RESTRICTED
WORLD TRADE S/GBT/W/1/Add.20
6February 1997
ORGANIZATION(97-0476)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM HONG KONG
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofHong Kong tomembers ofthe
Group onBasic Telecommunications.
_______________
Further toourfourth revised offerdated 30April 1996, Hong Kong ispleased tosubmit the
attached fifthrevised conditional draftoffer onbasic telecommunications services.
Therevised offerincludes market access andnational treatment commitments ininternational
simple resale offacsimile anddata,aswellastechnical amendments toreflect thegrowing consensus
thatschedules needtobestandardised.
Therevised offer hastaken intoaccount theChairman ’snoteS/GBT/W/2/Rev.1 dated
16January 1997onNotes forScheduling Basic Telecom Services Commitments andrecent discussions
intheGroup onBasic Telecommunications onscheduling:
Anybasic telecom service listed inthesector column encompasses local, longdistance and
international services forpublic andnon-public use,unless otherwise noted inthesector column;
Anybasic telecom service listed inthesector column maybeprovided onafacilities-basis
orbyresale, unless otherwise noted inthesector column;
Anybasic telecom service listed inthesector column maybeprovided through anymeans
oftechnology (eg.cable, wireless, satellites), unless otherwise noted inthesector column;
Subsector (g)-"private leased circuit services" -involves theability ofservice suppliers to
sellorlease anytypeofnetwork capacity forthesupply ofservices listed inanyother basic
telecom service subsector unless otherwise noted inthesector column. Thiswould include
capacity viacable, satellite andwireless network;
In"others" under "Local Services" and"International Services", theservices permitted are
listed tofollow theconsensus pattern ofscheduling; and
Members mayimpose licence conditions todealwiththeabuse ofmarket power ininternational
services.S/GBT/W/1/Add.20
Page2
InthelightoftheChairman ’snoteS/GBT/W/3 dated 3February 1997 onMarket Access
Limitations onSpectrum Availability, Hong Kong hasremoved itsprevious wording that"thesupply
ofradio services issubject toavailability ofradio frequencies".
Theoffer isconditional andHong Kong reserves theright tomake amendments toitprior
to15February 1997 ortomake technical corrections atanytime.S/GBT/W/1/Add.20
Page3HONG KONG 'SDRAFT OFFER -(5thREVISED)
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
COMMUNICATIONS
SERVICES
Telecommunications Services
A. Local services
(a) Voice services
(b) Packet-switched data
transmission services
(c) Circuit-switched data
transmission services
(d) Facsimile services
(e) Private leased circuit
services
(f) Others
Mobile services
-mobile radio
telephone services
including Cellular and
Personal
Communications
Services
-mobile dataservices
-radio paging services(1) None
(2) None
(3) None other thanthefollowing:
-Chubb Electronics (HK) Ltdhas
theexclusive right forproviding a
firealarm transmission system for
relaying firealarm signals between
FireServices Department
(government) andpublic buildings;
-Four licences forlocal fixed
network services were issued in
1995. New licences willnotbe
considered before June 1998.
Whether more licences willbe
issued thereafter issubject to
review in1998.
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutin
theAttachment toGATS/SC/39.(1) None
(2) None
(3) None
(4) UnboundAdditional commitments on
regulatory principles (Details
atAnnex)S/GBT/W/1/Add.20
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
B. International services
(a) Voice services (resale
based only)
(b) Packet-switched data
transmission services
(resale based only)
(c) Circuit-switched data
transmission services
(resale based only)
(d) Facsimile services (resale
based only)
(e) Others
-Callback services or
alternative calling
procedures (resale
based only)(1) None other than:
-Public external telephone service1is
notallowed;
-Forself-provision ofexternal
satellite circuits, connection to
public-switched telephone network
(PSTN) attheHong Kong endmay
berestricted;
-Forvirtual private network service,
connection toPSTN attheHong
Kong endmayberestricted;
-Formobile satellite service,
gateway station formobile satellite
traffic isnotallowed.
(2) None(1) None
(2) None
1"Telephone services" onlyincludes person toperson voice communications.S/GBT/W/1/Add.20
Page5Modes 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
-Selfprovision of
external satellite
circuits fora
company ifthe
messages originated
from orreceived at
theHong Kong end
areintended forthe
company, itsholding,
subsidiary or
affiliated companies;
or
foranorganization if
themessages
originated from or
received attheHong
Kong endare
intended forthe
common business or
activities ofthe
organization(3) None other than:
-Public external telephone service1is
notallowed;
-Forself-provision ofexternal
satellite circuits, connection to
PSTN attheHong Kong endmay
berestricted;
-Forvirtual private network service,
connection toPSTN attheHong
Kong endmayberestricted;
-Formobile satellite service,
gateway station formobile satellite
traffic isnotallowed.
(4) Unbound except forintra-corporate
transfer ofgeneral managers, senior
managers andspecialists assetoutin
theAttachment toGATS/SC/39.(3) None
(4) Unbound
-Virtual private
network service
(resale based only)
-Mobile satellite
serviceS/GBT/W/1/Add.20
Page6
Annex
Additional Commitments onRegulatory Principles
Scope
Thefollowing aredefinitions andprinciples ontheregulatory framework forbasictelecommunications
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 forthemtoprovide
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.20
Page7
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 maybearegulator asreferred toinparagraph 5below, to
resolvedisputesregardingappropriateterms,conditionsandratesforinterconnectionwithinareasonable
period oftime, totheextent thatthese havenotbeenestablished previously.
3. Universal service
Hong Kong hastherighttodefine thekindofuniversal service obligation itwishes tomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined byHong Kong.S/GBT/W/1/Add.20
Page8
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
Theregulator isseparate from, andnotaccountable to,anysupplier ofbasictelecommunications
services. Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial withrespect to
allmarket 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.