RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.20/Rev.1
26April 1996
ORGANIZATION(96-1644)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM ISRAEL
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofIsrael tomembers oftheNegotiating
Group onBasic Telecommunications.
_______________
Inaccordance withthedecision taken intheNegotiating Group onBasic Telecommunications,
Israel hereby submits arevised draft offer onbasic telecommunications services. Asthisoffer is
conditional, Israel reserves therighttomodify, reduce orwithdraw thisoffer, inwhole orinpart,
atanytimeprior totheconclusion ofthenegotiations onbasic telecommunications. Israel further
reserves therighttomake technical changes, amendments andcorrections totheoffer.S/NGBT/W/12/Add.20/Rev.1
Page2ISRAEL -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
servicesSeeannexed, aswellasthe
following:
Independence ofregulator
Regulatory functions arethe
exclusive purview ofthe
Ministry ofCommunications.
a. Voice telephone services
(CPC 7521)
(i)Public voice
telephone
-wire-based
-facilities based
-local/long distance/
international (1)(2)(1) Only through network ofBezeq, the
Israel Telecommunications Corp. Ltd.,
except forcall-back services which are
permitted ifoperator utilizes thepublic
switched circuits.
(2) None
(3) Reserved toBezeq, themonopoly
supplier: foreign equity participation in
Bezeq ispermitted.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.Interconnection
TheTelecommunications Law
(5742-1982)
authorizes theMinister of
Communications, inter alia,
toorder oneoperator toallow
interconnection ofitsnetwork
tothefacilities ofanother
operator; bothoperators areto
negotiate theproper system of
reimbursement. Should they
notreach anagreement, the
Minister maydecide onthe
proper price forthe
interconnection, based on
1Atender hasbeen issued recently fortheoperation ofinternational services bytwooperators inaddition tothose offered bythepresent operator.
2International simple resale isnotpermitted.S/NGBT/W/12/Add.20/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
(ii)Public voice
telephone:
-local/long-distance
-radio-based(1) Only through Bezeq 'snetwork
(2) None
(3) Number oflicenses subject tofrequency
availability andeconomic needs test.
Local partner required; nomore than
80% ofshares maybeowed bya
foreign entity.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) Unbound except asindicated in
horizontal section.incremental costs which
include operating, expenses,
andproper return ofequity.
Intheevent thatatender will
beissued forlimited
competition inthisfield (i.e.
international services), the
Minister willdetermine
maximum tariffs.
(iii)Non-public voice
telephone: Closed
usergroups and
private networks
-Local/long-distance/
international(1) Only through Bezeq 'snetwork
(2) None
(3) Resale ofexcess capacity isnot
permitted. Must bepoint-to-point
without anytransmission toathird
party.
(4) Unbound except asindicated in
horizontal section.(1) None
(2) None
(3) None
(4) NoneForeign investment
a)Nolimitations onforeign
ownership forvalue-added
service providers
b)74% foreign ownership
permitted ininternational
service providers.
c)80% foreign ownership
permitted inwireless
service providers.
b.Packet-switched data
transmission
(CPC 7523)
and
c.Circuit-switched data
transmission services
(CPC 7523)(1)Only through network ofBezeq orother
local licensee.
(2)None
(3)Only through Bezeq 'spublic network or
other local licensee (I.B.S.) andon
circuits leased from Bezeq.
(4)Unbound except asindicated inhorizontal
section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
section.S/NGBT/W/12/Add.20/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
f.Facsimile services
(CPC 7521 +7529)(1)Only through Bezeq 'snetwork andthatof
I.B.S. licensees.
(2)None
(3)Only through Bezeq 'snetwork andthatof
I.B.S. licensees.
(4)Unbound except asindicated inhorizontal
section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
section.
g.Private-leased circuit
services
(CPC 7522 +7523)
- Non-voice
- Local/long distance/
international
- forpublic ornon-
public use(1)Only through Bezeq 'snetwork.
(2)None
(3)Only through circuits leased from Bezeq.
Resale ofinternational private-leased
circuit capacity isnotpermitted.
(4)Unbound except asindicated inhorizontal
section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
section.
o.Other
(i) Paging services (1)None
(2)None
(3)Number ofoperators islimited onlyby
availability offrequencies.
(4)Unbound except asindicated inhorizontal
section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
section.S/NGBT/W/12/Add.20/Rev.1
Page5Modes 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
(ii) Satellite services:
voice anddata
- international(1)Bylocal licence, however D.B.S.
broadcasting ispermitted tocable
franchisees, which presently holda
monopoly.
(2)None
(3)Limitation onthenumber ofoperators
(under review atpresent).
(4)Unbound except asindicated inhorizontal
section.(1)None
(2)None
(3)None
(4)Unbound except asindicated inhorizontal
section.S/NGBT/W/12/Add.20/Rev.1
Page6
ANNEX
ADDITIONAL COMMITMENTS DRAFT SCHEDULE
ONBASIC TELECOMMUNICATIONS SERVICES
Scope
Thefollowing aredefinitions andprinciples ontheregulatory framework forthebasic
telecommunications services.
Definitions
Users ofessential facilities mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications 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 as
aresult of:
(a) control overessential facilities, or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1.Prevention ofanti-competitive practices.
Appropriate measures shallbemaintained forthepurpose ofpreventing major suppliers from
engaging in,orcontinuing 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
(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 withsignificant market power inorder toallow
theusers ofonesupplier tocommunicate withusers ofanother supplier andtoaccess services provided
byanother supplier.S/NGBT/W/12/Add.20/Rev.1
Page7
2.2.Interconnection tobeensured
Interconnection withasupplier withsignificant market power within thelimits ofpermitted
market access willbeensured atanytechnically feasible point inthenetwork. Such interconnection
isprovided
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated services suppliers orforits
subsidiaries orother affiliates
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented rates, thataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided
(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.
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andnotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired theterms andconditions ofindividual licences, excluding matters
ofcommercial confidentality, willbemade publicly available.
Thereasons forthedenial ofalicence bemade known totheapplicant upon request.
5. Independent regulators
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecision ofandtheprocedures usedbyregulators shallbeimpartial
withrespect toallmarket participants.S/NGBT/W/12/Add.20/Rev.1
Page8
6. Allocation anduseofscarce resources
Anyprocedures fortheallocation anduseofscarce resources, including frequencies, numbers
andrights ofway, willbecarried outinanobjective manner.