Convergence What are the implications for the GATS

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ConvergenceWhat are the implicationsfor the GATS

• Lee Tuthill
• WTO

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?
Can the GATS accommodate convergence?
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Perspective

• Focus on convergence of telecom technologies
• And some regulatory aspects of telecom
  convergence
• In GATS, telecom computer convergence addressed
  partly, but grey areas remain
• Little or no GATS guidance yet on telecom /
  audio-visual convergence

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What will we consider?

• GATS Annex on Telecoms
• Schedules of Commitments
• Classification Schemes
• Chairmans Note on scheduling
• Reference Paper
• GATS framework articles

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Is it technology neutral?

• GATS Telecom Annex - YES
• And, its benefits are available to suppliers of
  all types of services
• But, its obligations relate to public telecom
  transport networks and services that are ...
• basic and public
• Do these concepts recognize regulatory
  convergence?

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Basic telecoms

• Technological and commercial integration, and
  competition, can make the distinction less
  relevant
• The Annex definition ...
• real-time transmission of customer-supplied
  information between two or more points without
  any end-to-end change in the form or content

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Public telecoms

• The concept designation of public service
  is also less critical in a competitive
  environment
• The Annex definition ...
• required, explicitly or in effect, by a Member
  to be offered to the public generally

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Is it technology neutral?

• Schedules Classification schemes
• GATS classification (W/120) NO
• voice vs. data? names technologies?
• UN Central Product Classification NO
• public vs. (leased) business service?
• Also, distinction between telecom some computer
  service classifications outdated

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Is it technology neutral?

• The Chairmans Note on scheduling
• Designed to adapt the GATS classification (W/120)
  to evolution of technologies
• ... as well as a number of regulatory and other
  developments
• allows distinctions ... but importantly,
  confirms when commitment is to all possibilities
• But ... If maintaining reserved services, the
  distinctions are blurring definitions evolving

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?
Chairmans Note services and categories matrix
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Example Monopoly on fixed voice infrastructure
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Is it technology neutral?

• Schedules The Reference Paper
• Yes ... in terms of technologies
• Not restricted to any particular type of telecom
  technology or basic telecom service
• But ... its most important obligations on
  dominant operators are on basic and public
  services
• Yet, its benefits accrue only to basic services
  Is this realistic today?

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Is it technology neutral?

• GATS framework articles - YES
• GATS has disciplines on domestic regulation such
  as licensing, licensing requirements and
  technical standards
• Regulatory neutrality is not prevented ... nor
  is it required
• (Likewise for Reference Paper licensing
  provisions)

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Implications?

• Even if full market access is committed on all
  forms of telecom services ...
• Regulatory requirements may differ substantially
  based on service or technology
• Licencing or technical requirements may
  discriminate between services technologies
• Is this sustainable as suppliers increasing
  integrate their offerings?

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? Can GATS accommodate convergence?

• GATS telecom negotiators took important steps
  that can help adapt to convergence
  (e.g. Chairmans Note and Reference paper)
• But co-existence of old new classification
  schemes lends to uncertainty some terms used
  are increasingly difficult to apply
• GATS negotiators may risk falling behind national
  trends in facing challenges posed by convergence