RESTRICTED
WORLD TRADE S/GBT/W/1/Add.32
14February 1997
ORGANIZATION(97-0821)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM ISRAEL
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofIsrael tomembers oftheGroup
onBasic Telecommunications.
_______________
1. Inaccordance withtheagreed timetablefortheTelecommunications negotiations, Israel hereby
submits arevised draftofferonbasictelecommunications services. Israel reserves therighttomodify,
reduce orwithdraw thisoffer, inwhole orinpart,atanytimepriortotheconclusion ofthenegotiations
onbasictelecommunications. Israel further reserves therighttomake technical changes, amendments
andcorrections totheoffer.
2. Israel'scommitments arebased ontheChairman 'sNote dated 16January 1997
(S/GBT/W/2/Rev.1).
3. Inaddition, Israel hasremoved itsmarket access limitation onspectrum availability, inlight
oftheChairman 'snoteS/GBT/W/3 dated 3February 1997onmarket access limitations onspectrum
availability. Israel reserves theright tore-instate thislimitation, depending onwhether there isa
consensus onthestatus oftheChairman 'snoteandwhether other offers alsoexclude thislimitation.S/GBT/W/1/Add.32
Page2ISRAEL -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
servicesForeign investment
(a) Nolimitation onforeign ownership for
value-added service providers.
(b) 74% foreign ownership permitted in
international service providers.
(c) 80% foreign ownership permitted in
wireless service providers.1)Theexisting monopoly 's
exclusive rights indomestic
Telecommunication services
andinfrastructure mentioned
inparagraphs: a(I),a(III), b,
c,f,q,willterminate not
later thantheyear2001. The
government willpublish the
rules andregulatory policy
regarding thewayofopening
theabove mentioned to
competition inthefuture.
a. Voice telephone services
(CPC 7521)
(i)Public voice
telephone:
-wire-based
-facilities based
-local/long distance1(1) Only through network ofBezeq, the
Israel Telecommunications Corp. Ltd.
(2) None
(3) Reserved toBezeq, themonopoly
supplier: foreign equity participation in
Bezeq ispermitted.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.2)Thegovernment issued two
licenses totwooperators that
wonatender issued bythe
government fortheoperation
ofinternational services in
addition tothose offered by
thepresent operator (BEZEQ
International, which isafully
(100%)subsidiary ofBEZEQ -
thelocal PTT). The
companies have exclusivity
until 1.1.2002 andthe
government willreexamine its
policy regarding further
competition inthefield of
international services towards
theyear2001.
1International simple resale isnotpermitted.S/GBT/W/1/Add.32
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
(ii)Public voice
telephone:
-wire-based
-facilities based
-International(1) Only through network ofthree operators
(2) None
(3) Reserved tothree operators
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionSeeannexed, aswellasthe
following:
Independence ofregulator
Regulatory functions arethe
exclusive purview of
theMinistry of
Communications.
(iii)Public voice
telephone:
-local/long distance
-radio-based(1) None, butbyusing Bezeq 'snetwork, or
byusing licensees ownnetwork.
(2) None
(3) Local partner required; nomore than
80% ofshares maybeowned bya
foreign entity.
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionInterconnection
TheTelecommunications Law
(5742-1982)
authorizes theMinister of
Communications, inter
aliatoorder oneoperator to
allow interconnection
ofitsnetwork tothefacilities
ofanother operator;
bothoperators areto
negotiate theproper system
ofreimbursement.
(iv)Non-public voice
telephone: closed
usergroups and
private networks
-Local/long-distance(1) Only through Bezeq 'snetwork
(2) None
(3) Resale ofexcess capacity isnot
permitted, must bepoint-to-point
without anytransmission toathird
party.
(4) Unbound except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionShould theynotreach an
agreement, theMinister may
decide ontheproper
price fortheinterconnection,
based onincrement costs
which include operating,
expenses, andproper return
ofequity. Intheevent thata
tender will beissued for
limited competition inthis
field (i.einternational
services), theMinister will
determine maximum tariffs.S/GBT/W/1/Add.32
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.Packet-switched data
transmission (CPC 7523)
and
c.Circuit-switched data
transmission services
(CPC 7523)
-Local, Long distance(1) Only through network ofBezeq
(2) None
(3) Only through Bezeq 'spublic network
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section
c. Circuit-switched data
transmission services
(CPC 7523)
-International(1)Only byusing three operator 'sandIBS
licensees 'network.
(2)None
(3)Only byusing three operator 'sandIBS
licensees 'network
(4) Unbound except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section
f. Facsimile services
(CPC 7521 +7529)
-Local, Long distance(1) Only through network ofBezeq
(2) None
(3) Only through Bezeq 'spublic network
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section
f. Facsimile services
(CPC 7521 +7529)
-International(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionS/GBT/W/1/Add.32
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
g. Private-leased circuit
services
(CPC 7521 +7529)
-Non-voice
-Local/long-distance
-forpublic ornon-
public use(1) Only through Bezeq 'snetwork
(2) None
(3) Only through circuits leased from
Bezeq.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section
g. Private-leased circuit
services
(CPC 7521 +7529)
-Non-voice
-forpublic ornon-
public use
-International(1) Only byusing three operators andIBS
licensees 'network.
(2) None
(3) Only byusing three operators andIBS
licensees 'network.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.
o. Other
(i)Paging services(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4)Unbound except asindicated in
horizontal section.
(ii)Satellite services:
voice anddata(1) None
(2) None
(3) None
(4)Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4)Unbound except asindicated in
horizontal section.S/GBT/W/1/Add.32
Page6
ANNEX
ADDITIONAL COMMITMENTS DRAFT SCHEDULE
ONBASIC TELECOMMUNICATION 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 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 fromengaging in,orcontinuing 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.32
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 ofother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented rates, thataretransparent, 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 5
below, toresolve disputes regarding appropriate terms, conditions andratesforinterconnection
within areasonable period oftime, totheextent thatthesehavenotbeenestablished previously.
3. Universal service
Anymemberhastherighttodefinethekindofuniversalserviceobligationsitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andnotmore burdensome than
necessary forthekindofuniversal service defined bythemember.S/GBT/W/1/Add.32
Page8
4. Public availability oflicensing criteria
Where alicense isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicense; and
(b) theterms andconditions ofindividual license.
Thereasons forthedenial oflicense 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.