RESTRICTED
WORLD TRADE S/GBT/W/1/Add.16
31January 1997
ORGANIZATION(97-0423)
Original: Spanish Group onBasic Telecommunications
COMMUNICATION FROM MEXICO
Conditional Offer onBasic Telecommunications Services
Revision
Theattached communication iscirculated attherequest ofMexico tomembers oftheGroup
onBasic Telecommunications.
________________
InconformitywiththedecisionsoftheGrouponBasicTelecommunications,Mexico'sconditional
offer inthissector isattached.
Mexico reserves theright tomake technical changes, modify orreduce itsoffer depending
onthecommitments offered byother participants.
Thecommitments ofthisoffertakeaccount oftheNoteoftheChairman oftheGroup onBasic
Telecommunications (S/GBT/W/2/Rev.1).
ThehorizontalcommitmentsinMexico'sScheduleofConcessions,inforcesince1January1995,
apply tothisconditional offer intheBasic Telecommunications sector.MEXICO -COMMITMENTS -REVISIONS/GBT/W/1/Add.16
Page 2
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2.cTelecommunications services:
Telecommunications services
supplied byapublic
telecommunications network and
based ontheuseoffacilities
(wire-based andradioelectric)
through anyexisting
technological medium, included
insubparagraphs (a),(b),(c),
(f),(g)and(o).(1)None, except thefollowing:
International traffic must berouted
through thefacilities ofanenterprise
thathasalicence granted bythe
Ministry ofCommunications and
Transport (SCT).
(2)None
(3)Alicence from theSCT isrequired.
Only enterprises established in
conformity withMexican lawmay
obtain such alicence.
Licences forspectrum frequency
bands forspecific useswillbegranted
bypublic invitation totender andwill
besubject tospectrum availability.
Foreign governments maynot
participate inanenterprise setupin
accordance withMexican lawnor
obtain anyauthorization toprovide
telecommunications services.(1)None
(2)None
(3)NoneMexico undertakes the
obligations contained inthe
reference paper attached
hereto.Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitmentsS/GBT/W/1/Add.16
Page 3Direct foreign investment upto40per
centispermitted inanenterprise
established ortobeestablished in
Mexican territory.
Telecommunicaciones deMexico
(Telecomm) hasexclusive rights to
links withIntelsat andInmarsat.
Services other thaninternational
long-distance services which require
useofsatellites must useMexican
satellite infrastructure until the
year2002.
(4)Unbound, except asindicated inthe
horizontal section.(4)Unbound, except asindicated inthe
horizontal section.
(a)Voice telephony (CPC 75211,
75212) andcellular telephone
services (75213**)
(b)Packet-switched public data
transmission services and
networks
(CPC 7523**)
(c)Circuit-switched data
transmission networks and
services
(CPC 7523**)(1)None, except asindicated in(2.C.1)
(2)None
(3)Asindicated in(2.C.3)
(4)Unbound, except asindicated inthe
horizontal section.(1)None
(2)None
(3)None
(4)Unbound, except asindicated inthe
horizontal section.Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(f)Facsimile servicesS/GBT/W/1/Add.16
Page 4
(CPC 7521** +7529**)(1)None, except asindicated in(2.C.1)
(2)None(1)None
(2)None
(3)Apermit issued bytheSCT is
required inorder toprovide apublic
facsimile service. Only enterprises
setupinaccordance withMexican
lawmayobtain such apermit.
(4)Unbound, except asindicated inthe
horizontal section.(3)None
(4)Unbound, except asindicated inthe
horizontal section.
(g)Private leased circuit services
(CPC 7522** +7523**)(1)None, except asindicated in(2.C.1)
(2)None
(3)Operators ofprivate networks wishing
toexploit services commercially must
obtain alicence from theSCT,
whereupon such networks assume the
character ofpublic networks.
(4)Unbound, except asindicated inthe
horizontal section.(1)None
(2)None
(3)None
(4)Unbound, except asindicated inthe
horizontal section.
(o)Paging services
(CPC 75291)(1)None, except asindicated in(2.C.1)
(2)None
(3)Asindicated in(2.C.3)
(4)Unbound, except asindicated inthe
horizontal section.(1)None
(2)None
(3)None
(4)Unbound, except asindicated inthe
horizontal section.S/GBT/W/1/Add.16
Page5
REFERENCE PAPER
Scope
Thefollowing areprinciples anddefinitions ontheregulatory framework forthebasic
telecommunications services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications network ofservice 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 as
aresult 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.
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplierandtoaccessservicesprovidedbyanothersupplier,wherespecificcommitmentsareundertaken.S/GBT/W/1/Add.16
Page6
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) Atanytime; or
(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.
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:S/GBT/W/1/Add.16
Page7
(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.