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Implications of GATS for Convergence: Addressing Regulatory Aspects of Telecom and Computer Convergence

This article explores the implications of GATS for convergence in the telecom industry, particularly focusing on regulatory aspects. It examines the GATS Annex on Telecoms, schedules of commitments, and classification schemes, discussing whether GATS is technology neutral and can accommodate convergence. The article also highlights the challenges faced by GATS negotiators in keeping up with national trends.

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Implications of GATS for Convergence: Addressing Regulatory Aspects of Telecom and Computer Convergence

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  1. ConvergenceWhat are the implicationsfor 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. Is it technology neutral? Schedules: Classification schemes • GATS classification (W/120)NO voice vs. data? names technologies? • UN Central Product ClassificationNO public vs. (leased) business service? • Also, distinction between telecom & some computer service classifications outdated

  9. 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

  10. ? Chairman’s Note services and categories matrix

  11. Example: Monopoly on fixed voice & infrastructure

  12. 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?

  13. 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)

  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

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