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Telecom Sector & GATS

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

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  1. 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

  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 Sector’s Wish List • Information technology (IT) • telecom services • information services

  13. Telecom Services:Countries of Interest

  14. Information Services:Countries of Interest

  15. Telecom Services:Businesses of Interest

  16. 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

  17. Information Services:Businesses of Interest

  18. 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)

  19. The End

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