RESTRICTED
WORLD TRADE S/GBT/W/1/Add.29
11February 1997
ORGANIZATION(97-0523)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM JAPAN
Draft Offer onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest ofJapan tomembers oftheGroup
onBasic Telecommunications.
_______________
1. Japan hereby submits arevised draft offer submitted totheNegotiating Group onBasic
Telecommunications (NGBT) on30April 1996 (S/NGBT/W/12/Add.2/Rev.3).
2. Therevised offerincludes themodification ofthefootnote oninterconnection tolimititsscope.
Therevised offeralsoincludes thedeletion oftheprovision concerning theavailability offrequency,
inaccordance withtheChairman 'snoteonMarket Access Limitations onSpectrum Availability dated
3February 1997 (S/NGBT/W/3). Japan reserves therighttoreinstate thislimitation, depending on
whether there isachange ofthestatus oftheChairman 'snote, andwhether other offers alsoexclude
thislimitation.
3. Inaddition, withregard tointernational simple resale services, Japan isready todelete the
existing reservation, provided other members commit themselves toabolish thereciprocal exante
examination regime andnottoestablish defacto market entry barrier ofthesame nature oraccept
thesuccessful conclusion ofthenegotiation withnoreservation onthisissue.
4. Thisoffer, including theremoval offoreign ownership restrictions oftelecommunications
business, isconditional anddependent onthemajor negotiating partners committing themselves to
liberalizing measures including theremoval offoreign ownership restrictions, establishment of
frameworks forfairandeffective competition, andguarantee oftransparent regulations.
5. Duetothelegalandtechnical uncertainties surrounding certain regulatory issues, which still
needfurther examination, additional inscription totheschedule maybemade.
6. Japan reserves therighttomodify orwithdraw allorpartofitscommitments, andtolistMFN
exemptions. Japan, however, hopes thatother Members alsoundertake meaningful commitments on
anMFN basis.S/GBT/W/1/Add.29
Page2JAPAN -FOURTH REVISED DRAFT OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional
commitments
2. COMMUNICATION
SERVICES
C. Telecommunications
services
Thefollowing basic
telecommunications services
supplied byType IorType II
Telecommunications Business:
(UNCPC)
a. Voice telephone services
(CPC 7521)
b. Packet-switched data
transmission services
(CPC 7523**)
c. Circuit-switched data
transmission services
(CPC 7523**)
d. Telex services
(CPC 7523**)1)2)&3) Provision ofinternational simple
resale services inamanner tobypass
theinternational accounting rate
system islimited.
(3) Foreign capital participation, direct
and/or indirect, inNTT andKDD
must belessthanone-fifth.(1) None
(2) None
(3) Board members andauditors inNTT and
KDD arerequired tohave Japanese
nationality.
Asindicated inHORIZONTAL
COMMITMENTS.Japan undertakes the
obligations contained in
thereference paper
attached hereto.S/GBT/W/1/Add.29
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional
commitments
f. Facsimile services
(CPC 7521**, 7529**)
g. Private leased circuit
services
(CPC 7522**, 7523**)
o. Others
Type ITelecommunications
Business isthebusiness which
provides telecommunications
services byestablishing
telecommunications circuit
facilities.
Type IITelecommunications
Business isany
telecommunications business
other thanType I
Telecommunications Business.
Telecommunications circuit
facilities aretransmission line
facilities connecting transmitting
points withreceiving points,
switching facilities installed as
inseparable units therefore, and
other facilities accessory tosuch
facilities.(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS(4) Unbound except asindicated in
HORIZONTAL COMMITMENTSS/GBT/W/1/Add.29
Page4
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.S/GBT/W/1/Add.29
Page5
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.
2.2 Interconnection tobeensured1
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.
1Thesection 2.2.isapplied onlytoamajor supplier which hascontrol overessential facilities.S/GBT/W/1/Add.29
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, 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.