The Asian response in the WTO has been disappointing, says Reed Hundt, chairman of the US Federal Communications Commission. Too many important countries in the region, including Indonesia and Malaysia, have made no offers at all. Others, he says, including Korea, the Philippines, Thailand and Hong Kong, have made offers of liberalisation which fall short of full competition.
Asias rate of deregulation is by no means the only stumbling block in negotiations, which also face difficult issues from satellite communications to liberalisation measures in continental Europe.
But the industry potential in the Asia-Pacific region has thrown the spotlight on its regulatory regimes. This is such a dynamic part of the world, with the prospect of a rapid expansion of telecoms, says Alex Arena, Hong Kongs director general of telecommunications, so there is particular attention to what Asia is bringing to the table.
Such pressure, along with economic self-interest, is having an impact with a recent acceleration of moves towards liberalisation in the region. Among the most significant was the announcement by Singapore that it would end the local monopoly of Singapore Telecom from the year 2000, seven years ahead of schedule.
Behind Singapores move is a determination to strengthen its position as a regional business hub. Similar considerations have encouraged Hong Kong to move against the last bastion of restricted competition in its telecoms market the monopoly on international direct dial business held by Hongkong Telecom.
Arena, a determined deregulator who has already introduced wide competition into mobile telecoms and fixed-line domestic services, has opened talks with Hongkong Telecom with a view to terminating the exclusive franchise. It is a complex issue, with political as well as commercial considerations.
If Hong Kong is going to remain relevant into the next century then it has to be a major services centre, says Arena. If Hong Kong is established as a services centre, such sentiments are gaining ground elsewhere.
Adam Quinton, regional telecoms analyst at Merrill Lynch in Singapore, cites a raft of new licences in South Korea and increased competition in Malaysia, the Philippines and Indonesia. Taiwan is awarding new licences for mobile telecoms operators, with many consortia including foreign operators.
Whether this is enough to help clinch a WTO deal remains unclear. Several of the markets, such as Indonesia and Malaysia, retain limits on foreign ownership of telecoms operators, while Thailand is linking reforms in telecoms with concessions on other issues, such as agriculture.
And even where progress is being made on the ground, this is not always translated into offers on the table. This is sometimes due to political constraints, the lobbying of a dominant player or practical considerations, such as the need to amend legislation, says one negotiator. He expresses optimism, however, that Asias stumbling blocks can be overcome.
But with Februarys deadline looming, an accord is not assured.
