RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.7
11September 1995
ORGANIZATION(95-2643)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM CANADA
Draft Offer onBasic Telecommunications
TheattachedcommunicationiscirculatedattherequestofCanadatomembersoftheNegotiating
Group onBasic Telecommunications.
_______________S/NGBT/W/12/Add.7
Page 2
Initial, Conditional Offer byCanada onMarket Access,
National Treatment andRegulatory Issues
1. With aview toachieving acomprehensive andmutually advantageous agreement onbasic
telecommunications within theWTO/GATS, Canada submits theattached offer, which isconditional
upon receiving comparable benefits from other major NGBT participants.
2. Theoffer onbasic telecommunications encompasses allpublic telecommunications transport
networks andservices. InCanada, anytelecommunication service offered byoneperson toanother
forcompensation constitutes a"public" service. This isabroad definition which mayinclude activities
thatother countries consider tobe"non-public" or"non-common carrier".
3. Inaddition, Canada hasincluded inanaddendum anoffer on"Telecommunications-Related
Services". These arenottelecommunications transport networks orservices. Nonetheless, they are
economically significant ancillary activities which generally have notbeen covered inGATS negotiations
todate andtherefore arenotsubject tospecific commitments. However, theconstruction of
telecommunications facilities isnotlisted here, since itisalready covered inCanada 'sschedule ofGATS
commitments included intheUruguay Round Final Acts.
4. Canada reserves theright towithdraw ormodify elements ofitsoffer atanytime prior tothe
conclusion ofthenegotiations onbasic telecommunications, depending onprogress onissues ofinterest
toCanada.
5. Canada reserves theright tomake technical changes totheoffer andtocorrect anyerrors,
omissions orinaccuracies, respecting items atfederal orsub-national levels.CANADA -DRAFT OFFERS/NGBT/W/12/Add.7
Page 3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional Commitments
2C* Telecommunications
Services
Local, interexchange and
international services, supplied
over apublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis,
including sub-sectors 2C(a) -(g)
&(o)ofGNS/W/120 andCPC
7529*)N.B.: Theheadnotes inCanada 'sschedule of
specific commitments under theGATS apply to
basic telecommunications.
1.None, other than:
Basic telecommunications service traffic shall be
routed onCanadian facilities.
Global andregional mobile satellite systems may
provide service inCanada, subject tothe
requirement thatCanadian voting equity
participation isproportional totheuseofsuch
systems inCanada; earth stations must belicensed
foruseinCanada.
2.NoneN.B.: Theheadnotes inCanada 's
schedule ofspecific commitments under
theGATS apply tobasic
telecommunications.
1.None
2.NoneResale
Service suppliers operating ona
resale basis arenotsubject to
telecommunications-specific
regulation orownership controls.
Independent Regulator
Sector-specific regulatory
oversight (including the
development andenforcement of
regulations) isexercised bya
federal-level authority thatis
independent ofany
telecommunications service
supplier (except inSaskatchewan,
where thesector-specific
regulatory oversight over the
provincially-owned supplier,
SaskTel, isexercised bythe
provincial government).Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Local, interexchange andS/NGBT/W/12/Add.7
Page 4
international service, supplied
over apublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis,
including sub-sectors 2C(a) -(g)
&(o)ofGNS/W/120 andCPC
7529*)
(continued)3.None, other than:
Radio licensing issubject tospectrum availability
andpublic interest criteria.
Direct foreign investment infacilities-based
telecommunication service suppliers islimited toa
maximum of20percent ofvoting shares;
companies investing insuch service suppliers will
betreated asCanadian ifatleast 662/3percent of
their voting shares areheld byCanadians. Such
entities must becontrolled infactbyCanadians.
Suppliers exceeding such limits asof22July 1987
andcontinuously operating since thatdate (such as
BCTel andQuébecTel) aresubject torestrictions
ontheir operating territory.
Inthecase ofTeleglobe Canada, no"non-resident
carrier" or"associate" may hold voting shares.
Alberta: Individual holdings ofvoting stock in
Telus arelimited toamaximum of5percent.
Total foreign ownership ofvoting stock islimited
to10percent.
Nova Scotia: Noperson may vote more than 1,000
shares ofMaritime Telegraph andTelephone Ltd.3.None, other than:
Atleast 80percent ofthemembers ofthe
board ofdirectors offacilities-based
suppliers must beCanadian.
Alberta: Atleast two-thirds ofthe
directors ofTelus must ordinarily be
resident inAlberta.Standards-Related Issues
Foreign-produced terminal and
other equipment interfacing with
thePSTN may betested to
Canadian standards atany
accredited testing facility in
Canada orinacountry with which
anagreement forthemutual
recognition ofprocedures forthe
acceptance oftestresults hasbeen
concluded.
Competition Safeguards/
Interconnection
Canada shall maintain measures
addressing anti-competitive
business conduct (e.g., abuse of
dominance, self-dealing, exclusive
dealing, andother practices that
lessen competition).
Such measures include:
interconnection requirements,
accounting safeguards and
structural separations forsuppliers
ofdomestic public telecom
transport networks andservices
who control essential/bottleneck
facilities.Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Local, interexchange andS/NGBT/W/12/Add.7
Page 5international service, supplied
over apublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis,
including sub-sectors 2C(a) -(g)
&(o)ofGNS/W/120 andCPC
7529*)
(continued)Saskatchewan: SaskTel istheprovincially-owned
monopoly supplier ofwire-based telephone service.
Resale forthepurpose ofproviding Voice ordata
services isnotpermitted. Interconnection between
SaskTel andcompeting service providers isnot
permitted.
Teleglobe Canada isthesoleauthorized Canadian
operator offacilities used toprovide Canada-
overseas telecommunications services.
Telesat Canada isthesoleauthorized Canadian
operator ofsatellite space segment facilities used to
provide national andCanada-U.S. fixed services.
Telesat Canada isthesoleauthorized Canadian
operator ofearth stations forinternational fixed
services between Canada andtheU.S.
Global andregional mobile satellite systems may
provide service inCanada, subject tothe
requirement thatCanadian voting equity
participation isproportional totheuseofsuch
systems inCanada; earth stations must belicensed
foruseinCanada.
4.Unbound, except ashasbeen indicated inthe
headnotes totheCanadian schedule.4.Unbound, except ashasbeen
indicated intheheadnotes tothe
Canadian schedule.(Essential facilities arefacilities
that: areavailable only ona
monopoly basis (defacto orde
jure); cannot beeconomically or
technically substituted; andare
required byacompetitor forthe
supply ofaservice. Such
facilities may include: support
structures, switches, signalling
systems, anddirectory data-bases.)
Asupplier ofpublic
telecommunications transport
services may obtain trunk-
side/equal-access interconnection
with suppliers oflocal facilities-
based telecommunication services
inatimely fashion andon
transparent, reasonable, non-
discriminatory (i.e., without
"unjust discrimination" or"undue
preference") tariffed terms and
conditions, andonacost-oriented
basis (including acontribution
charge tooffset local access
revenue deficits, applied to
suppliers oflong-distance voice
services forinterconnection with
local service providers).Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional Commitments
2C(a) (7521) Voice TelephoneS/NGBT/W/12/Add.7
Page 6
Services andCPC 7529*1.None, other than thehorizontal
telecommunications measures cited above.
2.None
3.None, other than thehorizontal
telecommunications measures cited above, and:
Competition intheprovision ofpay- telephone
services isnotpermitted onaresale basis orwith
respect tolocal services.
Competition intheprovision ofinterexchange
voice telephone service isnotpermitted inthe
serving areas ofNorthwestel Inc., Ontario
Northland Telephones, andTélébec Ltée.
Competition intheprovision oflocal wireline
telephone services isnotpermitted intheserving
areas of"independent" telephone companies which
arenotmembers oftheStentor group. (The Stentor
group includes theprincipal telephone company in
each province.)
Resale ofcellular mobile telephone service isnot
permitted.
4.Unbound, except ashasbeen indicated inthe
headnotes totheCanadian schedule.1.None
2.None
3.None, other than thehorizontal
telecommunications measures cited
above.
4.Unbound, except ashasbeen
indicated intheheadnotes totheCanadian
schedule.Theregulatory authority shall
define theessential/bottleneck
facilities ofsuppliers ofdomestic
public telecom transport networks
andservices which shall be
unbundled andmade available for
interconnection with other
suppliers, singly orin
combination, onatransparent,
reasonable, non-discriminatory and
tariffed basis.
Asupplier ofdomestic public
telecommunications transport
services may obtain transparent,
reasonable, non-discriminatory
tariffed access, inatimely
manner, tothemonopoly supplier
ofoverseas telecommunications
facilities (Teleglobe Canada) for
theprovision of
telecommunications services.
Rights ofWay
Facilities-based suppliers ofpublic
telecommunications transport
networks shall have transparent,
reasonable andnon-discriminatory
access torights ofway.ADDENDUM ONTELECOMMUNICATIONS-RELATED SERVICESS/NGBT/W/12/Add.7
Page 7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-Sector (including
GNS/W/120
andCPC Coding)Limitations onMarket Access Limitations onNational Treatment Additional Commitments
CPC 754Telecommunications-
related services
7541 Equipment rental
services
7542 Equipment sales
services
7543 Connection services
7544 Consulting services
7545 Equipment maintenance
services
7549 *Other
telecommunications services
n.e.c., ofwhich:
Billing andcollection
services forcustomer-
sponsored services
Directory services
Operator servicesN.B.: Theheadnotes inCanada 'sschedule of
specific commitments under theGATS apply to
telecommunications-related services.
1.None.
2.None
3.None.
4.Unbound, except ashasbeen indicated in
headnotes totheCanadian schedule.N.B.: Theheadnotes inCanada 's
schedule ofspecific commitments under
theGATS apply totelecommunications-
related services.
1.None
2.None
3.None.
4.Unbound, except ashasbeen
indicated intheheadnotes totheCanadian
schedule.