WORLD TRADE
ORGANIZATIONTN/S/W/2
30 May 2002
(02-2958)
Council for Trade in Services
Special SessionOriginal:  Spanish
COMMUNICATION FROM CUBA
Negotiating Proposal on Telecommunications Services
The following communication has been received from the delegation of Cuba with the request
that it be circulated to the Members of the Council for Trade in Services.
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I. INTRODUCTION
1. Cuba submits this negotiating proposal1 as an initial contribution to the discussion on
telecommunications services in the framework of the special negotiating session of the Council for
Trade in Services.
2. This document is intended to promote measures to facilitate the growing participation of
developing countries in telecommunications trade, by having regard for their economic situation and
development, trade and financial needs.
3. It is also intended to promote an assessment of the impact of the GATS in strengthening the
capacity of developing countries to provide telecommunications services through better access to
technology, distribution channels and information networks.
II. RESULTS OF THE CHANGES IN THE TELECOMMUNICATIONS SECTOR
4. The 1990s were characterized by profound technological changes in the telecommunications
sector, by the gradual disappearance of the state-owned enterprises that dominated the sector in the
1980s and by the emergence of the current situation in which private enterprises prevail, and in which
89 countries with over 90 per cent of global revenue have made liberalization commitments with
regard to some or all telecommunications subsectors.
5. At the same time as the technological and structural changes to the telecommunications sector
have taken place, its impact on other sectors, such as finance, information technology and tourism, has
grown.  The future development of these sectors is nowadays inextricably linked to the development
of global telecommunications systems and networks and the growth of world trade.
6. Although private sector participation in tel ecommunications sector financing in certain
developing countries in the 1990s has reflected the increasing coverage of telephony in thesecountries, the technological divide which separates them from the developed world has not been
                                                     
1 Cuba reserves the right to amend this proposal, which does not prejudge its final position on
subsectors or services not included in the analysis, at any time.TN/S/W/2
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bridged, adequate access to information and communication technologies has not been provided,
particularly in rural and remote areas, and this continues to present a barrier to the potential of these
countries to participate in world trade on an equal footing.
7. The liberalization process that has taken place in the sector has failed to resolve all of the
problems in response to the telecommunications ne eds of many developing countries.  Furthermore,
the fulfilment of universal service obligations has not been achieved with equitable coverage, whichleads to inadequate access to in formation and technology networks.
8. The following chart shows that, at the beginning of 2001, high-income countries, which are
home to only 15 per cent of the world's population, accounted for 55 per cent of fixed telephone lines,
65 per cent of mobile telephones and 74 per cent of internet users, while the remaining countries,
home to 85 per cent of the world's population, accounted for only 45 per cent of fixed telephone lines,
35 per cent of mobile telephones and 25 per cent of internet users, and that the imbalance was
significantly greater in the case of low-income countries, which contain 60 per cent of the world'spopulation.
Distribution of Users by Income Group, January 2001
0%20%40%60%80%100%
Population Telephone Lines Mobile Users Internet UsersHigh Income15 %
55 %
65 %74 %6.1 B illion 986 
Million741 
Million361 
Million
Middle to 
High Income
Middle to 
Low Income
Low Income
Source:  ITU, World Telecommunications Indicators, database.
III. OTHER ASPECTS TO TAKE INTO ACCOUNT IN THE NEGOTIATIONS
9. Many countries that have privatized and liberalized telecommunications still require
satisfactory regulation of the sector in order to ensure harmonious national development.  In addition,when Members acquire foreign capital, they seek to strengthen national capacities with new
technologies guaranteeing their development.  The right of Members to regulate and introduce new
regulations was reaffirmed by Ministers in paragraph 7 of the Doha Declaration.
10. Another issue examined in relation to the telecommunications sector that constitutes a matter
of particular interest for developing countries concerns the Understanding on Accounting Rates,TN/S/W/2
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which Cuba considers to be in force while Members fail to reach consensus on the existence of the
conditions which led to its adoption.
IV. EXPECTED OUTCOME OF THE NEGOTIATIONS
11. The negotiations should take into account the development disparities between the various
Members, granting differential treatment to developing countries, pursuant to Articles IV and XIX.2.
The aim of these negotiations should be to seek a balance whereby the developed countries fulfil theircommitments, application of which will mean improved access for developing countries to new
information and communication technologies, with a view to strengthening their national capacity in
the sector and participating in trade on a more equal footing.
12. Lastly, Cuba recognizes the importance of global telecommunications trade to the economic
and social development of developing countries and proposes that the negotiations take this into
account by applying Article XIX:2 of the GATS
2 to the letter.
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2 The process of liberalization shall take place with due respect for national policy objectives and the
level of development of individual Members, both overall and in individual sectors.  There shall be appropriateflexibility for individual developing country Members for opening fewer sectors, liberalizing fewer types oftransactions, progressively extending market access in line with their development situation and, when makingaccess to their markets available to foreign service suppliers, attaching to such access conditions aimed at
achieving the objectives referred to in Article IV.