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COMMU.N ICATIO.NS LICENSING RULES

2017

Communications Licensing Rules 2017

Arrangement of Sections

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COMMUNICATIONS LICENSING RULES 2017
Arrangement of Sections
Rule
PART I - PRELIMINARY
l
2
3

5

Short title................................................................................................................ 5
Commencement ..................................................................................................... 5
Definitions ............................................................................................................. 5

PART II -APPLICATIONS FOR NETWORK OPERATOR
LICENCES AND REGISTRATION AS SERVICE PROVIDERS
4
5
6

6

Network operator licence application process ....................................................... 6
Service provider registration process ..................................................................... 6
Obligation to notify ................................................................................................ 7

PART Ill 7
8
9
10
11
12

LICENCE AND REGISTRATION FEES

7

Annual return to be lodged by the licensee ............................................................ 7
Audit requirements ................................................................................................ 8
Invoicing of licence fee or registration fee ............................................................ 8
Payment of licence fee or registration fee .............................................................. 9
Pro rata reduction of fixed amount in the first year ............................................... 9
Calculation of the licence fee and registration fee ................................................. 9

SCHEDULE 1
SCHEDULE 2SCHEDULE 3~ing5omofAtonga•

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Communications Licensing Rules 2017

Rule PART I PRELIMINARY

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COMMUNICATIONS LICENSING RULES 2017
COMMUNICATIONS ACT 2015
IN EXERCISE OF THE POWERS conferred by section 47 of theCommunications Act 2015, the Regulator hereby makes the following Rules-

PART I - PRELIMINARY

1

Short title
These Rules may be cited as the Communications Licensing Rules 2017.

2

Commencement
These Rules shall come into force on the date they are published in the Gazette.

3

Definitions(1)

Subject to subsection (2), unless the context otherwise requires, terms used inthese Rules have the same meaning as in the Act.

(2)

In these Rules, unless the context otherwise requires:"Act" means the Communications Act 2015; and"financial year" means a period of 12 months ending on 30 June.

The following terms are defined in the Act:(a)hlingfom of A

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Communications Licensing Rules 2017(b)

network operator;(c)

Regulator;(d)service provider.

PART II -APPLICATIONS FOR NETWORK OPERATOR
LICENCES AND REGISTRATION AS SERVICE PROVIDERS
4

Network operator licence application process( 1)

5

Every application for a network operator licence shall be:(a)in written or electronic form;(b)in the form set out in Schedule 1;(c)delivered to the Regulator at the contact details notified by the Regulator
on its website; and(d)shall be accompanied by:(i)the attachments required by the form in Schedule l; and(ii)

the application fee set out in Schedule 3.

(2)

The Regulator may request the applicant to give the Regulator further
information about the application within 20 business days after the Regulator
receives the application, attachments and application fee.

(3)

The Regulator shall endeavour to make a decision to accept or refuse anapplication for a network operator licence in accordance with section 32 of the
Act and issue the applicant with a licence by the later of:(a)

20 business days after the Regulator receives the application,
attachments and application fee in accordance with this section 4; and(b)

20 business days after the Regulator receives the further information
requested by the Regulator under subsection (2).

Service provider registration process( l)Page 6Every application for registration as a service provider shall be:(a)in written or electronic form;(b)in the form set out in Schedule 2;(c)delivered to the Regulator at the contact details notified by the Regulator
on its website; and(d)shall be accompanied by:(i)the attachments required by the form in Schedule 2; and(ii)

the application fee set out in Schedule 3.
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Communications Licensing Rules 2017
(2)

The Regulator may request the applicant to give the Regulator further• information about the application within 10 business days after the Regulator
receives the application, attachments and application fee.

(3)

The Regulator shall make a decision to accept or refuse an application forregistration as a service provider in accordance with section 41 and notify theapplicant in writing by the later of:

(4)

6

(a)

10 business days after the Regulator receives the appli<;:ation,
attachments and application fee in accordance with section 5; and(b)

10 business days after the Regulator receives the further information
requested by the Regulator under subsection (2).

If the Regulator does not notify the applicant in writing of a decision to accept
or refuse an application fc;>r registration as a service provider by the daterequired by subsection (3 ), the applicant shall be deemed to be registered as aservice provider.

Obligation to notify(1)

A network operator shall promptly notify the Regulator in writing of any
change in the information provided to the Regulator in the form (but not
attachments) submitted in accordance with section 4.

(2)

A service provider shall promptly notify the Regulator in writing of any change
in the information provided to the Regulator in the form (but not attachments)
submitted in accordance with section 5.

PART Ill 7

Rule 6LICENCE AND REGISTRATION FEES

Annual return to be lodged by the licensee
( 1)

(2)

A network operator shall, within 60 business days from the end of a financial
year, lodge with the Regulator an annual return for that financial year, in theform notified by the Regulator (if any), reporting:{a)the amount of its eligible revenues for that financial year;(b)

the amount of licence fee payable by the network operator for that
financial year, calculated in accordance with section 36 of the Act; and{c)sufficient details of the method used to calculate the amount in (b) as
would enable the Regulator to verify the network operator's calculations.

A service provider shall, within 60 business days from the end of a financial
year, lodge with the Regulator an annual return for that financial year, in theform notified by the Regulator (if any), reporting:(a)~ingfomof A"tongaV

the amount of its eligible revenues for that financial year;

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89Communications Licensing Rules 2017(b)

the amount of registration fee payable by the service provider for that
financial year, calculated in accordance with section 43 of the Act; and(c)sufficient details of the method used to calculate the amount in (b) as
would enable the Regulator to verify the service provider's calculations.

The Regulator may notify network providers and service providers of the form
in which annual returns referred to in subsections (1) and (2) shall be lodged(including, but not limited to, by publishing the form on its website).

Audit requirements( 1)

As soon as practicable after submitting an annual return under section 7, a
network operator or service provider shall submit to the Regulator a certificate
signed by a qualified auditor, stating that the reported eligible revenues are trueand correct in all respects.

(2)

A person is a qualified auditor if they are an auditor who is qualified under
section 208 of the Companies Act 1995.

Invoicing of licence fee or registration fee(1)Subject to subsection (3)(b), the Regulator shall invoice a network operator orservice provider for the licence fee or registration fee (as applicable) in two
equal instalments.

(2)

The invoice for the first instalment under subsection ( 1) shall be issued within
20 business days of lodgement by the network operator or service provider of
the annual return referred to in section 7.

(3)

The invoice for the second instalment under subsection (1):Page 8(a)shall be issued within 20 business days of the date that is 6 months after
lodgement by the network operator or service provider of the annual
return referred to in section 7; and(b)

may reflect an adjusted amount that is equal to:(i)the licence fee or registration fee that would have been calculated
if audited financial results submitted in conjunction with thecertificate mentioned in section 8 had been used for the calculationof the licence fee or service provider fee instead of information inan annual return lodged under section 7;(ii)

less the amount of the first instalment invoiced undersubsection (2).

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Rule 10

Payment of licence fee or registration fee(1)

A licensee shall pay the licence fee or registration fee to the Regulator no later
than 20 business days after the Regulator issues the licensee with an invoice
under section 9 specifying the amount of licence fee or registration fee payable.

(2)

A licensee shall pay the licence fee or registration fee by cash or a cheque drawn
on a business account, delivered to a payment intake point as notified by theRegulator from time to time.

Pro rata reduction of fixed amount in the first year
( 1)

Where a network operator obtains a licence after the first day of a financial
year, the fixed amount payable by the network operator under section 36 of the
Act shall be reduced pro rata by the number of days the network operator did
not hold a licence for that financial year.

(2)

Where a service provider is registered after the first day of a financial year, thefixed amount payable by the service provider under section 43 of the Act shallbe reduced pro rata by the number of days the service provider was notregistered for that financial year.

Calculation of the licence fee and registration fee
The following amounts required for the calculation of the fees under sections 36 and
43 of the Act are set out in Schedule 3 of these rules:( 1)

threshold amount;(2)

fixed amount; and(3)

fixed percentage.

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Communications Licensing Rules 2017

SCHEDULE 1

SCHEDULE 1

Application for network operator licence
Date of application
Full legal name of applicant
If the applicant is not a natural person,
full name of the person signing theconfirmation below under theauthority of the applicant

Contact details'

Postal address
Telephone number
Email address (if any)
Website (if any)

Eligibility requirements
Please tick the appropriate box (selectone only):

The applicant is a:

D company as defined under the Companies Act
1995 ORD natural person who is a citizen of the Kingdom
and of at least 18 years of age OR

D partnership, one of the members of which is a
citizen of the Kingdom and of at least 18 yearsof age OR

D charitable trust, incorporated society, or otherbody organised under a law of the Kingdom
that has capacity to contract OR

D government school, recognised school orregistered school under the Education Act OR

D entity listed in Schedule I of the Public Service
Act 2002
Details of prior infringements andnon-compliance with the conditions ofa communications licence in country
by the applicant

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Communications Licensing Rules 2017

SCHEDULE 1

Details of prior convictions forunlawful conduct relating todishonesty in the provision ofcommunications services in any
country by:(a) the applicant;(b) ifthe applicant is a partnership,
any of the partners; and( c) if the applicant is a company, anyof the directors of the applicant.
If the applicant is a natural person, has
the applicant ever been declaredbankrupt in any country? If yes,
please provide details.
If the applicant is a partnership, haveany of the partners ever been declaredbankrupt in any country? If yes,
please provide details.

If the applicant is a company, have anyof the directors of the applicant everbeen declared bankrupt in any
country? If yes, please provide details.

Confirmation
I confirm that:•

I am the applicant or am
acting under the applicant's
authority; and•the information provided inthis application is complete
and correct.

Signature of applicant or person acting under theapplicant's authority

Attachments

Applicants are required to attach the following information and copies of any
supporting documentation to an application for a networ~ operator licence:
1. Details of any licence under the Communications Act 2015 held by:(a) the applicant;(b) if the applicant is a partnership, any of the partners; and(c) ifthe applicant is a company, any of the directors of the applicant.
2. The applicant's proposed technical and service roll-out.
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Communications Licensing Rules 2017

3. A description of the nature of the communications facilities and communications
services, .area of coverage and the types of technology to be used by the applicant.
4. If the applicant is a company:(a) a copy of the applicant's:(i) certificate of incorporation;(ii) company constitution;(iii)current company extract from the Companies Office;(iv)latest annual financial statements audited by a qualified auditor orin such other form as approved by the Regulator; and(v) latest annual report;(b) details (including name, birthdate and contact details) about each directorof the applicant;(c) details (including name, birthdate and contact details) about each direct
or indirect shareholder of the applicant with an direct or indirect interestin the applicant of over 5%; and(d) for each natural person referred to in (b) or (c), copies of proof of theiridentity (including name, birthdate and contact details).
5.

If the applicant is ·a natural person:(a) proof of their identity (including name, birthdate and contact details); and(b) evidence of their citizenship of the Kingdom.

6. If the applicant is a partnership:(a) a copy of:(i) any written partnership agreement;(ii) the partnership's latest financial statements audited by a qualified
auditor or in such other form as approved by the Regulator; ·(iii)evidence of that a member of the partnership is a citizen of theKingdom;(b) for each partner proof of identity (including name, birthdate and contact
details).
7. If the applicant is a charitable trust, an incorporated society, or other bodyorganised under a law of the Kingdom that has capacity to contract, evidence ofthat status.

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SCHEDULE 1

8. If the applicant is a government school, evidence of its establishment under
section 17 of the Education Act.
9. If the applicant is a recognised school, a copy of the applicant's certificate ofrecognition under the provisions of the Education Act.
I 0. If the applicant is a registered school, a copy of the applicant's certificate ofregistration under the provisions of the Education Act.

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Communications Licensing Rules 2017

SCHEDULE 2SCHEDULE 2
Application for registration as a service provider

Date of application
Full legal name of applicant

If the applicant is not a natural person,
full name of the person signing theconfirmation below under theauthority of the applicant
Contact details

Postal address

Telephone number
Email address (if any)
Website (if any)
Eligibility requirements

Please tick the appropriate box (selectone only):tJ

The applicant is a:0company as defined under the Companies Act
1995 ORo · natural person who is a citizen of the Kingdom
and of at least 18 years of age OR

0partnership, one of the members of which is a
citizen of the Kingdom and of at least 18 yearsof age ORDcharitable trust, incorporated society, or otherbody organised under a law of the Kingdom thathas capacity to contract ORDgovernment school, recognised school orregistered school under the Education Act ORD

entity listed in Schedule 1 of the Public Service
Act 2002

Details of prior infringements andnon-compliance with the conditions ofa communications licence in country
by the applicant

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Communications Licensing Rules 2017
Details of prior convictions forunlawful conduct relating todishonesty in the provision ofcommunications services in any
country by:(a) the applicant;(b) if the applicant is a partnership,
any of the partners; and(c) ifthe applicant is a company, anyof the directors of the applicant.

If the applicant is a natural person, has
the applicant ever been declaredbankrupt in any country? If yes,
please provide details.
If the applicant is a partnership, haveany of the partners ever been declaredbankrupt in any country? If yes,
please provide details.
If the applicant is a company, have anyof the directors of the applicant everbeen declared bankrupt in any
country? If yes, please provide details.
,,

Confirmation

I confirm that:•

I am the applicant or am
acting under the applicant's
authority; and•the information provided inthis application is complete
and correct.

Signature of applicant or person acting under theapplicant's authority

Attachments

Applicants are required to attach the following information and copies of any
supporting documentation to an application for registration as service provider:
1. Details of any licence under the Communications Act 2015 held by the applicant,by:(a) the applicant;(b) if the applicant is a partnership, any of the partners; and.Ringbom of &tongaV

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Communications Licensing Rules 2017(c) ifthe applicant is a company, any of the directors of the applicant.
2. The applicant's proposed technical and service roll-out.
3. A description of the nature of the communications services and area of coverage,
and the types of technology to be used by the applicant.
4. If the applicant is a company:(a) a copy of the applicant's:(i) certificate of incorporation;(ii) company constitution;(iii)current company extract from the Companies Office;(iv)latest annual financial statements audited by a qualified auditor orin such other form as approved by the Regulator; and(v) latest annual report;(b) details (including name, birthdate and contact details) about each directorof the applicant;(c) details (including name, birthdate and contact details) about each direct
or indirect shareholder of the applicant with an direct or indirect interestin the applicant of over 5%; and(d) for each natural person referred to in (b) or (c ), copies of proof of theiridentity (including name, birthdate and contact details).
5. If the applicant is a natural person:(a) proof of their identity (including name, birthdate and contact details); and(b) evidence of their citizenship of the Kingdom.
6. If the applicant is a partnership:(a) a copy of:(i) any written partnership agreement; and(ii) the partnership's latest financial statements audited by a qualified
auditor or in such other form as approved by the Regulator;(iii)evidence of that a member of the partnership is a citizen of theKingdom;(b) for each partner proof of identity (including name, birthdate and contact
details).

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Communications Licensing Rules 2017
7. If the applicant is a charitable trust, an incorporated society, or other bodyorganised under a law of the Kingdom that has capacity to contract, evidence ofthat status.
8. If the applicant is a government school, evidence of its establishment under
section 17 of the Education Act.
9. If the applicant is a recognised school, a copy of the applicant's certificate ofrecognition under the provisions of the Education Act.
10. If the applicant is a registered school, a copy of the applicant's certificate ofregistration under the provisions of the Education Act.

1'

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Communications Licensing Rules 2017
SCHEDULE 3

Fees and amounts payable by network operators and service providers
Type of fee or amountAmountReference

Application fee

TOP 200

subsection 47(1)(b) of the Act

Threshold amountTOP 250,000

Fixed amount

TOP 10,000

Fixed percentage

1.50%

'

subsection 36(4) of the Act
subsection 43(4) of the Act
subsection 36(3) of the Act
subsection 43(3) of the Act
subsection 36(5) of the Act
subsection 43(5) of the Act

NOTE: These fees will expire after 3 years from the date on which they came into force (seesections 36(5)(a) and 43(5)(a) of the Act). After this time, new fees will be set by an amendment tothese rules.

Made at Nuku'alofa thisJ,a M au"1£10EC.C.
70NG~

i istry of Meteorology,
Energy, Ini rmation, Disaster
Management, Environment, Climate
Change and Communications

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