New Telecommunications and Scarce Resources Licensing Regulation

The Government has approved the new Regulation on the Licensing of Telecommunications and Scarce Resources, a diploma that repeals the regime previously provided for in Decree No. 26/2017, of 30 June, revising the legal framework applicable to the licensing of the provision of telecommunications services and the use of scarce resources in Mozambique.

The Regulation lays down new rules for the allocation, renewal, transmission and revocation of telecommunications licences, as well as for the use of radio frequency numbering and spectrum resources. It also introduces a specific framework for spectrum leasing and sharing, as well as for the licensing of satellite radio services.

1. Main changes

i. Reorganization of the licensing regime

The Regulation systematizes the licensing regime into two distinct categories:

• Telecommunications licences, comprising unified licences and class licences; and

• Resource-scarce licences, which include licences for the use of telecommunications numbering and radio frequency spectrum.

This reorganisation seeks to provide greater clarity to the legal regime applicable to the different regulated activities.

ii. Unified license remains the main enabling title

The unified licence remains the main title for the establishment, management and operation of public networks and for the provision of public telecommunications services.

The Regulation defines in more detail the requirements for its attribution, requiring, among other elements:

demonstration of technical and financial capacity;

presentation of technical project;

tax and social security good standing;

no debts related to regulatory fees.

The period of 15 days for the decision of the Regulatory Authority is maintained, and the license is granted for a period of 20 years.

iii. Greater densification of licenses by classes

The diploma clarifies the scope of Class A, B and C licenses, specifying the activities covered by each category.

Of note is the expansion of activities within Class C, which now covers various operations related to telecommunications equipment and infrastructures, including import, manufacturing, distribution, installation and maintenance.

Licenses will now have the following validity periods:

• 15 years for Classes A and B; and

• 5 years for Class C.

iv. Access to infrastructure by mobile virtual operators

One of the main novelties of the Regulation is the establishment of the obligation for unified license holders to make their infrastructures available to Mobile Virtual Operators (MVNOs) through commercial agreements.

It is the responsibility of the Regulatory Authority to define the applicable technical terms and conditions, through specific regulations.

This could contribute to increased competition and a more efficient use of existing infrastructure.

v. New lease and spectrum sharing regime

The Regulation introduces mechanisms that allow for a more flexible use of the radio spectrum.

The following are now expressly admitted:

• the rental of spectrum, for testing new technologies, increasing network capacity or implementing new infrastructure; and

• the sharing of spectrum between operators, through a contract subject to approval by the Regulatory Authority.

Sharing contracts must contain a minimum set of mandatory clauses and be accompanied by the respective technical project and commercial agreement.

vi. Specific regime for satellite communications

For the first time, the licensing of satellite radiocommunication services will benefit from an autonomous regime.

The Regulation provides for different categories of licences, including:

Satellite Operator;

Fixed Earth Station;

Mobile Earth Station;

VSAT; and

Gateway or Satellite Hub.

The requirement for prior authorisation from the Regulatory Authority for direct connections between satellites and international mobile devices (Direct-to-Device) is also introduced, reflecting the technological evolution of the sector.

vii. Strengthening regulatory obligations

The diploma reinforces the set of duties imposed on operators, highlighting:

• ensuring the interoperability of networks;

• sharing of infrastructures, when legally required;

• protection of personal data and privacy;

• security and integrity of networks;

• use of approved equipment;

• consumer protection;

• compliance with tax, contributory and regulatory obligations;

• contribution to the Universal Access Service Fund, where applicable.

Failure to comply with these obligations may lead to the application of administrative sanctions or, in certain situations, the revocation of the licence.

viii. Sanctioning regime

The Regulation establishes a more developed sanctioning framework, providing for fines that differ according to the nature of the infringement.

The applicable penalties can reach 5,000 minimum wages of the Civil Service, namely in cases of operation of satellite communications services without the corresponding licensing.

The diploma also regulates the procedure for imposing fines, the mechanisms for defending the offender, administrative appeals and litigation appeals to the Administrative Courts.

ix. Renewal, transfer and revocation of licences

The Regulation clarifies the conditions for renewing licenses, requiring compliance with regulatory, tax and contributory obligations.

It also expressly provides that the transfer of licences depends on prior authorisation from the Regulatory Authority, and the purchaser must meet the same requirements required of the original holder.

The situations that may lead to the revocation of the licence are also specified, namely:

• failure to submit the declaration of commencement of activity;

• failure to start activity for one year;

• misuse of scarce resources; e

• prolonged non-compliance with obligations to pay regulatory fees and contributions to the Universal Access Service Fund.

2. Impact on operators

The new Regulation represents a significant update of the regulatory framework for the telecommunications sector in Mozambique. In addition to consolidating the licensing regime, the diploma introduces mechanisms aimed at promoting a more efficient use of scarce resources, facilitating the development of new business models and keeping up with technological developments, particularly in the field of satellite communications.

Operators and other covered entities should review their respective regulatory compliance processes, in order to ensure compliance with the new licensing requirements, operational obligations and reporting duties to the Regulatory Authority.

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