RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.18/Rev.1
18April 1996
ORGANIZATION(96-1479)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THE PHILIPPINES
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofthePhilippines tomembers of
theNegotiating Group onBasic Telecommunications.
________________
ThePhilippines hasrevised itsoffer of22January 1996 andreserves itsright towithdraw
oramend thisrevised Offer atanytimeprior totheconclusion ofthenegotiations depending on:
(a) theachievement ofanappropriate balance ofbenefits from thenegotiations;
(b) theextent ofMFN exemption sought byother NGBT participants; and
(c) theoutcome ofthediscussions onregulatory issues which should takeintoaccount
varied market andregulatory structures andindividual levels ofeconomic development
ofparticipants.
ThePhilippines shall confirm theoffer inaccordance withitsnational procedures forthe
ratification andentry intoforce ofnewinternational commitments.S/NGBT/W/12/Add.18/Rev.1
Page2THE PHILIPPINES: REVISED DRAFT OFFER ONBASIC TELECOMMUNICATIONS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
2.COMMUNICATION SERVICES
C. Telecommunication Services
Thecommitments incommunication services areinaccordance withtheGeneral Agreement onTrade inServices anditsAnnex onTelecommunications. In
support ofmarket access commitments undertaken, thefollowing principles willform thebasis fortheregulatory framework inbasic telecommunications.
Regulatory Framework
1. Regulation oftelecommunications entities shall relyprincipally onanadministrative process thatisstable, transparent andfair. Thedecisions ofandthe
procedures issued bytheregulatory body shall beimpartial withrespect toallmarket participants.
2. Where alicence isrequired, thefollowing shall bemade publicly available:
(a) allthelicensing criteria andtheperiod oftime normally required toreach adecision concerning anapplication foralicence;
(b) theterms andconditions ofindividual licences.
3. Appropriate measures shall bemaintained forthepurpose ofpreventing suppliers from engaging inorcontinuing anti-competitive practices.
4. Anational consultative forum shall bemaintained toallow interaction among thetelecommunications industries, usergroups, andacademic andresearch
institutions onimportant issues inthefield ofcommunications.
Universal Service andInterconnection
5. Universal service obligations, asmaybedefined bytheappropriate Authority, shall beadministered inatransparent, non-discriminatory andcompetitively
neutral manner.
6. Afairandreasonable interconnection offacilities ofauthorized public network operators andother providers oftelecommunications services isnecessary
inorder toachieve aviable, efficient, reliable anduniversal telecommunications services.
7. Authorized international gateway andmobile cellular telephone service providers arerequired bylawtoinstall asetnumber oflocal exchange lines in
designated areas.S/NGBT/W/12/Add.18/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(a) Voice telephone services
-Local services
-Tollservices
*Domestic
*International
(b) Packet-switched data
transmission services
(c) Circuit-switched data
transmission services
(d) Telex services
(e) Telegraph services
(f) Facsimile services(1)Unbound
(2)None
(3)Operation subject tosecuring of:
(i)Franchise from theCongress
ofthePhilippines
(ii)Certificate ofPublic
Convenience andNecessity
(CPCN) from theNational
Telecommunications
Commission
Compliance withan
economic needs testis
required.
Aggregate foreign equity ina
domestic telecommunications
entity shall notexceed forty per
cent(49%).
Thenumber ofnon-Filipino
citizens intheBoard ofDirectors
ofanentity shall beproportionate
totheaggregate share offoreign
capital ofthatentity.
Allexecutives andmanagers must
becitizens ofthePhilippines.(1)None
(2)None
(3)NoneS/NGBT/W/12/Add.18/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Thenumber ofservice providers
mayalsobelimited onaccount of
theavailability andefficient
utilization ofradio frequencies.
Resale ofprivate leased lines is
notpermitted.
Callback, dialback andother
similar schemes which result in
thesame operation arenot
authorized.
(4)None (4)None