RESTRICTED
WORLD TRADE S/GBT/W/1/Add.9
29January 1997
ORGANIZATION(97-0335)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM SOUTH AFRICA
Draft Offer onBasic Telecommunications
Theattached communication iscirculated attherequest ofSouth Africa toMembers ofthe
Group onBasic Telecommunications.
_______________
South Africa ispleased tosubmit theaccompanying draftofferonbasic telecommunications.
South Africa reserves therighttomodify, reduce orextend thisconditional offeratanytime
prior totheconclusion ofthenegotiations onbasic telecommunications, depending ontheprogress
ofwork intheNegotiating Group onBasic Telecommunications (NGBT), thelevelofcommitments
ofnegotiating partners anddevelopments inSouth Africa.
South Africa furthermore reserves theright tomake technical changes, amendments and
corrections totheoffer.S/GBT/W/1/Add.9
Page2SOUTH AFRICA -DRAFT OFFER ONBASIC TELECOMMUNICATIONS
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
Telecommunications
Public switched
telecommunication services
except:(1) Nobypass ofTelkom monopoly or
subsequent duopoly oninternational
traffic. Telkom monopoly toterminate
notlater than31.12.2003; thereafter
duopoly.
(2) None
(3) Telkom monopoly toterminate notlater
than31.12.2003; thereafter duopoly.
Foreign investment insuppliers of
public switched telecommunication
services permitted uptoacumulative
maximum of30percent.
(4) Unbound, except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.South Africa undertakes the
attached additional
commitments onregulatory
principles.
Authorities toconsider the
feasibility ofadditional
suppliers by31.12.2003.
Liberalization ofresale
services totakeplace between
2000 and2003 with
authorities todefine terms and
conditions aswellasthe
maximum limit forforeign
investment.
- Voice services (1) Prohibition ontheuseofvalue-added
network services tosupply voice
services.
(2) None
(3) Prohibition ontheuseofvalue-added
network services tosupply voice
services.
(4) Unbound, except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/GBT/W/1/Add.9
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
- Mobile Cellular (1) None
(2) None
(3) Services supplied onaduopoly basis.
Oneadditional mobile cellular licence
willbegranted within twoyears.
(4) Unbound, except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.Authorities toexamine
feasibility ofadditional
suppliers by31.12.1998.
- Satellite-based services (1) Unbound
(2) None
(3) Unbound
(4) Unbound, except asindicated inthe
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound, except asindicated inthe
horizontal sectionSouth Africa willschedule
commitments withrespect to
thesupply ofsatellite-based
services within oneyearof
theadoption ofrelevant
measures inthisarea.S/GBT/W/1/Add.9
Page4
ADDITIONAL COMMITMENTS BYSOUTH AFRICA
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.9
Page5
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplierandtoaccessservicesprovidedbyanothersupplier,wherespecificcommitmentsareundertaken.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided1.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andofaquality nolessfavourable thanthatprovided foritsownlike
services orforlikeservices ofnon-affiliated service suppliers orforitssubsidiaries
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;
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities; and
(d) Atratesdetermined bytheauthorities2.
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.
1Theterm "non-discriminatory" isunderstood torefer tomost-favoured-nation andnational treatment as
defined intheAgreement, aswellastoreflect sector-specific usage ofthetermtomean "terms andconditions
nolessfavourable thanthose accorded toanyother useroflikepublic telecommunications transport networks
orservices under likecircumstances".
2Theauthorities maydetermine different rates inrespect ofdifferent services rendered indifferent areas
under different circumstances ormaydetermine rates which maybehigher orlower thanthenormal rates.S/GBT/W/1/Add.9
Page6
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.
4. Public availability oflicensing criteria
Where alicence isrequired, allthelicensing criteria andtheterms andconditions ofindividual
licences willbemade publicly available.
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.