Payments to Universal Communications Services Reserve Fund Declared Unconstitutional

The RF Constitutional Court (the "Constitutional Court") recently ruled in favor of public communications network operators in a case initiated by the Koryaksky Autonomous District Duma.

The Constitutional Court declared unconstitutional Articles 59 (2), 59(3) and 60 of RF Law No. 126-FZ "On Communication," dated July 7, 2003 (the "Telecoms Law") for its failure to establish clear procedures to carry out the requirements of such law. The Telecoms Law introduced a new category of "universal communications services," which are services related to (i) public pay phones; and (ii) data transmission and access to the Internet through the use of shared sites. The Telecoms Law provided that any losses incurred by the operators of such services would be recoverable from a special reserve fund which would be funded by all public communications network operators through the payment of mandatory fees¹ The purpose of the fund is to encourage the development of a telecommunications network in