RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.7/Rev.1
15April 1996
ORGANIZATION(96-1358)
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.
_______________
Revised, 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 revised offerwhich improves
market access commitments andisconditional upon receiving comparable benefits fromother major
NGBT participants.
2. Canada willmake Additional Commitments based ontheReference Paper of22March 1996.
3. Canada reserves therighttowithdraw ormodify elements ofitsofferatanytimeprior tothe
conclusion ofthenegotiations onbasictelecommunications, depending onprogress onissues ofinterest
toCanada.
4. Canada reserves theright tomake technical changes totheoffer andtocorrect anyerrors,
omissions orinaccuracies, respecting items atfederal orsub-national levels.S/NGBT/W/12/Add.7/Rev.1
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
maybelimited.
1)3)Canadian voting equity participation inany
entity thatowns oroperates aglobal or
regional mobile satellite system maybe
required forsuch asystem tosupply services
inCanada.
(2)NoneN.B.: Theheadnotes inCanada 's
schedule ofspecific commitments under
theGATS apply tobasic
telecommunications.
(1)None
(2)NoneBased onReference PaperS/NGBT/W/12/Add.7/Rev.1
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 maybesubject 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
cease tobethesoleCanada-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.1
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)Alberta: Until January 1,1998, individual
holdings ofvoting stock inTelus arelimited
toamaximum of5percentandtotal foreign
ownership ofvoting stock islimited to10per
cent.
Nova Scotia: Noperson mayvotemore than
1,000 shares ofMaritime Telegraph and
Telephone Ltd.
OnApril 15,2002, Telesat Canada willcease
tobethesoleauthorized operator inCanada
ofsatellite space segment facilities used to
provide 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.Alberta: Until January 1,1998, at
least two-thirds ofthedirectors of
Telus must ordinarily beresident in
Alberta.
(4)Unbound, except ashasbeen
indicated intheheadnotes tothe
Canadian schedule.S/NGBT/W/12/Add.7/Rev.1
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:
Competition intheprovision ofpay-
telephone services isnotpermitted onaresale
basis orwithrespect tolocal services.
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 schedule