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CHAPTER IV
TARIFFS

Clause Twenty-Four
General Principles

One. Those who use foe services provided by CTM shall pay the relevant fees as laid down in the tariff schedule as approved by the Governor and published in the relevant by-law.

Two. CTM shall not charge any fees that are not included in the said tariff schedule nor apply them in a manner different to that described in the said schedule or in any way increase the service prices.

Three. Fees shall be fixed as close to the cost of service as possible, taken as a whole, taking into consideration the need to obtain a return on the investments made by CTM; they must encourage the expansion of services and favour the relations between the Territory, Portugal and other regions of China.

Four. As regards specific services provided by CTM to certain subscribers in respect of whom no fees have been fixed, CTM may thirty days after submitting an application to the Governor to that effect, duly funded, use a provisional fee. The determination of this fee shall be based on commercial aspects or agreed with the user until such time as the Governor fixes the final fee.

Five. As soon as the said service is liberalised, the system referred to in the items above shall be. applied only to those exclusive services, and CTM shall be subject to the provisions under Clause Twenty-Six — A below.

Six. The terms for the revision of the fees to pay for the services provided by CTM must be approved annually by the Territory.

Clause Twenty-Five
Access/Interconnection Charge

The access/interconnection fee referred to in Article 1 - C shall be established by the Governor, after consultation with the Concessionaire and inc interested operators, and its amount may not prevent the development of new services, its value shall express in an appropriate and balanced manner, the several interests at stake, namely the costs that must be incurred for such purpose.

Clause Twenty-Six
Fees and Tariffs Revision

One. The current rental system in force for the Local Fixed Telephone Service shall remain unchanged throughout the life of the Concession unless otherwise agreed.

Two. Tariff revisions may be effected by mutual agreement providing the Governor or CTM so requires and submits a duly explained proposal.

Three. For specific commercial purposes. CTM may apply fees lower than those legally approved, offering discounts on a non-discriminatory basis. In this case, CTM shall report them to the Governor at least one month prior to introducing the aforesaid fees.

Four. Tariff revision proposals submitted by CTM shall show that the revision is needed and shall take into consideration among others the following aspects:

1. The inflation rate and the evolution of production costs, which correspond to an efficient service, based on wise management;
2. The fees and tariffs charged by other telecommunications operators in countries and territories with characteristics similar to those in Macao, notably Hong Kong and Singapore.
3. Reduction in costs based on technological developments;
4. The obligation imposed on CTM to promote the regular development of the service in terms of quality, quantity and diversity and to secure a permanent updating of the facilities;
5. The impossibility to obtain productivity gains, which would enable to cover for the increase in costs that, based the request for revision.

Five. When fixing and revising international service fees, the rate between the pataca and the accounting units used in settling the international accounts as well as the applicable provisions of international treaties, conventions and agreements shall be taken into consideration in addition to the aspects referred to above.

Clause Twenty-Six-A
Liberalised Service Fees

As regards the approval and changing of the fees of the services provided it competitive environment, CTM shall be subject to the framework, governing the other operators and that established in future legislation.

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