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 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 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

Telecom Services: Countries of Interest

Information Services: Countries of Interest

Telecom Services: Businesses of Interest

Telecom Services: 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: Businesses of Interest

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)

The End