RESTRICTED
WORLD TRADE S/GBT/W/1/Add.26/Rev.1
15February 1997
ORGANIZATION(97-0657)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM HUNGARY
Draft Final Schedule onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofHungary tomembers oftheGroup
onBasic Telecommunications.
_______________
Upon instructions from myauthorities, herewith Isendyoutherevised draftfinalschedule
ofHungary onBasic Telecommunication Services. Itcontains improvements incomparison toour
previous offer (contained indocument S/GBT/W/1/Add.17 dated 10February 1997).
Itisourunderstanding thatbroadcasting services arenotcovered bythenegotiations therefore
broadcasting services arenotincluded intheoffer.
Thisdraftfinalschedule isconditional upon asatisfactory MFN based finaloutcome ofthe
negotiations.
Hungary reserves therighttomake anytechnical changes tothisofferandcorrect anyerrors,
omissions orinaccuracies initatanytimeprior totheconclusion ofthenegotiations. Deletion of
references tofrequency management intheMarket Access column isconditional toconsensus onthe
relevant Chairman 'sNoteandonallMembers oftheGroup onBasic Telecommunications would also
delete thereference from theirSchedules.S/GBT/W/1/Add.26/Rev.1
Page2HUNGARY -DRAFT FINAL SCHEDULE
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
2C. TELECOMMUNICATION
SERVICES (excluding
broadcasting services)1
(a) Public voice telephony
(Domestic, longdistance)(1) By-pass isnotallowed
(2) None
3(a) Foreign investment islimited bythe
required 25percentHungarian interests
and+1voteforMAT ÁVRt.and
Antenna Hungaria Rt.
3(b) Licences aregranted onlytocompanies
registered inHungary.
3(c) Exclusivity forinternational longdistance
anddomestic services until 31December
2002 andforlocal calls until 31
December 2003.
(4) Unbound, except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal sectionHungary undertakes the
obligations contained in
thereference paper
attached hereto.
1Broadcasting isdefined astheuninterrupted chain oftransmission required forthedistribution oftvandradio programme signals tothegeneral
public, butdoesnotcover contribution links between operators.S/GBT/W/1/Add.26/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(a) Public voice telephony
(resale basis, international
including satellite
transmission)(1) Refile andhotline services arenot
allowed
(2) None
3(a) Open forcompetition after 31December
2002
(b)Exclusivity forinternational longdistance
anddomestic services until 31December
2002 andforlocal calls until 31
December 2003.
(4) Unbound, except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section
(b) Packet-switched data
transmission services
(c) Circuit-switched data
transmission services
(d) Telex services
(e) Telegraph services
(f) Facsimile services
(g) Private leased circuit
services
(h) Other leased lineand
satellite transmission(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section.S/GBT/W/1/Add.26/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
O. Other
Public landmobile services (1) By-pass isnotallowed
(2) None
3(a) Licences aregranted onlytocompanies
registered inHungary.
(b)Only oneoperator isallowed forNMT-
450MHz andtwooperators for900MHz
(GSM) until 31December 2003. Limited
competition regime.
(4) Unbound, except asindicated inthe
horizontal section(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section
Nationwide paging (1) None
(2) None
3(a) Licences aregranted onlytocompanies
registered inHungary.
(b)Only oneoperator isallowed foranalog
service andtwooperators forthepan-
European services (ERMES). Limited
competition regime.(1) None
(2) None
(3) None
(4) Unbound, except asindicated inthe
horizontal section(4) Unbound, except asindicated inthe
horizontal section
PCN 1800 MHz Unbound until 31December 1998S/GBT/W/1/Add.26/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.26/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.26/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.