developments in the law “on communications”
Pepeliaev Group advises that amendments to the Law “On Communications”* regarding the joint use of the radio-frequency spectrum by service providers entered into force on 4 July.
Key developments
- A new definition - an agreement for the multi-party use of the radio-frequency spectrum – is a contract between two or more users of the radio-frequency spectrum (the “RF Spectrum”), which governs the joint use of the RF Spectrum in accordance with the Law “On Communications” (clause 3.1 Article 2 of the Law).
- The procedure for assigning (designating) radio frequencies (RFs) or a radio-frequency channel (RFC) as part of the joint use of the RF Spectrum: RFs are assigned (designated) following the procedure set by the State Commission for Radio Frequencies (SCRF) with RF bands allotted to the parties to an agreement on the same territory and specified in the agreement for the multi-party use of the RF Spectrum (par. 2 clause 3 Article 24 of the Law “On Communications”).
- The amendments specify the material terms and conditions of an agreement for the multi-party use of the RF Spectrum, some of which are:
- the indication of RF bands to be used jointly that are allotted to the users of the RF Spectrum, who are parties to the agreement;
- rights and obligations of users of the RF Spectrum, including their obligations to comply with terms and conditions specified in a corresponding decision to allot RF bands;
- the settlement procedure for the users of the RF Spectrum relating to its joint use and the amounts of relevant payments;
- the procedure for resolving disputes among users of the RF Spectrum regarding their joint use of RF Spectrum;
- the procedure for terminating an agreement for the multi-party use of the RF Spectrum (clause 3.1 of Article 24 of the Law “On Communications”).
- The amendments limit the range of joint users of the RF Spectrum to those parties of the agreement on multi-party use of the RF Spectrum that are communication service providers carrying licences to supply communication services of the same type (clause 3.2. Article 24 of the Law “On Communications”).
- The amendments introduce an additional reason for rejecting an application for radio frequencies to be assigned: the absence of an agreement on multi-party use of RFs, if such frequencies are to be used jointly (par. 6 clause 8 Article 24 of the Law “On Communications”).
- The amendments supplement the list of reasons for terminating permits for the use of RFs or the RF Spectrum out of court with termination of the agreement on multi-party use of the RF Spectrum (clause 11.1 Article 24 of the Law “On Communications”).
What to think about and what to do
We recommend that communication service providers who intend to or already use RFs jointly study the amendments made to the Law “On Communications”. We draw your particular attention to the material terms and conditions of an agreement on multi-party use of the RF Spectrum so as to mitigate the risks of the application for assignment (appointment) of RFs or the RF Spectrum being rejected, and also to the need for all parties of this agreement to hold similar licenses for communication services.
Help from your adviser
Pepeliaev Group’s experts have extensive experience of handling issues relating to compliance with legislation on communications. They are ready to provide comprehensive legal support and technical assistance in drafting agreements for the multi-party use of the RF Spectrum.
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* Federal Law No. 204-FZ dated 23 June 2016 “On amending Articles 2 and 24 of the Federal Law ‘On Communications’”.