RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.6/Rev.2
30April 1996
ORGANIZATION
(96-1789)
Negotiating Group onBasic Telecommunications Original: English
COMMUNICATION FROM AUSTRALIA
Draft Offer onBasic Telecommunications
Revision
TheattachedcommunicationiscirculatedattherequestofAustraliatomembersoftheNegotiating
Group onBasic Telecommunications.
_______________
Australia hereby submits arevision ofitsoffer submitted on1April 1996
(S/NGBT/W/12/Add.6/Rev.1).
Australia reserves theright tomodify orwithdraw partly orintheir entirety thecommitments
made conditionally inthisoffer.
This offer iscontingent upon theagreement byacritical mass ofparticipants toprovide market
access andnational treatment forbasic telecommunications services commensurate with thatoffered
byAustralia.
Australia iscommitted tofurther liberalisation ofitsbasic telecommunications sector andwill
beintroducing legislation forParliamentary consideration togiveeffect tothisliberalisation. Therefore,
some elements ofthisoffer areconditional upon Parliamentary approval forliberalisation changes being
achieved. Commitments soconditioned are:unlimited licence numbers from 1July1997 andnosector
specific foreign equity limits onnew carriers from 1July 1997.
Australia isprepared toinclude commitments onregulatory principles provided similar
commitments aremade byother participants. Australia notes thedeletion oftheprinciple onaccounting
rates from theregulatory principles. This isanissue which Australia hadpursued initsexamination
oftheaccounting rates/termination services issue. Australia looks tofuture negotiations toprovide
liberalisation inthisareasoastodecrease distortions inworld trade inbasic telecommunications services.
Allcommitments made inthisoffer aresubject tohorizontal commitments contained inAustralia
GATS schedule.S/NGBT/W/12/Add.6/Rev.2
Page2AUSTRALIA -REVISED DRAFT 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&2)None, except forreserve powers to
prevent themisuse ofmarket power
byanoperator (service consumer or
supplier) inaterritory outside
Australia totheharm ofconsumers or
competition inAustralia.
(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.(1) None
(2) None
(3) NoneTheattached reference
paper onregulatory
principles isincorporated
asadditional
commitments by
Australia.
(f) Facsimile services
(7521** +7529**)
(g) Private leased circuit
services (7522**+7523)Thefirstlicensed general carrier, Telstra,
isgovernment owned. There isa
requirement formajority Australian
ownership ofOptus (holder ofgeneral
carrier andmobile licence) andVodafone
(holder ofamobile carrier licence).
Measures shall bemaintained toensure that
these arrangements continue toapply after
30June 1997. Where appropriate, the
Broadcasting Services Act1992 applies to
service providers.S/NGBT/W/12/Add.6/Rev.2
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
(o) Other
Digital Cellular services
(75213*)
Paging services (75291)
Personal
Communications Services
(75213*)
Trunked Radio System
services (7523**,
75213*)
Mobile Data Services
(7523**)Thenumber ofservice suppliers maybe
limited subject totheavailability ofradio
frequency spectrum.
TheGovernment willshortly introduce
legislation aimed atimplementing an
unlimited number ofbasic
telecommunications carrier licences from
1July1997 andnosector specific foreign
equity limits fornewcarriers. Australia
binds itself totheoutcome ofthis
parliamentary process interms ofnumbers
oflicensed carriers andforeign equity
applying tonewcarrier licences. Anentity
holding anewcarrier licence must bea
public body oraconstitutional corporation
under Australian law.
(4) Unbound except asindicated inhorizontal
section.(4) Unbound except asindicated inthe
horizontal section.S/NGBT/W/12/Add.6/Rev.2
Page4
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/NGBT/W/12/Add.6/Rev.2
Page5
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.
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.
1 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. Thisdoesnotnecessarily result inrates thatare
inallcases accounted thesame asforthecarrier 'sownlikeservices.
2 Theindependent arbitrator mayresolve anydispute onwhat costs arerelevant indetermining rates (see
footnote2).
3 Theindependent arbitrator mayresolve anydispute onwhat costs arerelevant indetermining rates (see
footnote2).S/NGBT/W/12/Add.6/Rev.2
Page6
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.