This Note has been prepared at the request of the Council for Trade in Services, with a view to stimulating discussions in the Council on the telecommunication sector. It provides background information and updates a previous Note on trade in telecommunication services (S/C/W/74, dated 8 December 1998). This Note focuses on developments and issues considered to be most relevant to the GATS. It is not intended to provide a comprehensive account of the sector. The Secretariat would point out that many of the observations contained in the previous Note remain pertinent today and that this Note will not, for the most part, repeat all of those same points. Instead, it will highlight new data and emerging features in the areas of commercial and technological developments and regulatory matters. Following the introduction, Part II deals with the definition of the sector, Part III with its economic importance, Part IV provides an analysis of GATS commitments, and Part V outlines the trade and regulatory environment.