WORLD TRADE GATS/SC/44/Suppl.1
11April 1997
ORGANIZATION(97-1305)
Trade inServices
ISRAEL
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
_______________
Thistextreplaces theentry forsubsector (a)Public telephone services -mobile telephone,
contained onpage7andsupplements other entries relating totheTelecommunications Services section
contained onpage8ofdocument GATS/SC/44.GATS/SC/44/Suppl.1
Page2ISRAEL -SCHEDULE OFSPECIFIC COMMITMENTS
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(1) Theexisting monopoly 'sexclusive
rights indomestic Telecommunication
services andinfrastructure mentioned in
paragraphs: a(I),a(III), b,c,f,g,will
terminate notlater thantheyear2001.
Thegovernment willpublish therules
andregulatory policy regarding theway
ofopening theabove mentioned to
competition inthefuture.
(2) Thegovernment issued twolicenses to
twooperators thatwonatender issued
bythegovernment fortheoperation of
international services inaddition to
those offered bythepresent operator
(BEZEQ International, which isafully
(100%) subsidiary ofBEZEQ -thelocal
PTT). Thecompanies have exclusivity
until 1.1.2002 andthegovernment will
reexamine itspolicy regarding further
competition inthefield ofinternational
services towards theyear2001.
Foreign 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.GATS/SC/44/Suppl.1
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
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.Seeannexed, aswellasthe
following (incaseof
inconsistency between the
Annex andthefollowing text,
theAnnex willprevail):
Independence ofregulator
Regulatory functions arethe
exclusive purview ofthe
Ministry ofCommunications.
(ii)Public voice
telephone:
-wire-based
-facilities based
-International(1) Only through network ofthree operators
(2) None
(3) Reserved tothree operators. 74%
foreign ownership permitted in
international service providers
(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 the
Minister ofCommunications,
inter aliatoorder one
operator toallow
interconnection ofitsnetwork
tothefacilities ofanother
operator; bothoperators are
tonegotiate theproper system
ofreimbursement.
(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 sectionShould theynotreach an
agreement, theMinister may
decide ontheproper
price fortheinterconnection,
based onincrement costs
which include operating,
expenses, andproper return
ofequity.
1International simple resale isnotpermitted.GATS/SC/44/Suppl.1
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
(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 sectionIntheevent thatatender will
beissued forlimited
competition inthisfield (i.e
international services), the
Minister willdetermine
maximum tariffs.
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 network ofBezeq.
Foreign equity participation inBezeq is
permitted.
(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 operators 'andIBS
licensees 'network.
(2)None
(3)Only byusing three operators 'andIBS
licensees 'network. 74% foreign
ownership permitted ininternational
service providers
(4) Unbound except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionGATS/SC/44/Suppl.1
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
f. Facsimile services
(CPC 7521 +7529)
-Local, Long distance(1) Only through network ofBezeq
(2) None
(3) Only through network ofBezeq.
Foreign equity participation inBezeq is
permitted.
(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 section
g. Private-leased circuit
services
(CPC 7522+ 7523)
-Non-voice
-Local/long-distance
-forpublic ornon-
public use(1) Only through Bezeq 'snetwork
(2) None
(3) Only through circuits leased from
Bezeq. 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 sectionGATS/SC/44/Suppl.1
Page6Modes 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 7522+ 7523)
-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. 74% foreign
ownership permitted ininternational
service providers
(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.GATS/SC/44/Suppl.1
Page7
ANNEX
ADDITIONAL COMMITMENTS 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.GATS/SC/44/Suppl.1
Page8
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.GATS/SC/44/Suppl.1
Page9
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.