Revised Report by the Secretary-General

Policy and Regulatory Issues Raised by
Global Mobile Personal Communications by Satellite (GMPCS)

Introduction

Part I - Global Mobile Personal Communications by Satellite

Part II - Overview of Policy and Regulatory Issues Raised by GMPCS

Part III - Draft Opinions Concerning GMPCS

Annexes

Introduction

1. The ITU World Telecommunication Policy Forum (WTPF) was established by Res. 2 of the Kyoto Plenipotentiary Conference. Its terms of reference include the following provisions:

• its purpose is to provide a forum where ITU Members as well as entities and organizations other than Administrations authorized to participate in the activities of the Union can discuss and exchange views and information on telecommunication policy and regulatory matters;
• although the WTPF shall not produce prescriptive regulatory outcomes or outputs with binding force, it shall prepare reports and, where appropriate, opinions for consideration by Members and relevant ITU meetings;
• the WTPF shall be convened on an ad hoc basis to respond quickly to emerging policy issues arising from the changing telecommunications environment;
• it should be convened once or twice before the 1998 Plenipotentiary Conference in conjunction with other ITU conferences and meetings;
• the ITU Council shall decide on the duration, date, venue, agenda and themes of the WTPF.

2. By Resolution 1083, the 1995 session of the ITU Council decided to convene the first WTPF in Geneva from 21-23 October 1996, immediately after the World Telecommunication Standardization Conference, to discuss the theme 'Global Mobile Personal Communications by Satellite' with the following agenda;

"To discuss and exchange views and information on the following policy and regulatory issues raised by the introduction of global mobile personal communications systems and services by satellite:

• the resulting globalization of telecommunication services and the scope for international cooperation in this context;
• the role of such systems in the provision of basic telecommunication services in developing countries, LDC's, and in rural and remote areas;
• measures necessary to achieve transborder use of such mobile terminals;
• policy and regulatory issues relevant to such systems and services, in particular those relating to interconnection, with a view to achieving equitable and standard conditions of access.

and to draw up a report, and if possible opinions, for consideration by the Members and relevant ITU meetings."

3. In accordance with Resolution 1083, this report has been prepared to serve as the sole document of the Forum, using the following procedure.

• Circular Letter No. 208 of 15 September 1995 invited ITU Members and members to make contributions to be incorporated in the report. Some 30 contributions were received, 14 from State Members and 16 from Sector Members.
• On the basis of these contributions, a draft report was prepared and circulated to contributors for comment on 10 June 1996.

• The draft report was modified and finalized in accordance with contributors' comments and sent to ITU State Members and Sector Members at the start of August;
• The revised report has been prepared to incorporate new contributions subsequently received from the ITU membership, proposals made as a result of regional preparatory meetings, and revised Draft Opinions prepared by an informal group of experts, each of whom has been involved in preparations for the Policy Forum in his or her own country and region.

4. In addition to this report, it is anticipated that the following ITU documents, publications and meetings may assist the membership in preparing for the WTPF:

• the Briefing Report and the Chairman's Report of the third ITU Regulatory Colloquium on GMPCS;
• two reports on GMPCS by the World Telecommunications Advisory Council which were distributed to the ITU membership by Circular-letter No. 28 of 4 April 1996;
• presentations organized by the ITU Secretariat in conjunction with AF­RTDC 96 and Americas TELECOM 96;
• the preparatory meeting for the Asia-Pacific region convened by the Asia-Pacific Telecommunity in Singapore on 4 & 5 June, 1996;
• a special session on GMPCS held at the AFCOM 96 conference in Washington D.C. on 7 June, 1996:
• discussions at the 1996 session of the ITU Council;
• the CITEL PCC-III meeting held in Brasilia, 12-16 August;
• the preparatory meeting for the Africa region convened by Senegal in Dakar, 18­20 September 1996 in collaboration with ITU/BDT, PATU, and RASCOM;
• the special GMPCS information session which will take place the day before the Policy Forum.

5. The report has been organized into the following three Parts so that it corresponds to the proposed structure and timetable of the Policy Forum and the associated GMPCS information session which will take place the day before the forum begins. The relationship between the structure of the WTPF, the items on its agenda, and the organization of this report is displayed in Table A as follows:

Part I – Global Mobile Personal Communications by Satellite (GMPCS)

6. As stated in paragraph 2 above, in accordance with Kyoto Resolution 2, the 1995 ITU Council decided that the policy and regulatory issues raised by the introduction of "global mobile personal communications systems and services by satellite", or GMPCS, would be the theme of the first WTPF.

7. The acronym "GMPCS" was first used in the reports of the Third ITU Regulatory Colloquium to refer to mobile satellite systems operating in non-geostationary orbits and offering voice communications and other narrow-band services on a global basis using frequencies above 1 GHz. Systems of this kind are popularly known as "Big LEOs", even though not all of them use satellites in low earth orbits.

8. Several contributions have recommended that the scope of the Policy Forum should be broadened to include all systems providing telecommunication services directly to end-users from a constellation of satellites on a trans-national, regional or global basis. This recommendation is based on the recognition that similar policy and regulatory issues are raised by all such systems.

9. From this perspective, the Policy Forum would consider a common set of policy and regulatory issues raised by the following kinds of satellite systems:

• existing and planned global and regional satellite systems providing mobile personal communications voice and low-speed data services and operating in the geostationary orbit (GEO MSS);
• existing and planned satellite systems operating in non-geostationary orbits and providing mobile narrow-band services, excluding voice, on a global or regional basis (i.e. " Little LEOs" or "Little" NGEO MSS);
• satellite systems planned to come into operation in the next two to five years in order to offer narrowband mobile services, including voice and relatively low-speed data, on a global or regional basis and to operate in non-geostationary orbits – including Low Earth Orbits (LEOs), Medium Earth Orbits (MEOs), and Highly Inclined Elliptical Orbits (HEOs) – (i.e. NGEO MSS);
• satellite systems planned to come into operation in the next five to ten years in order to offer fixed and transportable, multimedia broadband services on a global or regional basis and to operate either in geostationary or non-geostationary orbits (GEO and NGEO FSS).

10. In spite of their different technical characteristics and different service offerings (i.e. fixed vs. mobile, narrowband vs. broadband), all these systems share certain characteristics that distinguish them from traditional intergovernmental organizations providing satellite services and give rise to essentially similar policy and regulatory issues with respect to the items on the WTPF agenda. These are summarized in Table B.

11. To provide a comprehensive basis for discussion of the policy and regulatory issues raised by GMPCS, it is recommended that the Policy Forum consider GMPCS in the broader view outlined in Section 9.

Part II – Overview of Policy and Regulatory Issues Raised by GMPCS

A. The Globalization of Telecommunication Services Resulting from GMPCS and the Scope for International Cooperation in this Context

12. Contributions to the Policy Forum have stressed the many benefits that will result from the globalization of telecommunication services through GMPCS – benefits which in many cases are already being provided by existing mobile satellite systems.

• In a general sense, it is envisaged that these systems will ultimately provide a complete range of narrow- and broad-band communication services at any time, in any place, everywhere in the world. As such, they will constitute an essential component of the "Global Information Infrastructure" – in fact, they will ensure that it really is global.
• Enterprises which operate on a trans-national or global basis are expected to be early adapters of GMPCS and to benefit from its services, particularly from the availability of mobile applications in rural and remote areas, in both developed and developing countries. Apart from telecommunications itself, the broadcasting, transportation, tourism, energy, agriculture, forestry and mining industries are examples of potential early beneficiaries of GMPCS.
• The direct benefits which these organizations would derive from GMPCS in terms of increased efficiency, productivity and competitiveness, as in the enhancement of telecommunications services in general, would indirectly benefit the economies in which they operate through effects such as increased investment, employment and exports.
• International and regional organizations that operate "without frontiers" may also be early beneficiaries of GMPCS services, particularly when involved in disaster mitigation and relief and other humanitarian actions in areas where conventional communication and information services are either non-existent or have broken down.
• Apart from their trans-national, regional or global applications, GMPCS services may, if they are affordable, bring benefits within national jurisdictions, particularly in countries that have large land masses in relation to their population and/or have poorly developed telecommunication infrastructures. The principal benefits could include: support for economic development, particularly in the industry sectors mentioned above; provision of at least basic telecommunication services in under-served areas; and the extension of government and social services to rural and remote areas.

13. At the same time, some contributions have expressed concerns about the possible impact of GMPCS on national sovereignty and on national telecommunication operators. These concerns have been expressed mainly by developing countries and will be discussed in more detail in the following section of this report.

14. There is general agreement in contributions to the WTPF that cooperation both at the international and regional levels is needed to facilitate the development and deployment of GMPCS so as to ensure that the benefits of GMPCS are maximized, while at the same time taking into account the sovereign rights of countries. It is further agreed that this cooperative course of action should:

• be based on a shared vision of the benefits of GMPCS;
• involve all GMPCS stakeholders, including national regulators, GMPCS system operators and service providers, and GMPCS users;
• be pursued at the national level through the coordination of national GMPCS policies and regulation, at the regional level through activities of the various regional telecommunication organizations, and at the international level through the activities of the ITU.

15. In order to capture this shared vision, it has been proposed that one of the outputs of the Policy Forum should be an Opinion along the lines of Draft Opinion No. 1

16. In order to provide a foundation for international cooperation in the development and deployment of GMPCS, a number of contributions proposed that the Policy Forum should adopt a set of voluntary principles which could guide national regulators and be applied at their discretion as they seek to develop GMPCS policies and regulations for application within their national jurisdictions (hereinafter "voluntary principles"). These principles would not affect the sovereign right of States to regulate their telecommunication, since they would neither be prescriptive nor have binding force.

17. Some of the principles which have been proposed in members' contributions are general and would apply to all of the items on the WTPF agenda. Others would apply more specifically to the scope for international cooperation on GMPCS, to the situation of developing countries, and to the licensing and regulation of GMPCS services and terminals.

18. It has been proposed that one of the outputs of the Policy Forum should be an Opinion embodying these voluntary principles, along the lines of Draft Opinion No. 2

19. It has also been suggested that at least some governments might want to give more formal expression to some or all of these principles by entering into a memorandum of understanding or mutual recognition group agreement.

20. Many contributions to the Policy Forum made reference to the important role that the ITU Radiocommunication, Standardization and Development Sectors are already playing in facilitating international cooperation in the development of GMPCS. In addition to noting the importance of pursuing work which is already underway, some contributions proposed that the ITU undertake new activities to assist in the deployment of GMPCS systems.

21. It has been proposed that one of the outputs of the Policy Forum should be an Opinion on the current activities of and the essential tasks that must be undertaken by the ITU in the introduction of GMPCS, along the lines of Draft Opinion No. 3

22. In light of these proposals, in relation to this issue, the Policy Forum may wish to consider adopting Opinions which embody:

• a vision of the role that GMPCS could play in the development of global telecommunications;
• a set of voluntary principles to guide national policy-makers and regulators, as well as GMPCS system operators and service providers;
• guidelines for future work on GMPCS by the three ITU Sectors.

B. The Role of GMPCS Systems in the Provision of Basic Telecommunication Services in Developing Countries, LDCs and in Rural and Remote Areas

23. Many contributions to the Policy Forum drew attention to the very important role that GMPCS could play in developing countries, LDCs and in rural and remote areas by:

• extending the availability of basic telecommunication services;
• providing access to the GII;
• providing emergency communications;
• facilitating access to government services;
• supporting economic and social development.

24. Some contributions also drew attention to a number of issues which are of particular concern to some developing countries.

• Concern was expressed that because GMPCS systems are primarily privately-owned, developing countries may not have an opportunity to participate in the development of GMPCS systems and services, in the same way that they do in traditional international satellite systems.
• Without developing country participation, there was concern that the telecommunication products and services offered by GMPCS would not correspond to the telecommunication needs of developing country consumers or their ability to pay.
• Concern was also expressed that the unauthorized provision of GMPCS services in developing countries could result in bypass of the PSTN and loss of revenues for incumbent developing country operators.
• In the longer term, concern was expressed that developing country networks would be unable to compete with future-generation broadband GMPCS systems and services.
• Developing countries were concerned about the affordability of such services. They believe that GMPCS operators and service providers should work in close consultation with national regulators on tariff and user price structures to promote the widest use of GMPCS services. Special service charges may be warranted for developing countries and rural/remote areas.

25. On the basis of the contributions received and the results of regional preparatory meetings, it does not appear that the concerns of developing countries with respect to GMPCS require a special set of voluntary principles to guide national policy-makers and regulators in these countries, that would be different from those applied in developed countries. However, a number of contributions proposed that within the framework of these general principles, the circumstances of some developing countries (e.g. weak telecommunication infrastructures, regulatory structures and economies) require approaches to GMPCS service provision that are tailored to meet the needs of these countries, and that it is in the interest of policy-makers and regulators in these countries to develop these approaches in cooperation with GMPCS system operators and service providers. The Draft Opinions presented in Part III of this report attempt to take account of these concerns, particularly as they were expressed in the reports of regional preparatory meetings.

26. Contributions have also suggested that regional telecommunication organizations could support the implementation of GMPCS by:

• disseminating relevant information on GMPCS to developing countries within their region;
• ensuring that the special concerns of developing countries in their region are addressed by the ITU;
• studying the social and economic impact of GMPCS on developing countries in their region.

27. In addition to these cooperative courses of action, contributions to the Policy Forum have identified actions that should be taken by meetings and programmes of the ITU's Telecommunication Development Sector to assist developing countries, particularly the LDCs. These actions include:

• providing information on GMPCS;
• assistance with issues related to the licensing and regulation of GMPCS systems, services and terminals;
• assistance in the areas of frequency management, tariffs, operations, and network integration in relation to GMPCS.

28. In relation to this issue), it is therefore recommended that the Policy Forum consider adopting Draft Opinion Nos. 2, 3 and 5

C. Measures Necessary to Achieve Transborder Use of GMPCS Terminals

29. This topic was very extensively discussed in contributions to the Policy Forum.

• From the point of view of GMPCS operators, the value of the services they offer and the benefits to countries which have authorized the provision of these services will depend to a significant extent on the ease with which their customers can use GMPCS terminals anywhere in the world, and on the costs associated with "global roaming". Their contributions suggest that many improvements can be made in this respect.
• From the point of view of national regulators in countries which have authorized GMPCS services, it is important to ensure that the use of GMPCS terminals does not cause harmful interference to other radio equipment or harm to the telecommunications network. The development of trans-national systems raises new challenges in this connection.

30. Contributions to the Policy Forum identified a number of impediments to the transborder use of GMPCS terminals from these two points of view, and proposed actions which could be taken to improve the situation in the interests of both GMPCS operators and national regulators. These include:

• the type approval of terminals by national regulators on the basis of international standards;
• innovative licensing schemes (e.g. "blanket licensing");
• reasonable license fees;
• the conclusion of agreements between countries on a bilateral, regional or even global basis to provide mutual recognition of terminals that have received type approval within participating countries or by means of a mutual recognition group agreement;
• the establishment of reasonable customs requirements and import duties when GMPCS terminals are brought into a country.

31. The majority of contributions to the Policy Forum expressed the view that (except for normal interconnect and service charges) tariffs, custom duties, and licensing fees should be minimized, or even eliminated, in order to reduce impediments to transborder use and to enhance the early introduction of GMPCS.

32. To deal with these issues, it has been proposed that the Secretary-General convene an informal group of experts drawn from Administrations, operators and other interested parties to initiate action leading to a framework of agreements on the free circulation of GMPCS terminals, covering such matters as type approval, licensing, marking and customs arrangements, along the lines of Draft Opinion No. 4

33. Contributions to the Policy Forum also noted that there is already a considerable amount of work underway in the ITU Radiocommunication and Standardization Sectors that is related to these issues. In addition, some contributions proposed the possibility of a new role for the ITU as the international registry of GMPCS type approvals and mutual recognition agreements.

34. In relation to this issue, it is therefore recommended that the Policy Forum consider adopting Draft Opinion Nos. 2 and 4

D. Policy and Regulatory Issues Relevant to GMPCS Systems and Services, in Particular those Related to Interconnection, with a View to Achieving Equitable and Standard Conditions of Access

35. There has been considerable discussion of this agenda item, not only in contributions to the Policy Forum, but in other fora such as the World Trade Organization (WTO). In addition to this report, participants may find it worthwhile to consult the following reference sources:

• Resolutions of previous ITU conferences (e.g. Resolution 70 of WARC­92 and Resolution 25 of WRC­95);
• the reports of the Third ITU Regulatory Colloquium;
• the WTAC reports that were distributed to all ITU Members and members in Circular­letter No. 28 of 4 April 1996.

36. As in the case of the previous agenda item, there are different points of view on the main issues related to the licensing and regulation of GMPCS systems and services.

37. From the point of view of GMPCS system operators and service providers, dealing with the fact that each national jurisdiction has its own set of policies and regulations regarding such matters as the licensing of systems, gateways, and services, and interconnection with the public telecommunications network, represents an important part of the cost of doing business and a substantial element of risk. In their contributions, GMPCS system operators, service providers and terminal suppliers have indicated the following:

• they would like to see a significant harmonization of national policy and regulatory approaches in these areas;
• in order to maximize their chances of success in what is expected to be a highly competitive business, they would like open, equitable and non-discriminatory access to national markets for all GMPCS operators;
• given the high financial risks associated with GMPCS in its start-up phase and the limited market penetration which they expect in the early days of service provision, they would like GMPCS regulation to be as light and as transparent as possible.

38. Some regulators, particularly from developed countries, appear ready to endorse the regulatory policies outlined in the previous section, provided they are accommodated through a "non-prescriptive, non-binding" course of cooperative action. In their contributions to the Policy Forum, they have proposed that this could be done through the voluntary adoption by national policy-makers and regulators of a common set of principles covering matters such as:

• GMPCS system, gateway and service licensing;
• the scope of GMPCS regulation and competition; and
• interconnection with the PSTN.

39. Other regulators, particularly from developing countries, have expressed reservations about a fully open, competitive approach to the introduction of GMPCS in their jurisdictions.

• Some of these are the general concerns enumerated in paragraph 24 of this report (e.g. the lack of developing country participation in the ownership of GMPCS, the threat that unauthorized use of GMPCS will result in significant by-pass of the PSTN with a resulting loss of revenues).
• In addition, other concerns have been expressed about the potential implications of adopting an open, competitive approach to the licensing and regulation of GMPCS in other areas of national telecommunications policy (e.g. What would be the impact of such an approach on a country's general policy regarding competition in the provision of telecommunication services? How would it affect policies regarding universal service obligations? How could national security and users' privacy be protected?).

40. In response to these concerns, some contributions suggested that it would be good business practice for GMPCS operators, service providers and terminal equipment suppliers to engage policy makers and regulators in discussions to learn about the varying policy and regulatory conditions prevailing in different countries and to offer constructive proposals as to how these conditions can be addressed when introducing GMPCS in each country.

41. Taking these different perspectives into account, some regulators from both developed and developing countries expressed the view that whilst the unique features of GMPCS require increased international and regional cooperation, it was likely that GMPCS would be licensed in their countries within existing or planned frameworks, e.g. for cellular or international services. Following from regulators' obligation to ensure equal treatment of all service providers, they were of the view that GMPCS should be regulated in the same way as other comparable services.

42. In responding to the different points of view on this agenda item that have been expressed in contributions to the WTPF, the fundamental challenge facing Policy Forum participants will be to identify a set of voluntary principles which strike an appropriate balance between

• the right of sovereign nations to regulate their telecommunications within the framework of their national policies, and
• the need expressed by GMPCS system operators and service providers to be granted open, fair and competitive access to national markets under transparent and non-discriminatory regulatory procedures.

43. As well as identifying the need for such a set of voluntary principles related to the licensing and regulation of GMPCS systems and services, contributions to the Policy Forum have drawn attention to a number of activities underway in the ITU Standardization Sector which will facilitate the actions of national regulators in this regard. These activities include work on:

• the standardization aspects of interconnection and network access;
• tariffing principles and methodologies.

44. In relation to this issue, it is therefore recommended that the Policy Forum consider adopting Draft Opinion Nos. 2, 3 and 5

Part III – Draft Opinions Concerning GMPCS

The draft opinions presented in this part of the report have been prepared with the assistance of an informal group of experts, each of whom has been involved in preparations for the Policy Forum in his or her own country and region. Collectively, this group represents a broad cross-section of ITU Member States from both developed and developing countries and different regions of the world.

The draft opinions prepared by this group represent a 'best effort' to harmonize and synthesize the contributions of ITU State Members and Sector Members to the Policy Forum in a form which is at once compact, comprehensive and manageable within the limited time available to the forum.

The Globalization of Telecommunication Services and
Global Mobile Personal Communications by Satellite (GMPCS)

The First World Telecommunication Policy Forum (Geneva 1996)

considering

that, pursuant to the basic provisions of the Constitution of the ITU, the purposes of the Union include:

• the maintenance and extension of international cooperation between all Members of the Union for the improvement and rational use of telecommunications of all kinds,
• promotion of the development of technical facilities and their most efficient operation with a view to improving the efficiency of telecommunication services, increasing their usefulness and making them so far as possible generally available to the public,
• promotion of the extension of the benefits of the new telecommunication technologies to all the world's inhabitants

recognizing

• that the emergence of the global information economy and society results from technological progress and the globalization of telecommunication services;
• that rapid changes in the telecommunication environment and technological progress have led to the development of new telecommunication concepts, including mobile-satellite networks intended to provide global coverage through portable, hand-held terminals;
• that such services will be provided increasingly on a trans-national basis;
• that the development of harmonized policies for global telecommunication systems and the nature of national regulatory responses to such systems are among the most important and difficult new issues facing the ITU and its membership;
• that new technologies such as those used by GMPCS systems promise to extend some of the benefits of such systems to developing countries as part of an overall objective of achieving sustainable global development;
• that a range of GMPCS systems will provide mobile or fixed services using non-geostationary orbits (NGSO) and the geostationary orbit (GSO);

recognizing further

• that low capacity GMPCS systems are already being deployed and entered into service;
• that additional higher capacity GMPCS systems are currently being developed to provide high capacity fixed and mobile information services to the world community in the next several years;
• that in addition to the systems currently being developed others will probably be introduced to meet emerging global and domestic telecommunication requirements;

conscious

• that GMPCS systems built and financed largely by private investment offer advanced telecommunication services that would otherwise be cost prohibitive to develop or operate by many Administrations especially those of developing countries;
• that while GMPCS systems provide telecommunication infrastructure opportunities to the global community, particularly where terrestrial infrastructures are limited or non­existent, utilization cost should be set at a level that would make this service widely available, especially to developing and least developed countries;
• that GMPCS systems are being designed with a variety of access technologies and capabilities;

conscious further

• that the existence of multiple GMPCS systems creates competition that should reduce costs and increase service options;
• that domestic providers of GMPCS services in each country should contribute to the creation of jobs and economic growth;
• that past experience has shown that new telecommunication services, such as cellular, have substantial growth and revenue generation potential which benefits the domestic provider, the system operator and the domestic public network;
• of broad support given to the development of GMPCS systems by past ITU conferences;

is of the view

1. that globalization of telecommunication services will continue and will benefit the user;
2. that early implementation of GMPCS systems would offer the potential for further telecommunications development for all countries;
3. that, from the practical point of view, the current GMPCS system designs and service features will be those that will be available in the near future;

invites

1. national regulatory authorities, system developers and potential users to work cooperatively within the ITU to facilitate the early introduction of GMPCS;
2. the Secretary­General, subject to the availability of funds, to provide periodic information reports to the membership regarding the introduction and operation of these new GMPCS systems.

The Shared Vision and Principles for
Global Mobile Personal Communications by Satellite (GMPCS)

The First World Telecommunication Policy Forum (Geneva, 1996),

recognizing

• the benefits of Global Mobile Personal Communications by Satellite (GMPCS), particularly to developing countries and remote areas;
• of the sovereign right of each member to regulate its telecommunications;

conscious

that these benefits would be achieved at the earliest opportunity through international cooperation, including through the ITU, in facilitating the early introduction of GMPCS;

recognizing further

• that a variety of GMPCS systems are in the process of development and implementation;
• that GMPCS operators expect to enjoy active ownership participation by entities from many countries and have established many national partnerships;
• that these GMPCS operators are actively engaged with many national authorities around the world regarding licensing and service conditions;

believing

that timely action by national regulatory authorities in licensing GMPCS systems will go far to promote the global availability of GMPCS,

believing also

that the availability of voluntary principles will be of great assistance to national regulatory authorities in the discharge of their responsibilities;

declares

its shared vision that the benefits of GMPCS be made available on a truly global basis,

fully aware

• that the sovereign right of each state to regulate its telecommunications, as reflected in the Constitution of the ITU, applies to GMPCS, as to other telecommunication systems and services;
• that the provision of telecommunications services within or from each country using GMPCS requires authorization of the country concerned;

offers

a set of voluntary principles for national regulators to consider in making their decisions about the introduction of the GMPCS service in their countries, as follows:

Principle 1 – Early Introduction

In exercizing their sovereign rights, States may, in the context of their national priorities, wish to facilitate the early introduction of GMPCS services, in order to allow people everywhere to share in its benefits.

Principle 2 – International Cooperation

The early introduction of GMPCS and the full realization of its benefits is likely to be facilitated if national policy­makers and regulators, in developing their domestic policies, cooperate to achieve compatibility of such policies to this effect:

• action at the international and regional levels, particularly in connection with issues related to user terminal licensing and free circulation; and
• in the context of other important ITU work, acceleration and coordination of work underway in the ITU Sectors and of frequency coordination pursuant to ITU procedures.

Principle 3 – Global Service Availability

The potential of GMPCS to provide services to all areas of the world, including those currently without access to even the most basic telecommunications, is most likely to be realized by simplified regulations and practices. To this effect:

• within the limits of spectrum availability and the framework of their national telecommunications policy, national policy­makers should consider the benefits of avoiding the exclusion of GMPCS systems from their market, in order to maximize competition in the provision of GMPCS services;
• GMPCS system operators and service providers should avoid any discrimination among different countries or categories of users except where this is justified by specific technical or economic considerations.

Principle 4 – GMPCS Regulation

National regulators should, in a timely manner, consider the benefits of creating a simplified, non-discriminatory and transparent regulatory environment, particularly with respect to such matters as service license, gateway station authorization, interconnection arrangements and user terminals, in which GMPCS services are regulated only to the extent necessary and can be provided under commercially reasonable conditions which:

• foster competition between service providers,
• offer affordable prices to the customer and efficient operations to expedite the introduction of basic telecommunications services or improve access to them,

Principle 5 – Investment Participation

Opportunities for wide multinational participation in the equity ownership of GMPCS systems and services should be encouraged, so that GMPCS development is accelerated through global cooperation and partnership.

Principle 6 – Unauthorized Use

Each system operator should take steps to inhibit the use of the system in any country which has not authorized GMPCS service.

Principle 7 – User Terminals and Free Circulation

User equipment, including handsets, should be nationally approved on the basis of standards specific to each system and such other relevant international or regional standards, and licensed through general approvals of equipment types. International arrangements, (bilateral or where appropriate multilateral) should be developed to achieve compatibility in terminal approvals, facilitate unrestricted international circulation of terminals, and encourage global roaming.

Principle 8 – Universal Access

The global or near global character of GMPCS should permit the provision of basic telecommunication services particularly in those rural and remote areas which may not be reached in an economical way by other means. This is of particular interest to developing countries and may be achieved through:

• provision of capacity at reasonable cost by GMPCS operators;
• offering transit tariffs by gateway operators and others involved in the provision of GMPCS services at reasonable cost, and
• active participation of developing countries in GMPCS systems.

Principle 9 – Interconnectivity

National regulators and GMPCS operators should cooperate in ensuring interconnectivity between GMPCS systems and between these systems and public networks in order to enhance the availability, quality, and profitability of their services and to facilitate the provision of universal service, as well as competition among GMPCS systems and service providers.

invites

1. 1. national regulatory authorities to take these principles into account when licensing GMPCS operators and providing for GMPCS in their respective countries;
2. 2. GMPCS system operators and service providers to take these principles into account in operating their systems.

Essential Studies by ITU to Facilitate
the Introduction of Global Mobile Personal
Communications by Satellite (GMPCS)

The First World Telecommunication Policy Forum (Geneva, 1996)

recognizing

• that important technical and regulatory provisions were adopted by WARC-92 and WRC-95 permitting the implementation of Global Mobile Personal Communications by Satellite (GMPCS);
• that the ITU Sectors should undertake further studies to facilitate the introduction of GMPCS on a truly global basis;

invites the three ITU Sectors

each for matters within its competence, to initiate new studies or pursue the current ones, and reach conclusions as soon as practicable, to facilitate the introduction of GMPCS on a global basis, particularly with respect to:

• in the ITU-R, compatibility between GMPCS systems and between them and other radiocommunication services,
• in the ITU-T, matters relating to standards that may be common to different GMPCS systems,
• in the ITU-D, taking account of the needs of developing countries to gain access to GMPCS, assist developing countries in taking appropriate measures to introduce GMPCS to their domestic telecommunications networks;

urges members of the Sectors concerned

to place special priority on their contributions to ITU activities relating to GMPCS in order for the ITU to be able to provide its essential expertise towards the rapid implementation of GMPCS on a global basis.

Establishment of a Memorandum of Understanding
to Facilitate the Free Circulation of
Global Mobile Personal Communications by Satellite User Terminals (GMPCS-MoU)

The First World Telecommunication Policy Forum (Geneva, 1996),

considering

• that, thanks to their global or nearly global coverage, GMPCS systems are capable of providing services in urban areas as well as in remote areas of the world and, consequently, advanced telecommunication services may become available in these areas for the benefit of all countries, and in particular, developing countries;
• that the possibility of being able to operate GMPCS terminals without geographical constraint will be one of the most attractive features for potential users;
• that, on the other hand, the possibility of being able to operate GMPCS terminals without geographical constraint raises some regulatory concerns with regard to "free circulation";
• that free circulation of user terminals needs to be considered at three levels:
• permission to carry a terminal into a visited country but not to use it;
• permission to carry a terminal into a visited country and to use it without the need for obtaining authorization in the visited country; and
• permission to place terminals on the market;
• that, as defined above, the free circulation involves matters that are normally within the competence of telecommunication regulators and others which are of the competence of other ministerial departments;
• that to facilitate levels 1 and 2 of free circulation, there may be a need for arrangements between custom administrations in order to facilitate custom clearance for users intending to use their terminals in the visited country or transiting to another country;
• that to facilitate level 3 of free circulation, it will be necessary to reach agreement on mutual recognition of type approval of terminals;
• h) that to facilitate level 2 of free circulation, it will be necessary to reach agreement on the mutual recognition of type approval and licensing of terminals;

considering also

• that this Forum has invited national regulatory authorities and system operators to work cooperatively to facilitate the introduction of GMPCS;
• that a number of voluntary principles have been identified by this Forum to facilitate the implementation of GMPCS;
• that bilateral or multilateral agreements will be required to achieve compatibility of terminal approvals to facilitate unrestricted free circulation of terminals and roaming;
• that some regional telecommunication organizations have already begun to address many of these issues;
• that these issues need to be addressed by Administrations in consultation with system operators, service providers and manufacturers;

considering further

• that some GMPCS systems are already in operation and that others will be brought into operation shortly, as of 1998;
• that urgent action is, therefore, required to facilitate the free circulation of terminals;
• that the early introduction of GMPCS services will be facilitated by a commonly agreed, and regularly reviewed and updated, GMPCS-MoU, to be used as a framework for agreements on free circulation of terminals,
• that this GMPCS-MoU should be open for signature by all Administrations, GMPCS operators, service providers and manufacturers, and operate independently from the ITU;
• that the development of a GMPCS-MoU would be a complementary and supplementary activity which should not delay or postpone any GMPCS service licensing negotiations that are being undertaken on a bilateral basis between operators and Administrations;

offers

the draft GMPCS-MoU annexed to this Opinion for comment without commitment;

requests the Secretary General

1. to circulate the annexed draft GMPCS-MoU to Administrations, GMPCS operators, service providers, manufacturers, and members of the ITU Sectors, with an invitation to comment by [22 November 1996];
2. to convene during [25 to 27 November 1996] an "informal group" of Administrations, GMPCS operators, service providers, and manufacturers to consider the comments received and finalize the GMPCS-MoU;
3. to circulate the finalized GMPCS-MoU to Administrations, GMPCS operators, service providers, manufacturers, and members of the ITU Sectors, with an invitation to sign;
4. to host the first meeting of the signatories to the GMPCS-MoU, in early 1997, in order to begin work on agreements relating to free circulation of terminals as specified in the Articles of the MoU;

encourages

Administrations, GMPCS operators, service providers and manufacturers to sign the MoU, and participate actively it its work, with a view to completing the initial set of agreements by 1 July 1997.

Draft Memorandum of Understanding to Facilitate the Free Circulation of Global Mobile Personal Communications by Satellite User Terminals (GMPCS-MoU)

Convinced of the need to reach regional, or preferably global, agreements on issues related to the three levels of free circulation of user terminals defined as follows:

• permission to carry a terminal into a visited country but not to use it;
• permission to carry a terminal into a visited country and to use it without the need for obtaining authorization in the visited country; and
• permission to place terminals on the market;

that such agreements would necessarily include the conditions pursuant to which Administrations would grant mutual recognition of type approval of terminals, mutual recognition of terminal licensing, recognize the marking of terminals, and permit terminals to be placed on the market; and that such agreements could form the basis of national regulations on these matters, or be implemented by reference;

the Parties to this Memorandum of Understanding hereby agree to cooperate, according to their respective roles and competencies on the following issues:

Article 1 – Type Approval of Terminals

The Parties shall develop agreements on the essential requirements necessary for the type approval of terminals, and the means by which such approvals shall be mutually recognized. That the type approval standards should be based on the relevant ITU-R Recommendations, and should be impartial with respect to all GMPCS technologies, and without reference to performance or quality of service standards.

Article 2 – Licensing of Terminals

The Parties shall develop agreements on the means by which terminals shall be licensed. That such licensing shall be based on class licenses or blanket approvals. That the agreements shall include the means by which these licenses shall be mutually recognized.

Article 3 – Marking of Terminals

The Parties shall develop agreements on the marking of terminals which will permit their recognition and the implementation of the agreements on mutual recognition of type approval and licensing.

Article 4 – Customs Arrangements

The Parties shall develop recommendations in order to exempt terminals from customs restrictions when visiting or transiting countries.

Article 5 – Review

The Parties shall periodically review the results and consequences of their cooperation under this Memorandum of Understanding. When appropriate the Parties will consider the need for improvements in their cooperation and make suitable proposals for modifying and updating the agreements.

Done in Geneva:

[date]

signed:

DRAFT OPINION No. 5

Advice to Developing Countries on the Implementation
of GMPCS

The First World Telecommunication Policy Forum (Geneva, 1996)

recognizing

that GMPCS systems offer significant benefits to the public both in the developing and developed countries;

recognizing further

that while the benefits and potential of GMPCS have not been challenged, nevertheless some countries may have concerns about the political, economic, social and cultural impacts of the emerging new systems;

considering

• that GMPCS systems built and financed mainly by private investors will offer advanced telecommunications services that would otherwise be cost prohibitive to develop or operate by many Administrations, especially in developing countries;
• that developing countries stand to benefit from these advanced services and in particular where terrestrial infrastructure is limited or non-existent;
• that GMPCS has the potential of narrowing the existing gap in the provision of telecommunications services between developed and developing countries;

considering further

• that developing countries ought to benefit from the introduction of the latest technology in the field of telecommunications;
• that these countries face unique problems such as the lack of, or minimal, interconnectivity between terrestrial networks, however, initiatives are being taken in order to interconnect developing countries through submarine cables, fibre optic cables, microwave links, satellite, etc.
• that terrestrial connectivity is essential when introducing GMPCS in order to ensure that good quality service is maintained;

conscious

• that for GMPCS services to be truly global, the participation of developing countries is essential;
• that there is concern that the charges for access and utilization of GMPCS services may well be beyond the means of the local populace in developing countries, particularly those that live in rural and remote areas;

of the view

• that it would be useful to study the impacts of the new systems and to identify the net benefits that developing countries may derive from them;
• that the ITU could help developing countries by preparing a checklist of factors which they should take into account in the process of implementing GMPCS;

urges

• GMPCS system operators, gateway operators, and service providers to take reasonable steps to ensure that their access and utilization charges are set at a level that would make this service as widely utilized as possible including in rural and remote areas and areas lacking conventional infrastructure in developing countries, taking into account the cost of providing service and the economic situation in developing countries;
• GMPCS system operators consider providing some capacity at reasonable cost in support of service provision to areas lacking conventional infrastructure in developing countries;
• GMPCS gateway operators to consider offering transit tariffs at reasonable cost in support of service provision to rural and remote areas in developing countries;

invites the Director of the BDT, in liaison with the Directors of the other Bureaux

to make arrangements for experts from the three Sectors, especially from developing countries, to provide, in liaison with the relevant Study Groups, advice and assistance in reponse to the concerns and needs of developing countries on the technical, regulatory and operational issues associated with the introduction of GMPCS on a global or regional basis, particularly in relation to tariffs and interconnectivity;

urges

developing countries to communicate their concerns and needs to these experts.

The following annexes summarize proposals made in Members' contributions elaborating on the voluntary principles listed in Draft Opinion No. 2, as well as with respect to areas where action by relevant ITU meetings could facilitate the development and introduction of GMPCS.

This material is presented as background information for Policy Forum participants.

Measures Necessary to Achieve Transborder Use of
GMPCS Terminals

Policy and Regulatory Issues Relevant to GMPCS Systems and Services, in Particular those Related to Interconnection, with a View to Achieving Equitable and Standard Conditions of Access