SERVICES: SECTOR BY SECTOR

Telecommunication services

Telecommunication services are the core of the digital economy, enabling e-commerce in goods and services. Extensive trading is undertaken via commercial presence by a foreign company (mode 3 under the General Agreement on Trade in Services) and cross-border supply (mode 1 under the GATS). The sector accounts for over US$ 1.6 trillion in revenue, of which 65 per cent is from mobile services. Proving resilient during the 2020-21 pandemic, telecommunications have also supported the uptake of many other services and their capacity to meet the dramatic increases in demand for online activity as a result of COVID-19.

Telecommunication services include all forms of voice telephony and data transmission as well as leasing of circuit capacity (considered “basic” telecommunications) and a host of messaging and online information and data retrieval and processing services (considered value-added telecommunications). Such services are covered by the sector regardless of the technology used to supply them. Having accommodated computer and related technologies in recent decades, the sector covers some services (especially value-added services) that today are nearly indistinguishable from certain activities included in the GATS classification for the computer and related services sector.

Sectoral trade rules

The trade rules that apply to telecommunications services include the framework articles of the GATS, which contain the principles for trade in all services. In addition, the GATS contains an Annex on telecommunications whose rules apply to all WTO members. The Annex provides guarantees for reasonable access to and use of public telecommunications in a given market by suppliers of all services benefiting from commitments scheduled by the member concerned.

Another key element of telecom disciplines — the Reference Paper — is a set of regulatory principles that is legally binding only for those WTO governments which have committed to it by appending the document, in whole or in part, to their schedules of commitments. The Reference Paper provided a blueprint for telecommunications reform, at a time when competition was being introduced, that largely reflected “best practice” in sector regulation at the time, and in large part continues to do so today.

Current market access commitments and most-favoured-nation (MFN) exemptions

Commitments in telecommunications services were first made during the Uruguay Round (1986-94), mostly in value-added services. In post-Uruguay Round negotiations (1994-97), WTO members negotiated basic telecommunications services. Since then, commitments have been made by new members upon accession to the WTO or unilaterally by governments who have chosen to do so.

Currently, 123 WTO members have made market access and national treatment commitments on trade in telecommunications services. This includes commitments to allow the establishment of new telecoms companies, foreign direct investment in existing companies and cross-border transmission of telecoms services. In addition, 105 members have committed to the regulatory principles spelled out in the Reference Paper.

For consolidated information on countries’ commitments and exemptions on telecommunications services go to the services database.

If you are seeking the commitments of a specific WTO member, go to “Jump to a specific sector for a given Member”, select telecommunications services from the sector dropdown list, select the member of interest and click “go”. To see a table showing which members have made commitments in telecommunications services, choose “See which Members have made commitments in a specific sector”, select Telecommunications services and click “go”.

Telecommunications in WTO negotiations

Following the extensive negotiations in the 1990s, telecommunications, like other services, were included in the Doha Round of services negotiations.

In the Doha Round, which began in January 2000, improved market opening and new commitments to "bind" more recent reforms in telecommunications were under negotiation. At least 39 members had offered to improve their existing commitments or to commit for the first time in the sector.

Improving telecommunications commitments remains a priority and is likely to be pursued in any future negotiations.

Key events

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Additional information 

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  • Secretariat background notes on telecom services (Document code S/C/W/* and keyword “Telecommunication Services and Background Note”)  > search   > help

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