The OMC Telecommunications Agreement

The agreement that was reached after three years of negotiations is a product of technological improvement of the normative ways of the former PTTS (Postal, Telephone and Telegraphic Systems). The new agreement, an annex of the General Agreement on Trade and Services (GATT), was undersigned by 69 countries and will open competition in the markets of the United States, the European Union, Japan and 15 countries more, by 1998.

Telecommunications, according to definitions accepted by GATT, will be divided into Basic Telecommunications and Added Value Telecommunications. The agreement covers the Basic Telecommunications, both private and public. As examples of the covered activities we may mention telephone (voice), transmission of data, telegraph, telex, fax, leasing of private circuits, cellular telephone, systems and mobile or fixed satellite services, pagers and personal telecommunication systems.

International Commerce of telecommunications is important in two aspects. First, because of its impact on other activities, such as tourism, financial services, business services, transportation, construction and engineering, and distribution services. Secondly, because of its own business volume. In 1995, the global income on telecommunication services was US$ 601,9 million, the same as 2.1% of the gross world product, according to the OMC. Guatemala is among the signing countries and its income for telecommunication, in 1995, was US$ 197.2 millions, equivalent to 0.03% of world commerce.

This forced opening might offer a bad forecast for those state companies that are not used to competition. Therefore, they are becoming private in most countries. When state companies such as Guatel have not satisfied even the demand for services and basic infrastructure, the vulnerability if total. With the route the telecommunication commerce is taking, the best option is what is being done: de-monopolize the market and sell the state company, while there still exist buyers. Like it is said in French, la fuite en avant, the escape should precede.