Asian countries are expected to be big winners from a landmark telecommunications trade pact agreed yesterday that promises discounted telephone calls and cheaper access to other telecommunications services.
Under the deal thrashed out at the World Trade Organisation in Geneva, leading countries in the region have made unprecedented commitments to open up their telecommunications markets in return for increased efficiency.
United States Trade Representative-designate Charlene Barshefsky hailed the deal.
'A 60-year tradition of telecommunications monopolies and closed markets has been replaced by market opening, deregulation and competition,' she said.
'Before this agreement, only 17 per cent of the top 20 telecom markets were open to US companies. Now they have access to 100 per cent of these markets.' She said world businesses spent more on telecommunications than on oil and the pact should lower the average cost of international calls from US$1 a minute to 20 cents over the next few years.
Analysts said the pact was reached after market-opening offers by several Asian countries which in previous negotiations had failed even to offer market access.
Changes will allow greater access for giants such as NTT Corp of Japan, AT&T of the US, Deutsche Telekom and British Telecom, allowing them to compete with national monopolies. 'This will give consumers a choice they have never enjoyed before, and force firms to lower charges and become increasingly efficient,' one analyst said.