RESTRICTED
WORLD TRADE WT/ACC/SPEC/LTU/1/Rev.1/Add.1
15October 1997
ORGANIZATION(97-4464)
Working Party onthe Original: English
Accession ofLithuania
WORKING PARTY ONTHE ACCESSION OFLITHUANIA
Additional Commitments intheSector ofTelecommunications Services
Addendum
TheGovernment ofLithuania hassubmitted thefollowing reference paper concerning additional
commitments inthesector oftelecommunications services.
_______________
Scope:
Thefollowing aredefinitions andprinciples ontheregulatory framework forthebasic
telecommunications 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 of
suppliers; and
(b) cannot feasibly beeconomically ortechnically substituted inorder toprovide
aservice.
Amajor supplier isasupplier which hastheability tomaterially affect theterms
ofparticipation (having regard toprice and supply) inrelevant market forbasic
telecommunications services asaresult of:
(a) control over essential facilities; or
(b) useofitsposition inthemarket.WT/ACC/SPEC/LTU/1/Rev.1/Add.1
Page2
I. COMPETITIVE SAFEGUARDS
A. Prevention ofAnti-competitive Practices inTelecommunications
Appropriate measures shall bemaintained forthepurpose ofpreventing suppliers who,
alone ortogether, areamajor supplier from engaging inorcontinuing anti-competitive
practices.
Comment:
This practice isalready implemented byissuing aLaw onCompetition in1993 andLaw on
Communications in1995.
B. Safeguards
Theanti-competitive practices referred toabove shall include inparticular:
(a) engaging inanti-competitive cross-subsidization;
(b) using information obtained from competitors with anti-competitive results; and
(c) notmaking available toother services suppliers ontimely basis technical
information about essential facilities andcommercially relevant information which
arenecessary forthem toprovide services.
Comment:
Provisions onsafeguards arecovered bytheLawonCompetition, Law onCommunications, Law
onMass Media (adopted in1996) andnewdrafted LawonTelecommunications (will beadopted
attheendof1997).
II. INTERCONNECTION
A. This section applies tolinking with suppliers, providing public telecommunications
transport networks orservices inorder toallow theusers ofonesupplier tocommunicate
with users ofanother supplier andtoaccess services provided byanother supplier, where
specific commitments areundertaken.
B. Interconnection tobeEnsured
Interconnection with amajor supplier willbeensured atanytechnically feasible point
inthenetwork. Such interconnection isprovided:
(a) under non-discriminatory terms, conditions (incl. technical standards and
specifications) andrates andofaquality nolessfavourable thanthatprovided
foritsownlikeservices orforlikeservices ofnon-affiliated service suppliers or
foritssubsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (incl. technical standards andspecifications)
andcost-oriented ratesthataretransparent, reasonable, having regard toeconomic
feasibility, andsufficiently unbundled sothatthesupplier neednotpayfornetwork
components orfacilities thatitdoesnotrequire fortheservice tobeprovided; andWT/ACC/SPEC/LTU/1/Rev.1/Add.1
Page3
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities.
C. Public Availability oftheProcedures forInterconnection Negotiations
Theprocedures applicable forinterconnection toamajor supplier willbemade publicly
available.
D. Transparency ofInterconnection Arrangements
Itisensured thatamajor supplier willmake publicly available either itsinterconnection
agreements orareference interconnection offer.
E. Interconnection: Dispute Settlement
Aservice supplier requesting interconnection with amajor supplier willhave recourse,
either:
(a) atanytime or
(b) after areasonable period oftime which hasbeen made publicly known to
anindependent domestic body, which may bearegulatory body asreferred
toinparagraph 5below, toresolve disputes regarding appropriate terms,
conditions andrates forinterconnection within areasonable period oftime,
totheextent thatthese have notbeen established previously.
Comment:
Interconnection isdefined inLawonCommunication andnewdrafted LawonTelecommunications:
(i) anyprovider having adominant position inamarket fortelecommunications services
forthepublic shallenable competitors insuchmarket toaccess, onanon-discriminatory
basis, theservices heusesinternally andthose heoffers tothemarket, totheextent
thattheyareessential, upon thesame conditions heapplies tohimself fortheuseof
suchservices toprovide other telecommunications services, unless theestablishment
oflessfavourable conditions, particularly theimposition ofrestrictions, isobjectively
justified. Such provider mayinparticular onlyrestrict access insofarasthisisin
linewiththeessential requirements within themeaning ofArticle 3(2)ofCouncil
Directive 90/387/EEC of28June1990 ontheestablishment oftheinternal market
fortelecommunications services through theimplementation ofopennetwork. Inthis
regard, competitors shall beinformed ofwhich essential requirement underlies a
restriction inthegiven instance. Thefollowing areas areincluded:
- telephony networks andbasic telephony services;
- datacommunications networks andbasic datacommunications services;
- mobile communications networks andbasicmobile communications services;
- other cable- orradio-based telecommunications infrastructure, except satellite
communication;WT/ACC/SPEC/LTU/1/Rev.1/Add.1
Page4
(ii) providers ofpublic telecommunications networks ortelecommunications services shall
bepresumed tohavesignificant market power when theyhaveashare ofmore than
25percentofaparticulartelecommunicationsmarketinthegeographicalareasinwhich
theyareproviding telecommunications networks ortelecommunications services.;
(iii) theNational Telecom Agency (NTA) shall make arrangements toensure thatthe
interconnection agreements submitted totheNTA andtheterms forinterconnection
aremade available tothepublic. Ifaparty toanagreement requests sowhen the
agreement issubmitted, theNTA maydecide thatparts ofanagreement containing
information ofessential commercial significance tothepartyshallnotbemade available
tothepublic.However,pricesforinterconnectionandothertermsofgeneralimportance
shallalways bemade available tothepublic.
III. UNIVERSAL SERVICE
AnyMember hastheright todefine thekind ofuniversal service obligation itwishes
tomaintain. Such obligations willnotberegarded asanti-competitive perse,provided they
areadministered inatransparent, non-discriminatory andcompetitively neutral manner and
arenotmore burdensome than necessary forthekind ofuniversal service defined bythe
Member.
Comment:
(i) Theobjective ofthenewdrafted LawonTelecommunications istoensure allusers
oftelecommunications access toabasic range oftelecommunications services at
predetermined, cost-based andnon-discriminatory maximum tariffs.
(ii) Thenewdrafted Law onTelecommunications willbeapplied toproviders of
telecommunications networks orservices available tothepublic.
Obligation toProvide Universal Services under newdrafted LawonTelecommunications:
(i) Theuniversal service obligation (USO), tobeensured byappointing oneormore USO
providers, shallinclude provision ofthefollowing telecommunications services:
- atelephony network andanassociated telephony services;
- anISDN (Integrated Services Digital Network) network andtheassociated ISDN
services;
- leased lines, except broad-band lines;
- special USOservices forcertain groups ofhandicapped persons orspecial USOterms
andprices forthese groups.
(ii) TheMinistry ofCommunications andInformatics (MCI) muststipulate more specific
rulesonthetelecommunicationsnetworksandserviceswiththeassociatedbasicnetwork
andservice functions andonthegeneral quality requirements tobemetbytherelevant
telecommunications networks andservices.
(iii) TheMCImuststipulate more specific rulesastowhatspecial USOservices andUSO
terms andprices should bemade available toindividual groups ofhandicapped persons.WT/ACC/SPEC/LTU/1/Rev.1/Add.1
Page5
IV. PUBLIC AVAILABILITY OFLICENSING CRITERIA
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftime normally required toreach
adecision concerning anapplication foralicence; and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon
request.
Comment:
licensing criteria aredefined inLawonCommunications, Government Resolution No.1400 On
Confirmation ofRegulations onLicensing Telecommunications Activities (31October 1995) andnew
drafted LawonTelecommunications.
(i) TheNTA willissuealllicences andpermits granted inaccordance withthenewdrafted
Law onTelecommunication.$ The establishment and/or operation ofpublic
telecommunications networks, provision oftelecommunications services onLithuanian
territory isonlyallowed when theNTA hasdesignated thenecessary frequencies for
itsoperation orgranted therelevant permit.
(ii) TheNTA isobligated tobasetheirlicensee policy onopen, non-discriminatory and
transparent procedures.
(iii) Theuseofradio frequencies andspecification ofterms forthisshallbemade within
theframework ofthenational frequency plan, andtheprovisions laiddown therein
forusing individual parts oftheoverall radio frequency resources.
V. INDEPENDENT REGULATORS
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecisions ofandtheprocedures used byregulators shall
beimpartial with respect toallmarket participants.
Comments:
independent regulators aredefined innewdrafted Law onTelecommunications:
- allresponsibilities, either political orregulatory within thefieldoftelecommunications
aredivided between thetwotelecommunications authorities; thus,being thepolitical
authority represented bytheMCIandtheregulatory authority represented bytheNTA.;
- theMCI isresponsible forallthepolitical decisions arising inthefield of
telecommunications. Furthermore, theMCIisresponsible forstipulating legislation
within thefieldoftelecommunications;
- theNTA shall beestablished asahigher regulatory body within thefield of
telecommunications andwilldischarge functions arising from thisorother Acts(as
forexample Enterprises Law). TheNTA willbecome effective from1January 1998.WT/ACC/SPEC/LTU/1/Rev.1/Add.1
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VI. ALLOCATION AND USEOFSCARCE RESOURCES
Anyprocedures fortheallocation anduseofscarce resources, including frequencies,
numbers andrights ofway, willbecarried outinanobjective, timely, transparent and
non-discriminatory manner. Thecurrent stateofallocated frequency bands willbemade publicly
available, butdetailed identification offrequencies allocated forspecific government uses is
notrequired.