WORLD TRADE GATS/SC/6/Suppl.3
11April 1997
ORGANIZATION
(97-1470)
Trade inServices
AUSTRALIA
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
_______________
Thistextsupplements theentries relating totheTelecommunication services section contained
onpages 24to25ofdocument GATS/SC/6.GATS/SC/6/Suppl.3
Page2AUSTRALIA -SCHEDULE OFSPECIFIC COMMITMENTS
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. COMMUNICATION
SERVICES
C. Telecommunications
services
Covers thefollowing sub-
sectors from theServices
Sectoral Classification Listand
related CPC numbers
7521,7522,7523, 7529**GATS/SC/6/Suppl.3
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) Voice telephone services
(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
(o) Other
Digital Cellular services
Paging services
Personal
Communications Services(1) None
(2) None
(3) Primary supply ofsatellite services limited
totwoservice providers (licensed general
carriers) until 30June 1997.
Primary supply ofpublic mobile cellular
telecommunications services limited to
three service providers (licensed mobile
carriers) until 30June 1997.
TheGovernment hasintroduced legislation
aimed atimplementing anunlimited
number ofbasic telecommunications carrier
licences from 1July1997 andnosector
specific foreign equity limits fornew
carriers. Australia binds itself tothe
outcome ofthisParliamentary process in
terms ofnumbers ofcarrier licences and
foreign equity applying tonewcarrier
licences. Anentity holding anewcarrier
licence must beapublic body ora
constitutional corporation under Australian
law.(1) None
(2) None
(3) NoneTheattached reference
paper onregulatory
principles isincorporated
asadditional
commitments by
Australia.GATS/SC/6/Suppl.3
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
Trunked Radio System
services
Mobile Data Services
Services covered bythe
Broadcasting Services
Act1992 areexcluded
from thebasic
telecommunications
sectorThefirstlicensed general carrier, Telstra, is
government owned. Legislation permitting the
saleofonethird ofthegovernment 'sequity in
Telstra comes intoeffect on1May 1997.
Foreign equity willbelimited to35% ofthisone
third (about 11.7% oftotal equity) withalimit
of5%oftheonethird (about 1.7% oftotal
equity) available toindividual orassociated
group foreign investors.
There arenolimits ontotalforeign equity in
Optus (holder ofgeneral carrier andmobile
licence). However, foreign investment policy
requirements forOptus aresuch thatthere are
certain limits ontheshare ofequity which any
individual foreign shareholder mayhold. There
isarequirement formajority Australian
ownership ofVodafone (holder ofamobile
carrier licence). Measures shall bemaintained to
ensure thatthese arrangements continue toapply
after 30June 1997.TheChairman anddirectors ofOptus must be
Australian citizens, other thanthose directors
(who must comprise theminority) appointed by
thetwocurrent major foreign investors.
(4) Unbound except asindicated inhorizontal
section.(4) Unbound except asindicated inhorizontal
section.GATS/SC/6/Suppl.3
Page 5
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
supplierandtoaccessservicesprovidedbyanothersupplier,wherespecificcommitmentsareundertaken.GATS/SC/6/Suppl.3
Page 6
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 affiliates2;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented rates3thataretransparent, 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.
1Theinterconnection regime toapply inAustralia from 1July1997 (subject toParliamentary
passage ofthenecessary legislation) willprovide access onterms andconditions which arefair
andreasonable toallparties andwhich donotunfairly discriminate between users. Access rights
willbeguaranteed bylegislation andtheterms andconditions ofaccess willbeestablished
primarily through processes ofcommercial negotiation orbyreference toaccess undertakings
given byaccess providers which maydraw upon anindustry codeofpractice. Anycodeof
practice andeachaccess provider 'sundertaking willbesubject toapproval bytheindependent
regulator.
2Non-discrimination istaken tomean onanMFN andNational Treatment basis. Inthefully
competitive market inAustralia, therateatwhich interconnection isprovided isdetermined by
negotiation. Bothnegotiating parties haverecourse toanindependent arbitrator which willmake a
decision based ontransparent criteria toensure thatratesarefairandreasonable inthecircumstances.
3Theindependent arbitrator mayresolve anydispute onwhatcosts arerelevant indetermining
rates(seefootnote 2).GATS/SC/6/Suppl.3
Page 7
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.