 50,000,000 kip fine;
  2. Allowing their license to be used, rented, or transferred to others, 30,000,000 kip fine for a license type 1, 20,000,000 kip for a license type 2, and 10,000,000 kip for a license type 3;
  3. Providing a service beyond the type or scope permitted, 10,000,000 kip fine;
  4. Expanding or connecting to a network, or adjusting a technical system without permission, 10,000,000 kip fine;
  5. Connecting to a foreign network without permission, 10,000,000 kip fine;
  6. Spreading false information to discredit other ISPs, 5,000,000 kip fine;
  7. Forging documents, supplying incorrect data, or hiding information, or being uncooperative with Internet service management and inspection authorities, 3,000,000 kip fine;
  8. Damaging or failing to collect Internet service information, 3,000,000 kip fine;
  9. Disclosing Internet users’ confidential information without permission from management and inspection authorities or relevant officials, 5,000,000 kip fine;
  10. Providing a service or charging at a rate inconsistent with the price mentioned in a contract or in an announcement, 5,000,000 kip fine;
  11. Not extending a license within 30 days after its expiration date, 2,000,000 kip fine for a license type 1, 1,000,000 kip for a license type 2 and 500,000 kip for a license type 3;
  12. Discriminating against and obstructing new ISPs from operating their business, 5,000,000 kip fine;
  13. Using a service to dominate or abuse their market power against smaller businesses, 5,000,000 kip fine.

Article 22        License Suspension and Withdrawal Measures

Management and inspection authorities will suspend an Internet service operation license in the following cases:

  1. Providing a service beyond the type or scope of permission;
  2. Forging documents, hiding information, or supplying incorrect data to Internet service management and inspection authorities;
  3. Expanding or connecting to a network, or adjusting a technical system without permission;
  4. Not paying for telecommunication resources;
  5. Not extending a license within 90 days after its expiration date;
  6. Connecting to a foreign network, but not through the National Internet Center as defined in Article 14 of this Decision;
  7. Abusing or facilitating the illegal use of their Internet system;
  8. Not collecting service charges as defined by laws;
  9. Not paying service fees, charges, or taxes to the Government;
  10. Incurring two fines as stipulated in Article 21 of this Decision.

Management and inspection authorities will withdraw an Internet service business operation license in the following cases:

  1. Those who have had their license suspended and still do not meet the criteria set by management and inspection authorities;
  2. Allowing their license to used, rented, or transferred to others without permission;
  3. Not continuing to operate their business one year after extending their license;
  4. Incur three separate fines under Article 21 of this Decision.

Chapter 8

Final Provisions

Article 23        Implementation

The Information Technology Department and Provincial/Vientiane Capital Post and Telecommunications Divisions are assigned to strictly implement this Decision.

Article 24        Effectiveness

This Decision is effective from the date of signature and fifteen days after posting on the Lao Official Gazette.

This Decision replaces the Regulation on Organization of Internet Service of the Lao PDR No. 141/PMO, dated 05 April 2000.

 

Minister of Post and Telecommunications  

[Signature and seal]

                                                                                                                                 

Hiem PHOMMACHANH


Appendix

1, Documents required to request a license for an Internet service business operation:

- A request form;

- A certificate of residence;

- Requester’s ID/passport;

- Detailed biography of the business manager;

- Educational background together with certificates;

- An economic analysis;

- A technical analysis;

- A certificate of family status;

- An enterprise registration license;

- A certificate of financial status/bank statement;

- Other relevant contracts (namely network leasing contract, infrastructure leasing contract, and so on).

2, Documents required to extend a license for an Internet service business operation:

- A request form;

- A certificate of residence;

- Requester’s ID/passport;

- A certificate of financial status;

- An enterprise registration license;

- A tax payment receipt;

- A summary of past activities;

- A resource usage payment receipt;

 - A financial summary;

 - Other relevant contracts (namely network leasing contract, infrastructure leasing contract, and so on).


Appendix A

 

License for Internet service business Operation Type 1

 

I. Limitation of service area

Permitted Internet service operator type 1 can provide a service nationwide.

II. Types of service

Permitted Internet service operator type 1 can request the right to provide the following services:

  1. Narrow band (dial-up modem) Internet service via telephone line in a public switched telephone network (PSTN);
  2. Broadband Internet service via telephone line (xDSL);
  3. High-speed Internet service via fiber optic cable (FTTX);
  4. High-speed Internet service over cable TV;
  5. High-speed Internet service via power line;
  6. Wireless Internet service (WiMAX, Wi-Fi, LTE, satellite);
  7. Internet service on mobile (GPRS, 3G, 4G, 5G and so on);
  8. Leased line service;
  9. Private leased line service (IPLC, MPLS and so on);
  10. Virtual private network service (VPN);
  11. Internet service via a small satellite (VSAT);
  12. Web and information hosting service;
  13. Electronic mail service (E-mail);
  14. Internet protocol television service (IPTV).

 

Director General of Information Technology Department

[Signature and seal]

 

Misith AMNATHCHALEUN


Appendix B

 

License for Internet service business operation type 2

 

I. Limitation of service area

Permitted Internet service business operator type 2 can provide a service within a provincial or the Vientiane Capital area.

 II. Types of service

Permitted Internet service business operator type 2 can request the right to provide the following services:

  1. Narrow band (dial-up modem) Internet service via telephone line in a public switched telephone network (PSTN);
  2. Broadband Internet service via telephone line (xDSL);
  3. Internet service via fiber optic cable (FTTX);
  4. High-speed Internet service over cable TV;
  5. Wireless Internet service (WiMAX, Wi-Fi, LTE);
  6. Internet service on mobile (GPRS, 3G, 4G, 5G and so on);
  7. Virtual private network service (VPN);
  8. Web and information hosting service;
  9. Electronic mail service (E-mail);
  10. Internet protocol television service (IPTV).

Director General of Information Technology Department

[Signature and seal]

 

Misith AMNATHCHALEUN


Appendix C

 

License for Internet service business operation type 3

I. Limitation of service area

Permitted Internet service business operator type 3 can provide a service within a district area.

II. Types of service

Permitted Internet service business operator type 3 can request the right to provide the following services:

  1. Narrow band (dial-up modem) Internet service via telephone line in a public switched telephone network (PSTN);
  2. Broadband Internet service via telephone line (xDSL);
  3. High-speed Internet service via optic fiber (FTTX);
  4. High-speed Internet service over cable TV;
  5. Wire Internet service (WiMAX, Wi-Fi, LTE);
  6. Internet service on mobile (GPRS, 3G, 4G, 5G and so on);
  7. Virtual private network service (VPN);
  8. Web and information hosting service;
  9. Electronic mail service (E-mail);
  10. Internet protocol television service (IPTV).

 

Director General of Information Technology Department

[Signature and seal]

 

Misith AMNATHCHALEUN



Download English:Decision on Approval of Internet Service Business Operation No. 2530/MPT, dated 22 September 2015

Download Lao:Decision on Approval of Internet Service Business Operation No. 2530/MPT, dated 22 September 2015


List Measures Related to Legal Documents
NameDescriptionStatus
A. Criteria for License ExtensionsApplications for extensions of internet services business operation licenses shall be submitted at least 30 days prior to expiry of the existing license and meet the following criteria:

- All documents shall be submitted in full as determined by the Posts, Telecommunications and Communications;
- If telecommunications resources are utilized, a certificate must be presented proving payment of telecommunications resources fees; and
- Temporary licensees will be contingent on performance of at least 60% of the first annual plan.
The consideration period for the extension of each category of license is as follows:

- License Category 1, a decision will be made within 20 business day;
- License Category 2, a decision will be made within 15 business days; and
- License Category 3, a decision will be made within 10 business days.
Active
Accompanying Documents to be Submitted with Internet Services Business Operation License Applications1. Accompanying Documents to be Submitted with Internet Services Business Operation License Applications are as follows:
- Application form;
- Certificate of address;
- ID Card/passport of the applicant;
- Detailed resume of the service provider;
- Technical background, educational certificates;
- Economic feasibility study;
- Technical feasibility study;
- Family status certificate;
- Enterprise Registration Certificate;
- Financial statements/business bank account statements; [and]
- Other relevant agreements, such as: network lease agreements, infrastructure lease agreements, etc.).
Active
Accompanying Documents to be Submitted with Internet Services Business Operation License Extension Applications2. Accompanying Documents to be Submitted with Internet Services Business Operation License Extension Applications are as follows:

- Application form;
- Certificate of address;
- ID Card/passport of the applicant;
- Financial statements
- Enterprise Registration Certificate;
- Tax remittance certificates;
- Summary report of past operations;
- Payment of resources fees certificates;
- Financial summaries; [and]
- Other relevant agreements, such as: network lease agreements, infrastructure lease agreements, etc.)
Active
Application for Internet Services Business Operation LicenseIndividuals or legal entities that wish to undertake internet services business shall submit an application to the Posts, Telecommunications and Communications Sector by submitting an application form and other documents as determined by the PTC Sector.Active
Changes, Suspension or Termination of an Internet Services Business Operation LicensesInternet service providers who wish to make changes to the contents of the license, suspend or terminate their provision of services shall obtain authorization from the Posts, Telecommunications and Communications Sector.Active
Criteria to be Considered for the Issue of a License, An applicant for an internet service license mustl not be under a period of assets seizure, bankruptcy procedures or be declared bankrupt by the courts in accordance with the laws of the Lao PDR.Active
Criteria to be Considered for the Issue of a LicenseA person applying for an internet service license must have sufficient relevant technicians for the category and scope of servicesActive
Criteria to be Considered for the Issue of a LicenseThe application requirements for an internet service license are: Submission of an application, an economic feasibility study, technical feasibility study, and other documents determined by the Posts, Telecommunications and Communications Sector as required;Active
Internet Service Equipment ImportationEquipment that is to be imported from abroad for use in the provision of services shall be authorized by the Posts, Telecommunications and Communications Sector; and
Equipment to be utilized in the internet services systems shall be inspected and certified by the Posts, Telecommunications and Communications Sector.
Active
Scope of provision of services of Internet Services Business OperationsLegal entities which receive internet services business operation licenses may only provide services within the area and categories of service as detailed in the business operation license.Active
Term of Internet Services Business Operation LicensesThe term of internet services business operation licenses are divided into two periods, namely:

1. Period One: issue of a temporary license, whereby each category has a term of one year;
2. Period Two: issue of a full license, whereby the term for each category is as follows:

- License Category 1 has a term of validity of five years;
- License Category 2 has a term of validity of two years; [and]
- License category 3 has a term of validity of two years.
Active