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WTO reaches agreement on basic telecommunications
The negotiations on basic telecommunications conducted under the auspices of the World Trade Organisation (WTO), ended in Geneva yesterday (Tuesday) with an agreement reached on opening up markets for basic telecommunications services.
The agreement will come into effect on January 1, 1998. However, participants in the negotiations will have the flexibility to make final adjustments to their commitments between January 15 and February 15, 1997, following further consultations on a few outstanding issues which arose very late in the negotiations.
Participants agreed that these issues needed to be studied more thoroughly. A special group will be formed to carry out such consultations which will commence within 90 days and will complete by February 15, 1997.
A total of 39 WTO members (European Union counted as one), accounting for over 80% of the global value of basic telecommunications services, have made various levels of binding commitment to open their basic telecommunications markets to competition.
"We are very pleased that an agreement on the liberalisation of basic telecommunications services has been achieved in the WTO," a government spokesman said.
"Basic telecommunications is a very large market globally (estimated at over US$500 billion p.a.) with enormous potential for Hong Kong services suppliers," he noted.
The agreement reached under the negotiations will provide additional impetus to the global trend of liberalisation in telecommunications markets, and will enhance the opportunities for telecommunications operators to enter lucrative foreign markets.
The consumer will also benefit significantly from the liberalisation of the basic telecommunications market. The introduction of competition into the market is expected to foster more rapid technological advancement, reduce service charges, and provide customers with more choices.
Hong Kong's commitments made under the negotiations include the opening up of its markets for domestic services in full including fixed network and mobile services, and for a range of international services including call-back, self-provision of external satellite circuits, and mobile satellite services.