23 June, 2016

TOPIK 8 12 ABCR3203 COMMUNICATION LAW

TOPIK 8 12 ABCR3203 COMMUNICATION LAW

LEARNING OUTCOMES

By the end of this topic, you should be able to:

1. Discuss    the  legislations  that regulate  the  communications   and
multimedia industry; and

2. Discuss the statute that deals with communication law.

INTRODUCTION

The   Communications   and  Multimedia   Act 1998  (CMA)   is  a  legislation  that
regulates the communications and multimedia industry. Preceding the Act, what
is   now   known   as   the   communications   and  multimedia   industry   used   to   be   the
telecommunications, broadcasting and IT industries. These three industries were
regulated by two different legislations (see Figure 8.1).

Figure 8.1: Separate legislations for telecommunications and broadcasting industry



The telecommunications industry was regulated by the Telecommunications Act
1950 and the broadcasting industry was regulated by the Broadcasting Act 1988.
However, the IT industry was not regulated by a specific legislation. The CMA
integrates these three industries to become the communications and multimedia
industry (refer to Figure 8.2).


Figure 8.2: Communication and Multimedia Industry



The CMA is divided into five regulatory frameworks i.e. procedural, economic,
technical, consumer and social regulation (refer to Figure 8.3).


Figure 8.3: Regulatory framework
Source: Explanatory Statement to the Communications and Multimedia Bill p. 141


In   the   telecommunications,   computer   and   broadcasting   industry,   convergence
connotes the blurring of the traditional lines delineating each industry as one or
the   other   develops.     On   the  same    basis,  the   Malaysian     Communications        and
Multimedia   1998   was   enacted.   When   the   Communications   and   Multimedia   Act
1988   came   into   force   on   1st   April,   1999,   these   two   legislations   were   repealed
(Section 273). However, it does not affect existing general laws, for example, laws
on defamation, copyright, illegal content and national security.

The driving force that led to the enactment of the Communications and Multimedia
Act 1998 was the need for a single body to implement the supervisory duties of the
communications and multimedia sectors. The objects of the Act are to promote the
national     policy   objectives    under     section   3(2)   for  the   communications        and
multimedia industry, to establish a licensing and regulatory framework in support
of national policy objectives for the communications and multimedia industry, to
establish    the   powers     and   functions    for  the   Malaysian     Communications        and
Multimedia       Commission      and   to  establish   the   powers    and   procedures     for  the
administration of the Act, Section 3(1).


The Act has 11 Parts with 282 sections and these can be divided into five different
regulatory frameworks, namely, procedural (that also deals with the regulatory
authorities), economic, technical, consumer and social regulation.



 8.1           PROCEDURAL REGULATION

Procedural   Regulation   comprises   parts   II,   III   and   V.   Part   II,   Ministerial   powers
and     procedures,     explains    the   four   types   of   MinisterÊs    powers.     Ministerial
directions,      determinations,      declarations      and    regulations      are   subordinate
instruments   that   can   be   issued   by   the  Minister   for   the   purpose   of   promoting
transparency, a register of all the instruments issued by the Minister must be kept
by the Commission (Sections 9, 12, 15).

The ministerial direction refers to the power of the Minister to issue directions to
the    Commission       with   respect   to  the  CommissionÊs        powers,    performance      of
functions and duties under the Act (Section 7). Nevertheless, the direction must
not be inconsistent with the Act.



The    ministerial    determination,      refers  to  the  power     of  the  minister    to  make

determinations       on   any  matter    specified   in   the  Act  without    consultation    with

licensees or persons (Section 10).


Ministerial     declaration     is  a   declaration    made     by   the   minister    concerning
conditions or benefits of licences (Section 13).


Lastly,   the Minister   has   the  power   to   make   regulations   on   recommendations   of
the Commission for the purposes of:

(a)    The procedures for the Commission and the Appeal Tribunal in the exercise
of their powers and functions under the Act;



(b)    The form of, and requirements for written authorisations, assignments and

       licences granted or issued under the Act;



(c)    The   procedures   for   the   assignment   of   rights   to   the   spectrum   or   numbers

       including mechanisms for rate-based assignment;



(d)    Any fees, charges or rates to be imposed;



(e)    The   procedures   for   the   implementation   of   a   system   of   universal   service

       provision including the quality of service standards;



(f)    The     procedures      for  the   use   of   network     facilities,  network      services,

       applications     services   and    content   applications     services   in  emergency     or

       distress situations;



(g)    The compounding of offences;



(h)    Any redress, including compensation or penalties in respect of a breach of

       or offence against any subsidiary legislation;



(i)    Any matter for which this Act makes express provision; and



(j)    Such other matters as are necessary for giving full effect to the provisions of

       this Act and for their due administration [Section 16(1)].



Another      important     element    in  the  workings     of  the  regulatory     regime    is  the

Appeal      Tribunal.    The    Appeal    Tribunal     under    Part   II  of  the   Act   may    be

established by the Minister and it shall convene on an ad hoc basis [Section 17(1)].

The primary function of the Appeal Tribunal is to review decisions made by the

Commission   upon   appeal   by   a   person   affected   by   such   a   decision   (Section   18).

The Appeal Tribunal shall consist of a chairman who is currently a High Court

Judge      and    at  least   two     other   members       who     have    knowledge       of   the

communications         and    multimedia      industry,    engineering,     law,    economics     or

commerce, or public administration [Sections 17(3)   and 19]. Any decision made

the Appeal Tribunal is final and binding on the parties to the appeal and is not

subject to further appeal (Section 18(2).



Part V deals with the powers and procedures of the Malaysian Communications

and     Multimedia      Commission.      The    Commission       has  power     to  issue   specific

instrument and mechanism which include directions, determinations, conduct a

public    inquiry    and   investigation,    gather   information,     monitor    and    provide    a



report to the Minister on all significant matters relating to the services provided

and review all rules and regulations made under the Act. The Commission is also

a point of reference for dispute resolution.



One of the aims of the Act is to promote self-regulation in the industry. This is

done     through    the  introduction     of  voluntary    industry    codes.   These    are  codes

developed   by   industry   players   who   have   a   primary   function   to   formulate   and

implement       voluntary    industry    codes   to serve    as  a  guide   for  the   industry   to

operate. The formulation of the code may be done by the forumÊs own initiatives

or upon request by the Malaysian Communication and Multimedia Commission

(MCMC)        (Section   95)   failing   which    mandatory      standards     will   be  imposed

(Section 104).



Under the CMA 1998, there are various forums which may each formulate their

own     voluntary     industry    codes    for  example,     the   technical   standards     forum

(Section    184),   access  forum     (Section   152),  consumer     forum    (Section    189)  and

content     forum    (Section   212).  Examples    of   registered    voluntary    codes    are  the

General   Consumer   Code   of   Practice  for   the   Communications   and   Multimedia

Industry Malaysia and The Malaysian Communications and Multimedia Content

Code      which    was    registered    on    17   October    2003    and    1  September       2004

respectively.   Four   bodies   has   been   designated   to   formulate   voluntary   industry

codes namely, the Communications and Multimedia Consumer Forum (CfM), the

Communications and Multimedia Content Forum (CMCF), the Malaysian Access

Forum and the Technical Standards Forum.



To promote transparency of the regulatory regime Section 81 of the Act requires

the Commission to maintain a register in both physical and electronic form, of all

matters   which   are   required   to   be   registered   under   the   Act   and   its   subsidiary

legislation.     The    register   may     be  accessed      at  http://www.mcmc.gov.my/

registers/registers.asp.



 8.2          ECONOMIC REGULATION



Economic        regulation     actually     deals    with    matters     concerning      licensing,

competition   and   access   to   services.   Provisions   on   licensing   aims   to   control   and

monitor   the   entry   of   service   providers   (Communications   and   Multimedia   Bill

1998, Explanatory Statement Para 71). There are two types of licences under the

Act. A person may either apply for an individual licence [Section 27(1)] or operate

under   a   class   licence   that   the   Minister   has   granted   [Section   44(1)].   The   licence

type   is   divided   into   these   two   but   there  are   four   categories   of   services   for   each

type   of   licence,   network   service,   network  facilities   service,   applications   service

and content applications service.



On     17th   September,       2002,   the   Minister    issued     class   licences   for   applications

service,   network   facilities   and   network   services.   At   the   same   time,   the   Minister

also issued the Ministerial Guidelines on class licences for network facilities and

network services (http://www.mcmc.gov.my).



Tables     8.1  and    8.2  show     the  type    of  licenses    and   category     of  services    under

the Act.


Table 8.1: Type of Licenses


Type of License  ................>>   Category of Service


Individual Licence ..............>> ? Network Facilities

                                    ? Network

                                    ? Applications

                                    ? Content Applications


Class Licence ...................>> ? Network Facilities

                                    ? Network

                                    ? Applications

                                    ? Content Applications


Table 8.2: Category of Services



 Category of Service ..>>    Explanation



Network Facilities ..>> Provide     facilities  and   infrastructures    such   as   satellite  earth   stations,

         broadband fibre optic cables, telecommunications lines and exchanges, radio

                   communications        transmission    equipment,     mobile    communications       base

                   stations, and broadcasting transmission towers and equipment. They are the

                   fundamental building block of the convergence model upon which network,

                   applications and content services are provided.



Network ..>>  Provide    the   basic  connectivity    and   bandwidth     to  support   a  variety   of

                   applications.    Network     services  enable   connectivity    or  transport   between

                   different networks. A network service provider is typically also the owner of

                   the network facilities. However, a connectivity service may be provided by a

                   person using network facilities owned by another.



Applications ..>>  Provide   particular   functions   such   as   voice   services,   data   services,   content-

                   based    services,   electronic   commerce      and    other   transmission     services.

                   Applications services are essentially the functions or capabilities.



Content Applications  ..>> A   special   subset   of  applications   service   providers    including   traditional
broadcast    services   and    newer   services   such   as   online   publishing    and
information services.



During the transition period (1 April 1999 to 1 April 2000), the Communications

and    Multimedia      (Licensing)   Regulation    1999    was   passed.   This   regulation    has

since   been   repealed   and   substituted  by   the   Communications   and   Multimedia

(Licensing)      Regulation      2000    and     the   Communications         and     Multimedia

(Licensing) Amendment Regulation 2002. These regulations elaborate further on

matters concerning licensing including procedures for application.



Topic 2 of this part deals with competition regulation. Competition regulation in

the act lists down three clear prohibitions namely:



(a)    Prohibition on anti-competitive conduct (section 133);



(b)    Prohibition on entering into collusive agreements (section 135); and



(c)    Prohibition on tying or linking arrangements (section 136).



Section   133   prohibits   a   licensee   from   engaging   in   any   conduct   which   has   the

purpose of substantially lessening competition in a communications market. The

definition    of  „substantial    lessening    competition‰     is  published    in  the  form   of

guidelines      issued    by    the   Commission        (Malaysian      Communications         and

Multimedia   Commission,   Guideline   On   Substantial   Lessening   Of   Competition

RG/SLC/1/00(1)            available      at     http://www.mcmc.gov.my/facts_figures/

codes_gl/index.asp). Besides these three clear prohibitions, the Act also provides

that the Commission may determine a licensee to be in a dominant position in a

communications market and may further direct this dominant player to cease any

conduct which, has the effect of substantially lessening competition in the market

(Section 137 and 139).



Guideline   on   Dominant   Position   in   a   Communications   Market   explains   what   is

meant     by   how    the  commission      will  determine     „dominant      position‰   for  this

purpose       (Available      at   http://www.mcmc.gov.my/facts_figures/codes_gl/

index.asp). The Commission has also issued an information paper on the process

for     assessing      allegation     for    anti-competitive       conduct       (Available      at

http://www.mcmc.gov.my/what_we_do/competition/competition.asp)                                 and

recently has published a document as part of a public inquiry on the assessment

of   dominance       in  the   communications        market     (http://www.mcmc.gov.my/

index.asp).



Topic 3 of Part VI deals with access to services. Provisions on access to services is

important   to   ensure   sharing   of   infrastructure   and   minimise   duplication   which

will in due course optimise the resources and increase co-operation amongst the

operators or service providers. It also ensures that the service providers can gain

access to the necessary facilities and services on reasonable terms and conditions.

This    is  to  encourage    downstream      activities   to  flourish,  thus   creating   a  more robust market environment, one that is able to offer consumers more choice and

value-for-money       services.   To   date,   the  Malaysian     Communications        and

Multimedia Commission has determined an ÂAccess ListÊ which sets out the type

of facilities or services that are subject to the access obligations under the Act.



The Commission has also issued various public enquiry reports and information

papers on this matter which includes the following:



(a)   A Report on a Public Enquiry Under Section 65 of the Communications and

      Multimedia Act 1998 on Access Pricing;



(b)   A Report on a Public Enquiry Under Section 65 of the Communications and

      Multimedia Act 1998 on Cost of Capital;



(c)   A Report on a Public Enquiry Under Section 65 of the Communications and

      Multimedia Act 1998 on Local Access Funding;



(d)   A Report on a Public Enquiry Under Section 65 of the Communications and

      Multimedia Act 1998 on Access List Determination;



(e)   Guideline     on  Provision   of  Dial-Up   Internet  Access   Service   Using   New

      Special Service Number Range 1508 A XXXXX; and



(f)   Clarification      on    Mandatory       Standard      of    Access     Agreements

      (http://www.mcmc.gov.my/what_we_do/access/access.asp).



 8.3         TECHNICAL REGULATION



The    Communications      and   Multimedia     Act  1998   establishes  a  framework     to

promote     the  effectiveness  of  technical  regulation   by  facilitating  the  technical

interoperability of networks, to promote the efficient allocation of resources and

to promote the safety, security and integrity of network services and applications

services. Technical regulation can be divided into three parts:



(a)   Spectrum assignment;



(b)   Numbering and electronic addressing; and



(c)   Technical standards.



Let us now discuss this further.



Spectrum assignment is a new feature introduced by the Act. Under the previous

regulatory regime, providers are given radio communication licences (Regulation

3 of the Radio communications Regulation 1995).





There are 3 types of assignment:



(a)    Spectrum assignments;



(b)    Apparatus assignment; and



(c)    Class assignment  Section 157.



Assignment means the right to use the spectrum, numbers or electronic addresses

(Section 6) and this right which is enforced upon the licensees can be transferred

or dealt to another person. Section 162 gives power to licensees to transfer or deal

with    any   or  all  of  the  rights   assigned    under    spectrum    assignment.     Similar

provisions as regards to apparatus assignment is provided for in section 167.



Class   assignment  means   that   anyone   may   use   any   frequency   allocated   under

class   assignment     for  a  determined     specified   purpose    (Section   169). Spectrum

management involves providing a responsive  and flexible approach to meet the

needs of spectrum users, making adequate provision of spectrum for public and

community   services,   maximising   the   overall   public   benefit   derived   from   use   of

the spectrum by ensuring its efficient allocation, encouraging the use of efficient

wireless    technologies     and   practises   to  enable   operation    of  a  wide   ranges   of

services    with    an  adequate     quality   of  service,   supporting     the   CMA     policy

objectives of the Government and providing Malaysian views in the development

of   international   agreements   in   Radio   communications.   (http://www.mcmc.gov.

my/what_we_do/spectrum/index.asp).



Under section 172, the Commission may develop a spectrum plan which defines

how     the  spectrum     shall  be   used   and   the  methodology       for  assignment     and

reassignment   of   the   spectrum.   The  Spectrum   plan   is   a   vital   document   which   is

used to manage the allocation and assignment of our national band, as a reference

for   the   ITU   approved     allocation,   and   the   availability   of services    using   the

frequency       and     the    conditions     to    use    them.     (http://www.mcmc.gov.

my/what_we_do/spectrum/plan.asp).                  The    spectrum     plan    is  available     at

http://www.mcmc.gov.my/what_we_do/spectrum/plan.asp.



The Act requires the Malaysian Communications and Multimedia Commission to

develop     a  numbering      and   electronic   addressing    plan   setting  out   rules  about

matters relating to the use, transfer, assignment and portability of numbers and

electronic addresses (Section 179). In pursuant of this the Commission has issued

the   Numbering   and   Electronic   Addressing   Consultation   Paper   dated   26   April

2002.



Finally, topic three deals with technical standards that has to be observed by the

service providers. Under the Communications and Multimedia Act 1998, it is an

offence    to   use  any   technical    equipment     or  systems    which    hinder    network

interoperability or compromise public safety (Sections 182 and 183).



The     Communications         and    Multimedia      Act    1998    allows    the    Malaysian

Communications and Multimedia Commission to designate one or more industry

forums and register certifying agencies or classes of certifying agencies (Section

186).    Under     the   Communications         and  Multimedia        (Technical    Standards)

Regulations   2000,   Regulation   27(1)   provides   that   „no   person   shall   undertake   or

conduct any activity in a designated skill area unless that person is certified‰.



8.4          CONSUMER REGULATION



Do   you   know   what   consumer   regulation   is?   The   primary   purpose   of  consumer

regulation     is  consumer    protection.   Provisions    under    this  topic  are  quality   of

service,    required     applications     services,   resolution    of   consumer      disputes,

regulation on rates and universal service obligation. For the purpose of this Part,

the Commission designated a consumer forum which prepared a consumer code.

The General Consumer Code of Practice for the Communications and Multimedia

Industry      Malaysia     which     was    developed      by   the    Communications        and

Multimedia   Consumer   Forum   of   Malaysia   (CfM)   was   registered   on   17   October

2003.



The objective of the Code is to provide model procedures for:



(a)    The adherence to consumer requirements;



(b)    The handling of customer complaints and disputes;



(c)    The   creation   of   an   inexpensive   mediation   or   process   other   than   the   court

       and procedures for compensation of the customers in case of a breach of the

       consumer code;



(d)    The protection of consumer information;



(e)    To endeavour to achieve the relevant national policy objectives of the Act;



(f)    To   provide   benchmarks   for   the   communications   and   multimedia   service

       providers for the benefit of consumers;



(g)    To promote a high level of consumer confidence in service delivery from the

       industry; and


(h)    To provide guidelines for self-regulation among the industry (Section 5 of

       the Consumer Code).



Other     than   the  code,   the  Commission       has  issued   various   determinations       on

mandatory standards for quality of service listed below:



(a)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Broadband Access Service);



(b)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Digital Leased Line Service);



(c)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Public Payphone Service);



(d)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Content Applications Services);



(e)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Dial Up Internet Access Service);



(f)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Public Cellular Service); and



(g)    Commission       Determination      on   the  Mandatory      Standards     for  Quality   of

       Service (Public Switched Telephone Network Service).



The   Commission   has   also   published   a   guideline   on   complaints   handling   which

provides      for  the   process    for  complaints      handling.    According      to  the   rate

regulation,   Section   197   provides   that   rates   may   be   set   in   accordance   with   the

market rates. The Communications and Multimedia (Rates) Rules 2002 came into

effect 1 March 2002.



One important part of this section is the provision on universal service. Universal

service    is  an  obligation   imposed     by   the  government      on  service   providers    to

promote the widespread availability and usage of services throughout Malaysia

by   encouraging   the   installation   of   these   services   in   underserved   areas   and   for

underserved groups within the Community (Section 202). This service obligation

ensures basic services are available or accessible by the public regardless where

they are.



A   Report   on   a   Public   Inquiry   on   a   System   of   Universal   Service   Provision   was

issued by the Commission on 12th March, 2001 and in the report the method on

how   universal   service   was   to   be   implemented   was   laid   down   and   the   terms

„underserved areas‰ and „underserved groups‰ were defined.



8.5     SOCIAL REGULATION



Social   regulation   is   mainly   concerned  with   content   application   services.   Under

this part (Part IX), three types of content applications services is mentioned. They

are   content   applications   service,   closed content   applications   service   and   limited

content   applications   service.   A   closed   content   applications   service   is   exempted

from any provisions under Part IX (Section 207) and a limited content application

which   is   a   service   of   a   limited   appeal   due   to   its   limited   target   and   availability,

may   be   subject   to   a   class   licence   but   otherwise   exempted   from   any   provision

under     this  Part  (Section   209).  Section  211    of  the  CMA     provides    that  content

should     not  be   indecent,   obscene,    false menacing,      offensive   in  character   with

intent    to  annoy,    abuse,   threatens   and   harass.    The   content   code,   which    was

registered   on   1   September   2004   explains   further   the   prohibition   of   section   211.

The   content   code   is   available   at   http://www.cmcf.org.my   (Content   Forum)   or

http://www.mcmc.gov.my                (Malaysian      Communications          and     Multimedia

Commission).


SELF-CHECK 8.1


1.  Who   is   regulated   under   the   Communications   and   Multimedia   Act
1998?


2.  How many license types are there under the Communications and
Multimedia Act 1998?


3.  Name the regulatory authorities under the Act.


ACTIVITY 8.1


Access the content code and discuss with your coursemates the prohibition

     under Section 211 of the Communications and Multimedia Act 1998.



? The   Communications   and   Multimedia   Act   1998  regulates   three   traditionally
distinct industries.



? The      Malaysian     Communications       and    Multimedia     Commission      is  the
regulatory authority responsible for this industry.



? The Act is divided into five regulatory frameworks i.e. procedure, economic,
technical, consumer and social.



Individual Licence                            
Voluntary Industry Code



Malaysian Communications and

Multimedia Commission

No comments:

Post a Comment