RESTRICTED
WORLD TRADE S/GBT/W/1/Add.6/Rev.2
14February 1997
ORGANIZATION(97-0604)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM CANADA
Schedule ofSpecific Commitments onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofCanada tothemembers ofthe
Group onBasic telecommunications.
_______________
1. With aview toachieving acomprehensive andmutually advantageous agreement onbasic
telecommunications within theWTO/GATS, Canada submits theattached finaloffer which further
improves market access commitments andisconditional bothuponthereview offinaloffers submitted
byother GBT participants andupon receiving comparable benefits from other major participants on
anMFN basis.
2. Canada undertakes Additional Commitments based ontheReference Paper of24April 1996.
3. Canada reserves theright tomake technical changes totheoffer andtocorrect anyerrors,
omissions orinaccuracies, respecting items atfederal orsub-national levels.
4. Thisofferismade inaccordance withtheChairman ’snotes of16January 1997onScheduling
Basic Telecom Services Commitments (S/GBT/W/2/Rev.1) andof3February 1997onMarket Access
Limitations onSpectrum Availability (S/GBT/W/3).S/GBT/W/1/Add.6/Rev.2
Page2CANADA -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector
(GNS/W/120 Coding)Limitations onMarket Access Limitations onNational
TreatmentAdditional Commitments
2CTelecommunications
Services*, **
2C(a) Voice telephone
services
2C(b) Packet-switched data
transmission services
2C(c) Circuit-switched data
transmission services
2C(d) Telex services
2C(e) Telegraph services
2C(f) Facsimile services
2C(g) Private leased circuit
services
2C(o) Other -
Mobile services
*Excluding services regulated
under theBroadcasting Actand
measures affecting such services.
**Excluding telecommunications
services supplied forthe
transmission ofservices regulated
under theBroadcasting Actwhere
such services areintended for
direct reception bythepublic.(1)None, other than:
Routing ofbasic telecommunications services between
points within Canada, andbetween Canada andpoints
outside ofCanada, isregulated topromote theuseof
Canadian transmission facilities, except thatrouting of:
- mobile satellite services willbeunrestricted asof
January 1,1998 between points inCanada, and
between Canada andpoints intheUnited States;
- allmobile satellite services willbeunrestricted as
ofOctober 1,1998;
- allinternational services willbeunrestricted asof
December 31,1999, except forfixed satellite
services between Canada andpoints intheUnited
States;
- satellite services willbeunrestricted asofMarch
1,2000.
(2)None(1)None
(2)NoneCanada undertakes the
obligations contained inthe
reference paper attached
hereto.S/GBT/W/1/Add.6/Rev.2
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector
(GNS/W/120 Coding)Limitations onMarket Access Limitations onNational
TreatmentAdditional Commitments
(3)None, other than:
Foreign investment infacilities-based
telecommunications service suppliers ispermitted upto
acumulative totalof46.7% ofvoting shares, based on
20% direct investment and33%indirect investment.
Such suppliers must becontrolled infactby
Canadians. Except that:
- foreign investment willbeallowed upto100% as
ofOctober 1,1998 foroperations conducted
under aninternational submarine cable licence;
- mobile satellite systems owned andcontrolled up
toalevel of100% byaforeign service provider
maybeused byaCanadian service provider to
provide services inCanada;
- fixed satellites owned andcontrolled uptoalevel
of100% byforeign service providers maybe
used toprovide services between points in
Canada andallpoints outside ofCanada, except
intheUnited States, asofDecember 31,1999;
- fixed satellites owned andcontrolled uptoalevel
of100% byforeign service providers maybe
used toprovide services between points in
Canada andbetween Canada andpoints inthe
United States, asofMarch 1,2000.
Facilities-based telecommunications service suppliers
thatexceeded thepermissible cumulative foreign
investment level cited above onJuly22,1987 and
continue toexceed thislevel maybesubject to
restrictions.(3)None, other than:
Atleast 80percent ofthe
members oftheboard ofdirectors
offacilities-based
telecommunications service
suppliers must beCanadian.S/GBT/W/1/Add.6/Rev.2
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector
(GNS/W/120 Coding)Limitations onMarket Access Limitations onNational
TreatmentAdditional Commitments
Upto100% foreign investment isallowed inservice
providers ofbasic telecommunications services
supplied onaresale basis.
OnOctober 1,1998, Teleglobe Canada willnolonger
beauthorized tobethesoleCanada-overseas facilities-
based telecommunications service supplier.
ForTeleglobe Canada, a"non-resident" carrier or
"associate" asdefined intheTeleglobe Canada
Reorganization Actmay, onOctober 1,1998, hold
voting shares uptothepermissible cumulative foreign
investment level of46.7% ascited above.
OnOctober 1,1998, theright toobtain alicence to
landasubmarine cable willnolonger belimited.
Nova Scotia: noperson mayvotemore than1,000
shares ofMaritime Telegraph andTelephone Ltd.
Manitoba: noperson ormembers ofanyonegroup of
associated persons maybeneficially own, other thanby
wayofsecurity, more than10% ofthetotalnumber of
voting shares ofManitoba Telecom Services Inc.orof
anaffiliate.S/GBT/W/1/Add.6/Rev.2
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector
(GNS/W/120 Coding)Limitations onMarket Access Limitations onNational
TreatmentAdditional Commitments
OnMarch 1,2000, Telesat Canada willnolonger be
authorized tobethesoleoperator inCanada offixed
satellite space segment facilities used toprovide
national andCanada-U.S. fixed satellite services.
Until March 1,2000, licences tooperate earth stations
fortheprovision ofCanada-U.S. fixed satellite
services maybelimited.
Theuseofpaytelephones toprovide services ona
resale basis andtoprovide local services isnot
permitted.
Competition intheprovision ofinterexchange voice
telephone service intheserving areas ofNorthwestel
Inc., Ontario Northland Transportation Commission,
andPrince Rupert CityTelephones, maybelimited.
Competition intheprovision oflocal wireline
telephone services intheserving areas ofNorthwestel
Inc., Ontario Northland Transportation Commission,
Prince Rupert CityTelephones, Telus Communications
(Edmonton) Inc.andtheother independent telephone
companies listed inCRTC Telecom Public Notice 95-
15,maybelimited.
(4)Unbound, except ashasbeen indicated inthehead
notes totheCanadian schedule.(4)Unbound, except ashasbeen
indicated inthehead notes tothe
Canadian schedule.S/GBT/W/1/Add.6/Rev.2
Page6
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.
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.S/GBT/W/1/Add.6/Rev.2
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) 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.
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.S/GBT/W/1/Add.6/Rev.2
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
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.