RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.15/Rev.1
16April 1996
ORGANIZATION(96-1496)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM THE REPUBLIC OFKOREA
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest oftheRepublic ofKorea tomembers
oftheNegotiating Group onBasic Telecommunications.
_______________
Thisoffer isconditional upon thereceipt ofcomparable commitments from other NGBT
participants. Inaddition, Korea reserves therighttomodify orwithdraw partorallofthisofferprior
totheconclusion oftheongoing negotiations onbasic telecommunications.
Inresponse torequests fromthenegotiating partners, theRepublic ofKorea hereby submits
theattached revision ofitsdraftoffer submitted onDecember 11,1995 (S/NGBT/W/12/Add.15).
Main features oftherevised draftoffer are:
- tobindbasic telecommunications services viacross-border supply under acertain
condition;
- toallow market access tosatellite services;
- toclarify thelimitations onforeign investment infacilities-based services; and
- toscrape mandatory technical standards inmarket access column inorder to
reflect theopinion ofthenegotiating partners thattheyareredundant inthesense that
suchstandards areapplicable under therelevant provision oftheGATS.
Concerning regulatory issues, Korea isconsidering tomake additional commitments witha
viewtoensuring market access commitments effective. Nature ofsuchadditional commitments will
depend upontheoutcome oftheon-going discussions on“Reference Paper. ”Ifthediscussions produce
asatisfactory conclusion, Korea ’sadditional commitments willbeformulated onthebasis ofthe
pro-competitive regulatory principles outlined inthe“Reference Paper. ”Ifnot,regulatory principles
intheattachment tothisrevised draftofferwillbethepossible elements ofadditional commitments.
Thisoffer isconditional upon thereceipt ofcomparable commitments from other NGBT
participants. Inaddition, Korea reserves therighttomodify orwithdraw partsoforallofthisoffer
atanytimepriortotheconclusion oftheongoing negotiations onbasictelecommunications, inparticular
depending ontheprogress inthenegotiations.S/NGBT/W/12/Add.15/Rev.1
Page2THE REPUBLIC OFKOREA -REVISED DRAFT OFFER
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.Telecommunications services
Facilities-based:
a.Voice telephone services
Local, longdistance, and
international services overa
public telecommunications
transport network primarily
based onwireline technology
(CPC 7521**)
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)(1)Theprovision ofallservices issubject to
commercial arrangements with, orrouted
onthefacilities of,licenced service
suppliers.
(2)None
(3)None asofJanuary 1,1998, except that:
(i) Thenumber ofservice suppliers may
belimited subject totheavailability
ofradio frequency spectrum.
(ii) Each service supplier must bea
juridical person.
(iii) Alicence maynotbegranted tothe
following entities:
-foreign government;
-foreign juridical person; or
-juridical person more than33
percentofwhose voting shares
isowned by,orwhose largest
shareholder is:(1)None
(2)None
(3)None asofJanuary 1,1998, except that:
- Aradio station licence maynotbe
granted tothefollowing entities:
(a)foreign government orits
representative;
(b)foreign natural person;
(c)juridical person orother kinds
ofentities established under
foreign legislation;
(d)juridical person more than33
percentofwhose voting shares
isowned byanyof
governments, persons orentities
asmentioned inparagraphs
(a)-(c) above.S/NGBT/W/12/Add.15/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
Facilities-based: (cont'd)
g.Private leased circuit
services
(CPC 7522**, 7523**)
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS(personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)(a)foreign government;
(b)foreign person; or
(c)juridical person 50percent1or
more ofwhose voting shares
owned byforeign governments,
foreign natural persons, or
foreign juridical persons2.
(iv) Theforeign shareholding inKTmust
benomore than20percent3.
(4)Unbound except asindicated inhorizontal
commitments(4)Unbound except asindicated inhorizontal
commitments
Satellite telecommunications
services
115percent, ifthelargest shareholder ofthejuridical person isaforeign government oraforeign person.
2and3.Additional restrictions mayapply toforeign capital participation infacilities-based service suppliers, pursuant toKorea 'shorizontal commitments.S/NGBT/W/12/Add.15/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
Resale-based:
a.Voice telephone services
Local, longdistance, and
international services overa
public telecommunications
transport network primarily
based onwireline
technology (CPC 7521**)(1)Theprovision ofallservices issubject to
commercial arrangements with, orrouted
onthefacilities of,licenced service
suppliers.
(2)None
(3)None asofJanuary 1,1998, except that:(1)None
(2)None
(3)None asofJanuary 1,1998
b.Packet-switched data
transmission services
(CPC 7523**)
c.Circuit-switched data
transmission services
(CPC 7523**)
d.Telex services
(CPC 7523**)(i) Voice transmission services offered
overacircuit connected tothe
public telecommunications transport
network willbepermitted asof
January 1,2001.
(ii) Each service supplier must bea
juridical person.
(4)Unbound except asindicated inhorizontal
commitments(4)Unbound except asindicated inhorizontal
commitments
e.Telegraph services
(CPC 7523**)
f.Facsimile services
(CPC 7521**, 7529**)
g.Private leased circuit
services (CPC 7522**,
7523**)S/NGBT/W/12/Add.15/Rev.1
Page5Modes 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
Resale-based: (cont'd)
o.Other
Digital cellular services
(CPC 75213*)
Paging services
(CPC 75291*)
PCS (personal
communications services,
CPC 75213*)
TRS (trunked radio system)
services (CPC 7523**,
CPC 75213*)
Mobile dataservices
(CPC 7523**)
Satellite telecommunications
servicesS/NGBT/W/12/Add.15/Rev.1
Page6
ATTACHMENT TOTHE KOREA 'SREVISED DRAFT OFFER
Regulatory Principles
I. Transparency ofRegulations
o Laws andregulations pertaining totheprovision ofbasictelecommunications services
shallbepublished.
o Advanced public notice andafairopportunity willbeprovided forinterested parties
tocomment onproposed measures affecting theprovision ofbasictelecommunications
services.
II. Interconnection
o Servicesupplierswithbottleneckfacilitiesshallberequiredtosatisfyreasonablerequests
fromother service suppliers forinterconnection onanon-discriminatory, reasonable
andcost-oriented basis.
o Intheevent thataservice supplier isunable toreach agreement withsuchadominant
service supplier regarding interconnection following areasonable amount oftime,either
party mayreferthedispute totheKorea Communications Commission.
o Service suppliers withbottleneck facilities shallberequired todisclose information
concerning technical measures andparameters thatwillaffect useofsuchfacilities
byother service suppliers.
III. Competition Safeguards
o When afacilities-based service supplier withadominant market position isfound to
haveengagedinunfairoranti-competitivepractices,remedialmeasureswillbeavailable.
o When afacilities-based service supplier withadominant market position provides a
competitive service. theservice supplier shall berequired toestablish aseparate
accounting procedure forprovision ofthecompetitive service.
IV. Telecommunications Regulatory Body
o Intheevent thatservice suppliers areunable toresolve adispute inanamicable manner,
either party mayreferthedispute totheKorea Communications Commission.