Next Generation Networks Can the GATS Adapt? Lee Tuthill WTO ? -NGN: a more competitive landscape? -Rules? More, less or different? Competition Dominant players? Bottlenecks? Ease of market entry? Price competition? Regulation Safeguarding competition? Interconnection? Licensing? Universal access? Are they adaptable? GATS framework articles GATS Annex on Telecoms The Reference Paper Market access commitments Neutrality re: Technologies GATS Provisions do not rule out any particular technologies or means of supply from coverage of the agreement GATS Commitments Commitments can be made, and are encouraged, as neutral vis-à-vis the technologies used to supply the services Neutrality re: Measures GATS obligations, incl. Telecom Annex and Reference Paper do not specify what law or agency must implement obligations; so can be sector law/agency, competition law/agency, etc do not specify whether measures should be ex-ante or ex-post; so can adapt to light-handed approach IP networks & WTO disciplines GATS Telecom Annex – explicitly covers “reasonable and nondiscriminatory” access to and use of leased circuits Reference Paper? – interconnection defined as “linking”; a panel has ruled it is a broad concept IP networks & WTO disciplines Annex & Reference Paper Obligations? apply only to “public” & basic “transport” services... concepts losing significance Public: “required, explicitly or in effect, by a Member to be offered to the public generally” Transport: “real-time transmission of customer-supplied information between two or more points without any end-toend change in the form or content” IP networks & WTO disciplines Benefits? Benefits of the Reference Paper disciplines accrue only to basic services providers Is this realistic in an integrated IP- based environment? WTO Telecom Commitments Technology neutral? Classification schemes GATS classification (W/120) vs. data? names technologies? voice UN Central Product Classification public vs. (leased) business service? Also, distinction between telecom & some computer service classifications outdated Technology neutral? Telecom scheduling: Chairman’s Note Designed to adapt the classification to evolution of technology and regulation allows distinctions ... but most important, confirms if commitment comprehensive But ... the distinctions are blurring and terms/definitions in flux, esp. as regards liberalized vs. less liberal markets... GATS framework articles Regulation? GATS disciplines cover domestic regulation such as licensing, licensing requirements and technical standards Regulatory neutrality is not prevented ... nor is it required Likewise for Telecom Annex & Reference Paper provisions on licensing and universal service frameworks Implications? If IP-based networks & services lead to enhanced competition ... Important elements of GATS provisions could become less critical General competition policy and ex-ante measures could be used The WTO rules become a “fall-back”? ? Can GATS adapt ? Most provisions are normally cast as overarching, adaptable principles Negotiators took important steps to accommodate technological and regulatory developments Classification schemes, some terms and definitions are a possible weak point