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CHAPTER III
SETTING UP AND OPERATING THE SERVICE

Clause Fifteen
The Network

CTM’s telecommunications network shall comprise the following:

1. the local networks allowing the services under the Agreement in hand to be . provided, with all posts, terminals, interconnections and transmission and switching facilities;
2. the transmission and switching facilities for the international telecommunications services under this Agreement to meet the public needs and in accordance with the Asia-Pacific Regional Plan and the ITU’s World Telecommunications Plan, as well as other world and regional traffic plans as agreed internationally for regional and world communications.

Clause Sixteen
Network Expansion

One. With a view to secure good quality and safe services, CTM shall undertake to expand and improve its networks in order to enable them to meet the needs and requirements of services, users and traffic increase. The network expansion shall be conducted in accordance with the plans set forth in Clause Seventeen below.

Two. CTM shall remove at its own expense and within the term fixed and in co-operation with other entities likely to be referred to it, all overhead or exposed telephone accessories, cables and lines owned by CTM which are not in use.

Clause Seventeen
Planning

One. The general plan, the five-year plan and the annual plan are included in Enclosures I, II and III to the Agreement in hand. The aforesaid plans shall be part of the Agreement in hand.

Two. Every year and on or before the 30th November prior to the commencement of the period to which they refer, CTM shall present to the Governor the new five-year and annual plans for its analysis and eventual approval.

Three. Should the Governor fail to ask for any clarification and if CTM does not receive any message by the 31st of January following the date of their submission, the plans referred to in item Two above shall be considered approved.

Four. The period for approval shall be suspended if the Governor asks for any clarification.

Clause Eighteen
Rules Governing the Setting up of the Service

One. The design of facilities, the equipment to be used as well as the assembly methods shall comply with best technical standards at all times. The equipment characteristics shall meet the rules applicable as set forth in ITU-T and ITU-R’s or any other international standards of general use providing those recommendations have been approved by the Governor.

Two. In terms of the basic network, the external voice frequency transmission facilities shall be carried out on underground cables at all times, unless otherwise authorised by the Governor. The secondary distribution network shall be underground as well in urban areas and up to the subscribers’ distribution boxes. Installing and connecting local network distribution boxes shall always take place in a discreet way namely in locations of interest to tourism and in terms of monument protection.

Three. CTM shall undertake to replace at the shortest period of time possible, the switching and transmission systems, the type of sets or any other facilities elements which affect the quality of the service provided due to their condition, obsolescence or wear and tear. The quality of service shall be assessed based on the criteria agreed with CTM in accordance with item Three of Clause Twenty-Nine.

Four.  Furthermore, CTM shall undertake to take all the measures required to protect any operation-related facilities against fire, cataclysms, rnalefactions and third parties’ actions.

Clause Nineteen
Operation Rules

One. The operation and maintenance of telecommunications facilities shall comply with the relevant ITU-T and ITU-R recommendations, other internationally accepted standards and those that are to be agreed with the inspection body.

Two. CTM shall undertake to keep its telecommunications facilities operating continuously and make the necessary arrangements to repair any outages promptly and irrespective of the cause.

Clause Twenty
Telegram Service

One. Without prejudice to the cases in which providing a different service is convenient, CTM shall set up and keep, direct or indirectly an efficient telegram service for such a period as both the Territory and CTM shall agree that such a service is in demand, namely:

1. Telegram acceptance service in Chinese characters for facsimile transmission subject to the correspondents’ ability to offer such a service;
2. Telegram delivery service by messenger to be provided by CTM or Macau Post Office subject to agreement and prior transmission by telephone or telex, when possible.

Clause Twenty-one
Fulfilling Applications

One. CTM shall fulfil promptly all applications for telecommunication installations as included in the fee table in force following a chronological order of submission.

Two. The Governor may grant CTM the right to assign priorities subject to the provisions set forth in rules governing the use of public services.

Clause Twenty Two
Relation with Clients

One. CTM shall not provide service to any clients unless they agree to abide by the rules referred to in item Two below which shall be made available to the said clients prior to installation taking place.

Two. The service provision conditions shall be included in a typical contract containing the rights and duties of the client, which shall be approved by the Governor. As regards the service contracts with the Administration, the public and businesses, CTM shall draft them in both Portuguese and Chinese languages.

Clause Twenty-Three
Maintenance

CTM shall undertake to maintain all facilities and equipment in good operating conditions and provide permanent maintenance service of a current and extraordinary nature as may be required by the stations and equipment. CTM shall further undertake to repair promptly all malfunctioning and breakdowns, giving priority to those facilities related to the Territory’s safety.

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