Acting U.S. Trade Representative Charlene Barshefsky told reporters at a Washington press briefing after agreement was reached in Geneva that the high standards for success that the Clinton administration set would yield dividends to consumers around the world. The earlier proposals rejected by the United States came from 47 countries and covered only 60 percent of the global telecommunications market, she said. Not only did 21 more countries come forward with offers since last April, raising the coverage rate to 95 percent, she boasted, but several key countries improved the quality of their concessions in the last days of the talks. Mexico, for example, agreed to allow 100 percent foreign ownership of cellular service firms as well as full foreign ownership of long-distance and local telephone carriers. South Korea lifted its commitment on foreign ownership to 49 percent from 30 percent and threw in other measures that U.S. negotiators applauded.
New competitors can build their own network or lease capacity on existing networks.
Ensuring that regulations reflect procompetitive, free-market principles. Permitting significant foreign investment in and control over domestic telecommunications firms. The first two points, surprisingly, were not stumbling blocks to agreement. The last principle, however, raised fears among many governments about foreign domination of their countries' domestic communications markets and provoked concerns about the concomitant economic impacts. For instance, Ottawa refused to allow foreign firms to own more than 46.7 percent of any Canadian telecommunications firm but had no problem with the other principles.