Federal Law of Russian Federation
«On Communications»

(Adopted by the State Duma on June 18, 2003

Approved by the Council of Federation on June 25, 2003)

This Federal Law establishes the legal basis of the activities in the field of communications within the Russian Federation territory and territories under the Russian Federation jurisdiction, specifies the governmental authorities scope in the field of communications, as well as rights and duties of the persons to take part in the above activities or to use communication services.

Chapter 1. General

Article 1. Goals of this Federal Law

The goals of this Federal Law are as follows:

Arrangement of conditions to provide communication services over all the Russian Federation territory;

Support to the prospective technologies and standards implementation;

Protection of interests of communication service users and managing subjects which operate in the field of communications;

Effective and faithful competition provision in the communication services market;

Arrangement of conditions to develop the Russian communications infrastructure, provision of its integration into the international communication networks;

Provision of the centralized management of the Russian radio-frequency resource including the orbiting frequency one, and numbering resource;

Arrangement of conditions to provide needs in communications for governmental management, country defense, State security and law enforcement.

Article 2. Basic concepts used in this Federal Law

For the purpose of this Federal Law the following basic concepts are in use:

Subscriber — communication services user whom the agreement on rendering such services at assigning subscriber number or unique identification code;

RF bandwidth assignment — written authorization to use a certain RF bandwidth for developing, upgrading, manufacturing in the Russian Federation and (or) importing to the Russian Federation radio electronic facilities or high frequency devices featuring certain technical characteristics;

High frequency devices — equipment or devices intended for generating and using radio frequency power in industry, science, medicine, everyday life or other fields except for using in the field of telecommunications;

Radio frequency spectrum use —authorization to use and (or) to use, in fact, RF bandwidth, RF channel or radio frequency for rendering telecommunication services and other objectives not banned by the Federal laws or other normative legal Regulations applicable in the Russian Federation;

Radio frequency spectrum conversion — totality of operations aimed to have radio frequency spectrum use spread with civil radio electronic facilities;

Communication cable buildings — telecommunication buildings and other engineering infrastructure units erected or engaged to have communication cables deployed;

Communication lines — transfer lines, physical circuits and communication cable buildings;

Mounted capacity — a value which characterizes the Communications Operator’s technological capabilities to render telecommunication services, interconnection services and traffic services within a specified territory of the Russian Federation, and which is measured with the technical capabilities of the facilities introduced into the Communications Operator’s network;

Numbering — a digital, alpha, character representation or such representation combinations, including the codes intended for a unique determination (identification) of the communication network and (or) its main or terminal elements;

Users’ facilities (end equipment) — technical facilities to transfer and (or) receive telecommunication signals via communication lines connected to the subscriber paths, and used by subscribers or intended for such purposes;

Main PSTN Operator — an Operator which along with the affiliated persons possesses, at least, twenty five per cent of the mounted capacity, or is capable of holding, at least, twenty five per cent of traffic in geographic numbering zone or over all the Russian Federation territory;

Communications operator — a legal person or individual entrepreneur which render communication services on the basis of the relevant License;

Universal service Operator — a Communications Operator which renders communication services in the Public Switched Communications Network, and which under this Federal Law bears liabilities for rendering the universal communication services;

Communications entity — a legal person which carries out its operations in the field of communications as the basic type of operations. This Federal Law provisions which regulate Communication entities operations are applicable, respectively, to the individual entrepreneurs, which operate in the field of communications as the basic type of operations;

Radio frequency spectrum user — a person which is assigned with the RF bandwidth or with a radio frequency, or with a radio frequency channel;

Communication services user — a person which orders and (or) uses Communication services;

Radio frequency or radio frequency channel assignment — written authorization to use a specified radio frequency or radio frequency channel with a specified radio electronic facility, purposes and terms of such use;

Radio interference — electromagnetic energy impact on radiowave reception which is caused with one or several emission types, including radiation, induction, and which results in Communications quality worsening of any type, in errors or information loss which might be avoided if no such energy impacts on;

Radio frequency — an electromagnetic oscillations frequency to be established to have radio frequency spectrum unit component specified;

Radio frequency spectrum — a radio frequency combination within the limits established by the International Telecommunications Union which may be used for radio electronic facilities or high frequency devices operation;

Radio electronic facilities — a hardware intended for transferring and (or) receiving radiowaves, which consists of either a single or several transmitting and (or) receiving facilities, or such facilities combination, and which includes some secondary facilities;

RF bandwidths distribution — specifying destination of the RF bandwidths by recording in the Table of RF bandwidths distribution between Russian Federation radio Services; the records are the basis on which an authorization to use a specified RF bandwidth is issued, as well as the terms of such use are established;

Numbering resource — a combination or a part of the numbering variants which may be used in Communication networks;

Communication network — a technological system which covers any facilities and Communication lines, and is intended for telecommunications or mail;

Up-to-date functional Communications network equivalent — minimal set of modern Communication facilities which provide quality and current extent of the Communication network services;

Communication buildings — engineering infrastructure objects covering buildings, constructions, erected or fitted to have communication facilities and telecommunication cables allocated;

Communication facilities — hardware and software to be used to form, receive, process, store, transmit and deliver telecommunication or mail messages, and other hardware and software to be used to render Communication services or provide Communication networks operation;

traffic — a traffic of stream of calls, messages and signals incoming to the Communication facilities;

Universal Communication services — Communication services which are obligatorily rendered by the universal service Operators to any Communication services User over all the Russian Federation territory at a specified term, with specified quality and at a moderate price;

Communications network management — a combination of technical activities aimed to providing the Communications network operation including traffic control;

Communications service — reception, processing, storing, transmitting and delivering telecommunication or mail messages;

Interconnection service — activities aimed to meeting Communication Operators’ need in organizing telecommunication networks interaction when connecting and information transferring among the users of the telecommunication networks in interaction turn real;

Traffic service — activities aimed to meeting Communication Operators’ need in providing traffic between the telecommunication networks in interaction;

Telecommunications — any emission, characters, signals, voice data, written text, images, sounds or other messages transmition or reception over wireless system, wires, optical and other electromagnetic systems;

Electromagnetic compatibility — feasibility of radio electronic facilities and (or) high frequency devices to operate at a specified quality level in the electromagnetic environment and not to induce inadmissible interference onto other radio electronic facilities and (or) high frequency devices.

Article 3. Scope of this Federal Law

1. This Federal Law makes regulations the relationships aimed to organizing and operating all Communication networks and Communication buildings, radio frequency spectrum use, telecommunication and mail services rendering in the Russian Federation and territories under the Russian Federation jurisdiction.

2. In relation to the Communication Operators which operate outside the Russian Federation in conformance with the foreign nations right, this Federal Law is only applicable to work procedure regulations and Communication services rendering in territories under the Russian Federation jurisdiction.

3. The Communication relationships out of this Federal Law scope may be enforced with other Federal laws and other Russian Federation normative legal documents in the field of Communications.

Article 4. Russian Federation Legislation in the field of Communications

1. The Russian Federation Legislation in the field of Communications is based on the Russian Federation Constitution and consists of this Federal Law and other Federal laws.

2. The relationships concerning the Communications are also regulated with the normative legal Acts by the Russian Federation President, normative legal acts by the Russian Federation Government and normative legal acts by the Federal executive authorities issued thereon.

3. In case any international agreement concluded by the Russian Federation provides for some other regulations than those set forth by this Federal Law, the international agreement regulations are applicable.

Chapter 2. Activity fundamentals in the field of communications

Article 5. Communication networks and Communication facilities property

1. In the Russian Federation, the Communication entities are organized and carry out their operations on the basis of the economic space unity in the competition and property multi-form environment. The State provides Communication entities with equal competition environment regardless of the property forms. Communication networks and Communication facilities may be federal-run, Russian Federation subjects-run, municipal-run property, and individually propertied and legal persons-run property.

The list of the Communication networks and Communication facilities which may be federally propertied only, is specified by the Russian Federation laws.

Any foreign investors may take part in privatizing State-run and municipal unitary enterprises’ property on terms specified by the Russian Federation laws.

2. Any Communication network and Communication facility property form is changed under the procedures set forth in the Russian Federation laws and is admitted provided that such a change would not worsen any Communication network and Communication facility operations, and would not infringe upon the citizen’s and legal person’s right of Communication services use.

Article 6. Organizing activities related to Communication buildings and Communication facilities allocation

1. At urban planning and populated areas engineering, the Communication units/ Communication buildings structure should be specified, covering cable erections, individual premises for allocating Communication facilities, and engineering infrastructures power needed to have Communication facility operations provided.

2. The public authorities in the Russian Federation subjects and local authorities support the Communication entities which render the universal Communication services, in obtaining and (or) erecting Communication buildings and premises intended for rendering any universal Communication services.

3. The Communication entities are entitled to erect and operate Communication facilities and Communication buildings under the Contract made with an owner and other proprietor of constructions; power line poles; rail road contact systems; pole supports; bridges; manifolds; tunnels, including subway ones; rail roads and highways; as well as other engineering units and technological areas, and right-of-way, including rail road and highway right-of-way.

The owner or any other proprietor of the above immovables is entitled to claim a reasonable payment to the Communication entity for using the immovables unless otherwise specified in the Federal laws.

In case the individual or legal person-propertied immovables may not be used under their assignment, as a result of building, the owner or any other proprietor may bring the action to the court to dissolve the Contract made with the Communication entity on the above immovables use.

4. The Communications Operator is indemnified for any cost of changes related to any Communication line and Communication buildings reconstruction or removal due to populated areas building and enlargement; houses, buildings, constructions, roads and bridges major repair and reconstruction; new areas developing; melioration systems reconstruction; mineral fields mining and other needs.

The above indemnification may be effected — as parties agree upon — in money terms, or by removing or rebuilding Communication lines and Communication buldings made by the erection Customer at its expense in conformance with the technical terms issued by the Communications entity and applicable standards.

5. The Communication Operators are entitled to place Communication cables in the cable buildings regardless of their ownership status on charge basis.

Article 7. Protecting Communication networks and Communication buildings

1. The Communication networks and Communication buildings are protected with the State Power.

2. In erecting and reconstructing houses, buildings and constructions, Communication networks and Communication buildings, the Communication Operators and Builders should take into account need of Communication facilities and Communication buildings protective measures against unauthorized access.

3. In operating Communication networks and Communication buildings, the Communication Operators should provide Communication facilities and Communication buildings protective measures against unauthorized access.

Article 8. Registering Communication units right of property and other proprietary interests

1. The Communication buildings which are strongly fixed to the ground and might not be removed with no damage proportionally complied with their assignment including cable Communication buildings, are the immovables which undergo the right of property and other proprietary interests government registry in accordance with the civil law. The characteristics of the right of property and other proprietary interests government registry of the cable Communication buildings are established by the Russian Federation Government.

2. The procedures of the right of property and other proprietary interests government registry of the space Communication units (i.e. Communication satellites, including those of double purpose) are established with the Federal laws.

3. The space Communication units right of property and other proprietary interests assignment does not result in assigning title of orbiting frequency resource.

Article 9. Erecting and operating Communication lines in the Russian Federation boundary areas and within the Russian Federation closed sea

The Russian Federation Government establishes the procedures of erecting and operating — including servicing — the Communication lines at the Russian Federation State Boundary crossing, within the Russian Federation boundary areas, within the Russian Federation inshore seas and within the Russian Federation closed sea including cabling and cable erection, building and accident recovery operations at the underwater Communication cable systems within the Russian Federation closed sea.

Article 10. Communication lands

1. In conformance with the Russian Federation Land Laws, the Communication lands are land areas granted to the Communication needs for the permanent (perpetuity) or charge-free due-time use, rent or alien land area limited use assignment title (servitude) to have Communication buildings built and operated.

2. The Russian Federation Land Laws establish the procedures of the land areas grant to the Communication entities, land areas use mode, including Communication networks and Communication buildings fenced-off areas installation and Communication networks allocation striping. The Russian Federation land Laws also specify the procedures of the above land areas establishment, and their withdrawal terms and procedures. The dimensions of such land areas including those granted for installing fenced-off areas and stripes, are specified with the urban planning and engineering documents on the basis of the right-of-way standards established for the relevant operations.

Chapter 3. Communication networks

Article 11. Federal Communications

1. The Federal Communications consist of all entities and governmental bodies which practice routines of telecommunications and mailing over all the Russian Federation territory.

2. The Federal Communications material and technical basis is the Russian Federation uniform telecommunications and Mail Networks.

Article 12. Russian Federation uniform telecommunications Network

1. The Russian Federation uniform telecommunications Network consists of the Russian Federation-deployed telecommunication networks under the categories, as follows:

public switched Communications network;

dedicated Communication networks;

technological Communication networks interconnected with the public switched Communications network;

special Communication networks and other Communication networks intended for data transferring with electromagnetic systems.

2. For the telecommunication networks which the Russian Federation uniform telecommunications Network consists of, the Federal executive authority body in the field of Communications:

establishes their interaction, and in cases set forth in the Russian Federation laws, establishes the procedures of the public switched Communications network centralized management;

subject to the Communication networks category — except for the special Communication networks and dedicated and technological Communication networks if they are not interconnected with the public switched Communications network — establishes their networking, management or numbering requirements; requirements applicable to the Communication facilities to be used; requirements applicable to the technical provisioning of the stable Communication networks operations, including those in emergency; of the Communication networks protection against any unauthorized access and the protection of the data to be transferred over them.

3. The Communication Operators of all the Communication networks categories within the Russian Federation uniform telecommunications Network should build the systems of their Communication networks management in compliance with their interaction procedures established.

Article 13. Public switched Communications network

1. The public switched Communications network is intended for rendering the payable telecommunication services to any Communication services User within the Russian Federation territory and covers the telecommunication networks geographically limited within the area to be serviced, and numbering resource, and not geographically limited within the Russian Federation territory and numbering resource, as well as Communication networks distinguished on Communication services rendering technology.

2. The public switched Communications network is a complex of the interacted telecommunication networks including TV and radio broadcasting networks.

The public switched Communications network is interconnected with the foreign public switched Communication networks.

Article 14. Dedicated Communication networks

1. The dedicated Communication networks are those intended for rendering payable telecommunication services to the limited Users or such User groups. The dedicated Communication networks may interact among them. The dedicated Communication networks have no interconnection with the public switched Communications network and with the foreign public switched Communication networks. The technologies and Communication facilities in use for forming such networks and their administrative basis are established by their owners and other proprietors. The dedicated Communication network may be interconnected with the public switched Communications network by turning into the public switched Communications network category provided that the dedicated Communication network is compatible with the requirements established for the public switched Communications network. In this case, the dedicated numbering resource is withdrawn and the public switched Communications network numbering resource is provided.

2. The dedicated Communication network Operators render services on the basis of the relevant Licenses limited with the areas specified in them, and with numbering assigned to each dedicated Communication network under the procedures established by the Federal executive authority body in the field of Communications.

Article 15. Technological Communication networks

1. The technological Communication networks are intended for providing manufacturing operations at the entities and manufacturing technological processes control.

The technologies and Communication facilities to be used for technological Communication networking and structural concept are established by the owners and other proprietors of these networks.

2. In case some technological Communication network non-engaged resources are available, a part of the network may be interconnected with the public switched Communications network; therefore, it is converted into the public switched Communications network category to render any payable Communication services to any User under the relevant License. The above interconnection is admissible in case:

a part of the technological Communication network to be interconnected with the public switched Communications network, may be separated by the owner from the technological Communication network in technical, software or physical way;

a part of the technological Communication network to be interconnected with the public switched Communications network is consistent with the public switched Communications network operation requirements.

a part of the technological Communication network to be interconnected with the public switched Communications network is given with the numbering resource taken from the public switched Communications network numbering resource under the procedure established by the Federal executive authority body in the field of Communications.

Upon interconnection of the technological Communication network with the public switched Communications network, the owner or other proprietor of the technological Communication network should administrate the separate technological Communication network operation cost accounting, as well as the accounting of its part interconnected with the public switched Communications network.

The technological Communication networks may be interconnected with the foreign technological Communication networks for providing the uniform technological cycle only.

Article 16. Special Communication networks

1. The special Communication networks are intended for the governmental management, country defense, State security and law enforcement. These networks cannot be used for rendering any payable Communication services, unless otherwise set forth in the Russian Federation laws.

2. The Russian Federation laws specify the procedures of the governmental management Communications, including the President Communications, Government Communications, country defense Communications, State security Communications and law enforcement Communications.

The funding of the governmental management, country defense, State security and law enforcement Communications is set forth in the Federal Law on the Federal Budget for the respective year within the relevant expenses.

3. The Russian Federation Government establishes the procedures of the preparation and use of the Russian Federation uniform telecommunications Network resources to provide the special Communication networks operation.

4. The special Communication network control Centers provide the special Communication networks interaction with other networks of the Russian Federation uniform telecommunications Network. The procedures of such operations are established by the Federal executive authority body in the field of Communications.

Article 17. Mail network

1. The mail network is a combination of the mail units and mail routes of the mail Operators which provide posting receipt, processing, hauling (transmission), delivery (handing over), as well as postal money orders delivery.

2. The mail relationships are under regulations of the Russian Federation International Agreements, this Federal Law and Federal Law on Mailing, other federal laws and other normative legal acts by the Russian Federation subjects within their authorities.

Chapter 4. Telecommunication networks interconnection
and their interaction

Article 18. Right to telecommunication networks interconnection

1. The Communication Operators have the right to have their telecommunication networks interconnected with the public switched Communications network. The telecommunication networks are interconnected with each other and interact on the basis of the Communication Operators-made Contracts on telecommunication networks interconnection.

2. On the basis of the Contracts on telecommunication networks interconnection the public switched Communications network Operators should render the interconnection services to other Communication Operators in accordance with the Regulations of the telecommunication networks interconnection and interaction approved by the Russian Federation Government.

3. In conformance with the Regulations of the telecommunication networks interconnection and interaction approved by the Russian Federation Government, the Contracts on telecommunication networks interconnection should set forth:

Communication Operators’ rights and duties at telecommunication networks interconnection and interaction;

duties of the Operators with the specific status in the public switched Communications network in the field of interconnection in case a Contract Party is an Operator with the specific status in the public switched Communications network;

the specific terms of the telecommunication networks interconnection and interaction;

the list of interconnection services and traffic services which should be rendered by the Operator with the specific status in the public switched Communications network; as well as rendering procedures;

dispute settlement procedures among the Communication Operators concerning the telecommunication networks interconnection and interaction.

Unless otherwise set forth in this Federal Law, the interconnection service prices and traffic prices are specified by the Communication Operators in individual, reasonable and faithful way.

4. The disputes among the Communication Operators concerning making of the Contracts on telecommunication networks interconnection are settled in court.

Article 19. Requirements applicable to telecommunication networks interconnection and interaction with telecommunication network of Operator with specific status in public switched Communications network

1. The Public Contract provisions in relation to the Operators with the specific status in the public switched Communications network are applicable to the Contracts on telecommunication networks interconnection which specify the interconnection service rendering terms, and relevant liabilities on telecommunication networks interaction and traffic servicing. In this case, the public switched Communications network Operators are the Users of the interconnection services and traffic services for the purpose of this Article.

For the purpose of providing non-discriminatory Communication services market access, the Operator with the specific status in the public switched Communications network should in similar events establish the equal terms for interconnecting telecommunication networks and servicing traffic for the Communication Operators rendering the similar services, as well as provide information and render interconnection services and traffic services to such Operators on the same terms and with the same quality as for its structural units and (or) affiliated persons.

The Operator with the specific status in the public switched Communications network in the territories of several Russian Federation subjects establishes the terms for interconnecting telecommunication networks and servicing traffic individually within each Russian Federation subject’s territory.

2. Any denial of the Operator with the specific status in the public switched Communications network of making a Contract on telecommunication networks interconnection is not acceptable except for the events if telecommunication networks interconnection and interaction contradicts the Communication Operator License terms or normative legal acts which specify the Russian Federation uniform telecommunication Network structure and operations.

3. The procedures of the telecommunication networks interconnection and interaction with the telecommunication network of the Operator with the specific status in the public switched Communications network and its liabilities at the telecommunication networks interconnection and interaction with other telecommunication Operator networks are specified in conformance with the Regulations approved by the Russian Federation Government.

On the basis of the Regulations of the telecommunication networks interconnection and interaction, the Operators with the specific status in the public switched Communications network establish the terms for interconnecting other telecommunication networks with their telecommunication network in the field of using the network resources and servicing traffic covering the general technical, economic and information terms, as well as privity terms.

The telecommunication network interconnection terms should set out:

The specs concerning the telecommunication networks interconnection;

The extent, procedures and term of works for interconnecting telecommunication networks and allocating them among the interacting Communication Operators;

The traffic servicing procedures over the interacting Communication Operator telecommunication networks;

The telecommunication network interconnection points location;

The list of the interconnection services and traffic services to be rendered;

The cost of the interconnection services and traffic services and billing procedures;

The telecommunication networks management system interaction procedures.

Within seven days after the telecommunication networks interconnection terms being established, the Operators with the specific status in the public switched Communications network disclose the above terms and send them to the Federal executive authority body in the field of Communications.

In case the Federal executive authority body in the field of Communications discovers independently or by Communication Operators’ quest any inconsistency of other telecommunication network interconnection terms with the telecommunications network of the Operator with the specific status in the public switched Communications network and traffic servicing with the Regulations specified in this Article point 3 paragraph 1, or normative legal acts, the above federal body sends inconsistency remedy motivated instructions to the Operator with the specific status in the public switched Communications network. The Communications Operator which is given these instructions, should accept and fulfill them within thirty days after they have been received. The newly established terms of other telecommunication networks interconnection with the telecommunications network of the Operator with the specific status in the public switched Communications network and traffic servicing over this, are released by the Operator with the specific status in the public switched Communications network and are sent to the Federal executive authority body in the field of Communications following the procedures set forth in this Article.

In commissioning some new Communication facilities, conducting withdrawal or upgrading any obsolete Communication facilities, what impacts substantially on terms of interconnecting other telecommunication networks and servicing traffic over the network of the Operator with the specific status in the public switched Communications network, the above Communications Operator is entitled to establish some new terms of other telecommunication networks interconnection with its network following set forth hereof. The telecommunication network interconnection terms might not be changed or amended more often than once a year.

4. The Operator with the specific status in the public switched Communications network considers the Communications Operator’s offer of making a Contract concerning the telecommunication networks interconnection within the period of thirty days, maximally from the offer date. The telecommunication networks interconnection Contract is made in writing by working out, in accordance with the applicable Civil code, a document to be signed by the Parties within the period of ninety days, maximally from the offer date. Should such a Contract be inconsistent with the established form, it might be annulled.

5. The Federal executive authority body in the field of Communications administrates and discloses the Registry List of the Operators with the specific status in the public switched Communications network.

6. The Federal executive authority body in the field of Communications should consider the Communication Operators’ offers on telecommunication networks interconnection and interaction within sixty days from the above offers date and disclose (publish) the decisions taken upon them.

In case the Operator with the specific status in the public switched Communications network fails to follow the decisions of the Federal executive authority body in the field of Communications concerning the telecommunication networks interconnection and interaction, and the Operator with the specific status in the public switched Communications network evades to make a Contract on telecommunication networks interconnection, the other Party may bring the action to court demanding a forcible Contract to be made concerning the telecommunication networks interconnection and incurred loss indemnification.

Article 20. Pricing interconnection services and traffic services to be rendered by Operators with the specific status in the public switched Communications network.

1. The prices of the interconnection services and traffic services to be rendered by the Operators with the specific status in the public switched Communications network are subject to the government control. The list of interconnection services and traffic services to be governmentally controlled in prices, and control procedures are established by the Russian Federation Government. The governmentally controlled price rates established for interconnection services and traffic services to be rendered by the Operators with the specific status in the public switched Communications network should support the environment of reproduction of the modern telecommunications network functional equivalent part which is in use as a result of an extra traffic to be on with the interacting Communications Operator network, and should indemnify the usable telecommunication network operation expenses and cover a reasonable profit rate (profitability) of the capital to be used when in rendering the services of the kind.

2. The Operators with the specific status in the public switched Communications network should account the incomes and expenses separately on operations in practice, Communication services to be rendered and telecommunication network parts to be used for rendering such services.

The Federal executive authority body in the field of Communications establishes the separate accounting procedures for the cases specified hereof.

Chapter 5. Communication operations government control

Article 21. Organizing communication operations government control

1. In conformance with the Russian Federation Constitution and this Federal Law, the communication operations government control is conducted by the Russian Federation President, Russian Federation Government, Federal executive authority body in the field of Communications, and by other federal executive authorities and Russian Federation subject authorities, within their scope. The Russian Federation Government establishes the Communications scope of a federal executive authority.

2. The Federal executive authority body in the field of Communications:

works out and implements the government policy in the Communications and Informatization and coordinates the activities in the field of building and development of the Communication networks, satellite Communication Systems; civil satellite Communication Systems, including TV- and Radio Broadcasting;

works out and adopts the normative legal acts in the field of Communication activities control and regulation, Communication networks building, development and operation, as well as Communication facilities use considering the offers of self-controlled entities in the field of Communications which are formed in accordance with the Russian Federation laws (hereinafter referred to as  self-controlled entities), releases the above acts within thirty days from the adoption date;

in conducting Russian Federation international policy in the field of Communications, functions as the Russian Federation Communications Administration;

considers Communication Operators’ offers concerning the telecommunication networks interconnection and interaction and releases the decisions taken;

communicates to the self-controlled entities on detected obligatory requirements breach committed by such entities, and brings to the notice of these entities some draft normative legal acts which establish the Communication Operator obligatory requirements and considers the above self-controlled entities’ offers concerning the drafts and normative legal act amendments and additions which regulate the Communication Operator activities.

3. The obligatory requirements specified in point 2 hereof are established exclusively for the purpose of ensuring the Russian Federation uniform telecommunications Network integrity, operational stability and safety, and using the radio frequency spectrum.

Article 22. Controlling radio frequency spectrum use

1. The radio frequency spectrum control is an exclusive government right and is provided under the Russian Federation international agreements and Russian Federation laws by conducting economic, organizational and engineering activities related to the radio frequency spectrum conversion, and aimed to accelerating prospective technologies and standards implementation, providing radio frequency spectrum effective use in the social and economic fields, as well as in the field of the governmental management, country defense, State security and law enforcement.

2. In the Russian Federation, the radio frequency spectrum use is conducted by the interagency collective body on radio frequencies distribution under the Federal executive authority body in the field of Communications (hereinafter referred to as the Radio frequencies Governmental Commission) which possesses the full authorities in the field of radio frequency spectrum control.

The Russian Federation Government approves the Regulations of the Radio frequencies Governmental Commission and its staff.

The Regulations of the Radio frequencies Governmental Commission should establish the radio frequencies distribution procedures. Those Regulations should cover, in particular, the Radio frequencies Governmental Commission’s decisions taking procedure and the Commission staff listing the representatives of all relevant federal executive authorities.

In case any representative of any above bodies is interested in solving the item in focus by the Commission, what might impact on decision taking objectivity, the above representative is deprived of voting.

3. The specially authorized service for controlling radio frequencies and radio electronic facilities use under the Federal executive authority body in the field of Communications (hereinafter referred to as the Radio frequency Service) takes the organization and engineering measures to ensure the proper use of the radio frequencies or radio frequency channels and relevant radio electronic facilities, or civil high frequency facilities in pursuance of the Radio frequencies Governmental Commission decisions.

4. The radio frequency spectrum use in the Russian Federation is conducted under the concept, as follows:

users’ radio frequency spectrum authorized access procedures;

convergence of the radio frequency bands allocation and radio frequency use terms in the Russian Federation with the internationally allocated radio frequency bands;

all users’ radio frequency spectrum access right considering several State priorities, including the radio frequency spectrum to be provided to the Russian Federation radio Services for the purpose of ensuring citizens security, ensuring presidential Communications, government Communications, country defense and State security, law enforcement, environmental safety; preventing any man-caused extraordinary situations;

radio frequency spectrum use charge principle;

radio frequency bands termless dedication and radio frequencies or radio frequency channels termless assignment inadmissibility;

radio frequency spectrum conversion;

radio frequency spectrum dedication and use procedures transparency and openness.

5. Communication facilities, other radio electronic facilities and high frequency devices which are electromagnetic emission sources, are subject to registry process. The Russian Federation Government specifies the list of the radio electronic facilities and high frequency devices to be registered and their registering procedures.

The radio electronic facilities to be used to individually receive some TV- and Radio programs; personal wireless call signals (wireless pagers); consumer electronic items and personal radio navigation means which are free of any radio-emitting devices, are in use in the Russian Federation considering the limitations set forth in the Russian Federation laws, and are not subject to any registering process. The use of any unregistered radio electronic facilities and high frequency devices subject to the registering process hereof is not authorized.

Article 23. Allocating radio frequency spectrum

1. The radio frequency spectrum dedication is conducted under the Table of the frequency bands allocation among the Russian Federation radio Services, and under the Plan of the radio frequency spectrum prospective use with the radio electronic facilities. The Table and Plan are worked out by the Radio frequencies Governmental Commission and approved by the Russian Federation Government.

2. The Table of the frequency bands allocation among the Russian Federation radio Services is revised, at least, once per four years; and the Plan of the radio frequency spectrum prospective use with the radio electronic facilities is revised, at least, once per ten years.

The Radio frequencies Governmental Commission considers once per two years the self-controlled entities’ and individual Communication Operators’ offers concerning any revision of the Table of the frequency bands allocation among the Russian Federation radio Services and Plan of the radio frequency spectrum prospective use with the radio electronic facilities.

3. The radio frequency spectrum covers the radio frequency bands categories, as follows:

related to priorities of the radio electronic facilities to be used for the governmental management, including presidential Communications, Government Communications, country defense, State security and law enforcement;

related to priorities of the civil radio electronic facilities;

related to any purpose radio electronic facilities joint use.

4. The single charge and annual charge for the radio frequency spectrum use are established for the users in order to have radio frequency monitoring, radio frequency spectrum conversion and funding of applicable radio electronic facilities conversion into other radio frequency bands provided.

The Russian Federation Government specifies the procedures of the single and annual charges amount establishment, charges levying, distribution and use. The Russian Federation Government takes into account the single and annual charges amount should be established differentially subject to the radio frequency ranges to be used, radio frequencies number and technologies to be used.

Article 24. Dedicating radio frequency bands and assigning radio frequencies and radio frequency channels

1. The radio frequency spectrum use right is provided by dedicating radio frequency bands and assigning radio frequencies or radio frequency channels. Any radio frequency spectrum use with no respective authorization available is not admissible.

2. The Radio frequencies Governmental Commission dedicates radio frequency bands for any radio electronic facilities in the radio frequency bands of the categories of any radio electronic facilities joint use and with priority of the civil radio electronic facilities use, and in the radio frequency bands of the category of the priority for the governmental management radio electronic facilities use.

In the Russian Federation, the specially authorized Federal executive authority body in the field of Government Communications and Informatization and the Federal executive authority body in the field of Defense dedicate radio frequency bands for the radio electronic facilities providing the presidential Communications, governmental Communications, country defense, State security and law enforcement in the radio frequency bands of the category with priority of use of the radio electronic facilities to be used the governmental management.

The radio frequency bands dedication is carried out for ten years or less. By offer of the radio frequency spectrum user, this term may be increased or decreased by the bodies which dedicated the radio frequency band.

The radio frequency bands use right, provided under this Article, may not be assigned by one radio frequency spectrum user to another with no Radio frequencies Governmental Commission’s decision or decision of the body provided such a right, is available.

3. The radio frequency or radio frequency channel assignment for the civil radio electronic facilities is conducted by the Federal executive authority body in the field of Communications by radio frequency Service decision on the basis of Russian Federation citizens’ quests or Russian legal persons’ quests.

The Federal executive authority body in the field of Communications should take decisions on assigning a radio frequency or a radio frequency channel for the civil radio electronic facilities and on other citizens’ quests not later than in a hundred and twenty days from the quest date.

The specially authorized Federal executive authority body in the field of Government Communications and Information and Federal executive authority body in the field of Defense assign a radio frequency or a radio frequency channel for the radio electronic facilities to be used for the governmental management, including the presidential Communications, Government Communications, country defense, State security and law enforcement.

The radio frequency or radio frequency channel is assigned for ten years or less.

The radio frequency or radio frequency channel assignment term for the orbiting frequency resource may be extended considering the warranted life time of the space objects to be used to have Communication networks built and functioned.

4. The decision concerning radio frequency bands dedication and radio frequency or radio frequency channel assignment is taken in conformance with this Article points 2 and 3 when any positive experts opinion is obtained in regard to the declared radio electronic facilities to be used. The Radio frequencies Governmental Commission specifies the examination procedures.

5. The Radio frequencies Governmental Commission establishes and releases the procedures of materials consideration and radio frequencies or radio frequency channels assignment within the limits of the radio frequency bands.

6. The radio frequency or radio frequency channel assignment may be changed for the purpose of providing governmental management, including the presidential Communications, Government Communications, country defense, State security and law enforcement with indemnification of radio electronic facilite owners’ loss incurred because of radio frequency or radio frequency channel changes.

The Federal executive authority body in the field of Communications may forcibly change an owner’s radio frequency or a radio frequency channel with the radio frequency spectrum only in event of preventing human life or health danger and providing the State security, as well as in event of the liabilities arising from the Russian Federation international agreements. The radio frequency spectrum user may appeal such changes in court.

7. The radio frequency spectrum users may be refused with radio frequency bands dedication for the civil radio electronic facilities due to the reasons, as follows:

the declared radio frequency band is inconsistent with the Table of the frequency bands allocation among the Russian Federation radio Services;

the declared radio electronic facility emission and reception parameters are inconsistent with the requirements, norms and national standards in the field of providing radio electronic facilities and high frequency devices electromagnetic compatibility;

the experts opinion is negative concerning the electromagnetic compatibility with the radio electronic facilities in use or to be used.

8. The radio frequency spectrum users may be refused with radio frequencies or radio frequency channel assignment for the civil radio electronic facilities due to the reasons, as follows:

no documents of the declared radio electronic facilities to be used are available to confirm compatibility in events any confirmation is obligatory;

the declared operations in the field of Communications are inconsistent with the established ones on requirements, norms and Regulations;

the experts opinion is negative concerning the electromagnetic compatibility with the radio electronic facilities in use or to be used;

the results of the international radio frequency assignment coordination procedures process is negative if the procedures are established in the International Telecommunications Union Wireless Communication Regulations and in other Russian Federation international agreements.

9. The radio electronic facilities used for governmental management, including the presidential Communications, Government Communications, country defense, State security and law enforcement may be refused with radio frequencies or radio frequency channels under the procedures specified by the specially Federal executive authority body in the field of Government Communications and Information and by the Federal executive authority body in the field of Defense.

10. In event any breach of the terms established at dedicating a radio frequency band or assigning a radio frequency or a radio frequency channel, is discovered, the radio frequency spectrum use authorization obtained by the radio frequency spectrum users for the civil radio electronic facilities may suspended by the body dedicated the radio frequency band or assigned the radio frequency or the radio frequency channel under points 2 and 3 hereof for the term needed to lift this breach but for ninety days, maximally.

11. The radio frequency spectrum use authorization is terminated without bringing the action to court, or the authorization validity is not extended because of the reasons, as follows:

the radio frequency spectrum user’s application is made;

the Communication service operations license is annulled in event such operations are related to the radio frequency spectrum use;

the term specified in the moment of assigning the radio frequency or radio frequency channel, expired in case this term has not been extended under the applicable procedures, or unless an extension request has been made beforehand, at least, thirty days before;

the radio electronic facilities and (or) high frequency devices are used unlawfully, what damages personal, social and governmental interests;

the radio frequency spectrum user fails to follow the terms established in the radio frequency band dedication or radio frequency or radio frequency channel decision;

the radio frequency spectrum user fails to pay for using spectrum within thirty days from the due date;

the legal person which has been authorized to use the radio frequency spectrum, is dissolved;

the breach which has resulted in suspension of the radio frequency spectrum use authorization, is not remedied.

12. In event the documents submitted by the applicant, contain any inauthentic or distorted information which has influenced on taking decision of radio frequency band dedication or radio frequency or radio frequency channel assignment, the body dedicated the radio frequency band or assigned the radio frequency or audio frequency channel may bring the action to court demanding to terminate or not to extend the radio frequency spectrum use authorization validity.

13. In event the radio frequency spectrum use authorization validity is terminated or suspended, its charge amount is not recoverable.

Article 25. Monitoring radio electronic facilities and high frequency devices emission

1. The radio electronic facilities and (or) high frequency devices monitoring (radio monitoring) is carried out to:

check how the radio frequency spectrum user follows the radio frequency spectrum use Regulations;

discover any unauthorized radio electronic facilities and to stop operating them;

discover any radio interference sources;

detect any breach of radio frequency spectrum use procedures and Regulations, national standards, radio electronic facility and high frequency device emission (reception) parameter requirements;

provide the electromagnetic compatibility;

provide radio frequency spectrum operational readiness.

2. The radio monitoring is a component of the radio frequency spectrum use governmental management and radio frequencies or radio frequency channels international and legal assignment protection. The civil radio electronic facilities are radio monitored by the radio frequency Service. The Russian Federation Government specifies the radio monitoring procedures.

The monitored emission sources’ signals recording may be executed in the radio monitoring process to study radio electronic facility and (or) high frequency device emission parameters, to confirm any breach of radio frequency spectrum use established Regulations.

The above record may be a convincing document only witnessing of a breach of radio frequency spectrum use procedures, and should be destroyed under the Russian Federation laws.

Such a record may not be used otherwise; the persons committed that, are under the Russian Federation laws held liable for breach of privacy, personal, family, commercial and other legally protected secrets.

Article 26. Controlling numbering resource

1. The numbering resource control is an exclusive right of State.

The Russian Federation Government specifies the numbering resources allocation and use procedures in the Russian Federation uniform telecommunications Network including the Russian segments of the international Communication networks taking into account the recommendations made by the international organizations which the Russian Federation is member of, in conformance with the Russian numbering system and plan. When the numbering is allocated in the Russian segments of the international Communication networks, the internationally adopted practice of the self-controlled entities in this field is considered.

2. The Communications Operator is levied with a fee for being given with a numbering resource. The levying amount and procedures are established in the Russian Federation taxation laws. In cases specified hereunder, the Federal executive authority body in the field of Communications is entitled to change, completely or partially extract the numbering resource dedicated to the Communications Operator. The information concerning the forthcoming numbering changes and their term is subject to releasing. In event the numbering is changed, one more fee for a numbering resource is not levied (fee-free case). In event the Communications Operator-dedicated numbering resource is lifted completely or partially, the fee is not indemnified, nor compensation is paid to the Communications Operator. The numbering resource may be withdrawn from the Communication Operators due to the reasons, as follows:

the numbering resource-provided Communications Operator arises a relevant application;

the Communications Operator’s license validity has expired;

the Communications Operator uses the numbering resource breaching the numbering system and plan;

the Communications Operator fails to use the dedicated numbering resource completely or partially for two years from the dedication date;

the Communications Operator fails to bear the liabilities assumed at the tender set up hereunder;

the Communications Operator fails to pay the fee for the numbering resource dedicated within ninety days from the dedication date.

The Communications Operator is notified with a 30-day written notice before the withdrawal date about the numbering resource shut-down decision with reasons grounding.

3. The Federal executive authority body in the field of Communications is obliged to:

1) submit the numbering resources allocation and use procedures in the Russian Federation uniform telecommunications Network to the Russian Federation Government to be approved;

2) ensure works on numbering resources allocation and accounting and on numbering resources dedication;

3) establish the Communication networks normative requirements in the field of numbering resources operation, Communication networking requirements obligatory for the Communication Operators, as well as the Communication networks management, numbering, unauthorized access prevention and data transfer safety, radio frequency spectrum operation, traffic servicing procedures, Communication networks interaction, Communication services rendering requirements;

4) approve the Russian numbering system and plan;

5) change Communication networks numbering in technically grounded cases with releasing previously the forthcoming change reasons and periods under the numbering resources allocation and use procedures adopted in the Russian Federation uniform telecommunications Network;

6) provide a free numbering resource availability;

7) submit the numbering resource allocation information by the relevant persons’ requests;

8) monitor whether the Communication Operators use the dedicated numbering resources in compliance with the numbering resources use procedures established in the Russian Federation uniform telecommunications Network including whether the Communication Operators follow the liabilities assumed at the tender set up hereunder.

4. The information concerning the numbering resource dedication, changes and withdrawal from the concrete Communications Operator is not any commercial secret.

5. The Federal executive authority body in the field of Communications dedicates any Communication networks numbering resource by the Communication Operator’s application within sixty days, maximally, if the numbering extent dedicated to all Communication Operators located in the concrete area is less than ninety per cent of the available resource. When in determining any tendered numbering resource, the tender requests set forth in Article 31 hereof, are taken into account.

6. The Communication Operators with a dedicated or changed numbering resource should begin using the dedicated numbering resource or change the network numbering within the pre-established period and pay all charges needed.

The subscribers are free of expenses arising from any Communications network numbering dedication or change, except for costs arising from the subscriber numbers or identification codes change in documents and in information materials.

7. The Communications Operator is entitled to assign its dedicated numbering resource or its part to another Communications Operator only by the Federal executive authority body in the field of Communications consent.

8. When a legal person is re-structured as being merged, incorporated or re-organized, the numbering resource dedication right-establishing documents are subject to being formed newly upon legal successor’s application receipt with no fee to be paid for the previously numbering resource dedicated.

When a legal person is re-structured as being demerged or separated, the numbering resource right-establishing documents are formed newly upon legal successor’s application receipt with no fee to be paid for the previously numbering resource dedicated.

In event any dispute arises from other legal successors challenging the successor’s in question numbering resource rights, the dispute is settled in court.

Article 27. Governmental supervision of Communication Operations

1. The Russian Federation Government specifies the governmental supervision of Communication Operations.

The Federal executive authority body in the field of Communications organizes the State-run establishments within its jurisdiction to fix the government supervision in the Russian Federation subjects. The Russian Federation Government specifies their scope and routine.

2. The governmental supervision of Communication Operations funding is effected with the Federal Budget amounts fixed separately for the Federal executive authority body in the field of Communications in the Federal Budget Federal Law for the respective fiscal year at the expense of the Communication Operators’ deductions for the Federal Budget income.

The funds incoming from the Communication Operators are summarized in the Federal Budget income part and are accounted in the Federal Budget income and expenditure separately. The Russian Federation Government approves the provisions concerning those funds levying and spending.

3. The officers of the governmental supervision body of Communication Operations who are authorized to make Protocols of Administrative breach in the field of Communications and Informatization, are the government Inspectors of the Communications supervision.

The government Inspector of the Communications supervision functions in conformance with the Russian Federation laws.

In the frameworks of the Russian Federation laws, the government Inspector of the Communications supervision takes proper measures against breachers or applies to the body in charge to bring to account.

In event of any breach of obligatory requirements established in the federal laws or other Russian Federation normative legal acts; Communication networks and Communication facilities operating rules; safety standards; safety arrangement and precautions, which endangers human life or health, environment or barriers any routine life support system functions, country defense and State security, the government Inspector of the Communications supervision is entitled to suspend any Communication facilities or Communication networks operation so long as the detected breach is remedied.

4. In event of any breach of obligatory requirements in the field of Communications, established in the federal laws or other Russian Federation normative legal acts, the Federal executive authority body in the field of Communications — by the government Inspector’s of the Communications supervision statement — prescribes to remedy such a breach. The injunction is subject to obligatory fulfillment within the term specified in it.

5. The government Inspector’s of the Communications supervision decisions may be appealed under the Russian Federation laws.

Article 28. Controlling Communication service tariffs

1. The Communication service tariffs are established by the Communications Operator independently unless otherwise set forth in this Federal Law and Russian Federation laws of the natural monopolies.

2. The public telecommunications and public mail services tariffs are subject to government control under the Russian Federation laws of natural monopolies. The Russian Federation Government establishes the list of the governmentally tariffs-controlled public telecommunications and public mail services and tariffs control procedures, as well. The universal Communication services tariffs are controlled hereunder.

3. The government control of the Communication service tariffs (except for universal Communication services tariffs control) should make conditions which provide the Communication Operators with the indemnification of the economically reasonable expenditures arising from rendering the Communication services, and with the indemnification of the reasonable profit rate (profitability) of the capital to be used for rendering governmentally tariffs-controlled Communication services.

Chapter 6. Licensing activities in the field of communication services rendering
and confirming communication facilities consistency

Article 29. Licensing activities in the field of communication services rendering

1. The legal persons and individual entrepreneurs render payable Communication services on the basis of the Communication services rendering License only (hereinafter referred to as the License). The Russian Federation Government establishes the denominations of the Communication services enlisted into the Licenses, and respective licensing terms lists. The denominations and the lists are defined more accurately on the annual basis.

2. The Federal executive authority body in the field of Communications (hereinafter referred to as the licensing body) licenses the Communication services rendering. The licensing body

1) establishes the licensing terms in conformance with the licensing terms lists specified in this Article point 1, and changes and amends them;

2) records the license requests;

3) issues licenses in accordance with this Federal Law;

4) checks how the licensing terms are observed; issues breaches remedy injunctions and advertises on suspending Licenses;

5) denies issuing Licenses;

6) suspends Licenses and resumes them;

7) annuls Licenses;

8) reforms Licenses;

9) administrates the Licenses Registry and releases the information of this Registry in conformance with this Federal Law.

3. The Licenses are issued upon applications (requests) assessment is made, and awarded in cases set forth in Article 31 hereunder, i.e. upon bid (tender) conduct.

Article 30. License award application requirements

1. To obtain the License, the candidate should apply to the licensing body by application which should contain

1) the denomination (Company title), organizational and legal structure, legal person location, bank title with account requisites (for a legal person);

2) the last name, first name, address, ID data (for an individual entrepreneur);

3) the Communications service denomination;

4) the area to have a Communication service rendered and a Communication network built;

5) the Communications network category;

6) the period within which the candidate is to conduct operations in the field of rendering Communication services.

2. The application is annexed with

1) the copies of the constituent documents in the legal person’s registry file to be attested in the governmental bodies which administrate the single legal persons state-run registry; the copy of the document confirming the legal person record written down in the single legal persons state-run registry; the copy should be attested in the body issued the mentioned document or attested by the public notary (for legal persons);

2) the copy of the Certificate of State-run Registry as an individual entrepreneur. The copy should be attested in the body issued the mentioned document or attested by the public notary (for individual entrepreneurs);

3) the public notary-attested copy of the Tax-payer Certificate (for legal persons and individual entrepreneurs);

4) the Communications network formation scheme and Communication service description;

5) the document confirming the fee effected for licensing activities.

3. In case the radio frequency spectrum is to be used to have Communication services rendered for the purpose of TV- and radio broadcasting, cable TV services and wire broadcasting services; voice data transfer including data networks; provision of the Communication channels running out from one Russian Federation subject area, or outside the Russian Federation territory; mailing operations, the candidate should — along with the documents specified in points 1 and 2 hereof — submit the description of the Communication network, Communication facilities which are to be used for rendering Communication services, as well as the Communication network development Plan and Economic Assessment. The Federal executive authority body in the field of Communications establishes the description content requirements.

4. To obtain the License with any radio frequency spectrum operation, the candidate should obtain, above all, the Radio frequencies Governmental Commission decision concerning radio frequency band dedication.

To obtain the License in the field of TV- and radio broadcasting and extra information broadcasting, the candidate should also submit the Broadcasting License copy attested by the public notary.

5. No other documents, except for hereby listed, should be submitted by the candidate.

6. The candidate is responsible for the inauthentic or distorted data submitted to the Licensing Body in accordance with the Russian Federation laws.

Article 31. License bidding (tender)

1. The Licenses are awarded upon bid (tender) results receipt in case

1) the Communication service is to be rendered with the radio frequency spectrum operation, and the Radio frequencies Governmental Commission discovers the available radio frequency spectrum limits an estimated number of Communication Operators within the concrete geographic area. The winner is awarded with the License and with the respective radio frequencies;

2) the geographic area has limited public switched Communications network resources, including a limited numbering resource, and the Federal executive authority body in the field of Communications points out the Communication Operators number should be restricted within the area.

2. The Russian Federation Government establishes the bidding (tender) procedures. The Federal executive authority body in the field of Communications takes decision on bidding (tender), as necessary. The Federal executive authority body in the field of Communications organizes bidding (tender), at the latest, in six months from the decision date.

3. The License with the radio frequency spectrum operation is not issued so long as a decision is taken on License award on the basis of the License application assessment decision or under bid (tender) results.

4. The provisions hereof are not applied to the relationships in regard to the radio frequencies operation for the TV- and radio broadcasting.

Article 32. License application assessment and issuing procedures

1. The Licensing Body takes decision of issuing License or denying issuing

within the period not exceeding thirty days from the decision date, under bid (tender) results;

in cases specified in Article 30 point 3 hereunder — within the period not exceeding seventy five days from the License application date with all needed documents specified in p.p. 1-3, Article 30 hereunder, except for events the License is awarded under bid (tender) results;

in other cases — within the period not exceeding thirty days from the License application date with all needed documents specified in p.p. 1 and 2, Article 30 hereunder, and under application assessment.

2. The Licensing Body should notify the candidate on its decision to issue License or to deny issuing within ten days from the decision date. The License issue notice is sent or handed over to the candidate in writing with the Bank account requisites and license fee due date specified. The denial notice is sent or handed over to the candidate in writing with denial grounds specified.

3. The fee for License application assessment is three hundred rubles.

The license fee is levied for issuing License. Upon License issue notice receipt, the candidate should effect the license fee. The License is issued within three days after the candidate submits the document which confirms the license fee effected.

4. The license fee for issuing License is

15,000 rubles multiplied by the number of the Russian Federation subject territories (parts of the territories) in which the Communication services are to be rendered under the issued License — for the purposes specified in point 3, Article 30 hereunder;

established under bid (tender) terms — in event of awarding License under bid (tender) results;

1,000 rubles multiplied by the number of the Russian Federation subject territories (parts of the territories) in which the Communication services are to be rendered under the issued License — for other purposes.

The license fee and License application assessment fee amounts are transferred to the Federal Budget.

5. In event the Licensee does not bring to effect the license fee within three months, the Licensing Body is entitled to make the License null and void.

6. The Licensing Body specifies the geographic area within which, under the License, the Communication services may be rendered, in the License.

7. The License or any rights arising out of it may not be entirely or partially assigned to another legal or physical person by the Licensee.

Article 33. License Effective Term

1. The license may be issued for the period from three to twenty five years, which is defined by the licensing authority, taking into consideration:

the time term indicated in the competitor’s application letter requesting for the license;

the content of services that the license application letter is requesting for;

the period specified in the resolution of State Radio Frequencies Commission concerning the assignation of a RF band, in case a communication service is to be provided with the use of the radio frequency spectrum;

technical restrictions and technological specifications in compliance with the regulations on interconnection and interaction of the telecom networks.

2. According to the competitor’s request seeking for the license, the license may be submitted for a term shorter than three years.

3. The license effective term may be prolonged on the competitor’s request by the period of the original license or by another period not exceeding the term specified in paragraph 1 of this article. An application letter requesting for the license effective term prolongation shall be submitted to the licensing authority no later than two months and earlier than six months prior to the termination of the license effective period. To extend the license effective period the licensee should submit the documents specified in Article 30 of this Federal Law. A decision on the license effective period extension is made by a licensing authority on the basis of the documents submitted within the term not exceeding forty five days since the indicated documents are submitted.

4. The requested prolongation of the effective license term may be rejected if on the application letter submission date the formerly revealed violations of the licensing terms and conditions have not been done away with.

Article 34. Denial to Issue the License

1. There may be following reasons to deny the license issuance:

1) inconsistency of the documents attached to the application letter with the provisions specified in Article 30 of this Federal Law;

2) failure to present the documents required under this Federal Law;

3) availability of inauthentic or distorted information in the documents submitted by the competitor for the license;

4) inconsistency of the activities applied for by the license competitor to the standards, regulations and rules established for this kind of activity;

5) non-recognition of the license competitor as a tender (auction, bidding) winner in the event the license is to be issued according to the results of   the tender (auction, bidding);

6) reversal of the resolution of State         Commission for Radio Frequencies on the assignation of a radio frequency band;

7) unavailability of technological facilities to accomplish a communication service applied for.

2. The license competitor is entitled to appeal against denial to issue the license, or against inactivity of the licensing authority, in a juridical way.

Article 35. License Re-Execution

1. Upon request of the license owner, the license may be re-executed in the name of a successor in title.

At that, the successor in title, apart from the documents specified in paragraphs 1 and 2 of Article 30 of this Federal Law, is obliged to submit the documents in confirmation of having received the communication networks and facilities required to render service in conformity with the re-executed license, and in confirmation of the re-execution in its name of the permit to use the radio frequencies should they be required to render services on the basis of the re-executed license in question.

2. Should the legal person get re-structured by way a merger, affiliation or transformation, the license shall be re-executed on a request letter from the successor in title. The relevant application letter will need to incorporate the documents specified in paragraphs 1 and 2 of Article 30 of the Federal Law.

3. Should a legal person be restructured by way of division or detachment, the license shall be re-executed on a request letter from the interested successor or successors in title. At that, the interested successor or successors in title, referred to in paragraphs 1 and 2 of Article 30 of this Federal Law, will be obliged to submit the documents in confirmation of having received the communication networks and facilities transferred to them which are required to render services in compliance with the re-executed license in question, as well in confirmation of the re-execution in their names of permits authorizing utilization of the radio frequencies if they need to be used for service provision based on the re-executed license.

Should any other successors dispute the rights of the successor(s) in title interested in the license re-execution, the dispute between the parties shall be settled in a juridical way.

4. Should the legal person get restructured, or its or some individual entrepreneur’s (who are indicated in the license) details change, the licensee shall within thirty days apply for re-execution f the license attaching to its application letter the documents in confirmation of the indicated changes. In case of a failure to submit such application letter in the specified time, the license shall   be terminated.

5. Re-execution of the license shall be performed by a licensing body within thirty days after receipt of the appropriate application.

6. The license re-execution shall be charged with a fee of one thousand rubles to go to the Federal Budget.

7. While re-executing the license the licensing body shall enter appropriate changes into the records of the communications branch license register.

8. In case of refusal to re-execute the license, the licensee shall be held responsible to the service users as provided by the Russian Federation legislation and the service provision agreements.

Article 36. Making Alterations and Amendments in the License

1. The licensee may address a licensing authority requesting that any alterations or amendments be introduced into the license including those having impact on the license terms and conditions.

The licensing authority will be obliged to consider such application letter and notify the applicant of its decision within the term of no more than sixty days.

The procedure of having the license altered or amended shall  be charged with a fee in the amount of one hundred rubles ascribed to the Federal Budget.

2. Should the license require introduction of any alterations or amendments concerning a description of the communications service, a territory of the license effect, or utilization of the radio frequency band, a new license shall be issued in a procedural way set up for the license issuance.

3. Should the Russian Federation legislation change, the licensing body shall be entitled on its own initiative to make alterations and amendments into the license stipulations notifying the licensee accordingly within thirty days. The notification should provide the reasons of such decision. Introduction of alterations and amendments in this case is made on a free-of-charge basis.

Article 37. Suspension of License Effect

1. Prior to suspension of the license effect the licensing body may preliminary notify of this measure, if:

1) governmental authorized bodies reveal any violations of the regulations established by the Federal laws or other regulatory legal enactments of the Russian Federation in the branch of communications;

2) governmental authorized bodies reveal any violations of the license stipulations by the licensee;

3) failure to render communications services for more than three months, including the failure to deliver such services since the first beginning day according to the license.

2. The licensing body may suspend the license effect, if:

1) there are infringements revealed which may lead to causing damage to someone’s rights, lawful interests, life or health, as well as to the support of the needs of governmental administration, including the presidential communications facilities, governmental communications, national defense facilities, national security and law enforcement;

2) annulment of the licensee’s permit to use the radio frequencies by State Commission for Radio Frequencies, if such annulment leads to impossibility to render communication services;

3) failure to fulfill by the licensee at a stated time the directions of the licensing body, prescribing to eliminate the revealed derangements, including the instructions given with the notification warning of the license suspension.

3. A notification warning of the license suspension, as well as a license suspension decision shall be forwarded by the license body to the licensee in a written form providing the reasoning for such decision or warning no later than within ten days after the decision is made or warning notification is executed.

4. The licensing body is obliged to set a reasonable term for elimination of any violations committed by the licensee leading a warning letter notifying of the oncoming license suspension. The advised trouble elimination term may not exceed six months. Should the licensee fail to eliminate such violations or troubles in the indicated term, the license body may suspend the license effect and appeal to the court of justice demanding the license abrogation.

Article 38. Revival of the License Effect

1. In case the licensee eliminates the violation that has evoked the license suspension, the licensing body will be obliged to make a decision of the license revival.

2. A conclusion statement drawn up by the State body supervising the communications sector will be required to certify the violation elimination by the licensee; this statement shall be issued no later than within ten days after the specific violation is eliminated. A decision to revive the license shall be reached no later than within ten days after the said conclusion statement is received by the licensing body.

Article 39. License Annulment

1. License annulment through a juridical procedure shall be made on the basis of a lawsuit initiated by the interested person or the licensing body in the events as follows:

1) discovery of invalid data in the documents used as the basis for having made a decision on the license issuance;

2) failure to have done away at a stated time with the circumstances which lead to the license suspension;

3) failure to have committed its obligations by the licensee assumed during the tender (auction, bidding) event, if the license has been issued considering the results of some tender (auction, bidding) event.

2. The license may be annulled by the licensing body in the following cases:

1) liquidation of a legal person or stopping its activity due to restructuring, except for its reorganization by way of fundamental conversion;

2) cessation of validity of the certificate of State registration of an individual as the private entrepreneur;

3) the licensee’s application letter requesting annulment of the license;

4) failure to have paid the license fee within three months after having notified the competitor of the license issuance.

3. If the license gets annulled, the license fee paid shall not be refunded.

4. The decision of the licensing body on the license annulment shall be made known to the licensee within ten days after its adoption, and it may be appealed juridically.

Article 40. Filling in and Keeping the License Register in the Communications Sector

1. The licensing body shall fill in and keep the license register in the communications sector. The register is to reflect the data as follows:

1) information on the licensees;

2) description of the communications services supported with the issued licenses, together with the names of territories which issued the licenses and which are authorized to render the appropriate services in;

3) date of license issuance and number;

4) license validity time;

5) reason and date of the license suspension and revival;

6) reason and date of the license annulment;

7) any other information that may be required by the licensing body dependent on the communications services description.

2. The information of the license register in the communications sector shall be made public in the scope, format and order defined by the licensing body taking into consideration any changes made from time to time in the said register.

Article 41. Confirmation of Compliance of the Communications Facilities and Services

1. In order to ensure integrity, functional stability and security of the unified telecommunication network of the Russian Federation it is obligatory that all the systems meet the specifications established for the communication facilities used in:

1) public communications networks;

2) communication processing networks and special-purpose networks, if they are interconnected to the public communications network.

2. The confirmation of compliance of the communications facilities referred to in paragraph 1 of this Article to the engineering regulations, adopted in conformity with the Russian Federation legislation of technological regulations and the specifications provided in the regulatory enactments of the Federal executive authority in the communications branch concerning the issues of application of the communication facilities, shall be carried out by their obligatory certification or adoption of the compliance declaration.

Those communication facilities liable to compulsory certification shall be provided for certification by the manufacturer or seller.

Those documents which certify compliance of the communication facilities to the acknowledged specifications, as well as communication facility test reports obtained beyond the territory of the Russian Federation, shall be recognized according to the international treaties of the Russian Federation.

The manufacturer may adopt a compliance declaration for those communication facilities which are not liable to compulsory certification.

3. The list of communication facilities liable to compulsory certification, approved by the Government of the Russian Federation incorporates the communication facilities performing the functions of: switching systems; transport systems; administration, management and monitoring systems; equipment accounting for the volume of services provided in the public communications networks; terminal equipment which may bring about malfunction of the public communications network; communication facilities of processing and special-purpose communication networks within the scope of their interconnection to the public communications networks; radio-electronic communication facilities; and the software ensuring certain functionality for the search and operative research measures.

In case of a software modification making part of some communication facility, the manufacturer, in accordance with the established procedure, may adopt a declaration of compliance of this communication facility to the specifications of the previously issued compliance certificate or to the compliance declaration adopted.

4. Certification of the communication services and the control system of quality of service shall be arranged for on a voluntary basis.

5. The Russian Federation Government defines the procedure for arrangement and conduct of operations for compulsory confirmation of the communication facilities compliance, establishes the procedure of accreditation for certification bodies, test laboratories (centers) performing the certification tests, as well approves of the rules of certification procedures.

A Federal executive body responsible for the communications sector shall supervise that the certificate and declaration holders commit their compliance obligations, the supplied communication facilities meet the certification specifications, and the manufacturer declarations are properly registered.

The Federal executive body in for the communications sector shall be also responsible for setting up a communications sector certification system incorporating the certification bodies fnd test laboratories (centers) regardless of the organizational-and-legal and ownership patterns.

6. Registration of a compliance declaration shall be charged with a fee of one thousand rubles allocated to the Federal budget.

7. The compliance certificate holder of the declaring party shall ensure conformity of a communications facility, communication facility quality-of-service control system, communication service, and quality-of-service control system to the specifications of the normative documents and command papers on whose basis a certification procedure or compliance declaration has been adopted.

8. Should an operated communication facility, supported with the compliance certificate or declaration, reveal its non-conformity to the established specifications, the certificate holder or declaration party will be obliged to remedy the revealed nonconformity at its own expense.

The term for rectification of the revealed nonconformity shall be set by the Federal executive body for the communications sector.

Article 42. Compliance Certificate Issuance and Termination for the Purposes of Compulsory Certification of Communication Facilities

1. To conduct compulsory certification of communication facility the applicant shall apply a letter to the certification body requesting for the certification event, together with the facility technical description in Russian, allowing to identify the communication facility and its technical parameters to appraise their compatibility to the established specifications. The seller-applicant shall also submit to the certification body the manufacturer’s document to the effect that a communication facility to certify, referred to in the application letter, is the manufacturer’s product.

2. The term of the application letter consideration shall not exceed thirty days after the date of receipt by the certification body of  the documents specified in paragraph 1 of this Article.

3. The certification body upon the receipt of documented results of the certification tests, within the term of no more than thirty days, shall arrive at a decision of issuance or motivated denial to issue the compliance certificate. Dependent on the certification scheme stipulated by the certification procedure regulations, the compliance certificate shall  be issued for a period of one or three years.

4. Denial to issue a compliance certificate, as well as its termination, shall be effected in cases if a communication facility doesn’t meet the established specifications, or if the applicant violates the regulations of certification performance.

5. The Federal executive body for the communications sector shall publish the information about putting the compliance certificate into to the compliance certificate register or about removal of the compliance certificate from the said register.

Article 43. Declaring Compliance and Registration of Compliance Declarations

1. The act of compliance declaration is effected through adoption by the applicant of  a declaration of compliance based both on its own proofs and the evidence provided with the aid of an accredited test laboratory (center).

By way of own proofs the applicant shall use the technical documents, results of its own examination (tests) findings and measurements, and other documents reasonably justifying the compliance of the communication facilities to the established specifications. On top to that the applicant shall include into the proof-and-evidence parcel the examination (test) and measurement finding reports (protocols), executed in the accredited test laboratory (center).

2. The declaration of compliance is to be executed in Russian and contain: name and place of the applicant; name and place of the communication facility manufacturer; technical description of the communication facility in Russian, allowing to identify it; applicant’s statement to the effect that the communication facility — being implemented to its purpose and, according to the applicant’s effort, meeting the established specifications applicable for communication facilities — will not destabilize the integrity, stable functionality and security of the unified telecommunication network of the Russian Federation; information about the conducted examinations (tests) and measurements, as well as of the documents used to confirm the communication facility compliance to the established specifications; validity and effective term of the declaration of compliance.

A form of the declaration of compliance shall be approved by the Federal executive body for the communications sector.

3. The declaration of compliance upon being executed according to established regulations shall be registered within three days by the Federal executive body for the communications sector.

The declaration of compliance shall stay valid and effective from its registration date.

4. The declaration of compliance, together with the incorporated materials and documents in evidence to its support, shall be kept for three years after its expiration. The second copy of the declaration of compliance shall be kept at the Federal executive body for the communications sector.

Chapter 7. Communication services

Article 44. Service Rendering

1. In the territory of the Russian Federation the communication services shall be supplied by communications operators to the service users according to the service provision agreements drawn up in conformity with the civil law and service supply regulations.

2. The regulations of service supply shall be approved by the Russian Federation Government.

The service supply regulations shall regulate the relations between the service users and operators reflected in a concluded and implemented service supply agreement; the regulations shall also define the procedure and reasons for the agreement service supply suspension and agreement disruption, as well as the specific profiles of services rendered, service operator’s and users’ rights and obligations, the method and procedure of financial settlements for the services rendered, the procedure of lodging and consideration of complaints and reclamations from the service users, and parties’ responsibilities.

3. Should the service user infringe the regulations established by this Federal Law, the service supply rules or service supply agreement, including the violation of the payment term for the services rendered according to the service supply agreement, the service operator shall be entitled to suspend the service supply till elimination of the violation.

In case of failure to eliminate such violation within six months from the date of receipt by the service user of the operator’s written notification warning of the intent to suspend the service supply, the service will have the right to unilaterally disrupt the service supply agreement.

Article 45. Peculiarities of Rendering Communication Services to Citizens

1. A service supply agreement to conclude with the citizens is the agreement of a public nature. The terms and conditions of such agreement should conform to the regulations of communication service supply.

2. In any event of replacement of a subscriber’s number the service operator shall notify the subscriber of a new subscriber number no less than sixty days before the event, if the replacement has not been induced by any unforeseen or emergent circumstances.

3. The service operator may not change the pattern of switching on the subscriber’s terminal equipment functioning in a separate subscriber line without a written subscriber’s consent.

4. The subscriber may demand a re-switch of its number, whereas the operator shall re-switch such number over to the subscriber premises line, provided that the operator has a technical facility for that, if the premises are located at another address in the ownership of this subscriber. A re-switch of the subscriber’s number is provided additionally.

5. Should the subscriber’s right of ownership and use of the premises, where the terminal equipment  (hereinafter — a telephone-equipped premise) is installed, become ineffective, the service supply agreement with the subscriber shall terminate. At that, the service operator who the service agreement is terminated with, on a request from the new owner of the telephone-equipped premise will be obliged to conclude with such subscriber a new service supply agreement within thirty days.

In the event that in the telephone-equipped premises there still remain some residents of the subscriber’s family, the service supply agreement shall be re-executed in the name of one of such residents in conformity the communication service supply regulations.

The service operator shall have no right to avail of the corresponding subscriber number until the adoption period of the heritage that the telephone-equipped premise makes part of, as provided in the Civil Code of the Russian Federation, expires. When such premises get inherited, a service supply agreement shall be concluded with the heir. The heir shall pay to the service operator the cost of the services provided within the period prior to his/her entry into the heirship.

Article 46. Service Operator Obligations

1. The service operator shall be obliged to:

provide services to the communication service users according the legislation of the Russian Federation, national standards, technological standards and regulations, license and service supply agreement;

adhere to the normative enactments of the Federal executive body for the communications sector in the activities of design development, civil engineering, refurbishing and operational maintenance of the communications networks and projects, build up the communications networks with regard to the requirements of ensuring the stability, security and safeness of their functionality. Any associated expenses, as well as the cost of setting up and operation of the operators’ network administration systems, together with the networks interaction with the unified telecommunication network of the Russian Federation shall be borne by the service operators;

observe the regulations of organizational and technological interaction with other communication networks, the regulations of traffic throughput and routing — as established by the Federal executive body for the communications sector, as well as the regulations of mutual settlements and compulsory payments;

present statistical accounting reports in the format and order as established by the Federal laws and other normative enactments of the Russian Federation;

for the purpose of exercise of its authorities, submit to the Federal executive body for the communications sector any requested information, including the information on the technical condition and perspectives of communication networks and facilities development, service supply terms, network interconnection, traffic throughput, applicable tariffs and settlement rates — in the format and order as established by the Federal laws and other normative enactments of the Russian Federation.

2. The service operator is obliged to create conditions for the invalids’ unhindered access to the communications facilities designated for the service users, including the service providing locations and the payment facilities at the service objects.

3. The service operator, for the purpose of making aware the service users of its network effective numbering, is obliged to set up a system of free information reference servicing, as well as to submit on a payment basis, regarding the economically justifiable expenses, information on its network subscribers to the organizations interested in setting up their own systems of the information and reference servicing.

Article 47. Benefits and Privileges for the Users of Communication Services

1. The international treaties of the Russian Federation, Federal laws and laws of the Russian Federation sovereigns may provide for certain benefits and privileges granted to some categories of the users of communication services, thus, establishing the priorities in service rendering and procedural order and size of payment for the services provided.

2. The service users referred to in paragraph 1 of this Article shall pay for the communication services supplied in full, and their expenses will be refunded later from the budget of the appropriate level.

Article 48. Utilization of Languages and Alphabets for the Purpose of Communication Service Supply

1. In the Russian Federation the service paperwork in the communications sector shall be executed in Russian.

2. Any relations between the service operators and service users taking place during the communication service supply in the territory of the Russian Federation shall be established in Russian.

3. Addresses of the senders or recipients of telegrams, post mails or money transfers within the territory of the Russian Federation shall be executed in Russian.

Addresses of the senders or recipients of telegrams, post mails or money transfers made within the territories of the republics which belong to the Russian Federation may be executed in the national languages of the corresponding republics on condition that such addresses of the senders and recipients be duplicated in Russian.

4. The text of a telegram shall be scribed in the letters of the Russian or Latin alphabet.

5. International messages communicated by the telecommunication or mail service networks shall be processed in the languages specified by the international treaties of the Russian Federation.

Article 49. Communication Sector Time Accounted for

1. In the territory of the Russian Federation the telecommunication and mail service operators use the universal accounting Moscow time in their technological processes of message transfer and receiving.

2. In the international communications the accounting time is specified by the Russian Federation international treaties.

3. Notification of the service user(s) of the time of service supply requiring one’s presence shall be made by the service operator with the indication of the time effective in the time zone of the user(s) location.

Article 50. Telecommunication of Service Employees

1. The service employee telecommunication is used for the purposes of operational technological and administrative control of the service networks, and it may not be used to render services based on the payable service supply agreement.

2. The service operators provide the employee service telecommunication in a procedural way specified by the Federal executive body for the communications sector.

Article 51. Providing Communication Services for the Governmental Purposes

1. Rendering communication services for the needs of the Government shall be carried out on a onerous contractual basis concluded according to the Federal laws, normative enactments of the President of the Russian Federation, laws of the Russian Federation sovereigns, and normative enactments of the executive bodies of the Russian Federation sovereigns — in the scope as provided by the appropriate funding from the budgets reserved for payment for communication services.

2. The expenditures allocated for payment for communication services for the needs of the Government are provided for by the laws on the relevant budgets in a separate line.

Article 52. Calling the Emergency Field Services

1. The service operator shall provide a free all-the-day-round capability for the service users to call the field emergency services (fire prevention brigade, the police, medical emergency, gas emergency and any other emergency service the list of which is specified by the Russian Federation Government).

A free call to the emergency field services shall be provided to every communication service user through dialing of the numbers unique in the whole territory of the Russian Federation for every particular emergency field service.

2. The expenses suffered by the service operators inflicted by the calls to the emergency field services, including the expenses of having the emergency field services interconnected to the public communications network and the expenses of transmission and receipt of the emergency messages, shall be refunded on the basis of agreements to conclude by the service operators with the bodies and organizations which have set up the appropriate emergency field services.

Article 53. Service Operators’ Data Bases on the Subscribers

1. Any information about the subscribers and communication services provided to them, which became known to the service operators due to the execution of the service supply agreements, shall be regarded as confidential and subject to protection in conformity with the legislation of the Russian Federation.

To the information pertaining to subscribers there may be attributed a family and first names, patronymic, citizen-subscriber’s nick-name, subscriber’s legal person title (firm-name), full names of the legal person leader and employees, subscriber address, address of the terminal equipment location, subscriber numbers, and other data allowing to identify the subscriber or its (his/her) terminal equipment, including data from the service supply settlement and billing data bases, data about call connections, traffic, and subscriber’s payments.

2. Communications service operators may utilize their subscriber data bases to provide the information and reference service, including information preparation and propagation by various methods — in particular, on magnetic carriers and by means of telecommunication facilities.

When preparing data for the information and reference service there may be used a full name of the subscriber-citizen, his/her subscriber number, title (firm-name) of the subscriber-legal person, subscriber’s indicated subscriber numbers and addresses of terminal equipment installation locations.

Information on the subscriber-citizens may not be included into the data designated for the information and reference service, as well as may not be used for reference and any other informative purposes by the service operator or third parties, without written consent of the subscriber-citizens in question.

Presentation of information about the subscriber-citizens to the third parties may be allowed only on written consent by the subscribers, except for the occasions as provided by the Federal laws.

Article 54. Payment for Communication Services

1. Payment for the communication services shall be made in cash or by clearing settlements directly after such services have been provided by advance or deferred payment.

If otherwise is not established by the legislation of the Russian Federation, a procedural way and format of payment for the communication services rendered shall be defined by a service supply agreement. In the event of governmental regulation of service tariffs of the particular service operator, on a subscriber-citizen’s request the service operator will be obliged to provide to the subscriber an opportunity of installment payment for the access to the service network for the period of, at least, six months on terms of the initial payment not exceeding thirty per cent of the rates established.

Payment for the local telephone connections shall be made according to the subscriber-citizen’s choice of whether the subscriber contractual fee or periodical payment system.

2. The basis for financial settlements for the communications services supplied shall be the readings of communication equipment reflecting the scope of services provided by the operator and taking into consideration the terms of the service supply agreement concluded with the service user.

3. In case a service user-legal person violates its commitment to pay for the communication services as prescribed by a service supply agreement, the service operator will be entitled to make settlements without payers acceptance based on the readings of the communication equipment accounting for the scope of services rendered.

Article 55. Complaining, Raising Claims and Procedures of Their Settlement

1. The communication service user may appeal administratively or in court against the decision and action (misacting) of some body or a functionary, service operator who deal with the supply of communication services or ensure operational availability of the radio frequency spectrum.

2. The communications operator shall have a book of complaints and proposals which is to be produced at a first request of a communications service user.

3. Consideration of complaints put forward by the communication service users shall take place in a procedural order established by the legislation of the Russian Federation.

4. In case of failure to execute or improper execution of the commitments arisen from the communication service supply agreement, the user of the services prior to appealing to the court of justice shall address one’s claim to the service operator.

5. The claims may be raised within the following time periods:

1) within six months from the date of service supply, denial of supply, or from the date of putting forward an invoice the service supplied — concerning the issues of denial to supply the communications service, untimely or improper execution of one’s obligations arisen from the service supply agreement, or no execution or improper execution of the operations in the telecommunications sector (except for complaints associated with the telegraph messages);

2) within six months from the date of dispatch of a postal mail, postal money transfer — on the issues associated with failure to deliver, untimely delivery, damage or loss of the postal mail, non-payment or untimely payment of the transferred moneys;

3) within one month after the date of dispatch of a telegram — on the issues associated with failure to deliver, telegram untimely delivery, or distortion of the telegram text changing its meaning.

6. Attached to the claims there should be a copy of the service supply agreement or another document certifying the fact of having such agreement concluded (a receipt, enclosure list, etc.), together with other documents required to consider the essence of the claim and containing the information about non-execution or improper execution of one’s obligations under the communication service supply agreement, or containing information about the damage caused and its size should the claim raised concern indemnification.

7. A complaint shall be given consideration no later than sixty days after its registration. The consideration results shall be made known to the claimant in a written form.

8. For some types of complaints there shall be applicable individual periods of their consideration:

1) complaints associated with postal mails and postal money transfers send (transferred) within the territory of one residential settlement shall be considered within five days after the date of complaints registration;

2) complaints associated with any other postal mails and postal money transfers shall be considered within the period specified in paragraph 7 of this Article.

9. If the claim gets totally or partially overruled, or there is no answer to it within the period established for the claim consideration, the communication service user shall be entitled to appeal to the court of justice.

Article 56. Persons Who May Raise the Claims and the Locations for the Purpose

1. The right to raise a claim may be enjoyed by the following persons:

a subscriber with regard to the obligations arisen from one’s communications service supply agreement;

a service user who has been denied to be supplied with such services;

a dispatcher or recipient of the postal mails in cases specified in sub-paragraphs 2 and 3 of paragraph 5 of Article 55 of this Federal Law.

2. Any complaints shall be forwarded to the service operator that has concluded the communications service supply agreement or refused to do that.

Complaints associated with the receipt of delivery of the postal or telegraph mails may be addressed to either the service operator accepted the mail or the service operator at the mail destination location.

Chapter 8. Universal services

Article 57. Universal services

1. Supply of the universal services is guaranteed in the Russian Federation.

This Federal Law attributes to the universal services:

the services of the telephone communication together with the pay phones;

the services of data transfer and providing access to the Internet network together with the points of multiple access.

2. The procedural order and time period of rendering the universal services, as well as control over the tariffs for the communication universal services, is defined by the Government of the Russian Federation on presentation by the Federal executive body for the communications sector based on the following principles:

the time duration required for the service user to reach a pay phone with no aid of any transport facilities should not exceed one hour;

in each residential settlement there should be, at least, one pay phone installed providing free access to the emergency field services;

in the settlements with population no less than five hundred people there should be, at least, one point arranged for providing multiple access to the Internet network.

Article 58. Operator providing the universal services

1. Supply of the universal services shall be carried out by the universal service operators selects on a tender basis or appointed in conformity with paragraph 2 of this Article in sovereign of the Russian Federation.

2. The number of the universal services operators functioning in the territory of the Russian Federation sovereign, taking into consideration such operator’s specific features, shall be defined to provide the universal services to all the potential users.

The right to supply the universal services shall be granted on a tender basis to a public communications network operator in a procedural order established by the Government of the Russian Federation.

In case there are no requests to participate in the tender, or it’s impossible to determine the winner, the supply of the universal services in the particular territory shall be fixed by the Russian Federation Government with the operator having a significant status in the public communications network on presentation by the Federal executive body for the communications sector.

The operator having a significant status in the public communications network shall not have the right to refuse from the obligation rested with it.

Article 59. Reserve Fund of universal servicing

1. To indemnify losses to the operators of universal services inflicted by the supply of the universal services there shall a Reserve Fund set up for the purpose.

2. Finances from the universal services Reserve Fund shall be formed and spent exclusively for the purposes provided for by this Federal Law in the procedural order defined by the Government of the Russian Federation.

3. All operators of the public communications network shall be obliged to contribute allocations (non-tax payments) to the universal services Reserve Fund for the purposes specified by this Federal Law.

Article 60. Sources of Formation of Universal Service Reserve Fund

The sources of formation of the Universal Service Reserve Fund shall be the binding allocations of finances by the operators of the public communications network, as well as any other sources not prohibited by the law.

Article 61. Indemnification of Losses Inflicted by the Supply of Universal Communication Services

1. The losses suffered by the operators of  universal services inflicted by the supply of the universal services shall be indemnified in the amount not exceeding the size established for the purpose by the tender; or, if there has been no tender arranged, the indemnification shall cover a maximum size of the loss within the time period not exceeding six months after the termination of the fiscal year, if otherwise has not been specified by the tender terms and conditions.

The maximum size of indemnification amount to cover losses inflicted by the supply of the universal services shall be defined as the difference between the incomes and the economically justified expenses of the universal services operator and the expenses of the operator if it wouldn’t have been placed under the burden of having to supply the universal services, if otherwise has not been specified by this Federal Law.

2. The universal services operator shall separately account for receipts and expenditures for every type of its actual activity, taking into consideration the communication services provided and the parts of the telecommunication network used for the purpose.

3. The procedural order of indemnification for the losses inflicted by supply of the communication universal services shall be specified by Government of the Russian Federation.

Chapter 9. Protection of rights of communication service users

Article 62. Rights of the Communication Service Users

1. A service user shall have the right to transfer a communication message, send a post mail or make a money transfer, as well as receive a telecommunication message, post mail or postal money transfer, or refuse to receive any of these, if otherwise is not stipulated by the Federal laws.

2. The terms of protection of rights of the communication service users in the events of rendering the telecommunication or postal services, as well as the guarantees of provision of communication services of the proper quality, the right to receive the necessary and authentic information about the communication services and operators, as well as the reasons, size and procedural order of indemnification for damage inflicted due to non-execution or improper execution of of the obligations arisen from the communication service supply agreement, alongside with the mechanism of realization by the communication users of their rights, are specified by this Federal Law, Civil Code, Russian Federation Law on Protection of Consumer Rights, and normative enactments of the Russian Federation issued on the basis of all these regulations.

Article 63. Confidentiality of Communication Services

1. In the territory of the Russian Federation there exist guaranties of confidentiality of correspondence, telephone negotiations, postal mails, telegraph and any other messages transferred by the telecommunication networks and postal networks.

Limitation of rights of the confidentiality of correspondence, telephone negotiations, postal mails, telegraph and any other messages transferred by the telecommunication networks and postal networks shall be admitted only in cases provided for by the Federal laws.

2. The communication service operators are obliged to ensure preservation of communications confidentiality.

3. Except for the occasions established by the Federal laws, a decision of the court of justice shall be required to allow to the persons, who are not the authorized employees of the communications operator, to examine postal mails and enclosures, to get familiarized with the information and documented correspondence transferred by the telecommunication and postal networks.

4. The information about the message, postal mails and money transfers delivered by the telecommunication and postal communication networks may be presented only to the senders and recipients or to their authorized representatives, if otherwise is not provided for by the Federal laws.

Article 64. Responsibilities of the Communication Operators and Limitation of Service User’s Rights During the Search and Operative Research Measures and Investigation Actions

1. The service operators shall present to the authorized State bodies conducting the operative research activities the information on the communication service users and the services supplied to them, as well as any other information required for such bodies to resolve their tasks in the cases as provided by the Federal laws.

2. The service operators shall implement the requirements established by the Federal executive body for the communications sector in coordination with the authorized State bodies performing the operative research activities with regard to the communications networks and facilities, as well as take steps to prevent discovery of the organizational and tactical techniques of the indicated activities.

3. Suspension of communication services provision to the legal persons or individuals shall be effected by the service operators under the pretext of written instructions of a chief officer of the body performing the operative research activities, as provided by the Russian Federation Law on the operative research activities.

The service operators shall resume the supply of communication services based on a decision of the court of justice or a written motivated decision of a chief officer of the body performing the operative research activities who has decided to suspend supply of communication services.

4. The procedural way of interaction of the service operators with the authorized State bodies performing the operative research activities shall be established by the Government of the Russian Federation.

5. In the process of investigative activities conducted by the authorized bodies, the service operators shall render their assistance as provided by the procedural criminal law.

Chapter 10. Communication network management in situations
and conditions of emergency

Article 65. Management by Public Communication Network

1. In cases of emergency the management by a public communication network shall be executed by the Federal executive body for the communications sector in coordination with the centers controlling the special-purpose communication networks and having interconnection with the public communication network through the processing communication networks.

2. Temporary special-purpose management bodies may be set up and the appropriate authorities of the Federal executive body for the communications sector transferred to them, according to the relevant normative enactments of the Russian Federation concerning institution of the state of emergency, to coordinate the operations of doing away with the circumstances that have brought about the state of emergency.

Article 66. Foreground Use of Communication Networks and Facilities

1. In the emergency situations of the natural or man-caused character, specified by the legislation of the Russian Federation, the authorized State bodies in the procedural way defined by the Government of the Russian Federation shall be entitled to a foreground utilization of any communication networks and facilities, including suspension or limitation of the use of such   communication networks and facilities.

2. The communication service operators shall assign absolute priority to any messages having to do with the man’s safety on the water, land, in the air and in the space, as well as to the messages concerning big accidents, catastrophes, epidemics, or natural calamities having impact on the urgent arrangements of ensuring the governmental ruling, national defense, State security and law and order.

Article 67. Indemnification for Expenditures to Communication Institutions

Expenditures inflicted to the communications institutions in the result of the use, suspended and (or) limited use of their communication networks and facilities in conformity with Article 66 of this Federal Law shall be indemnified at the expense of the appropriate budgets in a procedural order established by the Government of the Russian Federation.

Chapter 11. Liability for violation of the Russian Federation legislation
effective in communications sector

Article 68. Liability For Violation of the Russian Federation Legislation Effective in Communications Sector

1. In cases and in a procedural order defined and established by the legislation of the Russian Federation, those persons and individuals which have violated the RF legislation effective in the communications sector shall be subject to the criminal, administrative and civil liability.

2. According to the civil legislation, any damages inflicted in the result of unlawful actions (inaction) of the State bodies, bodies of local self-government or by their officers shall be indemnified to the service operators and users.

3. The service operators shall face the property accountability for any loss or damage of the valuable postal mail, for shortages of enclosures in the postal mails in the size of the declared value, for distortion of the telegram texts changing the meaning, telegram non-delivery or telegram delivery to the addressee upon expiration of twenty four hours from the moment of telegram execution in the amount of the telegram cost paid, except for the telegrams addressed to the residential settlements without a telecommunication network.

4. The amount of liability for non-execution or improper execution by the service operator of its obligations with regard to sending or delivery of any other registered postal mails shall be established by the Federal laws.

5. The employees of the service operators shall be materially liable to their employers for the loss or delayed delivery of all kinds of postal and telegraph mails, as well as for any damage inflicted by their fault to the postal mail enclosures occurred during their work hours in the amount of liability that the service operator is liable to indemnify to its service users, provided that any other liability extent is not stipulated by the relevant Federal laws.

6. The service operator shall not be liable for non-execution or improper execution of its obligations with regard to sending or delivery of postal mails, if it is proved that such non-execution or improper execution of its obligations has occurred whether due to the fault of a communication service user or because of some force-majeure circumstances.

7. In the cases as provided for in paragraph 3 of Article 44 of this Federal Law the service user shall be obliged to recompense the service operator for the damages inflicted.

Chapter 12. International collaboration of Russian Federation
in vicinity of communications

Article 69. International Collaboration of the Russian Federation in the Area of Communications

1. International collaboration of the Russian Federation in the field of communications shall be based on the commonly accepted principles and norms of the international law and international treaties of the Russian Federation.

In international activities in the field of communications the Federal executive body for the communications sector shall function as the communications administration of the Russian Federation. Within the framework of its authorities the communications administration of the Russian Federation shall present and protect the interests of the Russian Federation in the spheres of telecommunications and postal service; it shall interact with the communications administrations of foreign nations, intergovernmental and international non-governmental communications organizations, as well as coordinate the issues of international co-operation in the field of communications achieved by the Russian Federation, the Russian Federation citizens and organizations, and makes sure that the obligations of the Russian Federation arisen from its international treaties on communications are met.

2. Foreign organizations and citizens participating in the communications sphere operations in the territory of the Russian Federation shall enjoy a regime established for the Russian Federation citizens and institutions to such an extent which is provided to a corresponding nation to the citizens and organizations of the Russian Federation, if otherwise is not stipulated by the international treaties of the Russian Federation or its Federal laws.

Article 70. Regulation of Activities in the Area of International Communications

1. Relations associated with activities in the area of international communication in the territory of the Russian Federation shall be regulated by the Russian Federation international treaties in the sphere of communications, as well as by this Federal Law, other Federal laws and other normative enactments of the Russian Federation.

2. The procedure of settlements among the international telecommunication operators shall be established on the basis of international operational agreements and with respect to the recommendations of the international telecommunication institutions to which the Russian Federation belongs.

3. It is binding in the territory of the Russian Federation for the purposes of rendering the communication services within the world info-communicational networks to:

set up the Russia’s segments of the world communications networks ensuring interaction with the unified communication network of the Russian Federation;

set up the Russia’s communication service operators meeting the requirements up to this Federal Law;

ensure the economic, social, defensive, ecological, informational and other kinds of safety and security.

Article 71. Transporting the Terminal Equipment across the Customs Boarder of the Russian Federation

1. Transportation of the terminal equipment across the customs boarder of the Russian Federation, including the import by individuals into the customs territory of the Russian Federation of the terminal equipment for the purposes of using it in the communications networks for the personal, family, domestic or any other needs having nothing to do with entrepreneurial activities shall be   carried out in accordance with the tariff legislation of the Russian Federation without any preliminary obtained permit to import the said equipment.

2. The list of terminal equipment and procedural order of its use in the territory of the Russian Federation shall be determined by the Government of the Russian Federation.

Article 72. International Mail Service

Communications Administration of the Russian Federation shall arrange for the international  mail service, alongside with specifying locations of the international postal mail exchange in the territory of the Russian Federation.

Chapter 13. Conclusive and transitional regulations

Article 73. Bringing the Legislative Acts in Agreement with this Federal Law

From January 1, 2004 there shall be acknowledged as no longer valid and effective the laws as follows:

Federal Law of February 16, 1995 No. 15-FZ "On communications " (Legislative proceedings of the Russian Federation, 1995, No. 8, page 600);

Federal Law of January 6, 1999 No. 8-FZ "On introduction of alterations and amendments in the Federal law On Communications” (Legislative proceedings of the Russian Federation, 1999, No. 2, page 235);

paragraph 2 of Article 42 of Federal Law of July 17, 1999 No. 176-FZ "On postal service" (Legislative proceedings of the Russian Federation, 1999, No. 29, page 3697).

Article 74. Effectiveness of this Federal Law

1. This Federal Law shall become valid and effective from January 1, 2004, except for paragraph 2 of Article 47 of this Federal Law.

2. Paragraph 2 of Article 47 of this Federal Law shall become valid and effective from January 1, 2005.

Vladimir Putin,

President of the Russian Federation

Moscow, Kremlin

July 7, 2003

No. 126-FZ