RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.1/Rev.2
30April 1996
ORGANIZATION(96-1776)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM NEW ZEALAND
Draft Offer onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest ofNewZealand tomembers ofthe
Negotiating Group onBasic Telecommunications.
_______________
Thisofferisconditional. NewZealand reserves therighttosupplement ormodify thisoffer,
asprovided forunder theterms oftheDecision onCommitments inBasic Telecommunications,
depending, interalia,onthenumber ofoffers byother parties; onthedegree towhich these offers
areequivalent andmutually acceptable, ontheextent andsignificance ofanyexemptions fromtheMFN
discipline sought byotherparties under theAnnex onArticle IIExemptions andonsatisfactory outcomes
regarding anyadditional matters thatmayariseinthiscontext.S/NGBT/W/12/Add.1/Rev.2
Page2NEW ZEALAND -REVISED DRAFT OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4)Presence ofnatural persons
Sector orsubsector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
2.COMMUNICATION SERVICES
C.Telecommunication services
a.Voice telephone services (7521)
b.Packet-switched datatransmission
services (7523**)
c.Circuit-switched datatransmission
services (7523**)
d.Telex services (7523**)
e.Telegraph services (7522)
f.Facsimile services (7521**,
7529**)
g.Private leased circuit services
(7522**, 7523**)1),(2),(3) None, except for:
Reserve powers toprevent the
misuse ofmarket power bya
service supplier inaterritory
outside New Zealand totheharm
ofconsumers orcompetition in
New Zealand.
(3)Thenumber ofservice suppliers
maybelimited bytheavailability
ofradio spectrum.
(3)Telecom Corporation ofNew
Zealand Limited isdesignated as
theNew Zealand signatory tothe
Intelsat andInmarsat Operating
Agreements(1)None
(2)None
(3)None other than: TheArticles of
Association oftheTelecom
Corporation ofNew Zealand
Limited limit theshareholding by
anysingle overseas entity to
49.9%. Atleast halfofBoard
directors arerequired tobe
New Zealand citizens.Theprinciples setforth inthe
attached reference paper are
incorporated inthisschedule tothe
extent theyarecommitments
additional totheobligations flowing
from PartIandII,Article XXVIII
andtheAnnex on
Telecommunications oftheGeneral
Agreement onTrade inServices in
respect oftheArticle XVIandXVII
commitments ontelecommunication
services contained herein.
o.Other
Paging services (75291)
Teleconferencing services
(75292)
Personal Communications
Services (75213*)
Cellular services (75213*)(4)Unbound except asindicated in
thehorizontal section(4)Unbound except asindicated in
thehorizontal sectionS/NGBT/W/12/Add.1/Rev.2
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4)Presence ofnatural persons
Sector orsubsector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Trunked radio system services
(7523**, 75213*)
Mobile dataservices (7523**)
Satellite services
International switching andother
international gateway activitiesS/NGBT/W/12/Add.1/Rev.2
Page4
REFERENCE PAPER
Scope
Thefollowingaredefinitionsandprinciplesontheregulatoryframeworkforthebasictelecommunications
services1.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities2mean facilities ofapublic telecommunications transport network orservice that
(a) areexclusively orpredominantly provided byasingle orlimited number ofsuppliers;
and
(b) cannot feasibly beeconomically ortechnically substituted inorder toprovide aservice.
Amajor supplier isasupplier which hastheability tomaterially affect theterms ofparticipation (having
regard toprice andsupply) intherelevant market forbasic telecommunications services asaresult
of:
(a) control overessential facilities; or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1 Prevention ofanti-competitive practices intelecommunications
Appropriate measures shallbemaintained forthepurpose ofpreventing suppliers who, alone
ortogether, areamajor supplier from engaging inorcontinuing anti-competitive practices.
1.2 Safeguards
Theanti-competitive practices referred toabove shallinclude inparticular:
(a) engaging inanti-competitive cross-subsidization;
(b) using information obtained from competitors withanti-competitive results; and
(c) notmaking available toother services suppliers onatimely basistechnical information
about essential facilities andcommercially relevant information which arenecessary
forthem toprovide services.
1Thisapplies onlytosuppliers ofbasic telecommunications services andnottousers ofsuch services.
2Thedefinition of"essential facilities" willbeapplied onlytotheextent consistent withNew Zealand 's
competition policy regime, which regulates theactivities of"dominant suppliers".S/NGBT/W/12/Add.1/Rev.2
Page5
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplier andtoaccess services provided byanother supplier.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofaquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated service suppliers orforits
subsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented ratesthataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided; and
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities.
2.3 Public availability oftheprocedures forinterconnection negotiations
Theproceduresapplicableforinterconnectiontoamajorsupplierwillbemadepubliclyavailable.
2.4 Transparency ofinterconnection arrangements
Itisensured thatamajor supplier willmake publicly available either itsinterconnection
agreements orareference interconnection offer.
2.5 Interconnection: dispute settlement
Aservice supplier requesting interconnection withamajor supplier willhaverecourse, either:
(a) atanytimeor
(b) afterareasonable period oftimewhich hasbeenmade publicly known
toanindependent domestic body, which maybearegulatory bodyasreferred toinparagraph 5below,
toresolve disputes regarding appropriate terms, conditions andrates forinterconnection within a
reasonable period oftime, totheextent thatthese havenotbeenestablished previously.S/NGBT/W/12/Add.1/Rev.2
Page6
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicence and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon request.
5. Independent regulators
Theregulatory body isseparate from, andnotaccountable to,anysupplier ofbasic
telecommunications services. Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial
withrespect toallmarket participants.
6. Allocation anduseofscarce resources
Anyprocedures3fortheallocation anduseofscarce resources, including frequencies, numbers
andrightsofway,willbecarriedoutinanobjective,timely,transparentandnon-discriminatorymanner.
Thecurrent stateofallocated frequency bands willbemade publicly available, butdetailed identification
offrequencies allocated forspecific government usesisnotrequired.
3Suchprocedures maybeadministered bymeans ofaveriety ofmechanisms, including lawsandregulations,
public tendering processes andconsultative processes.