Telecom Sector

1
Telecom Sector GATS

• Todays purpose
• How to use the WTO forum to expand
  business opportunities of HK telecom service
  providers.
• Part I Telecom negotiations in GATS
• Part II Private sectors wish list

2
Part I Telecom Negotiation in GATS

• Define telecom services in GATS
• Basic Telecommunications Agreement (BTA)

3
Define Telecom Services in GATS

• 15 subsectors divided into
• Basic telecom services - simple relay of info in
  real time from end to end
• Value-added services - telecom provider adds
  value to customers info by enhancing its form or
  content
• Others

4
Basic Telecom Agreement

• Signed in Feb 1997
• Came into effect in Feb 1998
• 69 signatory WTO countries
• represent over 90 of the basic telecom market
  worldwide

5
Coverage of BTA

• encompasses local, long distance, international
  services
• for public and non-public uses
• transmitted over facilities-based or through
  resale (private leased circuit)
• provided through any means of technology
• (e.g. cable, wireless, satellites, stationary
  or non-stationary means)

6
Components of BTA

• Specific commitments from individual countries
• Annex on telecommunications
• Reference Paper

7
Specific Commitments (Basic Value-added)

• 83 and 70 WTO members have made commitments in
  telecom and value-added services respectively.
• Breath of coverage
• - 65 at least 10 subsectors
• - 25 between 14-15 subsectors

8
Annex on Telecommunications

• Motivation
• Telecom services are important input into the
  supply of other services. Adequate access to and
  use of public telecom transport network
  services (PTTNS) are essential conditions to
  guarantee market access to all service sectors.

9
Annex on Telecommunications (cont.)

• Each WTO member is required to allow foreign
  firms access to and use of PTTNS on a reasonable
  and non-discriminatory basis when they take
  advantage of ANY GATS commitments made by this
  member.
• MFN and national treatment

10
Reference Paper

• Set up pro-competitive principle
• competitive safeguard
• interconnection
• transparent licensing criteria
• independent regulator
• allocation of scarce resources
• universal safeguard

11
Summary of Telecom Commitments

• Value-added services more open
• Common limitations on market access (mostly on
  commercial presence)
• number of suppliers
• types of legal entity or joint venture
• foreign equity ownership

12
Part II Private Sectors Wish List

• Information technology (IT)
• telecom services
• information services

13
Telecom ServicesCountries of Interest
14
Information ServicesCountries of Interest
15
Telecom ServicesBusinesses of Interest
16
Telecom ServicesMajor Wishes

• Commercial presence requirements
• relax restrictions on foreign ownership,
  operating licence and scope of business (top 3)
• Immigration and visa
• streamline application, relax quota and duration
  of foreign visa
• Market infrastructure
• simplify domestic regulations, enforce
  intellectual property law
• Improve transparency
• court rulings, set up inquiry point

17
Information ServicesBusinesses of Interest
18
Information ServicesMajor Wishes

• Improve transparency
• Set up EDI (1), court rulings, set up inquiry
  point
• Market infrastructure
• E-commerce regulations (3), relax restrictions on
  marketing channels, simplify domestic regulations
• Commercial presence requirements
• Relax restrictions on foreign ownership and scope
  of business (2)

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The End