RESTRICTED
WORLD TRADE S/GBT/W/1/Add.37
13February 1997
ORGANIZATION(97-0572)
Original: Spanish Group onBasic Telecommunications
COMMUNICATION FROM CHILE
Conditional Offer byChile onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest ofChile tomembers oftheGroup
onBasic Telecommunications.
_______________
IhavethehonourtoattachtherevisedconditionalofferbyChileinthecontextofthenegotiations
onbasictelecommunications services. Thepurpose ofthisrevision istomake asubstantive contribution
tothenegotiations inthissector andtotheliberalization oftradeinbasic telecommunications services.
Thisrevision istheoutcome ofthebilateral negotiations Chile hasundertaken andincludes
certain technical adjustments toclarify matters included intherevised offerof30April 1996, document
S/NGBT/W/12/Add.16/Rev.2.
Thepresent revision ofChile'sconditional offer incorporates thefollowing:
(1) With regard tothescope ofthecommitments undertaken byChile, itispointed outthat
telecommunications services consist ofthetransport ofelectromagnetic signals (sound, data,
image oranycombination thereof) regardless ofthetypeoftechnology used. Thisdefinition
doesnotcover theeconomic activity consisting oftheprovision ofaservice thecontent of
which requires theuseoftelecommunications services foritstransport. Theprovision ofa
service thecontent ofwhich istransported viatelecommunications services issubject tothe
terms andconditions established intheschedule ofspecific commitments undertaken byChile
inthatsector, subsector oractivity.
(2) Adoption oftheNoteoftheChairman oftheGroup onBasic Telecommunications, document
S/GBT/W/2/Rev.1. Without prejudice totheforegoing, Chile'scommitments apply solely
inregard todomestic andinternational long-distance basic telecommunications services.
(3) Regarding thereference included inChile'soffer under themarket access column "Subject
toavailability offrequency", Chile isready toadopt theNoteoftheChairman oftheGroup
onBasic Telecommunications (S/GBT/W/3), forwhich reason thismeasure hasbeeneliminated
fromtheoffer. Chile reserves therighttoreintroduce and/or modify thismeasure initsschedule
ofcommitments, inkeeping withdecisions onthismatter adopted bytheGBT.S/GBT/W/1/Add.37
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(4) Under Additional Commitments, thereference tothelimitation onparticipation inthemarket
toamaximum percentage ofthetotaloftaxable minutes forinternational long-distance telephone
services hasbeendeleted. Ithasbeendeleted inview ofthefactthatthismeasure willbe
inforce untilSeptember 1997 andthecommitments inChile'sschedule willenter intoforce
on1January 1998.
(5) Under Additional Commitments, allofthereference paper circulated on24April 1996 has
beenadopted. However, withregard toAllocation anduseofscarce resources, Chile hasdeleted
theword"government" fromtheoriginal wording ofthereference paper, sothatitscommitment
reads asfollows:
Anyprocedures fortheallocation anduseofscarce resources, including frequencies,
numbers andrights ofway, willbecarried outinanobjective, timely, transparent
andnon-discriminatory manner. Thecurrent stateofallocated frequency bands will
bemadepubliclyavailable,butdetailedidentificationoffrequenciesallocatedforspecific
government usesisnotrequired.
Thisofferiscontingent onthecontent oftheoffers oftheother participants inthesenegotiations
andtheextenttowhichtheoffersrespectthemost-favoured-nationclause.Chilealsomakesthisschedule
contingent onacceptance bytheother Members oftheWTO ofChile'srequests.
Chile reserves therighttomaintain, modify orreduce thisschedule atanytime, inkeeping
withtheconditions described. Italsoreserves therighttointroduce anytechnical changes itdeems
relevant.CONDITIONAL OFFER BYCHILE ONBASIC TELECOMMUNICATIONSS/GBT/W/1/Add.37
Page 3Revision
Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
BASIC TELECOMMUNICATIONS SERVICES:
Telecommunications services consist ofthetransport ofelectromagnetic signals (sound, data, image oranycombination thereof) regardless ofthetypeof
technology used. Thisdefinition does notcover theeconomic activity consisting oftheprovision ofaservice thecontent ofwhich requires theuseof
telecommunications services foritstransport. Theprovision ofaservice thecontent ofwhich istransported viatelecommunications services issubject tothe
terms andconditions established intheschedule ofspecific commitments undertaken byChile inthatsector, subsector oractivity.
Thecommitments inthisoffer takeaccount ofthenotes oftheChairman oftheGroup onBasic Telecommunications (S/GBT/W/2/Rev.1 andS/GBT/W/3) anddo
notinclude local basic telecommunications services.
Includes onlydomestic and
international long-distance basic
telecommunications services:
(a)Telephone services
(CPC 7521)
(b)Packet-switched data
transmission services
(CPC 7523)
(c)Circuit-switched data
transmission services
(CPC 7523)
(d)Telex services (CPC 7523)
(e)Telegraph services (CPC 7522)Horizontal measures remain asindicated
intheschedule ofspecific
commitments.
(1)None
(2)None
(3) Subject toaconcession, licence or
permit from theSub-Secretariat
forTelecommunications.
Thesupplier providing a
(domestic andinternational)
long-distance telephone service
must beanopen corporation.Horizontal measures remain as
indicated intheschedule ofspecific
commitments.
(1) None
(2) None
(3) NoneTopromote freecompetition, fora
period offouryears from
27August 1994, participation inthe
market bysuppliers ofdomestic
long-distance services shall belimited to
amaximum percentage ofthetotalof
taxable minutes fordomestic long-
distance telephone services established by
law.
Additional commitments concerning
regulatory aspects (seeattached note).Modes ofsupply: (1)Cross-border supply (2)Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitmentsS/GBT/W/1/Add.37
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(f) Facsimile services (CPC 7521
+7529)
(g) Private leased circuit services
(CPC 7522 +7523)
Other:
-Domestic andinternational
satellite services andsatellite
links/capacity
-Mobile/cellular services:
personal communications
services, paging services,
mobile datatransmission
services(4)Unbound, except asindicated inthe
horizontal commitments.(4)Unbound, except asindicated in
thehorizontal commitments.S/GBT/W/1/Add.37
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REFERENCE PAPER
Scope
Thefollowing aredefinitions andprinciples ontheregulatory framework forthebasic
telecommunications services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications transport network orservice
that:
(a) Areexclusively orpredominantly provided byasingle supplier oralimited 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 as
aresult of:
(a) Control ofessential 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
supplierandtoaccessservicesprovidedbyanothersupplier,wherespecificcommitmentsareundertaken.S/GBT/W/1/Add.37
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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) Atanytime; or
(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:S/GBT/W/1/Add.37
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(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, andnoaccountable 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.