RESTRICTED
WORLD TRADE S/GBT/W/1/Add.33
13February 1997
ORGANIZATION(97-0564)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM THE REPUBLIC OFKOREA
Revised Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest oftheRepublic ofKorea tomembers
oftheGroup onBasic Telecommunications.
_______________
TheRepublic ofKorea hereby submits theattached revised offer totheGroup onBasic
Telecommunications (GBT).
Thisofferisconditional uponthereceipt ofcomparable commitments fromother negotiating
partners intheGBT, inaccordance withtheirlevelofdevelopment intelecommunications andthewhole
economy aswell. Inparticular, Korea reserves therighttomodify orwithdraw partoforallofthis
offeratanytime, untilthereisasuccessful agreement, covering acomprehensive package ofservices,
onanMFN basis, from major trading partners.
InthelightoftheChairman 'snoteof16January 1997 (S/GBT/W/2/Rev.1) onScheduling
BasicTelecomServicesCommitmentsand3February1997(S/GBT/W/3)onMarketAccessLimitations
onSpectrum Availability, theRepublic ofKorea haspermitted atechnology-neutral wayofservice
provision andremoved thewording foritsmarket access limitation onspectrum availability that"the
number ofservice suppliers maybelimited subject totheavailability ofradio frequency spectrum."
TheRepublic ofKorea reserves therighttore-insert thislimitation, depending onthelegalstatus of
theChairman'snotetobedetermined,andwhetherothernegotiatingpartnersalsoeliminatethislimitation
from theiroffers.
TheRepublic ofKorea reserves therighttomake technical amendments tothisoffer atany
timetocorrect anyerrors, omissions orinaccuracies.S/GBT/W/1/Add.33
Page2THE REPUBLIC OFKOREA -REVISED DRAFT OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2.COMMUNICATION
SERVICES
C.Telecommunications services
Facilities-based:
a.Voice telephone services
(CPC 7521**)
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)(1)None except thattheprovision ofall
services issubject tocommercial
arrangements withlicensed Korean service
suppliers
(2)None
(3)None except that:
(i) Each service supplier must bea
licensed Korean juridical person.
Alicence, including radio station licence,
maynotbegranted tothefollowing
juridical person:
(a) Until 31December 2000, more than
33percentintheaggregate and
from 1January 2001, more than49
percentintheaggregate, ofwhose
voting shares isowned by,oruntil
31December 1998, whose largest
shareholder is:(1)None
(2)None
(3)NoneAscontained inthe
attachmentS/GBT/W/1/Add.33
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Facilities-based: (cont'd)
g.Private leased circuit
services
(CPC 7522**, 7523**)
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS(personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)- Foreign government
- Foreign person, or
- Juridical person 50percent(15per
cent, ifthelargest shareholder ofthe
juridical person isaforeign
government oraforeign person) or
more ofwhose voting shares owned
byforeign governments orforeign
persons; or
(b) More than33percent(10percent,
incaseofwireline-based voice
telephone services) ofwhose voting
share isowned byaperson1
(ii) Thelargest shareholder ofKTmust
beKorean government oraKorean
person. While KT'sshare owned by
aperson2must benomore than
3percent, theaggregate foreign
shareholding inKTmust benomore
than20percentuntil 31December
2000, andnomore than33percent
from 1January 2001.
(4)Unbound except asindicated inhorizontal
commitments(4)Unbound except asindicated inhorizontal
commitments
1Thedefinition of"aperson" isinaccordance withtherelevant provision ofthePresidential Decree oftheKorea 'sTelecommunications Business Law.
2Thedefinition of"aperson" isinaccordance withtherelevant provision ofthePresidential Decree oftheKorea 'sTelecommunications Business Law.S/GBT/W/1/Add.33
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Resale-based:
a.Voice telephone services
(CPC 7521**)
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)
g.Private leased circuit
services (CPC 7522**,
7523**)
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS (personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)(1)None except thattheprovision ofall
services issubject tocommercial
arrangements withlicensed Korean service
suppliers
(2)None
(3)None except that:
(i) Each service supplier must bea
licensed Korean juridical person; and
(ii) Incaseofthejuridical person
providing voice transmission services
offered overacircuit connected to
thepublic telecommunications
transport network
(a) From 1January 1999, foreign
shareholding ispermitted upto49
percentand
(b) None asof1January 2001
(4)Unbound except asindicated inhorizontal
commitments(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
commitmentsS/GBT/W/1/Add.33
Page5
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.33
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.33
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.