RESTRICTED
WORLD TRADE S/NGBT/W/12/Add.4/Rev.1
30January 1996
ORGANIZATION(96-0388)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM HONG KONG
Draft Offer onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofHong Kong tomembers ofthe
Negotiating Group onBasic Telecommunications.
____________
Further toourinitial offercontained inS/NGBT/W/12/Add.4 dated 2August 1995, Hong Kong
ispleased tosubmit theattached revised conditional draftoffer onbasic telecommunications.
Asregards possible additional commitments onthetechnical andconceptual issues which are
stillbeing discussed intheNegotiating Group onBasic Telecommunications, wefeelthatthereissome
waytogobefore anagreement could bereached inthose discussions. Nevertheless fortransparency
regarding Hong Kong'sregime andcommitment tothetrackofnegotiations, Hong Kong isalsopleased
toattach anoteoncertain oftheitems being discussed fortheinformation oftheNegotiating Group.
Thedraftofferisconditional andHong Kong reserves therighttomake amendments toitat
anytimeprior totheconclusion ofthetrack ofnegotiations onbasic telecommunications.S/NGBT/W/12/Add.4/Rev.1
Page2HONG KONG -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
COMMUNICATION SERVICES
Telecommunications Services
Basic local services; wireorradio-
based; facilities-based oronaresale
basis only; ineach ofthefollowing
sub-sectors:
(a) Voice telephone services
(b) Packet-switched data
transmission services
(c) Circuit-switched data
transmission services(1) None except traffic/services
carried ontele-
communications transport
networks provided tothe
public must berouted on
facilities established in
Hong Kong. Certain external
services andcircuits are
provided bytheHong Kong
Telecom International Ltd.
under anexclusive licence
until September 2006.
(2) None
(3) None other thanthe
following:
-thesupply ofradio
services issubject to
availability ofradio
frequencies;
-commercial presence
must taketheform ofa
company;1(1) None
(2) None
(3) None
1"Company" means broadly, acompany incorporated inHong Kong under theCompanies Ordinance, oracompany incorporated outside Hong Kong which established aplace ofbusiness andregistered
assuchinHong Kong under theCompanies Ordinance.S/NGBT/W/12/Add.4/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
(f) Facsimile services
(g) Private leased circuit services-Chubb Electronics (HK)
Ltd.hastheexclusive
right forproviding afire
alarm transmission system
forrelaying firealarm
signals between Fire
Services Department
(government) andpublic
buildings;
(o) Others
Mobile services
-mobile radio telephone
services
-mobile dataservices
-radio paging services-Wharf Cable Ltd.hasthe
right, exclusive until
31May 1996, tooperate
atelecommunications
network tosupply
subscription television
broadcasting services.
Whether theexclusivity
willcontinue thereafter is
subject toconsideration;
and
-atpresent there arefour
licences forlocal fixed
network. New licences
willnotbeconsidered
before June 1998.
Whether more licences
willbeissued thereafter
issubject toreview in
1998
(4) Unbound except forintra-
corporate transfer ofgeneral
managers, senior managers
andspecialists assetoutin
theAttachment.(4) UnboundS/NGBT/W/12/Add.4/Rev.1
Page4
Hong Kong'sNote onRegulatory Principles
1. Competition Safeguards
1.1 Hong Kong shallmaintain measures tocontrol anti-competitive conduct andtheabuse ofa
dominant position.
1.2 Such measures alsoinclude accounting safeguards and/or structural separation forsuppliers
ofdomestic public telecommunications transport networks andservices thatcontrol essential/
bottleneck facilities which cannot beeconomically ortechnically substituted andarerequired
byacompetitor forthesupply ofaservice.
2. Interconnection
2.1 Hong Kong shallmaintain measures toallow asupplier ofpublic telecommunications transport
services tointerconnect withtheessential facilities ofsuppliers ofpublic telecommunications
transportnetworksforthepurposeofsupplyingtelecommunicationsservices,inatimelyfashion
andontransparent, reasonable, non-discriminatory terms andconditions, including, as
appropriate, acontribution charge tooffset theobligation forproviding auniversal service.
2.2 Theregulatory authority shalldefine theessential/bottleneck facilities ofsuppliers ofdomestic
public telecommunications transport networks andservices which shallbeunbundled andmade
available forinterconnection withother suppliers, singly orincombination, onatransparent,
reasonable andnon-discriminatory basis.
3. Licensing
3.1 Hong Kong shallmaintain measures toallow objective andtransparent licensing andadequate
opportunities forinterested parties tobeinvolved inintroducing neworanychanges toexisting
rules andregulations.
4. Independent Regulator
4.1 Hong Kong shallmaintain thattheregulatory authority isseparate from, andnotaccountable
to,anysupplier ofbasic telecommunications services.
4.2 Thedecisions andactions oftheregulatory authority shallbeimpartial withrespect toallmarket
participants.
5. Allocation andUseofScarce Resources
5.1 Hong Kong shall maintain measures toallow objective, timely, transparent andnon-
discriminatory allocation anduseofscarce resources which mayinclude radio frequencies,
numbers andrights ofway.