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Telecom Sector & GATS . Today’s 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 sector’s wish list. Part I: Telecom Negotiation in GATS. Define telecom services in GATS
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Telecom Sector & GATS • Today’s 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 sector’s wish list
Part I: Telecom Negotiation in GATS • Define telecom services in GATS • Basic Telecommunications Agreement (BTA)
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
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
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)
Components of BTA • Specific commitments from individual countries • Annex on telecommunications • Reference Paper
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
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.
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
Reference Paper • Set up pro-competitive principle • competitive safeguard • interconnection • transparent licensing criteria • independent regulator • allocation of scarce resources • universal safeguard
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
Part II: Private Sector’s Wish List • Information technology (IT) • telecom services • information services
TelecomServices:Major 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
Information Services:Major 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)