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computer service classifications outdated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