19th June, 2019 This notice serves to inform relevant stakeholders that as of 1st July 2019, the Ministry responsible for Communications, will roll into transitioning existing licences into the new licensing regime under the Communication Act 2015 (As Amended) (“the Act”). As a result of the Parliament’s enactment of the Act there is now a new licensing framework governing the supply of communications and broadcasting services, the ownership and operation of the associated network facilities, and the use of the radio frequency spectrum. This new licensing framework is set out in the Act, the Communications Licensing Rules 2017 (as will be amended) (“Licensing Rules”), and the Communications Radio Spectrum Rules 2019 (“Spectrum Rules”)(which will come into force on the 1st July 2019).
Section 187 of the Act provides for a one (1) year transition period (which was extended for a total of 2 years on 2 separate occasions) during which the existing licences are to be replaced with new licences issued under the new licensing regime. Based on the Ministry’s records, the plan is for your existing licence(s) to be replaced with the following new type(s) of licence, where relevant and applicable:
- Network operator licence;
- Registration as a service provider; and/or
- Radio spectrum licence.
Fees
For Network operators and Service providers, they will be required to pay an Annual Licence fees in accordance with the formula provided for under section 36 of the Act and the Licensing Rules. For your ease of reference, the fee tables are as shown below –
Fees and amounts payable by Network operators
Type of fee or amount | Amount | Reference |
Application fee | TOP 200 | subsection 47(1)(b) of the Act |
Threshold amount | TOP 250,000 | subsection 36(4) of the Act
|
Fixed amount | TOP 2,000 | subsection 36(3) of the Act
|
Fixed percentage | 1.50% | subsection 36(5) of the Act
|
Fees and amounts payable by Service Providers
Type of fee or amount | Amount | Reference |
Application fee | TOP 200 | subsection 47(1)(b) of the Act |
Threshold amount | TOP 125,000 | subsection 43(4) of the Act |
Fixed amount | TOP 1,500 | subsection 43(3) of the Act |
Fixed percentage | 1.50% | subsection 43(5) of the Act |
NOTE: These fees will expire after 3 years from the date on which they came into force (see sections 43(5)(a) of the Act). After this time, new fees will be set by an amendment to these rules.
Also, as of 1st July 2019, upon the commencement of the Spectrum Rules, each spectrum holder will pay for spectrum fees. Spectrum fees are as follows –
In a nutshell, these fees are set at a price much lesser than what is currently been paid for. The ultimate intention is to make communication services more accessible and affordable to end users, whilst, at the same time maintaining the balance between private entities making reasonable returns for their investment on one hand, and the cost involved in financing the work of the Ministry in regulating the sector on the other hand.
Please note that the licence transition process will deal only with the replacement of existing licences and authorisations. New licences will be issued under the new licensing regime as a completely separate process. If you wish to obtain rights or permissions additional to those currently available to you under your existing licences then you will need to make a separate application to the Ministry for the relevant licence. Such applications may be made at any time.
Within the Ministry the licence transition process is being managed by Calvy Aonima. If you would like further information about the new licensing regime or the licence transition process, or at any stage would like to discuss or clarify the specifics of your existing or replacement licences, please contract by email to caonima@mic.gov.to