Report

166 QUANTIFICATION OF BENEFITS FROM ECONOMIC COOPERATION IN SOUTH ASIA
the commitments, countries would therefore like to
persevere with the existing classification of the GATS,
even though it is recognised to be out of date. For
example, in the Indo-Singapore CECA (signed on 29
June 2005 and came into force on 1 August 2005),
telecommunication services are defined following a
positive list approach, like in the GATS. 6
RELEVANT PROVISIONS OF GATS AND
OTHER RULES AND DISCIPLINES FOR
TELECOMMUNICATIONS
The WTO rules and disciplines for telecom comprise
the GATS, the Annex on Telecommunications
(hereinafter the Annex) and the Schedules of commitments
made under the GATS. In addition, the Reference
Paper provides the basic thrust of major regulatory
disciplines that are relevant to telecom services. The
Annex recognises ‘the specificities of the telecommunications
service sector and, in particular, its dual role as
a distinct sector of economic activity and as the underlying
transport means for other economic activities’, i.e.
importance of telecommunications as an input for other
sectors.
The Annex comprises seven sections, with the core
obligations contained in the section on access to and
use of ‘public telecommunications transport network
and services’ (or PTTNS). These require WTO members
to ensure that access to and use of the PTTNS are
allowed on reasonable and non-discriminatory terms
for the supply of services included in its schedules. This
would be true even when no basic telecom service
commitments have been made by the government in
its schedule, and whether or not such PTTNS is supplied
by a monopoly or through competition. Inasmuch as a
Commitment in a Member’s schedule on basic telecom
services is for the supply of these services, access to
and use of PTTNS on reasonable and nondiscriminatory
terms is a mandatory requirement under
the provisions of this Annex. In addition, there is
recognition of the need for maintaining security and
confidentiality of messages, safeguarding universal
service and other public obligations, and protection of
the technical integrity of the networks.
Several governments felt that explicit regulatory
principles should be drawn up for basic telecom
services, particularly in order to guard against anticompetitive
behaviour by incumbents. This was based
on the view that the telecom sector normally has a
dominant supplier who could alter the market situation
to the disadvantage of a newcomer. Further, an
Table 15.2 WTO Reference Paper: Definitions
and Principles
Definition/Principles
Definitions
Description
The Reference Paper applies rules to
‘major suppliers’ of telecommunications
services who have ‘control over
essential facilities’ or uses its position
to ‘materially affect the terms of participation’.
Competitive Governments must take appropriate
Safeguards
measures to prevent suppliers of telecommunications
services from using
anti-competitive practices such as
cross-subsidisation, apply information
obtained from competitors in an uncompetitive
manner, or denying competitors
access to relevant technical
information.
Interconnection Governments must ensure that major
suppliers provide interconnection of
their networks to other service suppliers
at ‘any technically feasible point in the
network’. Major suppliers will offer
interconnection that is non-discriminatory,
timely, and at a rate and quality
‘no less favourable’ than that provided
for its own subsidiaries or affiliates.
Universal Service Governments may set universal service
obligations, as long as they are administered
in a transparent, non-discriminatory,
competitively neutral manner and
are not more burdensome as necessary
in reaching their policy objectives.
Transparency Under circumstances where licenses
are required, the licensing criteria,
timeframe, and terms and conditions
are to be made publicly available.
Upon the request of the applicant, the
reasons for denial of a license will be
made known.
Independent The regulatory body must be separate
Regulators
and not accountable to any supplier of
basic telecommunications services and
that its procedures be impartial.
Allocation and Use Government procedures for the allocaof
Scare Resources tion and use of scare resources, such
as frequencies and numbers, must be
objective, timely, transparent and nondiscriminatory.
Source: Compiled from www.wto.org
6
A positive list approach gives countries the flexibility to choose the sectors/sub-sectors and modes within those sectors/subsectors
for making commitments.