RESTRICTED
WORLD TRADE S/C/W/33
18December 1997
ORGANIZATION(97-5596)
Original: English Council forTrade inServices
COMMUNICATION FROM PAKISTAN
CERTIFICATION
Revised Schedule ofSpecific Commitments onBasic Telecommunications
Thefollowing communication hasbeenreceived fromthedelegation ofPakistan withtherequest
thatitbecirculated toMembers oftheWTO.
_______________
Wehavebeeninstructed byourauthorities tosubmit herewith arevised Schedule onBasic
Telecommunications. Therevised Schedule constitutes asignificant improvement overtheexisting
Pakistan 'soffer ascontained indocument number GATS/SC/67/Suppl.2 dated 11April 1997.
Itisrequested toplease takethenecessary legal steps andoncethese legal formalities are
completedtherevisedoffermaybedeemedtohavereplacedthescheduledcontainedindocumentnumber
GATS/SC/67/Suppl.2.
_______________
TheListofMFN Exemption annexed totheFourth Protocol remains unaltered (andwillenter
intoforce together withthisrevised Schedule).
Ifnoobjection isnotified totheSecretariat within thirty days from thedateofthis
communication, theattached Schedule ofCommitments onBasic Telecommunications shallreplace
Pakistan 'sSchedule ofCommitments onBasic Telecommunications annexed totheFourth Protocol
totheGATS.WORLD TRADE
ORGANIZATION(97-0000)
Council forTrade inServices
PAKISTAN
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
_______________
Thistextsupplements theentries relating totheTelecommunication services section contained
onpages 7to8ofdocument GATS/SC/67.S/C/W/33
Page4PAKISTAN -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
General conditions ofthisschedule: Thisoffer issubject tofollowing general conditions:
- Policy, regulatory andoperation functions areseparate andcompliance isnecessary.
- Allservices tobeprovided inPakistan shall require alicence from theRegulatory authority established under thelaw.
- Operators andService providers maybegranted licence inaccordance withthelocal legislation.
- Thenumber ofoperators, service providers andlicensees maybelimited duetotechnical constraints.
- Theconfidentiality ofInternational Total Accounting Rate (TAR) shall bemaintained.
- Thebilateral agreements onaccounting rates shall beinaccordance withITUguidelines.
- Upto100% foreign investment onlicensed services maybepermitted
- Thisschedule onbasic telecommunications does notinclude anybroadcasting services1.
2.C. Telecommunications Service
Local, domestic long
distance andinternational
services, forpublic:Until 2003, nobypass2ofPTCL
network andPTCL shall have
exclusivity.
None asof1.1.2004.About 12percentstake of
thePakistan
Telecommunication
Corporation (PTC), thesole
operator forallbasic
Telecommunication services
wassoldtothenational and
international buyers in1994-
95through twodifferent
offers ofPTC vouchers in
national andinternational
financial markets.
1Broadcasting service isdefined asaradiocommunication service inwhich thetransmissions areintended fordirect reception bythegeneral public. Thisservice mayinclude sound transmission, television transmissions
orother types oftransmissions. InPakistan Telecom Law, likemany other countries, broadcasting isnotpartofbasic telecommunication services.
2TheGMPCS/Satellite operators shallbereputed topasstraffic viaPakistan PSTN through transit andGateway exchanges, specially incaseofoverseas communication from Pakistan. Anyoperation contrary
tothisshallbetermed as"bypass."S/C/W/33
Page5Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(a) Voice telephone services (1) Alltelecommunication services
shall beprovided bylicensed
operators subject totheexclusivity
period of7years forbasic
telephony services under thelawin
favour ofPTCL. Thisexclusivity
shall expire bytheyear2003.
None asof1.1.2004.(1) Unbound Theoffers were many times
over subscribed. The
Corporation hasbeen, inter
alia, converted intoalimited
company namely Pakistan
Telecommunication Company
Ltd(PTCL) witheffect from
1January, 1996 through the
promulgation ofalaw.
Bounds withUS$150million
have been floated withan
option toconvert them into
PTCL shares.
(a) Voice telephone services
(cont'd)(2) Alternative practices such ascall
back arenotallowed. Country
direct cardservice canonlybe
permitted bymutual agreement with
thelicensed operator.
(3) Unbound
(4) Unbound except asindicated in
horizontal section.(2) Unbound
(3) Unbound
(4) Unbound except asindicated in
horizontal section.S/C/W/33
Page6Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(b) Packet-switched data,
E-mail, Internet andIntranet
services
(c) Circuit-switched data
transmission services(1) Until 2003, except fordomestic
VSAT, onlythrough network
facilities ofPTCL. Theregulatory
authority togrant licences and
authorizations toprivate companies
foroperation ofdata, E-mail,
Internet andIntranet services in
addition tothelicences already
granted.
(2) None
(3) Subject totechnical constraints, the
regulatory authority togrant
licences andauthorizations to
private companies foroperation of
domestic VSAT, data, E-mail,
Internet &Intranet services in
addition tothelicences already
granted.
(4) Unbound except asindicated in
horizontal section.(1) Unbound
(2) None
(3) None except fortechnical
constraints
(4) Unbound except asindicated in
horizontal section.Privatization ofPTCL ison
theanvil. Themanagement of
theCompany shall be
transferred totheselected
strategic operator. Exclusive
licence foroperation ofbasic
telephony services fora
period of7years granted to
thePTCL.
ThePakistan
Telecommunications (Re-
organisation) Lawhasbeen
passed asanActof
Parliament inOctober 1996.
Anindependent Regulatory
Authority andaFrequency
Allocation Board have been
established. Chairman
members andother essential
staffofthese bodies is
already inplace. The
Authority andBoard are
already functional. To
support effective regulation
andspectrum management
GOP isundertaking ofPTA
&FAB.S/C/W/33
Page7Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(d) VSAT fordomestic data
services(1) Theregulatory authority togrant
licences andauthorizations to
private companies foroperation of
VSAT fordomestic data, E-mail,
Internet andIntranet services in
addition tothelicences already
granted
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionThePakistan
Telecommunication Authority
established under thelawas
anindependent body is
responsible to:
- Regulate
telecommunication
services.
- Grant andrenew
licences.
- Promote andprotect
theinterests of
consumers
- Promote efficient,
costeffective and
competitive services.
- Carry out
inspections.
- Regulate tariffs.
(e) Telex services (1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.S/C/W/33
Page8Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(f) Telegraph services (1) Theregulatory authority shall grant
licences andauthorizations to
private companies foroperation of
Telegraph services using PTCL
infrastructure until 2003.
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.-Prescribe standards
-Determine terms of
interconnection
agreements.
-Investigate andadjudicate
oncomplaints.
-Enforcement onvaluation
-International traffic and
accounting settlements.
-Issue regulations.
-Receive applications for
frequency allocation.
(g) Facsimile services (1) None
(2) None
(3) Unbound
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.S/C/W/33
Page9Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(h) Private leased circuit
services(1) Pakistan Telecommunication
Company Limited except for
domestic VSAT, istheexclusive
service provider forseven years.
Thisexclusivity shall expire bythe
year2003.
None asof1.1.2004.
(2) None
(3) Pakistan Telecommunication
Company Limited except for
domestic VSAT, istheexclusive
service provider forseven years.
Thisexclusivity shall expire bythe
year2003.
(4) Unbound except asindicated in
horizontal section.(1) Unbound
(2) None
(3) Unbound
(4) Unbound except asindicated in
horizontal section.Thefrequency allocation
Board established under the
lawisresponsible toallocate
andassign frequency
spectrum for
telecommunication,
broadcasting public and
private wireless services and
classify radio
telecommunication services.
Appeals against thedecisions
oftheAuthority maybefiled
intheHigh Court.
Following services have been
licensed totheprivate
operators andfurther
licensing could bepossible:S/C/W/33
Page10Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(i) Video conferencing tele-
medicine andtele-education
terminal endservices(1) Theregulatory authority shall grant
licences andauthorizations to
private companies foroperation of
video-conferencing, tele-education
andtelemedicine services, using
PTCL network until seven years.
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section-Cellular Mobile telephone
services.
-Card payphones services
-Paging
-Data network operation
-Voice Mail Service
-Audio TexService
-Trunk Radio service
-Electronic Mail and
internet services
-Useofdomestic satellites
forprovision oftelecom
services
-Manufacture oftelex, fax,
allPABXs/Digital
exchanges andmodems
-manufacture of
Fibre/Optic/copper cables
-manufacture oftelephone
sets, terminal equipment
answering machine etc.
-manufacture ofjointing
material forcopper/optic
cablesS/C/W/33
Page11Modes ofdelivery: (1)Cross-border supply (2)Consumption abroad (3)Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(j) Trunked radio service (1) Theregulatory authority togrant
licences andauthorizations to
private companies foroperation of
Trunked Radio service inaddition
tothelicences already granted
using PTCL network until 2003.
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal sectionRegulatory Authority shall
grant licences oncompetitive
basis aspertelecom lawand
regulations.
Regulatory Authority may
grant licences forsatellite
based services onfollowing
conditions:
(a)Frequency clearance by
Board
(b)Security andsovereignty
regulations
(c)Availability ofITUT/R
standards
(k)Satellite based telephony
services, including value added
services operating oversatellite(1)Maintaining PTCL exclusivity for
seven years onbasic andinternational
telephony services andsafeguarding
PSTN bypass licences shall begranted
(2)None
(3)None
(4)Unbound except asindicated in
horizontal section(1)None
(2)None
(3)None except fortechnical,
sovereignty, security constraints and
safeguarding PSTN bypass
(4)Unbound except asindicated in
horizontal section(d)resolution ofcross-
border communication
issues; and
(e)resolution ofCustoms
proceduresS/C/W/33
Page12
ATTACHMENT TOPAKISTAN 'SSCHEDULE
(Reference Paper)
1. Transparency ofRegulations
1.1 Laws andregulations pertaining toprovisions ofbasic telecom services shallbepublished.
1.2 Advanced public notice andafairopportunity willbeprovided forinterested parties tocomment
onproposed measures affecting theprovision ofbasic telecom services.
1.3 TheRegulatory Authority consists ofthree members, oneisaprofessional telecom engineer
andother twoaretechnical andfinancial experts, appointed bytheGovernment foraterm
offouryears andeligible forappointment forasimilar term.
1.4 Anymember oftheAuthority shallnothaveanydirect orindirect financial interest in,orhave
business connection withanyperson, anyestablishment orfirmwhich renders telecom services
inPakistan orabroad. Forabove purpose evenanyinvolvement ofthespouse orblood relation
ofanymember oftheAuthority withanytelecom firmshallbeconsidered asadirect financial
interest orconnection withsuchfirm.
1.5 TheAuthority shallensure that:
(a) rights oflicensees aredulyprotected;
(b) decisionsanddeterminationsaremadepromptlyinopen,equitable,non-discriminatory,
consistent andtransparent manner;
(c) thepersons affected byitsdecisions ordeterminations aregiven aduenotice and
provided opportunity ofbeing heard.
1.6 Aperson aggrieved byanydecision ororder oftheAuthority canwithin thirty daysofthe
receipt oforder, appeal totheHighCourt andtheCourt shalldecide suchappeal within ninety
days.
1.7 Aperson aggrieved byanydecision ororder ofanyofficer oftheAuthority may, within thirty
daysoftheorder, appeal totheAuthority andtheAuthority shalldecide suchappeals within
thirty days.
2. Interconnection andNumbering
2.1 Intheevent thataservice supplier isunable toreach agreement withanyordominant service
supplier orinterconnection, following areasonable amount oftime, either party mayreferthe
dispute totheRegulator inPakistan.
2.2 Service suppliers shall berequired todisclose information concerning technical
measures/parameters thatwillaffect useofsuchfacilities forother service suppliers.
2.3 TheRegulatory Authority shallexercise allpowers toenable ittoeffectively provide guidelines
for,anddetermine, theterms ofinterconnection arrangements between licensees where the
parties areunable toagree.S/C/W/33
Page13
2.4 Authorityshalldevelop/assignnon-discriminatorynationaltelecommunicationnumberingplans.
3. Competition Safeguards andstandards
3.1 When facilities-based service supplier withdominant market position isfound engaged inunfair
oranti-competitive practices, remedial measures willbeavailable.
3.2 When dominant service supplier provides acompetitive service heshall establish separate
accounting procedure forthecompetitive service. Cross subsidy isnotpermitted.
3.3 TheAuthority shallnotify andpublish regulations forestablishing national standards fortelecom
equipment andservices. TheAuthority canspecify different standards fordifferent classes
oftelecom equipment/services andestablish procedure fortesting.
3.4 TheAuthority shall notrestrict thetypeoftelecom equipment thatmaybeusedforthe
establishment, maintenance oroperation oftelecom systems orservices.
4. Tariff Regime
Theleveloftariffs fortelecom services including basic telephone service shallberegulated
bytheAuthority inaccordance withtheregulations including following principles:
4.1 Theregulations shallapply equally tocomparable provider/users ofanyregulated telecom
service;
4.2 Thecriteria usedfortheestablishment oftariffshallregularly bepublished threemonths before
thecriteria isadopted;
4.3 Tariffs shallbeatalevel which provides areasonable rateofreturn oninvestments taking
intoaccount thecostofoperation; and
4.4 There shallbenocross-subsidization ofother telecom services bybasic telephone service.