RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.2/Rev.1
20March 1996
ORGANIZATION(96-1034)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM JAPAN
Draft Offer onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest ofJapan tomembers oftheNegotiating
Group onBasic Telecommunications.
_______________
Japan hereby submits arevision ofitsdraft offer submitted on31July 1995
(S/NGBT/W/12/Add.2).
Therevised draftofferincludes thelifting ofrestrictions ontheusage ofinternational private
circuits except forlimitations ontheprovision ofservices inamanner tobypass theinternational
accounting ratessystem.
Regarding regulatory principles, Japan willsoonundertake commitments onthebasis ofthe
results ofdiscussions heldinthe"Reflection Group" onsuchissues thatrelate todefinitions inthe
"Reference Paper".
WithregardtoforeigninvestmentinJapanesebasictelecommunicationsbusinesses,thereadiness
toimprove itsoffer willdepend onthewillingness ofmajor trading partners toimprove theirown
offers.
Furthermore, duetothelegalandtechnical uncertainties surrounding certain regulatory issues,
which stillneedfurther examination intheNGBT, additional inscription totheschedule maybemade.
Japan reserves therighttomodify orwithdraw allorpartofitscommitments, andtolistMFN
exemptions. Japan, however, hopes thatother Members alsoundertake meaningful commitments on
anMFN basis sothatthiscritically important process willbesuccessfully completed byApril 1996.S/NGBT/W/12/Add.2/Rev.1
Page2JAPAN -REVISED DRAFT OFFER
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
2. COMMUNICATION
SERVICES(Japan willmake
additional commitments
inreference tothe
"Reference Paper".)
C. Telecommunication services
Thefollowing Basic
Telecommunications Services
supplied byType IorType II
Telecommunications Business:
(UNCPC)
a. Voice telephone services
(CPC 7521)
b. Packed-switched data
transmission services
(CPC 7523**)
c. Circuit-switched data
transmission services
(CPC 7523**)
d. Telex services
(CPC 7523**)(1) Provision ofservices inamanner to
bypass theinternational accounting rate
system islimited.
(2) Provision ofservices inamanner to
bypass theinternational accounting rate
system islimited.
(3) Provision ofservices inamanner to
bypass theinternational accounting rate
system islimited.
Foreign capital participation, direct and/or
indirect, inaType Itelecommunications
business, except forthose engaging solely
ininternational telecommunications
business between specific fixed points via
relaying satellite radio stations, must be
lessthanone-third ofitstotal shares:(1) None
(2) None
(3) Permission forType Itelecommunications
business orlicence forradio stations, except
forthose engaging solely ininternational
telecommunications business between
specific fixed points viarelaying satellite
radio stations, arenotgranted tothe
following applicants:
(a)natural person without Japanese
nationality;
(b)foreign government orits
representative;
(c)juridical person established under
foreign legislation orother foreign
entity;S/NGBT/W/12/Add.2/Rev.1
Page3Modes 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
f. Facsimile services
(CPC 7521**, 7529**)
g. Private leased circuit
services
(CPC 7522**, 7523**)
o. Others
Type ITelecommunications
Business isthebusiness which
provides telecommunications
services byestablishing
telecommunications circuit
facilities.
Type IITelecommunications
business isany
telecommunications business
other thanType I
Telecommunications Business.
Telecommunications circuit
facilities aretransmission line
facilities connecting transmitting
points withreceiving points,
switching facilities installed as
inseparable units therefore, and
other facilities accessory tosuch
facilities.- Foreign capital participation, direct and/or
indirect, inNTT andKDD must beless
thanone-fifth;
- Foreign capital participation inaradio
station, except forthose engaging solely
intheabove-mentioned international
telecommunications business, must beless
thanone-third.
Licensing forradio stations issubject to
theavailability offrequencies.
(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS(d)juridical person orentity which is
represented by,orwhich hasone-third
ormore ofitsboard ofdirectors
occupied bynatural persons, juridical
persons orentities mentioned above in
paragraphs (a)-(c).
Asindicated inhorizontal commitments
(4) Unbound except asindicated in
HORIZONTAL COMMITMENTS