RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.7/Rev.2
25April 1996
ORGANIZATION(96-1660)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM CANADA
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofCanada tomembers ofthe
Negotiating Group onBasic Telecommunications.
_______________
Attached youwillfindarevised version ofCanada 'sdraftofferonbasic telecommunications.
Anumber ofimprovements andtechnical changes inthedraftarehighlighted foreaseofreference
bydelegations.
Oneofthemajor improvements isthatCanada ismaking anadditional commitment toundertake
theobligations contained inthereference paper onregulatory principles. Would youplease ensure
therefore thatthereference paper isattached totherevised draftoffer.
Canada reserves therighttowithdraw ormodify elements ofitsofferatanytimeprior tothe
conclusion ofthenegotiations onbasictelecommunications, depending onprogress onissues ofinterest
toCanada.
Canada reserves theright tomake technical changes totheoffer andtocorrect anyerrors,
omissions orinaccuracies, respecting items atfederal orsub-national levels.S/NGBT/W/12/Add.7/Rev.2
Page2CANADA -DRAFT OFFER (REVISED)
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*Telecommunications
Services
Local, interexchange and
international services, supplied
overapublic 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:
Routing ofbasic telecommunications traffic in
Canada isregulated topromote theuseof
Canadian transmission facilities for
telecommunications within Canada and
between Canada andpoints outside Canada.
1)Canadian voting equity participation inany
&3) entity thatowns oroperates aglobal or
regional mobile satellite system maybe
required. Such voting equity participation
shall atleast equal thepercentage ofthe
system 'sexpected Canadian usage. Exceptions
tothisrequirement willbeconsidered if:
-services offered aredirected toasmall and
specialized market segment;
-theavailability ofsuch services would provide
clear benefits thatwould otherwise remain
unavailable toCanadian telecommunications
users;
-equity participation inthesystem by
Canadians isnotfeasible.
(2)NoneN.B.: Theheadnotes inCanada 's
schedule ofspecific commitments under
theGATS apply tobasic
telecommunications.
(1)None
(2)NoneCanada undertakes theobligations
contained inthereference paper
attached hereto.S/NGBT/W/12/Add.7/Rev.2
Page3Modes 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 and
international service, supplied
overapublic 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.
Foreign investment infacilities-based
telecommunication service suppliers is
permitted uptoacumulative totalof46.7%
ofvoting shares, based on20% direct
investment and331/3%indirect investment.
Such entities must becontrolled infactby
Canadians.
Facilities-based telecommunication service
suppliers thatexceeded thepermissible
cumulative foreign investment level cited
above on22July1987 andcontinue toexceed
thislevel maybesubject torestrictions.
Inthecourse of1998, Teleglobe Canada will
nolonger beauthorized asthesoleCanada-
overseas facilities-based telecommunication
service supplier.
ForTeleglobe Canada, a"non-resident
carrier" or"associate" asdefined inthe
Teleglobe Canada Reorganization Actmay, in
thecourse of1998, holdvoting shares upto
thepermissible cumulative foreign investment
level cited above.
Theright toobtain alicence tolanda
submarine cable maybelimited.(3)None, other than:
Atleast 80percent ofthemembers
oftheboard ofdirectors of
facilities-based telecommunication
service suppliers must beCanadian.S/NGBT/W/12/Add.7/Rev.2
Page4Modes 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 and
international service, supplied
overapublic telecommunications
transport network,
-onafacilities-basis (wire
andradio)
-andonaresale basis,
including sub-sectors 2C(a) -(g)
&(o)ofGNS/W/120 andCPC
7529*)
(continued)Nova Scotia: Noperson mayvotemore than
1,000 shares ofMaritime Telegraph and
Telephone Ltd.
OnApril 15,2002, Telesat Canada willno
longer beauthorized asthesoleoperator in
Canada ofsatellite space segment facilities
used toprovide national andCanada-U.S.
fixed satellite services.
Until April 15,2002, licences tooperate
Earth stations fortheprovision ofCanada-
U.S. fixed satellite services maybelimited.
(4)Unbound, except ashasbeen indicated inthe
headnotes totheCanadian schedule.(4)Unbound, except ashasbeen
indicated intheheadnotes tothe
Canadian schedule.S/NGBT/W/12/Add.7/Rev.2
Page5Modes 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 Telephone
Services andCPC 7529*(1)None, other thanthehorizontal
telecommunications measures cited above.
(2)None
(3)None, other thanthehorizontal
telecommunications measures cited above,
and:
Theuseofpaytelephones toprovide services
onaresale basis andtoprovide local services
isnotpermitted.
Competition intheprovision ofinterexchange
voice telephone service intheserving areas of
Northwestel Inc., Ontario Northland
Transportation Commission, andTélébec Ltée
maybelimited
Competition intheprovision oflocal wireline
telephone services intheserving areas of
Edmonton Telephones Corporation, Prince
Rupert CityTelephones, Ontario Northland
Transportation Commission andtheother
independent telephone companies listed in
CRTC Telecom Public Notice 95-15, maybe
limited.
Resale ofcellular mobile telephone services
maybelimited.(1)None
(2)None
(3)None, other thanthehorizontal
telecommunications measures cited
above.
(4)Unbound, except ashasbeen indicated inthe
headnotes totheCanadian schedule(4)Unbound, except ashasbeen
indicated intheheadnotes tothe
Canadian scheduleS/NGBT/W/12/Add.7/Rev.2
Page6
Negotiating Group onBasic Telecommunications 24April 1996
REFERENCE PAPER
Scope
Thefollowingaredefinitionsandprinciplesontheregulatoryframeworkforthebasictelecommunications
services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications transport 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 asaresult
of:
(a) control overessential facilities; or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1 Prevention ofanti-competitive practices intelecommunications
Appropriate measures shallbemaintained forthepurpose ofpreventing suppliers who, alone
ortogether, areamajor supplier from engaging inorcontinuing 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; and
(c) notmaking available toother services suppliers onatimely basistechnical information
about essential facilities andcommercially relevant information which arenecessary
forthem toprovide services.S/NGBT/W/12/Add.7/Rev.2
Page7
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplier and toaccess services provided byanother supplier, where specific commitments are
undertaken.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofaquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated service suppliers orforits
subsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented ratesthataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided; and
(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.
2.5 Interconnection: dispute settlement
Aservice supplier requesting interconnection withamajor supplier willhaverecourse, either:
(a) atanytimeor
(b) afterareasonable period oftimewhich hasbeenmade publicly known
toanindependent domestic body, which maybearegulatory bodyasreferred toinparagraph 5below,
toresolve disputes regarding appropriate terms, conditions andrates forinterconnection within a
reasonable period oftime, totheextent thatthese havenotbeenestablished previously.S/NGBT/W/12/Add.7/Rev.2
Page8
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicence and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon request.
5. Independent regulators
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial
withrespect toallmarket participants.
6. Allocation anduseofscarce resources
Anyprocedures fortheallocation anduseofscarce resources, including frequencies, numbers
andrightsofway,willbecarriedoutinanobjective,timely,transparentandnon-discriminatorymanner.
Thecurrent stateofallocated frequency bands willbemade publicly available, butdetailed identification
offrequencies allocated forspecific government usesisnotrequired.