RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.3
31July 1995
ORGANIZATION(95-2367 )
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THE UNITED STATES
Draft Offer onBasic Telecommunications
Theattached communication iscirculated attherequest oftheUnited States tomembers of
theNegotiating Group onBasic Telecommunications.
_______________UNITED STATES -DRAFT OFFERS/NGBT/W/12/Add.3
Page 2
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Commitments inthese subsectors areundertaken inaccordance with thepro-competitive regulatory disciplines described inthecolumn headed "additional
commitments".
2. COMMUNICATION
SERVICES
C. Telecommunication
services1
Basic local2,inter-
exchange and
international services;
supplied over public
telecommunications
transport networks using
anynetwork technology
(e.g., wire-based, radio-
based, cable television);
facilities-based andona
resale basis; ineach of
thefollowing market
segments:1) None
2) None
3) - Subject tospectrum availability.
- Comsat hasexclusive rights tolinks
with Intelsat andInmarsat.
- Aradio licence may notbegranted to
orheld byaforeign government ora
representative thereof.
- Theright toobtain alicence toland a
submarine cable may berestricted.1) None
2) None
3) NonePro-competitive
regulatory disciplines
(attached).
a. Voice telephone services 4) Unbound except asindicated byhorizontal
commitments.4) Unbound except asindicated byhorizontal
commitments.
1This offer iscontingent upon theagreement byacritical mass ofWTO members toprovide market access andnational treatment forbasic telecommunications services,
aswell astoprovide commitments similar tothose offered bytheUnited States onpro-competitive regulatory disciplines. TheUnited States reserves theright towithdraw
oramend thisoffer atanytime.
2Current limits onmarket access forintra-state services areunder federal legislative review. Pending enactment offederal legislation toliberalize thismarket segment,
theUSoffers tobind thestatus quoformarket access andnational treatment forintra-state services. Adescription ofmarket access andnational treatment conditions for
intra-state services willbemade available after completion ofconsultations with state governments.Modes ofsupply: 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 dataS/NGBT/W/12/Add.3
Page 3transmission services,
including frame-relay
services
c. Circuit-switched data
transmission services
d. Telex services
e. Telegraph services
f. Facsimile services
g. Private leased circuit
services
o. Other
Domestic/international
satellite services and
satellite links/capacity.
Satellite earth stations
International switching
andother international
gateway facilities
Mobile services
- Analogue/digital
cellular services
- PCS (personal
communication
services)
- Paging services
- Mobile data services
Video transport servicesS/NGBT/W/12/Add.3
Page 4
ATTACHMENT TOTHE UNITED STATES DRAFT OFFER IN
BASIC TELECOMMUNICATIONS SERVICES
Pro-Competitive Regulatory Commitments1
Definitions
Terms defined intheGATS have thesame meaning inthisschedule. Inaddition:
1. Alocal exchange carrier isapublic telecommunications transport network operator thatprovides
local basic telecommunications services toend-users andinterconnection ofinter-state and
international telecommunications tothelocal public telecommunications transport network.
2. Interconnection istheprovision ofservices fortheorigination ortermination ofinter-state or
international telecommunications services.
3. Adominantoperatorisapublictelecommunicationstransportnetworkoperatorwithmarketpower.
Adominant local exchange carrier isalocal exchange carrier with market power.
4. Market power istheability tocharge prices above acompetitive level. Inbasic telecommunications
services, market power isparticularly relevant with respect tocontrol over bottleneck facilities
forinterconnection topublic telecommunications transport networks.
5. Collocation isthephysical presence, oritsfunctional equivalent, ofacompeting service supplier 's
equipment atthefacility ofanother service supplier toenable thecompeting service supplier to
provide ascheduled service.
6. Dialing parity istheability ofallcompeting service suppliers tooffer andusetelephone numbering
systems sothatacustomer dials anequal number ofdigits tousetheservice ofanycompeting
service supplier.
7. Anaccounting rateisdefined astheratepertraffic unitagreed upon between administrations
foragiven relation, which isused fortheestablishment ofinternational accounts, asper
International Telecommunications Union recommendation D.150, "New System forAccounting
inInternational Telephony".
8. Number portability istheability ofacustomer toretain itsexisting phone number nomatter which
competing service supplier thecustomer uses.
Fair andEconomical Interconnection
The United States undertakes thefollowing commitments regarding fair and economical
interconnection ofinter-state andinternational telecommunications services:
1TheUnitedStatesofferstotakeonthesecommitmentsbyamethodagreedbyparticipantsintheNegotiating
GrouponBasicTelecommu nications(suchaspursuanttoArticleXVIIIoftheGATSorbyanalternativemethod).
These commitments currently pertain only tointer-state andinternational basic telecommunications services.
Pending enactment offederal legislation toliberalize intra-state basic telecommunications services, theUnited
States offers tobindthestatus quoforpro-competitive commitments regarding intra-state services. Adescription
ofthese commitments forintra-state services willbemade available after completion ofconsultations with the
state governments.S/NGBT/W/12/Add.3
Page 5
1. Adominant local exchange carrier willprovide interconnection toitspublic telecommunications
transport network fortheprovision ofinter-state andinternational telecommunications services:
(a)atratesthatarepubliclytariffed,non-discriminatoryandcost-basedandontermsandconditions
thatarepublicly tariffed, non-discriminatory andreasonable;
(b)atanynetwork interconnection point, subject tocost-sharing fornecessary construction of
additional facilities; and
(c)inamanner thatpermits service suppliers tobuyonly thefacilities orservices they actually
need toprovide abasic telecommunications service.
2. Theregulator willmake publicly available anycostinformation presented toitbyadominant
local exchange carrier insupport ofitsinterconnection rates.
3. Adominant local exchange carrier with annual revenues inexcess ofaminimum level defined
bytheregulatory authority willprovide collocation.
4. Adominantoperatorofinternationalbasictelecommunicationsserviceswillnotimposeunreasonable
entry barriers onother international basic telecommunications service suppliers.
5. Adominant local exchange carrier willprovide equal access, including dialing parity, toitspublic
telecommunications transport networks fortheprovision ofinter-state andinternational basic
telecommunications services.
6. International accounting rates maintained with foreign correspondents willbepublicly available.
Adominant operator willberequired tojustify anyinternational accounting ratethatdiffers
significantly from domestic interconnection rates.
7. Adominant local exchange carrier willprovide interconnection toitspublic telecommunications
transport network tosuppliers ofcellular mobile radio services onreasonable, non-discriminatory
terms andconditions.
8. Anyuniversalservicesupportobligationwillbeadministeredinatransparent,competitivelyneutral
manner.
Competition Safeguards
TheUnited States undertakes thefollowing commitments toprevent adominant operator from
abusing itsmarket power byengaging inanti-competitive activity intheprovision ofinter-state and
international telecommunications services:
1. Adominant operator willnotbepermitted tocross-subsidize itsnon-regulated services byshifting
thecosts ofsuch services toservices inwhich thedominant operator retains market power.
2. Adominant local exchange carrier with annual revenues inexcess ofaminimum level defined
bytheregulatory authority willadopt structural separation orcostaccounting safeguards toprevent
theallocation ofcosts ofnon-regulated services toregulated services.
3. Adominant local exchange carrier will make publicly available toallsuppliers ofbasic
telecommunications services, onanon-discriminatory basis andconsistent with customer privacy
requirements, network information thatis:S/NGBT/W/12/Add.3
Page 6
(a)necessary tofacilitate interconnection toitsnetwork; or
(b)whichotherwiseisnecessarytofacilitatethesupplyofcompetitivetelecommunicationsservices.
Information affecting changes tothepublic telecommunications network willbemade publicly
available prior toimplementation andwith reasonable advance notice.
4. There willbenumber portability forinter-state andinternational services.
5. Allinterestedmembersofthepublic,includingnon-dominantsuppliersofbasictelecommunications
services, willhave afairandreasonable opportunity toparticipate inthedevelopment oftechnical
standards governing public telecommunications transport networks andservices.
Transparent Regulation
1. TheUnited States willprovide public notice of,andfairopportunity forcomment on:
(a)allproposed regulations, licensing criteria, andother requirements governing theprovision
ofinter-state andinternational telecommunications services andinfrastructure; and
(b)allapplications forlicences andother authorizations toprovide inter-state andinternational
telecommunications services andinfrastructure.
2. TheUnited States willaccord allinterested parties timely andreasonable access toallinformation
supportingregulatorydecisions,subjecttoreasonablelimitationstoprotectconfidentialinformation.
Effective Independence oftheRegulator
TheUnited States will:
1. Notown anyinterest inanypublic telecommunications transport network andwillmaintain a
regulatory authority thatisnotaccountable toanypublic network operator nortoanyauthorities
thatexercise direct orindirect control over anypublic network operator.
2. Ensure that anindependent regulator isempowered toresolve disputes involving basic
telecommunications service suppliers andimpose meaningful sanctions forviolations ofrelevant
statutes, regulations andlicence terms.
3. Ensure thatanindependent regulator isempowered toreview publicly tariffed interconnection
arrangements toensure thatrates, terms andconditions arereasonable andnon-discriminatory.
4. Ensure thatanindependent regulator isempowered toadopt andenforce theinterconnection and
competition safeguards described above.