ORDER OF THE MINISTER OF DIGITAL DEVELOPMENT, INNOVATIONS AND AEROSPACE INDUSTRY OF THE REPUBLIC OF KAZAKHSTAN

of September 1, 2023 No. 376/Tax Code

About approval of Rules of carrying out conversion of radio-frequency range and Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

According to subitem 61-1) of Item 15 of the Regulations on the Ministry of the digital development, innovations and the aerospace industry of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of July 12, 2019 No. 501 "About measures for implementation of the Presidential decree of the Republic of Kazakhstan of June 17, 2019 No. 24 "About measures for further enhancement of system of public administration of the Republic of Kazakhstan" I ORDER:

1. Approve enclosed:

1) Rules of carrying out conversion of radio-frequency range;

2) Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range.

2. To provide to committee of telecommunications of the Ministry of digital development, innovations and aerospace industry of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Ministry of digital development, innovations and the aerospace industry of the Republic of Kazakhstan;

3) within ten working days after state registration of this order submission to Legal department of the Ministry of digital development, innovations and the aerospace industry of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1) and 2) of this Item.

3. To impose control of execution of this order on the supervising vice-minister of digital development, innovations and the aerospace industry of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication.

It is approved Ministry of Finance of the Republic of Kazakhstan

It is approved Ministry of Defence of the Republic of Kazakhstan

It is approved Ministry of national economy of the Republic of Kazakhstan

 

Approved by the Order of the Minister of digital development, innovations and the aerospace industry of the Republic of Kazakhstan of September 1, 2023 No. 376/Tax Code

Rules of carrying out conversion of radio-frequency range

Chapter 1. General provisions

1. These rules of carrying out conversion of radio-frequency range (further - Rules) are developed according to subitem 61-1) of Item 15 of the Regulations on the Ministry of the digital development, innovations and the aerospace industry of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of July 12, 2019 No. 501 "About measures for implementation of the Presidential decree of the Republic of Kazakhstan of June 17, 2019 No. 24 "About measures for further enhancement of system of public administration of the Republic of Kazakhstan" and determine procedure for carrying out conversion of radio-frequency range.

2. Conversion of radio-frequency range is performed by the Ministry of digital development, innovations and the aerospace industry of the Republic of Kazakhstan (further - authorized body).

3. In these rules the following concepts are used:

socially important tasks are tasks which solution is directed to overcoming information inequality and ensuring access of general population to universal services of telecommunications and wireless broadband access, including in certain territory where they are unavailable in connection with their unprofitability;

general actions - the works which are carried out for the solution of the tasks necessary for program implementation of conversion of radio-frequency range in general, either conversion of certain range of radio-frequency range, or the conversion events held during the certain period;

radio-frequency range - certain set of radio frequencies in the range from 3 kHz to 400 GHz;

commercial use of radio-frequency range is use by physical persons and legal entities, including nonresidents, radio technologies for the purpose of implementation of business activity in the field of communication, television or broadcastings or creations of infrastructure when implementing other types of business activity;

conversion of radio-frequency range - set of the actions directed to expansion of use of radio-frequency range by radio-electronic means of civil appointment;

radio-electronic means - the technical tool intended for transfer and (or) acceptance of radio waves and consisting of one or several transferring and (or) intakes or their combinations, including the service equipment.

Other concepts used in Rules are applied according to the legislation of the Republic of Kazakhstan.

Chapter 2 Procedure for carrying out conversion of radio-frequency range

4. Legal entities and physical persons (further - interested persons), and also the state bodies (further - the interested state bodies) interested in provision of radio-frequency range by it except for of the state bodies and the organizations which are on radio-frequency providing at the Ministry of Defence of the Republic of Kazakhstan address with offers to authorized body.

5. The authorized body no later than August 20 of the year preceding year of forming of the republican budget for the next period generalizes the submitted requests.

6. The authorized body within seven calendar days sends the arrived offers to the state bodies working at the declared ranges of frequencies (further - state bodies).

7. The state body to which the offer arrived sends to authorized body within twenty calendar days from the date of receipt of the request the written answer about possibility of release of the declared range of frequencies.

8. The state body in case of the positive decision on release of the declared range of frequencies provides calculation of necessary costs for carrying out conversion of radio-frequency range and the plan of release of the declared range for carrying out conversion in authorized body within two months from the date of receipt of the offer. Calculation of necessary costs for carrying out conversion of radio-frequency range is determined based on technique of the feasibility statement on costs for carrying out conversion of radio-frequency range.

9. For carrying out conversion of radio-frequency range for commercial use the authorized body within seven calendar days after representation by state body of calculation of necessary costs and the plan of release of the declared range of frequencies for carrying out conversion sends to the interested person request about confirmation of its participation in carrying out conversion and its solvency.

10. For carrying out conversion of radio-frequency range the authorized body within seven calendar days after representation by state body of calculation of necessary costs and the plan of release of the declared range of frequencies for carrying out conversion sends to the interested state body inquiry for confirmation of its participation in carrying out conversion.

11. The interested person within twenty calendar days from the date of receipt of request from authorized body reports about the refusal or confirms the participation, having attached the bank guarantee of one or several resident banks of the Republic of Kazakhstan in the amount of, equal to hundred percent of the amount for reimbursement for carrying out conversion of radio-frequency range.

12. The interested state body within twenty calendar days from the date of receipt of request from authorized body reports about the refusal or confirms the participation.

13. In case of confirmation of participation in carrying out conversion by the interested person and (or) the interested state body the authorized body within twenty working days makes the decision on carrying out conversion of radio-frequency range.

14. In the presence of one interested person on one range of frequencies with expense recovery for carrying out conversion the calculation of necessary costs for carrying out conversion of radio-frequency range provided by state body is.

15. In case of interest on the same range of frequencies of the interested person (interested persons) and the interested state body (the interested state bodies) the authorized body makes the decision for the most effetivny use of radio-frequency range taking into account the rendered technology.

Expense recovery for carrying out conversion is the calculation of necessary costs for carrying out conversion of radio-frequency range provided by state body.

16. In the presence of several interested persons on the same range of frequencies the authorized body within thirty calendar days holds open tender. The starting price of tender will be equal to the costs for expense recovery for carrying out conversion of radio-frequency range provided by state body.

The winner of tender will determine the participant who offered top price on costs for expense recovery for carrying out conversion of radio-frequency range.

17. For the purpose of forming of the republican budget for the next period the authorized body within seven calendar days informs state body on the declared amount on carrying out conversion of radio-frequency range.

The state body when forming for the corresponding planning period provides expenses on carrying out conversion of radio-frequency range in the procedure for the republican budget established by the budget legislation application of copies of the bank guarantee of the interested person or winner of tender on the corresponding amount.

18. If expenses on carrying out conversion will be provided in the republican budget for the corresponding planning period, the interested person or the winner of tender brings one-time payment in revenues of the republican budget in full no later than March 1 of year of implementation of the expenses connected with carrying out conversion.

19. Adoption of obligations by state body on the expenses directed to carrying out conversion of radio-frequency range in cases of incomplete or untimely receipt of one-time payment in the terms provided in Item 18 of these rules is not allowed.

20. After all held events for carrying out conversion the authorized body if necessary makes changes to the Table of distribution of strips of frequencies between radio services of the Republic of Kazakhstan in the range of frequencies from 3 kHz to 400 GHz.

 

Approved by the Order of the Minister of digital development, innovations and the aerospace industry of the Republic of Kazakhstan of September 1, 2023 No. 376/Tax Code

Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

Chapter 1. General provisions

1. This technique of the feasibility statement on costs for carrying out conversion of radio-frequency range (further - the Technique) is developed compliance with subitem 61-1) of Item 15 of the Regulations on the Ministry of the digital development, innovations and the aerospace industry of the Republic of Kazakhstan approved by the order of the Government of the Republic of Kazakhstan of July 12, 2019 No. 501 "About measures for implementation of the Presidential decree of the Republic of Kazakhstan of June 17, 2019 No. 24 "About measures for further enhancement of system of public administration of the Republic of Kazakhstan".

2. The purpose of the Technique is development of general, single methodical approaches to development of feasibility statements (further - the feasibility study) projects on conversion of radio-frequency range.

3. Structure and contents of Sections, and also the most part of questions which should be reflected in the feasibility study, standard, not having the expressed industry specifics.

4. Projects of conversion of radio-frequency range have number of features which can cause difficulties in case of development of the feasibility study. Illumination of these features - the main task of this Technique.

5. In this Technique the following concepts and determinations are used:

general actions - the works which are carried out for the solution of the tasks necessary for program implementation of conversion of radio-frequency range in general, either conversion of certain range of radio-frequency range, or the conversion events held during the certain period;

radio-frequency range - certain set of radio frequencies in the range from 3 kHz to 400 GHz;

conversion of radio-frequency range - set of the actions directed to expansion of use of radio-frequency range by radio-electronic means of civil appointment;

radio-electronic means - the technical tool intended for transfer and (or) acceptance of radio waves and consisting of one or several transferring and (or) intakes or their combinations, including the service equipment.

Other concepts and terms used in the Technique are applied according to the legislation of the Republic of Kazakhstan.

Chapter 2. Calculation of costs for carrying out conversion of radio-frequency range

6. For carrying out conversion the state body working at the declared ranges of frequencies needs to determine the cost of necessary costs for carrying out conversion of radio-frequency range by certain range of radio-frequency range on all project deadline of conversion (by years), and also for separate periods of time (on kvartalno).

7. On the basis of the forecast of need for radio-frequency range and taking into account the state priorities the Plan of release of radio frequencies (further - the Plan) with breakdown by years and on kvartalno is developed. Shall find reflection in the Plan:

1) the ranges of radio-frequency range planned to release;

2) the methods applied to release of everyone, planned for conversion range of radio-frequency range. Methods of release of the ranges of radio-frequency range it is given in appendix 1 to this Technique.

3) the period in which this or that conversion event will be held;

4) main content of each action;

5) executives in charge of each of actions for conversion of radio-frequency range.

8. On each of the planned actions it is necessary to calculate costs, to develop cost budgets under Articles for each of them. The list of cost items is created depending on content, essence of each specific action.

9. Total costs on release and on placement of radio-electronic means can be expressed by the following formula:

  (1)

where:

S - total cost of release and of placement of radio-electronic means;

Si - separate cost types on general and private organizational and technical actions.

10. All actions on release of this or that range of radio-frequency range are divided into general and private.

11. The list of general and private organizational and technical actions (further - OTM) is provided in appendix 2.

12. For the purpose of realistic assessment of cost efficiency of carrying out conversion of radio-frequency range, and also for the purpose of reasons for calculations of payment for use of radio-frequency range, it is necessary to provide the separate cost accounting on each released range of radio-frequency range.

13. On conversion of radio-frequency range it is necessary to carry expenses on the private events held for the purpose of release of the range of the radio-frequency range assigned to certain operators to direct costs. Direct expenses on release of the range of radio-frequency range are calculated by formula:

  (2),

where:

Q - direct costs on release of the considered range range;

Qn - costs for n-noye private action for release of frequencies of the considered range range.

14. It is necessary to carry expenses on general actions which need to be distributed in proportion on the ranges of the released radio frequencies to indirect costs. For this purpose first of all it is necessary to determine concerning what release of radio frequencies the planned general actions will be carried out: whether there will be it research works or organizational and technical actions for the problem resolution of release of all radio-frequency range, or these works concern problems of release of certain range of radio-frequency range. Depending on it costs can be distributed on the released range of radio-frequency range, or on certain frequency.

15. Distribution of indirect costs is performed by one of the below-stated methods.

1) Option 1. Distribution of indirect costs on the ranges of radio-frequency range is pro rata to the calculated direct expenses.

  (3),

where:

K - indirect expenses on release of the range of radio-frequency range;

Q - direct expenses on release of the range of radio-frequency range;

Qobshch - direct expenses of all;

Kobshch - indirect expenses on the project of all.

2) Option 2. Distribution of indirect costs is pro rata to the planned number of radio-frequency assignments.

  (4),

where:

L - the planned number of radio-frequency assignments on the considered range of radio-frequency range;

Lobshch - the planned number of frequency assignments of all.

3) Option 3. Distribution of indirect costs is pro rata to the predicted income of the operators receiving the released ranges of radio-frequency range in use.

  (5),

where:

V - the predicted income of operators of the considered range of radio-frequency range;

Vobshch - the predicted income of operators of all.

Complete costs for release of the range of radio-frequency range represent the amount of direct and indirect expenses.:

  (6),

16. Costs for release of the range of the radio-frequency range planned to conversion in the planned period are calculated in proportion to the share planned to release in this period of the range of frequencies in the considered range of radio-frequency range.

  (7),

where:

Sn - costs for release of part of the range of radio-frequency range in n-number the period;

Cn - indicator of dimension of the considered range of the radio-frequency range released in n-number the period;

With - the size of the considered range of radio-frequency range.

17. Total costs on conversion in the planned period it is determined as cost amount on conversion by each range of radio-frequency range.

  (8)

18. The cost forecast on the 2nd and the next years of project implementation needs to be performed taking into account macroeconomic and mesoeconomic (industry) tendencies. It is necessary to consider dynamics of the wages rise on the national economy in general and on industries, dynamics of the change in price for goods and services. Data of Bureau of national statistics of the Agency on strategic planning and reforms of the Republic of Kazakhstan can be sources of such information.

19. The forecast of total volume of financing of the project needs to be performed with breakdown by years by filling of the standard form specified in appendix 3 (further - appendix 3).

20. When filling in appendix of 3rd account part, it is necessary to reflect costs during those periods when they are actually suffered without the stated above distribution of indirect expenses.

Chapter 3. Description of the feasibility statement

21. In the prolog of the feasibility study it is necessary to describe problems for which solution it is supposed to realize the project, the description of external environment of the project and factors which influence its realization.

22. In the feasibility study it is necessary to specify problems which solutions it will be performed by the project of conversion of radio-frequency range, such as shortage, the deficit of radio-frequency resource interfering growth of the market of these or those services of telecommunications.

23. Project objective for the telecom operator - receipt of the right to use on acceptable conditions of the range of the radio-frequency range allowing to render services of telecommunications and to gain income and profit.

24. Project objective for state body - accomplishment of the actions for release of the range of radio-frequency range ordered by the state with the smallest damage to accomplishment of the obligations assigned to it.

25. Project objective for the state - increase in efficiency of use of the range of radio-frequency range for the benefit of society.

26. In the project it is necessary to specify what technologies are supposed to be developed on the released ranges of radio-frequency range. Projects on conversion of radio frequencies are grouped in the ranges of radio-frequency range which are subject to release and in the radio technologies assumed to use on them. The group of conversion projects is given in appendix 4.

27. In the project it is necessary to specify technical technology solutions:

1) the analysis of technology solutions of realization, reasons for the chosen option, the necessary number of the equipment and the choice of the location;

2) reasons for the choice of technologies and equipment;

3) structure of complex and characteristic of the equipment;

4) recommended minimum necessary set of the measuring equipment;

5) security of the project with engineering constructions;

6) assessment of technical risks.

Appendix 1

to the Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

Methods of release of the ranges of radio-frequency range

№ of payment order	Methods of release of radio-frequency range	Method essence	Features of realization	Cost types on conversion
1	2	3	4	5
1	Release of strips of government and joint use from the operating radio-electronic means.	1. Assumes transfer of the operating radio-electronic means of government appointment in other ranges of frequencies by their upgrade and purchase of the new equipment.	Requires essential finance and time expenditure.	Purchase costs and installation of the equipment. The costs connected with temporary stop of the operating radio-electronic means. Costs of regulating authority for assignment of radio frequencies to the Interested person.
		2. Assumes Reorganization of the operating send-receive devices of radio-electronic means within the working ranges and does not provide their upgrade and development of new prototypes for work in other ranges.	Does not require essential finance and time expenditure.	The costs connected with temporary stop of the operating radio-electronic means. Costs of regulating authority for assignment of radio-frequency range to the Interested person.
		3. Audit of range for the purpose of determination of "free" frequency resource and determination of conditions on transfer of excessive frequency resource.	Requires insignificant finance and time expenditure.	Costs of regulating authority for assignment of radio-frequency range to the Interested person.
2	Rational replanning (reassignment) of frequencies of the operating radio-electronic means of government appointment within the working range for the purpose of provision of necessary Frequency resource of radio-electronic means of civil appointment	Determination and realization of the conditions of joint use providing acceptable functioning of the operating radio-electronic means of government appointment and new radio-electronic means of civil appointment in the general frequency ranges and territorial areas	Requires finance costs.	Costs of regulating authority for assignment of radio-frequency range to the Interested person.
3	Determination of conditions of joint functioning in general strip of frequencies.	1. Organizational method. The frequency chosen for assignment to new system is transferred in coordination with the department having the operating radio-electronic means which work in the same strips of frequencies and at the same territories in which expansion of new system is planned.	Rather insignificant finance and time expenditure. Limited opportunities.	Costs of regulating authority for assignment of radio-frequency range to the new operator.
		2. Organizationally - technical method. Realization in the operating radio-electronic means of the special circuitry decisions (development and use of additional frequency filters, compensators of hindrances, send-receive antennas with the managed directional patterns, temporary, code and polarizing selektiruyushchy devices and combinations of the listed decisions) aimed at providing their joint functioning with new radio services in general strips of frequencies and territorial areas and further approval of conditions of joint use.	More considerable finance and time expenditure, in comparison with the previous method.	Costs for project works. Purchase costs and installation of radio-electronic means. Costs of regulating authority for assignment of radio-frequency range to the new operator.
4	Release of radio-frequency range for development of perspective radio technologies in cases: - the terminations of effective period of the licenses granted to telecom operators - terminations of useful life of radio-electronic means; - reassignment (reorganization) of working frequencies of the operating radio-electronic means of civil appointment in other frequency ranges.	Premises of method consist in limitation of terms: - actions of licenses; - operation of radio-electronic means; - actions of decisions and permissions to right possession of frequency resource.	Big duration (relevance loss is possible). Insignificant finance costs. Categories of strips do not change.	Costs of regulating authority for assignment of radio-frequency range to the new operator.

 

Appendix 2

to the Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

List of general and private organizational and technical actions

№ of payment order	General OTM	№ of payment order	Private OTM
1	2	3	4
S1	Carrying out the analysis of results of release of range and influence of this process on the developed infrastructure.	S4	Preparation of the project documentation on recovery of infrastructure in the new frequency range.
S2	Preparation of technical documentation and termination letters of activities of radio-electronic means in bodies of state regulation.	S5	Work on examination of radio-frequency range, the analysis of electromagnetic compatibility and noise immunity of again entered radio-electronic means in the new frequency range.
S3	Development of regulations it is frequency - territorial rating of radio-electronic means in the new frequency range.	S6	Equipment procurement in the new frequency range.
		S7	Construction and installation works on reconstruction of radio-electronic means in the new frequency range.
		S8	Costs for retraining
		S9	Dismantle of group of radio-electronic means.
		S10	Utilization of the old dismantled equipment.

 

Appendix 3

to the Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

Forecast of total volume of financing of the project of conversion of radio-frequency range

	1 year	2 year	...	n-ny year
Balance at the beginning of the period
The entering flows of everything, including
Financing of the program
Other receipts
Outgoing flows of everything, including
Costs for private conversion actions
Costs for general conversion actions
Balance at the end of the period
Net cash flow
The discounted net cash flow

 

Appendix 4

to the Technique of the feasibility statement on costs for carrying out conversion of radio-frequency range

Group of conversion projects

Name of group	Radio technologies	Ranges of radio-frequency range
Digital television broadcasting	Digital land telecasting	174-230 MHz 470-694 MHz
Digital broadcasting	Digital land broadcasting	3-30 MHz 174-230 MHz 1453-1492 MHz
Cellular mobile communication	GSM-900, GSM-1800, 3G,4G,5G	694-862 MHz 873-960mgts 1710-2170 MHZ 3600 – 3800 MHZ
Systems of wireless access	802.11 (Wi-Fi), 802.16 (WiMAX)	2300-2400 MHz 2400-2484 MHz 2500-2700 MHz 5725-5925 MHz
VSAT	Satellite digital communication network	12/14 GHz 17/19 GHz 20/30 GHz
TETRA	Digital trunking	380-470 MHz

 

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