RESTRICTED
WORLD TRADE S/GBT/2
23October 1996
ORGANIZATION(96-4481)
Group onBasic Telecommunications
REPORT OFTHE GROUP ONBASIC TELECOMMUNICATIONS
TOTHE COUNCIL ONTRADE INSERVICES
1. TheNegotiating Group onBasic Telecommunications, established byMinisterial decision at
Marrakesh, completed itsworkon30April 1996. TheNegotiating Group hadheld17meetings between
May1994 andApril 1996. Fifty-three WTO Members werefullparticipants inthenegotiations and
24governments participated asobservers. TheNGBT submitted itsfinalreport totheCouncil for
Trade inServices (S/NGBT/18) on30April; toitwereattached alistoftheresults ofthenegotiations,
intheform of34Schedules ofCommitments representing 48WTO Member governments andone
ListofArticle II(MFN) Exemptions. Also on30April, theCouncil adopted theDecision on
Commitments inBasic Telecommunications (S/L/19) andtheFourth Protocol totheGeneral Agreement
onTrade inServices (S/L/20).
2. Ofthe34Schedules attached totheProtocol, 32offermarket access commitments invoice-
telephony; 28relate tolocaltelephone services, 27todomestic longdistance and25tointernational
services. Other services onwhich commitments were offered included data-transmission services
(31schedules), cellular/mobile telephone markets (28),private-leased circuit services (27)other types
ofmobile services (22)andsatellite services (16). Inanumber ofcases these commitments would
bephased-inovertime.Thirtyofthe34Schedulesincludecommitmentsrelatingtoregulatorydisciplines
onsuchmattersascompetitionsafeguards,interconnection,licensingandtheindependenceofregulators-
matters which hadbeenextensively discussed inNGBT meetings devoted toconceptual andtechnical
issues.
3. TheSchedules andExemption Lists attached totheFourth Protocol willenter intoforce on
1January 1998 provided thattheProtocol hasbeenaccepted byallMembers concerned. However,
theDecision bywhich theCouncil adopted theProtocol alsoprovided thatduring theperiod from
15January to15February 1997theSchedules andExemption Listsmaybesupplemented ormodified,
andestablished anew Group onBasic Telecommunications toconduct consultations onthe
implementation ofthisprovision.
4. TheCouncil Decision alsoincluded astandstill provision calling upontheMembers concerned,
tothefullest extent consistent withtheirexisting legislation andregulations, nottotakemeasures which
would beinconsistent withtheirundertakings resulting fromthese negotiations. TheCouncil, which
willmonitortheacceptanceoftheProtocol,willalsoexamineanyconcernsraisedbyMembersregarding
thestandstill.
5. TheGroup onBasic Telecommunications (GBT) helditsfirstmeeting on19July1996. At
thatmeeting, theGroup decided tobeopentoallMembers oftheWTO. Participants recognized the
importance oftheresults achieved inApril, interms ofcreating abenchmark forfurther liberalization
andestablishing newregulatory disciplines. Participants suggested thattheprincipal issues before the
GBTincluded thedesirability ofimproving thequantity andquality ofSchedules offered, andtheneed
toaddress possible distortions intrade resulting fromthecoexistence ofopenmarkets andmonopoly
markets ininternational telecommunications services andtoclarify commitments ontheprovision of
satellite-based services.
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6. TheGBTapproved atimetable ofmeetings andactivities leading uptothe15February 1997
deadline forthemodifications. Thetimetable comprised monthly meetings inSeptember, October and
November 1996 andamore intensive programme ofmeetings tobeheldduring the15January to
15Februaryperiod,theconductofbilateralnegotiationsinassociationwiththesemeetings,andindicative
dates forthesubmission totheGroup ofproposals forneworimproved draftoffers throughout the
process. Itwasalsoproposed thattheGBT should holdahigh-level meeting inNovember 1996.
7. Itisrecommended thatMinisters stress theircommitment tobring thenegotiations onbasic
telecommunications toasuccessful conclusion by15February 1997, urgeallWTO Members tostrive
forsignificant,balancedandnon-discriminatoryliberalizationcommitmentsonbasictelecommunications
bythatdateandrecognize theimportance ofresolving theprincipal issues before theGBT.