RESTRICTED
WORLD TRADE S/GBT/W/1/Add.2/Rev.1
12February 1997
ORGANIZATION(97-0528)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM THE UNITED STATES
Conditional Offer
Revision
Thefollowing communication iscirculated attherequest oftheUnited States tomembers of
theGroup onBasic Telecommunications.
_______________
OnNovember 13,1996, theUnited States improved itsmarket access commitments
(S/GBT/W/1/Add.2) inresponse torequests fromournegotiating partners. TheUnited States isnow
revising itsoffertodelete thewords “subject tospectrum availability ”assuggested bytheChairman ’s
Note ofFebruary 3,1997 (S/GBT/W/3). Inaddition, theUnited States hasclarified itsoffer with
regard todirect foreign ownership ofcommon carrier radio licenses. TheUnited States maintains
itsmarket opening offerof100% indirect foreign ownership ofcommon carrier radio licenses. As
aresult, foreign investors willreceive national treatment inaccordance withU.S.law.
TheUnited States hasalsoclarified thatitsofferdoesnotinclude one-way satellite transmissions
ofDirect-to-Home andDirect Broadcast Satellite television services andofdigital audio services. This
technicalchangeisrequiredbecausetheseservicesareconsideredbasictelecommunicationsintheUnited
States butarenotpartofthese negotiations.
The U.S. commitments arebased ontheChairman ’sNote ofJanuary 16,1997
(S/GBT/W/2/Rev.1).
Thisschedule isconditioned upontheagreement byacritical massofWTO members toprovide
market access andnational treatment forbasic telecommunications services, aswellastoprovide
commitments regarding theregulatory principles contained inthereference paper. TheUnited States
reserves theright tosupplement ormodify thisschedule during theperiod ending onFebruary 15,
1997 ortomake technical corrections atanytime.S/GBT/W/1/Add.2/Rev.1
Page2UNITED STATES -REVISED CONDITIONAL OFFER
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
2.C. TELECOMMUNICATIONS
SERVICES*:
2.C.a. Voice services
2.C.b. Packet-switched data
transmission services
2.C.c. Circuit-switched data
transmission services
2.C.d. Telex services
2.C.e. Telegraph services
2.C.f. Facsimile services
2.C.g. Private leased circuit
services(1) None
(2) None
(3) None, other than
-Comsat hasexclusive rights tolinks
withIntelsat andInmarsat.
-Ownership ofacommon carrier
radio license:
Indirect: None
Direct: May notbegranted toorheldby
(a)foreign government orthe
representative thereof
(b)non-U.S. citizen orthe
representative ofanynon-U.S.
citizen(1) None
(2) None
(3) NoneTheUnited States
undertakes the
obligations contained in
thereference paper
attached hereto.S/GBT/W/1/Add.2/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
2.C.o. Other
Mobile Services
Analogue/Digital cellular
services
PCS(Personal
Communications
services)
Paging services
Mobile dataservices
*Excluding one-way satellite
transmissions ofDTH and
DBS television services and
ofdigital audio services(c)anycorporation notorganized under
thelaws oftheUnited States or
(d)U.S. corporation ofwhich more than
20% ofthecapital stock isowned or
voted byaforeign government orits
representative, non-U.S. citizens or
their representatives oracorporation
notorganized under thelaws ofthe
United States.
(4) Unbound except asindicated by
horizontal commitments(4) Unbound except asindicated by
horizontal commitments.S/GBT/W/1/Add.2/Rev.1
Page4
ATTACHMENT TOTHE UNITED STATES CONDITIONAL OFFER IN
BASIC TELECOMMUNICATIONS SERVICES
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.S/GBT/W/1/Add.2/Rev.1
Page5
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.
2.2 Interconnection tobeensured1
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.
1Rural localexchange carriers maybeexempted byastateregulatory authority foralimited period
oftimefromtheobligations ofsection 2.2.withregard tointerconnection withcompeting localexchange
carriers.
Rural telephone companies donothavetoprovide interconnection tocompeting localexchange carriers
inthemanner specified insection 2.2.untilordered todosobyastateregulatory authority.S/GBT/W/1/Add.2/Rev.1
Page6
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.
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.