RESTRICTED
WORLD TRADE S/GBT/W/1/Add.6
14January 1997
ORGANIZATION(97-0117)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM CANADA
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofCanada tomembers oftheGroup
onBasic Telecommunications.
_______________
Revised, Draft Offer byCanada onMarket Access, National Treatment andRegulatory Issues
1. With aview toachieving acomprehensive andmutually advantageous agreement onbasic
telecommunications within theWTO/GATS, Canada submits theattached revised offerwhich improves
market access commitments andisconditional upon receiving comparable benefits fromother major
GBT participants.
2. Canada willmake Additional Commitments based ontheReference Paper of24April 1996.
3. Canada reserves therighttowithdraw ormodify elements ofitsofferatanytimeprior tothe
conclusion ofthenegotiations onbasictelecommunications, depending onprogress onissues ofinterest
toCanada.
4. Canada reserves theright tomake technical changes totheoffer andtocorrect anyerrors,
omissions orinaccuracies, respecting items atfederal orsub-national levels.S/GBT/W/1/Add.6
Page2CANADA -CONDITIONAL SCHEDULE OFCOMMITMENTS
Modes ofSupply: (1)Cross Border (2)Consumption Abroad (3)Commercial Presence (4)Presence ofNatural Persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2CTelecommunications Services
Sub-sectors 2C(a) -(g)&(o)of
GNS/W/120 andCPC 7529*
Local, inter-exchange and
international services, supplied
overapublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis.
(*)indicates thattheservice
specified isacomponent ofa
more aggregated CPC item
specified elsewhere inthe
classification list.N.B.: Theheadnotes inCanada 'sschedule of
specific commitments under theGATS apply to
basic telecommunications.
(1)None, other than:
Routing ofbasic telecommunications traffic in
Canada isregulated topromote theuseofCanadian
transmission facilities fortelecommunications within
Canada andbetween Canada andpoints outside
Canada.
(2)None
(3)None, other than:
Radio licensing issubject tospectrum availability.
Foreign investment infacilities-based
telecommunications service suppliers ispermitted up
toacumulative total of46.7% ofvoting shares,
based on20% direct investment and33%indirect
investment. Such entities must becontrolled infact
byCanadians.
Facilities-based telecommunications service suppliers
thatexceeded thepermissible cumulative foreign
investment level cited above on22July1987 and
continue toexceed thislevel maybesubject to
restrictions.N.B.: Theheadnotes inCanada 'sschedule of
specific commitments under theGATS apply to
basic telecommunications.
(1)None
(2)None
(3)None, other than:
Atleast 80percent ofthemembers ofthe
board ofdirectors offacilities-based
telecommunications service suppliers must be
Canadian.Canada undertakes the
obligations contained in
thereference paper
attached hereto.S/GBT/W/1/Add.6
Page3Modes ofSupply: (1)Cross Border (2)Consumption Abroad (3)Commercial Presence (4)Presence ofNatural Persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2CTelecommunications Services
Sub-sectors 2C(a) -(g)&(o)of
GNS/W/120 andCPC 7529*
Local, inter-exchange and
international service, supplied
overapublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis.
(continued)
(*)indicates thattheservice
specified isacomponent ofa
more aggregated CPC item
specified elsewhere inthe
classification list.Inthecourse of1998, Teleglobe Canada willno
longer beauthorized asthesoleCanada-overseas
facilities-based telecommunications service supplier.
ForTeleglobe Canada, a"non-resident carrier" or
"associate" asdefined intheTeleglobe Canada
Reorganization Actmay, inthecourse of1998, hold
voting shares uptothepermissible cumulative
foreign investment level cited above.
Inthecourse of1998, theright toobtain alicence
tolandasubmarine cable willnolonger belimited.
Nova Scotia: Noperson mayvotemore than1,000
shares ofMaritime Telegraph andTelephone Ltd.
OnApril 15,2002, Telesat Canada willnolonger
beauthorized asthesoleoperator inCanada of
satellite space segment facilities used toprovide
national andCanada-U.S. fixed satellite services.
Until April 15,2002, licences tooperate Earth
stations fortheprovision ofCanada-U.S. fixed
satellite services maybelimited.S/GBT/W/1/Add.6
Page4Modes ofSupply: (1)Cross Border (2)Consumption Abroad (3)Commercial Presence (4)Presence ofNatural Persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2CTelecommunications Services
Sub-sectors 2C(a) -(g)&(o)of
GNS/W/120 andCPC 7529*
Local, inter-exchange and
international service, supplied
overapublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis.
(continued)
(*)indicates thattheservice
specified isacomponent ofa
more aggregated CPC item
specified elsewhere inthe
classification list.Theuseofpaytelephones toprovide services ona
resale basis andtoprovide local services isnot
permitted.
Competition intheprovision ofinterexchange voice
telephone service intheserving areas ofNorthwestel
Inc., Ontario Northland Transportation Commission,
andPrince Rupert CityTelephones, maybelimited.
Competition intheprovision oflocal wireline
telephone services intheserving areas of
Northwestel Inc., Ontario Northland Transportation
Commission, Prince Rupert CityTelephones, Telus
Communications (Edmonton) Inc.andtheother
independent telephone companies listed inCRTC
Telecom Public Notice 95-15, maybelimited.
(4)Unbound, except ashasbeen indicated inthe
headnotes totheCanadian schedule.(4)Unbound, except ashasbeen indicated in
theheadnotes totheCanadian schedule.S/GBT/W/1/Add.6
Page5
Negotiating Group onBasic Telecommunications 24April 1996
REFERENCE PAPER
Scope
Thefollowingaredefinitionsandprinciplesontheregulatoryframeworkforthebasictelecommunications
services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications transport network orservice that
(a) areexclusively orpredominantly provided byasingle orlimited number ofsuppliers;
and
(b) cannot feasibly beeconomically ortechnically substituted inorder toprovide aservice.
Amajor supplier isasupplier which hastheability tomaterially affect theterms ofparticipation (having
regard toprice andsupply) intherelevant market forbasic telecommunications services asaresult
of:
(a) control overessential facilities; or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1 Prevention ofanti-competitive practices intelecommunications
Appropriate measures shallbemaintained forthepurpose ofpreventing suppliers who, alone
ortogether, areamajor supplier from engaging inorcontinuing anti-competitive practices.
1.2 Safeguards
Theanti-competitive practices referred toabove shallinclude inparticular:
(a) engaging inanti-competitive cross-subsidization;
(b) using information obtained from competitors withanti-competitive results; and
(c) notmaking available toother services suppliers onatimely basistechnical information
about essential facilities andcommercially relevant information which
arenecessary forthem toprovide services.S/GBT/W/1/Add.6
Page6
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplier and toaccess services provided byanother supplier, where specific commitments are
undertaken.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofaquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated service suppliers orforits
subsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented ratesthataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided; and
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities.
2.3 Public availability oftheprocedures forinterconnection negotiations
Theproceduresapplicableforinterconnectiontoamajorsupplierwillbemadepubliclyavailable.
2.4 Transparency ofinterconnection arrangements
Itisensured thatamajor supplier willmake publicly available either itsinterconnection
agreements orareference interconnection offer.
2.5 Interconnection: dispute settlement
Aservice supplier requesting interconnection withamajor supplier willhaverecourse, either:
(a) atanytimeor
(b) afterareasonable period oftimewhich hasbeenmade publicly known
toanindependent domestic body, which maybearegulatory bodyasreferred toinparagraph 5below,
toresolve disputes regarding appropriate terms, conditions andrates forinterconnection within a
reasonable period oftime, totheextent thatthese havenotbeenestablished previously.S/GBT/W/1/Add.6
Page7
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicence and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon request.
5. Independent regulators
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial
withrespect toallmarket participants.
6. Allocation anduseofscarce resources
Anyprocedures fortheallocation anduseofscarce resources, including frequencies, numbers
andrightsofway,willbecarriedoutinanobjective,timely,transparentandnon-discriminatorymanner.
Thecurrent stateofallocated frequency bands willbemade publicly available, butdetailed identification
offrequencies allocated forspecific government usesisnotrequired.