Telecommunications and Value Added Network Services

Countries should make commitments consistent with the GATS Telecom Annex and Basic

Telecom Reference Paper.

Countries should provide market access and national treatment, without limitation, on a

cross border and commercial presence basis for basic telecommunications services, value 

added network services, and computer and related services (including such services as

electronic naming and authentication).

Countries should also create a policy environment conducive to a high level of investment

through market oriented regulation of basic telecommunications services.

Because increasing competition leads to increasing teledensity more infrastructure at lower

prices countries should not delay their transition to fully competitive markets. Countries

with market opening commitments for the future should have phase in dates as early as

possible.

Countries should also provide non discriminatory access to unbundled elements of basic

telecommunications networks and services (including leased lines, circuit capacity, and local

access services on a wholesale, cost oriented basis).

Failure to implement interconnection and unbundling reform for basic telecommunications

can drive away investors and destroy competition.  Allowing dominant incumbent telecos to

delay movement to non discriminatory pricing based on forward looking costs or unbundling

of their networks inhibits investors and suppliers from determining where to invest and how

to structure their costs. Countries should commit to ensuring non discriminatory, cost based

pricing for interconnection with the PSTN.

Countries should make commitments compatible with provisions of the WTO Reference

Paper, which has created common understanding of how transition to competition should be

governed.  The commitments compatible with ones of the Reference Paper should be

incorporated into the countries telecom schedule of commitments.  Countries should

recognize that lack of transparency in the regulatory process is a death knell for investment

and can cripple competition.  Countries should commit to a credible regulatory process that

provides transparency of process and independence and impartiality of the regulator.

Countries should establish a pro competitive market and implement measures that would

guard against the dominant, incumbent telco's anti competitive conduct.  These types of

measures will increase teledensity more quickly by leveling the playing field between the

incumbent and the new competitors.  As competition develops, the declining market power

of the incumbent telco should lead to a corresponding reduction in the amount of regulation

applied to the telco.  The ultimate objective is a fully competitive marketplace where market

forces can be relied upon to properly control every provider to the maximum benefit of

customers.

Countries should provide fair, transparent and pro competitive policies for access to cable

and satellite networks for broadcasting services.

Countries should also commit to ensuring non discriminatory, cost based access to all

communications platforms used in the provision of value added services (including wireline,

wireless, cable and satellite networks).

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