1. Convergence What are the implications for the GATS Lee Tuthill WTO

2. ? Can the GATS accommodate convergence?

3. 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

4. What will we consider?  GATS Annex on Telecoms  Schedules of Commitments  Classification Schemes  Chairman’s Note on scheduling  Reference Paper  GATS framework articles

5. 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?

6. “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 ”

7. “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”

8. 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  Also, distinction between telecom & some computer service classifications outdated Is it technology neutral?

9. 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 Is it technology neutral?

10. CHAIR NOTE CATEGORIES W/120 SERVICES GEOGRAPHIC MARKETMEANS OF SUPPLYUSER-BASETYPE OF TECHNOLOGY LocalLong distance Inter- national Facilities- based Resale- based For public use For non public use Wire- based 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/ value- added facsimile Code & protocol conversion On-line information and/or data processing Other Chairman’s Note services and categories matrix ?

11. CHAIR NOTE CATEGORIES W/120 SERVICES GEOGRAPHIC MARKETMEANS OF SUPPLYUSER-BASETYPE OF TECHNOLOGY LocalLong distance Inter- national Facilities- based Resale- based For public use For non public use Wire- based Wireless mobile terrestrial mobile satellite fixed satellite Voice telephone N N N N N N N Y Y Y N Packet-switched data transmission Y Y Y N Y Y Y Y Y Y N Circuit-switched data transmission Y Y Y N Y Y Y Y Y Y N Private leased circuit services N N N N N N N N N N N Electronic mail Voice mail On-line information and data base retrieval Electronic data interchange Enhanced/ value- added facsimile Code & protocol conversion On-line information and/or data processing Y Y Y N Y Y Y Y Y Y N Example: Monopoly on fixed voice & infrastructure

12. 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?

13. 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)

14. 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?

15. ? 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