RESTRICTED
WORLD TRADE S/GBT/W/1/Add.10/Rev.1
12February 1997
ORGANIZATION
(97-0545)
Group onBasic Telecommunications Original: English
COMMUNICATION FROM AUSTRALIA
Conditional Offer onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest ofAustralia tomembers oftheGroup
onBasic Telecommunications.
_______________
Australia hereby submits arevision ofitsoffer issued on29January 1997 (S/GBT/W/1/Add.10).
Australia reserves theright tomodify orwithdraw partly orintheir entirety thecommitments
made conditionally inthisoffer.
This offer isconditional upon agreement byacritical mass ofparticipants toprovide market
access andnational treatment forbasic telecommunications services.
Australia iscommitted tofurther liberalisation ofitsbasic telecommunications sector andhas
introduced legislation forParliamentary consideration ofliberalisation from 1July1997. Some elements
ofthisoffer therefore areconditional upon Parliamentary approval ofthislegislation. Commitments
soconditioned are: unlimited licence numbers from 1July1997 andnosector specific foreign equity
limits onnew carriers from 1July 1997.
Theoffer hasbeen prepared taking intoaccount theChairman ’sNote of16January 1997
(S/GBT/W/2/Rev.1) concerning scheduling ofbasic telecommunications services commitments andthe
Chairman ’sNote of3February 1997 (S/GBT/W/3) concerning market access limitations onspectrum
availability.
Allcommitments made inthisoffer aresubject tohorizontal commitments oninvestment as
contained inAustralia ’sGATS schedule.S/GBT/W/1/Add.10/Rev.1
Page2AUSTRALIA -CONDITIONAL REVISED 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. COMMUNICATION
SERVICES
C. Telecommunications
services
Covers thefollowing sub-
sectors from theServices
Sectoral Classification List
(a) Voice telephone services
(7521)
(b) Packet-switched data
transmission services
(7523**)
(c) Circuit-switched data
transmission services
(7523**)
(d) Telex services (7523**)
(e) Telegraph services
(7522)(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.S/GBT/W/1/Add.10/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
Thefirstlicensed general carrier, Telstra,
isgovernment owned. Legislation
permitting thesaleofonethird ofthe
government 'sequity inTelstra comes into
effect on1May 1997. Foreign equity will
belimited to35% ofthisonethird (about
11.7% oftotal equity) withalimit of5%
oftheonethird (about 1.7% oftotal
equity) available toindividual orassociated
group foreign investors.
There arenolimits ontotalforeign equity
inOptus (holder ofgeneral carrier and
mobile licence). However, foreign
investment policy requirements forOptus
aresuch thatthere arecertain limits onthe
share ofequity which anyforeign
shareholder mayhold. Also, theChairman
anddirectors ofOptus must beAustralian
citizens, other thanthose directors (who
must comprise theminority) appointed by
thetwocurrent major foreign investors.
There isarequirement formajority
Australian ownership ofVodafone (holder
ofamobile carrier licence). Measures shall
bemaintained toensure thatthese
arrangements continue toapply after 30
June 1997.
(f) Facsimile services
(7521** +7529**)
(g) Private leased circuit
services (7522**+7523)Where appropriate, theBroadcasting
Services Act1992 applies toservice
providers.S/GBT/W/1/Add.10/Rev.1
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
(o) Other
Digital Cellular services
(75213*)
Paging services (75291)
Personal
Communications Services
(75213*)
Trunked Radio System
services (7523**,
75213*)
Mobile Data Services
(7523**)(4) Unbound except asindicated inhorizontal
section.(4) Unbound except asindicated inthe
horizontal section.S/GBT/W/1/Add.10/Rev.1
Page5
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.S/GBT/W/1/Add.10/Rev.1
Page6
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.
1 Theinterconnection regime toapply inAustralia from 1July1997 (subject toParliamentary passage of
thenecessary legislation) willprovide access onterms andconditions which arefairandreasonable toallparties
andwhich donotunfairly discriminate between users. Access rights willbeguaranteed bylegislation andthe
terms andconditions ofaccess willbeestablished primarily through processes ofcommercial negotiation orby
reference toaccess undertakings given byaccess providers which maydraw upon anindustry codeofpractice.
Anycode ofpractice andeach access provider 'sundertaking willbesubject toapproval bytheindependent
regulator.
2 Non-discrimination istaken tomean onanMFN andNational Treatment basis. Inthefully competitive
market inAustralia, therateatwhich interconnection isprovided isdetermined bynegotiation. Bothnegotiating
parties have recourse toanindependent arbitrator which willmake adecision based ontransparent criteria to
ensure thatrates arefairandreasonable inthecircumstances.
3 Theindependent arbitrator mayresolve anydispute onwhat costs arerelevant indetermining rates (see
footnote2).S/GBT/W/1/Add.10/Rev.1
Page7
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.