RESTRICTED
WORLD TRADE S/GBT/W/1/Add.6/Rev.1
5February 1997
ORGANIZATION(97-0446)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM CANADA
Draft Offer 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 revised offerwhich improves
market access commitments andisconditional upon receiving comparable benefits from other major
GBT participants.
2. Canada willmake 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. Thisofferhasbeenamended inaccordance withtheChairman ’snoteof26November 1996
(S/GBT/W/2). Specific technical changes include: deletion ofsubsector descriptions, deletion of
technology categories, anddeletion ofreference toprovision onafacilities-basis orbyresale.
5. These changes havebeenmade onthefollowing assumptions.
Unless otherwise noted, anybasic telecommunications service listed inthesector column:
(a) encompasses local, longdistance andinternational services supplied overapublic
telecommunications network;
(b) maybeprovided onafacilities basis orbyresale; and
(c) maybeprovided bymeans ofanytechnology (e.g., cable, radiocommunications
including satellites).
6. Canada hasremoved itsmarket access limitation onspectrum availability, inaccordance with
thedraftChairman ’snoteonMarket Access Limitations onSpectrum Availability. Canada reserves
therighttore-instate thislimitation, depending onwhether there isaconsensus onthestatus ofthe
draftChairmans note, andwhether other offers alsoexclude thislimitation.
7. Inaddition, Canada reserves therighttowithdraw ormodify elements ofitsofferatanytime
prior totheconclusion ofthenegotiations onbasic telecommunications, depending onprogress on
issues ofinterest toCanada.S/GBT/W/1/Add.6/Rev.1
Page2CANADA -CONDITIONAL SCHEDULE OFCOMMITMENTS
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.(1) None, other than:
Routing ofbasic telecommunications traffic is
regulated topromote theuseofCanadian
transmission facilities fortelecommunications
between points within Canada anduntil
December 31,1999, between Canada andpoints
outside Canada.
(2) None
(3) None, other than:
Foreign investment infacilities-based
telecommunications service suppliers ispermitted
uptoacumulative total of46.7% ofvoting
shares, based on20% direct investment and
33%indirect investment. Such entities must be
controlled infactbyCanadians.
-except foroperations conducted under an
international submarine cable licence where
foreign investment willbeallowed upto100% as
ofOctober 1,1998.
Facilities-based telecommunications service
suppliers thatexceeded thepermissible
cumulative foreign investment level cited above
on22July1987 andcontinue toexceed thislevel
maybesubject torestrictions.(1) None
(2) None
(3) None, other than:
Atleast 80percentofthe
members oftheboard of
directors offacilities-based
telecommunications service
suppliers must beCanadian.Canada undertakes the
obligations contained inthe
reference paper attached
hereto.S/GBT/W/1/Add.6/Rev.1
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
OnOctober 1,1998, Teleglobe Canada willnolonger
beauthorized asthesoleCanada-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 cited 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 thantenpercent ofthetotal
number ofvoting shares ofManitoba Telecom
Services Inc.orofanaffiliate.
OnApril 15,2002, Telesat Canada willnolonger be
authorized asthesoleoperator inCanada ofsatellite
space segment facilities used toprovide national and
Canada-U.S. fixed satellite services.
Until April 15,2002, licences tooperate earth stations
fortheprovision ofCanada-U.S. fixed satellite
services maybelimited.S/GBT/W/1/Add.6/Rev.1
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
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 inthe
head notes totheCanadian schedule.(4) Unbound, except ashas
been indicated inthehead
notes totheCanadian
schedule.S/GBT/W/1/Add.6/Rev.1
Page5
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.1
Page6
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.1
Page7
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.