WORLD TRADE S/GBT/4
15February 1997
ORGANIZATION(97-0675)
Group onBasic Telecommunications
REPORT OFTHE GROUP ONBASIC TELECOMMUNICATIONS
1. Thisreport ismade inaccordance withparagraph 4oftheDecision onCommitments inBasic
Telecommunications, adopted bytheCouncil forTrade inServices on30April 1996 (S/L/19). In
paragraph 1ofthisDecision, theCouncil alsoadopted thetextoftheFourth Protocol totheGeneral
AgreementonTradeinServicesandtooknoteoftheSchedulesofCommitmentsandListsofExemptions
from Article IIlisted intheAttachment tothefinal Report oftheNegotiating Group onBasic
Telecommunications (S/NGBT/18).
2. TheDecision onCommitments onBasic Telecommunications established theGroup onBasic
Telecommunications to"conduct consultations ontheimplementation ofparagraph 3oftheDecision ".
Paragraph 3states that"during theperiod from 15January to15February 1997, aMember which
hasaSchedule ofCommitments annexed totheProtocol, maysupplement ormodify suchSchedule
oritsListofArticle IIExemptions" andthat"anysuchMember which hasnotannexed totheProtocol
aListofArticle IIExemptions maysubmit suchalistduring thesame period".
3. AttheGroup 'sfirstmeeting inJuly1996, participants suggested thattheprincipal issues before
theGBTincluded thedesirability ofimproving thequantity andquality ofSchedules offered, andthe
need toaddress certain issues which hadbeen leftunresolved inApril. Subsequently, theGroup
sponsored frequent rounds ofbilateral negotiations onoffers andregularly included discussion of
outstanding issues initsmeetings. InNovember participants began submitting revised draftoffers
ofcommitments onbasic telecommunications forconsideration. TheGroup 'sReport totheCouncil
onTrade inServices (S/GBT/2), which formed partoftheReport totheSingapore Ministerial
Conference, recommended thatMinisters "stress theircommitment tobring thenegotiations onbasic
telecommunications toasuccessful conclusion by15February 1997, urgeallWTO Members tostrive
forsignificant,balancedandnon-discriminatoryliberalizationcommitmentsonbasictelecommunications
bythatdateandrecognize theimportance ofresolving theprincipal issues before theGBT". The
DeclarationadoptedbyMinistersinSingapore(WT/MIN(96)/DEC)containedacommitmentto"achieve
asuccessful conclusion tothenegotiations onbasictelecommunications inFebruary 1997". Ministers
alsostated "Wearedetermined toobtain aprogressively higher levelofliberalization inservices on
amutually advantageous basiswithappropriate flexibility forindividual developing country members,
asenvisaged intheagreement, inthecontinuing negotiations andthose scheduled tobegin nolater
than1January 2000. Inthiscontext, welookforward tofullMFN agreements based onimproved
market access commitments andnational treatment".
4. Initsdiscussions onoutstanding issues, theGroup considered thefollowing matters: ways
toensure accurate scheduling ofcommitments -particularly withrespect tosupply ofservices over
satellites andtothemanagement ofradio spectrum; potential anti-competitive distortion oftrade in
international services; thestatus ofintergovernmental satellite organizations inrelation toGATS
provisions; andtheextent towhich basictelecommunications commitments include transport ofvideo
and/or broadcast signals within theirscope.S/GBT/4
Page2
5. TheChairman issued notes reflecting hisunderstanding oftheposition reached indiscussion
ofthescheduling ofcommitments andmanagement ofradio spectrum. ThefirstsuchNotesetouta
number ofassumptions applicable tothescheduling ofcommitments andwasintended toassist in
ensuring thetransparency ofcommitments (S/GBT/W/2/Rev.1 of16January 1997). Thesecond
addressed theallocation ofradio spectrum, suggesting thattheinclusion ofreferences totheavailability
ofspectrum inschedules wasunnecessary andthatsuchreferences should bedeleted (S/GBT/W/3
of3February 1997). These Notes areattached tothisReport.
6. By15February 1997 thetotalnumber ofschedules submitted hadreached 55(counting as
onetheofferoftheEuropean Communities andtheirMember States). Ninegovernments hadsubmitted
listsofArticle IIExemptions.
7. TheGroup noted thatfivecountries hadtaken Article IIexemptions inrespect oftheapplication
ofdifferential accounting ratestoservices andservice suppliers ofother Members. Inthelightof
thefactthattheaccounting ratesystem established under theInternational Telecommunications
Regulations istheusual method ofterminating international traffic andbyitsnature involves differential
rates, andinorder toavoid thesubmission offurther suchexemptions, itistheunderstanding ofthe
Group that:
- theapplication ofsuchaccounting rateswould notgiverisetoaction byMembers under
dispute settlement under theWTO; and
- thatthisunderstanding willbereviewed notlaterthanthecommencement ofthefurther
Round ofnegotiations onServices Commitments duetobegin notlaterthan1January
2000.
8. TheGroup alsorecalled paragraph 6oftheDecision of30April, which stated thatMembers
oftheWorld Trade Organization which havenotannexed totheProtocol Schedules ofCommitments
orLists ofExemptions from Article IImaysubmit, forapproval bytheCouncil, Schedules of
Commitments andListsofExemptions from Article IIrelating tobasic telecommunications prior to
1January 1998.
9. Atitsmeeting of15February 1997, theGroup adopted thisreport andtheattached listofthe
Schedules ofCommitments andListsofArticle IIExemptions, which, inaccordance withparagraph 3
oftheDecision onCommitments inBasic Telecommunications, willbeattached totheFourth Protocol
totheGeneral Agreement onTrade inServices inreplacement ofthose attached on30April 1996.S/GBT/4
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WORLD TRADE S/GBT/W/2/Rev.1
16January 1997
ORGANIZATION(97-0173)
Group onBasic Telecommunications
Note bytheChairman
Revision
Ithasbeensuggested byanumber ofdelegations thatitmight behelpful toproduce abrief
andsimple noteonassumptions applicable tothescheduling ofcommitments inbasic telecoms. The
purpose oftheattached noteistoassist delegations inensuring thetransparency oftheircommitments
andtopromote abetter understanding ofthemeaning ofcommitments. Thisnoteisnotintended to
haveoracquire anybinding legal status.
NOTES FOR SCHEDULING BASIC TELECOM SERVICES COMMITMENTS
1. Unless otherwise noted inthesector column, anybasic telecom service listed inthesector
column:
(a) encompasses local, longdistance andinternational services forpublic andnon-public
use;
(b) maybeprovided onafacilities-basis orbyresale; and
(c) maybeprovided through anymeans oftechnology (e.g., cable1,wireless, satellites).
2. Subsector (g)--private leased circuit services --involves theability ofservice suppliers tosell
orleaseanytypeofnetwork capacity forthesupply ofservices listed inanyother basictelecom service
subsector unless otherwise noted inthesector column. Thiswould include capacity viacable, satellite
andwireless network.
3. Inviewofpoints 1and2above, itshould notbenecessary tolistcellular ormobile services
asaseparate subsector. However, anumber ofMembers havedoneso,andanumber ofoffers have
commitments onlyinthese subsectors. Therefore, inorder toavoid extensive changes inschedules,
itwould seem appropriate forMembers tomaintain separate entries forthese subsectors.
1Including alltypes ofcable.S/GBT/4
Page4
WORLD TRADE S/GBT/W/3
3February 1997
ORGANIZATION(97-0415)
Original: English Group onBasic Telecommunications
CHAIRMAN 'SNOTE
Market Access Limitations onSpectrum Availability
Many Members haveentries inthemarket access column oftheirschedules indicating that
commitments are"subject toavailability ofspectrum/frequency" orsimilar wording. Inlightofthe
physical nature ofspectrum andtheconstraints inherent initsuse,itisunderstandable thatMembers
mayhavesought torelyonthesewords toadequately protect legitimate spectrum management policies.
There is,however, doubt thatwords suchas"subject toavailability ofspectrum/frequency" aslisted
inthemarket access column ofmany Members 'schedules achieve thatobjective.
Spectrum/frequency management isnot,perse,ameasure which needs tobelisted under
Article XVI. Furthermore under theGATS eachMember hastherighttoexercise spectrum/frequency
management, which mayaffect thenumber ofservice suppliers, provided thatthisisdoneinaccordance
withArticleVIandotherrelevantprovisionsoftheGATS.Thisincludestheabilitytoallocatefrequency
bands taking intoaccount existing andfuture needs. Also, Members which havemade additional
commitment inlinewiththeReference Paper onregulatory principles arebound byitsparagraph 6.
Therefore, words suchas"subject toavailability ofspectrum/frequency" areunnecessary and
should bedeleted from Members 'schedules.S/GBT/4
Page5
ATTACHMENT
Schedules ofCommitments andLists ofArticle IIExemptions
tobeannexed totheFourth Protocol oftheGeneral
Agreement onTrade inServices
Argentina S/GBT/W/1/Add.55
+S/GBT/W/12 (ListofArticle IIexemptions)
Antigua andBarbuda S/GBT/W/1/Add.44
+S/GBT/W/8 (ListofArticle IIexemptions)
Australia S/GBT/W/1/Add.10/Rev.2
Bangladesh S/GBT/W/1/Add.38
+S/GBT/W/7 (ListofArticle IIexemptions)
Belize S/GBT/W/1/Add.52
Bolivia S/GBT/W/1/Add.4/Rev.1
Brazil S/GBT/W/1/Add.28/Rev.1
+S/GBT/W/10 (ListofArticle IIexemptions)
Brunei Darussalam S/GBT/W/1/Add.35
Bulgaria S/GBT/W/1/Add.8/Rev.1
+S/GBT/W/1/Add.8/Rev.1/Corr.1
Canada S/GBT/W/1/Add.6/Rev.2
Chile S/GBT/W/1/Add.37/Rev.1
Colombia S/GBT/W/1/Add.46
Côte d'Ivoire S/NGBT/W/12/Add.31/Rev.1
Czech Republic S/GBT/W/1/Add.11/Rev.1
Dominica S/GBT/W/1/Add.51
Dominican Republic S/GBT/W/1/Add.30
Ecuador S/NGBT/W/12/Add.26
ElSalvador S/GBT/W/1/Add.13
European Communities and
their Member StatesS/GBT/W/1/Add.1/Rev.2
Ghana S/GBT/W/1/Add.17/Rev.1
Grenada S/GBT/W/1/Add.22
Guatemala S/GBT/W/1/Add.41
Hong Kong S/GBT/W/1/Add.20/Rev.1
Hungary S/GBT/W/1/Add.26/Rev.1
Iceland S/GBT/W/1/Add.27
India S/GBT/W/1/Add.24/Rev.1
+S/NGBT/W/19 (ListofArticle IIexemptions)S/GBT/4
Page6
Indonesia S/GBT/W/1/Add.15/Rev.1
Israel S/GBT/W/1/Add.32
Jamaica S/GBT/W/1/Add.45
Japan S/GBT/W/1/Add.29/Rev.1
Korea, Republic of S/GBT/W/1/Add.33/Rev.1
Malaysia S/GBT/W/1/Add.21/Rev.1
Mauritius S/GBT/W/1/Add.19
Mexico S/GBT/W/1/Add.16/Rev.2
Morocco S/GBT/W/1/Add.54
NewZealand S/GBT/W/1/Add.25/Rev.1
Norway S/GBT/W/1/Add.23
Pakistan S/GBT/W/1/Add.31
+S/GBT/W/5 (ListofArticle IIexemptions)
Papua NewGuinea S/GBT/W/1/Add.36
Peru S/GBT/W/1/Add.18
+S/GBT/W/1/Add.18/Corr.1
Philippines S/GBT/W/1/Add.42
Poland S/GBT/W/1/Add.12/Rev.3
Romania S/GBT/W/1/Add.14/Rev.1
Senegal S/GBT/W/1/Add.43/Rev.1
Singapore S/GBT/W/1/Add.7/Rev.1
Slovak Republic S/GBT/W/1/Add.3/Rev.2
South Africa S/GBT/W/1/Add.9/Rev.2
SriLanka S/GBT/W/1/Add.40
+S/GBT/W/6 (ListofArticle IIexemptions)
Switzerland S/GBT/W/1/Add.5/Rev.1
+S/GBT/W/1/Add.5/Rev.1/Corr.1
Thailand S/GBT/W/1/Add.39
Trinidad andTobago S/GBT/W/1/Add.48
Tunisia S/GBT/W/1/Add.34
Turkey S/GBT/W/1/Add.49/Rev.1
+S/GBT/W/11 (ListofArticle IIexemptions)
United States ofAmerica S/GBT/W/1/Add.2/Rev.1
+S/GBT/W/9 (ListofArticle IIexemptions)
Venezuela S/GBT/W/1/Add.50/Rev.1