RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.2
31July 1995
ORGANIZATION(95-2351)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM JAPAN
Draft Offer onBasic Telecommunications
Theattached communication iscirculated attherequest ofJapan tomembers oftheNegotiating
Group onBasic Telecommunications.
_______________
Inaccordance with thedecision made atthesixth meeting totheNegotiating Group onBasic
Telecommunications (hereinafter referred toas"NGBT") on26April 1995, Japan hereby submits an
initial offer inbasic telecommunications.
ThisofferbasicallyreflectsthecurrentregulatoryframeworkinJapan'sbasictelecommunications
market andincludes substantial commitments concerning interconnection, competitive safeguards and
transparent regulations intheadditional commitment column. However, duetothelegal andtechnical
uncertainties surrounding certain regulatory issues, which stillneed further examination intheNGBT,
additional inscription totheschedule may bemade.
Japan reserves theright tomodify orwithdraw allorpartofitscommitments, andtolistMFN
exemptions. Japan, however, hopes thatother Members alsoundertake meaningful commitments on
anMFN basis sothatthiscritically important process willbesuccessfully completed byApril 1996.JAPAN -DRAFT OFFERS/NGBT/W/12/Add.2
Page 2Modes 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
C. Telecommunication services
Thefollowing Basic
Telecommunications Services
supplied byType I
Telecommunications Business:
(UNPC)
a. Voice telephone services
(CPC 7521)
b. Packed-switched data
transmission services
(CPC 7523**)1) None
2) None
3) 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
lessthan one-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:Procedures or
requirements related to:
- Interconnection
(See attachment to
theschedule)
- Competitive
Safeguards (See
attachment tothe
schedule)
c. Circuit-switched data
transmission services
(CPC 7523**)
d. Telex services
(CPC 7523**)
f. Facsimile services
(CPC 7521**, 7529**)
g. Private leased circuit
services
(CPC 7522**, 7523**)
o. OthersForeign capital participation, direct and/or
indirect, inNTT andKDD must beless
than one-fifth;
Foreign capital participation inaradio
station, except forthose engaging solely
intheabove-mentioned international
telecommunications business, must beless
than one-third.
Licensing forradio stations issubject to
theavailability offrequencies.(a)natural person without Japanese
nationality;
(b)foreign government orits
representative;
(c)juridical person established under
foreign legislation orother foreign
entity;
(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- Transparent
Regulations (See
attachment tothe
schedule).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
commitmentsS/NGBT/W/12/Add.2
Page 34) Unbound except asindicated in
HORIZONTAL COMMITMENTS4) Unbound except asindicated in
HORIZONTAL COMMITMENTS
Thefollowing Basic
Telecommunications Services
supplied byType II
Telecommunications Business*:
(UNPC)
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) None
2) None
3) None
4) Unbound except asindicated in
HORIZONTAL COMMITMENTS1) None
2) None
3) None except asindicated inHORIZONTAL
COMMITMENTS
4) Unbound except asindicated in
HORIZONTAL COMMITMENTSProcedures or
requirements related to:
- Interconnection
(See attachment to
theschedule)
- Competitive
Safeguards (See
attachment tothe
schedule)
- Transparent
Regulations (See
attachment tothe
schedule).
f. Facsimile services
(CPC 7521**, 7529**)
g. Private leased circuit
services
(CPC 7522**, 7523**)
o. Others
*Excluding voice transmission services supplied through theuseofdomestic leased circuits interconnected topublic switched network inboth ends, andbasic
telecommunications services supplied through theuseofinternational leased circuits interconnected topublic switched network.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
Type ITelecommunicationsS/NGBT/W/12/Add.2
Page 4
Business isthebusiness which
provides telecommunications
services byestablishing
telecommunications circuit
facilities.
Type IITelecommunications
business isany
telecommunications business
other than Type I
Telecommunications Business.
Telecommunications circuit
facilities aretransmission line
facilities connecting transmitting
points with receiving points,
switching facilities installed as
inseparable units therefrom, and
other facilities accessory tosuch
facilities.ATTACHMENT TOTHE ADDITIONAL COMMITMENTS INTHE JAPANESE DRAFT OFFERS/NGBT/W/12/Add.2
Page 51. Interconnection
Theregulatory body takes appropriate measures toensure:
1.1 Rules regarding interconnection between telecommunications service suppliers tobeapplied onatransparent andnon-discriminatory basis, while paying
attention, inparticular, totheprevention ofabuse bydominant service suppliers oftheir predominant position.
1.2 Interconnection charges between facilities-based suppliers tobefair, reasonable andcost-based.
1.3 Procedures for"type approval" tobefairandsimple tofacilitate resale-based suppliers 'interconnection tofacilities-based suppliers 'network.
2. Competitive Safeguards
2.1 Theregulatory body orders ,asappropriate, facilities-based suppliers tointerconnect their networks.
2.2 Theregulatorybodytakessuchmeasuresascross-subsidizationpreventionmeasurestopreventdominantservicesuppliersfromengaginginanti-competitive
conducts andabusing their market power.
2.3 Theregulatory body takes measures toprevent dominant suppliers from misusing information regarding other suppliers 'business obtained through
interconnection negotiations.
2.4 Theregulatory body takes measures tofacilitate disclosure ofdominant suppliers 'information essential forassuring fairandeffective competition, such
asbasic andtechnical information onnetworks.
3. Transparent Regulations
3.1 Theregulatory body establishes andpublishes thelicensing sub-criteria andstandard processing period forlicences, permissions andapprovals.
3.2 Theregulatory body ensures transparency informulating technical conditions andstandards.
3.3 Theregulatory body publishes listsofthecurrent state ofassignable frequencies andassigned frequencies.