RESTRICTED
WORLD TRADE S/GBT/W/1/Add.31
12February 1997
ORGANIZATION(97-0543)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM PAKISTAN
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofPakistan toMembers oftheGroup
onBasic Telecommunications.
_______________
TheGovernment ofPakistan hereby submits itsrevised offer onBasic Telecommunications
insuppression ofdocument number S/NGBT/W/12/Add.28/Rev.1 dated 29April 1996. Thisrevised
offer contains substantial improvements.
Therevised offerisconditional upon satisfactory conclusion ofthenegotiations. Wereserve
therighttomodify, reduce orwithdraw thisofferatanytimeprior toconclusion ofthenegotiations
andtomake anytechnical changes, correct omissions, errors andinaccuracies. Wealsohereby file
theListofArticle II(MFN) Exemptions onaccounting rateaspartoftherevised offer.S/GBT/W/1/Add.31
Page2PAKISTAN -REVISED DRAFT OFFER
Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
General conditions ofthisoffer: Thisoffer issubject tofollowing general conditions:
- Policy, Regulatory andoperation functions areseparate andcompliance isnecessary.
- Allservices tobeprovided inPakistan shall require alicence from theRegulatory authority established under thelaw.
- Operators andService providers maybegranted licence inaccordance withthelocal legislation.
- Thenumber ofoperators, service providers andlicensees maybelimited duetotechnical constraints.
- Theconfidentiality ofInternational Total Accounting Rate (TAR) shall bemaintained.
- Thebilateral agreements onaccounting rates shall beinaccordance withITUguidelines.
- Upto100% foreign investment onlicensed services ispermitted
2.C. Telecommunications Service
Local, domestic long
distance andinternational
services, forpublic:Until 2004, nobypass ofPTCL
network andPTCL shall have
exclusivity.About 12percentstake of
thePakistan
Telecommunication
Corporation (PTC), thesole
operator forallbasic
Telecommunication services
wassoldtothenational and
international buyers in1994-
95through twodifferent
offers ofPTC vouchers in
national andinternational
financial markets.
(a) Voice telephone services (1) Alltelecommunication services
shall beprovided bylicensed
operators subject totheexclusivity
period of7years forbasic
telephony services under thelawin
favour ofPTCL. This exclusivity
shall expire bytheyear2004.(1) UnboundS/GBT/W/1/Add.31
Page3Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(a) Voice telephone services
(cont'd)(2) Alternative practices such ascall
back arenotallowed. Country
direct cardservice canonlybe
permitted bymutual agreement with
thelicensed operator.
(3) Unbound
(4) Unbound except asindicated in
horizontal section.(2) Unbound
(3) Unbound
(4) Unbound except asindicated in
horizontal section.Theoffers were many times
over subscribed. The
Corporation hasbeen, inter
alia, converted intoalimited
company namely Pakistan
Telecommunication Company
Ltd(PTCL) witheffect from
1January, 1996 through the
promulgation ofalaw.
(b) Packet-switched data, E-
mail, Internet andIntranet
services
(c) Circuit-switched data
transmission services(1) Until 2004, onlythrough network
facilities ofPTCL. Theregulatory
authority togrant licences and
authorizations toprivate companies
foroperation ofdata, E-mail,
Internet andIntranet services in
addition tothelicences already
granted.
(2) None
(3) Subject totechnical constraints, the
regulatory authority togrant
licences andauthorizations to
private companies foroperation of
data, E-mail, Internet &Intranet
services inaddition tothelicences
already granted.
(4) Unbound except asindicated in
horizontal section.(1) Unbound
(2) None
(3) None except fortechnical
constraints
(4) Unbound except asindicated in
horizontal section.Itisproposed todisinvest 26
percentofPTCL stake toa
strategic investor through
international competitive
bidding. Exclusive licence for
operation ofbasic telephony
services foraperiod of7
years shall begranted tothe
selected strategic investor
withtransfer ofmanagement
control ofthePTCL.
ThePakistan
Telecommunications (Re-
organisation) Lawhasbeen
passed asanActof
Parliament inOctober 1996.
Anindependent Regulatory
Authority andaFrequency
Allocation Board have been
established. Chairman,
members andother essential
staffofthese bodies is
already inplace. The
Authority andBoard are
already functional.S/GBT/W/1/Add.31
Page4Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(d) Telex 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.ThePakistan
Telecommunication Authority
established under thelawas
anindependent body is
responsible to:
(e) Telegraph services (1) Pakistan Telecommunication
Company Limited istheexclusive
service provider forseven years.
Thisexclusivity shall expire bythe
year2004.
(2) None
(3) Unbound
(4) Unbound except asindicated in
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated in
horizontal section.-Regulate
telecommunication
services.
-Grant andrenew licences.
-Promote andprotect the
interests ofconsumers
-Promote efficient, cost
effective andcompetitive
services.
-Carry outinspections.
-Regulate tariffs.
(f) Facsimile 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.-Prescribe standards
-Determine terms of
interconnection
agreements.
-Investigate andadjudicate
oncomplaints.
-Enforcement onvaluationS/GBT/W/1/Add.31
Page5Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(g) Private leased circuit
services(1) Pakistan Telecommunication
Company Limited istheexclusive
service provider forseven years.
Thisexclusivity shall expire bythe
year2004.
(2) None
(3) Pakistan Telecommunication
Company Limited istheexclusive
service provider forseven years.
Thisexclusivity shall expire bythe
year2004.
(4) Unbound except asindicated in
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated in
horizontal section.-International traffic and
accounting settlements.
-Issue regulations.
-Receive applications for
frequency allocation.
h) Video conferencing tele-
medicine andtele-education
terminal endservices(1) Theregulatory authority shall grant
licences andauthorizations to
private companies foroperation of
video-conferencing, tele-education
andtelemedicine services, using
PTCL network until seven years.
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionThefrequency allocation
Board established under the
lawisresponsible toallocate
andassign frequency
spectrum for
telecommunication,
broadcasting public and
private wireless services and
classify radio
telecommunication services.
Appeals against thedecisions
oftheAuthority maybefiled
intheHigh Court.S/GBT/W/1/Add.31
Page6Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(i) Satellite based telephony
andother services(1) Maintaining PTCL exclusivity for
seven years onbasic and
international telephony services and
safeguarding PSTN bypass licences
shall begranted
(2) None
(3) None except fortechnical,
sovereignty andsecurity constraints
andsafeguarding PSTN bypass
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None except fortechnical,
sovereignty, security constraints
andsafeguarding PSTN bypass
(4) Unbound except asindicated in
horizontal sectionFollowing services have been
licensed totheprivate
operators andfurther
licensing could bepossible:
-Cellular Mobile telephone
services.
-Card payphones services
-Paging
-Data network operation
-Voice Mail Service
-Audio TexService
-Trunk Radio service
-Electronic Mail and
internet services
-Useofdomestic satellites
forprovision oftelecom
services
-Manufacture oftelex, fax,
allPABXs/Digital
exchanges andmodems
-manufacture of
Fibre/Optic/copper cables
-manufacture oftelephone
sets, terminal equipment
answer machine etc.
-manufacture ofjointing
material forcopper/optic
cables
Regulatory Authority shall
grant licences oncompetitive
basis aspertelecom lawand
regulations.S/GBT/W/1/Add.31
Page7Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Regulatory Authority may
grant licences forsatellite
based services onfollowing
conditions:
(a) Frequency clearance
byBoard
(b) Security and
sovereignty
regulations
(c) Availability ofITUT
standards
(d) resolution ofcross-
border
communication
issues; and
(e) resolution of
Customs proceduresS/GBT/W/1/Add.31
Page8
ATTACHMENT TOTHE PAKISTAN 'SREVISED DRAFT OFFER
(Reference Paper)
1. Transparency ofRegulations
1.1 Laws andregulations pertaining toprovisions ofbasic telecom services shallbepublished.
1.2 Advanced public notice andafairopportunity willbeprovided forinterested parties tocomment
onproposed measures affecting theprovision ofbasic telecom services.
1.3 TheRegulatory Authority consists ofthree members, oneisaprofessional telecom engineer
andother twoaretechnical andfinancial experts, appointed bytheGovernment foraterm
offouryears andeligible forappointment forasimilar term.
1.4 Anymember oftheAuthority shallnothaveanydirect orindirect financial interest in,orhave
business connection withanyperson, anyestablishment orfirmwhich renders telecom services
inPakistan orabroad. Forabove purpose evenanyinvolvement ofthespouse orblood relation
ofanymember oftheAuthority withanytelecom firmshallbeconsidered asadirect financial
interest orconnection withsuchfirm.
1.5 TheAuthority shallensure that:
(a) rights oflicensees aredulyprotected;
(b) decisionsanddeterminationsaremadepromptlyinopen,equitable,non-discriminatory,
consistent andtransparent manner;
(c) thepersons affected byitsdecisions ordeterminations aregiven aduenotice and
provided opportunity ofbeing heard.
1.6 Aperson aggrieved byanydecision ororder oftheAuthority canwithin thirty daysofthe
receipt oforder, appeal totheHighCourt andtheCourt shalldecide suchappeal within ninety
days.
1.7 Aperson aggrieved byanydecision ororder ofanyofficer oftheAuthority may, within thirty
daysoftheorder, appeal totheAuthority andtheAuthority shalldecide suchappeals within
thirty days.
2. Interconnection andNumbering
2.1 Intheevent thataservice supplier isunable toreach agreement withanyordominant service
supplier orinterconnection, following areasonable amount oftime, either party mayreferthe
dispute totheRegulator inPakistan.
2.2 Service suppliers shall berequired todisclose information concerning technical
measures/parameters thatwillaffect useofsuchfacilities forother service suppliers.
2.3 TheRegulatory Authority shallexercise allpowers toenable ittoeffectively provide guidelines
for,anddetermine, theterms ofinterconnection arrangements between licensees where the
parties areunable toagree.S/GBT/W/1/Add.31
Page9
2.4 Authorityshalldevelop/assignnon-discriminatorynationaltelecommunicationnumberingplans.
3. Competition Safeguards andstandards
3.1 When facilities-based service supplier withdominant market position isfound engaged inunfair
oranti-competitive practices, remedial measures willbeavailable.
3.2 When dominant service supplier provides acompetitive service heshall establish separate
accounting procedure forthecompetitive service. Cross subsidy isnotpermitted.
3.3 TheAuthority shallnotify andpublish regulations forestablishing national standards fortelecom
equipment andservices. TheAuthority canspecify different standards fordifferent classes
oftelecom equipment/services andestablish procedure fortesting.
3.4 TheAuthority shall notrestrict thetypeoftelecom equipment thatmaybeusedforthe
establishment, maintenance oroperation oftelecom systems orservices.
4. Tariff Regime
Theleveloftariffs fortelecom services including basic telephone service shallberegulated
bytheAuthority inaccordance withtheregulations including following principles:
4.1 Theregulations shallapply equally tocomparable provider/users ofanyregulated telecom
service;
4.2 Thecriteria usedfortheestablishment oftariffshallregularly bepublished threemonths before
thecriteria isadopted;
4.3 Tariffs shallbeatalevel which provides areasonable rateofreturn oninvestments taking
intoaccount thecostofoperation; and
4.4 There shallbenocross-subsidization ofother telecom services bybasic telephone service.