Convergence
What are the implications
for the GATS
Lee Tuthill
WTO
?
Can the GATS
accommodate
convergence?
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
What will we consider?
GATS Annex on Telecoms
Schedules of Commitments
 Classification Schemes
 Chairman’s Note on scheduling
 Reference Paper
GATS framework articles
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?
“Basic” telecoms
 Technological and commercial
integration, and competition, can
make the distinction less relevant
 The Annex definition ...
“real-time transmission of customersupplied information between two or
more points without any end-to-end
change in the form or content ”
“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”
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computer service classifications outdated
Is it technology neutral?
The Chairman’s 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
CHAIR NOTE
CATEGORIES
GEOGRAPHIC MARKET
Local
Long
distance
International
MEANS OF SUPPLY
Facilitiesbased
W/120
SERVICES
Resalebased
USER-BASE
For public
use
For non
public use
TYPE OF TECHNOLOGY
Wirebased
Wireless
mobile
terrestrial
mobile
satellite
fixed
satellite
Voice telephone
Packet-switched
data transmission
Circuit-switched
data transmission
Private leased
circuit services
Electronic mail
Voice mail
On-line
information and
data base retrieval
Electronic data
interchange
Enhanced/ valueadded facsimile
Code & protocol
conversion
On-line
information and/or
data processing
?
Other
Chairman’s Note services and categories matrix
CHAIR NOTE
CATEGORIES
GEOGRAPHIC MARKET
Local
MEANS OF SUPPLY
Long
distance
International
Facilitiesbased
Resalebased
N
Y
Y
N
Y
Y
N
Y
Y
N
N
N
N
Y
Y
N
Y
N
Y
N
Y
N
N
N
Y
USER-BASE
For public
use
For non
public
use
Wirebased
N
Y
Y
N
Y
Y
Y
Y
Y
N
Y
N
Y
N
Y
W/120
SERVICES
Voice telephone
Packet-switched
data transmission
Circuit-switched
data transmission
Private leased
circuit services
Electronic mail
Voice mail
On-line
information and
data base retrieval
Electronic data
interchange
Enhanced/ valueadded facsimile
Code & protocol
conversion
On-line
information and/or
data processing
TYPE OF TECHNOLOGY
Wireless
mobile
terrestrial
mobile
satellite
fixed
satellite
Y
Y
Y
Y
Y
Y
N
N
N
N
Y
N
Y
N
N
Example: Monopoly on fixed voice & infrastructure
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?
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)
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?
? Can GATS accommodate
convergence?
GATS telecom negotiators took important
steps that can help adapt to convergence
(e.g. Chairman’s 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