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and Social Committee", "date": "1987-07-01", "subjects": "advertising,approximation of laws,audiovisual co-production,child protection,freedom to provide services,right of establishment", "workIds": "celex:51987AC0642,oj:JOC_1987_232_R_0029_01", "eurovoc_concepts": ["advertising", "approximation of laws", "audiovisual co-production", "child protection", "freedom to provide services", "right of establishment"], "url": "http://publications.europa.eu/resource/cellar/ad6ab0a2-12cd-4af9-90ec-ba98a0eb22d4", "lang": "eng", "formats": ["pdfa1b", "print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/93cc7e57-0bf9-4c2c-b3a3-3273efb92d92", "title": "PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON THE APPLICATION OF THE COMBINED NOMENCLATURE TO THE STATISTICS OF TRADE BETWEEN MEMBER STATES AND AMENDING REGULATION ( EEC ) NO 1736/75 ON THE EXTERNAL TRADE STATISTICS OF THE COMMUNITY AND STATISTICS OF TRADE BETWEEN MEMBER STATES", "langIdentifier": "ENG", "mtypes": "pdfa1b,print", "workTypes": "http://publications.europa.eu/ontology/cdm#act_preparatory,http://publications.europa.eu/ontology/cdm#proposal_act,http://publications.europa.eu/ontology/cdm#proposal_regulation_ec,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "European Commission", "date": "1987-06-30", "subjects": "Combined Nomenclature,EU statistics,Nimexe,extra-EU trade,foreign trade,intra-EU trade", "workIds": "celex:51987PC0308,comnat:COM_1987_0308_FIN,oj:JOC_1987_185_R_0004_01", "eurovoc_concepts": ["Combined Nomenclature", "EU statistics", "Nimexe", "extra-EU trade", "foreign trade", "intra-EU trade"], "url": "http://publications.europa.eu/resource/cellar/93cc7e57-0bf9-4c2c-b3a3-3273efb92d92", "lang": "eng", "formats": ["pdfa1b", "print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/8382665c-49ea-410d-91e8-dc504af71d20", "title": "Commission Regulation (EEC) No 1844/87 of 30 June 1987 introducing private storage aid for Kefalotyri and Kasseri cheeses", "langIdentifier": "ENG", "mtypes": "html,pdfa1b,print", "workTypes": "http://publications.europa.eu/ontology/cdm#legislation_secondary,http://publications.europa.eu/ontology/cdm#regulation,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "European Commission", "date": "1987-06-30", "subjects": "private stock,sheep's milk cheese", "workIds": "celex:31987R1844,oj:JOL_1987_174_R_0028_049", "eurovoc_concepts": ["private stock", "sheep's milk cheese"], "url": "http://publications.europa.eu/resource/cellar/8382665c-49ea-410d-91e8-dc504af71d20", "lang": "eng", "formats": ["html", "pdfa1b", "print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/264c2dd3-4979-4747-91df-7d7693fa96e2", "title": "TOWARDS A DYNAMIC EUROPEAN ECONOMY, GREEN PAPER ON THE DEVELOPMENT OF THE COMMON MARKET FOR TELECOMMUNICATIONS SERVICES AND EQUIPMENT", "langIdentifier": "ENG", "mtypes": "pdf", "workTypes": "http://publications.europa.eu/ontology/cdm#act_preparatory,http://publications.europa.eu/ontology/cdm#communication_ec,http://publications.europa.eu/ontology/cdm#document_com_other_ec,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "European Commission", "date": "1987-06-30", "subjects": "EU policy,postal and telecommunications services,provision of services,regulation of telecommunications,single market,telecommunications equipment,telecommunications industry,telecommunications policy,trans-European network,transmission network", "workIds": "celex:51987DC0290,comnat:COM_1987_0290_FIN", "eurovoc_concepts": ["EU policy", "postal and telecommunications services", "provision of services", "regulation of telecommunications", "single market", "telecommunications equipment", "telecommunications industry", "telecommunications policy", "trans-European network", "transmission network"], "url": "http://publications.europa.eu/resource/cellar/264c2dd3-4979-4747-91df-7d7693fa96e2", "lang": "eng", "formats": ["pdf"], "text": "COMMISSION OF THE EUROPEAN COMMUNITIES \n\n675'\u00ee7 \n\nCOMC87) 2~0 final \n\nBrussels, 30 June 1987 \n\nTOWARDS A DYNAMIC EUROPEAN ECONOMY \n\n/ \n\nGREEN PAPER \n\nON THE DEVELOPMENT OF THE COMMON MARKET \n\nFOR \u00b7TELECOMMUNICATIONS SERVICES AND EQUIPMENT \n\nCOMC87) 290 final. \u00b7. ;~ \n\nii! \n\n\u00b7Il \nl \n\n'f \n\n: ~ \n\n:' 1 \n\n~ \u2022 \u2022 \n\n1 \n\nu i ~ \n\nl,l;: \n\ni\u00b7. l \n\n1: \n\n!\u00b7 \n\n1: \nl:. 1 \n\n1 \n\n' i \n\n1. ! : \n\n11. : \n\n\f\u2022ILJ'!4 \n\n1:. , \n\n1. 1 \n\n1 \n\ni\u00b7 \n\njl, \n\n! \nit. ;t 1 \n\nj, \n\n1 \n\n' \n\nl:' 1. , f \n; \n\u00b7. 1 \n, \n'!. 1 \n,', 1: \n\n1. PRESENTATION OF THE GREEN PAPER \n\nON TELECOMMUNICATIONS \n\n[< \n\n1 \n\nl \nt \n\nr \n\nInformation, exchanges _. of knowledge, and communications are of \nvital importance in economic activity and in the balance of ~ower \nin the world today. Policy makers a\u00b7re therefore concentrating on \nways of acquiring, processing, stor. ing and transmitting \ninformation. Telecommunications is the most critical area for \ninfluencing the \"nervous system\". of modern society. To flourish, it \nhas to have optimum environmental conditions. In this respect, the \nconvergence of \ntelecommunications, computing and applications of \nelectronics in general has now made possible the introduction of a \nwide variety of new services. The traditional form of organsation \nof the sector does not allow the full development of the potential \nof these new services. In order to create an open and dynamic \nmarket in this area it therefore seems necessary to introduce \nThe se \nregulatory changes \nchanges should allow the full development of the supply. of services \nand equipment, \nthus making it possible for industry to take full \nadvantage of this potential. In particular, national frontiers \nshould not be allowed to hamper \nthe deve l \n\n\f'< \n\n5 \n\nSince 1984, the Community has made substantial progress in this \nfield, by implementing a policy aimed at : \n\npromoting the creation of an advanced European telecomrnunica \ntions infrastru~ture \n\ncontributing to the creation of a Community-wide market for \nservices and equipment ; \n\ncontributing to the competitiveness of European industry and \nservice providers. In following these objectives, the Commission has, within the last \ntwo years, made proposals and achieved rapid agreement by Council \nalong five main lines :. Co-ordination regarding future development of teiecommunica \ntions in the Cornrnunity and cornrnon infrastructure projects. This concerns in particular the principal future stages of \nnetwork development \nNetwork (ISDN), digital mobile communications, and the \nintroduction of future broadband communications ; \n\nthe Integrated Services Digital \n\ncreation of a Community-wide market for terminals and \nequipment. This concerns in particular the promotion of \nEurope-wide open standards, in order to give equal opportunity \nto all market participants ; \n\nthe launch of a programme of pre-competitive and \"pre \nnormative\" R&D covering the technologies required for \nintegrated broadband communications (the RACE programme) \n\n\f6 \n\npromoting the introduction and development of advanced \nservices and networks in the less-favoured peripheral regions \nof the Comrnunity ; \n\nbuilding up cornmon European positions with regard. to \ninternational discussions in this area. During 1986 alone, Council achieved agreement, on proposa! by the \nCommission, on six major measures which will become fully \neffective during 1987. Fig. 1 gives an overview of decisions \ntaken and of proposals currently before Council. In parallel, the Commission has taken up a number of cases, \nrelated to the opening of telecornrnunications markets, under the \nTreaty's competition rules. _ Figure l. :!:'. -' \n\n\u00b71~\u00b7. \u00b7\u00b7 \n\n--. [. ;~ \n\nCOUNCIL DECISIONS TAKEN IN THE FIELD OF TELECOMMUNICATIONS \n\nSINCE 1984 \n\nCOUNCIL RECOMMENDATION OF li NOVEMBER 1984 concerning the \nimplementation of a comrrion approach in the field of \ntelecornmunications (84/549/EEC) \n\n\u00b7cOUNCIL RECOMMENDATION OF 12 NOVEMBER 1984 ~oncerning the f irst \nphase of opening. up. access to public telecornmunications. contracts \n(84/550/EEC) \n\nCOUNCIL. DECISION OF 25 JULY 1985 on a definition phase for _an R&D \nprogramme in advanced communications technologies for Europe (RACE) \n(85/372/EEC) \n\nCOUNCIL RESOLUTION OF 9 JUNE 1986 on the use of videoconf erence and \nvideophone techniques for intergovernmental applications (86/C \n160/01) \n\nCOUNCIL DIRECTIVE OF 24 JULY 1986 on the initial stage of the \nmutual recognition of type approval for telecommunications terminal \nequipment (86/361/EEC) \n\nCOUNCIL REGULATION OF 27 OCTOBER 1986 instituting a Community \nprogramme for the development of certain less-favoured regions of \nthe Community by improving access to advanced telecommunications \nservices (STAR programme) (86/3300/EEC) \n\nCOUNCIL DIRECTIVE OF 3 NOVEMBER 1986 on the adoption of common \ntechnical specif ications of the MAC/packet family of standards for \ndirect satellite television broadcasting (86/529/EEC) \n\nCOUNCIL DECISION OF 22 DECEMBER 1986 on standardisation in the \nfield of information technology and telecommunications (87/95/EEC) \n\nCOUNCIL RECOMMENDATION OF 22 DECEMBER 1986 on the co~ordinated \nintroduction of the Integrated Services Digital Network (ISDN). in \nthe European Communi ty \u00b7( 86/659/EEC} \n\n\fI \". \u2022 \n:\u00b71 \n,, \n\n1 \n\n' \n\n1 \n\n1 1 i \n1. '1 '' \n11,\u00b7 \n\nt. igure 1. \\CUllL. lllUt!U} \n\nPROPOSALS CURRENTLY BEFORE COUNCIL \n\nPROPOSAL FOR A COUNCIL ~EGULATION OF 29 OCTOBER 1986 on a Comrnunity \naction in\u00b7 the field of telecommunications technologies {RACE) \u00b7 \n\nPROPOSAL \"FOR A COUNCIL REGULATION OF 1 DECEMBER 1986 introducing \nthe preparatory phase of a Community programme on trade electronic \ndata interchange systems (TEDIS) \n\nPROPOSAL FOR A COUNCIL RECOMMENDATION OF 9 FEBRUARY 1987 on the \nco-ordinated introduction of public pan-European digital mobile \ncommunications in the European Community and PROPOSAL FOR A COUNCTL \nDIRECTIVE on _the frequency bands to be made available for the \nco-ordinated introduction of public pan-European digital mobile \ncommunications in the European Community (*). {*) \n\napproved by Council on llth June 1987 \n\n\f7 \n\nIII CURRENT ADJUSTMENT OF INSTITUTIONAL AND REGULATORY CONDITIONS \n\nTo complement the progress achieved to date, it now seems timely \nto initiate a common thinking process regarding the fundamental \nadjustment of the institutional and regulatory conditions which \nthe telecommunications sector now faces. This world-wide \ntransformation is due to the prof ound technical change which is \ncurrently taking place : the progressive merger of \ntelecommunications and computing technology, and the growing \nintegration of spoken, written and audio-visual communication. Telecommunications has taken 140 years to develop from a single \nservice to a dozen services in the early eighties. The new \ntechnological capabilities will now lead to. considerable growth \nand multiplication of services and applications within a\u00b7 single \ndecade. [Fig. 2] \n\n( \n\n:1, \n\n1 \n\nI, \n\nMastering this transformation requires certain readjustments in \nthe organisation of the sector in all Member States. The forrn of \nthese adjustments must take into account the particular position \nof European countries \u00e0nd the requirements of the establishment of \na unif ied market. As set out in this Green Paper, the Community must make sure \nthat : \n\nthe necessary European scale and dimension are introduced into \nthe current phase of transformation ; \n\nno new barriers are created within the Community during the \nadjustrnent of regulatory conditions ; \n\nb. ,-. ,. -,\"'\"\u00b7~\u00b7_c =-c- - - - -. -\n\n-\n\n-\n\n- - - - -- -\n\n\fTELECOMMUNICATIONS: \nPROSPECTS FOR THE YEAR 2000. / Telegraphy \n\n~ Telex \n\neegrap y \nT 1 \n\nh \n\nBroadband dola \n\nPackel\u00b7swilched dola \nCircuit \u00b7swllched dola \nTelemelry \nTelelex \nText facslmlle \nFacsimlle \n\n~ Telegraphy \n\nTelegraphy \n\n_ \n\nPhoto \nFacslmlle \n\nPhoto \nFdcslmlle \nFacslmlle \n\nTelephony \n\nTelephony \n\nTelephony \n\nHigh-speed dola Colour facslmlle \n\nMedl\u00f9m-speed dola \n\nElectronlc Mali \n1 Clrcult-swltched Telenewspaper \n\ndata Vldeotex \n\nLow-speed data \nPhoto \nFacslmlle \nFacslmlle \n\nTelephony \n\u00b7. Hifi telephony \nTelephone-conrerence \nVldeoconference \n\nTelemetry Speech facslmlle \nFacslmlle \nTeletex \nFocslmlle \nVldeofex \nTelephony Vldeotelephony \nVldeocon \u2022 Stereo hifi sound \n~re~e Quadrophony \n\nColour tel\u00e9vl~lon----------_ ~'ifir~iund \nColour televlslon \n\nColour televlslon \nStereo televlslon \n\nTelephony \n\nTelephony \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n1847 \n\n1877 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1920 \n\n19JO \n\n1960 \n\nSt\u00b7ereo \n\nColour televislon High\u00b7deflnitlon televlslon \nMobile vldeotelephony \nMobile lelephony \nMobile lext \nMobile. racslml. 1. e \nMobile data \nMobile vldeotex \nPaging \n\n2 000 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1975 \n\nFig. 2 \n\nSource: Consorlium Brillsh Telconsull/Consullel/Delecon/Neposlel/Sofrecom el al. ~~~~a::;-~~~~~Z _ _:;~=: ~. -\n\n--_\u00b7 ~:~ :-_:~- -~~-- 7-~ -~ --~~:;-~~;~~ ~>>= \n\n-\n\n-\u00b7- -- -- --- --\u00b7. -----=----\n\n' \n\n\fexisting barriers are removed in the course of this \nadjustment. 8 \n\n;. 1~~~- \u2022. t\u00b7t \n\u00b7\\. The search for common positions in the complex field of future \nregulation of the telecommunications sector must take into account \na number of major requirements, if it is to contribute to \nstrengthening the European economy \n\n1' \n\nf \u00b7,. firstly, differing regulatory traditions in the sector. Careful analysis of current reviews and debates in the Member \nStates must identify those areas on which common positions can \nbe reached. It is on those areas that efforts towards \ndeveloping consensus should be concentrated, in order to \nincrease convergence over time in the Community \n\nsecondly, opportunities and obligations deriving from the \nTreaty, in particular regarding : the free movement of \ngoods ; the freedom to provide services ; competition rules \nthe cornmon commercial policy ; \n\nthirdly, the external relations of the Community, in \nparticular regarding its major trading partners. - the EFTA \ncountries, the United States and Japan, the Third World. The \nopportunities and obligations deriving for the Community from \nthe GATT agreement and the new GATT round must be taken into \naccount. The impact on the Cornrnunity's industrial and trading \nposition must be kept clearly in rnind ; \n\n'\"t:============--:_:_:\u00b7 -\u00b7-. - - -\n\n- - - ---o _:,-_o. ----\"~ -- -. -\n\n\f9 \n\n/\u00b7. \u00b7. , \u00b7; \n\u00b7'' \n\nfourthly, the evolution of social perceptions in the Member \nStates regarding the new technologies. This concerns the \nsocial consequences of the new technologies and associated \nregulatory policies, the. conditions for the integration of \nthese technologies into both private and work life, and \nmeasures to facilitate the transition by generating new \nemployrnent opportunities and protecting le~jtirnate interests. The convergence of telecomrnunications, data processing and \naudio-visual technologies is outdating traditional boundary lines \nbetween the telecornmunications network and the terminals sector, \nand between services traditionally provided under monopoly and \nthose provided in a competitive environment. Satellites are now \nable to provide services within and between countries, at a world \nlevel. There are now many service functions and features that can be \nperformed either by the public network or by a private network or \nthe terminal equipment attached to the network. All countries are \nconf ronted by two options \n\neither to t~y to maintain the current regulatory framework, \nwhich would imply irnposing additional and permanent \nrestrictions and regulations on the use of data processing \nequipment connected to the network ;. or to def ine the telecommunications regulatory framework more \nnarrowly and to give more room for competition. The worldwide trend points towards the latter. 10 \n\nIV CONVERGENT TRENDS IN THE CURRENT DEBATE IN THE COMMUNITY ON \n\nSTRUCTURAL ADJUSTMENT IN TELECOMMUNICATIONS \n\nj,1 \n\n/ ,\u00b7 \n\nIn the Cornrnunity, the situation is iri flux. The United Kingdorn \nhas. substantially modif ied the organisation of its \ntelecornrnunications sector and issued rece. ntly a new general \nlicence for value-added and data services. France has seen \nsubstantial changes of legislation in the telecomrnunications / \naudio-visual field and will introduce major new proposals for its \nfuture telecommunications policy in 1987. Reviews or changes are \nunderway in Germany, the Netherlands, Belgium, Italy, Spain, \nPortugal, and other Member States. For its part, the European \nConference of Postal and Telecomrnunications Administrations (CEPT) \nis reviewing its organisation, in response to, and in close \ninteraction with, the development of Cornmunity telecornrnunications \npolicy, and in close co-operation with the Commission. Analysis of the regulatory situation and of current trends of \nadjustrnent in the Mernber States shows that there are convergent \ntrends in current thinking. There is therefore the genuine \npossibility of finding agreement for broad comrnon regulatory airns \nfor the telecornmunications sector in the Comrnunity. There seems to be agreement on the following basic orientations : \n\nNew services and terminal equiprnent require market conditions \nwhich faveur innovatjon, experimentation, and a high degree of \nflexibility. ~~~. , \n\n~. L \n\n\f11 \n\nthe curr~nt and future integrity of the basic network \ninfrastr_ucture must be maintained or created. This implies in \nparticular a continuing strong role for Telecommunications \nAdministrations in the provision of network infrastructure, \nand strong emphasis on Europe-wide standards in this area. It \nalso implies safeguarding the financial viability of \nTelecommunications Administrations in order to ensure the \nbuild-up of the new generations of telecommu~ications \ninfrastructure and the necessary level of investment. securing a wide range of choice for the consumer requires that \nTelecommunications Administrations be able to provide, \nalongside other suppliers, those services which are opened to \ncompetition even if this may involve complex problems of \nregulation. employment growth requires a growth-oriented policy, \nparticularly in the future conglomerate sector of telecommuni-\ncations / \nshift from traditional activities to new opportunities. An \nintense dialogue with the social partners will be necessary, \nin order to ensure a smooth transition. information technologies within which jobs will \n\n\f12 \n\nV \n\nPOINTS TO BE CONSIDERED FOR A COMMON APPROACH \n\nThe f ollowing points to be considered for a solution are discussed \nin more detail in the Green Paper \n\nGiven their importance and wide ramifications, regulatory \nchanges in telecommunications can only be introduced \nprogressively. Time must be allowed for present structures, \nwhich have grown up historically over a long period, to adjust \nto the new environment. The major objective must be the \ncompletion of the Internal Market by 1992. Regulatory changes in telecommunications must take account of \nthe views of all parties concerned, in particular private and \nbusiness users, Telecornrnunications Administrations, the \n_Administrations' work force, competing enterprises and the \ntelecommunications and data-processing industry ; \n\nThere is consensus in the Community that competition in the \ntelecommunications services and terminal equipment\u00b7 sectors \nmust be substantially expanded, in order to react to \ntechnological, economic and world market trends ; \n\nThere is also consensus that the role of the Telecommunica \ntions Administrations in the provision of network infra \nstructure must be essentially safeguarded, in order to allow \nthem to fulf il their public service mandate ; \n\nA stable \"natural\" boundary line between a \"reserved services\" \nsector and a \"competitive services\" sector (including in \nparticular \"value-added services\"} is not possible. Due to \ntechnological development \nthe trend towards integration \nany def inition (and reservation) of a service can only be \n\n-. /i 1 \n\n1 \n1 ': :1 \n\n1\n\n' \n\n1 /1 \n'I \u00b7I \n\u00b7. !; \ni:: \u00b7'l I \n\n'. \u00b71 \n\n, \n\n,1. i 11 \n\n1 \n: 1 11\u00b7 \n\u00b7: \n\n1 \n:. , ;. 1 \n\u00b7, 1. : 1'. ! \n1, 1\u00b71 \n1: \nj \u00b7 1, 11 \n1 \n, \nI' \n,j,11 \n: ; j::il:,: I! \n\u00b7! \"' \n''1 \nI\u00b7 \u00b7 \n\u00b7 I \n1 \nf. , I \n\"\n1 \n1: /1 i'\u00b7:j \n' : i ''. d 1 \n\u2022\u2022 \u00b71 \u00b7:Il. : :'::t'11I \n,,. i:; \u2022 \n!\u00b7' l'i!! 1 1. : ,. ; \n\n/. ;,. 1 \n1,. ! \n; \\11:1 \n\n1 \n1 \n\n13 \n\ntemporary and must be subject to review if it is not to impede \nthe overall development of telecommunications services. There \nis however in practice consensus between the Member States \nthat voice telephone service is a basic service. Currently, \nthis service is reserved in all Member States for provision by \nthe Telecommunications Administrations. At present, this \nservice corresponds to 85% - 90% of telecommunications \nrevenues. As one counterpart of a more open market environment, the time \nit takes for the establishment and common application of \ninternational standards must be substantially reduced, in \norder to ma~ntain future network integrity and to promote the \navailability and interoperability of efficient Europe-wide and \nworldwide services. and should \n\nallowed to participate in the newly emerging \n\nTelecommunications Adminstrations generally are \nbe \ncompetitive services and terminal equipment market. This \nrequires that in the future regulatory responsibility must be \nseparated from operational responsibility. Regulation \nconcerns in particular licensing, control of conformity \ntesting and obligatory interface specifications, frequency \nadministration, and general surveillance including tariff \nprinciples ;: \n\nEntry of the Telecommunications Administrations but also of \nthe computer and data-processing multi-national companies \ninto a competitive telecommunications sector implies the \ndanger of abuse of a dominant position. Control measures with \nregard to both types of dominant market participants will have \nto be strengthened ; \n\n\f14 \n\nAction. at Community level must be taken towards narrowing the \ndifferences between Member States regardin9 the provision of \nnetwork facili~ies ta the newly emerging competitive services \nand terminal equipment sector. Otherwise a Community market \nfor services will not develop rapidly. This has implications \nboth for technical regulations and network termination points \nand for usage conditions and tariff principles ; \n\nThe long-term convergence of telecommunications with \naudio-visual technologies must be taken into account, in \naddition to the current convergence between the \ntelecommunications and data-processing sectors. This affects \nin particular policies concerned with satellite communications \nand cable-TV networks. Where cable-TV network infrastructure and satellite \ncommunications are also used for two-way communications, close \nsurveillance with regard to their relationship and interfacing \nwith the overall telecommunications network will be needed, in \norder to ensure the long-term overall integrity of the \ntelecomrnunications infrastructure. Two-way satellite communications and the regulation of \nup-links will need case-by-case consideration. Closely \nmonitored competiticn should be a possibility in those cases \nwhere unacceptable interference with other satellite or radio \ncommunications systems is not to be expected and where the \nrevenue base and f inancial viability of the general network \ninfrastructure provider is not put into question. \u00b7 \nof very small satellite antennae (VSAT or \"microterminals\") \nsuitable for data exchange only, this situation should \nnormally be assumed automatically. In the case \n\nIV \n\n:. i\u00b7ri1 \n\u00b7r. \u00b7 \ntl1' 1 \n:I:''. 1 \n\nr. i ,. 1 \n\n,. ~ \n\n~. r-\n\n1 ,, \nt \n\nf\u00b7 \nl \n\n1 \n\n\f15 \n\nii \n\n1\u00b71 \n\n\u00b7 \n\n1 \n\n1 i i: \n'1 \n1 1 \n\n' \n\n1 \n\n\u00b71 \n\n' \n1\u00b7' \n\nGiven the trend in satellite communications towards point to \nmulti-point 'broadcasting' applications for closed user \ngroups, the regulatory regime for receive only earth stations \n(ROES) for satellite communications should be assimilated to \nthe regime for telecommun. ications terminals and TV \nreceive-only satellite antennae and fully opened to \ncompetition. With the growing importance of services, the Community will \nface in its external relations a growing number of tele \ncomrnunications-related issues. Consensus must be achieved in \ntime for the preparation of the new GATT round which will \ninclude telecommunications services. Consensus must be further developed at Community level \nregarding telecomrnunications issues and the Community's \noverall framework of external relations, in particular with \nthe EFTA countries and CEPT, with the United States and Japan \nand with the international organisations in this field, such\u00b7 \nas the International Telecommunications Union (ITU). ---. ! \n' : \n\n16 \n\nVI PROPOSED COMMUNITY POSITIONS \n\nWith these points in mind, in the Green Paper proposals for \npositions are developed, which are set out in Fig. 3. The proposals concentrate on those issues which must be resolved \nat Comrnunity level for all Member States. They leave out \nquestions which are important but fall to the national level, such \nas which status for Telecommunications Administrations is best \nsuited to facing the developing competitive market environment, \nand related questions of finance, organisation, and employment \nrelations. The proposals f oresee the continuation of those aspects of the \ncurrent regimes where there is compatibility with the Treaty. Within the framework of the current adjustment and according to \ntheir economic appreciation and perception, Member States may, of \ncourse, choose their own position with regard to these aspects, \nsuch as a more liberal regime regarding the whole or parts of the \nnetwork infrastructure. As regards required change at the \nCommunity level, the proposals in Fig. 3 insist on three essential \nmodifications : \n\nPHASED COMPLETE OPENING OF THE TERMINAL EQUIPMENT MARKET TO \n\nCOMPETITION \n\nIn the long run this must include all terminals including the \nsubscriber's first telephone set, given the trend towards \nintegration of functions and the Integrated Services Digital \nNetwork. - ~~ ::-~-:i. \u2022. r~. ~-/ '. !\u00b7L. ~ \n\n\fPROPOSED POSITIONS \n\nThe general objective o! the positions set out is the development in the Comnunity \nof a strong teleconmunications infrastructure and of efficient services : \nproviding the European user with a broa~ variety of telecommunications services on \nthe most favourable tenns, ensuring coherence of development between Hember \nStates, and creating an open competitive environment, taking full account of the \n\ndynamic technological developments underway. \u00ef \n\n\u00b7: \n\nA) Acceptance of continued exclusive provision or special rights for the \n\nTeleconmunications Administrations regarding provision and operation of the \nnetwork infrastructure. Where a Hember State chooses a more liberal regime, \neither for the whole or parts of the network, the short and long term \nintegrity of the general network infrastructure should be safeguarded. Closely monitored competitive offering of two-way satellite coomunications \nsystems will need further analysis. It should be allowed on a case-by-case \nbasis, where this is necessary to develop Europe-vide services and where \nimpact on the f inancial viability of the main provider(s) is not \nsubstantial \u2022 \n\nCoomon understanding and definition regarding infrastructure provision should \nbe worked out under E) below. B) Acceptance of continued exclusive provision or special rights for the \n\nTeleconmunications Administrations regarding provision of a limited number of \nbasic services, where exclusive provision is considered essential at this \nstage for safeguarding public service goals. Exclusive provision must be narrowly construed and be subject to review \nwithin given time intervals, taking account of technological development and \nparticularly the e~olution towards a digital infrastructure. services\" may not be defined so as to extend a Telecoumunications \nAdministration service\u00b7monopoly in a way inconsistent with the Treaty. Currently, given general understanding in the Community, voice telephone \nservice seems to be the only obvions candidate. \"Reserved \n\nC) \n\nFree (unrestricted) provision of all other services (\"competitive services\", \nincluding in particular \"value-added services\") within Hember States and \nbetween Hember States (in competition with the Telecoomunications \nAdministrations) for own use, shared use, or provision to third parties, \nsubject to the conditions for use of the network infrastructure to be defined \nunder E). \"Competitive services\u2022\u2022 would comprise all services except basic services \nexplicitly reserved for the Telecommunications Administrations (see B). \u00b7-\u00b71. ::. '-\n\nLO ~ \u2022 \n\nD) \n\nStrict requirements regarding standards for the network infrastructure!and \n\nservices provided by the Telecoomunications Administrations or service \nproviders of comparable importance, in order to maintain or create \nConmunity-wide interoperability. These requirements must build in pa~ti. cular \non Directives 83/189/EEC and 86/361/EEC, Decision 87/95/EEC and \nReconmendation 86/659/EEC. Hember States and the Community should ensure and promote prov1s1on by the \nTelecoomunications Administrations of efficient Europe-vide. and worldwide \ncoamunications, in particular regarding those \u00b7services (be they reserved or \ncompetitive) recomnended for Coumunity-wide provision, such as according to \nReconmendation 86/659/EEC. E) \n\nClear definition by Community Directive of general requirements imposed by \nTelecommunications Administrations on providers of competitive services for \nuse of the network, including definitions regarding network infrastructure \nprovision. This must include clear interconnect and access obligations by \nTelecoomunications Administrations for trans-frontier service providers in \norder to prevent Treaty infringements. ' \n\nConsensus must be achieved on standards, frequencies, and tariff principles, \nin order to agree on the general conditions imposed for service provision on \nthe competitive sector. Details of this Directive on Open Network Provision \n(0 N P) should be prepared in consultation with the Hember States, the \nTelecomnunications Administrations and the other parties concerned, in the \nframework of the Senior Officiais Group on Teleconmunications (SOG-T). F) \n\nFree (unrestricted) provision of terminal equipment within Hember States and \nbetween Hember States (in competition with Teleconmunications \nAdministrations), subject to type approval as compatible with Treaty \nobligations and existing Directives. Provision of the first (conventional) \ntelepbone set could be excluded from unrestricted provision on a temporary \nbasis. Receive Only Earth Stations (ROES) for satellite down-links should be \nassimilated with terminal equipment and be subject to type approval only \n\nG) \n\nSeparation of regul~tory and operational activities of Telecom:nunications \nAdministrations. Regulatory activities concern in particular licensing, \ncc:mtrol of type approval and interface specifications, allocation of. :-t-. r \n\n,L. ____ f_r_e_q_u_e_n_c_i_\u00b7 e_s_,_a_n_d_g_e_n_e_r_a_l __ s_u_r_v_e_i_l_l_a_n_c_e_o_f __ n_e_t_w_o_r_k __ u_s_a_g_e_c_o_n_d_i_t_i_\u00b7 o_n_s_;-------~: 1~-1 \n\n\u00b7\u00b7~f;i. 1 :tJ\"?. l3 \n\n:g. 1 \nX'\"-\n~~\u00b7j! \nf;,iJ; \n~~ \u00b7i} \n\n~w. \u00b7) \n\ntij \n\n: i. 1 \n\n1 \n\n1: \n\njl \n\nl:_j \n\ni'. / \n1. f \n\n\fl \n\n1 \n\ni \ni 1 ) ' \n\n\u2022 I. q' \n! \n\n\u00b7! \n'\" \n\nfig~-~ (cont'ed) \n\nH) \n\nStrict continuous reviev of operational (commercial) activities of \n\nTeleconmunications Administrations according to Articles 85, 86 and 90, EEC \nTreaty. This applies in particular to practices of cross-subsidisation of \nactivities in the competitive services sector and of activities in \nmanuf acturing \n\nI). Strict continuous reviev of all private providers in the newly opened sectors \naccording to Articles 85 and 86, in order to avoid the abuse of dominant \npositions ; \n\nJ) \n\nFull application of the Con:munity's common con:mercial policy to \ntelecoumunications. Notification by Telecoomunications Administrations under \nRegulation 17/62 of all arrangements between them or vith Third Countries \nvbich may affect competition vithin the Conmunity. Provision of information \nto the extent required for the Coomunity, in order to build up a consistent \nCoumunity position for GAlT negotiations and relations with Third Countries. -1. > l \n\n17 \n\nIn the short term, transitional solutions will have to be \nfound, taking into account that at the present stage the large \nmajority of Member States wish to maintain their monopoly \ncovering the f irst (conventional) telephone set. ACCEPTANCE BY THE TELECOMMUNICATIONS ADMINISTRATIONS OF CLEAR \nOBLIGATIONS TO INTERCONNECT WITH AND PROVIDE ACCESS TO \nTRANS-FRONTIER SERVICE PROVIDERS \n\nGenerally, the network must be opened, under fair competitive \nconditions, to service providers from other Member States. This is a pre-condition for implementation of the Internal \nMarket for the Community's future service economy. Insofar as Member States continue, for the time being, to \nreserve certain basic services for exclusive provision by \ntheir Telecommunications Administrations, reserved services \nmust be construed narrowly and not interfere with service \nprovision from other Member States, in accordance with Treaty \nrules. CLEAR SEPARATION OF REGULATORY AND OPERATIONAL FONCTIONS OF \nTELECOMMUNICATIONS ADMINISTRATIONS, \n\nIn a more competitive environment, the Telecommunica \n\nin those Member States where this still has not been carried \nout. tions Administrations cannot continue ~o be both regulator and \nmarket participant, i. e. referee and player. Regulatory \nfunctions concern in particular licensing, control of type \napproval and binding specifications, frequency allocation, and \nsurveillance of usage conditions. :l\u00b7 \n,I\u2022 \n1'. , \n!i \n; ~ \n\"L H, \nI\" ;\u00b7. r \n\n\f18 \n\nThe need for this separation is conf irmed by the trends and \ndebates in all Member States which are envisaging more \ncompetition for the sector. The Telecon;munications Administrations should be market \nparticipants in the competitive sectors, in an improved \ncompetitive environment, in order to ensure full service to \nthe whole spectrum of users and industry. Substantial dif f erences will continue to exist between Member \nStates but must be accommodated. This concerns the different \nstatus of the network operators (public/private) but also the \npolicy regarding provision of leased lines and resale of capacity. All Member States agree currently on the necessity of securing the \nfinancial viability of their Administrations, either by excluding \npure resale of voice (telephone} on leased lines or by tariff \nschemes which make resale of voice to third parties unattractive, \nsuch as usage-based tariffs. Both methods will have to be \naccommodated in the Community. However, both methods must be \nlimited to a legitimate level of protection of f inancial viability \nand must not represent the abuse of a dominant position. Current \ncharges for leased lines both at the national and Community level \nshow in some cas\u00e9s wide and unexplained divergences. The proposals aim at progressively introducing full Community-wide \ncompetition to the terminal equipment market, and as far as \npossible and justif ied at this stage to telecommunications \nservices. the lifting of existing restrictions, the Commission will take \nfull account of the fact that the competition rules of the Treaty \napply to Telecommunications Administrations, in particular \nextent that they engage in commercial activities. In pursuing the implementation of these proposals, and \n\nto the \n\n-- - -- --------------- - ---'----------------~-~~-- -==---\"\"\"\"'---\n\n---~. 19 \n\n\u00b7. r:. VII LINES OF ACTION TO \u00b7HELP IMPLEMENTATION OF THESE. POSITIONS \n\nIn order to create the environment for reaching the objectives set \nout, \n\nthe Commission proposes a number of actions : \n\nto smooth the transition towards a more competitive \nCommunity-wide market ; \n\nto promote a strong European presence in both the services and \nindustrial field ; \n\nto prepare the Community for its discussions of future trading \nrelations in this field with its outside partners, in' \nparticular in the framewo. rk of \"GATT. ~ \n\nIt is envisaged: \n\n1 \n\n\u00b7,. :I \ni \n'I ,, \n\nl\n\nJ \nj \n\nto accelerate the implementation of existing action lines_ ; \n\nto initiate a number of new action lines needed to complement \nand facilitate the transition. 20 \n\nVII. l \n\nACCELERATION OF EXISTING ACTION LINES \n\nAs regards the acceleration of implementation of the action lines \n'aef ined by Council in Decem_ber 1984 for the Communi ty' s tele \ncommunications policy, the Commission foresees : \n\nACCELERATED ADOPTION OF THE PROPOSALS FOR ENSURING THE LONG \nTERM CONVERGENCE AND INTEGRITY OF THE NETWORK INFRASTRUCTURE \nIN THE COMMUNITY \n\nil ''. 1 \n\nA pan-European telecommunications infrastructure with full \ninteroperability is the only basis on which a Community-wide \nopen competitive terminal equipment and services market can \nthrive. Intensified industrial cooperation within the \nCommunity must ensure that European industry will fully \nbenefit from the opening of this market. This concerns in particular : \n\nrapid adoption of the RACE MAIN programme which is. fundamental to longer term n\u00e8twork development in the \nCommunity and for Community-wide standards for the future \nIntegrated Broadband Communications, and promotion of \nrelated projects for the progressive Community-wide \nintroduction of broadband communications ; \n\nrapid adoption of the proposals for the introduction of \ndigital mobile communications ; \n\nfull application of Recommendation 86/659/EEC on the \nco-ordinated introduction of the Integrated Services \nDigital Network (ISDN) \n\n; \n\n\f21 \n\nrapid application of the STAR programme for advancing \ninfrastructure in the regions, with the aim of increasing \neconomic cohesion during the current transition. RAPID EXTENSION OF DIRECTIVE 86/361/EEC TO INCLUDE FULL MUTUAL \nRECOGNITION OF TYPE APPROVAL FOR TERMINAL EQUIPMENT \n\nAccording to the current Directive 86/361/EEC on the mutual \nrecognition of testing required for type approval, proposals \nfor full mutual recognition of type approval must be submitted \nby July 1989 at the la test. \u00b7\u00b7The Commission proposes to \naccelerate this measure which is vital for the development of \na competitive, Community-wide terminal market. REPLACING RECOMMENDATION 84/550/EEC ON THE FIRST PHASE OF \nOPENING UP ACCESS TO PUBLIC TELECOMMUNICATIONS CONTRACTS BY A \nDIRECTIVE \n\non the opening of procurement contracts applying to public and \nprivate Telecommunications Administrations to which the Member \nStates confer exclusive or special rights. \u00b7i \n(:. The future participation of Telecommunications Administrations \nin the competitive markets requires more transparency in their \npurchasing behaviour. 22 \n\nVII. 2 \n\nINITIATION OF NEW ACTION LINES \n\nAs regarps new action lines needed to facilitate the transition \nt~wards a more competitive, Community-wide environment, the \nCommission believes that the-following are necessary \n\nI \n\nSUBSTANTIAL REINFORCEMENT OF THE DEVELOPMENT OF STANDARDS AND \nSPECIFICATIONS IN THE COMMUNITY / CREATION OF A EUROPEAN \nTELECOMMUNICATIONS STANDARDS INSTITUTE \n\nbased on the current co-op\u00e8ration of the Telecommunications \nAdministrations within CEPT and with CEN-CENELEC. A \nsubstantial reinf orcement of resources applied to \nstandardisation is a necessary requirement for a truly open \ncompetitive market. Jointly financed, the institute, based on a small core team of \npermanent staff and independently managea according to best \nbusiness practice, should draw flexibly on experts from bath \nthe Telecommunications Administrations a~d industry, in order \nsubstantially to accelerate the elaboration of standards and. technical specifications, indispensable for an open \ncornpetitive market environment and the development of \nEurope-wide;services. This action would build on and complement the Community's \ncurrent policy on telecommunications and information \ntechnology standards. 23 \n\nII COMMON DEFINITION OF AN AGREED SET OF CONDITIONS FOR OPEN \n\nNETWORK PROVISION (\"ON P\") TO SERVICE PROVIDERS AND USERS \n\nWorking out in common the principles of the provision of the \nnetwork to competitive service providers is a necessary \nrequirement for\u00b7 a Community-wide competitive market for \nterminal equipment and for competitive services, including in \nparticular value-added services, if a long period of \ncase-to-case decisions is to be avoided. This concerns in particular the definition of clear \nEurope-wide network termination points, usage conditions and \ntariff principles and availability of frequencies where \nrelevant. The work should be carried out by the Commission in close \ncollaboration with the Senior Officials Group on \nTelecornmunications (SOG-T), based on hearings with all parties \nconcerned. Subsequently, the Commission would submit a \ncorresponding Directive on ONP to Council. 24 \n\nIII COMMON DEVELOPMENT OF EUROPE-WIDE SERVICES \n\nFuture intra-Comrnunity communications will depend on achieving \nthree objectives : \n\nEurope-wide compatibility and inter-operability of those \nservices provided by the Telecornmunications \nAdministrations. In addition to efficient telephony and \ntelex, new services such as teletex, videotex, \npacket-switched and circuit-switched data services, mobile \ncommunications and the future ISDN, as defined in \nRecornmendation 86/659/EEC should be available universally \nat the European level. This could concern joint \nCommunity-wide service provision, network planning, and \ntariff principles \n\nRapid development of intra-Community provision of \nvalue-added services. at the Comrnunity level a number of measures aimed at \npromoting the emergence of European value-added services, \nbuilding on current efforts such as the TEDIS initiative. It is proposed to set into motion \n\nRapid d~~elopment of the Comrnunity's policy on the \ninformation market, to prornote Europe-wide information \nservices, in particular fully mobilising the potential of \nprivate initiatives. ,, \n\n' \u2022 ' 1 \n\ni. \\ \n:\u00b7 \nl \n/: \n): \nli' \n\n\f25 \n\nIV \n\nCOMMON DEFINITION OF A COHERENT EUROPEAN POSITION REGARDING \nTHE FUTURE DEVELOPMENT OF SATELLITE COMMUNICATIONS IN THE \nCOMMUNITY \n\nThe international satellite communications sector is currently \ngoing through rapid changes. described in Fig. 3, based on prevailing technological trends, \ncommon positions will in particular be required regarding \n\nIn the light of the positions \n\ndevelopment of the earth station market in Europe, in \nparticular with regard to common standards \n\nfuture development of satellite links (space segment), in \nparticular the relationships between EUTELSAT, national, \nand private systems, and the full use of the technological \npotential of the European Space Agency \n\ndevelopment of international-satellite communications, in \nparticular with regard to INTELSAT and INMARSAT. V \n\nCOMMON DEFINITION OF A COHERENT CONCEPT ON TELECOMMUNICATIONS \nSERVICES AND EQUIPMENT WITH REGARD TO THE COMMUNITY'S \nRELATIONS WITH THIRD COUNTRIES \n\nAn intensification of cc-ordination with regard to Third \nCountries and the position on the international regulatory \nenvironment is urgently needed. This concerns in particular the preparation of the new GATT \nROUND and future relations with international organisations \nsuch as the Internationai Telecomrnunications Union. 1 \n\nJ 1, \n\n' \n\u2022 \n\n~ \n'! \n\n\u00b7,. ~ \n\n! ~ \n\n~ ~ \n!;: \n\n; 1 \n:. 1 \n\n<1 \n\n\u00b7,/. :i \n\nl \n:1 \n\n'I \ni \n:; \n'\u00b7l \n1; \n:: \n\n1. ! \n\nl \n~' \n\n\f26 \n\n'. !. It concerns further the evolving relationship in this field \nwith the EFTA countries, with the United States and Japan and \nwith the Third World. VI \n\nCOMMON ANALYSIS OF SOCIAL IMPACT AND CONDITIONS FOR A SMOOTH \nTRANSITION \n\nIn the long term, the most important factor for the future \nevolution of the telecommunications and information technology \nsector and its regulatory environment, both at the national \nand the Community level, will be the degree of social \nconsensus which can be achieved regarding the new \ntechnologies. Common discussions and positions will be needed regarding the \nbest ways to master the shift in job qualifications required \nby the change in technology and to expand ernployrnent in new \nservice provision. An essential condition for achieving a true Cornrnon Market in \nthis area will therefore be the developrnent of a Europe-wide \nconsensus in the analysis of the social consequences of the \nnew technologies and the associated regulatory evolution and \npolicies. Analysis of the conditions for acceptability of new \nservices and activities, and the impact on work life and \nemployment will be a permanent task. ,) \n\n11 \u00b7 \ni' 1 \n\n1 \n1 \n\n1 \n\n: 1 \n1 \n\n1 \n\n\f27 \n\nThis must include continuous in-depth research of evolving \nuser requirements for the new services, taking fully into \naccount broader trends in economic activity, in the \ntransformation of life-styles and in the social concerns of \nthe European citizen. A vital contribution which can be made at Community level \ntowards evolving this consensus should be the launching of \njoint analysis and study, in order to lay a better factual \nbasis of knowledge, increase the perception of developments in \nt~e other Member States, prepare informed debate and \nfacilitate discussions and negotiations between the social \npartners. \u00b7: \u2022I \n\n\f1'. '1 \n\n; \n\n\u2022\u00b7' \n\nTOWARDS A DYNAMIC EUROPEAN ECONOMY \n\nG R E E N \n\nP A P E R \n\nON THE DEVELOPMENT OF THE COMMON MARKET \n\nFOR TELECOMMUNICATIONS SERVICES AND EQUIPMENT \n\n(Communication from the Commission) \n\n\fFOREWORD \n\nFacing a telecommunications ~nd information technology world \nmarket developing at full speed; the Community needs to establish \ncompetitive market structures which will allow it to match the \ndynarnism developed in this field by the United States and Japan. Efficient telecommunications n~twork infrastructures and \ntelecomrnunications services will be essential for the development \nof the Comrnunity's information technologies sector and the growth \nand flexibility of its economy as a whole ; for the completion of \nthe Comrnunity-wide market for goods and services by 1992 and the \ndevelopment of future trade flows within the Community and with \nits outside partners; and for the efficient functioning of \nenterprises; \n\nThe current wave of technical innovation resulting frorn the \nconvergence of telecornmunications and data-processing technology \nhas now led to reviews in all Member States of the future \norganisation of the telecommunications sector and its necessary \nregulatory adjustment. No Member State accounts for more than 6% of the world \ntelecommunications market. The United States account for more \nthan 35%, Japan for 11%. National reform of the \ntelecommunications sector in Europe will only be economically \nsuccessful if it is tied into the larger Community context. The Green Paper aims at launching the debate and attracting \ncomment from a broad spectrum of opinion : the Council ; the \nEuropean Parliament and the Economie and Social Committee ; \nTelecommunications Administrations and Recognized Private \nOperating Agencies, hereinafter referred to as \"Telecommunications \nAdministrations\" ; the European telecommunications, \ndata-processing, and services industry ; the users who must be the \nmain beneficiaries of the new opportunities ; and the trade unions \nand other organisations representing the social interests\u00b7in this \narea. the \n\nThe Paper aims at creating more freedom of action for the European \nuser ; for European industry ; and for the European \nTelecommunications Administrations. \u00b7,. _. :. '''. >_>( \n\n-. ~:?:~, \n\n-~k;_\u00b7. '. ~\u00b7-\u00b7\u00b7. ~-\n\nf i{b ' \n\n1. \". \u00b7. ,. \u00b7 \n\n,. ) \n\n:~. ~. /\u2022 \n: ~:~;. \u00b7. ~~\u00b7\u00b7 \u00b7. \u00b7\u00b7. ~r~,, \n\n4 \n\nl~ 1-:Lo. \u2022. ;. ;~\"> ~: \n\u00b7:'t. :. -~ \n\n\u00b71\u00b7:_1\\. ; \n\n-~ \n\n~ \\~:\u00b7 :~ \n\u00b7 -\u00b7~. c;. ~ i \n\n''. ri~ \n\n\u00b7~r;~;:?C \n\n\u00b7:f?\u00b7~ \n\n:_;-:. ~\u00e7~. 1\u00b7~!- 7 \n\n/~' \n\n\f; \n\n1 \n\n1 \n\n' \n\n1 \n\nTABLE OF CONTENTS \n\nI \n\nSUMMARY. 9 \n\nII \n\nTHE PURPOSE OF THE GREEN PAPER. 17 \n\nIII THE CURRENT ADJUSTMENT OF THE TELECOMMUNICATIONS. 24 \n\nSECTOR \n\n1. 2. The convergence of the telecommunic~tions,. 24 \ndata-processing and audio-visual sectors \n\nNew issues on the way towards a Community. 25 \ntelecommunications market \n\n3. The search for common positions. 26 \n\nIV \n\nTECHN ICAL ASPECTS. 2 8 \n\n1. Main technological developments. 28 \n\n1. 1. Growing \"intelligence\" of network and. 28 \n\nterminals \n\n1. 2. Changes of network economics. 29 \n1. 3. Development of \"single\". 30 \n\n(multifunctional) terminals \n\n1. 4. Development of the sophisticated,. 31 \n\nmulti-purpose Private Branch Exchange (PABX) \n\n1. 5. Development of intelligent. 31 \n\nprivate networks. 2. 3. 4. S. 6. The trend towards integration. 32 \nthe possibility of carrying many services via \n\none telecommunications network \n\nThe difficulty of defining boundary lines :. 33 \n\"basic\" services and \"value-added\" services \n\n3. 1. \"Basic services\". 34 \n3. 2. \"New basic services\". 34 \n3. 3. Provision of additional functionality. 35 \n3. 4. \"Value-added services\". 35 \n3. 5. Integrated Services Digital Network. 36 \n\nEvolution of Satellite technology. 37 \n\nEvolution of Cable-TV Technology. 39 \n\nConclusions. 41 \n\n\f2 \n\nV \n\nECONOMIC ASPECTS. 4 4 \n\n1. 2. 3. 4. 5. 6. 7. The growth of the service econorny. 44 \n\nFrorn local to traded services. 46 \n\nInvesting in the infrastructure. 48 \nfor tomorrow's service economy \n\nDeveloping the basic network infrastructure. 49 \n\nThe requirement for a more competitive market. 51 \n\nEmployrnent and social effects. 53 \n\nConclusions. 57 \n\nVI \n\nOUTLINE OF A REGULATORY FRAMEWORK. 59 \nTOWARDS WHICH CURRENT TRENDS COULD DEVELOP \n\n1. National approaches. 59 \n\n2. 3. 4. Convergent trends. 60 \n\nThe Common Market in terrnfnal equipment. 61 \n\nThe Common Market in telecommunications. 63 \nservices \n\n4. 1. Growing consensus: giving room. 64 \n\nfor new technological opportunities \n\n4. 1. 1. 4. 1. 2. 4. 1. 3. Competitive environrnent for. 64 \n\n\"value-added services\" \n\nNarrow definition. of exclusive. 64 \nprovision \n\"Competitive services\". 65 \n\n4. 2. Evolving towards a cornpetitive. 67 \n\nCommunity-wide market \n\n4. 2. 1. 4. 2. 2. 4. 2. 3. Growing tradeability of. 67 \ntelecornrnunications services \nCross border provision of services. 68 \nOpen Network Provision - ON P. 69 \n\n\f3 \n\n4. 3. Strong Telecornmunications. 70 \n\nAdministrations in a competitive \n\u00b7cornmunity market \n\n4. 3. l. 4. 3. 2. 4. 3. 3. 4. 3. 4. 4. 3. S. Provision of network infrastructure. 70 \nThree essential changes. \u00b773 \nrequired \nFinancial viability:. 74 \nTransparency and problems of cross. 76 \nsubsidisation \nTariff principles. 79 \n\n4. 4. Adjacent infrastructures/ services. 82 \n\n4. 4. 1. 4. 4. 2. 4. 4. 3. Satellite communications. 83 \nMobile radio communications. 87 \nCable TV networks. 88 \n\n5. 6. The Comrnon Market in network equipment. ~. 89 \n\nConclusions. 94 \n\n' \n\n'11 \n\ni i' \n! 1 \n\n' ~ 1 \n\n\f4 \n\nVII COMMUNITY TELECOMMUNICATIONS POLICY. 98 \n\nTHE ACHIEVEMENTS TO DATE \n\n1. Standardisation in Information Technologies. 99 \nand telecommunications and co-operation with CEPT \n\n1. 1. Objectives. 103 \n\n1. 2. Legal Instruments. \u00b7. 103 \n\n1. 2. 1. 1. 2. 2. Council Directive 86/361/EEC. 103 \nCouncil Decision 87/95/EEC. 105 \n\n1. 3. Organisational framework. 107 \n\n1. 3. 1. 1. 3. 2. 1. 3. 3. 1. 3. 4. 1. 3. 5. Memorandum of understanding between. 107 \nthe CEPT and the Commission \nThe guidelines on co-operation. 108 \nagreed with CEN/CENELEC \nPromoting the development of. 110 \nrecognised conformance testing centres \nCo-operation with industry. 110 \nThe continuing lack of resources. 111 \n\n2. Promoting the co-operative development of. 114 \nadvanced telecornmunications in Europe \n\n\u00b7 ~, ,\u00b7. :i. ~\u00b7. '. ~. ' \n\n~ ' -\n,-. '-. 2. 1. The RACE programme. 11-S \n2. 2. The Integrated Services Digital. 117 \n\nNetwork (ISDN) \n\n2. 3. Advanced telecommunications services. 119 \nfor the less-favoured regions (STAR programme) \n2. 4. Digital mobile communications. 120 \n2. 5. Trade Electronic Data Interchange (TEDIS). 120 \n\n3. Application of Community competition policy to. 121 \nthe telecommunications sector to date \n\n3. 1. The British Telecom Case. ;. 122 \n3. 2. The terminal equipment cases. 124 \n3. 3. The IBM undertaking on SNA interfaces. 126 \n3. 4. Other cases. 128 \n\nTransparency of public procurement procedures. 130 \n\n' \n\nConclusions. ~. 132 \n\n4. 5. 5 \n\nVIII TELECOMMUNICATIONS IN THE CONTEXT OF OTHER. 136 \n\nCOMMUNITY POLICIES \n\n1. 2. Telecommunications in the c6ntext of\u00b7\u00b7\u00b7\u00b7\u00b7\u00b7~\u00b7\u00b7\u00b7\u00b7. 136 \nthe Interna! Market \n\nTelecommunications in the context of the. 137 \nCommunity's R/D/T policy \n\n3. Telecommunications. as the basis of a free. 139 \n\nmarket for information \n\n3. 1. The Commission's Work Programme. for \u00b7the. 141 \n\ncreation of a common inf ormatio~ market \n\n3. 2. Legal issues affecting the free flow. 142 \n\nof information \n\n3. 2. 1. 3. 2. 2. 3. 2. 3. 3. 2. 4. 3. 2. 5. 3. 2. 6. Data protectipn. 142 \nCopyright. 143 \nAuthentication of transaction. 144 \nLiability. 144 \nElectronic Fraud. 145. Protection of confidentiality of the. 145 \ncontent of users' communications with \ninformation services \n\n4. Telecommunications and the Community's. 145 \npolicy for an audio-visual space in Europe \n\n4. 1. Creating the technical environment :. 146 \n\nCouncil Directive 86/529/EEC \n\n4. 2. The establishment of a European space. 147 \n\nfor broadcasting and television \n\ns. Conclusions. 148 \n\n\f6 \n\nIX \n\nTHE EXTERNAL DIMENSION OF A COMMUNITY. 150 \nTELECOMMUNICATIONS POLICY \n\n1. Telecommunications in the Uruguay Round. 151 \n\n1. 1. Scope. 151 \nServices. 151 \n1. 1. 1. 1. 1. 2. Telecommunications equipment. ~. 152 \n1. 2. Issues. 152 \nServices. 152 \n1. 2. 1. 1. 2. 2. Telecommunications equipment. 153 \n1. 3. Approach. 154 \n\n2. Requests by outside providers for inter-. 155 \nconnection and service provision \n\n2. 1. Growing international competition. 155 \n2. 2. Issues. \u00b7. 156 \n2. 3. Approach. 157 \n\n3. Relations with the Community's major trading. ~. 158 \npartners : EFTA, US, Japan and Third World \n\n3. 1. Co-operation with the EFTA countries. 159 \n3. 2. Dialogue with the United States. 161 \n3. 3. Relations with Japan. 166 \nAccess to market. 166 \n3. 3. 1. Standards. 167 \n3. 3. 2. 3. 4. Developing relations in telecornmunications. 168 \n\nwith other industrial countries \n\n3. 5. Relations with Africa, Latin America, Asia. 169 \n\nand the Mediterranean \n\n4. The future development of the international. 170 \ntelecomrnunications system \n\n4. 1. Standards and international connectivity. 170 \n4. 2. ITU and im~act on the Community's. 171 \n\nregulatory environment \n\n4. 3. International satellite. i \u2022 \u2022 172 \n\norganisations : INTELSAT and INMARSAT \n\n5. Conclusions. 174 \n\n\f7 \n\nX \n\nTHE INGREDIENTS OF A SOLUTION. 177 \n\n1. Major points to be considered for a solution. 177 \n\n2. 3. 4. The application of the Treaty to the. 179 \ntelecommunications sector \n\nPr~posed Community positions. 184 \n\nProposed Community Action Lines. 186 \n\n4. 1. Acceleration of existing Action Lines. 187 \n4. 2. Initiation of new Action Lines. ~. 189 \n\ni \n\n: ,' \n\n1\u00b7 \n\n' 1 \n\ni '. : \n\n1 \n\n:j \n1i:' \n1' \n' : ' \n~ \n:' \n\n:r \n\n\f8 \n\nAPPENDIX 1 \n\nTHE REGULATORY TRENDS IN THE MEMBER STATES AND \nTHE UNITED STATES AND JAPAN \n\nAPPENDIX 2 \n\nSATELLITE SERVICES IN EUROPE \n\nCURRENT TRENDS \n\nAPPENDIX 3 \n\nTHE EUROPEAN CONFERENCE OF POSTAL AND \nTELECOMMUNICATIONS ADMINISTRATIONS (CEPT) \nMECHANISMS AND CO-OPERATION WITH THE COMMUNITY \n\nAPPENDIX 4 \n\nINTERNATIONAL TELECOMMUNICATIONS UNION (+TU) \nIMPACT ON THE REGULATORY ENVIRONMENT OF THE \nCOMMUNITY \n\nGLOSSARY OF TECHNICAL TERMS \n\n:_. 9 \n\nI \n\nSUMMARY \n\nA technically advanced, Europe-wide and low-cost \ntelecommunications network will provide an essential \ninfrastructure _for improv ing the competi ti veness of the \nEuropean economy, achieving the Internal Market and \nstrengthening Community cohesion - which constitute priority \nCornmunity goals reaffirmed in the Single European Act. This \ndoes not only apply\u00b7 to services in generali such as financial \nservices, transport and tourism, which already generate \nnearly two thirds of Community GDP. It also applies to trade \nin goods ; and to the goal of European industrial \nco-operation. The emerging new telecommunications services - and notably \nso-called value-added and information services - will have a \nmajor impact on the future tradeability of services in \ngeneral and on the location of economic activities. Since 1984, the Community has made substantial progress in \nthis field. The objectives have been three-fold : \n\npromoting the creation of an advanced European \ntelecommunications infrastructure \n\ncontributing to the creation of a Cornrnunity-wide market \nfor services and equipment ; \n\ncontributing to the competitiveness of European industry \nand service providers. In followiqg these objectives, the Commission has, within the \nlast two years, made proposals and achieved rapid agreement \nby Council along five main lines : \n\ncc-ordination regarding future development of \ntelecommunications in the Community and common \ninfrastructure projects. This concerns in particular the \nprincipal future stages of network development \nIntegrated Services Digital Network (ISDN), digital \nmobile communications, and the introduction of future \nbroadband communications ; \u00b7 \n\nthe \n\ncreation of a Community-wide market for terminals and \nequipment. Promotion of Europe-wide open standards, in \norder to give equal opportunity to all market \nparticipants ; \n\nl i \n1. '. \u00b7; \n:1\u2022' \ni' 1 \n1 \n\n1 \n\n11~ f \n\n!' \n1. ' \n\n\f10 \n\nthe launch of a programme of pre-competitive and \"pre \nnormative\" R&D covering the technologies required for \nintegrated broadband communications {the RACE programme) \n\npromoting the introduction and developrnent of advanced \nservices and networks in the less-favoured peripheral \nregions of the Comrnunity ; \n\nbuilding up common European positions with regard to \ninternational discussions in this area. In 1986 alone, Council achieved agreement, on proposal by the \nCommission, on six major measures which will become fully \neffective during 1987. A detailed overview of decisions taken \nand of proposals currently before Council is given in Chapter \nVII. In parallel, the Commission has taken up a number of cases, \nrelated to the opening of telecornmunications markets, under \nthe Treaty's competition rules. Building on the progress achieved, it now seems timely to \ninitiate a common thinking process regarding the fundamental \nadjustment of the institutional and regulatory conditions \nwhich the telecommunications sector now faces. This \nworld-wide transformation is due to the profound technical \nchange which is currently taking place : the progressive \nmerger of telecornmunications, data-processing, and, \nultimately, audio-visual and TV technology. Telecornmunications took 140 years to develop from a single \nservice to a dozen services in the early eighties. The new \ntechnological capabilities will now lead to explosive growth \nand multiplication of services and applications within a \nsingle decade. [Fig. l] \n\nIt is the management of this transformation which sets the \nscene for the current adjustment of the organisation of the \nsector and the reviews in all Mernber States. As set out in this Green Paper, the Community must make sure \nthat : \n\nthe necessary European scale and dimension are introduced \ninto the current phase of transformation ;. , ~r1. !-_. ;'. i~~::i \n:::\u00b7m'. I). :\u00b7~r: \n~ro; \n\n~j \n\n:. '. i:{{i:\u00b7; :] \n%:1''J \n\n\u00b7~\u00b7 ;1~ \n\n\u00b7\u00b7~/jl. :1~~. '7. ~ \n\u00b7~ \n\u00b7~::~; \n\n=. =. t. i:. :. ,J \n\n' -~;,. ~~5. l \n:;~~J;. \u00b7'i;~r;\u00cerr?. ;;~~. ,!~%; \n---3 \n\n\fTELECOMMUNICATIONS: \nPROSPECTS FOR THE Y\u00cbAR 2000 \n\n/ \n\nTelegraphy \n\n~ Telex \n\nTelegraphy \n\n\u00b7 Broadband data \n\n_ ~Telegraphy \n\nTelegraphy \n\nPhoto \nFacslmile \n\nPhoto \nFacslmile \nFacslmlle \n\nHigh-speed data \n\nMedium-speed dot \n\nLow-speed data \nPhoto \nFacslmile \nFacslmlle \n\n1 Circuit\u00b7switched \ndata \nT elemetry \nFacslmile \nTel et ex \nFacslmlle \nVldeotex \nTelephony \nVideocon. ~rance \n\nTelephony \n\nTelephony \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1920 \n\n1847 \n\n1877 \n\nTelephony Telephony \n\nTelephony \n\nSound Stereo hifi sound \n\nColour televi~ion \n\nColour television \n\nStereo \nhifi sound \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\ni \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n1930 \n\n1960 \n\n1975 \n\nPacket-switched data \nCircuit \u00b7switched polo \nTelemetry \nTeletex \nText facsimile \nFacsimile \nColour facsimile \nElectronlc Mail \nTelenewspoper \nVldeotex \nSpeech facslmlle \nTeJephony \nHifi telephony \nTelephone-conference \nVldeoconference \nVldeotelephony \nStereo hifi sound \nQuadrophony \nColour televlslon \nSt. ereo televlslon \nHigh\u00b7deflnitlon televlsion \nMobile vldeotelepho ny \nMobile telephony \nMobile text \nMobile facsimile. Mobile data \nMobile vldeotex \nPaging. -\n\nFig. Source: Consorlium British Telconsull/Consullel/Delecon/Neposlel/Sofrecom el al. 2 000 \n\nl\" \n'. , \n\u00b7il:~ 1\\:, \n\n1:. : \n1:'. S\u00b7\"\u00b7\u00b7~\u00b7 ~~--~'---~\u00b7. _ \u00b7--- - ~-. -_---f-=-----~~----==-=~-===-------~---~-~~-~~~~:7-;~-~~---~~--~-=-=~~~~~~~~~~-~~\u00b7-~:\u00b7:~~\u00b7~>~~~-:~~~~~-~~~-~\":-=~=-=--=--=-- -\n\n\f' 1 \nl. ~;j \n\n11 \n\nno new barriers are created within the Community during \nthe adjustment of regulatory conditions ; \n\nexisting barriers are removed in the course of the \nadjustment. I \u00b7 \n\nThe search for common positions in the complex field of future \nregulation of the telecommunications sector must take into \naccount a number of major requirements, if it is to contribute \nto strengthening the European economy : \n\nfirstly, differing regulatory traditions in the sector. Careful analysis of current reviews and debates in the \nMember States must identify those areas on which common \npositions can be reached. It is on those areas that \nefforts towards developing consensus should be \nconcentrated, in order to increase convergence over time \nin the Community ; \n\nsecondly, opportunities and obligations deriving from the \nTreaty, in particular regarding : the free movement of \ngoods ; the freedom to provide services ; competition \nrules ; the comrnon commercial policy ; \n\nthirdly, the external relations of the Community, in \nthe \nparticular regarding its major trading partners \nEFTA countries, the. United States and Japan, the Third \nWorld. The opportunities and obligations deriving for the \nCommunity from the GATT agreement and the new GATT Round \nmust be taken into account. The impact on the Community's \nindustrial and trading position must be kept clearly in \nmind ; \n\n-\n\nfourthly, the convergence of social perceptions in the \nMember States regarding the new technologies. This \nconcerns the social consequences of the new technologies \nand associated regulatory policies, the conditions for \nacceptability in both private and work life, and measures \nto facilitate the transition by generating new employment \nopportunities and protecting legitimate interests. The convergence of telecomrnunications, data-processing and \naudio-visual technologies is outdating traditional boundary \nlines between the telecommunications network and the terminals \nsector, and between services traditionally provided under \nmonopoly and those provided in a competitive environment. Satellites are now able to provide services within and between \ncountries, at a world level. \u00b7 \u00b7. ~ \n\n\f12 \n\nThere are now many service functions and features that can be \nperformed either by the public network or by a private network \nor the terminal equipment attached to the network. All \ncountries are confronted by two options : \n\neither to try to maintain the current regulatory \nframework, which woul \n:xJ \n~ \nm \n0 \nCJ) \n-< CJ) \n-i m \ns \n\n25 \n\n(f) \n\n'1 \n\n1 \n\n1 \n\nj \n\nSoir ce : A. n Li 1tle. ,, \n\n-J. \n::>. \n\n(,11 \n\n5\" \n0 \n3 \n0 \n::r. 0 \n:::> \n\n1 \n\n' ' ' \\ \n\n\"f\\od ~ctlon\" \n\n\\ \n\n(loopl) services \nbanlmg \nlnsura~ce \nlegal \n\\ \ntax acco~tlng \nconsultlng \\ \nresearch \n(transport) \neducatlon \n\n' \n\n' \n\n' , \n\n', \n\n~ \n\n\"\"' \n\n~ \n\nr\"'. ~\u00b7 -\n\n'~J;. r_w_o_B-~g,----\n\u2022. ~. \u00b7 \n\n* \n\n\"' \n\ni+ \n\n~\u00b7 \n\n'. ~. ,~ \n\n\u00b7~ \n\n~ \n\n\f47 \n\nOne example is provided by the problem of the Community's \nperipheral regions. At present, these are prevented from \nmaking a full contribution to the European economy both by \nphysical transport costs and by an often sub-standaid \ntelecomrnunications infrastructure. As the \"knowledge-content\" \nof economic output increases, this last factor represents a \nlarger danger of isolation than mere geography ever did. On the other hand, proper telecomrnunications can suppress \ngeographic distance like no other technology before. They \ncan also, at very low cost, supply missing inputs in economic \nregions characterised by \u00b7an uneven scierttific, technological, \nand services infrastructure. An accelerated programme of \ninvestment in digitised, and later broad-band, technologies, \nas foreseen in the STAR programme (see Chapter VII), could \nturn the potential danger to the development of the periphery \nposed by the informatics society, into a unique opportunity \nto overcome the handicap of geographic isolation. 1 1 \n\nA second example is the impact of telecommunications \ninfra-structure and regulation on the location of tomorrow's \ninformation based-service industries. Services like data \nbanks, data-processing and, more importantly, financial. services, are highly sensitive to infrastructure and the \nconditions under which that infrastructure can be used. It is on these two elements : technical quality and access \nconditions to the telecommunications infra-structure, that \nEurope must compete for the location of the \ntradeable-services industries of tomorrow. For the sake of the eff iciency and competitiveness of the \nusers of services, access to the best information is crucial. Equally, European firms producing marketable knowledge -\nengineers, market analysts, etc. - have an interest in a \nfunctioning global network of communications through which to \nsel! their products. Easy two-way access of European service \nproviders and users to the global market is therefore \nnecessary. On the other hand, if Europe's interna! services market \nremains fragmented, and hampered by restrictive access \nconditions, economies of scale will faveur outside suppliers \nwith large home markets. Such an outcome would have obvious \neffects on employment ; and less tangible effects on the \ncontent of knowledge. ;,. 11 \n\n\f48 \n\nThe Commission has made, and is making, efforts to create a \nEuropean information market (see Chapter VIII). It is now for \nthe regulators and providers of telecomrnunications services \nto create the technical and regulatory conditions to let that \nmarket flourish. 3. Investing in the infra-structure for tomorrow's service \neconomy \n\nProvided the present opportunity for 91v1ng a modern \nregulatory framework to the telecommunications sector is \nused, short-, medium- and long-term growth and employment in \nthe Community could receive a decisive boost from : \n\nthe investments to be made in telecommunications network \ninfrastructure ; \n\nthe investments stimulated in the terminals \nmanufacturing industry and the new telecomrnunications \nservices ; \n\nthe lowering of costs in industry and service in the \neconomy as a whole. Total investment by the Community's Telecommunications \nAdministrations per annum is running currently at \napproximately 17 billion ECU (1985). Such investment has a high short-term multiplier in \nmacro-economic terms : 1 billion ECUs invested brings \n1. 5 billion in extra activity directly. In addition, \ninfrastructure investment has a very high multiplier effect \non the terminals market and the market for (new) \ntelecomrnunications services, doubling its direct impact. Telecommunications repr_esent the biggest and most signif icant \ncivil investment in new technologies and services in the \nComrnunity in the foreseeable future. \u2022I \n\n~ \n\n\u00b7l. J,. 49 \n\nAt least as -important as the macro-economic ef f ects of a \nflourishing European telecomrnunications sector is its \nstrategic importance for the micro-electronics and \ninformatics sector of which it is part, and which is \ngenerally considered the key to Europe's econornic future. Telecommunications not only provides just under a fifth of \nthe market directly for the products - micro-chips, \ncomputers, software, etc. - of this sector. i \n'I \n\nThey also create market opportunities for the industry \nindirectly by enhancing the use, and usef~lness, of presently \nunconnected, non-comrnunicating computers i~ the home, school, \nand, above all, office and factory. The ability of the \nEuropean micro-electronics and telecomrnunications industries \nto capture an adequate share of an expanding market at home,\u00b7 \nand hence to be able to compete abroad, must be a major \nconcern. To reap these economic benefits, the telecommunications \nsystem of the future must fulfil two,\u00b7 partially \ncontradictory, conditions : \n\nThe scope for market forces, competition and innovation \nmust be increased, both for manufacturers and for \nservices providers in the Comrnunity ; \n\nAt \u00b7the same time, the financial viability of the network \ninfrastructure providers must be assured if they are to \nengage in the massive front-loaded investment needed to \nprepare the infrastructure of tomorrow's service \neconomy. 4. Developing the basic network infrastructure \n\nThe policy f ramework in which this infrastructure investment \ntakes place has major implications for the supplier \nindustries and the network providers. The network providers must be in a position to finance the \nrequired investments. The obstacles to this lie partly in the \nregulatory context. But the economics differ for the \nextension of current first-generation services (telephony and \ntelex) on the one hand, and preparing for second and \nthird-generation services on the other. : 1 \n\nIl, \n,) \n_\u2022\u00b7. ~ \n\n\f50 \n\nTelephone penetration is still relatively low in many parts \nof the Community. Expanding basic telephony is thus an \neconomic proposition for the carriers, even without taking \ninto account the broader impact on business eff iciency and \noverall welfare. If that investment has not yet been \nforthcoming, it has often been because of controls on both \ninvestment plans and user tariffs in pursuit of laudable \nshort-term macro-economic goals, but damaging a dynamic \nsource of overall economic growth in the process. The problem is more complex as regards investment in \ndigitised and broad-band capable infrastructure for the \nfuture advanced services. This is rendered difficult by the \nf act that there will be a considerable time lag between the \ninvestment and its full commercial benefit. This is a \nfamiliar problem in telecommunications. But today it is \nrendered much more acute by two factors : \n\nthe novelty of the technologies - requiring innovation, \ninvestment and market development on the part of the \nuser and industry far more complex than that involved in \nthe spread of simple telephony ; \n\nthe necessity of making assumptions about traffic growth \nregarding uses which are still net in existence, such as \nfuture video-services. Yet unless investments by the main network infrastructure \nprovider(s) are carried out on the requisite scale now, \nmanufacturers or terminals and service providers will not \nhave the security and incentive to engage in the -necessary \nR&D and capital investment in their turn. Since it is\u00b7 in the public interest that this potential \ndeadlock be broken, it must be the part most closely under \npublic control, i. e. , the central network infrastructure , \nwhich takes the lead. It must be ensured that the new digital \nnarrow-band and broadband infrastructure will be provided in \nall Member States within a reasonably equal time to ensure \nthe pre-requisite for future efficient national, \nComrnunity-wide and world-wide communications; essential both \nfor future economic and social development but also for \nemergency and security purposes. 1 \n\n1 \n\nl \nl \n\n1. ~ \n\n\u2022\u2022 \n\n\u2022 \n\n\f51 \n\nTo ensure that this costly investment task is carried out1 \nre-regulation of the telecommunications sector must safeguard \nthe revenue-earning capacity of the central network \ninfrastructure provider(s). This includes reasonable \nprotection against excessive \"cream-skimming\" : exploitation \nby competitors of the most profitable parts of the market \n(i. e. , high-density business traffic}. S. The reguirement for a more competitive market \n\nAgainst this must be set the reguirements of the rest of the \ntelecommunications system which is served by the central \nnetwork : new services and an increasingly specialised and \nsophisticated terminal market. The digitisation of switching and transmission, and the ever \nincreasing capacity of semi-conductors and transmission media \n(fibres and satellites) are creating new needs and \nopportunities for voice, data and ultimately video \ncommunications (see Chapter IV). Two facts stand out \nregarding these developing telecommunications markets \nare an essential part of the emerging information-based \nservice economy ; and they are specialised, innovative, and \ntherefore very dif f erent f rom the centrally provided \ntelecommunications services of the past. they \n\nNon-voice \"value-added/enhanced services\" presently \ndesignated as such in Europe (for the def initional problems \nsee Chapter IV) include services such as EDP time-sharing and \ndatabase services, videotex services, ticket reservation, \nautomatic bank tellers and other financial services, other \nretail services including teleshopping, electronic data \ninterchange within industries for ordering, supply, etc. , \nrnailbox services, wordprocessing/facsimile/telex \ninterfacing/protocol conversion, telernetry and telecontrol \nservices, etc. services, new specialised telephony-like services sueh as \nconference calls, deferred transmission, telephone message \nservices, are emerging. In addition to non-voice value-added \n\nVideophone, videoconferencing and other inter-active services \nto be provided over the future broad-band network are being \nintroduced at the pilot stage in some Member States ; and \namong several Member States due to Comrnunity prornotional \npolicies. ) \n\n7). Ji \n\n\f52 \n\nMany of these services require specialised software, and many \nof them special, or specially adapted terminal equipment, \ni. e. , computers which store, switch, and display \nmessages/signals. Even when the terminal is a simple persona! \ncomputer (in the US 25% of PC's are already connected \nto the \ntelecomrnunications network; for the Community this ratio is \nestimated at 10%), there is a knock-on effect on that market \nin terms of quantity and performance. In nearly all Member States, approval of user premises \nequipment was historically controlled by the \nTelecomrnunications Administrations - who often acted as \nsupplier, hence competitor, to the private sector. Similarly, \nthe right to provide new services is in many cases reserved \nto, or controlled by the Telecommunications Administrations. It has now become less appropriate in terms of \n\nThis situation was acceptable when the number of services and \nof dif f erent types of user terminals and equipment was very \nlimited. management of change and of economics. An excessively \nrestricted structure of supply deprives the emerging \ntechnologies of the creative impulses of a competitive \nmarket. This therefore constitutes one of the reasons for \nthe current efforts of the Member States at re-regulating the \ntelecommunications sector. In certain cases, the providers of basic network \ninfrastructure and services, may indeed be in the best \nposition to act as innovator : especially when introducing \nthose of the new services which are destined to become \nuniversal, such as the basic ISDN network infrastructure and \nthe videophone. They can generate high volumes more quickly, \nas has been demonstrated with the introduction of the \nTeletel/Minitel service in France, setting up a positive \nspiral of lower cost, fast diffusion, hence greater \nusefulness for subscribers. But in general, an open, competitive market for new service \nproviders and terminal manufacturers can rnake a substantial \ncontribution to the rapid spread of the new services, under \nthe current conditions of rapid development of technology and \nmarket opportunities. ~ \n\n\u2022 \n\n\u2022 \n\n\f53 \n\n1' \n\n1 \n\nSecuring a wide range of choice for the consumer requires \ncreating this flexibility for all European market \nincluding the strongest ones : the \nparticipants -\nTelecornmunications Administrations \ncc-existence of dominant and other providers in a competitive \nmarket can lead to complex \nexperience elsewhere has shown. regulatory problems, as \n\neven if the \n\n6. Employment and social effects \n\nIn the Comrnunity's co-operative growth strategy for more \nemployment, \"paying due regard to the social aspects, the \nadaptability of markets for goods, services, capital and \nlabour must be improved, and, in particular, the \nestablishment of new firms, the development of vocational \ntraining and the introduction of new technologies must. be \npromoted. \u2022 \n\n\"The reinforcement of the potential_for growth and the \nresulting employment performance necessarily go hand in hand \nwith structural adjustment. But this structural adjustment \nwill be that much smoother if it unfolds against a background \nof dynamic growth in which the social dimension of the \nadjustment can be more easily taken into consideration. \" \n[Annual Economie Review 1986-1987, European Economy, No. 30, \nNovernber 1986, p. 9, 61. ] \n\n1 \n\n'' 1 ' \n\n1\u00b71. The ernergence of an advanced and efficient European \ntelecommunications system will cause deep changes in the \neconorny : more efficient organisation of production, \nnarrowing differences in geographic location, growing \nefficiency / \nmagnitude cannot fail to have a deep \non the nature of work. innovation of services, etc. Changes of this \n\nimpact on society and \n\nThe broader social impact ranges frorn changes in leisure \nthrough new forrns of inter-personal and inter-group \ncommunication made possible through inter-active broadband \ntechnologies to decentralised individual education. The \npossibilities offered for those rnost isolated in society, \ninvalids and the elderly, are only beginning to be explored. The enhanced possibilities for the flow of information must \nbe matched by the development of legislation serving to \nprotect the public interest in certain key areas, notably the \nprotection of privacy of the individual (see Chapter VIII). li \n'. 1. : \n1'. !\\' \n\n: 1 \n,1 \n\n! ' \n\n' \n\ni \n\ni. :1: \njl:i \n\n\f54 \n\nAs regards the level of employment, the macro-economic growth \neffects point clearly in the direction of overall job \ncreation, although, in the short term, labour displacing \nef f ects can still be expected in the telecommunications \nindustry and in the Administrations. that by the year 2000, up to 60% of al! employment \nopportunities in the Community will depend heavily on the \ntelematics technologies. It has been estimated \n\nFor one sector of the emerging communications market, the \nexchange of data, i. e. , the linking of computers, the impact \nwill corne earlier. Present narrow-band networks, upgraded \nthrough digitisation and the introduction of ISDN, allow \nconsiderable expansion of data exchanges, especially if \nregulatory obstacles to such expansion are removed. Here the \nquestion of the ernployrnent and social impact rnerges with that \nof informatics in general. For one effect of better \ntelecornmunications is simply to increase the value of \npresently unconnected computers and/or reduce the cost of the \nservices they can provide - and hence accelerate the spread \nof information. Wordprocessors become terminals for \nelectronic mail or facsimile tele-printing ; data banks \nbecome accessible to more customers, etc. Most directly concerned by the technological changes are \nthose employed by the Telecornrnunications Administrations and \nby telecommunications industry. The Telecomrnunications Administrations employ nearly one \nmillion people in the. Member States. The telecommunications \nequipment industry employs a further 350,000 people. Those \nwhose work is the maintenance and operation of \nelectromechanical telephone exchanges are faced with the \nprospect of prof ound changes in the nature of their jobs \nresulting from the introduction of computer-controlled \nexchanges. \u00b7\u2022 \n\n\u2022. e \n\n\u00b7. e \n\n\f55 \n\nWays to counter-balance this must be found. The most \nimportant compensation can be achieved on the basis of the \nactive introduction of new telecornrnunications services. \"PTT's must meet the needs and demands of all customers by \nextending the range and improving the quality of services \nthey provide\". to master and use technqlogical developments and must ensure \nthe most efficient use of public resources\" (19th European \nCongress, Postal, Telegraph and Telephone International \n(PTT!) \u00b7unions, Copenhagen 1986). \"To this end PTTs must have the possibility \n\nIn a period of far-reaching changes in the job \n\nIn order to ensure a smooth transition towards new job \nopportunities created by the growth of new services, \nappropriate schemes for retraining and mobility of personnel \nare needed. content of a high number of employees suff icient \nconsideration for employees' needs for security and for \nassistance will need to be shown by all those concerned. Moreover, mobility schemes should be so designed as to take \ninto account the social problems which may arise for the \nworkers concerned, particularly when they imply the \nrelocation of the workers and their families. Only with the \nfull co-operation of all personnel can the needed changes in \nthe methods, tasks and technology of telecornmunications \noperations take place. It will be in the employees' medium-and long-term interest to \ncreate in Europe for this sector a growth-oriented stable \nenvironment. But acceptance of change and a smooth transition \ncan only result from an intensive dialogue with the social \npartners at the national and the Community level. This must \nbe an important consideration for any modification of the \nconditions under which the sector operates. In the long-term, the most important factor for the future \nevolution of the telecornmunications and information \ntechnology sector and its regulatory environment will be the \ndegree of social consensus which can be achieved regarding \nthe new technologies. ' : 1 \n\n'::[ 1 \n\n1l1. 1 \n\u2022 1 ' !. \u2022 \n! !1\u00b7:1 \n\n,':' J \n1. 1. 1 \n'\u00b7i 1 \n\n1 \n\n' \nj \n1 \n' ~ l \n\n\f56 \n\nAs pointed out in a joint statement of UNICE, CEEP and ETUC, \n\"the internal market must be completed rapidly. This will \nmake it possible to release considerable growth potential \nwhich will reinforce the positive effects which the \nimplementation of the co-operative strategy will have on \ninvestment and growth. Completion of the internal market \nshould be accompanied by taking account of social policy and \nby the development of structural policies to strengthen the \nCommuni ty' s economic and social cohesion as i t is \u00b7def ined in \nthe Single European Act. \" (Joint opinion of the Social \nPartners on the co-operative strategy for more employment, \n\u00b7 \nEuropean Economy, November 1986, p. 109. ] \n\n,. 1 ,. i \n\nj \u2022\u2022 \n\n1 \n\nF~ \n\n\f57 \n\n7. Conclusions \n\nWith the emergence of the service economy, a strong \ntelecommunications infra. structure becomes an essential \ncomponent for promoting \u00b7a harmonious. development of economic \nactivities throughout the Comrnunity and for achieving the. Comrnunity-wide market for goods and services by 1992. The emerging new telecommunications services - and \nnotably value-added services - will play a major role in \nthe \nlocation of economic activities ; \n\nfuture tradeability of services in general and the \n\nThe f inancial viability of the Telecommunications \nAdministrations must be maintained in. order to ensure \nthe build-up of the new generations of \ntelecomrnunications' infrastructure and the required \ninvestments and to guarantee efficient national, \nCommunity-wide and world-wide communications, essential \nboth for the future economic and social development but \nalso for emergency and security purposes ; \n\nTh~ new services and terminals reguire market conditions \nwhich faveur innovation, experimentation, and a high \ndegree of flexibility : a more open competitive \nenvironment is required ; \n\nSecuring a wide range of choice for the consumer \nrequires that the Telecommunications Administrations be \nable to participate together with others in those \nmarkets which are opened to competition even if the \ncc-existence of dominant and other providers in a \ncompetitive market may involve complex problems of \nregulation. The emergence of an advanced European telecommunications \nsystem will have a deep impact on society and on the \nnature of work. The broader p\u00e0ssibilities for information flow must be \nmatched by the development of legislation serving to \nprotect the privaci of the individual. 1 \n\n1 \n\n1 \n\nl \ni \n\n1 \n\n\fi <. i \n\n1 t !\u00b7 \n{ \n\nt> \n\n58 \n\nQuestions of employment are a major aspect of the \ntransition. In the Community, Telecomrnunications \nAdministrations employ one million people, while the \ntelecommunications equipment industry employs a further \n350,000 people. Employment growth requires a growth-oriented policy, \nparticularly in the future conglqmerate sector of \ncommunications/information technologies within which \njobs will shift from traditional activities to new \nopportunities. An intensive dialogue with the social \npartners will be necessary in order to ensure a smooth \ntransition. In the long term the most important factor for the \nfuture evolution of the telecornrnunications and \ninformation technology sector and its regulatory \nenvironment will be the degree of social consensus which \ncan be achieved regarding the new technologies. Fig Sa/b surnrnarises key data on the economic importance of \nTelecomrnunications in the Community. Fig. 5 {a) \n\nOYERYIEW or TEL[CORRUIIClTIOIS Il THE CORRUIITY \n\nTelephone Sets connected to the public Network \n( 1000) \n\nNu1ber of Main lines \n( 1000) \n\nTotal Staff in Teleco\u2022\u2022unications Services \n( '000) \n\nTotal Inco1e fro1 the Telephone Service \n(1illion ECU) \n\n1984 \n\n1985 \n\n160,290. 167,715 \n\n108,40 \n\n113,805 \n\n940 \n\n936 \n\n48,182 \n\n53, 127 \n\n'1 \n\u2022 1 \n\nTotal Inco\u2022e f ro1 all Telecommunications Services \n(1illion ECU) \n\nTotal annual gross invest1ent in Teleco11unications \nexcluding land and buildings \n(1illion ECU) \n\nAnnual gross invest1ents in telephone switching equip1ent \n(1illion ECU) \n\nTelephone main lines per 100 inhabi tants \n(% average) \n\nTelephone stations (sets) of all kinds per 100 inhabitants \n(i average) \n\n54,459 \n\n62,556 \n\n15,872 (1) \n\n17,037 (3) \n\n3,075 (2) \n\n3,100 (4) \n\n33. 7% \n\n49. 9% \n\n35. 3% \n\n52. 1% \n\n-------------------------------------------------------------------------\n\nSource : latest edition of the International Teleco11unications Union (ITU) \nYearbook available - 1987 edition \n\nIreland 1983 - Italy excluded \nIreland 1983 \n\n(1) \n(2) \n(3) France and Greece 1984 - Italy excluded \n{4) France and Greece 1984 - Den1ark, ltaly and United Kingdo1 excluded \n\n- Denurk, Italy and United Kingdo\u2022 excluded. :, \n1: \n\n; \n\n; \n\n,1 \n\ni \n:1 \n~ \\ 1 \n\ni. 1 \n\n~ 1 \n\n\fFigure 5 (b) \n\nN\u00b0 of telephone sets 1 Main lines 1 T o t al Staff i n \n1 \nconnected to the \n1 \n1 public network ( 1000) \n1 \n1 \n1 \n1 \n\n1 \n1 \n1 teleco\u2022\u2022unications 1 all telecoa\u2022unicationsl \n1 services ( 1000) \n1 services (\u2022illion ECU)j \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n1 Total incoae fro\u2022 \n\n( 1000) \n\n3061 \n\n4346 \n\n1394 \n\n28 \n\nCountry \n\nBelgiH \n\n0. Hark \n\nFruce \n\nCtraaay F. R. Creece <2> \n\nIrelaatl \n\nItaly \n\nluHbHrg \n\n1 \n\n1 \n1 \n\n1 \n1 \n\n1 \n1 \n\n1 \n1 \n\n1 \n1 \n\n1 \n1 \n\n1 \nTbt letherlaa4s 1 \n1 \n\nPortugal \n\nSpab \n\nUl \n\nEEC \n\n4005 \n\n2543 \n\n17 {l) \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n34347 \n\n37899 \n\n3721 \n\n942 \n\n23032 \n\n25589 \n\n3111 \n\n703 \n\n25615 \n\n17396 \n\n252 ( l) \n\n8840 \n\n1835 \n\n14259 \n\n154 \n\n5822 \n\n1400 \n\n9340 \n\n31654 ( 4 ) \n\n21654 \n\n167715 \n\n113805 \n\n167 \n\n212 \n\n31 \n\n16 \n\n110 \n\n0. 7 \n\n29 \n\n23 \n\n72 \n\n230 \n\n936 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n' 1 \n\n1 \n1 \n1 \n1 \n1 \n\n1179 \n\n14182 \n\n15108 \n\n714 \n\n624 \n\n8351 \n\n74 \n\n2542 \n\n856 \n\n3293 \n\n14239 \n\n62556 \n\nSource : ITU Yearbook of Coaaon Carrier Teleco1munications Statistics - 1987 \nReferenee year : 1985 \n\n~!~ Source : Statens Teletjeneste \n(J) Source : OTE \n(4) Sou~ce : luxconsult \n\nestnate \n\n1 \ni \n\n1 \n\n1 \n\n1 \n\n1 \n\n'1 \n\n'J \n\n\\V \n\ntt'I~ \n\nf \n\n\u00b71 \n\n(;> \n\n1 -\\ \nl 1 \n\nl \n\n1 \n~ \n\n*\u00b7 \n\nf!/J. '. 1 \n\nJ \n1 \n1 \n_: \n\n\f59 \n\n1 \n\nVI. OUTLINE OF A REGULATORY FRAMEWORK TOWARDS WHICH CURRENT TRENDS \n\nCOULD DEVELOP \n\nThe main aims for the Community compatible with technical and \neconomic development and with current trends in the Member \nStates should be the f ollowing : \n\na common market in telecommunications terminal \nequipment ; \n\na common market in telecommunications. services \n\na common market in telecommunications network \nequipment ; \n\n1. National approaches \n\nAn overview of the main characteristics of regulatory \ndevelopments in each Member State is provided in APPENDIX 1, \ncovering : \n\n1 r \nJi \n\nl j \n\ncurrent features of telecommunications \n\nthe current regulatory erivironment ; \n\nthe main features of the current regulatory debate and \nexpected developments. Fig 6 and 7 illustrate the current situation in the Community. Certain Mernber States have already separated the regulatory \nfrom the operational funct~on, others have not. The United \nKingdom has licensed two Public Telecomrnunications Operators, \nwhich are in competition ; the other Member States either only \none each, or provision by several, but non-competing entities \nsuch as in Denrnark and Italy. Postal and telecomrnunications \nfunctions are split in the United Kingdom, Belgium, Greece, \nIreland and Portugal and are about to be in the Netherlands, \nwhile they are not in others. Telecornmunications \nAdministrations in the United Kingdom, Spain and Italy are \ninvolved in manufacturing; \nforbidden from entering the manufacturing sector. in Germany the Bundespost is \n\n,. i ' \n\n'1 \n\n1 \n1 \n\n! \n'. , \n\n-\n\n:;_. _ \n\n:7\u00b7. :. \u2022 -~ -\n\nFigure 6 \n\nCHANGES IN THE PROVISION OF TELECOMMUNICATIONS \n\nIN THE COMMUNITY \n\n' \n\nCoumtry \n\n1 \n1 \n+-------~~~~--~~~~--~~~~~~--~~~-+---\u2022_r1_\u00b7e_\u2022_t_at_i_\u2022_n_s~>~~~------~~I \n\n(changes si\u2022ce 1977 aRd futare \n\n1977 \n\n1987 \n\n\u00b7 _:_. \u00b7 \n\nFrance \n\nBelgiua. \u00b7 ! \u00b7. -:. \u00b7 \u00b7 -\u00b7\u00b7\u00b7 \n\nRTl (R\u00e9gie des T\u00e9l\u00e9graphes et des \nT\u00e9 liphones), \u00b7 \nreporting to the Secretary of St~te of \nthe Ministry \"of Posts and \nTelec onunications. \u00b7 \n\n1 P&T, Government Oepartaent, reporting to \n1 Minister of Public Works. Telegraphs, \n1 sou telephone \nj KTAS, JTAS (50% state-ovned) and PKT \n1 (owned by local authorities) telephone \n1 only. 1. 1 \nPossibility of transforaing RTT \ninto an entity with a auch greaterl \n1 \ndegree of autono\u2022y is under \ndiscussion (\"four wise aen\" \n1 \ncouission). 1 \n--~~--~~~----~~~----~--~~~~~r------~--~----~-------' \n1 \n1 Following the report of the \n1 \nOen\u2022ark \n1 Bernstein Co\u2022\u2022\u00cettee (1985), so\u2022e 1 \n1 restructuring took place in 1986. 1 \n1 Statens Teletjenste runs national 1 \n1 \n1 trunk network and international \n1 \n1 services. 1 \n1 \n1 \nOGT (Direction G\u00e9n\u00e9rale des T\u00e9l\u00e9c08\u2022uni- 1 - Setting up of COGECO\" (Co\u2022pagniel \n1 \ncations), depart\u2022ent of Rinistry of Posts) G\u00e9n\u00e9rale des Co\u2022\u2022unications), \nholding co\u2022pany of all the PTT \nand Teleco\u2022\u2022unications. 1 \n1 \nsubsidiaries (Soci\u00e9t\u00e9 Transpac, 1 \n1 \nI Telesyst\u00e0\u2022es, FCR, Entreprise \nI \n1 G\u00e9nirale des T\u00e9l\u00e9co\u2022\u2022unications)I \n1 Co\u2022\u2022unication Law of \n1 \n30th Septe\u2022ber 1986 ; a further I \n1 \n1 \n1 \nhw on coapetition in \nteleco\u2022\u2022unications is to be \n1 \n1 \nintroduced by the end of \u00b71987. 1 \n1 \n1 \n1 - 1987: opening of \u2022obile radio \n1 \nservice provision to co\u2022petitionl \nl \n1 \n1 \n1 \nl Setting up of a \"6overn\u2022ent \n1 Couission\" to report on future \n1 \n1 regulation of teleco\u2022\u2022unications 1 \n1 \n1 in August 1987. ----------+~------------------------4---~----------------' \n1 \n6reece \n1 \n1 \n~---------t-------------------------~'--------------------1 1 \n\nOTE,publicly-owned but financially \nautono\u2022ous corporation, founded 1949. OBP, Oeutsche BundesPost, a Federal \nAd\u2022inistration \n\nFCR (France Cable et Radio), \nstate-owned Coapany. 6eruay FR \n\nNo change \n\n1 \n1 \n1 \n\n\u00b7, k. -\n\nIrelud \n\nP&T, headed by Minis ter of Posts and \nTe legr aphs. TE, state ovned public corporation! \nset-up in 1984. The regulatory \n1 \nauthority lies with the Oepart\u2022entl \n1 \nof Co\u20221unications. ----~~---~-------~---------------------. J----~-------------~-----' \n\n\u00b7,. ] \n\n:1,l \n\n1 \n\n:. \u2022 \n\u2022\u2022\u2022 : > ~ \nt;. \u2022 l \n\u2022, \n\u00b7'r \n-. -. -~-. i. '\u00b7 \n: ; j\". \u00b7 if. 1. 1 ,{: \n\n'~ \n\n: j \n~. \u2022,\u00b711 \n'1 \nli. i \ni \n1 \n~ \n\n\f- 2 -\n\nCouatry \n\n1977 \n\n1987 \n\n(changes si\u2022ce 1977 and fature \noriHtat\u00cfHS) \n\nItaly \n\nASST (Azienda di Stato per i Servizi \n1 \nTelefonici), \n1 \nOCST (Oirezione Centrale Servizi \n1 \nTelegrafici), \n1 \nOCSR (Direzione Centrale Servizi \n1 \nRadi~elettrici), directly controlled by \n1 \nMinistry of Posts and Teleco\u2022\u2022unications 1 \nS IP, 1 talc able, Te lespazi o :\u00b7 concessionary 1 \n1 \ncoapanies, subsidiaries of the state-\n1 \ncontrolhd STET group. 1 \n\nIncrease of SIP privatisation. Bill on the institutional \nreorganization of the sector \nproposed by the PT Minister. Bill on the liberalisation of \n\u2022aintenance has been approved \n(March _1987). Bill on ~iscipline of ttleaatic \nservices is in discussion. laxeabo\u2022rg \n\nP&T, govern\u2022ent ad\u2022inistration. Govern\u2022ent is considering whether \nto introduce a new law on \nteleco\u2022\u2022unications to redefine \nboundaries between the aonopoly \nand th~ co\u2022petitive sectors. PTT, statal organization under \nresponsibility of the Ministry of \nTraffic and Civil Works. The lttherlandsl \n1 \n1 \n1 \n1 \n1 \n1 \n\nGovern\u2022ent decision to convert PTT! \nfro\u2022 a state organisation to a \n1 \nli1ited liability co\u2022pany (govern-1 \n\u2022ent owned},starting fro\u2022 1989, \n1 \nf ollowing reports fro\u2022 Swarttouw 1 \nand Steenbergen Coaaittees. 1 \n1 \n1 \nCTT C TLP boards 1erged in 1978 ; 1 \noperationally still independent. 1 \nTwo co\u2022\u2022issions have been \n1 \nappointed to report on a new \n1 \ntelecoaaunications law, and on \n1 \nreorganisation of the sector \n1 \n(reports expected in first half \n1987). CTT for services outside Lisbon and \nr \nOporto, TLP for Lisbon and Oporto ; both 1 \nstate-owned but financially autono1ous. 1 \nCPRM for intercontinental services. 1 \nr \n1 \n1 \n1 \n1 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\nCYT, Govern\u2022ent Oepartaent for \nTelegra1, telex services. CTIE, s,t-up byl \nITT in 1924 but large state share:since 1 \n1945, for ~el ephone, data transa\u00dcsion. 1 \n1 \n1 \n1 \n\n1 \n\n' \n\nCTNE re-naaed Telefonica. and \ngranted greater autono\u2022y. A new c o\u2022prehensi ve bi 11 on \nteleco\u2022\u2022unications has been \ndrafted February 1987, and is \nbeing considered by Parlia\u2022ent. 1 \n\n1 \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\nPost Office, state-owned corporation \n1 \nr ep o r t i ng t o the Secretary of Sta~e for 1 \nIndus try. 1 \n1 \n1 \n1 \n1 \n1 \n\nBd ti sh Teleco\u2022, 49% governmen t \nowned private co\u2022pany. \"ercury Co11unications Li\u2022ited, \n1 \nprivate co\u2022pany. 1 \nPrivate services providers \n1 \nsupplying 1obile and value-added 1 \nservices, new general VADS licensel \nhas been issued in February 1987. 1 \n1 \n\nPert. gal \n\nSpai\u2022 \n\n' \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\nI l \n\n' \n\n1 \n1 \n1 \n1 \n1 \n1 \n1 \n1 \n\n\f60 \n\nOn the protection of network operators from \"cream-skimming\" \nby operators of leased lines, tihe positions adopted by the \nMember States also vary. All currently prevent simple resale \n(for voice traffic) on leased circuits. Sorne plan to approach \nthe problem \nin the future by ~ general system of \nvolume-sensitive tariffing. Other Member States are likely to \nintroduce a selective element tif usage-sensitive tariffs on \nleased lines used t~ supply val~e-added services to third \nparties. The situation is changing rapidly. The United Kingdom has \nsubstantially modif ied the organisation of its \ntelecommunications sector and recently issued a general \nlicence for value-added and data services. France has \nundergone substantial change of legislation in the \ntelecommunications / audio-visual field and will introduce \nmajor new legislation on future. telecommunic_ation,s policy in \n1987. As indicated in APPENDIX!l, reviews or changes ar\u00e9 \nunderway in the Netherlands, Ge~rnany, Belgiurn, Italy, Spain, \nPortugal, and other Member States. At the same time, the European Gonference of Postal and \nTelecornmunications Administrations is reviewing its \norganisation, in close interaction with, and in response to, \nthe development of Community tetecommunications policy (see \nChapter VII). , \n\n2. Convergent trends \n\nYet despite the current diversity of national situations, \nconvergent regulatory trends are becorning apparent. These \ntrends\u00b7 are towards ; \n\nopening of the terminal markets to cornpetition \n\na cornpetitive value-added $ervices (VANs) sector \n\nseparation of the regulatory and operational \nf unctions ; \n\nmaintenance \"of exclusive or special rights for the \nprovisiq. n of 'the network. infrastructure and a restr icted \nnumber of basic services ; and \n\n\u00b7 \n\nmore cost-oriented pricing for\u00b7these services. Telecornrnunications Administrations would be able to cornpete in \nthe cornpetitive markets. i \n\n1 \n\n\f-- ---- ---------\u00b7-\u00b7\u00b7-----~--\u00b7 \n\n'~=:o======~-=--==. :. -~-~~__::_-=:. r-=---\n\nCOUNTRIES \n\n1. Relations with \nposta 1 services \n\n2. Basic Service Network \n\na) Local \nb) Long-distance \nc) International \nd) Mobile. 3. Terminal Equipment \n\na) Supply : \n\nMain Telephone set \nPBX \nTelex \nModem \nData Termin-al \nMobile \n\nb) Maintenance : \n\nMain Teiephone set \nPBX \nTelex \nModem \nData Terminal \nMobile \n\n4. Use of leased circuits \n\na) Domestic : \n\nShared use/resale \nlnterconnection with \npub 11 c network \nb) International : \n\nShared use/resale \nlnterconnection with \npub 1 k network \n\n(1] SOURCES : Hember States (SOG-T) \nAbbreviations : see fol lowing page \n\nPRESENT TELECOMMUNICATIONS MARKET STRUCTURES IN THE EUROPEAN COHMUNITIES [l] \n\n!!!. !1 \n\nLuxembourg \n\nThe f!~ther 1~1'1~ \n\nPortugal \n\nS/PTT (5) \n\nPTT \n\nPTT (10) \n\nPTT (5) \n\nSpain \n\ns (16) \n\nUnited K ingdom \n\ns \n\nFig. 7/2 \n\nGM \nGM \nGH \nGM \n\nH \nL \nL \nPL \nL \nL \n\nM \nL \nL \nPL \nL \nL \n\nN \n\nN (4) \nN (4) \n\nGM (li) \nGM { 11) \nGH (11) \nGM (11) \n\nM (12) \nM \nM \nL \nL \nM (13) \n\nM \nM \nM \nL \nL \nM ( 13) \n\nN ( 14) \nN (14) \n\nN (4) \nN ( 4) \n\nGM (PC) \nGM (PC) \nGM (PC) \nGM (PC) \n\nM \nL \nM (3) \nM (3) \nL \nL \n\nM \nL \nM \nM \nL \nL \n\nN (9) \nN (9) \n\nN \nN. GM (PC) \nGM (PC) \nGM (PC + OH) (5) \n-\n\nOH (16) \nOM (16) \nOM (16) \nOH (16) \n\nRC (LIM) \nRC (LIM) \nRC (LIM) \nRC (LIM) \n\nM \nRC (LIB) (19) \nL \nM\u00b7 \nL \nL \n\nM \nL \nL \nM \nL \nL \n\nN \nN \n\nN (4) \nN ( 4) \n\nL \nL \nL \nL \nL \nL \n\nL \nL \nL \nL \nL \nL \n\ny {17) \ny (17) \n\ny ( 18) \ny (18) \n\nH \nL \nM \nPL \nL \n-\n\nM \nL \nM \nPL \nL \n-\n\nN ( 15) \nN (15) \n\nN (4) \nN ( 4). Fig. 7/3 \n\nLEGE ID \n\nPTT \nS \nM \nPL \nL \nGM \nGM (PC) Government monopoly \u00b7(public corporation) \n\nPosts and telecommunications services provided by the same organisation \nSeparate organisation \nMonopoly \nPartly liberalised (some types liberalised, others not) \nLiberalised \nGovernment monopoly (government agency) \n\nOM \nRC (LIM) \nRC (LIB) \nFC (LIB) \ny \n\nN \n\nMonopoly of other types (private entity, etc). Regulated competition with \u00b711mited entry \nRegulated competition with liberalised entry \nFree competition with liberalised entry \nGenerally permitted \nGenerally prohibited \n\nNOTES \n\n(1) \n(2) \n(3) \n(4) \n(5) \n(6) \n(7) \n(8a) \n(8b) \n(8c) \n(9) \n(10) \n(11) \n(12) \n(13) \n(14) \n(15). (l\u00f4) \n(17) \n(18) \n(19) \n(20) \n\n(21) \n\nRTT and R\u00e9gie des Postes depend on the same PTT Minister \nFirst te'lex terminal under monopoly, progressive liberalisation announced. On request by the CEC, progressive liberalisation announced. Subject to exceptions. Telecommunications service providers exist in addition to PTT, on a monopolistic basis (concessionary basis, regional monopoly, etc)~ \nLicensing of additional providers to be announced. Steps regarding licensing of private\u00b7 providers of Value-Added Services announced. Shared use permitted, resale prohibited. Voice-band circuits : as far as technically possible, but atone end only (TKO, July 1986). International fixed connections without restrictions ; \"flat-rate\" circuits with restrictions. New legislation on VANS is being discussed in Parliament. A larger degree of separation between postal and telecommunication organisations within PTT has been announced for 1989. PTT to be converted to limited liability company in 1989. Government has decided to liberalise all terminal equipment as of January 1989. Cordless telephone /car telephone /public pagers under monopoly; closed mobile systems, radio telephones on ships, etc. liberalised. Usage for VANS ta be liberalised. \u00b7 \nCurrently under consideration in commissions. Telex, telegram, public facsimile (Burofax), etc. are provided by the PTT. Pure resale prohibited until at least 1989. As (17), subject to additional restrictions. Digital PBX's are supplied under monopoly. Complete liberalisation has now been implemented after agreement with the European Commission on July 30th 1986 and w. ill take place after \nconversion of CCITT Recommendations into specifications and definition of testing procedures. T. E. does not hold a monopoly, but is at present exclusively licensed by the Ministry. \u00b7~. \u00b7:. :. :. ~~-\n\n- - - - - - ----. -. -: \n\n-- ~. ~-~~~~. ~'=~. ,-~~~~ ~~~?~~~=-~-;-=;;. :0::. :-=:::-\"\"?-~\"\"'~~==-L_:,::~~'~>::__-=-:_~_:-~ ::~=t--~~-:?-~ - -=:\"\":---\n\n__;;~. t -~<~- :-,~-~--=--;-:c-~ \n\n\f61 \n\nThe outline of the new situation that appears to be emerging \nis reflected in \nprovide services over the network and to connect terminals to \nthe network. to use the network, to \n\nthree \"freedoms\" -. Current trends are converging. These converging trends \nprovide the opportunity to achieve a common regulatory \nframework in the Comrnunity, allowing a common market for \ntelecomrnunications to develop rapidly. The Community has an obligation to ensure that no new barriers \nto trade in goods or services are erected between Member \nStates during this de/re-regulati6n process, and that existing \nbarriers are dismantled. opportunity afforded by current changes to promote a single \nCommunity-wide market for telecommunications eguipment and \nservices. It should benefit from the \n\n3. The Commori Market in terminal eguipment \n\n1 \n\ni -\n! \n\n11 \n\nJ \n\nThe current regulatory situation regarding\u00b7 the terminal sector \nin the Community is shown in Fig 8. \u00b7 \n\nThe trend in all Member States is towards progressive full \nopening of the terminal market to competition. However, \nprovision is still currently reserved for the \nTelecommunications Administrations for a number of items of \nterminal equipment, in particular the first telephone set. The current technological eyolution towards multifunctional \n'computer based terminal eguiprnent, including ISDN terminals \n(see Chapter IV), will make the current trend towards \ncompetitive provision more and more inevitable. However, the \nchange from\u00b7the existing situation of sole supply of certain \nterminal equipment, in particular the first telephone set, to \na competitive environment will have to \ninstances, for a sufficient but defined time period for \nindustry to adapt to the new situation. \u00b7allow, in certain \n\n\fSurvey of Terminal Equlpment Regulatory Supply Conditions \n\nMOBILE \nT'PHONES PAOERS \n\n1 RADIO \n\nIV100EN1S \n\nFig. 8 \n\n\". ~ \u2022 \n\n1 ,\u00b7 \n\n' \n\n\u2022 \n\n1 \u00b7: \n\n~ \n\n\u2022 \n\n\u2022 \n\nN\u2022iwork \nOp\u2022r\u2022tor \nEHolualv\u2022 \nProvlslor. r-/ -ZJM IH \u2022d Supply: \n\nN \u2022 two rk \nOperator/ \nPrivat\u2022 \n\n/ \n\n/ \n\n, \n\n/ \n\n1. Priva te \nSupply \n\n1 \n\nor1l~1. ,,-\n~ __. ,,,,,,,,. __ _ \n-- -:]. Non\u2022 \n\nC-\n\nr~ \u2022::> T &: : \u2022 \n\u00b7:::I o m 1 n an t \n\nt ab I \u2022 of th 1 s k 1 n d 1 \u2022 1n\u2022v1t\u2022b1 y \n\nf \u2022 a t u r \u2022 \u2022 o 4 \n\nt t-1 \u2022 \n\nr \u2022 g u 1 a t or y \n\n\u2022 \n\n\u2022 1mpIlf1 o a t ton i 1 t d \u2022 s or 1 b \u2022 \u2022. th \u2022 \n\u2022 a oh o ou n t r y \n\ns I t '-' a t I \u2022:::) n 1 n \n\nf o r \n\n~\u00b7 '-' b 11 o \n\n,-, \u2022 t ,. , o r 1-~ \n\nt ,. r n-i In a t 1 n g \n\n\u2022 q u 1 P rn \u2022 n t \n\n- - - - - -- -- \n\n=. ::--~~. - - ------\n\n~~5~~-~~~~;;~~:-~~~~_:~-:~:-~:::~_-:--~~-c:-0~i;_~-~--=~-=~i~~~d~~~~~=----~~~-~:~:~~~~~'\u00b0-~~:\"J-'=::-':~-\u00b7--_~===-~~--~--~~-o--:~-~-~:-~~~,,-o--=:_:-_;\u00b7--=:~~---~:-~'--\n\n-------------------\u00b7-------------- - - - -\n\n------- - - - --\n\n-----~---~. -\n\n--\n\n-- :::=-__. _ \u2022. ::, __ - - -. :___:. -. -~---~~-------\n\n- - -\u00b7 --------:,. ; \n\n\f62 \n\nThe f ramework for synchronising the current move towards full \ncornpetition in the terminal sector at the Cornrnunity level does \nexist : it is supplied by the provisions of the Treaty on the \nfree movement of goods, by the decisions taken on cornmon \nstandards and mutual recognition of type approval, and by \nprogress on the opening of public procurement. It consists of the following main elements (for details see \nChapter VII) \n\n: \n\ni) \n\nthe general surveillance and control function imposed by \nthe Treaty regarding the f ree movement of goods and the \nadjustment of state monopolies of a commercial \ncharacter. The Commission has made clear in the past \nthat it will apply Articles 37 and 86 of the Treaty \ndirectly, as well as Article 90 in conjunction with \nArticle 86 and more particularly the means at its \ndisposal under Article 90(3) of the Treaty, \nprogressively to terminal equipment, in order to support \nthe curre~t opening process. ii) \n\nrapid and effective application of : \n\nCouncil Directive 86/361/EEC concerning the f irst phase \nof the establishment of mutual recognition of type \napproval for telecommunications terminal equiprnent, \nwhich was adopted by the Council on 9 June 1986 ; \n\nCouncil Decision 87/95/EEC on standardisation in the \nfield of information technology and telecomrnunications, \nwhich was adopted on December 22nd, 1986. iii) on this basis, Community-wide definition of the \n\ntechnical interfaces of the network with the subscriber \nterminal equipment, i. e. the Network Termination Points \n(NTPs). Clear guidelines in this respect are given in Council \nRecommendation 86/659/EEC on the co-ordinated \nintroduction of ISDN. iv) \n\nExtensive application of Recommendation 84/550/EEC under \nwhich Member States agreed to open bidding on a \nproportion of the supply contracts being awarded by \ntheir Telecommunications Administrations to suppliers in \nother Member States. Regarding terminal equipment, the \nRecommendatlon provides for an experimental period \nduring which network operators will give unrestricted \naccess to their tender calls for all new terminals and \nfor 10% by value of their total annual orders of \nconventional terminal equipment. 63 \n\nTelecommunications Administrations would be able to offer \nterminal equipment in a competitive environment alongside \nother equipment suppliers. A key issue here will be careful \nsupervision under competition rules. The transition towards a Community-wide cornpetitive terminal \neguipment market could be substantially accelerated by three \nmeasures : \n\nclear definition of network terrnination~points in the \noverall context of fixing the conditions under which the \nnetwork infrastructure is provided by the \nTelecommunications Administrations to users and \ncompetitive services providers (Open Network Provision \nONP, see VI. 4. 2. 3). This coula build on the guidelines \nprovided by Recornmendation 86/659/EEC ; \n\nrapid extension of Directive 86/361/EEC to full mutual \nrecognition of type approval {see Chapter VII) \n\n; \n\nregarding future participation of Telecornmunications \nAdministrations in the market, broadening ~f \nRecornmendation 84/550/EEC into a binding Directive on \nterminal equiprnent, in order to establish full \ntransparency and Cornmunity-wide opening of procurement \nby Telecomrnunications Administrations in the terminal \nmarket. {see Chapter VII). 4. The Cornrnon Market in telecornrnunication services \n\nAs shown in the preceding chapter, telecornrnunication services \nare increasingly characterised by two trends: \n\ntechnicql progress makes a multitude of new uses and \nservices possible ; \n\nthe network infrastructure can carry more and more \nservices operated independently of network operation. Telecornrnunications services are becorning more and rnor\u00e8 \ntradeable. Both f acts set the frarnework for current regulatory trends in \nthe Cornrnunity. 1 \n\ni. ' \n\n~ 1 \n\n; ]:; \n\n1 \n\n:: \n\n\u2022 \n\n1 !\": \ni \n\nI\u2022 \n\n\f64 \n\n4. 1. Growing consensus \n\nopportunities \n\ngiving room for new technological \n\nAll Member States now envisage allowing more room for the use \nof technological opportunities to users of the network and to \ncompetitive service providers. This consensus is strongest in \nthe field nearest to that of computer services, i. e. , in the \n- -\nfield of \"value-added services\". 4. 1. 1. Competitive environment for \"value-added services\" \n\n\"Value-added services\" range frorn services where \n\nAs set out in Chapters IV and V, there is no agreement between \nthe Member States on the precise definition of ''value-added \nservices\". the \"transport-component\" is low (eg 5-15%) such as for \ncomputer bureau service offerings, to services where this \ncomponent is high (eg 90%) such as for telex agencies. Given \nthe technological. development, the trend in the Mernber States \ncurrently is clearly towards a competitive environrnent for \nmore and more of these services with a correspondingly \nnarrower interpretation of those traditional \"basic services\" \nwhich continue to be reserved for exclusive provision by the \nTelecommunication Administrations. 4. 1. 2. Narrow definition of exclusive provision \n\nThe new technological opportunities. (see Chapter IV) allow the \nprovision of many functions and services by users which were \npreviously only possible technically and economically for the \nTelecommunications Administrations. The maintenance of the \nprinciple of exclusive provision therefore inevitably \ntranslates into imposing certain restrictions on the \u00b7ways in \nwhich terminal eguipment connected to the network such as \nPABXs may be used. Although the Commission has under normal circumstances lirnited \npower to forbid the granting of exclusive rights it can \nmonitor the use Telecommunications Administrations are making \nof such rights (Article 90 (1) of the Treaty). 11(,: \n11 \n\u00b7 \n1 ,,. 1. ;I. 1 i \n\n65 \n\nCompetition rules of the Treaty are applicable to undertakings \nentrusted with the operation of services of general economic \ninterest ''insofar as the application of such rules does not \nobstruct the performance, in law or in. fact of the particular \ntasks assigned to them. Furthermore, Article 90 (2) provides \nthat \"the development of trade must not be affected to such an \n~xtent as would be contrary to the interests of the \nCommunity\". Th\u00e8 European Court of Justice has explicitly recognised the \nright of network users to benefit fully from-~ew opportunities \noffered by technological progress (British Telecom Case 41/83, \nCommission -v- Italy of 20th March 1985, see Chapter VII). The justification of continued exclusive provision of certain \nbasic services must therefore be weighed carefully against the \nrestrictions which this may impose on users' applications for \ntheir own use, shared use or provision of services to third \nparties. Major conclusions are : \n\nexclusive provision of services must be narrowly \nconstrued \n\nthe ongoing iritegration -0f services caused by the \ntechnological trend makes it necessary that exclusive \nprovision is made subject to periodic review. 4. 1. 3. \"Competitive services\" \n\nI' \n\n1 i; \u00b7: \n\ni \\,\\: \n' ! 1 \n1 \n\nGiven the blurring of boundary lines between value-added \nservices and basic services and the i~possibility of a stable \nnatural distinction, \ntheref ore more and more on the distinction between those \nservices which may still be reserved for exclusive provision \nand those services for which competitive provision should be \nallowed. the discussion will concentrate \n\nfor which exclusive provision by the \n\nThe relevant distinction in the future will therefore be \nbetween services \nTelecommunications Administrations continues to be acceptable \nfor the time being (\"reserved services\") and all other \nservices open to competition (\"competitive \nservices\"). \"Competitive services\" will by definition comprise \nall services not explicitly reserved. !\\ \n\n:. ;ll 1 \n\u00b7l' I \n: \nil. 1':. \u00b7 \n\n\u2022 1' \n\nl \n\nIl \n\n: \n\n1 \n\n1:,' \n: :. 1. , , \n\n\f66 \n\nCompetitive services will in particular include \"value-added \nservices\". Historically, reserved services in the Member States have been \ntelephony and telex, which have been regarded generally as \n\"basic services\". Both services are offered on a universal \nbasis. This is taken to mean : \n\ni) provided with general geographical coverage ; \n\nii) provided on demand to all users on reasonably the \n\nsame terms regardless of the users' location within \nthe service provider's territory or franchise area \nand the cost of connection to the network. Voice telephony alone currently accounts for 85%-90% of \nthe ECU 63 billion per annum which make up \ntelecornmunications revenues in the Community (cf. Fig. 5). In the forthcorning years, the financial revenues of the \nTelecommunications Administrations - and thus their \nfinancial viability - will continue to be essentially \ndetermined by voice revenue. Competitive provision of \nnon-voice services, including value-added services, with \nunrestricted shared use or provision to third parties, \nis unlikely to have substantial impact on the revenues \nof the Telecommunications Administrations and therefore \non their ability to carry out the particular tasks \nassigned to them. Telex services are converging rapidly with data and \nvalue-added services. Moreover, \ndevelopment is likely to make it more and more difficult \nto maintain a strict telex service monopoly. Even now \npersonal computers are available on the market which can \noperate data and telex services via both the telephone \nand\u00b7 telex networks. technological \n\nWith its decisiori of 20th March 1985, the European Court \nof Justice has clearly authorised the operation of telex \nagencies which receive telexes via the telex network and \nretransmit thern via more efficient telecommunications \nmeans, e. g. Telecom Case 41/83, id. cit. ). the voice telephone network (British \n\ni\"' \n\n1 \n\n\u2022\\ \n\n\fIn conclusion, \n\n67 \n\n\"reserved services\" are def ined as services reserved for \nexclusive provision by the Telecommunications \nAdministrations. Reserved services must be narrowly\u00b7 \ndefined, in order to avoid restrictions or distortions \nof competition. They must be provided on a universal \nbasis. services, in particular \"value-added services\". \"Competitive services\" would include all other \n\nas far as exclusive provision of services is currently \njustif ied by the need to safeguard the financial \nviability of Telecommunications Administrations, only \nvoice telephony seems to be an obvious candidate. rnaintaining or extending exclusive provision over other \nservices will lead to the imposition of additional \nrestrictions on users : restrictions which will becorne \nmore and more difficult to control. current trends in a number of Member States seem to \npoint towards convergence on this position. 4. 2 \n\nEvolving towards a competitive Community market \n\n4. 2. l Growing tradeability of telecommunications services \n\nThe provision of telecommunications network infrastructure and \n_services is characterised by certain trends \n\nthe provision of telecommunications network \ninfrastructures continues generally t6 require the \nphysical presence of the provider in the geographical \narea in question \n\nthe provision of telecommunications services can \n\n\u00b7 increasingly take place across borders, without any \nmajor technical constraints being involved ; \n\n\f68 \n\nthe position of telecornmunications satellites is \nsomewhat hybrid since they can form part of network \ninfrastructure on the one hand whilst on the other they \ncan be part of provision of services. The technological possibility of providing services across \nborders makes the issue of access to network infrastructure \nand the irnplementation of a cornrnon market for \ntelecommunications services a major issue. 4. 2. 2. Cross border provision of services \n\nThe framework for the effective developrnent of a \nCommunity-wide market for telecommunications services is given \nby the Treaty. Article 59 guarantees, as a general rule, the \nfreedom to provide cross-border services. Article 59 deals with. the case of a service provider in Member \nState A who wishes to make a service available to persans in \nMember State B without the former's residing there. This \ncould lead to a conf lict if Member State B wished to reserve \nsuch. service exclusively toits Telecommunications \nAdministration, or if it imposed restrictions on such service \nprovided by others. According to Article 90 (1), Member States \"shall neither \nenact or maintain in force any measure contrary to the rules \n~ontained in this Treaty, regarding public undertakings and \nundertakings to which Member States grant special or exclusive \nrights\". Measures which would restrict service providers from other \nMember S~ates from exercising their rights under Article 59 \nwill therefore have to be abolished unless they fall under the \nexceptions to which Article 59 is subject. Exceptions must be interpreted narrowly. 1. ~\u00b7 \n\u00b7fJfaD \n\"t \nr. ~ \n\nJ ! \nl \n\nl \n{r \n\n~\u00b7 \nr \n\nt. :1\u00b7k'. \" \n\n'. , 1 !. t. 1: \nt ' \nl \n\n~ l \n; ~ \n,' ~ \n,\u00ce \n\n\u00b7. i~1 \n\n\u2022 \n\n1 \nl \n\" \n\n\f69 \n\nThe potential for conf lict will be reduced if : \n\ncomparable definitions of services which rnay be reserved \nexist in the Mernber States ; \n\nreserved services are defined narrowly. In practice, given existing dif~erences in definitions in the \nfield of non-voice services, and the likely narrow \ninterpretation of exceptions by the Court of Justice, \nreservation of services which goes substantially beyond voice \nservices is likely to lead to conflict. 4. 2. 3. Open Network Provision (ONP} \n\nIf a series of contentious cases and lengthy conflict (which \nwould have to be resolved by the Commission under Articles \n52, 59, 85, 86, and 90 of the Treaty) is tq be avoided, \nCommunity will have to develop comrnon principles regarding--:U\u00cfe \ngeneral conditions for the provision of the network \ninfrastructure by the Telecommunications Administrations to \nusers and competitive service providers, in particular for \ntrans-frontier provision. the \n\nThe conditions of access to the network concern mainly \nstandards and interfaces offered for interconnection \nprinciples ; and provision of frequencies. tariff \n\nThe transition towards a Community-wide competitive services \nmarket could theref ore be substantially accelerated by \nCommunity Directives on Open Network Provision (ONP), based on \nArticles 100 A and 90(3) for technical specifications and \nnetwork access respectively. Such Directives would aim at the Cornrnunity-wide harmonisation \nof principles of access. These Directives would have to include clear access conditions \nby Telecommunications Administrations for trans-f rontier \nservice providers for use of the network, regarding at least \nthree \"layers\" :. l l. : \n\n1 \n\n; r\u00b7\u00b7 \n1 \n1 \n: i ; ' ~ \nl!i \u00b7. , j \n' : f \n~ 1 1 \n' 'tf \n'I,. ; r. ''\u00b7 \n'\u00b7 ,, \ni' :; \n\n' \n\nI\n\n' ; ' : \n,1. I!. ':;I': \n,1 \ni :. li, \n\n1 \n\n' \n\n' \u00b7 \u00b7 1 \n\n,, \n\n1 \n\n'\u00b7 \n\n1 \nI' \n:\u00b7 \nI\u2022 \n\ni: \n\n\f70 \n\ntechnical interfaces, i. e. specification of facilities \nand standards requirernents, building in particular on \nCouncil Directive 86/361/EEC,. Decision 87/95/EEC and \nRecornmendation 86/659/EEC ; \n\nThis may include conditions for availability of \nfrequencies where of relevance. tariff principles, in particular separate tariffing \n( \"unbundling\") of \"hearer\". and \"value-added\" \ncapabilities (cf. VI. 4. 3. 5. ) ; \n\nrestrictions of use which rnay be inevitable for the tirne \nbeing, \nsuch as implied by reservation of certain \nservices, e. g. voice telephony. Restrictions would have \nto be subject to review within given tirne intervals, \ntaking account of technological developrnents. 4. 3. Strong Telecornmunications Administrations in a \n\ncornpetitive Community market \n\nThe evolution of a cornpetitive services sector and the need to \nallow other service providers fair access to the netw~rks will \nhave a major impact on the future operations of the \nTelecomrnunications Administrations. On the other hand, \nparticipation in the competitive market will offer new \nDpportunities to them, if at the same tirne organisational and \nfinancial constraints imposed on thern are relaxed. An outline of the framework towards which developrnents in the \n\u00b7Member States could converge is given in Fig 9. 4. 3. 1. Provision of network infrastructure \n\nCurrently, all Member States have granted exclusive rights for \nthe provision of the network infrastructure to their \nTelecornmunications Administrations. In the case of the United Kingdom, these functions are run on \nthe basis of a duopoly (British Telecom / Mercury) with \ncornpetition between the two providers. functions are split between different (non-cornpeting) publicly \nowned entities while in Denrnark they are run regionally on the \nbasis of public concessions. In Italy these \n\n-~ \n\n:' \n\n\fFigure 9 \n\nCHANGES IN ROLE OF TELECOMMUNICATIONS ADMINISTRATIONS \n\noperation \n\nat present \n\nin future \n\na) exclusive prov1s1on of network \n\ninfrastructure (monopoly/duopoly) \n\nyes \n\nyes \n\nb) exclusive prov1s1on of limited number \n\nof basic services (\"reserved services\") \n\nyes \n\nyes \n\n( 1) \n\n11 \n\n' \n\nc)- participation in competitive services \n\nmarket (including VANS) \n\nyes \n\nyes \n\nd) \n\ncombination of regulatory and \noperational functions \n\nYES \n\nNO \n\ne) protection from \"cream skimming\" \n\nyes \n\nyes \n\n1 \n\n;. 1 \n\ni t ! '. ~ \n~ \n\n' ' :-1'. ~ \n\n' \u2022 ' \n\n1 \n1' i \n1 i, \n1; \n' ' \n''. I' \n: \n' \n1 ! \n; I\u2022 1 \n\n1 \n\n_. 1 \n\nf). acceptance of common interconnect \n\nand access obligations for trans \nf ron tier service providers \n\nNO \n\nYES \n\ng) offer of certain terminal equipment \n\non exclusive basis \n\nYES \n\nNO \n\nh) offer of terminal equipment on \n\ncompetitive basis \n\nyes \n\nyes \n\n1 \n\ni ,\u00b7 1: \n'1,:1 \ni ;\u00b7' \ni' \n1'. ! \n\n; \n\nf. 1 \n1 \n\n(1) In the future, exclusive provision of services will have to be \ndefined narrowly and be subject to review. Voice telephone \nservice seems to be the only obvious candidate. 71 \n\nAs set out, the provision of telecommunications network \ninfrastructures generally requires the physical presence of \nthe provider in the geographical area in question. Article 90 (1) implies that Member States are entitled to \ngrant ~xclusive rights to undertakings. Thus per se- Member \nStates enjoy the right to provide that telecommunications. network be operated and/or owned by the Telecommunications \nAdministrations. On the other hand Article 90 (1) states \nunequivocally that such undertakings are subject to the \nprovisions of the Treaty, although the\u00b7 exception provided by \nArticle 90{2) might apply in certain limited circumstances. Article 222 provides that the Community shall in no way \nprejudice the system of property ownership in Member States. Therefore, the determination of the appropriate ownership of \n-Telecommunications Administrations -\nthey should be in public or private ownership - falls to the \nMember States. in particular whether \n\nHowever, Article 222 does not withdraw Telecommunications \nAdministrations from the full application of the Treaty. Currently, in a number of Member States, an intense debate is \nunder way at the economic and political level regarding the \n-advantages and disadvantages of maintaining- the current \nooncept of exclusive provision of network infrastructure by \none Telecommunications Administration, or whether some degree \n-of competition should be introduced, as has been done by the \nUnited States and Japan, and in the Community, by the United \nKingdom. Generally ,\u00b7 the situations in Europe, and in the\u00b7 United States \nand Japan regarding network infrastructure dif fer \nsubstantially. The United States had a vast, homogeneous, vertically \njntegrated system -\nthe Bell system : one supplier of \nequipment, one network, one market corresponding to more than \n35% of the world market. This system has been broken up after \nthe 1982 divestiture agreement. The long-distance market \ncontinues to be dominated by AT&T, now followed by MCI and \nGTE-Sprint, each of which has the size of a smaller European \nT~lecommunications Administration. The major part of the Bell \nsystem has been re-arranged under the seven Regional Holding \nCompanies. Regarding technical standards and specifications, \nthe Bell Operating \n\n:, \n\\ \n\n1. ~-\n\\. ~-\n\nl \n\nj\u00ef\\ \n\n1 \n\n\f72 \n\nCompanies remain closely co-ordinated through a jointly owned \norganisation, Bellcore, thus maintaining the technical \nintegrity of the system (for details see APPENDIX 1, Analysis \nof trends in the United States). In the Community, none of the twelve Member States has more \nthan a 6% share of the world market. No Telecommunications \nAdministration \nin any Member ~tate is substantially larger \nthan any of the seven US Regional Holding Companies which \ncontinue to operate under monopoly conditions, as far as \nnetwork provision is concerned. Given the more limited national dimension in Europe, public \nservice goals, required economies of scale, and the trade-off \nto be made between more flexibility from competition on the \none hand and higher transaction costs which c~n result from \nparallel networks on the other, it seems likely that the \npositions in the Member States will converge on maintaining \nexclusive provision of network infrastructure on their \nterritory by a single Telecommunications Administration or a \nvery limited number of Administrations (cf. APPENDIX 1, \nnational trends). From a Community perspective the following seems most \nrelevant : \n\nwhichever organisational scheme the Member States choose \nfor provision of the network infrastructure by their \nTelecommunications Administrations, the short and long \nterm integrity of the network infrastructure should be \nsafeguarded. Member States should ensure that Telecommunications \nAdministrations provide efficient national, \nCommunity-wide and world-wide communications ; \n\nThe ~reaty, and in particular Community competition \nrules, apply to Telecommunications Administrations \nwhether they have an absolute monopoly or rnerely a \ndominant position \n\nExclusive network infrastructure provision must be \nnarrowly defined. New technologies in adjacent fields, \nsuch as in satellite communications, mobile radio and \ncable-TV networks will need special consideration (see \nVI. 5, 6, 7). 73 \n\n4. 3. 2. Three essential changes reguired \n\nFig 9. lists three essential changes concerning \nTelecommunications Administrations which seem required to \nadvance towards a competitive common market : \n\n( l) \n\nProgressive lifting of remaining exclusive provision of \ncertain terminal equipment \n\nThis is the action needed on the part of the \nTelecommunications Administrations to allow the \nestablishment of a Community-wide fully competitive \nterminal market (cf. above, Chapter VI. 3). ( 2) \n\nAcceptance by the Telecommunications Administrations of \nclear obligations to interconnect with and provide \naccess for trans-f rontier service providers \n\nThis is the action needed on the part of the \nTelecommunications Administrations to allow cross-border \nprovision of services (cf. above, Chapter VI. 4). Two requirements will have to be met : \n\nTelecommunications Administrations must interconnect \ntheir own network infrastructures with appropriate \nmeans and at the appropriate technical level in \norder to allow efficient Community-wide \ncommunications ; \n\ndetails for allowing access for competitive service \nproviders to the network infrastructures must be \nfixed. An appropriate means would seem to be the \ndevelopment of a Directive on Open Network Provision \n(0 NP) (cf. above, Chapter VI 4. 2. 3. ). ( 3) \n\nClear separation of regulatory functions from \noperational functions \n\nThis is a fundamental pre-condition for the \nestablishment of a cornpetitive market and the \nparticipation of the Telecornmunications Administrations \nin this market. In a more cornpetitive environrnent, the \nTelecommunications Administrations cannot continue to be \nboth regulator and market participant, i. e. referee and \nplayer. ; \n\n-:. 'rl \n\n,:. 1. ~9) \n\n\f74 \n\nRegulatory functions concern in particular licensing, \ncontrol of type approval and rnandatory specifications; \nfrequency allocation and surveillance of usage \nconditions. The need for this separation is conf irmed by trends and \ndebates in all Mernber States which are envisaging more \ncornpetition for the sector. The separation of regulatory \nand operational activities is a rnost important \nprereguisite for any effective application of \ncornpetition rules to the providers of telecornrnunications \nservices. 4. 3. 3. Financial viabilitv \n\nThere seems to be general agreement in the Mernb~r States on \nthe need to safeguard the financial viability of the \nTelecornmunications Administrations, especially in view of the \nmassive investrnents in network infrastructure that are going \nto be required in the future, in order to cornply with their \npublic service mandate. The biggest - and under present. conditions only \u00b7real -\nis the potential loss of voice traff ic \naccounts for 85 to 90% of all telecornrnunications \u00b7revenues - by \nthe public switched network. could make their leased lines available for the pure resale of \nvoice capacity (with very limited or zero \"value-added\"). Competitive service providers \n\n- which currently \n\nthreat \n\nThey could thus be able to \"cream off\" traff ic on the most \nprofitable routes, diverting traffic away from the public \u00b7 \nswitched network to leased lines hired by themselves. Telecommunications Administrations rnay not be able to cornpete \nwith them pricewise on these high-profit routes because of \ntheir requirement to provide universal basic service at \ncomparable prices throughout their national territory. There are currently two approaches followed - or considerea. -\nin the Member States to avoid extreme cases of \"cream \nskimming\". 1. 2. banning simple voice resale on leased lines \n\napply usage-based tariff elernents to leased lines. 75 \n\nRe: 1. Most Member States ban simple voice resale. Som~ \nof thern, such as the United Kingdom and the Netherlands \nare cornrnitted to reviewing the ban after a predetermined \ntirne period. For exarnple, in the new value-added and data serv1ces \n(VADS) license which will replace the existing VANS \nlicense, the UK governrnent announces that simple voice \nresale will be banned at this stage. Conditions are \nattached to carrying voice traff ic as part of a wider \nenhanced service which \u00b7rnake pure resale of the voice \nelement unattractiv. e. Re: 2. Sorne Member States, such as Germany, are \nproposing usage-based tariffs on leased lines as the \nmain instrument of avoiding extreme cases of cream \nskimming. Sorne are envisaging applying a mixed system \nof flat-rate and usage based elements for the tariffing \nof leased lines, based on the principle of \nproportionality. Other Member States are considering \nthe issue. Leased circuits have traditionally been priced at a flat \nrate and it has been argued that this price structure is \nrequired if the developrnent of value-added services and \nthe attendant innovation are to be encouragea. But if a \nMember State wants to be liberal in allowing voice \nre-sale (perhaps on the grounds that technically it will \nbecorne difficult to control it at some future stage), it \nmay have to f ind another means of securing f inancial \nviability. Thus it may propose to introduce usage-~ased \ntariff elements for leased lines. Usage-based tariffs raise two difficult and interlinked \nissues. One is that by increasing the relative cost of \nleased lines in certain cases (very large usage), the \nincentive to stimulate the development of competitive \nservices will be dirninished, especially if this rnakes \ntheir relative cost more than that in Member States who \nhave chosen a less costly (for the private-sector \nservice provider) forrn of tariff regirne. i \n\\! \nr \n!_ -\n\u00b7~\u00b7 \n\n;: \n\nj \n\n\u00b7r_ \n~:. 1 \n1. 1. l \n;j \n'!~ \n\nt;i \n\n\fiiiIT, \n\n'1 l \n\n,, \n\n76 \n\nThe other is that usage-based tariffing, if its impact \non potential service providers is to make access to the \nnational market more difficult - because more expensive \nthan entry into other Community markets, may be an \n-\nobstacle in certain cases to the transfrontier provision \nof services. The decision whether to charge usage-sensitive or \nf lat-rate or a mixture of both tariffs for leased lines \nis essentially a decision to be taken by each \nTelecommunications Administration subject to the power \nof the Commission to investigate and terminate abuses \ncoming to its attention. Any method must follow the \nprinciple of proportionality and not go beyond what is \nabsolutely necessary to ensure the fulf ilment of the \ntasks assigned to the Telecommunications \nAdministrations. Thus neither must the application of usage-based tariffs \nlead to excessive burdens for certain user categories, \nnor must a ban. on resale of voice operate to bring \nservices with only a voice element into the \nTelecommunications Administrations' monopoly. A major potential for hindering the trans~border \nprovision of services arises in the case of differences \nin policies between Member States. Potential for \nconflict would be reduced if a set of tariff principles \ngoverning the access to the network for trans-frontier \nproviders were established \n(see above VI. 4. 2. 3. , ON \nP ; see below VI. 4. 3. 5. , tar iff pr inciples). 4. 3. 4. Transparency and problems of cross-subsidisation \n\nThere is a broad consensus in the Member States that \nTelecommunications Administrations should be allowed to \nparticipate in the newly emerging competitive services and \nterminal market, in order to provide for a broad range of \nchoice for the consumer. The participation of the Telecommunications Administrations in \nthe competitive sector of the market will require careful \nattention, in order to avoid cases of distortion of \ncornpetition. 1 i!i' \n!\u00b7:, l 1i. \u2022 \n: !: \n\n1 \n\n' \n\n'. I! \n\ni. lt. ,'f= \n\n'1: \n\n1 \n\nil \n'. I: \n\n'\u2022 \n1, \n\n!; ' \n\n: 1,1 \n\n: 1. ;\u2022. , \n\n1 \n)t \n''t \nr \n\n\f77 \n\nTransparency must be created regarding the activities of the \nAdministrations, especially regarding cross-subsidisation \nbetween activities in the monopoly sector and the competitive \nservices and terminal equipment sectors. A sufficient degree \nof transparency will also be required concerning the \nTelecommunications Administrations' financial and fiscal \nenvironment. \u00b7 \n\nThe term cross-subsidisation can be used to cover at least the \nfollowing practices: \n\n(i) \n\nthe financing of the launch of new products until dernand \nputs supply into profit ; \n\n(ii) \n\nthe financing of Research and Development, again in \nareas of potential future growth, obviously out of \nprofits realised elsewhere ; \n\n(iii) the financing of a loss-making subsidiary or \n\nproduct-line by profits made elsewhere in the same \nIn the case of Telecommunications \ngroup. Administrations, such operations may have to be carried \nout in order to achieve, in certain cases, certain \npublic service goals, such as universal service for \ncertain basic services or emergency services. A certain amount of cross-subsidisation is permissible \nin any commercial venture. Existing product lines may \nsubsidise new product lines during their crucial phase \nof initial market entry in virtually every corporate \nmarketing strategy. However, where a dominant undertaking \nTelecommunications Administration or other provider \nengages in predatory pricing to weaken or drive out \ncompetitors, it abuses its dominant position. Where the \nfunds for. pre\u00e2atory pricing are taken from\u00b7 another \nproduct line in the same group, a form of \ncross-subsidisation would take place, but it should be \nnoted that any abuse would not consist in the act of \ncross-subsidisation, but in the act of predatory \npricing. Close surveillance of cross-subsidisation practices in \n\n\u00b7the operational activities of bath Telecommunications \n\nAdministrations and private providers in the newly \nopened competitive services and \n\n1: \n\u00ee \n\nJ' \n1 \nl \n\nl \n\nl \u00b7. \u00b7~\u00b7 \n\n1\" \n\\[ \n\ni. 7. : \n\n,1 \n\n;. 1 el. J: \n\n\f78 \n\nterminal sectors will be required, in order to avoid \nillegal practices and misuse of dominant positions. While details of \u00b7the organisation of the sector fall to \nthe Member States, the conditions of transparency \ncreated must be suff icient to allow this surveillance to \ntake place. Transparency of the activities of Telecommunications \nAdministrations should include transparency regarding \nactivities in non-telecommunications areas, in \nparticular postal services. Transparency \u00b7should also be \nestablished regarding the f inancial and fiscal \nenvironment. Regarding combined provision of postal and \ntelecommunications services by a single administration, \nmost Member States currently seem to be moving towards a \ngradual separation of their postal and \ntelecommunications services. While the details of \norganisation of the Telecommunications Administrations \nand combination with other tasks, such as combined \nprovision of telecommunications services and postal \nservices, falls under the authority of the Member \nStates, it would seem incompatible with the Treaty if a \ncombined Posts and Telecommunications Ad~inistration \nused its exclusive rights in both fields in a way \ndistorting competition. Regarding the f inancial environment of Tele \ncommunications Administrations, Directive 80/723/EEC \nrequires transparency in the f inancial relations between \nMember States' governments and their public \nundertakings. The Directive has been expanded to apply \nto the telecommunications sector. Regarding the fiscal environment of Telecommunications \nAdministrations, it is notable that a number of Member \nStates currently exempt public telecommunications from \nValue-Added Tax. This treatrnent is a result of the \nright to derogate from\u00b7the taxation provisions in \nDirective 77/388/EEC. fiscal frontiers and in order to arrive at a state of \nequal competitive conditions in this sector the \nCommission will shortly present an amended proposal for \nan 18th VAT Directive which will make provision for \nobligatory taxation of those supplies with effect from \n1. 1. 1990. In view of the abolition of \n\n11 \n1. :. :: \nj \n'':1 \n\u00b7'. 'I ;, \n,, \n' \n1 ! ; \n:. i\" \n\n1 \n\n; \n\n'l \n\n1 \n\n1 I, \n\u00b7 I\u00b7 \n\nl1 \n\n,, \n\n\f79 \n\nWith the increased introduction of cornpetition into the \ntelecommunications services sector, the fiscal \nenvironrnent of Telecornrnunications Administrations will \ntherefore need thorough review. 4. 3. 5. T~riff principles \n\nOne important determinant of the implementation of a \nCommunity-wide market for competitive telecommunications \nservices is the tariff principles applied by the \nTelecommunications Administrations for use of network \ninfrastructure and servicei. Tariff principles applied by the Telecommunications \nAdministrations have developed historically out of a cornplex \ntrade-off between commercial considerations\u00b7and universal \nservice goals, such as subsidising telephone service in rural \nareas from revenue from higher density routes. For \ninternational services, tariff-setting has been greatly \ninfluenced by the respective CCITT recommendations (cf. APPENDIX 4). Tariff structures are currently undergoing major \u00b7changes in \nall Member States, \na nurnber of reasons, notably the following \n\nand internationally in the Comrnunity, for \n\nrapid technological development has dramatically changed \nthe cost structure of the network. The cost of \nprovision of long. distance traffic has fallen much more \nthan the cost of provision of local traffic (see Chapter \nIV) \n\n; \n\ngrowing international cornpetition is increasingly \nleading international tariffs to follow basic cost \ntrends ; \n\nfair and open access of users and competitive service \nproviders requires a clear definition of tariff \nprinciples by the Telecommunications Administrations. A. ~ \n\n:) \n:j \n\n1 i -\n\n\f80 \n\nAccording to a report previously cited [\"Clearing the Lines \nA Users' View on Business Communications in Europe\", Round \nTable of European Industrialists, October 1986), \"although \ncomparison of telecommunications tariffs in different \ncountries is made difficult by volatile exchange rates, the \nscale of inconsistencies is evident. \"The report goes on to \nmake two central points : \"that charges for trans-European \nservices are generally much higher than domestic charges \n(between half and four times as much in the case of packet \nswitching volume charges, for example) and that charges vary \ngreatly and according to no self-evident logic between \ncountries. comparison with US prices. There is a danger that excessive \nlong-distance communications charges are creating a \nsignif icant handicap to the efficient development of the \nEuropean internal market\". In particular,. trans-European prices-look high in \n\nInternational tariffs in Europe are based on bilateral \nagreements (including transit agreements). Mutually agreed \naccounting rates are multiplied by the Administrations by \nso-called x~factors, in order to arrive at the final \ncollection charge. K-factors are applied with a wide \nvariance. As a consequence, the charge for a telephone call \nfrom country A to country B may vary by well over 100% from \nthe charge collected for the same call f rom country B to \ncountry A, as is the case for certain Member States. Regarding leased lines, current charges both at the national \nand the Community level show in some cases wide and \nunexplained div~rgences. In its resolution of 3rd March 1984, the European Parliament \nnoted the \"current divergence of tariff structures within the \nCommunity, both for switched and leased circuits\" [Report of \nthe European Parliament on Telec6mmunications in the \nCommunity, Doc. 1~477/3, 3rd March 1984, OJC 117/80, \n30. 4. 1984]. ; 1:. : 1-\n\"1 I \n\"'' \n'1\\1. I \" f \n\ni\u00b7: \n1 \n\n' \n\n! ' \n\n\f81 \n\nThe Parliament went on to state that it \"considers it \nnecessary, as a first step towards establishing a Community \npreferential area for telecommunications, to adopt a single \nmethod for determining the tariffs applied within the \nCommunity for all int~rnational intra-Community \ntelecommunications services, based on the principle that \nnational frontiers are irrelevant to the calculation of the. tariffs, which should be expressed in ECUs. This system for \n\ninternational intra-Community services should subsequently be \nharrnonised, as regards the structure of the tariffs, with \nnational tariff systems. \" \n\nIn Council Recommendation 86/659/EEC of 22nd December 1986, \nthe Council has invited the Telecommunications Administrations \nto study, inter alia, the following tariff principles \nregarding the co-ordinated introduction of ISDN, the future \nbasic network infrastructure (see Chapter VII) \n\n: \n\n\" \n\nIn accordance with current trends, tariffs for all \nservices, including telephony, should be less dependent \non distance than at present (always bearing in mind the \nproblems of transit costs through other countries) ; \n\ntariffs for teleservices which use the same bearer. capabilities should be independent of the teleservice. On the contrary, all value-added by the network should \nbe charged independently of the utilisation of the \nbearer capabilities. \" \n\n(ernphasis added). Separate tariff offerings for \"bearer\" and \"value-added\" \ncomponents (as implied by the last indent) could be one \ngeneral principle in the overall. context of Open Network \nProvision (cf. above, Chapter VI 4. 2. 3). There seerns to be an \nopportunity to agree on a broad set of tariff principles for 0 \nN P. The setting of tariffs is a major cornponent of a \nTelecommunications Adrninistration's overall commercial \nstrategy. The Commission has made clear in the past that \nmeasures to halt the abuse of dominant positions cannot be \nconverted into systematic monitoring of prices [Sth Report on \nCompetition Policy, 1978 ]. However, Telecomrnunications \nAdministrations are subject to Competition Rules, in \npartjcular Article 85 and 86 of the Treaty, and Member States \nare subject to Article 90(1) as regards the use of exclusive \nrights made by these Administrations. Cases of unfair pricing \nmust be avoided. 1. 1:. \\'. k \n\n~\u00b7. l. j J \n\n1\" \n\\t \n~\\ \n\nj \n\n't \n\n~ \n\n-\n\n\f82 \n\nBuilding consensus on tariff principles would substantially \nreduce the possibility of conflict. Tari~f principles could include : \n\nrecognition of the fact that telecommunications tariffs \nshould follow overall cost trends and that a certain \namount of rebalancing of tariffs will be inevitable, as \nfar as compatible with public service goals. This \napplies in particular to tariffs for national and \nintra-Community long-distance traffic. A fair trade-off between cost-orientation and the aim of \nuniversal service on reasonably the same terms for all \nwill have to be developed \n\nregarding intra-Community and international tariffs, \nhigher transparency and convergence of accounting rates \nand K-values should be sought, in order to avoid \nexcessive divergences of tariffs and possible distortion \nof competition. This should show the way to the gradual \nemergence of a European tariff zone ; \n\nconsensus should be achieved oh general tariff \nprinciples for access by users and providers of \ncompetitive services, in the framework of Open Network \nProvision. This should include agreement on the degree \nof \"unbundling\" of tariffs required for fair access, and \ngeneral principles for the provision of leased lines. 4. 4 \n\nAdjacent infrastructures / services \n\nA nurnber of infrastructures / services adjacent to the main \nnetwork infrastructure need soecial consideration. This \nconcerns in particular satellite communications, mobile radio \ncommunications and cable TV networks. 83 \n\n4. 4. 1 Satellite Communications \n\nAs stated previously, telecornmunications satellites are hybrid \nin the sense that they can either form part of the network \ninfrastructure, or they can be part of the provision of \nservices. \u00b7 \n\nAs set out in Chapter IV, over the last ten years the use of \nsatellites has grown very rapidly. Satellites are currently \nused to provide a number of different services, in particular \nbroadcasting and telecommunications services. From a iegulatory point of view, satellite systems may be \ndivided into three distinct elements, namely \n\nuplink \n\nsatellite or space segment \n\ndownlink \n\nFor details see APPENDIX 2. The uplink is always considered a f ixed point-to-point \nservice, and in general it is linked to the right to transmit \na ~adio signal. normally held by the Telecommunications Administrations. In Europe at present monopoly rights are \n\nThe availability of space segment capacity in Europe is \ngoverned mainly by the following factors : \n\nthe exclusive right of the EUTELSAT / \nsignatories of the respective operating agreements to \npurchase and resell EUTELSAT ;\u00b7INTELSAT space segment \ncapacity. INTELSAT \n\nthe virtually exclusive rights of EUTELSAT and INTELSAT \nto provide space segment capacity \" to meet the \nrequirements of international public telecommunications \nservices\" within the respective services as specified by \nArticles XVI and XIV of their respective Operating \nAgreements. ''tilf \n\n\f84 \n\nthe ability of E\u00d9ropean Telecornrnunications \nAdministrations to utilise the space segment capacity of \nthese organisations to fulfil their ma~ket objectives in \nEurope. The downlink is specif ied in terrns of services such as a fixed \nservice, a broadcasting service. , a mobile service, etc. Traditionally, in most Member States the Telecommunications \nAdministrations had the exclusive rnonopoly position on the \nownership and operation of all satellite communications links, \nincluding down links where the ground station provided only \nreceive capability. However, regarding satellite broadcasting, from 1984 there was \n~ considerable pressure to relax this position and to allow both \nprivate companies and individual consumers to own and operate \n(at least) receive-only satellite equipmenL Now Cable TV \ncompanies and individual subscribers are able to install, \noperate and rnaintain reception equipment for satellite \nbroadcast reception in most. Member States. The general trend in Europe now seerns to be that dornestic \nreceive-only installations (TVROs) designed to receive high \npower DBS (Direct Broadcast Satellite) services will not \n~eguire a licence. Regarding the use of satellite links for telecommunications \nservices, a detailed review of the situation in the Community \nis given in APPENDIX 2. Technological advances are causing a discernible trend within \nEurope to allow \nground stations, in particular. for those providing only \ndown-link capability. the private supply and operation of satellite \n\nIt further appears that in a \u00b7number of Member States, the \nTelecommunications Administrations are permitting the \ninstallation of ground stations for \"own-use\". in limi ted \ncircurnstances. i:. \u00b7. :. l \n1 j \n1 j \n\n1 \n\n1, \nI\u00b7 \n1. i \n\nl 1 \n\n\f85 \n\nAt the same time, as set out in Chapter IV. 4, there is a \ngrowing grey area of point-to-multipoint services serving \nlarge user groups, closely linked to the emergence of very \nsmall antenna (VSAT or micro-terminals) earth stations. VSAT \nsystems operate in star network configuration, offering \nuni-directional - and in certain cases bi-directional -\ndata-rate communications between relatively large central hub \nearth stations and a large number of VSATs located at user \nprernises. low \n\nIn the United States, receive-only VSATs have been available \nfor a number of years. Transmit / receive VSATs have become \navailable more recently. Very small satellite antenna systems for receive only purposes \nnow have dish sizes of. Q. 6 metres in diameter, for low data \nrate receive / transmit 1. 2 - 1. 8 metres. This compares with \ndiameters of 30 metres for Type A INTELSAT earth stations \nwhich traditionally have been considered as_part of the \nTelecommunications Administrations' network infrastructure. VSAT earth stations should therefore be more properly \nconsidered as \"micro-terminals\", the operation of which should \nbe associated with the regime under which telecommunications \nt~rminals are supplied and operated. Given technological \ndevelopment, it will become more and more difficult to justify \nfor VSAT terminals a regulatory regime different f rom the \nregime applied to domestic receive-only DBS antennae {TVROs). In parallel to the technological development of the ground \nsegment, the space segment accessible in Europe will develop \ndramatically over the next few years. As set out in APPENDIX \n2, both new generations of satellites and services of \nEUTELSAT, \nwell as a number of national and private satellite systems \nwith both broadcasting and point-to- point and \npoint-to-multipoint capabilities. Together with technological \n\u00b7development in the ground segment, this will make a review of \nregulatory conditions for the provision of both the space \nsegment and the ground segment inevitable. INTELSAT and INMARSAT will enter into operation, as \n\nFrom a Community perspective the following seems most \nrelevant:. 1 \n\n'I \n\n\"' ]' \n1': \n~: \n\n'. [ \n\u00ee \n\nj \n\n{j \ni; \n_. ,~' \nr. \u00b7~ \n\nj \n\n1 \neE~~ ;,\u00b7 \n~ \n\n~~i \n\n1 \n\n-\u00ee \n\n\f86 \n\nusers should have the possibility fully to benefit from \ntechnical progress. This will make the review of \ncertain regulatory arrangements necessary. freedom to provide cross-border services. Regarding \n\nArticle 59 of the Treaty guarantees, as a general rule, \nthe \nsatellite broadcasting services, the Commission has \nstated the full implementation of this principle as a \nprincipal goal of its audio-visual policy (see Chapter \nVII. 4). satellites for telecommunications purposes can form part \nof network infrastructures on the one hand. whilst on the \nother they can be part of the provision of services. However, as a general rule, exclusive provision of \nnetwork infrastructure must be narrowly defined. Given these positions and current trends, the following \nshould be envisagea : \n\n(1) Given the hybrid nature of satellites as bath \n\nprovision of infrastructure and service, two-way \nsatellite communications and the regulation of \nup-links will need case-by-case consideration. However, given the principle of narrow definition of \nexclusive provision of network infrastructure, \ncompetition should be a possibility in those cases \nwhere unacceptable interference with other satellite \nor radio communication systems is not to be expected \nand where the revenue base and the f inancial \nviability of the general network infrastructure \nprovider is not put into question. VSAT antennae (micro-terminals) suitable for low \nrate data exchange only, authorisation should be \ngiven automatically. Special consideration should \nbe given to the development of Europe-wide satellite \nservices. In the case of \n\n(2) Given the trend in satellite communication towards \npoint-to-multipoint Hbroadcast\" applications for \nclosed user groups, the regulatory regime for \nreceive-only earth stations (ROES) for satellite \ndownlinks should be fully assimilated with the \nregime for telecommunications terminals and TV \nreceive-only antennae (TVROs) and should be fully \nopen to competition, subject only to appropriate \ntype approval procedures. ,; ; \n\n1 \n\n; ' \ni' \n\n! : \n\n,, \n\n' \n\nf \n\ni \n\nl \n\n1 \ni \n\nj \n\ni \n~ \n\nt \n( \n\n1 < \n1. J, \ni i \" \ni 1'1. l \n,\u00b7\u00b7! \n,j I \n1 ::l'j. ' \n1. ~ \n\n~ \n\n'\u00b71 :\u00b7 \n\n: 1 \n,' \nj \n\n, \n\\ \n\n\u2022\" \n\ni'i \n1: \n'' :,. , \n~ 1. l. i 1 \n\n1 \n\n('. 1 \n\n1 \n\n' \n\ni ~. : ; '. : 1 i \n1 '. : \n\n1 \n\n'\u00b7 1 \n\n1:\u00b71 \n\n;1,' \ni. : \n1. \u00b7J: \n\n'\u00b7 I\u00b7 \n'1 '\" \n; : t \u00b7: \n\u00b711:1 ~. ,'j;:; \n\nj. ) ' \n\n: \n\n1 \n\n; \n\n\f87 \n\n(3) given the expected dramatic changes in technology in \nthe provision of both satellite ground and space \nsegments, the Community urgently needs the \ndefinition of a coherent European position \nregarding: \n\ndevelopment of the earth station market in Europe, \nin particular with regard to common standards ; \n\ncommon positions regarding the future development \nof the space segment, in particular the \nrelationships between Eutelsat, national and \nprivate systems, and the full use of the \ntechnological potential of the European Space \nAgency. This should include common positions on ownership \nand operation of uplink earth stations and direct \naccess to space segment capability in certain \ncases ; \n\n- common positions regarding the future development \n\nof INTELSAT and INMARSAT (cf. Chapter IX). 4. 4. 2. Mobile radio communications \n\nThe evolution of mobile communications in the Community has \nbeen particularly affected by two characteristics: \n\nmobile communications are dependent on the availability \nof frequencies, which are a limited resource. The use \nof f requencies is theref ore closely regulated in all. Member States. On a local basis, a nurnber of systems for specific \nprivate purposes have developed, such as despatch \nsystems for car fleets, emergency purposes, etc. number of Mernber States the number of users of local \nlicensed private systems for specific purposes currently \nexceeds by far the number of subscribers to the public \nsystems. In a \n\nWith the development of the current generation of cellular \nsystems allowing frequency re-use in neighbouring cells, a way \nhas been f ound to circumvent the shortage of frequencies and \nsubstantially to increase the future number of subscribers to \nthe public systems. Efficiency of systems will be further \nincreased with. the introduction of digital mobile \ncommunications. '\" 1. \u00b7 \n\nI\u00b7 \nl \n\nH \n\u00b7\\~ \n\n1 \n\n/, \n\n\u00b7~\u00b7 \n\"] \ni. i \n4l \n\n\u2022 \n\nil~ \n). ' \n/'. -f'. ' \\~. l:i \nr \n~: \n\nl ,, \n\nj \n\nl' \nJ \n\nfi(. -. _ \n\nI~ \n\n' \u00b7) \n\n-~ l ! \n\n\f88 \n\nWhile in most Member States a single public system is operated \nby the Telecommunications Administrations, the United Kingdom \nhas licensed two operators in competition (see APPENDIX 1). France has announced its intention to authorise a. second \nsystem. Mobile communications thus is seen by a number of Member \nStates as a major candidate for competitive supply. Exclusive \nprovision of the main network infrastructure must not hinder \nthe use of new technological opportunities by private systems. On the other hand, compatibility of mobile systems with the \nmain network infrastructure will be a. precondition for \nachieving truly efficient mobile communications, allowing full \ncommunications between any f ixed and mobile telephone \nterrninals both at the national and the European level. Mobile systems have been one of the worst examples of lack of \nCommunity-wide compatibility. Regarding public systems, five \ndif f erent incompatible systems have been i~plemented in the \nMember States. Close surveillance will be needed to ensure the integrity of \nmobile communication and the main network infrastructure. The Commission has submitted proposals to Council to ensure \nthe co-ordinated introduction of public pan-European digital \nmobile communications in the Community by 1991 (cf. Chapter \nVII). 4. 4. 3 Cable TV networks \n\nThe European cable TV market is highly fragmertted. The range \nof regulatory regimes currently applied in the Member States \nincludes the situation where only public ownership is \nperrnitted; where public and private ownership is permitted; \nand where no public ownership exists. \u00b7 \n\n\f89 \n\nIn a number of Member States, the typical unit of operation is \nthe municipality. Networks are often run as utility services \nin the same way as gas or electricity distribution. For \nexample, in the BENELUX countries, the growth of cable \ntelevision has been an extension of the electricity supply \nindustry. This has occured without the participation of the \nTelecomrnunications Administrations. In other countries, such \nas Germany and France the Telecommunications Administrations \n\u00b7have played a central role in cable TV, in France jointly with \n\nthe municipalities. \u00b7 \n\nAs stated in Chapter IV, as long as cable TV systems consist \nof one-way systems relaying broadcast services only, they can \nbe considered outside the mainstream of telecommunications \nregulation. As two-way usage becomes a technological possibility, the \nrelationship of cable TV networks to the general \ntelecommunications network infrastructure will have to be more \nclosely defined. Current trends indicate that there will be a growing number of \ntwo-way cable TV applications in the Community. Technically, \nthe main network infrastructure and cable TV networks will \ngrow more and more closely together, as part of the general \nIn \nevolution towards integrated broad-band communications. the long term the future relationship of Telecommunications \nAdministrations and c\u00e9ble TV operators will have to be more \nclearly defined, in order to ensure the future overall \nintegrity of the telecommunications infrastructure. 5. The Common Market in network eguipment \n\nThe network equipment market -\npWitching equipment \nECU 17. 5 billion telecommunications equipment market in the \nCornrnunity. This market is dominated by the purchasing \nbehaviour of the Telecomrnunications Administrations. - currently accounts for 65 - 70% of the \n\ntransmission and public \n\nThe economics of the network equipment market have changea \ndramatically over recent years. l' \nh\u00b7 \nf. tif. l \n\\. j. 1 \nr. ~\u00b7\u00b7 1 \n\n\u2022. \u00b7. ~) \n' !. -. ' \n\n\f90 \n\nIn one of \n\nthe cost structures have been completely reversed. Digitisation - and the associated new transmission techniques \nof optical fibre and satellite - have dramatically pushed up \nthe industry's research and development costs. Europe's traditionally strong sectors - public switching \nsystems -\nIn 1970, software, the major component of R & D costs, \naccounted for 20% of total deveiopment costs, while hardware \naccounted for 80%. By 1990, this ratio will be reversed - 80% \nfor software development and 20% for hardware. Currently, the \nsoftware to operate a public switching system comprises some \none million programmed instructions. For the early 1990s, with \nthe growing complexity of switches, it is estimated that this \nfigure will have risen to three million. A new public digital \nswitching system will have to secure 8% of the world market in. But no \norder\u00b7 to obtain sound economic viability (see below) \nnational telecommunications market in the Community -\nthe \ntraditional base of manufacturers in the Community \ncorresponds to more than 6% of this market. According to the Union of Industries of the. European \nCommunity, \"in the future the size of national markets will be \nincreasingly inadeguate for dealing in the quantities. necessary to cover the costs of the research, development and \nmarketing of most telecommunications products. The cost of \ndeveloping a digital telephone exchange system, including the \ndevelopment of the software, is over US$ l billion. introduction of a digital telephone exchange system is to be \neconomically viable, the system must reach 8% of the world \nmarket. It is therefore important, while exercising \nappropriate caution in opening up the markets, to bring about \nthe common internal market - which accounts for 20% of the \nworld market - without undue delay\" \n\nIf the \n\n\". in future the rules of competition in Europe must be \ngeared more to world market requirements, and should not \nhinder cross-border consortia of telecommunications companies. Telecommunications requirements must be tackled on a common \nfront, not individually. To ensure the future international \ncompetitiveness of European firrns, it is vital to have \nincreased cross-border co-operation in R & D. The European \nCommunity has an important initiating and co-ordinating \nfunction in this regard. \" \n\n(\"A Telecommunications Policy for Europe\", Report by UNICE, \nDec 1986). 91 \n\nThis change in the economics of the sector has led to \nsubstantial restructuring of the Community's \ntelecommunications industry recently. European industry has \nreacted and has formed new trans-national alliances to build a \nnew economic base for successful competition on the world \nmarket. l \n') \n\nThis restructuring of the supply side of the Community's \ntelecommunications market must now be matched by a \nreorientation of the Telecommunications Administrations' \nprocurement policies away from a purely national base towards \na European base. According to the report cited above, the Telecommunications \nAdministrations \ninfluence on the telecommunications markets and thus on their \ncountries' economies as a whole. \" \n\n\". are able to exert a very substantial \n\n\". In the medium term the solution to the European \n\"probl\u00e9matique\" lies in opening up the system of public \nprocurement in Europe. \" \n\n(UNICE, Report, op. cit. ) \n\nThe Telecommunications Administrations dominate traditional \n~telecommunications equipment markets. The development of a \ncommon market in network eguipment must therefore go hand in \nhand with a substantial increase in the transparency of \nprocurement procedures of the Telecommunications \nAdministrations, in order to ensure an open market in \ntelecommunications equipment. As the Commission has pointed out previously, an efficient \npolicy aimed at opening up public procurement in the network \nequipment market \n\n\"must take account of \u00b7the objective constraints imposed by the \nco~existence of different products within the same network \nthe components of a network must: \n\n\"a) \n\nbe compatible with one another as regards their basic \nfunctions, such as interconnectability. These problems \nare solved, as far as international telecommunications \nare concerned, by the CCITT recommendations ;. J \n\u2022 ~~!) \n~ j \n\n1 \n\nl \n\n~:. 92 \n\n\"b) \n\nmesh with the rnethod of operation of the network under \nconsideration \n\n\"c) \n\nbe able to be covered by pre-existing maintenance \nschernes and arrangements under f avourable economic \nconditions. \" \n\n{\"Progress Report on the Thinking and Work done in the field \nof Telecornrnunications and initial Proposals for an Action \nProgramme\", Communication from the Commission to the Council \non Telecornmunications, COM (84) 277, 18. 5. 1984) \u00b7. The Commission has made it clear that it considers the opening \nof public procurernent as a precondition for achieving the \ncompletion of the internal market by 1992. Given the specifics \nof the telecommunications network equipment market, a \n-\nstep-by-step approach is called for. The main elements needed are as follows (for details see \nChapter VII) : \n\n1) \n\n2) \n\n3) \n\nRapid progress towards common specif ications for network \neguipment. Open specifications for network equipment \nare a precondition for progress towards open \nprocurement. Council Recommendation 84/549/EEC calls on \nthe Member States to ensure that Telecornrnunications \nAdministrations \"from 1986 onwards, when they order \ndigital transmission and switching systems. do so \ntaking full account of recognised standards in the \nCommunity. \" \n\nFull application of Council Recommendation 84/550/EEC \nrequiring that Member States ensure that \nTelecommunications Administrations provide opportunities \nfor undertakings established in other Cornrnunity \ncountries to tender for at least 10% in value of their \nannual orders regarding contracts for switching and \ntransmission apparatus. Close surveillance to ensure that tenderers from other \nMember States are not discriminated against. Article 7 \nof the Treaty expressly prohibits discrimination on the \ngrounds of nationality. This surveillance must also \nensure that no breach of Article 30 is occasioned. Il \n\nL \n\n'I. '! \nj! i \n\n\u00b7 I. ~,. \u00b7 \n\n\u00b71 \n1 \njl \n\n' \n\u2022\u2022 \n\n1 \n1 \n\n\fThe transition towards a Community-wide market for network \neguipment could be substantially accelerated by rapid progress \ntowards more transparencv in procurement orders by \nTelecommunications Administrations, in particular by : \n\n93 \n\nSubstantial acceleration of the use of common \nspecif ications. While network equipment is currently \nexcluded from application of Council Decision 87/95/EEC \nthe Commission has announced its intention to present a \nfurther proposal requiring comrnon specifications to be \nused in public purchasing. Progressive extension of the application of \nRecomrnendation 84/550/EEC to a larger percentage of the \ntotal volume of orders by Telecornrnunications \nAdministrations. The final airn should be replacement of \nthe Recommendation by a Directive, in order to establish \na firm basis for market transparency in the sector. '\u2022. Ili \n\n1 \n\n~-\n\n\f94 \n\n6. Conclusions \n\nAnalysis of the regulatory situation and the current trends of \nadjustment in the Membet States shows that there are \nconvergent trends in current thinking. There is therefore the \ngenuine possibility of reaching agreement on broad cornrnon \nregulatory aims for the. telecommunications sector in the \nCommunity. Trends are converging towards \n\nopening of the terminal markets to cornpetition \n\na cornpetitive value-added services (VANs) sector \n\nseparation of the regulatory and operational functions \n\nmaintenance of exclusive or special rights for the \nprovision of the network infrastructure and a restricted \nand \nnumber of basic services \n\nmore cost-oriented pricing for these services. Telecommunications Administrations would be able to compete in \nthe competitive markets. The common objectives at the Cornmunity level should lead to \nthe progressive irnplementation of : \n\na common market in telecommunications terminal\u00b7 \nequipment ; \n\na common market in telecornmunications services \n\na common market in telecommunications network equiprnent. i ! \n\n'i \n1 \n\ni 1 \n\n1 \" \n\n! \n\n; \n\n: ! \n\n\fFig. 9 lists three essential changes required to advance \ntowards a competitive common market. 95 \n\nProgressive complete opening of the terminal market to \ncompetition. The change from the existing situation of sole supply of \ncertain terminal equipment, in particular the first \ntelephone set, to a competitive environment will have to \nallow, in certain instances, for a sufficient but \ndefined tirne period for industry to adapt to the new \nsituation. Acceptance of clear interconnect and access obligations \nby the Telecommunications Administrations for \ntrans-frontier service providers within the Community. Details of ways of allowing access for cornpetitive \nservice providers to the network infrastructure must be \ndefined. An appropriate means would seern the \ndevelopment of a Directive on Open Network Provision (0 \nN P). A clear separation of regulatory and operational \nfunctions where this still has not been brought about. In a more competitive environment, the \nTelecommunications Administrations cannot continue to be \nboth referee and player. All-Member States currently face the difficult task of \nadapting their Telecommunications Administrations to their \nfuture role as participants in the new competitive markets and \nto choose a status (public/private) most appropriate, \naccording to their perception, to match the new market \nconditions. ,If~ \n\n; , \n\n1. A. 1 \n\n\f96 \n\nWhile it seerns likely that the positions in the Member States \nwill converge on maintaining exclusive provision of network \ninfrastructure on their territory by a single \nTelecommunications Administration, or a very limited number of \nAdministrations, their future interface with the competitive \nsector must be def ined anew : \n\nregarding service provision, and given the blurring of \nboundary lines between basic services and enhanced \nservices, the relevant distinction in the future will be \nbetween those services for which exclusive provision by \nthe Telecommunications Administrations continues to be \nacceptable for the time being, and all other services \nwhich will be open to competition (\"cornpetitive \nservices\"). Voice telephony seems to be the only \nobvious candidate for exclusive provision. services\" and other services would fall under \n\"competi tive services\" \u00b7; \n\n\"Value-added \n\nregarding the provision of leased lines and resale of \ncapacity, all Member States currently_agree on the \nnecessity of securing the financial viability of their \nAdministrations, either by excluding pure resale of \nvoice on leased lines or by tariff schernes which rnake \npure resale of voice to third parties unattractive, such \nas usage-based tariffs. Both rnethods will have to be \naccornmodated in the Community. However, both rnethods \nmust be limited to a legitimate level of protection of \nfinancial viability and must not represent the misuse of \na dominant position ; \n\nregarding tariff principles, tariff structures are \ncurrently undergoing major changes in all Member States, \nand internationally. There is growing recognition of \nthe fact that telecornmunications tariffs should follow \noverall cost trends and that a certain arnount of \nre-balancing of tariffs will be inevitable. A fair \ntrade-off between cost-orientation and the airn of \nuniversal service on reasonably the sarne terrns for all \nwill have to be developed ; \n\nregarding adjacent infrastructures / services, exclusive \nprovision will have to be narrowly defined. 97 \n\nGiven the trend in satellite communications towards \npoint to multi-point 'broadcasting' applications for \nclosed user groups, the regulatory regime for receive \nonly earth stations (ROES) for satellite communications \nshould be assimilated to the regime for \ntelecommunications terminals and TV receive-only \nsatellite. antennae and fully opened to competition. Two-way satellite communications and the regulation of \nup-links will need case-by-case consideration. Competition should be a possibility in those cases where \ninterference with other satellite or radio \ncommunications systems is not to be expected and where \nthe revenue base and financial viability of the general \nnetwork infrastructure provider is not put into \nquestion. (VSAT or \"microterminals\") suitable for data exchange \nonly, these conditions should normally be automatically \nassumed to be met. In the case of very small satellite antennae \n\nWhere cable-TV network infrastructure. is also used for \ntwo-wav communications, its relationship and interfacing \nwith the overall telecomrnunications network will have to \nbe more clearly defined, in order to ensure the \nlong-term overall integrity of the telecomrnunications \ninfrastructure. :1 \n\u00b71 \n\n:-. /{ \n\nl \n\n~. I: \n\n\f98 \n\nVII COMMUNITY TELECOMMUNICATIONS POLICY \n\nDATE \n\nTHE ACHIEVEMENTS TO \n\nThe overall policy framework for Community goals and \ninitiatives was made explicit and formalised in the \nCom~ission's Telecommunications Action Programme, detailed \nafter intensive consultation with the Senior Officials' Group \non Telecommunications (SOG-T) 1Communication by the \nCommission to Council on Telecommunications, COM (84)277, \n18. 5. 1984] and approved by Council the same year [Minutes of \n979th Meeting of the Council, 17. 12. 1984]. In following the Action Programme, the Commission has, within \nthe last two years, made proposals along five main lines : \n\ncc-ordination regarding future development of \ntelecommunications in the Community and common \ninfrastructure projects. This concerns in particular \nthe principal future stages of network development \nthe Integrated Services Digital Network (ISDN), digital \nmobile communications, and the introduction of future \nbroadband communications ; \n\ncreation of a Community-wide market for terminals and \nequipment. Pro~otion of Europe-wide open standards, in \norder to give equal opportunity to all market \nparticipants ; \n\nthe launch of a programme of pre-competitive and \n\"pre-normative\" R&D, covering the technologies required \nfor Integrated Broadband Communications (the RACE \nProgramme) \n\n; \n\npromoting the introduction and development of advanced \nservices and networks in the less-favoured peripheral \nreg ions of the c\u00b7omrnuni ty ; \n\nbuilding up comrnon European positions with regard to \ninternational discussions in this area. ;. : \n\n1 \n1 \u2022. i \n\n1 \n\n\f99 \n\nSince then, in close co-operation with the Senior Officials \nGroup on Telecommunications (SOG-T), substantial progress has \nbeen made. Fig. 10 shows the Decisions, Regulations, \nDirectives and Recommendations adopted and the major \nproposals currently before Council. Progress to date has been founded mainly on three factors : \n\nimplementation within the context of a consistent Action \nProgramme fully backed by Council and the SOG-T ; \n\ncreation of a framework of co-operation with the \nTelecommunications Administrations and industry, in \nparticular with CEPT and CEN-CENELEC ; \n\nfull alignment with the main broad goals of the \nCommunity : completion of the Internal Market ; general \npolicy on standardisation ; Research/Development/ \nTechnology policy ; economic and social cohesion ; \ncompetition policy. A detailed review of progress is given in Communication frorn \nthe Commission to the Council on European Telecommunications \nPolicy, COM(86)325, 5. 6. 1986. Those decisions most essential to the current restructuring \nprocess are reviewed below. 1. Standardisation in Information Technologies and \ntelecommunications, and co-operation with CEPT \n\nDigitisation requires agreement on high-level protocols for \nservices and on network interface standards for terrninals to \nensure proper communications. Standardisation therefore has \nbecome a cornerstone of a policy for : \n\nensuring the future integrity of the telecommunications \u00b7 \ninfrastructure in the Community ; \n\nensuring future open competitive markets \n\npromoting future interoperability of telecommunications \nservices. 1 \n1. 1 \u00b7 \n\n~ \n! \n~'. ~ \nJ \n\n\" 1,-\n\nj \n\n;f(:. ; \n\n' \n\n: \n\n1 \n\n, \n\u00b7'l. ;! \n\n\fCOUNCIL DECISIONS TAKEN IN THE FIELD OF TELECOMMUNICATIONS \n\nSINCE 1984 \n\nFig. 10 \n\nCOUNCIL RECOMMENDATION OF 12 NOVEMBER 1984 concerning the \nimpleme~tation of a common approach in the field of \ntelecommunications (84/549/EEC) \n\nCOUNCIL RECOMMENDATION OF 12 NOVEMBER 1984 concerning the f irst \nphase of opening up access to public telecommunicati_ons contracts \n(84/550/EEC) \n\nCOUNCIL DECISION OF 25 JULY 1985 on a def inition phase for an R&D \nprogramme in advanced communications technologies for Europe (RACE) \n(85/372/EEC) \n\nCOUNCIL RESOLUTION OF 9 JUNE 1986 on the use of videoconference and \n~ideophone techniques for intergovernmental applications (86/C \n160/01) \n\nCOUNCIL DIRECTIVE OF 24 JULY 1986 on the initial stage of the \nmutual recognition of type approval for telecommunications termjnal \nequipment (86/361/EEC) \n\nCOUNCIL REGULATION OF 27 OCTOBER 1986 instituting a Community \nprogramme for the development of certain less-f avoured regions of \nthe Community by improving access to advanced telecommunications \nservices (STAR programme) (86/3300/EEC) \n\nCOUNCIL DIRECTIVE OF 3 NOVEMBER 1986 on the adoption of common \ntechnical specif ications of the MAC/packet family of standards for \ndirect satellite television broadcasting (86/529/EEC) \n\nCOUNCIL DECISION OF 22 DECEMBER 1986 on standardisation in the \nfield of in~ormation technology and telecommunications (87/95/EEC) \n\nCOUNCIL RECOMMENDATION OF 22 DECEMBER 1986 on the co-ordinated \nintroduction of the Integrated Services Digital Network (ISDN) in \nthe European Community (86/659/EEC) \n\n\fFig. 10 Ccont'ed) \n\n~\u00b7\u00b7 \n\nPROPOSALS CURRENTLY BEFORE COUNCIL \n\nPROPOSAL FOR A COUNCIL REGULATION OF 29 OCTOBER 1986 on a Community \naction in the field of telecommunications technologies (RACE) \n\nPROPOSAL FOR A COUNCIL REGULATION OF 1 DECEMBER 1986 introducing \nthe preparatory phase of a Community programme on trade electronic \ndata interchange systems (TEDIS) \n\nPROPOSAL FOR A COUNCIL RECOMMENDATION OF 9 FEBRUARY 1987 on the \nco-ordinated introduction of public pan-European digital mobile \ncommunications in the European Community and PROPOSAL FOR A COUNCIL \nDIRECTIVE on the frequency bands to be made available for the \nco-ordinated introduction of public pan-European digital mobile \ncommunications in the European Community (*). (~) \n\napproved by Council on llth June 1987. i. -; \n\n\u00b7\u00b7~. l: \n\n1, \n\n-~ 1 \n! \ni \n\n1 \n\n-. , \n\n'J l ; \n\n'\u202211 \n\n1\u00b7 \n\nThe Cornmunity's standardisation policy in information \ntechnologies and telecommunications must be seen in the \ncontext of the general new approach to harmonisation, as \napproved by Council in 1985 [Council (Internal Market \nmeetings) on 26. 10. 1983, 25. 11. 1983, 8. 3. 1984, 7. 5. 1985. ] \n\n100 \n\nconcentrating harmonisation on essential aspects and \nacting to promote the drawing up of advanced standards \nand technical specif ications through European \nstandardisation bodies. The Commission is to ensure \nthat common standards become_binding on all Member \nStates through Directives and be used in calls for \ntender for public contracts. deterrnining whether national regulations ar\u00e8 excessive \nin relation to the mandatory requirements thus created \nand, if so judged, designating them as unjustified \nbarriers to trade as defined in Articles 30-36 of the \nTreaty \n\napplication of Directive 83/189/EEC aim1ng to prevent \nthe introduction of new national regulations potentially \nimpeding intra-Community trade. This obliges Member \nStates to notify the Commission in advance of all draft \nregulations concerning technical specif ications that \nthey intend to introduce. A legislative standstill must \nbe observed by the notifying State, following the \nexarnination of the draft regulation, if the Commission \nor a Member State has expressed a justif ied opinion, as \nin the case where the proposed regulation rnight create \nbarriers to trade and especially if specific action \nunder Articles 30 or 100 is envisaged. A similar \nobligation exists regarding the advance notification of \ndrafts of national standards by the National Standard \nBodies. This Directive also makes it possible to \nrealise European Standards. As the Commission has pointed out in its White Paper \n\u00e7oncerning \ncompletion of the Internal Market, Communication from the \nCommission to the Council, COM(85)310, 14. 6. 1985 ] \n\nthe Interna! Market [White Paper concerning the \n\n: \n\n101 \n\nJ \n\n,. 1\u00b7. :. _,. \"while a strategy based purely on mutual recognition would \nremove barriers to trade and lead to the creation of a \ngenuine comrnon trading market, it might well prove inadequate \nfor the purposes of the building up of an expanding market \nbased on the cornpetitiveness which a continental-scale \nuniform market can generate. On the other hand, experience \nhas shown that the alternative of relying on a strategy based \ntotally on harmonisation would be over-regulatory, would take \na long tirne to irnplernent, would be inflexible and stifle \ninnovation. \"What is needed is a strategy that combines the best of both \napproaches but, above all, allows for progress to be made \nmore quickly than in the past. \" \n\nHowever, within this general framework, standardisation in \ninformation technologies and telecommunications must take \naccount of the specif ics of the sector : \n\nguaranteeing a maximum of interoperability and \ninter-working between systems \n\n\u00b7 \n\nrecognising the importance of international \nstandardisation in this field (in particular CCITT, ISO) \nand the need to achieve comrnon interpretation of these \ninternational standards for the Cornmunity ; \n\ninsisting on the requirement for open systems, such as \nguaranteed by the OSI and ISDN standards system. In May 1984, the Council of ~inisters expressed its agreement \nwith the following general points : \n\nthe priority to be given to international \nstandardisation (ISO, IEC, CCITT, CCIR) and in \nparticular to the most recent work leading to the \npreparation of standards furthering Open Systems \nInterconnection (OS!) \n\n; \n\n( \n\n~ ' \n(' \n\n\f102 \n\nthe essential need to ensure harmonised application, at \nEuropean level, of international standards to ensure \ndata communication and interfunctioning between \nsystems ; \n\nthe creation of a Senior Off icials Group on Information \nTechnology Standards {SOGITS) in the field of \nInformation Technologies which, in conjunction with the \nSenior Officials Group on Telecommunications {SOG-T), \nassists the Commission in the implementation of a \nEuropean policy. the systematic us~ of the structures and p~ocedures \nalready available ;. the convergence of Information and Telecommunications \nTechnologies, with the consequences for maintaining \ncoherence in standards relating to these two fields ; \n\nencouragement of the creation of strong, co-ordinated \nsupport for the European standardisation policy. The Council of Ministers stressed the need to impl\u00e9ment this \npolicy urgen1=_!y. The implementation of these guidelines has led to a number of \nCouncil Directives and Decisions, reviewed below. further led to close co-6peration with CEPT (on \ntelecommunications standards), CEN-CENELEC (on information \ntechnology standards) and industrial organisations such as \nECMA and the newly formed SPAG. It has \n\nDetails of these relationships are given in Fig. Il. Further \ndetails of the co-operation with, and the set-up of, CEPT are \ngiven in APPENDIX 3. Objectives, legal instruments, organisational framework and \ncurrent problems are briefly reviewed below. ORGANISATIONAL RELATIONSHIPS IN \nSTANDARDS DEV~LOPM~NT I_~ EUROPE \n\nFig. 11 \n\nCEPT \n\nITSTC \n\nCEN-CENELEC \n\n' f. _a\\. \" \n\n1 \n\n1 \n\n1 \n\n1 \n__ CO. VNCIL \n\nINTRODUCTION \nINTO \nNATIONAL \nSTANDARDISATION. --soGT \n\nSOGITS \n\nUSERS \n\nTElECOMS \n\nIT \n\nINDUSTRV \n\nECMA \n\nLegend \nCEN-CENELEC: \n\nCEPT: \nECMA: \nITSTC: \n\nNET: \n50$-T: \nSOGITS: \nSPAG: \n\nJoint Europeon Standards lnstiMion (European Committee for standardisation / \u00b7 \n\n\u00b7 Europeon Committee for electrcrtechnical standardisation) \n\nEurooe0n Conference of Postal and Telecommunications Administrations \nEuropean Computer Manufacturers' Association \nInformation Technology Steering Committee (made up of representatives from \nCEN-CENELEC and CEPT) \nNormes Europ\u00e9ennes de T\u00e9l\u00e9communications \nSenior Officiais Group on Telecommunications \nSenior Officiais Group on Information Technology Standards \nStandards Promotion and Application Group. ' i. ~b \n!' \n1 \nj \n\n) \n\u00b7~. -4 \n\n1\u2022 ) \n\n1 \n\n\f' 1 \n1' \n1 i ' \n\n'. 1 \n\n1 \n\n[ \n\n! ' ==== \n\n103 \n\n1. 1. Objectives \n\nThe Community aims to use to the maximum standards and \nspecif ications based on international standards and \nrecommendations. This concerns in particular the \nrecommendations of CCITT and CEPT. These international standards or recommendations must be \nreviewed at the technical level in order to make them \n\na) \n\nb) \n\nc) \n\nprecise ; \n\nunambiguous \n\ncomplete, and this might include the addition of \nconformance testing procedures. On this basis are produced \n\ncommon standards and \n\ncommon conformity specifications \n\nwith the aim of \n\ndevelopment of a Community-wide market and \n\nCommunity-wide compatibility of terminal equipment. 1. 2. Legal Instruments \n\nSince 1984, the Community has built up a set of legal \ninstruments which will form the framework for Community \nstandardisation policy in information and telecommunications \nstandardisation, as they corne into force. 1. 2. 1. Council Directive 86/361/EEC on the initial stage \nof the rnutual recognition of type approval for \ntelecornrnunications terminal eguiprnent of 24th July \n1986. 104 \n\nIn July 1986, an important step forward was taken with the \nadoption by the Council of a Directive on the mutual \nrecognition of the results of conformity tests on terminal \nequipment. The directive, which will corne into force in July \n1987, says that no further tests for a particular type of \nterminal equipment are needed where the results of tests \ncarried out have already led to the issuing of a certificate \nof conformity with the relevant common conformity \nspecif ication. With a few exceptions, such certificates of \nconformity shall be recognised for the purpose of type \napproval of the terminal equipment in question by all Member \nStates. The common conformity specifications should be drawn \nup in view of their uniform application in al! Member States \nof the Community. Member States shall also ensure that the Telecommunications \nAdministrations use common conformity specifications when \npurchasing terminal equipment covered by such specifications. The Directive gives the Commission a brief : \n\nto draw up each yeai a list of international standards. and technical specif ications in telecomrnunications to be \nharmonised, and a list of terminal equipment for which \ncomrnon conformity test specifications should be drafted \nas a matter of priority ; \n\nto draw up a timetable for this work ; \n\nto request the CEPT to draw up the common conformity \nspecif ications in the form of European \nTelecommunications Specif ications (NETs \nEurop\u00e9ennes de T\u00e9l\u00e9communications \nAPPENDIX 3). see below and \n\nNormes \n\nthe Commission shall be a\u00e8sisted in its work by a \nCommittee which shall be the Senior Officials Group on \nTelecommunications (SOG-T). The Directive defines \"essential \n\nreguirements\" as \n\n\"those aspects of common conformity specifications of such \nimportance as to necessitate compliance as a matter of legal \n\n\u00b7obligation for the irnplernentation of the rnutual recognition \nof the results of conformity tests on terminal equipment as \nan integral part of the type approval procedure. These \nessential requirements are at present \n\n1 \ni \nJ. 0? \n\n~. -~ \n\n\f105 \n\n\" \n\n\" \n\n\" \n\nuser safety in so far as this requirernent is not covered \nby directive 73/23/EEC \n\nsafety of ernployees of public telecornrnunications network \noperators in so far as this requirernent is not covered \nby Directive 73/23/EEC \n\nprotection of public telecornrnunications networks from \nharm ; \n\n\" ~ \n\ninterworking of terminal equipment in justi\"f ied cases. \" \n\nThe last point applies, in the Commission's interpretation, \nin particular to terminals related to services for universal \nprovision, in particular those services recommended by \nCouncil for Community-wide provision, such as according to \nCouncil Recommendation 86/659/EEC on the Co-ordinated \nIntroduction of ISDN (see below). This may require, \ndepending on the case given, specifying NETs up to layers 6 \nand 7 of the OS! seven layer model. The Commission has also announced that it will submit to \nCouncil shortly a general Directive on safety of machines and \nradio-electric compatibility which together with Directive \n73/23/EEC will be of relevance regarding general requirements \nfor telecommunications equipment. \u00b7 \n\nMutual recognition of type approval will play a central role. for a Community-wide terminal market (see Chapter VI). According to the Directive, the Commission should make \nproposals to extend\u00b7the current Directive to full recognition \nof type approval before July 1989. Given the importance of \nrapid progress, the submission of these proposals is to be \naccelerated. 1. 2. 2. Decision 87/95/EEC on standardisation in the field \nof information technology and telecommunications, \nof 22nd December 1986 \n\nThe Decision was adopted in December 1986. It will corne into \nforce in February 1988, one year after its publication in the \nOfficial Journal. 106 \n\nThe Decision covers : \n\nstandards in the field of information technology \n\n\" \n\nfunctional specif ications for the services specif ically \noffered over the public telecommunications networks for \nexchange of information and data\". It excludes common technical specif ications for terminal \nequipment covered by Directive 86/361/EEC (see above) and \nequipment belonging to any part of the telecommunications \nnetwork infrastructures \n\nthemselves. 1 \n\nAccording to the Decision, the following measures will \nap. ply : \n\nregular, at least annual, determination of priority \nstandardisation requirements ; \n\nrequesting European standards institutions and\u00b7 \nspecialised technical bodies in the information \ntechnology sector to establish \"European standards\" \n(ENs), \"European pre-standards\" (ENVs) or \ntelecommunications functional specif ications based, as \nfar as possible, on international standards. necessary, they will have recourse to the drafting of \nfunctional standards to ensure the precision required by \nusers for the exchange of information and data and \nsystem interoperability ; \n\nIf \n\nfacilitating the application of stand\u00e7rds in the \nverification and certification of products ; \n\nMember States shall ensure that reference is made to ENs \nand ENVs and international standards in public \nprocurement orders. The application of standards in public procurement is an\u00b7 \ninseparable part of the proposed approach and is justif ied by \na dual relationship : \n\n~ \n\nthe preparation of national and proprietary \nspecif ications is a serious obstacle to the opening-up \nof the market ; \n\n~ \n\n1 \n1 \ni \n\n\f107 \n\nthe use of standards for public procurernent helps to \nprornote thern, and rnany users outside the public sector \nreadily follow the exarnple given once they know that \nthese standards are in common use. Regarding network equipment, currently excluded from the \napplication of the Decision, the Council and the Commission \nhave asked the CEPT to work progressively towards \nspecif ications for such equiprnent. The Commission has stated \nits intention to present a further proposal to reqvire such \nspecif ications to be used in public purchasing [Statements \nfor the Council Minutes, Council Meeting of 22. 12. 1986]. Network equipment specif ications are currently excluded in \nrelation to procurement; but it should be noted that, in the \nnew digital environment, the provision of end to end \ncompatibility requires that functional specifications should \nbe well harmonised, especially in relation to signalling. Regarding telecommunications network interface \nspecifications, the Decision states (Article 5. 2} \n\n- \"In order to provide end-to-end cornpatibility, Member States \n\nshall take the necessary steps to ensure that their \nTelecornmunications Administrations use functional \n\n- specif ications for the means of access to their public \n\ntelecommunication networks for those services specif ically \nintended for exchange of information and data between \ninformation technology systems which themselves use the \nstandards mentioned in paragraph l. \" \n\nThis'means that network interface specifications of \nTelecommunications Administrations will have to be based on \nNETs, ENs, ENVs or other accepted international standards. 1. 3. Orqanisational framework \n\n1. 3. l. Memorandum of Understanding between the European \nConf erence of Postal and Telecommunications \nAdministrations and the Commission concerning \nstandards and type approval \n\n\f108 \n\nThe Memorandum of Understanding establishing a f ramework of \nco-operation between the Community and CEPT was signed in \nJuly 1984. According to the Memorandum, the CEPT produces \ncommon standards and specif ications for type approval in \npriority sectors, determined at Community level. Current priorities considered under the agreement are : ISDN, \nOSI, mobile telephony, teletex, telefax group IV, videotex \nand criteria for recognised test laboratories. Parallel to the adoption of the Directive on the mutual \nrecognition of type approval for telecommunications terminal \nequipment (see above), the CEPT took complementary action to \nstreamline its work and to make the application of its own \nrecomrnendations more effective. It therefore established \nmechanisms to select those recommendations which should \nbecome binding in those countries which \nsigned an agreement \ndrawn up by the CEPT at Copenhagen on lSth November 1985, in \nthe form of so-called NETs (Normes Europ\u00e9ennes de \nT\u00e9l\u00e9communications) Csee above). Similar to the provisions in the Directive, those signatories \nof the agreement which are not Member States of the Community \nhave also resolved to use NETs or parts thereof for type \napproval purposes. They have furthermore decided to create \nwithin CEPT an autonomous Technical Recommendations \nApplication Committee {TRAC) which will be responsible for \nthe implementation of the agreement. Within this Committee \nunanimity is required to decide which terminal equipment \ntechnical recommendations are candidates for mandatory \napplication. The decision whether a terminal equipment \ntechnical recommendation shall become a NET is taken by \n(weighted) majority voting. 1. 3. 2. The general guidelines approved with the joint \nstandardisation organisation European Committee for \nStandardisation/European Committee for Electro \ntechnical Standardisation (CEN/CENELEC) \n\nl. l \n\nf \n\n1. \u2022 \n\nj \nJ \n\n1 \n~ \nl \n\n1 \n\n\f109 \n\nThe Commission has concluded an agreement with CEN/CENELEC \nsimilar to the Memorandum of Understanding with CEPT. Since \nJune 1984, these bodies have agreed to carry out the \nnecessary work in the field of information technology and \nhave reorganised their structure \u00e2nd procedures. Under the arrangement : \n\nCEN/CENELEC can be comrnissioned to carry out the \nnecessary technical work, in particular for the \npreparation\u00b7of an EN standard. According to framework \ncontracts signed in 1985 between CEN/CENELEC oh the one \nhand and the EC and EFTA on the other, the placing of \norders for such work can involve a f inancial \nparticipation. The adoption of rules cornmon to CEN and CENELEC now \nfacilitates-work carried out jointly (for exarnple \nstandards are now adopted by the same weighted rnajority \nballoting system). The setting-up of a Steering Cornmittee specific to \ninformation technology (ITSTC) enables the work to be \nmonitored and ensures proper links with other committees \nresponsible, for example, for certification or \nstandardisation of advanced manufacturing equipment. The reverse procedures also provide for a f irst stage \nwhereby development standards (ENV standards) can be \nrapidly adopted and verified experirnentally. After a \ntwo-year period, the ENV standard becomes an EN standard \nin accordance with the normal procedure. 110 \n\nThe current priorities, determined in October 1984, \ninclude : \n\nOSI -\nnetwork interface, LAN connectors, etc. layers 1 to 3 \n\nOSI - higher layers\u00b7 \ntransport, file transfer, etc. electronic message handling and document transfer \nMHS -\n\nteletex \n\ncharacter sets \n\nformal description techniques - security \n\nsupplements to standards for exchange of data stored on \nmagnetic media and printer interfaces \n\nThis list has been updated and CEN/CENELEC/CEPT is f ollowing \nup the proposed work programme, published under the reference \n\"IT - Memorandum N 2\". l. 3. 3 \n\nPromoting the development of recognised conf ormance \ntesting centers. Th~ Community has given high priority to the area of testing \nby launching projects for the promotion of conformance \ntesting services capable of verifying conformity with \nfunctional standards. On the basis of a Call for Proposals published in 1985, a \nprogramme for the development of test facilities and \nprovision of conformance testing services was launched at the \nend of 1985 and the contracts were signed early in 1986. 1. 3. 4. Co-operation with industry \n\nThe European telecommunications and information industry has \nsubstantially stepped up its commitment to open international \nstandardisation, in particular based on co-operation and \ncommmon projects in the framework of ESPRIT and RACE. :. ~ \n\nl J. \u2022. ) ' \n\n\f111 \n\nAs early as January 1984, twelve major European IT companies \nclearly indicated their support for a standardisation policy \nbased on a harmonised implementation of international OSI \n{Open Systems Interconnection) standards and expressed their \ncommitment to the implementation of such standards in their \nproducts. ,. The creation of the Standards Promotion and Applications \nGroup (SPAG) has allowed these companies to ~trengthen their \ncontribution to the standardisation work and to establish \nfurther links with other similar organisations (USA and \nJapan} to promote international co-operation i~ this field. At the same time, European industry has created a broader \norganisational base for this work. In 1985, the European \nTelecomrnunications and Prof essional Electronics Association \n(ECTEL) was founded as a joint conference by ECREEA and \nEUCATEL (\"European Conference of Radio and Electronic \nEquipment Associations\" and \"European Conference of \nAssociations of Telecommunications Industries''). ECTEL has \ncreated the \"ECTEL Study Group for CEPT harmonisation\" in \norder closely to interact with standardisation work in CEPT. 1. 3. 5. The continuing lack of resources \n\nCornmon standards and specifications are a pre-condition for \nan\u00b7operi competitive market. The substantial reinforcement of \nthe international standards process and its application to \nnetwork infrastructure and services is a pre-condition for \nthe development of a Common ~arket for equipment and \nservices. The f ramework for accelerating the process is in place \n\nthe Directives set out above provide a f irm legal \nbasis ; \n\nthe co-operation agreements with CEPT and CEN-CENELEC \nprovide the framework for working out NETs, ENs, and \nENVs with the required technical authority. 1 \n\ni'' \n1,' \nI\u00b7,,. 1 \n\n; \n\n!1 \n,\u00b7. ''\u00b7 1/; \n\n\f112 \n\nThe major objective must now be to make this framework work. Directive 86/361/EEC and Decision 87/95/EEC can only become \neffective if NETs and EN/ENVs are produced by the standards \norganisations on time and in sufficient quantity. As discussed in Chapter III, the convergence of \ntelecommunications and information technology has made the \ninternational standardisation process substantiaily more \ncomplex. Agreement on highly detailed network interface \nstandards and on high-level protocols is needed to ensure \nproper connection and interworking of the highly \nsophisticated digital terminals of the future. If Telecommunications Administrations are to provide open \nnetwork access to competitive services, and if they want to \nguarantee efficient national, Community-wide and world-wide \ncommunications, the production of standards will have to be \ndramatically accelerated. Shortages in standardisation have been one reason for the \ninsufficient provision of Community-wide communications in \nnew services \n[see \"Clearing the Lines, a User\u2022s view on Business \nCommunications in Europe\", Round Table of European \nIndustrialists, October 1986]. such as X. 25 networks, teletex, videotex \n\nCEPT and CEN-CENELEC have shown a noteworthy ability to adapt \nto the new requirements. co-operation agreements with the Commission, they have \nstreamlined their working methods and a number of NETs and \nEN/ENVs are expected to be produced on schedule. In the framework of their \n\nBut the two organisations have to continue to \nbasis of non-industrial working methods, based \ngroup meetings and part-time availability of \nTelecommunications Administrations' experts. with industry which is now indispensable, has \nst~engthened, but is still not on a permanent \n\nwork on the \non working \n\nCo-ordination \nbe en \nworking level. [; \n\n\u2022,\u00b7 \n\n! \n\n_. l \n\n1 \n\n1 6YJ\u00bb , \n\n\u00b7 l \nJ \n\n\f113 \n\nIn the past, lack of resources for the international \nstandards process has been one major contributing factor \nleading to incompatible national or proprietary \nspecifications. National or proprietary specifications can \nbe anti-competitive. The United States have substantially strengthened their \nstandards setting process and input to CCITT in the wake of \nderegulation. Within BELLCORE, jointly owned by the now \nindependent Bell Operating Companies (see APPENDIX 1), 8000 \npermanent staff work jointly on technological development, at \nleast 20-30% of which is on standards and specif ications \n(Fact Finding Mission Report by the Commission of the \nEuropean Communities, June 1986]. The establishment of a more competitive market must go in \nparallel with a substantial strengthening of resources in the \nstandardisation process. The Community can contribute \nsubstantially, as has been shown by the programme for the \npromotion of recognised conformance testing centers, carried \nout jointly with the Telecommunications Administrations. It is now time to consider together with CEPT and CEN-CENELEC \nthe best way to establish industrial working methods based on \npermanent teams, including an increased contribution by \nindustrial and user experts. The strengthening of the \nprocess must go substantially beyond current resources \navailable for the TRAC mechanisms and for a number of \npermanent nuclei which have been set up by CEPT. The only \nefficient solution for creating a permanent basis will be the \nestablishment of a stable physical centre. Such a European \nTelecommunications Standards Institute could provide the \npermanent core functions on which the acceleration of \nstandards work can be based. institutional conditions for a strengthening of the current \nframework of co-operation of the Telecommunications \nAdministrations and industry within CEPT and CEN-CENELEC. In this way it would create the \n\n\f114 \n\n1 \n\n1 \n\n1 ~ \n\n2. Promoting the co-operative developrnent of advanced \ntelecornmunications in Europe \n\nA future Cornrnon Market in services and equiprnent in the \nCommunity will only becorne effective if efficient \nCommunity-wide advanced network infrastructures is made \navailable. The Action Programme since 1984 has strongly \nemphasised this aspect, closely related to the establishment \nof Community-wide specifications for network infrastructure \nand services. Depending on the time horizon, advanced infrastructure and \nservice development need a combination of : \n\nin areas where technology still needs to be \n\nR&D, \ndeveloped and \"pre-norrnative\" work needs to be \nundertaken ; \n\nagreement on standards, in areas wher~ technological \nfeasibility and capability has been established but \nagreement on specif ications is needed to create the \nnecessary economies of scale and scope \n\ninvestrnent,in areas where the economic and technological \nbasis has been established. It is with this framework in mind that within the mandate \ngiven by Council, the Action Programme in telecornmunications \nhas been developed. Details are set out below. The actions aim at developing a \nfavourable environrnent for telecomrnunications investments. Beyond the programmes set out the Community makes, via its \n\nfinancial instruments, a substantial contribution to \ntelecommunications investment. telecommunications investment by the European Investment Bank \nand the New Community Lending Instrument (NIC) have totalled \n572 million ECUs. Total contributions from the European \nRegional Fund, within the framework of its annual operations \nwere 162 million ECUs. In 1985, loans for \n\nIn order to facilitate the determination of concrete medium \nand long-term objectives the Analysis and Forecasting Group \n(GAP) has been set up as a sub-group of the Senior Off icials \nGroup on Telecommunications (SOG-T). GAP is cornposed of \nrepresentatives of the Telecommunications Administrations and \ntheir ministries, officials from the ministries of economics, \nindustry and science and representatives of the Commission. j \n\n1: \n) \n\u00b7~. J \nl \n\n\u00b7)~ \nf. t} \n\nJ'. !JI \n1'; \n\nQ \n\n-\n\n1 \n\u00b7~. \u00ef \n\n_1. ,,. _!\u00b7. t \n\ni' \u00ef f \n\n'. ,1 \n''. t' \n\n115 \n\nIn addition to the GAP members, designated participants from \nsupplier industries have taken part in the deliberations on \nspecif ic subjects. Detailed work undertaken in GAP and \nconf irmed by the SOG-T has been the basis of important \nCommunity initiatives, notably on the co-ordinated \nintroduction of ISDN and on second-generation mobile \ncommunications. GAP has also worked on the introduction of \nbroadband services and has contributed to the development of \nthe. RACE programme. The RACE pr0gramme itself was conceived and developed since \n1984 on the basis of broad consultation and participation of \nindustry ~nd the European Telecommunications Ad~inistrations. 2. 1. The RACE programme \n\nIn March and April 1985,\u00b7 the Commission submitted proposals \nto the Council for a programme on R&D in Advanced \nCommunications technologies for Europe {RACE) \nCommission to the Council on R&D Requirements in \nTelecommunications Technologies as a contribut~on to the \npreparation of the R&D programme RACE, COM{85)145, 25. 03. 85 \nProposal for a Council Decision on a Preparatory Action for a \nCommunity Research and Development Programme in the field of \nTelecommunications Technologies, COM(85)113, 01. 04. 85]. In \nJuly 1985 the Council authorised an 18 month RACE Definition \nPhase beginning_on lst July 1985 [Council Decision on a \nDefinition Phase for a Community action in the field of \ntelecommunications technologies (85/372/EEC), L210/24, \n07. 08. 85]. (Report of the \n\nIn October 1986, with the Definition Phase drawing to a \nclose, the Commission submitted proposals and a workplan for \nRACE Main Phase [Proposal for a Council Regulation on a \nCommunity action in the field of telecommunications \ntechnologies, COM(86)547 final, 29. 10. 86]. The Council is \nstill considering this proposa!. This work-plan proposed a contribution of 800 million ECUs \nfor the first phase (1987-1991). 116. , \n\nl ,. l \n\nIt aims at the \n\nThe object~ves of RACE are ambitious. introduction of Integrated Broadband Communications (IBC} \ntaking into account the evolving ISDN and national \nintroduction strategies, progressing to Community-wide \nservices by 1995. Moreover, RACE requires co-operation \nbetween a large number of players, including the \nTelecommunications Administrations and telecommunications \nuser industries and services. of the introduction of broadband services in the Cornrnunity \nand it involves the elaboration of common standards and \nspecif ications. It involves concrete planning \n\nThe \"pre-normative\" activities are extremely important. They \nnot only avoid the familiar diff iculties of ex-post \nharmonisation and hence create the conditions for an \nefficient, unif ied single market in a key technology : they \nalso ensure the interoperability of the future systems. (July 1985-December 1986) allowed \n\nThe RACE Definition Phase \nthe work on performance requirements and technical \nspecifications to be conducted at Comrnunity level \nthrough the participation of CEPT, involving Western Europe \nas a whole. organisations and firms participated in this definition \nphase. 400 experts belonging to 109 public and private \n\nand, \n\nThe elaboration of an IBC reference mode! \ndesign of the European broadband network. and services \ncarried out by three groups : \n\nthe basic \n\n- was \n\n\"networks\", which defined standards requirements, and \nwas handled by GSLB (\"Groupe Sp\u00e9cial Large Bande\") of \nCEPT. For this purpose a permanent technical team has \nbeen established in Darmstadt \n\n\"terrninals\", \u00b7involving shared cost contracts with \nrnanufacturers, research laboratories and \nTelecomrnunications Administrations ; and \n\n\"services\" carried out in the SOG-T/GAP. l \nl\u00b7 \n1'\u00b7 \ni. (,. i \u2022. , \n\n'~{' \n\n~-\n'\u2022 \n\n' \n\n','a!f \n\n\f117 \n\nRACE will provide a major tool for ensuring Community-wide \nnetwork integrity for the telecommunications infrastructure \nof the 1990s. Regulatory reforrn of the European \ntelecommunications environment must now catch up with the \npotential created by technological planning and technology \ndevelopment. Manufacturers and service providers require \nclear indications of the terms under which they will be \nallowed to operate, and of the prospects for a single \nEuropean market. Certainty on these points will help to \ndetermine the degree of enthusiasrn with which industry \u00b7will \ntackle the ~&D phase of RACE and the formation of \ncross-national alliances between Telecornmunications \nAdministrations and industry. While clarifying the technical and regulatory environment is \nvital for business planning, the network operators must \nprovide the needed network infrastructure well ahead of full \ncommercial use. The Commission has studied, together with \nthe network operators, proposals for a Comrnunity-wide pilot. joint infrastructure project, the Transnational Broadband \nBackbone (TBB) which is to accelerate the establishment of \nhigh bandwidth cross-frontier transmission links. This is at \nthe final stage of evaluation in GAP and SOG-T. The \nCommission has announced for 1987 a communication to Council \non this proposal. 2. 2. The Integrated Services Digital Network \n\nIn December 1986 the Council issued a Recommendation for \nCo-ordinated Introduction of ISDN {Council Recommendation on \nthe co-ordinated introduction of the integrated services \ndigital network (ISDN) in the European Comrnunity \n(86/659/EEC), O. J. 1382/36, 31. 12. 86). The co-ordinated introduction of ISDN provides a stepping \nstone towards a future broadband network. By adapting the \nincreasingly available digital narrowband infrastructure, \nISDN will allow voice, data, text and simple video \ncommunication on the existing network. At the same time ISDN \nallows the creation of a \u00b7single market for advanced \nterminals, and lays the basis for the Community-wide \nintroduction of new services (see Chapter IV). : 1. 1\n\n1 ~ \n\n\f1 \\ \n\n118 \n\nUnlike RACE which reaches further into the future, ISDN does \nnot require substantial R&D at Comrnunity-level~ Rather it is \nbased on the on-going digitisation of the telephone network. Joint planning at Community level was only initiated after \nsome national Administrations had already advanced \nconsiderably on the elaboration of different ISDN versions. On these def initional problems, the Recommendation lays down \ntimetables for agreement on the various elements, notably \nwith CEPT, and a requirement for annual progress reports to \nthe European Parliament. As to the co-ordinated introduction of ISDN, the \nRecornrnendation : \n\nsets an objective for 1993 market penetration, for a \nnumber equivalent to 5% of main lines ; \n\nsets an objective for 1993 availability, with 80% of \ncustomers having the option of ISDN access ; \n\ninvites the Telecornrnunications Administrations to study, \nwithin CEPT, the question of tariffs, with a view to \nestablishing tariffing principles\u00b7and rate levels which \nf avour rapid acceptance of new services by business and \nother users ; \n\ncalls for the Community's financial instruments to \ncontribute to the ext~a investments required for ISDN. ISDN should become the Community's future-oriented open \nnetwork infrastructure on which services can develop. The Recommendation sets forth essential elements for \nproviding such an open environment : \n\nspecif ication of interfaces between the network and \nterminals ; \n\nspecif ication of a number of end-to-end services to be \nprovided with universal availability ; \n\ngeneral tariff principles for ensuring an open use of \nthe network infrastructure. \u00b7i1_ \n\n~2) \n\nl \n_J. 119 \n\n2. 3 Advanced telecommunications services for the \nless-favoured regions (STAR Programme) \n\nIn October 1986 the Council issued a Regulation instituting a \nCommunity programme for the development of certain \nless-favoured regions of the Community by improving access to \nadvanced telecommunications services (STAR programme) \n[Council Regulation instituting a Cornmunity programme for the \ndevelopment of certain less-favoured regions of the Community \nby improving access to advanced telecommunications servies \n(STAR programme), 3300/86, O. J. L305/l, 31. lO. e6l. This programme is an application of the Regulation covering \nthe European Regional Development Fund (ERDF) [Article 7(4), \nCouncil Regulation 1787/84] which entered into force in 1985. This regulation permits a better linkage between regional \ndevelopment objectives and other Community goals, in this \ncase including peripheral regions in the development of an \nintegrated and advanced telecomrnunications network in the \nCornmunity. The programme concerns peripheral regions in Greece, Italy, \nSpain, Portugal, Ireland, the United Kingdom (Northern \nIreland) and France. The programme will provide during the \nperiod 1986-1990 780 million ECUs. STAR starts from the recognition that the telecommunications \ninfrastructure of certain peripheral regions lags badly \nbehind the rest of the Community, while at the same time, the \navailability of telecommunications services will be a growing \nfactor in the location of new industries and the viability of \nexisting ones. Of particular concern are small to medium \nsize enterprises (SMEs) which form the backbone of the \neconomy in most of these regions. Accordingly, the programme involves \n\nsubstantial contributions to investment in \ntelecomrnunications network infrastructure; \n\nfinance for the development of telecommunications \nservice centres, especially for SMEs; \n\nsupport, especially to SMEs for the use of terminals, \nmodems, and other equipment; \n\nother promotional measures including technical \nassistance. 'I~ \n\u00b711,\u00b7li; [' \n, ~. \u00b7. r \n' i. :1111 \n' 1:( \n'1. : J. 1 \n\u2022', i \n\n1 \n\n1 \n\ni ,. 1. 1 \n1 ~ \n; 1: \n' ~ \n\n1 \n\n: \n' \n\n; \n\n1i11 \n\nl J, ' \n\n\f120 \n\n2. 4 Mobile Communications \n\nIn Feburary 1987 the Commission submitted two proposals to \nthe Council \n\nfor the co-ordinated introduction of public \npan-European digital mobile communications in the \nCommunity; and \n\non the frequency bands to be made available for this \npurpose [Proposal for a Council Recomrnendation on the \nco-ordinated introduction of public pan-European digital \nmobile communications in the Community; Proposal for a \nCouncil Directive on the freguency bands to be made \navailable for the co-ordinated introduction of public \npan-European digital mobile communications in the \nCommunity, COM{87)35 final, 09. 02. 87}. In the past, mobile communications has been one of the worst \nexamples of lack of Community-wide compatibility. With the \ngrowing importance of mobile services, the Commission has \nacted together with the Telecornmunications Administrations. A\"first objective of the Community has been to achieve \nagreement by Member States f irmly to reserve \nthe second generation pan-European digital system. Reservation of frequencies is the major precondition. for a \nfuture Comrnunity-wide system. The Commiss\u00eeon's proposal \nreferred to above follows from 1985 GAP proposals, as \ndiscussed by CEPT, the Telecommunications Administrations and \nindustry. frequencies for \n\n2. 5. Trade Electronic Data Interchange Systems (TEDIS) \n\nIn December 1986, the Commission proposed a programme on \nTrade Electronic\u00b7 Data \u00b7rnterchange Systems [Communication frorn \nthe Commission to the Council on Trade Electronic Data \nInterchange Systems (TEDIS) \nprogramme on trade electronic data interchange systems \n(TEDIS), COM(86) 662 final, Brussels, 01. 12. 86}. ; Proposal for a Council. ,, -- ~ \u00e7l. t \n\n1,. \u00b7. \u00b71\u00b7. \u00b7. J. 1 \n\nj; \n\n1. 1 \u00b7, \n;\u00b7_ \n\nI\u2022 \n\n\u00ab!( \n\n\u00b7:~ ~ \n\u00b7i \n\n-\n\n--\n\n-\n\n- -\n\n-- ~----\n\n\\; \n' \n\n\f121 \n\nTrade increasingly requires a vast volume of data exchange \nbetween business partners ; and a high proportion is \ninternational. Often this data exchange is more time \nconsuming than the actual manufacture or delivery of the \ntraded goods or provision of the traded services. Currently \ndata exchange is carried out on paper and through a \nmul~iplicity of incompatible computer systems. Standardised Electronic Data Interchange (EDI) has therefore \ndeveloped as one of the most promising lines of value-added \nservices, based on co-operative ventures mainly established \nby industry associations. European business - up to 10% of the cost of exported \nf inished products and 10-15% of final transport costs. This \nwould clearly enhance the competitiveness of Europe~n \neconomies, at a time when EDI is developing fast elsewhere, \nnotably in the US. It can afford great s~vings for \n\nThe proposed preparatory phase (6 million ECUs in 1987/88) \nwould concentrate on developing work on standardisation, on \npromotional activities and other conditions for EDI at \nComrnunity level, and the development of a strategy for a full \nprogramme phase. 3. Application of Community competition policy to the \n\ntelecommunications sector to date \n\nRapid technological change and the related growing number of \nnew opportunities have led to a rising number of cases \nrelating to Community competition law being brought before \nthe Commission. While the general application of the Treaty to \ntelecommunications must be seen against the broader \nbackground of the Treaty and case-law set by the Court of \nJustice a number of specif ic cases and decisions are reported \nbelow. Telecommunications cases have been treated by the Commission \nunder competition law basically according to two aspects : \n\na state monopoly's or a public undertaking's (including \nTelecomrnunications Administrations) anti-compet~tive \nbehaviour may be due to domestic laws or governm~nt \ninstructions. taken \nunder Articles 37 and 90(1) and (3) against the \ninfringing Member States ; \n\nIn such cases action has been. 122 \n\ninvolved in\u00b7 anti-competitive \n\nenterprises in the telecommunications or information \ntechnology field may be \narrangements or behaviour. This may concern public \nnetwork operators (Telecommunications Administrations) \nor \"undertakings\" within the meaning of Articles 85 \nand/or 86 when they are not simply implementing laws or \ngovernment instructions but are performing independent \nentrepreneurial activities. 3. l. The \"British Telecom case\" \n\n~he case originated from a complaint lodged by a private UK \nmessage-forwarding agency against the UK telecommunications \nauthorities. It concerned prohibitions imposed by the Post \nOffice and, after the Telecommunications Act 1981, by British \nTelecom as to the transit of telexes between third countries, \ne. g. between Continental Europe and North America, and as to \nthe forwarding in telex or telefax form of messages received \nvia computer connections. A Commission decision of 10 December 1982 (OJ L 360, 21 Dec. 1982, p. 36; 12th Competition Report (1982), point 94) \ncondemned such prohibitions as abuses of a dominant position. The Italian government challengea the decision before the \nEuropean Court of Justice. The UK government supported the \nComrnission's defence before the Court (Case 41/83). In its judgement of 20 March 1985 the Court dismissed in its \nentirety the action brought by the Italian Republic. The \n\u00b7judgement was reported in the 15th Competition report {1985, \npoints 95-101} as follows: \n\na \n\n- of abusing its dominant \n\n\"In its decision, the Commission had accused BT \npublic corporation established by statute holding a \nstatutory monopoly on the running of telecommunications \nsystems ~n the United Kingdom \nposition within the meaning of Article 86. The main \ninfringement of this provision recorded by the \nCommission was the fact that BT prohibited private \nmessage-forwarding agencies in the United Kingdom from \ntransmitting via the British network messages whose \noriginators and recipients were resident in other \nIn point of fact, several schemes adopted by \ncountries. BT between 1975 and 1981 governing the use of the public \ntelecommunications network by private subscribers \ncontained such restrictions. 1 \n\n\u00b7:. 1\u00b7 \n\n-\u00b7 \n\nl \n>r \n~\u00b7\u00b7. '_t \n\u00b7-1\u00b7 \n\n!. r \n-'. ~ ( \n\n~ \n\n1 \n\ni \n\n~ r \n! \n\n\f123 \n\n\"The schemes adopted by BT constituted, in the \nCommission's view, an abuse because they (a) prevented \nBritish message-forwarding agencies from offering a new \nservice also to their customers in other Member States, \n(b) subjected the use of public telecommunications \nequipment to obligations which were neither technically \nnor commercially necessary and (c) placed the private \nagencies concerned at a c~mpetitive disadvantage \nvis-\u00e0-vis the national authorities and agencies in other \nMember States. like-the \n\ncame to the conclusion that, \n\n\". In this connection the Court \nCommission before it \nwhen it took action against private message-forwarding \nagencies, BT was acting not as an official body but as \nan undertaking. The management of public \ntelecommunications equipment and the placing of such \nequipment at the disposal of private users on payment of \na fee amounted by its very nature to a business \nactivity. The same reasoning must apply to the \nintroduction of the contested schemes, which merely laid \ndown charges and conditions for the services provided by \nBT to users of the British telecommunications \nnetwork. \". The Court also rejected the submission to the \neffect that the application of Article 86 to the case in \npoint infringed Article 222 because it encroached on \nMember States' rights \nmonopolies for particular economic adtivities. that, whilst BT had \nthe management of the telecommunications network and to \nmaking it available to users, it held no monopoly over \nthe provision of ancillary services such as the \nretransmission of messages on behalf of third \nparties. It noted \na statu~ory monopoly with regard to \n\nto create or preserve national \n\n\". The employment of new apparatus and methods which \naccelerated the transmission of messages constituted \ntechnical progress in conformity with the public \ninterest and could not be regarded as an abuse. \"Nor were the rneasures at issue covered by Article \n90 ( 2). 124. \". In the case in point, however, the conditions for \nthe application of the provision were not met. The \napplicant had f ailed to demonstrate that the \nCommission's censure of BT's schemes had put the \nperformance of the particular tasks entrusted to BT in \njeopardy from the economic point of view. Whilst the \nspeed of message transmission made possible by \ntechnological advances undoubtedly led to some decrease \nin revenue for BT, the presence of private agencies \nattracted to the British public network a certain volume \nof international messages and the revenue which werit \nwith it. Taken as a whole, the results were therefore \nin no way unfavourable to BT. \" \n\nThe British Telecom judgement clearly confirrned the \nCommission's view that the competition rules. of the Treaty \napply to Telecommunications Administrations. It made also clear that the Court would favour a narrow \ninterpretation of rnonopoly rights and \u00b7would strongly \ndisfavour \ntechnologies arise~ \n\nthe extension of a service monopoly, as new \n\nThe Court's judgement must be seen as a cornerstone for the \nfuture interpretation of the Treaty with regard to \ntelecommunications. 3. 2. The terminal eguipment cases \n\nThe Commission raised these cases with Germany, Belgium, \nItaly, the Netherlands and Denmark. illegality of extending the monopoly in the terminal \neguipment sector. They concern the \n\nThe cases raised in Germany are \n\nThe \"cordless telephone case\" which was reported in the 15th \nCompetition Report (1985) as follows: \n\n\". The Commission challengea the German Federal \nRepublic's plans to extend the Bundespost's monopoly to \ncordless telephones. l :. ;~\u00b7 \n\n~< \n\n\u20221' \n\n~. ! \n\n\f125 \n\n\"The German Government wished to give the Bundespost the \nexclus\u00eeve right to supply almost all equipment connected \nto the public telephone network. The only equipment \nexcluded was that to be connected to private automatic \nbranch exchanges (PABXs) supplied by independent f irms. The Commission considered that even such a partial \nmonopoly fell within the second subparagraph of Article \n37(1) EEC, since equipment imported from other Member \nStates could thereby not be f reely sold in Germany even \nif it met the country's technical standards. After the \nCommission's intervention, the German Government dropped \nits plans to extend the Bundespost's monopoly to \ncordless telephones. \" \n\n\u00b7 \n\nThe modem case was also reported in the 15th Competition \nReport which says : \n\n\". The Commission also challengea the extension of the \nBundespost's monopoly to modems (devices which allow \nequipment operating in digital mode to be connected via \na telephone network operating in analogue mode). Here \ntoo, the German Government took the view that such \nequipment was an integral part of the telephone network \nand therefore could be supplied only by the Bundespost. The only exceptions were modems used to connect private \ndigital equipment otherwise than via the public \ntelephone network. \"The Commission considered that such an extension of the \nBundespost's monopoly fell within the second paragraph \nof Article 37(1) and that the tying of the provision of \ntelephone network services to the purchase of modems was \nalso an abuse of the Bundespost's dominant position as \nnetwork operator contrary to Article 86. To terminate \nthe infringements of Articles 37 and 86, the Commission \ninformed the German Government that it was contemplating \nissuing a decision under Article 90 (3). \" \n\nIn June 1986, the Commission agreed with the Bundespost on \nadequate measures to amend the law which made the Bundespost \nthe sole distributor and owner of modems in Germany. 126 \n\nAs regards the situation in Belgiurn : \n\nThe Commission received a complaint about the exclusive \nrights given to the Belgian telecommunications authority to \nimport and supply low-speed modems and first telex terminals. After being informed that the rnonopoly was incompatible with \nthe EEC Treaty because it denied suppliers of equipment from \nother Member States direct access to the Belgian market, the \nBelgian Government told the Commission that it intended to \nreform the provisions within three years. Action against Italy : \n\nA similar complaint was made about a monopoly of importing \nand sale of modems and f irst telex terrninals in Italy. Here, modems and first telex terminals to b~. connected to the \npublic network may be supplied and installed only by the SIP \n(Societ\u00e0 italiana per l'esercizio Telefonico) and the DCST \n(Direzione Centrale Servizi Telegrafici). This arrangement \naffects imports of modems and telex terminals f rorn other \nMember States as the manuf acturers of such equipment in other \ncountries cannot approach Italian users directly. \u00b7After intervention by the Commission, the Italian Government \n\nannounced that it was going to reform the provisions. Action against the Netherlands and Denmark : \n\nThe Commission enquired about the existence of exclusive \nrights on importing and sale of terminal equipment in these \ntwo countries. The Dutch government announced that it was \ngoing to reform the provisions and negotiations are still \ngoing on with the Danish authorities. Global action \n\nThe Commission is currently e?{amining the possible use of the \nprovisions of Article 90 (3) to tackle this problem on a \nglobal basis. ~. 3. The IBM undertaking on SNA interfaces \n\nSystems Network Architecture (SNA) is the proprietary network \nstandard used by IBM for interconnecting computer systems and \nnetworks. \u2022l@\u00b7. r. ) \n\n~~\u00b7. :. tfi. \u00ef. \u00c2 l ,\u00b7: \n, , \n\n1. 127 \n\nOn 1 August 1984, the Commission accepted a unilateral \nundertaking from IBM to provide other manufacturers with the \ntechnical interface information needed to permit competitive \nproducts to be used with IBM's most powerful range of \ncomputers, the System/370. The Commission thereupon \nsuspended the proceedings under Article 86 EEC which it had \ninitiated against IBM in Decemb~r 1980. In the course of the proceedings, towards the end of 1983, \nsome major European computer manufacturers expressed concern \nthat IBM's interface disclosure practice was also having an \nadverse ef f ect in the European market for data communication \nproducts (the interconnection and interaction of \ndata-processing systems). Accordingly, the SNA issue was \nincluded in the informal discussions on interface disclosure. The IBM Undertaking was reproduced in full in EC Bulletin \n10-1984 (point 3. 4. 1. ). The commitment relating to SNA \nformats and protocols reads as follows: \n\n\"14. IBM recognizes the widespread interest in \ninterconnecting systems and networks of dif f erent \nmanufacturers. IBM favours such interconnections and has \npublished and will publish extensive information about it \nincluding formats and protocols which facilitate attachment \nby competitors of their systems or networks to IBM SNA \nnetworks. different from OSI, cornpetitors depend on IBM information to \nbe able to interconnect their products with IBM SNA products. IBM has an interest in issuing information on SNA formats and \nprotocols as soon as possible and it conf irrns that it will \ntake all reasonable steps to expedite the availability of the \nrelevant documentation. IBM understands- that to the extent that SNA is \n\n\"Accordingly: \n\n\"a) On accouncement of a Systern/370 product that implements \n\nenhancements' to SNA on System/370, IBM will identify the \nf unctions in such products that implement such \nenhancements. At announcement, IBM will, upon request \nfrom interested persans, identify use of existing \nformats and protocols. Where that product uses enhanced \nSNA formats and protocols, then subject to paragraph 7, \nIBM will as soon after announcement as the relevant SNA \nformats and protocols are reasonably stable and the \narchitecture has been formulated and described or at \ngeneral availability whichever is the earlier, publish \u00b7 \nthe SNA formats and protocols that implement such \nenhancements, together with appropriate product \ndocumentation, in order to enable attashment of other \nsystems (which may be comprised of multiple products) \nand networks to IBM SNA networks. 128 \n\n\"b) \n\nIBM will update the IBM SNA formats and protocols manual \nby the following: \n\n\"i) \n\nIBM will publish by the end of 1984 such an SNA \nformat and protocol manual that will describe LU \n6. 2. \"ii} IBM will make available within 60 days of the \neffective date of this Undertaking a services \ndescription manual for LU 6. 2 and an SNA format and \nprotocol manual for SNADS. Apart from the foregoing, IBM believes that all \nessential information regarding SNA has been made \navailable. \"c) \n\nIBM will identify, in future announcements of the first \nACF/NCP or successor products that implement \nenhancements to SNA not already identif ied pursuant to \nparagraph (a), the functions that implement the \nenhancements. IBM will release software externals for \nACF/NCP and successor products on the terms and within \nthe periods set forth for System/370 software products \nin Appendix A. \"d) \n\nIBM has actively participated in international standards \nefforts in support of open system interconnection (OS!) \nand will continue its active support of OS! as the \nstandard for interconnecting systems, products and \nnetworks of different manufactur\u00e8rs. \" \n\n3. 4. Other Cases \n\nThe Commission has treated a number of other cases of close \nrelevance to the telecomrnunications sector. Amongst these \nare: The International Air Couriers case (Articles 90 (1) \nand 86 EEC) relating to freedom of international air couriers \nactivities (EC Bulletin 1-1985, point 2. 1. 10 Germany, EC \nBulletin 12 - 1985, point 2. 1. 79 France); Telemarketing -v \nCie Luxembourgeoise de T\u00e9l\u00e9diffusion (Art. 177, 86 EEC) \n(ECJ \npreliminary ruling of 3rd October 1985 in case 311/84) \nrelating to the abusive extension of a dominant position to a \nneighbouring but separate market; SWIFT (Society for \n\u00b7worldwide Interbank Financial Telecommunications) and SITA \n(Airlines worldwide telecornmunications network) relating to \nthe pricing of international leased lines; \nCorning Glass Works' joint ventures with BICC PLC and Siemens \nAG for the manufacture of optical fibres in the UK and \nGermany. August 1986, p. 30; 16th Competition Report 1986. ) \n\n(Commission decision of 14 July 1986, OJ L 236, 22 \n\nexemption of \n\n\u2022\u2022 1 \n\nJi \n' \n\n,,;,\u00b7 \n\n\u2022 \n\nl \n\n\f129 \n\nIn the context of the International Air Couriers' case, the \nCommission took the opportunity presented by this case to \npoint out: \n\n\"that it regards the Member States' postal and \ntelecommunications authorities as commercial \nundertakings since they supply goods and services for \npayment and that any ext~nsion by one or more of these \nundertakings of their dominant positions may constitute \nan abuse under Article 86 of the EEC Treaty\" \n\nNational courts may apply the prohibitions contained in \nArticles 85 (1) and 86. For a number of years, and especially \nin the last two years, the Commission has tried to move the \ndomestic courts to enforce the\u00b7 EEC Competition rules more \noften. The Brussels court sumrnary injunction of 3lst July \n1986 based on the Tele-marketing ruling (see above), relating \nto the attempt by the Belgian Telecommunications \nAdministration to expand its monopoly to PABXs with 50 to 150 \nextensions, is afl example of this approach. J, \n\n1: \n1 \n\n1 \n\n1 \n1 \n\n1 \n\n\u2022 \n\n\" \n\n1 \n\n1 \n\n: \n\n\u00ee \n\n'~. 1 1 \n\n\f4. Transparency of public procurement procedures \n\n130 \n\nIn November 1984 the Council approved Council Recommendation \n84/550/EEC concerning the f irst phase of opening up access \nto public telecommunications contracts (16. 11. 84, OJ L298/51) \n\nAccording to the recomrnendation, Member States should \"ensure \nthat the telecommunications administrations provide \nopportunities for undertakings established in the other \nCommunity countries, following their usual procedures and on \na non-discriminatory basis, to tender for: \n\n\"1. all new telematic ter. minals and all conventional \n\nterminals for which there are common type approval \nspecifications; \n\n\"2. their contracts for switching and transmission apparatus \nand conventional terminal apparatus for which there are \nno comrnon type-approval specif ications for at least 10% \nin value of their annual orders\" \n\nThe implementation of the recornmendation was to be overseen \nby the Commission, in consultation with the Senior Official's \nGroup on Telecommunications. The detailed procedures for implementing this Recommendation \nwere agreed in 1986. The Recommendation, after agreement on certain details of \nirnplernentation had been established, has led to an increasing \nnurnber of calls for tender published in the Official Journal \naccording to the procedure agreed. In the context of the work plan for achieving completion of \nthe Interna! Market by 1992, according to the White Paper, \nfurther steps have been announced for introducing \nCommunity-wide competition inter alia in the sector of \ntelecomrnunications. The Work Programme of the Commission for \n1987 envisages that the necessary proposals will be \nintroduced this year. Amongst the measures announced, a major initiative (decided \nby the Commission on 18th March 1987) will be the extension \nof existing Community legislation on the opening of public \nprocurement, to the sectors currently still excluded from\u00b7 the \nsupply Directive 77/62/EEC, amongst them telecommunications. The Telecommunications Administrations dominate 75 to 90% of \nthe traditional telecommunications equipment market in the \nCommunity. t \nl. \u00b7~. 1\u00b7 ; ' \nt: ~ \nl !. '\u00b7. , \n\u2022:~ \n\n1\u00b7 \nf \n\u00b7t \n\n1. i:; \n' \n\n\u00b7~. J: \n\n1(: \n\n----------------~--------::----\n\n\fIll Ir~ \n\u00b7: \n1 l 1 \n' \nl (. r. : 11 \n: 1 \n;(. 1 \n! \n: \n\n131 \n\nAs set out in Chapter VI, the development of a common market \nin network and terminal equipment must therefore go hand in \nhand with a substantial increase in the transparency of the \nprocurement procedures of the Telecommunications \nAdministrations. A realistic. policy regarding the opening of procurement in \nthe telecommunications sector must take into account the \nsp~cifics of the sector. Thia relates closely to the \navailability and use of common specifications. As set out \nabove, Directive 86/361/EEC and Decision 87/95/EEC prornote \nthe application of standards and functional specif ications \nrelating to information technology and telecornrnunications in \npublic sector orders and technical regulations. \u00b7 \n\nTerminal equipment and network equipment may have to be dealt \nwith in different ways \n\nRegarding new terminal eguipment for which the current \nRecommendation already foresees open procurement procedures, \ntransparency will be established by a Directive replacing the \ncurrent Recomrnendation; \n\nRegarding network eguipment and conventional terminals, for \nwhich the current Recomrnendation foresees open tendering at \n10% of total tenders, objective technical constraints exist. Full opening could be reached progressively, for example, by \nincreasing the current rate of 10% to 40%, within the \nfrarnework of the Recornrnendation. A Directive could be \nenvisaged for 1989, after careful discussion and evaluation \nof mutual benefits and of the results obtained in this sector \nby Recornrnendation 84/550/EEC {part 2), in order gradually to \nachieve full opening of these markets by 1992. Progress towards effective opening of the procurement \nprocedures of the Public Telecomrnunications Operators is \nclosely related to progress on the Community's policy on \nstandardisation. As set out above, Directive 86/361/EEC and \nDecision 87/95/EEC promote the application of standards and \nfunctional specif ications relating to information technology \nand telecommunications in public sector orders and technical \nregulations. , \n\n132 \n\n5. Conclusions \n\nThe achievernents of the Cornmunity's telecommunications policy \nsince 1984 demonstrate the willingness and determination of. the Member States to create the frarnework conditions required \nfor the current restructuring of the Community's \ntelecomrnunications market and industry. The decisions taken to date have contributed substantially to \n\npromotion of European telecornmunication services and \nindustry ; and \n\npreparation for a more competitive Community-wide \nmarket. Regarding standardisation in information technologies and \ntelecommunications, \n\n\u00b7The Community's policy on standards is based on the \ninternational standardisation process. This concerns in \nparticular OSI and ISDN. Directive 86/361/EEC on the initial stage of rnutual \nrecognition of type approval for telecomrnunications \nterminal equipment and Decision 87/95/EEC on \nstandardisation in the field of information technology \nand telecommunications have created a comprehensive \nframework in this field, by establishing \n\n\"essential requirements\" for testing and type \napproval. binding comrnon network interface specifications, \nwith the future introduction of NETS (Normes \neurop\u00e9ennes des t\u00e9l\u00e9comrnunications),in conjunction \nwith the CEPT. a f irrn frarnework for the common interpretation of \ninternational standards in the inf orrnation \ntechnology field, with the introduction of ENs and \nENVs in conjunction with CEN/CENELEC. clear objectives and obligations for the use of \ncommon specif ications and standards in purchasing \norders. clear objectives and obligations for the rneans of \naccess to public telecommunications networks and \nservices, and to services of comparable importance. '\u00b7 \n) \n\n7 \n~ \n\n1 \n\n\u00b7~ i\u00b7: \n\\\u00b7\u00b7. (: \nh \nli \nk \n!:. J': \n\n~ \n\n~ \n~~ \nh \n~. \u00b7 -~\u00b7[: \n\n! \n\n~~ \ni\\ ,, \n\n:. j \n!J \n\n~~ \n\n' \n\\t(. \\ \n\n-'\u00b7 \n\n1 \n\ni \n\n1 \n~ \n\n\f133 \n\nIn certain cases, standardisation requirements must \nensure full inter-operability of systems. This may \ninclude specifications up to Layer 7 of the OSI model. This concerns in particular ensuring the interworking of \nterminals for those services recommended for \nCommunity-wide provision, such as according to \nRecommendation 86/659/EEC on the co-ordinated \nintroduction of the integrated services digital network \n(ISDN} in the Community. The co-operation agreements with CEPT and CEN/CENELEC \nhave set a solid organisational framework f6r the \nworking out of common specifications, on the'basis of \nthe international standardisation process. This \nframework is further reinforced by the current programme \nfor the promotion of conformity testing centres, and the \nstandards promotion organisations which have been f ormed \nat the industrial level. for the \n\nHowever, \n\nThe legal and organisational framework is thus \nmost part already firmly established. standards and specif ications development now needs \nhighly specialised competence and substantial manpower \non a permanent basis. Current availability of human \nresources on a permanent basis is insuff icient. In order \nto create a f irm physical basis for the acceleration of \nwork, the creation of a European Telecommunications \nStandards Institute, based on the current co-operation \nof the Telecommunications Administrations within CEPT \nand CEN-CENELEC should be envisaged. The institute \nshould also draw substantially on industrial and user \nexpertise. Given the importance of full mutual recognition of type \napproval for the competitive common market in terminal \nequipment, Directive 86/361/EEC on the initial stage of \nthe mutual recognition of type approval for \ntelecommunications terminal equipment should be rapidly \nsupplemented by a Directive establishing the legal basis \nfor full mutual type approval. Regarding the promotion of co-operative development of \nadvanced telecommunications in Europe, \n\nthe co-operative development of advanced \ntelecommunications network infrastructures and services \nis\u00b7 a condition for future Community-wide network \ninter-operability and network integrity. Future network \nintegrity is the basis on which an open competitive \nmarket must build. _______ J \n\n\f134 \n\ndepending on the tirne-horizon, advanced \ninfrastructure and service development needs \ncombination of research and development, often of a \n\"pre-normative\" character; agreement on standards; \nand availability of sufficient investment means. The actions undertaken have been carefully designed \nwith regard to these three aspects; \n\na \n\nthe RACE programme aims at the pooling of resources \nfor the introduction of Integrated Broadband \nCommunications (IBC) taking into account the \nevolving ISDN and national introduction strategies \nprogressing to Community-wide services by 1995. This makes the programme a centre-piece of \nlong-term network evolution in the Community. The Community's actions on ISDN, mobile \ncommunications and Trade Electronic Data \nInterchange Systems (TEDIS) emphasise standards and \nthe synchronisation. of service introduction in \norder to achieve a Community-wide market effect. The STAR programme aims at avoiding growing gaps in \nmodern infrastructure and services between the \nperipheral and the core regions of the Community -\nan essential goal for future economic cohesion. Regarding the application of Community competition policy to \nthe telecommunications sector to date:-\n\ntreated to date and the rulings by the Court \n\nThe cases \nof Justice conf irm that the Telecommunications \nAdministrations are fully subject to the Treaty Rules, \nnotably the competition rules, in particular to the \nextent that they engage in commercial activities. The Commission has made it clear that it regards the \nMember States' Telecomrnunications Administrations as \ncommercial undertakings since they supply goods and \nservices for payment. If such an undertaking were to extend its dominant \nposition at its own initiative, this might constitute an \nabuse of dominant position under Article 86. case of such an action resulting from prescriptions by a \nMernber State's governrnent, the latter could be sued \nunder Article 90 (1) read in conjunction with Article \n86. In the \n\nThe competition rules apply to both private and public \nundertakings. The Commission has shown in past cases \nthat it will scrutinise carefully the activities of \nexisting and new providers in both the \ntelecommunications and the data-processing field. }. ' \nr. l i. l j \n\n'j. \\. (. !. ~ !f. ~ \ni. t \n\n1 \n\nl~ \n\n,'I \n\n\u00b7~ \n\n1 \n\ni \n1 \n\n~) \n\n\f1ill'F \n\n:\u00b7 \n\n1 \n\nRegarding the establishment of more transparency in public \nprocurement procedures \n\nThe growing opening of the market to competition will \nmake further progress in the opening of the procurement \nprocedures of Telecommunications Administrations \nnecessary. The Commission has announced that it airns at \nachieving rapid opening of public procurement in the \ngeneral f ramework of the completion of the Interna! \nMarket by 1992. should be progressive and take full account of the \nspecif ic \u00b7characteristics of the sector. In telecornmunications, the approach \n\nThe results achieved by Recomrnendation 841550/EEC are \ncurrently under review by the Commission. Depending on \nthis review the Commission will decide on the options to \nbe adopted. ~. , \" , '. ' \n\n, 1 :' \u2022. i. ,. ;. li' \n\n1 1. i. \u00b7' \n\n( :. 1, 1 \n\n\f: -_. ,. 136 \n\nVIII TELECOMMUNICATIONS IN THE CONTEXT OF OTHER \n\nCOMMUNITY POLICIES \n\nSince 1984, telecommunications has developed into a \nfully-fledged line of Community policy in its own iight. However, in order properly to appreciate the implications of \npolicy choices in this field, telecommunications policy \nshould be considered in the context of other policy goals of \nthe Community closely related to it. Telecommunications policy is closely related to major new \npolicy goals of the. Community as reaffirmed in the European \nSingle Act : completing the Internal Market, achieving a \nEuropean Research and Technology Comrnunity and strengthening \nEJJropean cohesion. In this chapter, the relationships between telecommunications \npolicy and the \nconsidered: \n\nfollowing policy goals of the Community are \n\nthe completion of the Interna! Market \n\nResearch/Development/Technology policy \n\nthe establishment of a Community-wide information market \n\nthe establishment of a Community-wide audiovisual space \n\nThe special potential represented by telecommunications for \nthe less favoured regions of the Community has been discussed \nin Chapter VII (STAR Programme). 1. Telecommunications in the context of the Interna! \n\nMarket \n\nThe overall priority accorded by the Community to the \nachievement by 1992 of the interna! market as laid out in the \nCommission's June 1985 White Paper [Completing the Interna! \nMarket, COM(85)310 final, 29. 6. 85], and decisions taken since \nits publication, will greatly benefit the Community's \ntelecommunications services providers and equipment \nmanufacturers. On the other hand, a Community-wide development of the \ntelecommunications network infrastructure and of advanced \nservices will be indispensable for the attainment of the \ninternal market objective. The Commission's White Paper on Completing the Internal \nMarket was endorsed by the Heads of State at the Milan summit \nmeeting in June 1985. It provides for the achievement of the \ninternal market by 1992 and sets out an action programme to \nachieve that objective. fr \nil ,. , \n\n\u00b7'\\ \n\n-,~. , \n\n; 1 \n\n\f137 \n\nIn its section on \"A Common Market for Services'', \nPaper emphasises the importance of the telecomrnunications \nnetwork \n\ninfrastructure and of telecommunications services: \n\nthe White \n\n1 \n\n! \n! \n\n1 \n\n: 1 \n\ni i \n\n1. \". a market free of obstacles at Community level \nnecessitates the installation of appropriate \ntelecommunication networks with common standards. \"New cross-border services. \u00b7\u00b7can develop their full \npotential only when they serve a large, unobstructed market. This applies equally to audiovisual services, information and \ndata-processing services and ta computerised mar~eting and \ndistribution services. \" \n\nEfficient and advanced telecommunications services will be \nthe backbone of the development of intra-Community trade and \nservices, and a major component of trade in advanced \nequipment. The regulatory aims in telecornmunications must reinf orce \nthese overall policy goals. Re-regulation of the \ntelecommunications sector must strongly promote the \ndevelopment of Community-wide services which support the \ndevelopment of intra-Community trade in services and \neguipment and which enhance overall market efficiency. The \nWhite Paper draws specific attention to the importance of the \nrapid development on a European scale of certain value-added \nservices, such as electronic banking and videotex. (cf also \nChapter V. ) \n\n2. Telecommunications in the context of the Comrnunity's \nResearch/Development/Technology Policy \n\nThe overall context of the Comrnunity's R/D/T policy is set \nout in the Community's Framework Programme for Research and \nDevelopment for the the period 1987 to 1991. The Commission \nsubmitted detailed proposals in September 1986 (COM(86)430, \n30. 6. 1986. ) \n\nThe total budget proposed was 7. 7. billion ECU for the five \nyear period. Telecommunications now represents a crucial market for wide \nareas of high technology produc~ion and industry. accounts, for example, for 20% of the market for \nmicro-electronic products. A dynamic and expanding Europe \nwide telecommunications sector is thus essential ta \nsustaining Europe's general capability in the whole field of \nhigh technology. The convergence of telecommunications and \ncornputing technology has made the Telecommunications \nAdministrations the largest civil investors in high \ntechnology, with a combined annual investment volume of 16 \nbillion ECUs. (cf Chapter V. ) \n\nIt \n\n\fTelecommunications and information technology are now \ncharacterised jointly by large development costs for new \nproducts and services and, as a corollary, an especially high \nneed for large markets if they are to be viable. 138 \n\nThe proposed Framework Programme fully recogni~es this \ncentral importance of telecomrnunications and information \ntechnology for overall R/D/T developrnent. The proposa! \nforesees the allocation of 40% of total R&D expenditure to \nR&D in \nparticular:-\n\ntelecomrnunications and information technology. In \n\nImplernentation of the main phase of the RACE programme \n(see Chapter VII) \n\nSecond phase of the ESPRIT programme, the European \nStrategic Programme for Research. in Information \u00b7 \nTechnologies. In the current first phase, more than 200 \nprojects \u00b7in advanced information technology are being \ncarried out on a cost-shared basis, by \ntransnational \nconsortia of industrial enterprises, research \nlaboratories and universities. A number of projects are \nclosely related to \"pre-norrnative\" work, such as the \nROSE project (see report on the f irst phase of ESPRIT \nprogress and results, COM(86)687, 8. 12. 1986) ; \n\nApplication of telecommunications and information \ntechnology. This concerns inter alia \nDELTA (Development of European Learning by Technological \nAdvance), DRIVE (Dedicated Road and Intelligent Vehicles \nin\u00b7Europe) and EUROAIM (European Advanced Informatics in \nMedicine). the programmes \n\nThe Community also participates in a number of EUREKA \nprojects in the information technology and telecommunications \nfield (see EUREKA and the Community Technology Community \nCOM(86)664, 20. 11. 1986). In tandem with the development of European research and \ntechnology capabilities and intra-European industrial \nco-operation, the European market must be developed as a \nnecessary complernent, in order to rnake European R/D/T policy \nin both\u00b7 the Comrnunity and the wider European context fully \nsuccessful. \u00b7r \nl \nr\u00b7 \n\n-. -. j. - l \n~ ~ \n~-\nt\u00b7 \n~\u00ea \nL' \n\n~-\n\n\u2022ll \\, \n\n(\u2022 e: \n,. l. --'\"~ \n!j \ntt)\u00eell> \n\n,__. , \n\n-\n\nJ \n\n:~ \n\n~. 1 \n1 \n\n1. , \n\n\f139 \n\nThe potential of the Community's market for advanced \ntelecommunications and information technology products is \nvast - providing it is possible to achieve the necessary \nEuropean scale and new growth dynamism. At present, the \nCommunity\u00b7Member States do net consume telecommunications \nproducts to anyt~ing like the same extent as in the United \nStat\u00e8s and Japan. During the early 1980's telecommunications \nequipment purchases per capita were $32 in the Community, \ncompared to $80 in the United States and $46 in Japan. The very fact of this relatively low consumption points to \nthe unrealised potential of the European market which is the \nlargest of the three as measured by \npotential consumers. its 320 million \n\nThe current regulatory transformation must make a major \ncontribution towards changing this state of affairs. The \nEuropean industry and the European consumer need both a more \ncompetitive market, and to see a single Community-wide market \nreplace the current web of segmented national markets. 3. Telecommunications as a basis of a free market for \ninformation. One important economic, political and cultural advantage for \nEurope of advanced Europe-wide telecommunications derives \nfrom the possibilities created for the enhanced exchange and \nfree f low of information. This advantage can only be fully \nmaterialised with the development of a comrnon market for \ninformation. The free f low of information is closely related to the \nfundamental human rights which underlie the basic political \nand cultural consensus of the Community. Freedom of \nexpression is guaranteed by Articl~ 10 of the European \nConvention of Human Rights. This Convention is not only \nbinding upon its 21 member states but has also been \nrecognised by the Commission, the Council, the European \nParliament (OJC/103/77) and by the European Court of Justice \nas a basis for the development of civil rights within the \nEuropean Comrnuni ty {ECJ, \u00b7 13. 12. 1979, Case 44/79). In the Green Paper \"Television without Frontiers'', the \nCommission has emphasised the importance of Article 10 of the \nConvention of Human Rights for the development of a Common \nMarket of information and ideas (Green Paper on the \nestablishment of the Common Market for Broadcasting, \nespecially by Satellite and Cable, COM (84) 300, 14. 6. 1984, \ncf. below). ; \n\n'I \n\n1' 1 \n\n11! \n\n1_ \n\n' J ; \n\n1-. ; \n\n1' \n\n1 r 1. r \nl \n\u00b7i \nt \nl \n\n~~~~---'~-~~~ ~ \n\n\f140 \n\nAdequate telecommunications infrastructures and services are \na condition sine-qua-non for the free expression and free \nflow of information in the Community in the future. The \nprovision of telecommunications network infrastructure and \ntelecommunications services will provide the conduit within \nwhich information can flow. The provision of information \nservices and a free market for information content are \nindispensable requirements for putting telecommunications \nnetwork infrastructures and telecommunications services to \nbest use. The problems of the f ree f low of information closely relat~d \nto the development of trade and the operation and promotion \nof information services are addressed within the Community's \npolicy for a common information market. :~ \n\n\u00b7\u00b7~ \n\n\u00b7A, ,. ! \n\n\f3. 1. The Commission's Work Programme for the creation of a \n\nCommon information market \n\n141 \n\nIn March 1985 the Council approved the \n\nAt present the European information market is fragmented and \nunderdeveloped. realisation of a common information market as a priority goal \n(European Council, 29-30. 03. 85, Bull. EC. 3-1985, point \n3. 4. 3). a work prog~amme to develop the common information market \n(Communication from the Commission to the Council: Work \nProgramme for Creating a Common Information Market, COM (85) \n658 final, Brussels, 29. 11. 85). This programme ~as approved \nby the Council on 18. 03. 86. In November of the same year the Commission proposed \n\nThis programme reviews the changes in the European \ninformation market, and analyses in particular the impact of \nthe new information technologies; their economic \nconsequences; their regional consequences; their social \nconsequences; and their international implications. The \nprogramme emphasises the impact on the information market of \npublic policies regarding telecommunications and data \nprocessing and the need to optimise the use of the \ntelecommunications infrastructure. In the framework of this programme, the following priorities \nhave been selected for action in consultation with the Senior \nOfficial Advisory Group for the information market : \n\nopening up the internal market for information by \nremoving barriers to information flow, \n\nencouraging the private sector in the Community to \ndevelop new information products, \n\npromoting the use of Community advanced information \nservices. These priorities must be seen in the context of the Community \ninitiatives to stimulate the d\u00e9velopment of the European \ninformation market: \n\npromotion of Europe-wide information services, based on \nemerging new technical possibilities. The Community's \nprogrammes for specialised information services aim \nparticularly at this objective. Major steps have been \nthe establishment of the Euronet/Diane network; \npromotion of European electronic data bases in the \neconomic, scientific and technological fields; and \npromotion of new technologies. 142 \n\nreducti~n of language \u00b7barriers, by promotion of \nsuccessive programmes of automatic translation systems, \nin particular of the SYSTRAN and EUROTRA systems. promotion of standardisation in. the field of data base \naccess; \n\nelimination of legal and regulatory barriers, and the \nharmonisation of legislation in this field. Regarding the legal and regulatory\u00b7 f ramework required for a \nfree f low of information , the Work Programme notes that \napart from regulatory issues related to the conditions of \nprovision and use of telecommunications services, convergent \nsolutions should be found in a number of areas of legitimate \npublic interest profoundly affecting the future environment \nfor the free flow of information in the Community. These include: \n\ndata protection \ncopyright \nauthentication of transactions \nliability for information services \nelectronic f raud \nprotection of confidentiality of content of users' \ncommunications with information services. The Commission has established a \"Legal Observatory\" to study \nthe legal aspects of such issues in more detail. 3. 2. Legal issues affecting the free flow of information \n\n3. 2. 1. Data protection \n\n_Data protection is a shorthand formula for the protection of \nan individual's rights and fundamental freedoms, and in \nparticular his/her rights to privacy, with regard to \nautomatic processing of personal data relating to him/her (cf \nArticle 1 of the Convention for the Protection of Individuals \nwith regard to Automatic Processing of Personal Data, 17th \nDecember 1980). ~ \n&~. ~1. , \n\n! \ni \n! \n\n1. t \n\n\f143 \n\nThe merger of telecommunications and information processing \nhas created new problems of data protection regarding the \nfree flow of information. At this point in time, all Member \nStates have recognised the need for appropriate legal \ninstruments to selve these problems and have taken regulatory \nmeasures or are in the process of preparing such measures. (for a concise comparative assessment of the data protection \nlaws and the statutes concerning access to information in the \nMember States cf \"Legal issues affecting the specialised \ninformation market\", study commissioned by the Commission of \nthe European Community, 1986). The Council of Europe's Convention for the protection of \nindividuals with regard to the automatic pro\u00e8essing of \npersonal data which has\u00b7been signed by rnost Community Member \nStates, provides guidelines for the. protection of \nindividuals' rights to the privacy and security of personal \ndata relating to themselves. The free flow of information within the Comrnunity and the \norderly development of the Community information market \nrequire that harmonising Cornmunity legislation is introduced, \nbased on existing international conventions and declarations. Since 1973, the European Parliament has ernphasised on several \noccasions that the right to privacy should not only be \nprotected by national law, but that harmonising legislation \nshould be introduced at the Community level. (OJC 140/34, \n5. 6. 1979). The Work Programme for a common information market f oresees a \nCouncil decision on ratification of the Council of Europe \nConvention, or a Directive, based on Commission \nRecomrnendation 81/679/EEC and the Resolution of the European \nParliament of 9. 3. 1982. 3. 2. 2. Copyright \n\nElectronic information distribution creates new technical \npossibilities for breach of copyright. It is technically \neasy for users to appropriate information and integrate i~ \ninto their own information handling systems, \ndifficult to police this. Without adequate guarantees for \nthose with property rights with respect to information \nsubject to copyright and supplied to users through electronic \ninformation systems, \ninformation commercially will be severely blunted. the economic incentive to supply \n\nand very \n\n1 \n\u2022 \n1 ,:. 1. 1. ),' \n\n1. \u2022. ; \n\n/ \n1 \n\n1. \u00b7\u00b7: \n\n' \n\n:: \n\n; \n\n\f144 \n\nThis rnay require the operational elaboration of such legal \nand commercial distinctions as that between access to \ninformation and ownership of information, and technical \ndeveloprnent to implement these legal distinctions. In the Commissi0n's Copyright Green Paper to be published in \n1987 (Programme of the Commission for 1987, \u00b7Commission of the \nEuropean Communities, February 1987) interested parties will \nbe invited to make submissions to the Commission on the issue \nin order to allow an assessment of the scope of the problem \nand its possible solutions. 3. 2. 3. Authentication of transactions \n\nAuthentication of transactions is among the most difficult \nproblems involved in adapting the legal framework to new \ninformation technolo~ies. Contracts have been traditionally \nestablished on paper; electronic transactions are by nature \npaperless. Technical methods put forward to date to overcome \nthe problem have net yet satisfactorily been able fully to \nsubstitute for the handwritten signature. However, in \naddition to examining technical approaches, whereby adequate \nm~thods would be found t\u00f4 offer suff icient guara~tees against \nforgery, the Commission is examing the problem from the legal \nstandpoint and intends to issue recommendations with regard \nto admissible evidence in the courts concerning records of \ntransactions produced by electronic means. 3. 2. 4 \n\nLiability \n\nThere is a clear need for consumer protection against the \nrisks of incorrect operation of electronic information \nservices. However it is frequently not easy to establish \nwhere liability lies because of the cornplexity of the \nhandling process and the nurnber of entities involved \n(originator of information, data base administrator, host, \noperator of telecommunications networks etc. } who may be in \ndifferent Member States and subject to different laws. The \nproblem is being urgently tackled in order to\u00b7dispel the \ncurrent uncertainty and confusion and strengthen users' \nconfidence in the use of electronic information services. Two alternative ways of determining liability are proposed, \nwhere this is not established contractually: either to place \nliability on one of the entities involved in the provision of \nthe seryice, or to presume solidarity among all the parties \ninvolved in this provision. The latter alternative means \nthat the user would be f ree to address him/herself to the \nsubject of his/her choice and that the apportionment of the \nreal responsibilities could be effected eventually by the \nproviders themselves or by the court. The Commission intends \nto present recommendations on this issue in 1988. 1 \n\n1 \n~ \n1 \n\\ \n~ \n\n1 \n\n\u00b7. t t: \n\n\u00b7~ \n\n) \n\n\u00b7\\~ \n\u00b7\"i \n\u00ee \ni \n\n1 \n\n1 \n\u00b7lti \n1 \n' \n\n\f145 \n\n3. 2. 5 \n\nElectronic Fraud \n\nFraud using loopholes in electronic information services is \nnow reaching major proportions. To overcome this problem, \nclose co-operation between legal and technical experts is \nessential. instances which corne within the scope of civil law and those \nwhich are the abject of criminal law. It is also necessary to distinguish between those \n\nIn bath fields, there are considerable divergences in the \ndifferent Member States. The Commission is therefore \nexamining the situation, taking in account relevant work \nalready undertaken by the Council of Europe,~ the OECD and \nindividual countries, in order to establish what would be the \nsuitable Community actions in this area. 3. 2. 6 \n\nProtection of confidentiality of the content of \nusers' communications with information services \n\nA strong concern of users of electronic information services \nis possible monitoring of their use of such services. While \ncertain minimum data are essential for service suppliers for \nbilling and other purposes, users emphasise that the content \nof their communications (e. g. online searches to a database) \nmust be kept completely confidential. This issue could be settled via the contracts among the \nparties cortcerned and the Commission is therefore preparing \nrecommendations on this basis. 4. Telecommunications and the Community's policy for an \naudio-visual space in Europe \n\nBroadcasting and especially TV technologies are subject to \nrapid technological change, closely related to the change of \ntechnology in telecommunications. As set out in Chapter IV \nand Chapter VI, the developrnent in neighbouring fields, in \nparticular cable TV networks and satellite-based broadcasting \nis converging in the long-term, with the main stream \ntechnological development of telecommunications network \ninfrastructure. Since 1984, the Community has started to develop its \naudio-visual policy on a consistent basis. 111 \n\n( \n\n' \n\nI! \":\u00b7,\u00b7, \n\n' 1 \n\n' \n\n1 \n\n\"\u00b7 \n'!'. , \n11' \n\n' \n\n1 \n\n\u00b7'' \n/. l\u2022 \n\ni' \n\nt : \n\n! \n,, \n\n' \n\n1 \n\n:1\":1 \n\n1 \n\n' \n\n\" \u00b7: \n\n\f146 \n\nThe Policy has developed along three main lines: \n\nharmonisation of technical standards and technological \ndevelopments. This is closely related to the \ntelecommunications sector. creating the common market for broadcasting, especially \nby satellite and cable. promotion of the European audio-visual industry, in \nparticular by the launching of the preparatory phase of \nthe Media programme to encourage the development of the \naudio-visual industry. The Commission has emphasised in the White Book on the \ncompletion of the Internal Market the high priority which it \nattributes to the development of a Community-wide \naudio-visual space a~d the free flow of broadcasting. 4. 1. Creating the technical environment : Council Directive \n\n86/529/EEC \n\nAt the beginning of 1986, the Commission put forward a \nDirective concerning standards for direct satellite TV \nbroadcasting. The aim is to replace the current PAL and \nSECAM system when satellites for direct television \nb~oadcasting are brought into service in the near future and \nnew television sets are subsequently introduced by \nmanufacturers. The TV programmes \n\n(DBS - Direct Broadcasting Satellites) are due \n\nThe f irst satellites suitable for direct satellite TV \nbroadcasting \nto be operational from 1987/1988 onwards (TV Sat, TDF 1, \nTele- X, Olympus, see APPENDIX 2) \nbroadcast by these satellites will be received by individual \nand community (MATV - Master Antenna Television System) \nantennae and the corresponding satellites could broadcast \nsome ten new channels from 1987/1988 onwards to the whole of \nEurope. Local cable networks are rapidly developing in \nvarious European countries (see Chapters IV and VI). They \ncan distribute a wide range of products including cable \noriginated programmes or programmes transmitted by \nsatellites. Major innovations are also expected in the \nmedium term in the field of TV reception, with the prospect \nof the development of high-definition television yielding a \npicture quality which was previously unattainable. r. ' \u00b7<. !\u00b7. ~ \n\n\f1 \n\n1 \n\n! \n\n' i \n\n1' \n\n147 \n\nThe implementation of common technical specif ications \nsimplifies the broadcasting of television programmes in all \ncountries of the Community and opens the way to truly \npan-European multilingual television programmes. In November 1986 the Council issued a Directive on the \nadoption of common technical specif ication of standards for \ndirect satellite television broadcasting (Council Directive \non the adoption of common technical specif ication of \nstandards for direct satellite~television broadcasting \n(86/529/EEC), O. J. L311/28, 06. 11. 86) \n\nThe Directive is based on the \"MAC/packet family. of \nstandards\". Standards of the MAC/packet family, Rroduced by \nthe European Broadcasting Union and the industry, have the \ncapacity to evolve in line with market developments, thus \nallowing gradual progress towards high-definition (HDTV) \ntelevision in such a way that each stage is compatible with \nthe preceding one. The Commission played an important role in orchestrating a \nCommuriity consensus against the Japanese proposa! for an \ninitial HDTV standard which would clearly have been \nunfavourably to the European environment and European \nindustry. This caused the ITU's CCIR meeting of June 1986 in \nDubrovnik to postpone the decision on HDTV standards for two \nyears. This time will be used to work out an alternative \nbased on the evolutionary concept set out above. A research \nproject led by four major European companies is currently at \nwork defining such a syst~m; in the longer term, the \nCommunity RACE programme will continue to research HDTV. 4. 2. The establishment of a European space for broadcasting, \n\nespecially television \n\nThe establishment of a common market for broadcasting is a \ndeclared priority goal. The economic objectives of this \npolicy form part of a wider set of goal of which cultural \nobjectives are an important component. Comrnission's policy on cross-frontier broadcasting links up \nwith the other initiatives being pursued in the context of \nComrnunity action in the cultural sphere. Whereas the spread \nof commercial broadcasting may lead to shifts in emphasis, \nthese f undamental assumptions are unlikely to change \nsubstantially. In this way, the \n\n\f148 \n\nThe Commission transmitted to Council in 1984 a Green Paper \non the establishment of the common market for broadcasting \nservices [\"Television without Frontiers\", COM (84) 300, \n14. 6. 1984] \n\nThe Paper clearly states the right of free provision of \nservices across f rontiers according to Article 59 of the \nTreaty. The Paper then treats in detail those aspects of \npublic interest which could be legitimately maintained by \nMember States in the broadcasting field, and which therefore \nneed harmonisation at the Community level in order to allow a \nComrnunity-wide market to operate. These aspects concern in particular: rules governing \nbroadcast advertising; protection of minors and right of \nreply; and copyright issues. In April 1986, the Commission submitted, on the basis of a \nbroad consultation on the Green Paper \"Television without \nFrontiers\", the proposal for a Directive, which is currently \nbefore Council [Proposal for a Council Directive on the \ncc-ordination of certain provisions laid down by law, \nregulation or administrative action in Member States \nconcerning the pursuit of broadcasting activities, COM (86) \n146, 28. 4. 1986]. The Directive aims to permit broadcasts \nwhich comply with its requirements to be received and \nretransmitted freely in all Member States. The main reguirements concern Community programme promotion, \nadvertising, youth protection and copyright. While the \nDirective would allow Member States to apply more detailed \nand stricter rules to broadcasting organisations establishect \non their territory, they would not be allowed to invoke these \nstricter national rules to prevent the reception and \nredistribution of television broadcast from other Member \nStates, once these comply with the provision of the \nDirective. 5. Conclusions \n\nTelecommunications policy is closely inter-related with a \nnumber of other key Comrnunity policy goals. While the \ndevelopment of a common dynamic market for telecommunications \nservices and equipment must fully contribute to the the \nachievement of these other policy goals, the \ntelecommunications sector itself will benefit greatly from \nprogress on these other policies. This concerns in particular: the completion of the Internal \nMarket; the Community's Research, Development and Technology \npolicy; the establishment of a Community-wide information \nmarket; and the establishment of a Community-wide \nau. dio-visual space. i 1 \n\n\\ \n~ \n\n1 \n\n\f149 \n\nRegarding the achievement of a Community-wide Internal \nMarket by 1992, the development of Community-wide \nsophisticated telecommunication services in an open \ncompetitive environment is indispensable for \nintra-Community trade in services and for reducing trade \nbarriers and transaction costs. This will concern in \nparticular the Community-wide development of specialised \nvalue-added services. Regarding the Community's Research & Development and \nTechnology Policy, telecommunications now represents a \ncrucial market for wide areas of high technology and \nindustry. A growth oriented policy for \ntelecommunications - exploiting fully the convergence of \ninformation technology and telecommunications and \nlifting existing restrictions as far as possible - will \nbe an essential complement to the Community's research \nand technology effort. Regarding the establishment of a Community-wide \ninformation market, promoting the free flow of \ninformation is closely linked to the fundamental \nCornmunity objective of preserving the Community's \neconomic, social, cultural and political identity. Telecommunications network \nprovide the conduit, via which information content is \ncarried. Fundamental issues regarding the free flow of \ninformation, including data protection and protection \nof privacy, copyright, authentication of transactions \nand liability for information services, will need urgent \nattention in the general ~nformation context. infrastructure and services \n\nRegarding the establishment of a Community-wide \naudio-visual space, the Commission has made clear in the \npast that it will insist on the citizen's right to \nobtain and irnpart information wherever in the Cornrnunity \nhe/she rnay be located. Given the long term convergence \nof the technological base of both telecommunications and \nthe audio-visual sector, especially in the satellite and \ncable TV field, the positions taken in both fields must \nevolve towards an open environment regarding the flow of \ninformation. 150 \n\nIX \n\nTHE EXTERNAL DIMENSION OF A COMMUNITY TELECOMMUNICATIONS \nPOLICY : CHALLENGE AND OPPORTUNITY \n\nThe creation of a c. omrnon market for telecommunications \nservices and equipment within the Comrnunity will help \novercome its structural problems and contribute to the \ncreation of continent-scale advantages which have, so far, \neluded Europe in this sector. It would, however, be a \nmistake to undertake this task in a manner which would \ninsulate the Community market from the outside world. The Community is and should remain a major exporter of \ntelecommunications equipment. There is no reason why it \nshould net also attain a significant position as an exporter \nof telecommunications services. The creation of a common \nmarket will, as in other sectors, greatly contribute towards \nthe improvement of the Comrnunity's cornpetitive position in \ntelecornrnunications. Market access for telecornrnunications \nequipment remains subject to significant tariff and \nnon-tariff barriers in many if not most developed countries; \ndeveloping countries also constitute significant markets. For these reasons, the Community should actively pursue the \ngoal of further market opening abroad bilaterally and during \nthe Uruguay Round. In 1983, the sum of experts from OECD countries of \ntelecommunications equiprnent ( including in. tra-OECD trade) \namounted to only 18. 5% of OECD investrnent in \ntelecommunications equipment. The srnall scale of intra-OECD \ntrade in telecommunications equiprnent can be seen f rom the \nfact that only 33. 7% of experts of telecornmunications \nequipment from OECD countries had other OECD countries as \ntheir destinations, whereas OECD countries jointly constitute \nthe overwhelming bulk of the world telecornrnunications market. There is little if any doubt that some of the Community's \nprincipal trading partners will also wish to obtain a further \nopening of the Comrnunity market for telecomrnunications \nequipment and services. Far frorn only constituting a risk \nfor Comrnunity suppliers, this \n\ni :9i \n' \n\n1 \n\nl \n~~4) \n1 \n\n\fshould be viewed as a challenge and as an opportunity, to be \nconsidered in parallel with the Community's efforts to open \nextra-EC markets. This would appear the more necessary as \neconomies of scale are liable to lead to a further \nconcentration of important market segments for both \ntelecommunications equipment and certain enhanced services. l. Telecommunications in the Uruguay Round \n\n151 \n\nThe negotiations, which \u00b7include \nf ormally launched at Punta del Este in Uruguay on \n20 September 1986. They are likely to lasi for at least four \nyears. trade in services, were \n\n1. 1. Scope \n\n1. 1. 1. Services \n\nThe general negotiating objectives are as follows \n\n\"Negotiations in this area shall aim to establish a \nrnultilateral frarnework of principles and rules for trade in \nservices, including elaboration of possible disciplines for \nindividual sectors, with a view to expansion of such trade \nunder conditions of transparency and progressive \nliberalisation and as a means of promoting economic growth of \nall trading partners and the development of developing \ncountries. Such framework shall respect the policy \nobjectives of national laws and regulations applying to \nservices and shall take into account the work of relevant \ninternational organizations. \" (Emphasis added). The current assumption is that all services which can be \ntraded will be covered by the new agreement. An agreement on \nwhat constitutes tradeability will therefore be an essential \nelement in the negotiations. With this in rnind, it should be noted that the different \ntypes of telecomrnunications services differ with respect to \ntheir tradeability : \n\n\u2022'. ; \n\n'1 \n: 1 \n\n,J1 \nJ;~ \n\u00b71::1 \n\n'1'-' \n:1:: \n1' n \n\n\f152 \n\nThe provision of basic infrastructure in general \nrequires the physical presence of the provider in the \ngeographical area in question. telecommunications infrastructure has traditionally been \nprovided jointly by the providers of the national \nfacilities which they link,i. e. , the Telecommunications \nAdministrations (including RPOAs, Recognised Private \nOperating Agencies). This joint provision, based on \nbilateral interconnection agreements, follows ITU \nguidelines, e. g. with respect to accounting rates (see \nAPPENDIX IV); \n\nInternational \n\nThe provision of certain \"value-added\" \ntelecommunications services is taking place \ninternationally across\u00b7borders, being produced in one \ncountry and consumed in another. These services are \noften regulated differently f rom basic infrastructural \ntelecommunications services ; \n\nSatellite communications are a special case. At present \ninternational organisations, in particular INTELSAT (see \nAPPENDIX II), provide international satellite \ncommunications services, which they produce jointly with \nthe Telecommunications Administrations. 1. 1. 2. Telecommunications equipment \n\nIssues of trade in telecomrnunications eguipment will, in \nparticular, be dealt with in the context of the GATT \nnegotiations on government procurement, technical barriers to \ntrade, and tariffs. 1. 2. Issues \n\n1. 2. l. Services \n\nThe discussions on the negotiating approach in the future \nRound are still at an early stage. However, within OECD a \nconceptual framework and principles for discussing trade in \nservices have emerged as an important input to the Uruguay \nRound. telecommunications, will be considered against \u00b7a framework \nderived, at least in part, from these concepts. It is likely that all sectors, including \n\n1 g \n\n-\u00b7 1. J \n\nl. -4 \n\n1 \n\n\f' ' \n\n'\u20221=-. ;-J \n' '. ~ \n'. '//:. 1. \u00b7r \ni. 1 ', \n\n1_ \n\n1 \n\\. '1 \n1:\u00b7_,'' \n; \n'_. \u2022 i\u00b71! , ' ' \n1 \nl\u00b7'tJ1I \n;\\. )! 1 \n,JI; 1-\n;-1, \" ! \n:. \u00b7:'1 \n\nJ \n\n,1 \n\n'1'\u20221, \n\ni' \n\n1' \n\n\u00b7, \nl-\ni. , \n\n,1 \n\nMajor concepts identif ied are the following \n\n153 \n\nMarket access \n\nTransparency \n\nNational treatment \n\nNon-discrimination \n\nService monopolies \n\nPositions of economic dominance on the international \nlevel \n\nTrade distorting measures or practices \n\nExceptions and saf eguards \n\n\"Appropriate\" or \"acceptable\" regulation \n\nPositions on the other points will be largely determined by \nth~ position on the last point \n\"acceptable\" regulation. \"appropriate\" or \n\n1. 2. 2. Telecommunications eguipment \n\nAs to negotiations on trade in telecornmunications equipment \nduring the UFuguay Round, the main issues appear as follows: \n\nthe question of the inclusion of telecommunications \nequipment in the Governrnent Procurernent Code ; \n\ncustoms duties (especially relevant where certain \ncountries maintain high tariffs) ; \n\nissues related to the Code on Technical Barriers to \nTrade. --------~--. -\u00b7-'\"'-:. ;_\u00b7\u00b7\u00e8:;::__. -\u00b7-\n\n\f154 \n\n1. 3. Approach \n\nIn the preparation for the GATT negotiations, a clear \ndistinction should be made between trade in services and \ntrade in equipment, not that one is necessarily more \nimportant than the other, but because of the substantial \ndifference in the nature of the trade involved and, of \ncourse, in terms of the signif icant differences in existing \ninternational obligations. The general approach of the Community should be based on the \nf ollowing overall considerations : \n\n1) \n\n2) \n\n3) \n\nAn evaluation of the Community's interests with regard \nto market opening by non-Community countries (services \nand equiprnent). On services, taking into account the progress towards \nthe establishment of a comrnon European approach towards \nregulatory issues, prepare the Community's approach \ntowards the definition of \"appropriate. regulation\". In the light of the above, and taking into account the \nprogress. made towards the realisation of the internal \nmarket, \n\na) \n\nb) \n\nexamine the implications of further opening of the. community market for telecornmunications equipment \nand se. rv ices. i \n\ncompare this with the prospects of market opening \nin non-Community countries. l \n1. l \n\n~ \n\n1 \n\n\f2. Reguests by outside providers for interconnection and service \nprovision \n\n155 \n\nInterconnection requests by non-Community operators have \ntraditionally been handled bilaterally between the external \nservice supplier and the Telecommunications Administration in \nthe\u00b7community to whose network it is seeking access. Traditional services such as international telephone and \ntelex are paid for on a bilateral basis : a customer pays his \nor her national administration which then re-imburses the \noverseas administrations on the basis of a sharing formula\u00b7 \n(based on accounting rates, according to relevan~ CCIT~ \nrecommendations, see APPENDIX 4). The flow of payment is between service providers, rather than \nbetween customer and provider. network operator holds the exclusive means for the \n\"distribution\" of incoming traffic and the \"importing\" of \ntelecommunications services. In addition, the national \n\nSo long as network access is regulated in the same way by \ndifferent Member States and/or their licensed carriers there \nshould be no distortion of trade flows or of competition. However, differences arising from the way European \nTelecommunications Administrations compete with each other to \ncapture foreign business could distort trade and competition \nwithin \n\nthe Comm\u00b5nity. 2. 1. Growing international competition \n\nThe situation has become substantially more complex with the \ngrowing competition on North Atlantic traff ic routes and the \nweakening of the North Atlantic Consultative Process {NACP) \nwhich had been established between the CEPT and the US \nFederal Communications Commission {FCC). Growing international competition has emerged basically as a \nconsequence of the extension of US - and now also Japanese -\nderegulation to the international arena {see APPENDIX 1). l \u00b7I \n\n156 \n\nFor many years, AT&T was the sole US provider of \ninternational telephone services, with international data \nservices provided by ITT World Communications, RCA Global \nCommunications and Western Union International. In the course \nof the US deregulatory process, other US service providers, \nsuch as MCI, US Sprint and Graphnet have expanded into the \ninternational voice or data markets. In 1985 and 1986, the FCC granted permission for the \nestablishment of eight international satellite services, \nseparate from INTELSAT, subject to certain conditions. Currently, the United States is in the process of consulting \nwith INTELSAT on one proposed system (PanAmSat), as foreseen \naccording to Article XIV of the INTELSAT Convention. Article \nXIV of the convention calls for there to be \"no signif icant \neconomic harm'' to INTELSAT (see APPENDIX 2). There has been \nno consultation initiated yet for any other system. At the same time, the FCC granted applications for licences \nto two US companies to land and operate private cable \nfacilities in which bulk transmission capacity is to be sold \non a non-common carrier basis. The situation has become still more cornplex owing to the \nFCC's decision in 1986, to extend Recognised Private \nOperating Agency (RPOA) status to enhanced service providers \nthrough a simple and voluntary application procedure designed \nto assist these providers in obtaining operating agreements \nwith foreign administrations and to purchase Indefeasible \nRights of Users (IRUs) in overseas cables. 2. 2. Issues \n\nInternational services require that n~tworks \u00b7in individual \ncountries be interconnected in an orderly manner. A cornrnon position by the Community's Member States will have \nto be worked out on a number of issues : \n\ninterconnection of additional common carriers from third \ncountries with RPOA status. 157 \n\nA case in point is the policy followed by Member States \nwith regard to operators such as the US common carriers \nMCI and GTE Sprint where differing positions are \ncurrently taken by Community Telecommunications \nAdministrations. defining a joint position, in the framework of INTELSAT, \nwith regard to new satellite systems and applications \nfor allowing operation of such systems according to \nArticle XIV of the INTELSAT Convention (see APPENDIX 2). future treatment of enhanced service providers frorn \nthird countries which may obtain RPOA status according \nto the new FCC procedure. future treatment of enhanced service providers from \nthird countries without RPOA status. drawing up a joint position on interconnection \nconditions. This concerns in particular \n\ntechnical interface standards and access facilities \n\naccounting rates and interpretat~on of the relevant ITU \nrecornrnendations ; \n\nlimitations or restrictions irnposed. 2. 3. Approach \n\nInterconnection between outside service providers and \nComrnunity networks is an area where a joint Community \nposition is urgently needed if distortion of trade and \ncornpetition within the Cornmunity \n\nis to be avoided. The working out of cornmon positions will be also needed \nthe GATT Round. for \n\nA first step towards building a Community position on these \nissues should be collection of more detailed information on \ninterconnection between Community networks and outside \nproviders. \u00ef \n\n,fi \n\n1, \n'1. i \n\n1 \n\ni' \n\n\u00b7'\u00b7 \n'. I \n\n1, \n1' \n\n1,: \n;,\u00b7: \n\n1: \n\n\f158 \n\n3. Relations with the Community's major trading partners \nUnited States, Japan and Third World \n\nEFTA, \n\nAn assessment of the Community's external trading position \nin telecommunications equipment, including switching and \ntransmission as well as terminal equipment, gives the \nfollowing position: \n\n1. The Community continues to have an overall positive \nbalance in telecommunications equipment trade. 2. 3. 4. The Community's external telecommunications equipment \ntrade surplus fell in 1985 for the third year running to \n1247 million ECU from 1533 million ECU in 1984 ; \n\nThe Community's deficit with the United States widened \nby 25% in 1985 to 657 million ECU from 525 million ECU \nin 1984. The EC deficit with Japan increased by 61% to 582 \nmillion ECU in 1985 from 360 million ECU the previous \nyear. The deficit of all ten Member States increased. Details are shown in Fig. 12. The position in the telecommunications-related services \nmarket is more diff icult to estimate. Basic international telecommunications services are dominated \nby joint provision between Community and external \ntelecomrnunications operators, with revenues shared according \nto negotiated accounting rates. The high revenue \ninternational value-added services market \nis dominated \ninternationally by US providers, with a strong European \npresence in certain market niches. Major developrnent trends for international value-added \nservices focus on the \nInterchange (EDI) and on videotex-based services. financial sector, on Electronic Data \n\nl \nl\u00b7, \n\n1, \n\n\fCOMMUNITY TRADE BALANCE IN TELECOMMUNICATIONS \nEQUIPMENT 1984/1985 \n\nFig. 12 \n\nr-. l. () \nCO \n0-\n\n~ \n\n1 \n\n~ \nCO \n0-\n\n~ \n\n'-\" \n \n\n1 \n\nw \n\nu w \n~ e::. x w \n\n0 \n0 \n0 \nN \n\n0 \n0 \nl. () \n~ \n\n0 \n0 \n0 \n\n~ \n\n0 \n\n0 \n0 \nl. () \n1 \n\n:. 1 \n,. , \n\"\u2022 \n\nwU::::> ~-. 1. J-QZcn \n\n\f159 \n\nWith some prominent exceptions (e. g. , French Teletel, Reuters \nf inancial service) the European market for value-added \nservices is still in its infancy. 3. 1. Co-operation with the European Free Trade Association \n\nThe Community has traditionally had strong ties in \ntelecommunications with the member states of EFTA, both at \nthe industrial level and at the Administration level. The f ramework of co-operation is two-fold \n\nWithin CEPT close relations have developed between the \nComrnunity's Telecommu. nications Administrations and the \nEFTA Administrations. The EC and EFTA together \nrepresent 19 out of the 26 CEPT member countries. the signing of the Memorandum of \n\nRelations with the Community have \nf ollowing \nUnderstanding between the CEPT and the Community in 1984 \nconcerning standards and type approval \ntelecomrnunications equipment and following the general \nguidelines agreed with the Joint European Standards \nInstitution CEN-CENELEC, of which the EFTA countries are \nmembers (see Chapter VII). intensified \n\nfor \n\nSince the Luxembourg Declaration of April 1984 on \nco-operation between the European Community and. the EFTA \ncountries and the follow-up Declaration of \nthe Council \nin Autumn 1986, the Community has further intensified \nits co-operation with EFTA, with th\u00e8 intention of \nadvancing in all areas relevant to the creation of a \nwider European economic space, such as state aids, \npublic contracts, intellectual and industrial property \nrights and services (to mention but a few). \\,. 1 \n1 \n\nJ \n1 ,. 1 \n) \n\n!. -~ J \n\n\f160 \n\nWithin the framework of CEPT, those EFTA countries which are \nsignatories of the agreement on a formal adoption procedure \nand an undertaking to implement certain CEPT recommendations \nas NETS (see Chapter VII and APPENDIX 3) will give NETS a \nsimilar role as will Member States under Council Directive \n86/361/EEC on the initial stage of the mutual recognition of \ntype approval for telecommunications terminal equipment. This will raise the question of extending the mechanism of \nmutual recognition of test results for type approval foreseen \nin this Directive to those countries. Such extension to non-Community c. ountries of. the advantages \nof the Directive presupposes a clear understahding at the \ntechnical level of the method of application of standards and \ntest methods by all parties concerned, as well as assurances \nconcerning full reciprocity. Work is now going on in order \nto build up the necessary contacts and confidence at a \ntechnical level in order to make further progress on this \nissue possible. Following the Luxembourg Declaration, the Commission h~s \nconcluded with a number of EFTA countries framework \nagreements on co-ordination in Research and Development. At \nthe same time, EFTA Administrations have, via the CEPT \nmechanism, participated intensively in the work of the \ndefinition phase of the RACE programme (see Chapter VII). Co-operation on technology has substantially strengthened at \nthe industrial level through the creation of ECTEL (see \nChapter VII). Further, a number of EUREKA projects are being \ncarried out jointly. Recognising this trend towards stronger co-operation at the \nR/D/T level, the Commission has proposed in COM (86) 547 (see \nChapter VII) to open participation in the RACE main programme. to public or\u00b7private organisations established in COST \n(European co-operation in the field of scientif ic and \ntechnological research) countries when a framework agreement \non R & D co-operation has been signed w~th the corresponding \ncountry. For this, implementation agreements will be \nconcluded. The COST comprises all EC and EFTA member \ncountries plus Yugoslavia and Turkey. : 1 \n\ni ' \n\u2022I \n\nI' \n1,I, \n\n1: \n\n,: \n\n,1,1 \n1 \u00b7. ,. 1 1 \n\n'1 \n\n'1 \n\n1 \n\n\f161 \n\nThe general objective of the Community in telecommunications \nwith. regard toits EFTA neighbours is the creation of a wider \nEuropean economic space and the maintenance and development \nof the coherence developed in the CEPT framework. Specif ic progress has already been made \ncontext concerning : \n\nin the EC/EFTA \n\nco-operation on standards and mutual recognition of type \napproval; and \n\nco-operation on R&D {RACE programme). In the medium term, discussions will notably be needed with \nEFTA countries on. regulatory issues such as those outlined in \nChapter X, as soon as a consensus in the Community has been \nachieved. 3. 2. Dialogue with the United States \n\n(for details see APPENDIX \n\nUS deregulation of the telecornmunications sector and the \naftermath of the AT&T divestiture \n1) have contributed to a highly complex policy environment \nwhich continues to evolve. The basic reference text is the \n\"Modified Final Judgement\" of 1982 which specified the \nconditions of divestiture of AT&T; this has, however, been \nevolving as a result of a series of public enquiries -\nespecially Computer III. Few, if any, observers of the US \nscene would regard the Computer III enquiry as anything but \none further stage in the developing regulatory environment. There is a variety of Federal agencies involved in \ntelecommunications - Federal Communications Commission, \nDepartments of Justice, Commerce, State, USTR, etc. - as well \nas state and local authorities. One consequence is, however, already very clear: the United \nStates has become the major force for change in the world \ntelecomrnunications market and in international trading \nrelations in the sector. The Comrnunity is directly affected \nin several ways: \n\nEconomie and industrial forces set free by US \nderegulation are\u00b7turning \nEurope is a major target; \n\nto international markets. ;. !' \n\nI~ \n\n1. ' \\'l ,, \n\n1 \n\nI' \n\n1 \n\n~. 1 \n\n1 \n\n1 \n~ v \n'r \n\n~1 \n\n1 \n\u00b7~. 1 \n~ 1 \n\n\f162 \n\nThe rising number of requests for interconnection from \noutside suppliers and the increasing activity of AT&T \nand the BOCs in the Community are a case in point. The \nrapidly changing US regulatory scene - Computer III \nInquiry, recent proposals by the Department of Justice \nfor lifting the main \nJudgement on AT&T and the BOCs, Open Network \nArchitecture (see APPENDIX 1) - will increase the \ninternational activity of US companies. restrictions of the Modified Final \n\nWhile the US continues to register a substantial trade \nsurplus in telecommunications with th~~ommunity (657 \nmillion ECUs in 1985 \nregistered heavy deficits in its trade with the Pacifie \ncountries, in particular Japan, leading to a global US \ndef ici t in telecommunications of $US 1. 3 billion. in 1985 \nand of nearly $US 2 billion in 1986. see Fig. 12 ),\"the US has \n\nAgainst the general background of the US trade def icit, \nthere is heavy pressure on the United States \nAdministration to respond to perceived obstacles in \ntelecommunications trade with foreign countries. Draft \nlegislation is currently under consideration in the US \nCongress which, inter alia, would result in closing the \nUS market to these countries, regardless of the actual \ntrading situation. Many in the US f ail to distinguish between the dif ferent \nef f ects of US deregulation on the openness of the US \nmarket. For example, the situation as regards terminal \nequipment, where the effects of deregulation have been \nperhaps the most signif icant, differs greatly from that \napplying to network switching and transmission \nequipment. While the introduction of simplif ied registration \nprocedures for terminal equipment since 1976 has led to \na substantial rise of imports from Pacifie countries, it \nhas not led to substantial opportunities for EC \n\u00e8ompanies. i \n\n/: \n\n':::1 \n\n1 \n\n' \n\n:'. 1 \n\n;\u00b7 \n'I\" \n\n: lt \n\n: \n\n1 \n\n: :i 1 \n\n1 \n\n----- ----- ---~\u00b7~-========c7'-o=~\u00b7-:;;:'. -\"\"'. '\"'c\u2022':;;;~\"\"'-;o;=,~~=E::=:~'\u00b7-J\u00ee~_i11_ \n\nii'; \n\n\f163 \n\nAccording to the FCC, in 1984, 80% of registration \napplications submitted were for equipment manufactured \nin the Pacifie Basin and Asia. Canada plus EC countries \nwere below 5%. However, in one area where Community. industry does have strength (network and transmission \nequipment), substantial barriers to entry continue to \nexist \nCommission of the European Communities, \n\n(see Report by the EC Fact Finding Mission, \n\nJuly 1986). One consequence has been the increase in the US trade \nsurplus with the Community in telecommunications \nequipment. With regard to service operations, the FCC \ncontinues to maintain a number of restrictions on \nforeign-owned service operators. The US Federal Communications Commission, responsible \nfor regulation of both interstate and (in some instances \nin conjunction with the Department of State) \ninternational communications, is showing a growing \ntendency to measure foreign situations against its own \nunderstanding of \"appropriate\" regulation, classifying \nany deviation as \"trade barriers\". This tendency is \nshown most clearly by the \nand Proposed Rule-making on Regulatory Policies and \nInternational Telecommunications (January 1987). recent FCC Notice of Inquiry \n\nThe FCC proposes an \"International Model\". At the time \nof publication it was not known whether the FCC proposal \nwould be adopted. Serious objections have been raised \nby the Community and other trading partners as well as \nthe US Administration itself. However the FCC proposa!, \nif implemented, would effectively establish the US \nregulatory situation as a benchmark. for determining the \ndegree of \"openness\" of foreign markets, in accordance \nwith a unilaterally defined concept of narrow sectoral \nreciprocity. i \n\nf \n\nJ \n( \n~\u00b7 \n\n\u00b7~ \n\nd \n! \n\n\fKey issues in the \"International Model\" as at present \nenvisagea include the \n\nfollowing: \n\n1. Entry conditions for common carriers and enhance \nservice providers to and within foreign countries \nincluding recognising RPOA status. It also considers entry conditions to the termina \nmarket including the f irst telephone set in forei \ncountries. 2. Licensing procedures for US provlders for service \nto and in foreign countries ; future application \naccounting rates under ITU recommendations. It also considers network access for service \nproviders, as matched against the future Open \nNetwork Architecture (ONA) access (see APPENDIX 1 \nforeseen by the FCC in the United States. 3. 4 \u2022. \"Least restrictive standards\". The problem of \nensuring international interoperability of \ntelecommunications services is not addressed in \ndepth. Openness includes the request for US \nparticipation in the \"standards-setting bodies of \nforeign countries\", a principle which is not yet \ncontained in the GATT Standards Code but which ma, \nwell be the subject of negotiation in the Uruguay. Round. Narrow sectoral reciprocity, to be unilaterally \nassessed by ref erence to the US system regarding \n(1) terminal equipment ; (2) core (network \nswitching and transmission) \nauthorisation of facilities, such as ptivate cable \nor satellite facilities ; and (4) network related \nservices, such as enhanced services. Reference i~ \nmade to expanding the. GATT Public Procurement Code \nto Telecommunications. equipment ; (3) \n\nIn the rule-making part of the FCC notice it is propose \nthat comprehensive requirements are established for \ngathering information on the activities of foreign-owne \ncommon carrier services and enhanced services as well a \ncore network equipment and terminal equipment f rom \nforeign sources. 'i ; \n' (\" 1. \u00b7 r\u00b7 1 \n\nl,1i\u00b7\u00b7,. ;, ; \n: \nr \n\ni 1 \n\n\u00b71 1 \n\n1 f ! \n\n1 \n\n1 \n,1 \n\n1 \n\n\u00b7\" \n\nt \n\n,1 \n;' \n\n\" ;'l \n\nl ' \n\n\f165 \n\nUS/EC relations are currently evolving in the following way \n\ncontacts have intensified at the EC/US level, in order \nto develop better mutual understanding. A Fact Finding \nMission to the United States was carried out by an EC \ndelegation in June 1986, and a similar visit was made by \na delegation from the US in February 1987. At the meeting of February 4-6, 1987, in Brussels, the \nf ollowing areas for intensifying co-operation between \nthe EC and US were agreed : \n\ncloser co-operation on standards, including a regular \nexchange ,of information between the CEPT and the US \nECSA-ANSI about draft telecommunications \nspecif ications ; \n\ncloser exchange of information on the implementation of \u00b7 \nstandards for new network generations, in particular \nISDN ; \n\nclose exchange of information regarding US/EC trade. In conclusion, telecommunications can be expected to remain a \nmajor issue in EC/US trading relations particularly as the \npressure to find and develop new market opportunities \nincreases and as the Uruguay Round of trade negotiations \nprogresses. for trade expansion and mutual benefit which this situation \nundoubtedly presents were put at risk by narrowly conceived \ntrade legislation in the US and the implementation of \nunilateral and unjustified measures against trading partners. It would be unfortunate if the opportunities \n\n( \n\n1 1 \ni \n( \nj \nj. (. ,~--. /\" \n\n1\u00b7 \n\n1 \n11 \n\n1\u00b7: \n\n1 '. 1 \n\n166 \n\nThe Community should continue to adopt a positive profile in \ndeveloping its dialogue with the United States. As part of \nits input into this process, the Community should : \n\nseek to define its own\u00b7 concept of \"appropriate \nregulation\" in the area of telecommunications; \n\ndiscuss bilateral issues in a flexible way, while \ndefending its legitimate interests; \n\nseek to improve the collection at the Community level of \ninformation required in connection with these \ndiscussions; \n\ncontinue the current dialogue as a contribution towards \nresolving the major issues in this sector in the -common \nf ramework of the Uruguay Round ; \n\ncontinue to co-operate with the United States in those \nareas which contribute to developing an open trading \nenvironment, in particular on international standards. 3. 3. Relations with Japan. 3. 3. l \n\nAccess to market \n\nJapan substantially reshaped the regulatory environment of \nits telecommunications sector \nin 1985 by privatising NTT \nand introducing competition into the sector (see APPENDIX 1). ' j \n\n' i \n\nIn parallel, a series of discussions has taken place between \nthe United States and Japan on the opening of the Japanese \ntelecommunications market to US suppliers, based on an \nagreement concluded between the United States and Japan. in \n1980. Subsequent to the liberalisation of the Japanese \ntelecomrnunications sector in 1985, a growing number of joint \nventures with participation of US suppliers and service \nproviders have developed. Regarding trade relations between the Comrnunity and Japan, \nthere is still no noticeable sign of an opening of the \nJapanese telecommunications market for EC suppliers. The \nEC/Japanese balance in telecommunications equipment is \ncharacterised by negligeable experts to Japan and steadily \ngrowing EC imports from Japan. In 1985, EC irnports from \nJa,Ran in \n\n\ftelecommunications equipment totalled \u00b7616 million ECUs, while \nexperts totalled only 34 million ECUs. According to \npreliminary statistics for the first half of 1986, \nCommunity's deficit with Japan rose further. replaced the US as the country with whi\u00e7h the_Community has \nthe largest deficit. the \nJapan has \n\n167 \n\n3. 3. 2. Standards \n\nIn general the Commission is pressing the Japanese \nauthorities to adopt standards closer to international ones \nand also to permit place of origin control of standard. The Member States took a position at the CCIR meeting at \nDubrovnik in June 1986 against a Japanese-based standard on \nhigh definition television which would have substantiaily \nf avoured Japanese industry and which would have been \nincompatible with the European environment, based on the \nevolution of the\u00b7 MAC/packet standards, according to \nDirective 86/529/EEC on the adoption of cornmon technical \nspecif ications of the MAC/packet family of standards for \ndirect satellite television broadcasting. The Commission further undertook a series of bilateral \ncontacts with Japan throughout 1986 to emphasise the \nCommunity's support for open standards, in particular in the \nISDN/OSI context. At this stage, a Cornrnunity approach could be envisaged along \nthe f ollowing lines : \n\nImportant problems remain because of the unsatisf actory \nbalance of benefits in trade in telecommunications \nequipment between Japan and the Comrnunity. The \nComrnunity should pursue its effort towards further \nmarket opening in Japan, including telecornmunications \nservices. The Community should insist on being fully consulted \nabout arrangements between the United States and Japan \nthat affect its interests. to ensure that such arrangements are consistent with \ninternational obligations. It should rnake every effort \n\n1 l i l \n\n] \n\n1 \n\nj \n'1 \n\n!. ( \n\n1 \n1 \n\n~i \n~I \n\n\f168 \n\nThe Community should continue to exchange information on \nstandards with Japan and to press Japan to adopt \nstandards closer to international ones and participate \nfully in the international process of developing \nstandards. This would help open the Japanese market \nand, more generally, avoid Community firms being at a \ndisadvantage on the world market. 3. 4. Developing relations in telecommunications with other \n\nindustrial countries. A long-standing relationship exists at the industrial and \nTelecornmunications Administrations. level with Canada, \nAustralia and New Zealand. Canada, Australia and New Zealand \nhave highly developed telecommunications systems. The three countries\u00b7have an interest in strengthening the \ninternational standards organisations and open international \nstandards, as has the Community. The f ramework for more intense direct co-operation on these \nissues exists. The Commission currently expects the joint \nreview of the implementation of the fr. amework agreement with \nCanada, which will also deal with opportunities for increased \nco-opera. tion. The Commission, furthermore, signed an \narrangement with Australia in Autumn 1986 for co-operation in \nthe field of science and technology. As regards-the neighbouring countries of Eastern Europe, the \ndevelopment of more intense relations in the \ntelecommunications field will depend on the general process \nof normalising relations with these countries, which has made \nsome progress in the past two years but is by no means \ncomplete. The multiple applications of some types of \nadvanced telecommunications equipment may give rise to sorne \nreservations as to the wisdorn of greatly expanding our trade \nor co-operation with the East in this area, due to the \nundertakings given by the majority of Member States in the \nCOCOM \ncertain products in \n\nf ramework to control experts to Eastern Europe of \n\n1 \u00ce). ! rr. ~ \n\n1 \n\n;\u00b7 \n\n1 \n\n! j. 1. \u2022 1 \n1 \n\n\\' \n1 \n'\\ \n\n1 \n1. l: \n\u00b7 I \n\u2022 \n\n1 \n\ni. \u00b7I \n\n1 \n\n1 \n\n1\u00b7 \n\n1 \n\n1 \n\ni \n\n!I \nI! \n1 \n\n~ \n\ni. 169 \n\nthis field. At the same time the Community has a basic \ninterest in promoting the f low of information and an open \ninformation environment with these countries. Further \nanalysis is needed on how future relations with these \ncountries in telecomrnunications should evolve. 3. 5. Relations with Africa, Latin America, Asia and the \n\nMediterranean \n\nTelecommunications will be the basis of the new inf orrnation \ntechnologies. future world service economy. The Cornrnunity therefore must \ndevelop a coherent strategy with regard to telecornmunications \nin its relations with the Third World. It will be an essential cornponent of the \n\nAn intense network of relations already exists with many of \nthese countries at the industrial level. The Cornmunity's \nAdministrations have developed close ties in the f ramework of \nthe ITU. Further contacts will be made in the context of the \nUruguay Round. These relations should be further developed. Relations in \ntelecommunications must evolve - and must reinforce -\nthe \ngeneral economic relations which have been developed with \nthese countries. \u00b7\u00b7{ \n\n1 \n1 \n\nA s~ecial f ramework of co-operation is of fered by the third \nLerne convention with the 66 ACP states, the implementation of \nwhich has begun. Telecommunications offers substantial \npotential, particularly for increased regional co-operation. The ITU Maitland report [\"The Missing Link\", International \nTelecommunications Union, 19851 has emphasised the important \nrole which telecornmunications projects can play in the \ndevelopment of rural areas in developing. countries and for \nresolving problems in distribution, e. g. , of food and other \ntypes of aid. In the general framework of consolidating the Community's \nrelations with Latin America and of strengthening the \nCornmunity's relations with South and South East Asia, the \nCommission has, in consultation with the Senior Officials \nGroup on Telecommunications, undertaken initial contacts to \ninvestigate closer ties with some of these countries on \ntelecommunications. There seems to be an interest in closer co-operation on \nstandards and on future network technology. The Community \nwill have to develop a position on the type of co-operation \nwhich could be envisaged. 170 \n\nIn recent years, the Community has been developing closer. contacts with China on information technologies and \ntelecommunications. At the same time, the European \ntelecommunications industry has been very active in the \ndeveloping Chinese market. At this stage, intensive \nco-operation on standards has developed and a number of pilot \nprojects have been initiated. The Community will also have to define its future relations \nin telecommunications with the neighbouring Mediterranean \ncountries, some of which, such as Turkey, are members of the \nCEPT. 4. The future development of the international \ntelecommunications system \n\nThe world's international telecommunications system is \ncurrently experiencing a period _of extreme tension and \nuncertainty, as each region and country tries to adjust its \nregulatory environment to the new situation created by the \nchanges of technology. The Community will have to formulate \na joint position with regard to major issues posed at the \ninternational level. 4. 1. Standards and international connectivity \n\nClear international standards established by the appropriate \norganisations must be seen both in the Community and at the \nworld level as the basic element for ensuring \n\nmarkets open for all participants ; \n\nmaintenance of international connectivity of \ntelecommunications networks and services. The Community's own standards policy (see chapter VII) has as \none of its major objectives the support of this international \nprocess. 1 \n\n1 \n\n' \u00b7 11 \n'. ~\\ \n1 : \n1 \u00b7i \n1 ,' \n1, \n\n~ ' \n\n1; \n! \n\n1 \n\n1. 1 \n\n1 \nI' \n\n1 \n\nIl. :I' \n\n--- -----~-~----'--\"\"--~--\u00b7 ----. -. -----=--------. ----_ \n\n__. ----~-. ~ _Jiiiiimil __ \n\nIJ \n\n\fl l \n\n:1 \nl \n\u00b7l \n\n' 1 \n\n1 \n1 \n1 \n\nt}i \n\n~ 1 \n\n1 \n\n171 \n\nThe Community should therefore continue fully to support the \nITU and its CCITT committee in its role as the main body for \ndeveloping recornrnendations on international standards in \ntelecommunications ( see APPENDIX 4). it can to increase the efficiency of this international \nprocess. One of the major ways should be substantially to \nincrease the Cornrnunity's own resources in standardisation \nwork, _and to increase European input to CCITT comrnittees, in \nthe frarnework of its co-operation with the CEPT (see Chapter \nVII ). It should do whatever \n\n4. 2. The ITU and its impact on the Community's regulatory \n\nenvironment \n\nThe recommendations and regulations of the International \nTelecornrnunic\u00e0tions Union influence the regulatory environment \nof the Community far beyond CCITT activities for \ninternational standardisation. CCITT/CCIR recomrnendations and regulations influence in \nparticular international tariffs and accounting rates and \ninternational operation\u00b7of enhanced service providers and use \nof leased lines. The present CCITT D recommendations spell \nout certain restrictions on the international use of these \nlines (see APPENDIX 4). For the Comrnunity, the impact of !TU recomrnendations must be \nanalysed along two lines : \n\nimplications inside the Community for intra-Community \ntraff ic. implications for the Comrnunity's outside relations in \ntelecommunications, in particular regarding the \ndefinition of a cornrnon position on \"appropriate \nregulation\" for the future GATT negotiations. 1 1. 1 \n' \u00b7 \nr: \nrt \nr \n\n1. 172 \n\nArticle 234 of the Treaty expressly recognises the \ninternational law doctrine of \"pacta sunt servanda\". However, Article 234 also states that \"to the extent that \nsuch agreements are not compatible with the Treaty, the \nMember State or States concerned should take all appropriate \nsteps to eliminate the incompatibilities established. Member \nStates shall, where necessary, assist each other to this end \nand shall, where appropr ia_. te, adopt a common attitude\". The Community should continue fully to support and strengthen \nthe International Telecommunications Union as the major \nstabilising factor in international telecommunications. The ITU World Administrative Telegraph and Telephone \nConference (WATTC) scheduled for late 1988 (see APPENDIX 4) \nwill discuss, inter alia, whether and how to regulate \nspecialised networks and enhanced services. Currently, \u00b7the \npreparatory WATTC committee is discussing a new set of rules. The WATTC 88 conference will have a major influence on the \nCommunity's future ex. ternal relations in telecommunications. The Community will ther. efore have to define a common\u00b7 position \nwith regard to the conference and its preparation. 4. 3. International satellite organisations \n\nINMARSAT \n\nINTELSAT and \n\nSince their creation in 1964 and 1975 respectively, the \nINTELSAT and INMARSAT systems have developed into a major \ncomponent of the international telecommunications system, \nboth for the developed and developing world (see APPENDIX 2). The INTELSAT system now carries approximately two thirds of \ninternational telephone traff ic. For ma~y Third World \ncountries, it is the main telecommunications link to the \noutside world. 1 \n\n: 1 \n\n\"' I\u00b7' \n!\u00b7: \nl\u00b7i \n1\u00b7 \n\n1 \n\ni\u00b7 \n\n'. j \n\n\u2022 \n\ni 1 \n1 \n1\u00b7 \n1 \n\n1 \n\n11. J!i \n\n\f173 \n\nINTELSAT has corne under pressure for two reasons : \n\nthe extension of US regulatory concepts to the \ninternational scene and acceptance by the FCC of a large \nnumber of applications to provide international \nsatellite communications threatens INTELSAT's \nprofitability on the high-density routes (principally \nNorth Atlantic) and its basic concept of subsidising \nlow-density revenues from high-density routes ; \n\nthe emergence of a number of sub-marine optical cable \nprojects will fundamentally change the comparative \nadvantages of satellites and cable and erode INTELSAT's \nrevenues on traditional fixed point telephony. While competition by alternative satellites is subject to the \n\"economic harm\" procedure under Article 14 of the INTELSAT \nconvention, this is not the case with cable projects. The current international telecornmunications system thus \nfaces two basic challenges \n\nINTELSAT will have to adapt its organisation and its \nstrategy to a more competitive environment ; \n\nthe international telecommunications community will have \nto develop new mechanisms for global cc-ordination, \nincluding satellite and cable connections. Further developrnent is largely linked to the evolution of \ntransatlantic traff ic and the interconnection issue regarding \nthe newly emerging competitive US service providers (see \nabove). \u00b7 \n\nAt the sarne time, INMARSAT is considering expanding its \nactivities into new business areas, in particular land and \nair mobile radio communications. This may have major \nconsequences for the Community. ~. ~/ \n\nThe Community Member States have a major interest in \nINTELSAT. The Community will h~ve to develop a common \nposition with regard to the future evolution of international \nsatellite communications. 174 \n\n' 1: \n1: \n\n5. Conclusions \n\nTelecommunications network infrastructure and \ntelecommunications related services are an essential \ninfrastructure for the international economy. \u00b7 Trade in services and in equipment will be major issues for \nthe Community's external trading relations in the years to \ncorne. More specif ically \n\nthe Community has a major interest in promoting foreign \nmarket opening in services and in equipment. The major forum for determing the future f ramework for \ntrade and telecommunications related services will \ntherefore be the new GATT Round. The Cornmunity will \nneed to deterrnine a common position on \ntelecommunications with a view to these negotiations. The starting point must be internal consensus on a \nconcept of \"appropriate\" or \"acceptable\" regulation. Given the close integration of telecommunications with \nother services, the Community's position on \ntelecommunications must be influenced by its intention \nto work, in the framework of the GATT negotiations, \ntowards a more open trading environment for services in \ngeneral. --------------------------\n\n\f!: \n\nJ. J \n\n> 1 \n\n1 1 , ! \n\n1 \n\n1 \n\n~ \n\n175 \n\nThe Community should fully support the International \nTelecommunications Union as a major stabilising factor \nin international telecommunications. Where incompatibilities of !TU recommendations and \nregulations may exist regarding the future eyolution of \nintra-Community telecommunications services and \nagreements negotiated in the GATT framework, Member \nStates should work jointly towards eliminating such \nincompatibilities. This concerns in particular the ITU \nWorld Administrative Telegraph and Telephone Conference \n(WATTC-88) which may have a major influence on the \nCommunity's future external relations in \ntelecornrnunications. The Comrnunity has a long term interest in preserving \nmajor stabilising factors of international \ntelecommunications provision, such as international \nsatellite organisations. The Comrnunity and the Member \nStates should define a common position with regard to \nthese organisations, in particular with regard to \nINTELSAT and INMARSAT. The Cornrnunity, within its overall interest in developing \nits external relationships, should develop closer \nrelations on telecommunications with Third Countries. Co-operation on telecommunications could become an \nimportant component of the Community's relationship with \nthe Third World. -\n\nWithin its general trade policy, the Comrnunity has a \nbasic interest in developing its trading relations in \ntelecommunications with the United States. Such \nrelations must be based on the principle of mutual \nbenefit, \nsectoral reciprocity which only faveur one party. and cannot be based on concepts of narrow \n\nRelations with the EFTA countries are of special \nimportance. 176 \n\nThe Japanese market remains virtually closed to European \nsuppliers, while the Community's deficit in \ntelecommunications with this country is steadily \nincreasing. This situation is most unsatisfactory. The Member States and the Telecommunications \nAdministrations face a number of immediate issues, on \nwhich common positions must be sought: \n\ninterconnection with US other common carriers, such \nas MCI and GTE-Sprint \n\nthe handling of applications for \u00b7interconnection \nand access by US providers of enhanced services \nwhich may obtain RPOA status \n\nUS requests for facilities for enhanced services \nproviders comparable with those which may be \noffered under future US arrangements for Open \nNetwork Architecture (ONA) \n\nfuture interpretation of ITU recommendations \nregarding international accounting rates and \nregulation of enhanced service providers \n\nMember States must avoid def lection of trade and distortions \nof competition within the Community by taking diverging \npositions on these issues. for building \u00b7a Communi ty \n\nAn important requirement \nposition, \nrelative to relations with Third Countries, \nshould be the collection of more detailed information \non interconnection between Community networks and \noutside providers and on the development of the overall \ntrading relations of the Community in telecornrnunications \nservices and equiprnent. i\u00b7 \n\nt \n\n1 \n\n11 \ni \n\ni:\u00b7 \n~ \n\n' \n\n\f177 \n\nl. ,/ \n\n1 \n\\ \n\n1! \n\nX \n\nTHE INGREDIENTS OF A SOLUTION \n\n1. Major points to be considered for a solution \n\nOn the basis of the foregoing analysis, the following\u00b7 seem to \nbe major points to be considered for any attempt to f ind \nagreement for broad regulatory aims for the telecommunications \nsector in the Community. Given their importance and wide ramifications, regulatory \nchanges in. telecommunications can only be introduced \nprogressively. Time must be allowed for present \nstructures, which have grown up historically over a long \nperiod, to adjust to the new environment. The major \nobjective must be the completion of the Internal Market by \n1992. Regulatory changes in telecommunications must take account \nof the views of all parties concerned, in particular \nprivate and business users, Telecommunications \nAdministrations, the Administrations' work force, new \nproviders of services and the telecommunications and \ndata-processing equipment industry \n\nThere is consensus in the Comrnunity that competition in \nthe telecomrnunications services and terminal equipment \nsectors must be substantially expanded, in order to react \nto technological, econornic and world market trends ; \n\nThere is also c6nsensus that the role of the \nTelecommunications Administrations in the provision of \nnetwork infrastructure must be essentially safeguarded, in \norder to allow them to fulf il their public service \nmandate ; \n\nA stable \"natural\" boundary line between a \"reserved \nservices\" sector and a \"cornpetitive services\" sector \n(including in particular \"value-added services\") is not \npossible. Due to technological development \nthe trend \ntowards integration \nany def inition (and reservation) \nof a service can only be temporary and must be subject to \nreview if it is not to impede the overall development of \ntelecommunications services. There is however in practice \n\u00b7consensus between the Member States that voice telephone \nservice is a basic service. Currently, this service is \nreserved in all Member States for provision by the \nTelecomrnunications Administrations. At present, this \nservice corresponds to 85% - 90% of telecornmunications \nrevenues. -\n\nI~. ~\u00b7 \n\n\" \n\n\f178 \n\nAs one counterpart of a more open market environment, the \ntime it takes to establish and apply international \nstandards must be substantially reduced, in order to \nmaintain future network integrity and to promote the \navailability and interoperability of efficient Europe-wide \nand worldwide services. allowed to participate in the newly emerging \n\nTelecommunications Administrations generally are \nshould be \ncompetitive services and terminal eqyipment market. This \nrequires that in the future regulatory responsibility must \nbe separated from operational responsibility. Regulation \nconcerns in particular licensing, control of conformity \ntesting and mandatory interface specifications, frequency \nadministration, and general surveillance including tariff \nprinciples ; \n\nand \n\nEntry of the Telecommunications Administrations but also \nof the computer and data-processing multi-national \ncompanies \nimplies the danger of abuse of a dominant position. Control with regard to both types of dominant market \nparticipants will have to be strengthened ; \n\ninto a competitive telecommunications sector \n\nAction at Community level must be taken towards narrowing \nthe differences between Member States regarding the \nprovision of network facilities to the newly emerging \ncompetitive services and terminal equipment sector. Otherwise a Community market for services will not develop \nrapidly. This has implications both for technical \nregulations and network termination points and for usage \nconditions and tariff principles ; \n\nThe lo. ng-term convergence of telecommunications wi th \naudio-visual technologies must be taken into account, in \naddition to the current\u00b7convergence between the \ntelecommunications and data-processing sectors. This \naffects in particular policies concerned with satellite \ncommunications and cab le-TV networks. \u00b7 \n\nWhere cable-TV network infrastructure and satellite \ncommunications are also used for two-way communications, \nclose surveillance with regard to their relationship and \ninterfacing with the overall telecommunications network \nwill be needed, in order to ensure the long-term overall \nintegrity of the telecommunications infrastructure. I', \n\n:( \n\n,, \nl, \n\n1 \n\n1 \u2022. ; \n\n\f179 \n\nTwo-way satellite communications and the regulation of \nup-links will need case-by-case consideration. Closely \nrnonitored cornpetition should be a possibility in those \ncases where unacceptable interference with other satellite \nor radio communications systems is not to be expected and. where the revenue base and financial viability of the \ngeneral network infrastructure provider are not put into \nquestion. (VSAT or \"microterminals\") suitable for data exchange \nonly, this situation should normally be assumed \nautomatically. In the case of very small satellite antennae \n\nGiven the trend in satellite communications towards point \nto multi-point 'broadcasting' applications for closed user \ngroups, the regulatory regime for receive only earth \nstations (ROES) for satellite communications should be \nassimilated to the regime for telecommunications terminals \nand TV satellite antennae and fully opened to competition. With the growing importance of services, the Community \nwill face in its external relations a growing number of \ntelecommunications-related issues. Consensus must be \nachieved in time for the preparation of the new GATT round \nwhich will include telecommunications services. Consensus must be further developed at Community level \nregarding telecommunications issues and the Community's \noverall framework of external relations, in particular with \nthe EFTA countries and CEPT, with the United States and Japan \nand with the international organisations in this field, such \nas the International Telecommunications Union (!TU). 2. The application of the Treaty to the telecommunications sector \n\nThe current convergence of regulatory positions in the Member \nStates provide a unique opportunity to synchronise current \nnational moves and give them a European scale and dimension. The Treaty sets a clear framework for the achievement of a \nCommunity-wide market for telecommumnications services and \nequipment. -\n\nJ \n\n1 \n1 \n\n1 \n\n\f180 \n\nArticle 2 of the Treaty provides that \n\n\"The Community shall have as its task, by establishing a \ncommon market and progressively approximating the economic \npolicies of Member States, to promote throughout the \nCommunity a harmonious development of economic activities, \na continuous and balanced expansion, an increase in \nstability, an accelerated raising of the standard of \nliving and closer relations between the states belonging \nto it\". All the substantive provisions of the Treaty must be_construed \nin the light of Article 2. As a corollary to this, \nsubstantive provisions of the Treaty are often def ined as \nspecific manifestations of the Treaty's objectives. Member \nStates are obliged by Article 5 of the Treaty to \"facilitate \nthe achievement of the Community's tasks\" and to \"abstain from \nany measure which could jeopardise the attainment of the \nobjectives of (the) Treaty\". Member States are therefore \nlikewise reguired to fulfil the goals laid down in Article 2 \nand to respect the Treaty as a whole. the \n\nRegarding the framework provided by the Treaty, it is \nimportant to recall that the provision of telecommunications \nnetwork infrastructure, services and eguipment is \ncharacterised by certain basic facts : \n\nWhile provision of network infrastructure generally requires \nthe physical presence of the provider in the geographical area \nin question, provision of services and equipment in most cases \ndoes not, with the result that the latter are largely \ntradeable. Satellites occupy a hybrid position between \ninfrastructure and services. (See section VI. 4. 2. 1). 1 \n\n' \n\n\u2022 \n\n' 1 1 \n\nIt is against this background that the provisions of the \nTreaty of most relevance to the telecommunications sector must \nbe considered. These provisions are in particular:-\n\n\f181 \n\nthe provisions governing competition, in particular \nArticles 85~ 86, and 90 ; \n\nthe provisions concerning the freedom to provide services \nand the freedom of establishment, in particular Articles \n52 to 66 ; \n\n\u00b7 \n\nthe provisions concerning the free circulation of goods, \nin particular Articles 30 to 37 ; \n\nthe provisions concerning the common commercial policy, in \nparticular Articles 110 to 116. the general provision for the approximation of provisions \nlaid down by law, regulation or as administrative actions \nin Member States as directly af fecting the establishment \nor functioning of the common market, in particular Article \n100, and after the coming into force of the Single Act, \nArticle 100 (a). Beyond these Articles analysis needs to take into account \nother provisions of the Treaty, as well as case law developed \nby the Court of Justice with regard to telecommunications and \nto other sectors, in so far as they are of relevance to the \ndiscussion. Details of specific cases treated by the Court and \nthe Commission in the past have been presented in Chapter VII. The Commission has stated previously that \"it regards the \nMember States' postal and telecommunications authorities as \ncommercial undertakings since they supply goods and services \nfor payment\" which are subject to the application of Community \ncompetition law, an opinion confirmed by the Court of Justice \n[cf. Case 41/83, Commission v. Italy of 20th March 1985, not \nyet reported (British Telecom)]. For easy reference, central prov1s1ons of the Treaty in the \ncontext of telecornrnunications are cited hereunder : \n\n1. \\. 1 \n\nl \n\u00b7~ \n' \n\n!Il!~ \n\n\u2022. ~' \n\n---------------------------~~ \n\n1 \n\n\f182 \n\nArticle 90 (1) provides that \n\n\"In the case of public undertakings and undertakings to \nwhich Member States grant special or exclusive rights, \nMember States shall neither enact nor maintain in force \nany measure contrary. to the rules contained in this \nTreaty, in particular to those rules provided for in \nArticle 7 and Articles 85 to 94. \" \n\nArticle 90 (2) provides that \n\n\"Undertakings entrusted with the operation of services of \ngeneral economic interest or having the character of a \nrevenue-producing monopoly shall be subject to the rules \ncontained in this Treaty, in particular to the rules on \ncompetition, in so far as the application of such rules \ndoes not obstruct the performance, in law or in fact, of \nthe particular tasks assigned to them. The development of \ntrade must not be af f ected to such an ext\u00e9nt as would be \ncontrary to the interests of the Comrnunity. \" \n\nArticle 90 (3) provides that \n\n\"the Commission shall ensure the application of the \nprovisions of this Article and shall, where necessary, \naddress appropriate Directives or Decisions to Member \nStates\" \n\nArticle 86 provides that \n\n\"Any abuse by one or more undertakings of a dominant \nposition within the Common Market or in a substantial part \nof it shall be prohibited as incompatible with the Common \nMarket in so far as it may affect trade between member \nStates. \"Such abuse may, in particular, consist in \n\n\" (a) \n\ndirectly or indirectly imposing unf air purchase or \nselling prices or other unfair trading \nconditions ; \n\n:i \n'1 \n\n'i -\n\n\f183 \n\n\" ( b) \n\nlimiting production, markets or technical \ndevelopment to the prejudice of consumers \n\n\" ( c) \n\n\" ( d) \n\napplying dissimilar conditions to equivalent \ntransactions with other trading parties, thereby \nplacing them at a competitive disadvantage \n\nmaking the conclusion of contracts subject to \nacceptance by the other parties of supplementary \nobligations which, by their nature or according to \ncommercial usage, have no connection with the \nsubject of such contracts. \" \n\nArticle 37 provides that \n\n\"Member States shall progressively adjust any state \nmonopolies of a commercial character so as to ensure that \nwhen the transitional period has ended no discrimination \nregarding the conditions under which goods are procured \nand rnarketed exists between nationals of Member States. \"The provisions of this Article shall apply to any body \nthrough which a Member State, in law or in fact, either \ndirectly or indirectly supervises, determines or \nappreciably influences imports or experts between Member \nStates. These provisions shall likewise apply to \nmonopolies delegated by the State to others\". Article 59 provides that \n\n\"Within the framework of the provisions set out below, \nrestrictions on freedom to provide services within the \nCommunity shall be progressively abolished during the \ntransitional period in respect of naiionals of Member \nStates who are established in a state of the Community \nother than that of the person for whom the services are \nintended. \"The Council may, acting unanimously on a proposa! from \nthe Commission, extend the provisions of this Chapter to \nnationals of a third country who provide services and who \nare established within the Community. \" \n\n, \n\ni. J \n\n\f3. Proposed Community positions \n\n184 \n\nOn the basis of the general points to be taken into \nconsideration and the analysis of the Treaty, proposals for \npositions have been developed which are set out in Fig. 13. The proposals concentrate on those issues which must be \nresolved at Community level for all Member States. They leave \nout questions which are important but fall to the national \nlevel, such as which status for Telecommunications \nAdministrations is best suited to facing the developing \ncompetitive market environment, and related questions of \nfinance, organisation, and employment relations. The proposals rest on accepting the continuation of those \naspects of the current regimes where there is justification \nand compatibility with the Treaty~ Within the framework of \nthe current adjustment and according to their economic \nappreciation and perception, Member States may, of course, \nchoose their own position with regard to these aspects, such \nas a more liberal regime regarding the whole or parts of the \nnetwork infrastructure. As regards reguired change at the \nCornrnunity level. , the proposals in Fig. 13 insist on three \nessential modifications : \n\nPHASED COMPLETE OPENING OF THE TERMINAL EQUIPMENT MARKET \nTO COMPETITION \n\nIn the long run this must include all terminals including \nthe subscriber's first telephone set, given the trend \ntowards. integration of functions and the Integrated \nServices Digital Network. In the short terrn, transitional solutions will have to be \nfound, taking into account that at the present stage the \nlarge majority of Member States firmly maintain their \nrnonopoly covering the first (conventional} telephone set. \u00b7! \n1: \n1. i \n11,: \n/, \n11 \n\u2022I \n\nI,' \n! i. :-. \u00b7-,_;_\u2022 --\n\n\fFigure 13 \n\nP~OPOSED POSITIONS \n\nThe general objective of the position\u2022 set out is the development in the Community \nof a strong telecoa:munications infrastructure and of efficient services : \nproviding the European user Yi. th a broad variety of telecoamunicat. i. ons services on \nthe most favourable terms, ensuring coherence of development betveen Member \nStates, and creating an open competitive enviro~nt, taking full account of the \n\ndynamic technological developments undervay. A) Acceptance of continued exclusive provision or special rights for the \n\nTelecommunications Administrations regarding provision and operation of the \nnetwork infrastructure. 1ihere a Member State chooses a a. ore liberal regime, \neither ~or the vhole or parts\u00b7 of the. network, the short and long term \nintegrity of the general netvork infrastructure should be safeguarded. Closely monitored competitive offering of tvo-way satellite coamrunications \nsystems vill need further analysis. It should be allowed on a case-by-case \nbasis, where tbis is necessary to. develop Europe-wide services and where \nimpact on the f inancial viability of the ma. in provider(s) is not \nsubstantial \u2022 \n\nCommon understanding and def inition regarding infrastructure provision should \nbe worked out under E) belov. B) \n\nAcceptance of continued exclusive provision or special rigbts for the \nTelecommunications Administrations regardi. ng provision of a limited number of \nbasic services, wbere exclusive provision is considered essential at this \nstage for safeguarding public service goals. Exclusive provision must be narrowly con\u2022trued and be subject to reviev \nwithin given time intervals, taking account of technological dev. elopment and \nparticularly the evolution towards a digital infrastructure. services\" ma. y not be defined so as to extend a Telecommunications \nAdministration service monopoly in a way inconsistent witb the Treaty. Currently, given general understanding in the Community, voice telephone \nservice seem. s to be the only obvions. candidate. \"Reserved \n\nC) \n\nFree (unrestricted) provision of all other services (\"competitive services\", \nincluding in particular \"value-added services\") within Hember States and \nbetveen Hember States {in competition witb the Telecommunications \nAdministrations) for ovn use. shared use, or provision to third parties, \nsubject to the conditions for use of the netvork infrastructure to be defined \nunder E). \"Competitive services\" vould comprise all services except basic services \nexplicitly reserved for the Telecoa:munications Administrations (see B). , \n~. 11. \u00b7 li \n(: \n\nli \n\n1 \n\n\" i\u00b7 \n1: \n\n1\u00b7 \n\n')' \n\n1\" \n\n'I \n\nFig. 13 cont \n\nD) \n\nStrict requirements regarding standards for the network infrastructure and \n\nservices provided by the Telecom:mm. ications Administrations or service \nproviders of comparable importance, in order to maintain or create \nCom:aunity-vide interoperability. Tbese requirementa must build in pa~ticular \non Directives 83/189/EEC and_86/361/!ZC, Deciaion 87/95/EE. C and \nRccommcndation 86/659/EF. C. Hember States and the Community abould ensure and promote provision by the. Telecommunications Administrations of efficient Europe-wide and worldwi. de \ncom:ml:\"icatioos, in particular regarding tboae aervicea (be tbey reserved or \ncompetitive) recoamcnded for CommuDity-wide proviaion~_such as according to \nRecoa:mendation 86/659/EE. C. E) Clear definition by Community Directive of general requirements imposed by \n\nTelecommunications Administrations on providers of competitive services for \nuse of the network, including definitions regarding network infrastructure \nprovision. This must include clear interconnect and access obligations by \nTelecoman. mications Administrations for trana-frontier service providers in \norder to prevent Treaty infringements. Consensus must be achieved on standards, frequencies. and tariff principles, \nin order to agree on the general conditions imposed for service provision on \nthe competitive sector. Details of this Directive on Open Retwork Provision \n(0 H P) should be prepared in consultation Yi. th the Hember States, the \nTclecommunications Admini~trations and the otbcr parties concerned. in the \nframework of the Senior Officials Croup on Telecommunications (SOG-T). P) \n\nFree (unrestricted) provision of terminal equipment vithin Hember States and \nbetween Hember States (in competition with Telecoamrunications \nAdministrations), subject. to type approval as. compatible vitb Treaty \nobligations and existing Directives. Provision of the first {conventional) \ntelephone set. could be excluded from unrestricted provision on a t. emporary \nbasis. Receive Only Ea. rth Stations (ROES) for satellite dovn-links should be \nassimilated vith terminal equipment and be subject to type approval only \n\nG) \n\nSeparation of regulatory and operat. ional act1v1t1es of Telecoamnmications \nAdministrations. Regulatory activities concern in p. articular licensing, \ncontrol of type approval and interface specifications, allocation of \nfrequencies, and general surveillance of network usage conditions ; \n\n--\u00b7\u00b7 -- --------=--====. ;;:::-~~\u00b7\u00b7,,. ,. ;,;-~. Fig. 13 cont \n\nH) \n\nStrict continuous review of operational (com:nercial) activities of \n\nTelecommunications Administrations accordi. n,g to Articles 85. 86 and 90, EEC \nTreaty. This appliea in particular to practices of crosa-sub\u2022idisation of \nactivities in the competitive services aector and of activi. tiea in \nma. nuf acturing ; \n\nI) \n\nJ) \n\nStrict continuous reviev of all private providers in the newly opened sectors \naccording to Articles 85 and 86 9 in order to avoid the abuse of dominant \npositions ; \n\nFull application of the Coa:munity's common commercial policy to \ntelecocmrunications. Notification by Telecoaaunicationa Administrations under \nRegulation 17/62 of all arrangement\u2022 between tbea or witb Third Countries \nvhich may affect competition wi. tbin the Cormnnity. Provision of information \nto the extent required for the Commrnity. in order to build up a consistent \nCoamunity position for CATI negotiations and relations Yi. th Third Countries. '. ) \n~ \n\n\f185 \n\nACCEPTANCE BY THE TELECOMMUNICATIONS ADMINISTRATIONS OF \nCLEAR OBLIGATIONS TO INTERCONNECT WITH AND PROVIDE ACCESS \nTO TRANS-FRONTIER SERVICE PROVIDERS \n\nGenerally, the network must be opened, under fair \ncompeti ti ve condi tio\u00b7ns, for service providers from other \nMember States. This is a pre-condition for implementation \nof the Internal Market for the Community's future service \neconomy. Insofar as Member States continue, for the time being, to \nreserve certain basic services for exclusive provision by \ntheir Telecommunications Administrations, reserved \nservices must be construed narrowly and not interfere \nunduly with service provision. from other Member States, in \naccordance with Treaty rules. 'I \n\nli. 1 \n\nCLEAR SEPARATION OF REGULATORY AND OPERATIONAL FUNCTIONS \nOF TELECOMMUNICATIONS ADMINISTRATIONS, \n\nIn those Member States where this still has not been \nIn a more competitive environment, the \ncarried out. Telecommunications Administrations cannot continue to be \nboth regulator \u00e0nd market participant, i. e. referee and \nplayer. Regulatory functions concern in particular \nlicensing, control of type approval and binding \nspecifications, frequency allocation, and surveillance of \nusage conditions. The need for this separation is conf irmed by the trends \nand debates in all Member States which are envisaging more \ncompetition for the sector. The Telecommunications Administrations should be market \nparticipants in the competitive sectors, in an improved \ncompetitive environment \nto the whole spectrum of users and industry. in order to ensure full service \n\nSubstantial differences would continue to exist between Member \nStates, but must be accommodated. This concerns the different \nstatus of the network operators (public/private), and also the \npolicy regarding provision of leased lines and resale of \ncapacity. All Member States agree currently on the necessity \nof securing the financial viability of their Administrations, \neither by excluding pure resale of voice (telephone) on leased \nlines or by tariff schemes which make resale of voice to third \nparties unattractive, such as usage-based tariffs. Both \nmethods will have to be accommodated in the Community. ---\u00b7 -- --\u00b7-- ----====~~\u00b7 =. 186 \n\nHowever, both methods must be limited to a legitimate level of \nprotection of financial viability and must not represent the \nabuse of a dominant position. Current charges for leased \nlines bath at the natiorial and Community level show in some \ncases wide and unexplained divergences. The proposals aim at progressively introducing full \nCommunity-wide competition to the terminal equipment market, \nand as far as possible and justified at this stage to \ntelecommunications services. In pursuing the implementation of these proposals, and the \nlifting of existing restrictions, the Commission will take \nfull account of the fact that the competition rules of the \nTreaty apply to Telecommunications Administrations, in \nparticular \nactivities. It may use, as appropriate, its mandate under \nArticle 90 (3) of the Treaty to ptomote, synchronise and \naccelerate the on-going transformation. to the extent that they engage in commercial \n\n\u00b7, \n\n4. Proposed Community Action Lines to create a favourable \n\nenvironment for the on-going transformation \n\nIn order to create the environment for reaching the objectives \nthe Commission proposes a number\u00b7of actions \nset out, \n\nto smooth the transition towards a more competitive \nCommunity-wide market ; \n\nto promote a strong European presence in both the services \nand industrial field ; \n\nto prepare the Community for its ~iscussions of future \ntrading relations in this field with its outside partners, \nin particular in the framework of GATT. ~ ' \n\n( '. 1 \n\nIt is envisaged : \n\nto accelerate the implementation of existing action \nlines ; \n\nto initiate a number of new action lines needed to \ncomplement and facilitate the transition. 187 \n\n4. 1 ACCELERATION-OF EXISTING ACTION LINES \n\nAs regards the acceleration of implementation of the action \nlines defined by Council in December 1984 for the Community\u2022s \ntelecommunications policy, the Commission foresees : \n\nACCELERATED ADOPTION OF THE PROPOSALS FOR ENSURING THE \nLONG TERM CONVERGENCE AND. INTEGRITY OF THE NETWORK \nINFRASTRUCTURE IN THE COMMUNITY \n\nA pan-European telecommunications infrastructure with full \ninter-operability is the only basis on which an open and \ncompetitive Community-wide terminal equipment and \nservices market can thrive. Intensified industrial \nco-operation within the Community must ensure that \nEuropean industry will fully benefit from the opening of \nthis market. This concerns in particular : \n\n1 \n\n1 \n\n!. 1. !' \n\nrapid adoption of the RACE MAIN programme which. is \nfundamental to longer term network development in the \nCommunity and to Community-wide standards for the \nfuture Integrated Broadband. Communications, and \npromotion of related projects for the progressive \nCommunity-wide introduction of broadband \ncommunications\u00b7 \n\nrapid adoption of the proposals for the introduction \nof digital mobile communications ; \n\nfull application of Recommendation 86/659/EEC on the \nco-ordinated introduction of the Integrated Services \nDigital Network (ISDN) \n\n; \n\nrapid application of the STAR programme for advancing \ninfrastructure in the regions, with the aim of \nincreasing economic cohesion during the current \ntransition. RAPID EXTENSION OF THE CURRENT\u00b7DIRECTIVE 86/361/EEC TO \nINCLUDE FULL MUTUAL RECOGNITION OF TYPE APPROVAL FOR \nTERMINAL EQUIPMENT \n\n\f188 \n\nAccording to the current Council Directive 86/361/EEC on \nthe mutual recognition of testing required for type \napproval, proposals \u00b7for full mutual recognition of type \napproval must be submitted by July 1989 at the latest. The Commission proposes to accelerate this measure which \nis vital for the development of a competitive, \nCommunity-wide terminal market. PHASED REPLACEMENT OF THE CURRENT RECOMMENDATION \n84/550/EEC ON THE FIRST PHASE OF OPENING UP ACCESS TO \nPUBLIC TELECOMMUNICATIONS CONTRACTS BY A COUNCIL DIRECTIVE \n\nJ \n\n\u2022. \u00b7 ~ \n\non the opening of procurement contracts applying to public \nand private Telecommunications Administrations to which \u00b7 \nthe Member States confer exclusive or special rights. The future participation of Telecommunications \nAdministrations in the competitive markets requires more \ntransparency in their purchasing behaviour, in order to \nallow these markets to operate efficiently. 189 \n\n4. 2 INITIATION OF NEW ACTION LINES \n\nAs regards new action lines needed to facilitate the \ntransition towards a more competitive, Comrnunity-wide \nenvironrnent, the Cornmi~sion proposes \n\nI \n\nSUBSTANTIAL REINFORCEMENT OF THE DEVELOPMENT OF STANDARDS \nAND SPECIFICATIONS IN THE COMMUNITY -/ CREATION OF A\u00b7 \nEUROPEAN TELECOMMUNICATIONS STANDARDfr INSTITUTE \n\nbased on the current co-operation of the \nTelecornmunications Administrations wi thin CEPT \u00b7and wi th \nCEN-CENELEC. A substantial reinforcernent of resources \napplied to standardisation is a necessary requirement for \na truly open competitive market. Jointly financed, the institute, based on a small core \nteam of permanent staff and independently managed \naccording to best business practlce, should draw fl~xibly \non experts f rom both the Telecomrnunications \nAdministrations and industry, in order substantially to \naccelerate the elaboration of standards and technical \nspecifications, indispensable for an open and competitive \nmarket environment, and the development of Europe-wide \nservices. This action would build on and complement the Cornmunity's \ncurrent policy on telecornmunications and information \ntechnology standards. II COMMON DEFINITION OF AN AGREED SET OF CONDITIONS FOR OPEN \n\nNETWORK PROVISION (\"ON P\") TO SERVICE PROVIDERS AND USERS \n\nWorking out in common the principles of the provision of \nthe network to cornpetitive service providers is a \nnecessary requirement for a Community-wide competitive \nmarket for terminal equipment and for competitive \nservices, including in particular value-added services, if \na long period of case-to-case decisions is to be avoided. This concerns in particular the def inition of clear \nEurope-wide network terrnination points, usage conditions \nand tariff principles and availability of frequencies \nwhere relevant. i :. \u00b7. 1 \n\u00b7\u00b7. '\\ \n\u00b7! \n-~. \u00b7~. \" j \n~~'~ \n~ ' \n\n/ \n\n190 \n\nThe work should be carried by the Senior Officials Group \non Telecommunications (SOG-T), based on hearings with all \nparties concerned. Subsequently, the Commission would \nsubmit a corresponding Directive on ONP to Cquncil. III COMMON DEVELOPMENT OF EUROPE-WIDE SERVICES \n\nFuture intra-Comrnunity communications will depend on \nachieving three objectives : \n\nEurope-wide compatibility and inter-operability of \nthose services provided by the Telecommunications \nAdministrations. In addition to efficient telephony \nand telex, new services such as teletex, videotex, \np~cket-switched and circuit-switched data services, \nmobile communications and the services ,as defined in \nRecommendation 86/659/EEC on the future ISDN should be \navailable universally at the European level. This \ncould involve joint Community-wide service provision, \nnetwork planning, and tariff principles \n\nRapid development of intra-Community provision of \nvalue-added services. It is proposed to set into \nmotion at the Community level a number of measures \naimed at promoting the emergence of European \nvalue-added services, building on current efforts such \nas the TEDIS initiative. Rapid development of the Community's policy on the \ninformation market, to promote Europe-wide information \nservices, in particular fully mobilising the potential \nof private initiatives. IV COMMON DEFINITION OF A COHERENT EUROPEAN POSITION \nREGARDING THE FUTURE DEVELOPMENT OF SATELLITE \nCOMMUNICATIONS IN THE COMMUNITY \n\nThe international satellite communications sector is \ncurrently going through rapid changes. the positions proposed in Fig. 3, based on prevailing \ntechnological trends, common positions will in particular \nbe required regarding : \n\nIn the light of \n\n\f\u2022\u2022 ,i \n\n'f \n\n~~~~----~-~--'-=---~~. -\n\n\u00b7-- -. - --. ,--\n\n191 \n\ndevelopment of the earth station market in Europe, in \nparticular\u00b7 with regard to comrnon standards \n\nthe future development of space se~ments, in \nparticular the relationships between EUTELSAT~ \nnational, and private systems, and the full use of the \ntechnological gotential of the European Space Agency ; \n\nthe developrnent of international satellite \ncommunications, in particular wit~ regard to INTELSAT \nand INMARSAT. V \n\nCOMMON DEFINITION OF A COHERENT CONCEPT ON \nTELECOMMUNICATIONS SERVICES AND EQUIPMENT WITH REGARD TO \nTHE COMMUNITY'S RELATIONS WITH THIRD COUNTRIES_ \n\nAn intensification of cc-ordination with regard to Third \nCountries and the position on the international regulatory \nenvironment is urgently needed. 'This concerns in particular the preparation of the new \n\nGATT ROUND and future relations with international \norganisations such as the International Telecomrnunications \nUnion. It concerns further the evolving relationship in this \nfield with the EFTA countries, with the United States and \nJapan and with the Third World. VI COMMON ANALYSIS OF SOCIAL IMPACT AND CONDITIONS FOR A \n\nSMOOTH TRANSITION \n\nIn the long term, the most important factor for the future \nevolution of the telecommunications and information \ntechnology sector and its regulatory environrnent, both at \nthe national and the Community level, will be the degree \nof social consensus which can be achieved regarding the \nnew technologies. Common discussions and positions will be needed regarding \nthe best ways to master the shift in job qualifications \nrequired by the change in technology and to expand \nemployrnent in new service provision. \u00b7'\u00b7"} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/0ea55bc0-18f2-4f6f-ac74-b2266759e97c", "title": "87/382/EEC: Commission Decision of 30 June 1987 approving an addendum to the Italian programme relating to the processing and marketing of wine pursuant to Council Regulation (EEC) No 355/77 (Only the Italian text is authentic)", "langIdentifier": "ENG", "mtypes": "html,pdfa1b,print", "workTypes": "http://publications.europa.eu/ontology/cdm#decision,http://publications.europa.eu/ontology/cdm#legislation_secondary,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "European Commission", "date": "1987-06-30", "subjects": "Italy,marketing,viticulture", "workIds": 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"langIdentifier": "ENG", "mtypes": "print", "workTypes": "http://publications.europa.eu/ontology/cdm#act_preparatory,http://publications.europa.eu/ontology/cdm#resolution_initiative_own_ep,http://publications.europa.eu/ontology/cdm#resolution_other_ep,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "European Democratic Group,European Parliament,Socialist Group in the European Parliament", "date": "1987-06-18", "subjects": "Jew,USSR,anti-discriminatory measure,dissidence,emigration,human rights", "workIds": "celex:51987IP0516", "eurovoc_concepts": ["Jew", "USSR", "anti-discriminatory measure", "dissidence", "emigration", "human rights"], "url": "http://publications.europa.eu/resource/cellar/c7b740f0-c852-4587-9f61-693569b133c2", "lang": "eng", "formats": ["print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/d4cafc70-73f6-4f49-9e1c-d1fb683f4708", "title": "Council Directive 87/328/EEC of 18 June 1987 on the acceptance for breeding purposes of pure-bred breeding animals of the bovine species", "langIdentifier": "ENG", "mtypes": "fmx4,html,pdfa1b,print,xhtml", "workTypes": "http://publications.europa.eu/ontology/cdm#directive,http://publications.europa.eu/ontology/cdm#legislation_secondary,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "Council of the European Union", "date": "1987-06-18", "subjects": "animal breeding,breeding animal,cattle,intra-EU trade,veterinary inspection", "workIds": "celex:31987L0328,oj:JOL_1987_167_R_0054_037", "eurovoc_concepts": ["animal breeding", "breeding animal", "cattle", "intra-EU trade", "veterinary inspection"], "url": "http://publications.europa.eu/resource/cellar/d4cafc70-73f6-4f49-9e1c-d1fb683f4708", "lang": "eng", "formats": ["fmx4", "html", "pdfa1b", "print", "xhtml"], "text": "L_1987167EN. 01005401. xml\n\n\n\n\n\n\n\n\n\n\n26. 6. 1987\u00a0\u00a0\u00a0\n\n\nEN\n\n\nOfficial Journal of the European Communities\n\n\nL 167/54\n\n\n\n\n\nCOUNCIL DIRECTIVE\nof 18 June 1987\non the acceptance for breeding purposes of pure-bred breeding animals of the bovine species\n(87/328/EEC)\nTHE COUNCIL OF THE EUROPEAN COMMUNITIES,\nHaving regard to the Treaty establishing the European Economic Community,\nHaving regard to Directive 77/504/EEC of 25 July 1977 on pure-bred breeding animals of the bovine species\u00a0(1), as last amended by Regulation EEC No 3768/85\u00a0(2) and in particular Article 3 thereof,\nHaving regard to the proposal from the Commission,\nWhereas Directive 77/504/EEC was intended gradually to liberalize intra-Community trade in pure-bred breeding animals of the bovine species; whereas, for this purpose, additional harmonization with regard to the acceptance of such animals and their semen for breeding purposes is necessary ;\nWhereas, in this respect, it is necessary to prevent national provisions relating to the acceptance for breeding purposes of pure-bred breeding animals of the bovine species and their semen from constituting a prohibition, restriction or impediment to intra-Community trade either in the case of natural service or artificial insemination ;\nWhereas there must be no prohibition, restriction or impediment on pure-bred female animals of the bovine species for breeding purposes ;\nWhereas artificial insemination constitutes an important technique for increasing the use of the best breeders and, hence, for improving the bovine species; whereas in so doing, however, any impairment of the pedigree must be avoided, particularly with regard to male breeders, which must possess all guarantees of their genetic value and of their freedom from hereditary defects ;\nWhereas it is necessary to make a distinction between the acceptance for artificial insemination of pure-bred bulls and their semen which have undergone all the official tests laid down for their breed in a Member State and the acceptance of bulls and their semen accepted solely for the purposes of testing\u00a0;\nWhereas it is useful to establish a procedure for solving, in particular, difficulties that may arise in the assessment of the results of tests ;\nWhereas the provision that semen must come from officially approved centres responsible for artificial insemination is capable of providing the guarantees necessary for attaining the desired end ;\nWhereas it is desirable that pure-bred bulls and their semen be identified by blood grouping or any other appropriate methods\u00a0;\nWhereas it is useful to provide for the designation of certain bodies for collaborating in the harmonization of testing methods and of the assessment of results ;\nWhereas in the light of particular conditions currently existing in Spain and Portugal it is necessary to provide for an additional prolongation for the implementation of this Directive,\nHAS ADOPTED THIS DIRECTIVE :\nArticle 1\nMember States shall ensure that, without prejudice to animal health rules, there is no prohibition, restriction or impediment on the acceptance of pure-bred female animals of the bovine species for breeding purposes and the acceptance of pure-bred bulls for natural service. Article 2\n1. A Member State may not prohibit, restrict or impede :\n\n\n\n\n\n\n\u2014\n\n\nthe acceptance for official testing of pure-bred bulls or the use of their semen within the limits of the quantities necessary for approved organizations or associations to carry out such official tests,\n\n\n\n\n\n\n\n\n\n\n\u2014\n\n\nthe acceptance for artificial insemination within its territory of pure-bred bulls or the use of their semen when those bulls have been accepted for artificial insemination in a Member State on the basis of tests carried out in accordance with Decision 86/130/ EEC\u00a0(3). 2. Where implementation of these provisions would give rise to disputes, particularly with regard to interpretation of the tests, operators shall have the right to seek the opinion of an expert. In the light of the expert's opinion, measures may be adopted at the request of a Member State in accordance with the procedure laid down in Article 8 of Directive 77/504/EEC. 3. The general rules for implementing paragraph 2 shall be adopted in accordance with the procedure set out in Article 8 of Directive 77/504/EEC. Article 3\nMember States shall ensure that the use of pure-race bulls and their semen referred to in Article 2 is subject to identification of the bulls concerned by analysis of the blood group or by any other appropriate method adopted in accordance with the procedure of Article 8 of Directive 77/504/EEC. Article 4\nMember States shall ensure that, for intra-Community trade, the semen referred to in Article 2 is collected, treated and stored in an officially approved artificial insemination centre. Article 5\nThe Council acting by a qualified majority on a proposal from the Commission, shall designate one or more reference centres as being responsible for collaborating in the harmonization of the testing methods and of the assessment of the results. Article 6\nMember States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 1989. They shall forthwith inform the Commission thereof. However the Kingdom of Spain and the Portuguese Republic shall have an additional period of time of three years within which to comply with this Directive. Article 7\nThis Directive is addressed to the Member States. Done at Luxembourg, 18 June 1987. For the Council\n\n\nThe President\n\nP. DE KEERSMAEKER\n\n\n\n\n(1)\u00a0\u00a0OJ No L 206, 12. 8. 1977, p. 8. (2)\u00a0\u00a0OJ No L 362, 31. 12. 1985, p. 8. (3)\u00a0\u00a0OJ No L 101, 17. 4. 1986, p. 37"} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/f107566d-8e73-4053-84e8-e5ca0ed9465a", "title": "RESOLUTION on European space policy", "langIdentifier": "ENG", "mtypes": "print", "workTypes": "http://publications.europa.eu/ontology/cdm#act_preparatory,http://publications.europa.eu/ontology/cdm#resolution_other_ep,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "Committee on Industry, Research and Energy,European Parliament", "date": "1987-06-17", "subjects": "European Investment Bank,European Social Fund,International Atomic Energy Agency,research programme,satellite,space research,technical cooperation", "workIds": "celex:51987IP0066", "eurovoc_concepts": ["European Investment Bank", "European Social Fund", "International Atomic Energy Agency", "research programme", "satellite", "space research", "technical cooperation"], "url": 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"BOUTOS,European Parliament", "date": "1987-06-16", "subjects": "Greece,Member States' contribution,VAT,financial year,own resources,redemption,tax law", "workIds": "celex:91987H000094", "eurovoc_concepts": ["Greece", "Member States' contribution", "VAT", "financial year", "own resources", "redemption", "tax law"], "url": "http://publications.europa.eu/resource/cellar/ae09730a-a3de-4f96-a96b-bd9d4c49b9ce", "lang": "eng", "formats": ["debate.print", "print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/7d7d4d61-3dec-43fa-b7b0-d9333eb3f623", "title": "QUESTION NO 8 BY MR ARBELOA MURU (H-907/86) TO THE COMMISSION: OIL FOR THE POOREST COUNTRIES", "langIdentifier": "ENG", "mtypes": "print", "workTypes": "http://publications.europa.eu/ontology/cdm#question_parliamentary,http://publications.europa.eu/ontology/cdm#question_parliamentary_question_time,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "ARBELOA MURU,European Parliament", "date": "1987-06-16", "subjects": "Organisation of Arab Petroleum Exporting Countries,developing countries,development aid,economy,energy supply,freedom to provide services,indebtedness,petroleum,raw material", "workIds": "celex:91986H000907", "eurovoc_concepts": ["Organisation of Arab Petroleum Exporting Countries", "developing countries", "development aid", "economy", "energy supply", "freedom to provide services", "indebtedness", "petroleum", "raw material"], "url": "http://publications.europa.eu/resource/cellar/7d7d4d61-3dec-43fa-b7b0-d9333eb3f623", "lang": "eng", "formats": ["print"]} +{"cellarURIs": "http://publications.europa.eu/resource/cellar/51747ce0-ec56-4ede-b86f-b6286eb5a358", "title": "TRANSPORT OF DANGEROUS GOODS AND WASTES FINAL REPORT FROM THE COMMISSION", "langIdentifier": "ENG", "mtypes": "pdf", "workTypes": "http://publications.europa.eu/ontology/cdm#act_preparatory,http://publications.europa.eu/ontology/cdm#document_com_other_ec,http://publications.europa.eu/ontology/cdm#report_ec,http://publications.europa.eu/ontology/cdm#resource_legal,http://publications.europa.eu/ontology/cdm#work", "authors": "Directorate-General for Environment,European Commission", "date": "1987-06-16", "subjects": "ADN agreement,ADR agreement,harmonisation of standards,international agreement,international transport,radioactive waste,transport of dangerous goods,transport safety,waste management", "workIds": "celex:51987DC0182,comnat:COM_1987_0182_FIN", "eurovoc_concepts": ["ADN agreement", "ADR agreement", "harmonisation of standards", "international agreement", "international transport", "radioactive waste", "transport of dangerous goods", "transport safety", "waste management"], "url": "http://publications.europa.eu/resource/cellar/51747ce0-ec56-4ede-b86f-b6286eb5a358", "lang": "eng", "formats": ["pdf"], "text": "COMMISSION OF THE EUROPEAN COMMUNITIES\n\nCOM(87 ) 182 final\n\nBrussels , 16 June 1987\n\nTRANSPORT OF DANGEROUS GOODS AND WASTES\n\nFINAL REPORT FROM THE COMMISSION\n\nC0MC87 ) 182 final\n\n\fCOMMUNICATION FROM THE COMMISSION\n\n* ?\u00bb THE TRANSPORT OF DANGEROUS GOODS AND VASTES\n\nI. INTRODUCTION\n\nIn a debate on 13 September 1984 the European Parliament adopted two\nresolutions on the environment and in particular the accident\ninvolving the Cargo-ship Mont Louis , requesting the Commission and\nthe Member States to take certain actions relating to the transport\n\nof dangerous and radioactive substances and wastes. The Commission has examined the complicated network of laws ,\nconventions , regulations , agreements , codes and recommendations\ncontrolling the transport of dangerous materials , and developed the\nrecommendations for action at Community level contained in this\ncommunication. The detailed report of the Commission 's working group\n\nwill be made available separately. The Commission 's recommendations are intended to contribute to the\n\nrationalisation of the regulations governing the transport of\ndangerous goods by consistent implementation of the requirements of\ninternational agreements at Community level. Such action will help\nto reduce the risks to man and the environment resulting from the\ntransport of dangerous materials and will assist the aim of\ncompleting the internal Community market by 1992. 2. INTERNATIONAL CONVENTIONS AND AGREEMENTS\n\nMany international conventions and agreements affect the transport\nof dangerous materials ; there are agreements specifically concerned\nwith the transport of dangerous goods and other , more general ,\nagreements concerned with the safety of transport which also affect\nvehicles carrying dangerous materials. In general these agreements\napply only to international transport. - 2 -\n\nU\n\nUN Recommendations\n\nThe United Nations Committee of Experts on the Transport of\nDangerous Goods has published detailed recommendations which cover ,\namongst other things , the classification of dangerous substances , a\nlist of the principal dangerous goods , general packing requirements ,\ntesting procedures , marking , labelling or placarding and shipping\ndocuments. These recommendations are relevant to all modes of\n\ntransport and they have been incorporated into many of the\ninternational agreements on the transport of dangerous goods. Sea transport\nSea transport , with the exception of coastal shipping , is\ninternational and there are many international agreements governing\nall aspects of shipping , safety and pollution prevention , usually\nagreed under the auspices of the International Maritime Organisation\n( IMO ). The most important from the aspect of the transport of\ndangerous goods are SOLAS 74 / 78 ( Safety of Life at Sea ) and MARPOL\n73 / 78 ( Prevention of Pollution ). The international agreements on sea\ntransport are accompanied by detailed Codes of Safe Practice -\nincluding the International Maritime Dangerous Goods Code. The IMDG\nCode gives detailed guidance on the transport of dangerous goods by\nsea , but does not at present cover hazards to the marine\nenvironment. Road , Rail and Inland Waterway\nRoad transport of dangerous goods in Europe is covered by the ADR\nAgreement under the supervision of the Inland Transport Committee of\nthe UN Economic Commission for Europe ( ECE ). The international\nregulations concerning the carriage of dangerous goods by rail ( RID )\nare included in Annex 1 of the International Convention concerning\nthe international carriage of goods by rail ( COTIF ), administered by\nthe Central Office of International Rail Transport ( OCTI ). Transport\nof dangerous goods on inland waterways connected to the Rhine\nnetwork is covered by the ADNR agreement administered by the Central\nRhine Commission. Some other European waterways also apply the ADNR\nagreement as the ADN agreement administered by ECE is not yet in\nforce. - 3 -\n\n5\n\nAir transport\n\nTogether with other members of the International Civil Aviation\nAuthority ( ICAO ) EC Member States apply the standards set out in\nAnnex XVIII of the Convention on International Civil Aviation ( the\n\nChicago Convention ) to transport of dangerous goods by air. Waste\n\nWaste materials are not included as a separate category in most\n\ninternational agreements on the transport of dangerous goods ,\nalthough large quantities of wastes are transported to disposal\nsites outside the country of their origin. Most wastes can be fitted\ninto one of the classes of dangerous goods , but there are\ndifficulties in classifying wastes of mixed or variable composition. There is a need for an agreed classification system for wastes. Radioactive materials\n\nRadioactive materials are a special class of dangerous material and\nregulations for their transport have been developed by the\nInternational Atomic Energy Agency ( IAEA ). All the international\norganisations concerned with the transport of dangerous goods have\nadopted the IAEA regulations and incorporated them into the\nappropriate international agreements , but not all the agreements\nhave yet been revised to conform with the latest edition of the IAEA\nregulations adopted in 1985. The Commission contributes to the\ncontinuing development of the IAEA regulations and promotes the\nuniform application of their requirements throughout the Community. 3. NATIONAL LEGISLATION IN HEHBER STATES OF THE COMHUNITV\n\nInternational transport\nThe international agreements described in the previous section are\nimplemented by means of national legislation in each participating\ncountry. The majority of the international agreements\nadopted and implemented by the EC Member States with a few\nexceptions. The agreements covering the transport of dangerous goods\nby road , rail and air have been implemented by all the Member\nStates , except Greece and Ireland which have not yet ratified the\n\nhave been\n\nADR agreement. In the case of transport by sea , the major conventions affecting the\ntransport of dangerous goods ( SOLAS and MARPOL) have been ratified\nby most Member States , but have not yet been fully implemented. National transport. National regulations on the internal transport of dangerous\nmaterials by road , rail and inland waterway vary considerably\nbetween the Member States of the Community. Several countries have\nregulations which are modelled on the international agreements and\nare largely compatible with them, but there are many small\ndifferences introduced to meet the requirements of particular\ncountries. In other countries the regulations for internal transport\nare not based on those for international transport and one Member\nState has no national legislation for road transport of dangerous\ngoods. 4. COMMUNITY POLICY ON THE TRANSPORT OF DANGEROUS GOOOS\n\nPolicy objectives\nAccidents involving vehicles carrying dangerous goods can have\npotentially disastrous consequences and , even though the number of\nmajor accidents is small , there is understandable public concern\nabout the risks involved in transporting dangerous materials. The\naim of the Community policy should be to ensure that such goods are\ncarried safely and economically , and that the risk to people and the\nenvironment is minimised. Within the Community this objective can best be achieved by greater\nharmonisation and more effective enforcement of the regulations\napplying to national and international transport , and by preventing\nbarriers to the movement of dangerous goods , subject to agreed\ncontrols. International transport\nThe international agreements on the transport of dangerous materials\n\nare extremely complex documents which have taken many years to\ndevelop and it would clearly be pointless for the Commission to\nattempt to duplicate the work of the international organisations\n\n\f5\n\nresponsible for them. The role of the Commission is to ensure that\nthe international agreements are uniformly applied by the Member\nStates of the Community. The Commission will also attempt to achieve a more systematic and\nstructured coordination of Member States' positions within the\ninternational organisations and will encourage these organisations\nto take further steps towards a unified system of regulations for\nall transport of dangerous materials. A number of actions have been taken at Community level concerning\nsea transport of dangerous goods , including the establishment of an\ninformation system for the control and reduction of pollution caused\nby spillages of hydrocarbons and other harmful substances at sea. It\nis proposed that a mandatory notification system for ships carrying\ndangerous goods and a reporting system for incidents involving\npackaged goods should also be introduced. The Commission is also sponsoring a study of an improved Vessel\nTraffic Services ( VTS ) network to reduce the risks of collision at\n\nsea , including the identification of ships carrying dangerous goods\n\n( COST 301 ). National transport\nThere is no comprehensive Community instrument concerning the\ntransport of dangerous goods and Community transport operators may\nhave to comply with different regulations for national and\ninternational journeys. The long-term objective should be to achieve\nthe freedom to provide services for the carriage of dangerous goods ,\nand their circulation in the Community , subject to harmonized\ncontrols. The Commission takes the view that the rules applying to\nthe internal transport of dangerous goods should be based on the\nsame principles as the international agreements. ^It will accordingly\nmake proposals for this purpose. Studies of the transport of dangerous goods by road have found low\nlevels of compliance with existing regulations and priority in\nCommunity action should therefore be given to improved training of\ndrivers and managers , and better enforcement of existing rules. - 6 -\n\n\u03af\n\nWastes\n\nThe Community directives concerning wastes contain certain\nprovisions on transport and make reference to the international\ntransport conventions to which Member States are party. It is\ntherefore important that all Member States should apply the\ninternational conventions in order to achieve uniformity. Classification and labelling\nThere is a large degree of harmonization in the requirements for the\nclassification , packaging and labelling of dangerous goods for\ntransport by different modes , but the Community requirements for the\nclassification and labelling of dangerous substances for marketing\ndiffer significantly from the transport requirements. This can lead\nto multiple labelling of the same product. 5. RECOMMENDATIONS FOR SPECIFIC ACTIONS BY THE COMMUNITY\n\nThe Commission intends to make proposals to the Council on the\nfollowing matters to achieve the objectives of greater harmonization\nand more effective enforcement of the rules governing the transport\nof dangerous goods in the Community :\n\ni )\n\na Community instrument requiring Member States to implement the\nprovisions of relevant international agreements\n\non the\n\ntransport of dangerous goods by sea ;\n\nii )\n\na Directive on a mandatory notification system for ships\ncarrying dangerous goods and a reporting system for incidents\ninvolving packaged goods ;\n\niii ) a Directive requiring Member States to accept road vehicles\n\nconforming to ADR for international transport of dangerous\n\ngoods or wastes ;\n\niv )\n\na Directive on the training of drivers of road vehicles\ncarrying dangerous goods or wastes ;\n\nv )\n\na Directive on the training of road transport managers\nconcerned with the transport of dangerous goods or wastes ;\n\n\fvi )\n\na Directive on the enforcement of r\u00e9gulations on the transport\nof dangerous goods and wastes by road. Drafts of these instruments are in preparation by the Commission. The Commission will also study the following further measures :\n\nvii ) The Commission intends to study how to harmonise Community\nclassification and labelting requirements with those of th\u00e8\ninternational transport agreements. viii ) The Commission will continue to support the work of the\n\ninternational organisations to develop an agreed classification\nsystem for wastes. ix )\n\nA study is being made of providing VTS ( Vessel Traffic Service )\nsystems with additional information on vessels carrying\ndangerous goods. - 2 -\n\nTRANSPORT OF DANGEROUS GOODS AND WASTES\n\nFINAL REPORT OF THE INTERSERVICE GROUP\n\n1. INTRODUCTION\n\n2. INTERNATIONAL CONVENTIONS AND AGREEMENTS - SEA TRANSPORT\n\n2. 1. Conventions and agreements\n\n2. 2. Codes and recommendations\n\n2. 3. EC instruments\n\n2. 4. Other instruments\n\n2. 5. Short sea crossings\n2. 6. Transport of waste materials\n\n3. INTERNATIONAL CONVENTIONS AND AGREEMENTS - INLAND AND AIR TRANSPORT\n\n3. 1. Road transport\n3. 2. Rail transport\n\n3. 3. Inland waterway transport\n3. 4. Air transport\n3. 5. Transport of waste materials\n\n4. TRANSPORT OF RADIOACTIVE MATERIALS AND WASTES\n\n4. 1. IAEA regulations for the safe transport of radioactive\n\nmaterials\n\n4. 2. Impl\u00e9mentation of IAEA r\u00e9gulations\n\n5. NATIONAL LEGISLATION ON THE TRANSPORT OF DANGEROUS GOODS\n\n5. 1. Denmark\n\n5. 2. Belgium\n5. 3. France\n\n5. 4. Ireland\n\n5. 5. Luxembourg\n5. 6. Netherlands\n5. 7. F\u00e9d\u00e9ral Republic of Germany\n5. 8. United Kingdom\n5. 9. Greece\n\n5. 10. Italy\n5. 11. Spain\n5. 12. Portugal\n\n6. CURRENT REGULATORY PROBLEMS\n\n\f3\n\n6. 1. Sea transport\n6. 2. Inland transport\n6. 3. Diff\u00e9rences in classification\n\n6. 4. Diff\u00e9rences in labelling and packaging\n6. 5. Diff\u00e9rences in hazard action codes\n6. 6. Diff\u00e9rences in s\u00e9gr\u00e9gation requirements\n6. 7. Sp\u00e9cifie problems for waste\n\n7. CURRENT INTERNATIONAL INITIATIVES\n\n7. 1. Sea transport\n7. 2. Inland transport\n7. 3. Radioactive materials\n\n7. 4. Hazardous wastes\n\n8. CONCLUSIONS AND RECOMMENDATIONS\n\n8. 1. Sea transport\n8. 2. Inland transport\n8. 3. Harmonisation of classification and labelling\n\nANNEXES\n\nI. EUROPEAN PARLIAMENT RESOLUTION ON THE ENVIRONMENT AND IN\n\nPARTICULAR THE ACCIDENT INVOLVING THE MONT LOUIS\n\nII. EUROPEAN PARLIAMENT RESOLUTION ON ENVIRONMENTAL ISSUES OF\n\nCURRENT RELEVANCE\n\n- TRANSPORT OF RADIOACTIVE SUBSTANCES ,\n\nDIOXIN RESIDUES IN WASTE INCINERATION PLANTS , FORMALDEHYDE\n\nIII. VIEWPOINT OF SPECIAL CEE PERMANENT WORKING PARTY ON THE\n\nl\n\nI\n\nTRANSPORT OF RADIOACTIVE MATERIALS\n\nCONVERSION BETWEEN CLASSIFICATION SYSTEMS\n\nDANGER LABELS - DIRECTIVE 67 / 548 / EEC\n\nADR DANGER LABELS\n\nIV. V. VI. VII. IMDG DANGER LABELS\n\n\f- 4 -\n\nI. INTRODUCTION\n\nThe European Parliament in an emergency debate on 13 September 1984\nadopted two resolutions on the environment and in particular the\naccident involving the Mont Louis. The resolutions , which are presented in annexes I and II to this\nreport , request the Commission and the Member States to take certain\nactions relating to the transport of dangerous and radioactive\nsubstances and waste. The Commission consequently convened two groups entrusted with the\nanalysis of the resolutions and with the drafting of\nrecommendations. An Interservice Group of the Commission has made an investigation\ninto the existing regulations at international and national level on\nthe transport of dangerous goods and wastes , in order to discover\nthe gaps and problems which could give rise to Commission proposals\nas asked for by the Parliament. In addition, the special CEC permanent working party for the\ntransport of radioactive materials was convened on 17 October 1984\nto examine the technical , radiological and regulatory aspects of\ntransporting uranium hexafluoride. \u2022 The inventory in the following four chapters of this report shows a\ncomplicated network of laws , conventions , regulations , agreements ,\ncodes and recommendations controlling the transport of dangerous\nmaterials in which national and international organisations\nsupported by highly qualified experts are constantly working on\namendments to improve safety. Chapters 6 and 7 describe current regulatory problems and gaps and\nthe ongoing initiatives in the international bodies to solve these\nproblems. The last part of the report ( chapter 8 ) sets out\nconclusions and recommendations for possible Community actions. The\n\n\f- 5 -\n\nCommunity actions recommended are intended to contribute to the\nrationalisation of the regulations governing the transport of\ndangerous goods by greater harmonisation of the requirements of\ninternational agreements and consistent implementation of these\nagreements at Community level. Such action will help to reduce the\nrisks to man and the environment resulting from the transport of\ndangerous materials and will assist the aim of completing the\n\n* internal Community market by 1992. The report is principally concerned with the regulatory aspects of\ntransporting dangerous materials and it does not address the legal\nquestion of liability and compensation for damage or injury\nresulting from accidents involving dangerous materials. Aspects of\nthis question has been considered by several other organisations\nincluding the IMO Legal Committee which made a proposal for a draft\nconvention in 1984, the International Institute for the Unification\nof Private Law ( UNIDROIT) , and OECD. The European Foundation for the\nImprovement of Living and Working Conditions has recently sponsored\na major study of the transport of non-nuclear dangerous goods and\nwastes , including the legal aspects , which is being studied by the\nCommission. 2. INTERNATIONAL CONVENTIONS AND AGREEMENTS - SEA TRANSPORT\n\nThere are a large number of international conventions and agreements\ngoverning the transport of goods by sea made under the auspices of\nthe United Nations (UN ), principally by the International Maritime\nOrganisation ( IMO ). The provisions, of these agreements affecting the\ntransport of dangerous goods are summarised in this section of the\nreport. The information on contracting Member States was correct at\nthe time of writing the report. 2. 1. INTERNATIONAL CONVENTIONS AND AGREEMENTS\n\nHS-Convention : Convention on the High Seas , 1958\nEntry into force : 1962 - number of contracting states : 56, EC\nMember States except France,' Italy, Ireland , Greece\n\n\f- 6 -\n\nThe convention deals with the rights and duties of states on the\nHigh Seas. The term \"High Seas\" means all parts of the sea that are\nnot included in the Territorial Sea or in the Internal Waters of a\n\nstate. There are only two r\u00e9gulations on the protection of the marine\nenvironment : Art. 24 requires every State to draw up r\u00e9gulations to\nprevent pollution of the seas by the discharge of oi l from ships ,\npipelines , etc. ; Art. 25 requires States to take action to prevent\npollution of the sea by radioactive wastes , or other radioactive or\nnoxious materials. Hazards for the marine environment caused by the transport of\ndangerous cargo other than oil are not dealt with. TS-Convention : Convention on the Territorial Sea and the Contiguous\nZone , 1958 ( not in force )\nThough the convention is not in force , it codifies the custom in\ninternational law in respect of the right of innocent passage. Subject to the provisions of the convention, ships of all states\nshall enjoy the right of innocent passage through the territorial\nsea. Passage is innocent as long as it is not prejudicial to the\npeace , good order or security of the coastal state. Foreign ships\nexercising the right of innocent passage shall comply with the laws\nand regulations enacted by the coastal state , in conformity, in\nparticular , with international laws and regulations relating to\ntransport and navigation. The coastal state may take the necessary\nsteps in its territorial sea to prevent passage which is not\ninnocent. Furthermore , the TS-Convention contains regulations on the\ndetermination of the base-line from which the territorial sea is\n\nestablished. LOS-Convention : United Nations Convention on the Law of the Sea ,\n1982\n\nConcluded in 1982 and signed at Montego Bay, Jamaica , April 1983. The Convention will corne into force 12 months after the deposit of\nthe 60th instrument of ratification or accession. - 7 -\n\nThe LOS-Convention deals with the entire International Law of the\nSea in 320 articles subdivided in 16 parts and in nine annexes. The\nprotection and preservation of the marine environment is settled in\ngreat detail in Part XII Art. 192-237. R\u00e9gulations from this part most important for shipping are :\nArticle 211 ( pollution from vessels )\nArticle 217 ( enforcement by flag States )\nArticle 218 ( enforcement by port States )\nArticle 219 ( measures relating to seaworthiness of vessels to avoid\n\npollution )\n\nArticle 220 ( enforcement by Coastal States ). According to Article 211 ( 1 ), states acting through the competent\ninternational organization or general diplomatic conference , shall\nestablish international rules and standards to prevent , reduce and\ncontrol pollution of the marine environment from vessels and promote\nthe adoption of routeing systems designed to minimize the threat of\naccidents which might cause pollution of the marine environment. Coastal states may, for their territorial sea , adopt laws and\nregulations for the prevention , reduction and control of marine\npollution from foreign vessels , including foreign vessels exercising\nthe right of innocent passage. But according to Article 19 ( 2 ) the\npassage is no longer regarded as peaceful if the foreign ship\nengages in any act of willful and serious pollution contrary to this\nconvention. Even outside the territorial sea , the coastal states ,\nfor the purpose of enforcement , may in respect of their Exclusive\nEconomic Zone , adopt laws and regulations for the prevention ,\nreduction and control of pollution conforming to and giving effect\nto generally accepted international rules and standards. International Convention for the Safety of Life at Sea ( SOLAS 74 /78 )\nThe Convention was elaborated within IMO in 1974 and the Protocol in\n1978; it entered into force in 80/81 and has been ratified by all\nmaritime EC Member States. Chapter VII deals exclusively with the carriage of dangerous goods. Regulation 1 of Chapter VII prohibits the carriage of dangerous\ngoods by sea except when they are carried in accordance with the\nprovisions of the SOLAS Convention and requires each Contracting\nGovernment to issue detailed instructions on safe packing and\nstorage of dangerous goods. Regulation 2 divides dangerous goods\ninto nine classes. Other regulations deal with the packing ,\nidentification, marking, labelling and placarding of dangerous\ngoods , the documents which are to be provided, storage requirements ,\nand the carriage of explosives on board passengers ships. IMO has\nrecommended that Chapter VII of SOLAS should be implemented by means\nof the IMDG Code ( section 2. 2. ). International Convention for the Pr\u00e9vention of Pollution from Ships\n\n( MARPOL 73 / 78 )\n\nThe Convention was elaborated within IMO in 1973 and the Protocol in\n1978; it entered into force in 1983 and has been ratified by all\nmaritime Member States except Ireland. Annex I of MARPOL deals with pollution by oil. Annex II to the Convention contains general requirements relating to\nthe prevention of pollution by noxious liquid substances carried by\nsea in bulk and is scheduled to enter into force in April 1987. Optional annex III contains general requirements relating to the\nprevention of pollution by harmful substances carried by sea in\npackaged form or in freight containers , portable tanks or road and\nrail tank wagons. This annex has been ratified by Denmark , France , Germany, Italy,\nGreece and the United Kingdom. To supplement the basic requirements\nof Annex III , contracting governments are required to issue detailed\n\n\f- 9 -\n\nrequi rements on packing , marking , LabelLing and placarding ,\ndocumentation , storage , quantity Limitations , exceptions and\nnotifications by the master or owner of the ship or his\nrepr\u00e9sentative of the intent to load or unload harmful substances. Protocol I deals with provisions concerning reports of incidents\ninvolving harmful substances. The revised Protocol as adopted on 5\nDecember 1985 should enter into force on 6 April 1987. It stipulates\nthe duty of the master of a ship involved in an incident which may\ncause a discharge of oil or noxious liquid substances carried in\nbulk or of harmful substances in packaged form, to make without\ndelay a report to the nearest coastal state. The revised Protocol\nwill cover the transport in packages of substances listed in the\nIMDG Code as marine pollutants. Convention on the International R\u00e9gulations for preventing\n\ncollisions at sea ( COLREG 72 )\nElaborated within IMO in 1972 and amended in 1981 ; entered into\nforce in 1977 ( amendments in 1983 ); ratified by all maritime EC\nMember States. The Convention contains sections dealing with steering and sailing ;\nlights , shapes of navigation marks and sound and light signals. There are also four annexes containing technical information about\nlights and marks and their positioning ; sound signal appliances ; and\na list of recognised international distress signals. Article 10\ndeals with the navigation of ships in IMO approved traffic\nseparation schemes. International Convention on Load Lines ( LL 66 )\n\nElaborated within IMO in 1966 and amended in 1971 , 1975 , 1979, 1983. Entered into force in 1968 and has been ratified by all maritime\nMember States. ( The amendments have not yet come into force ). 10 -\n\nobjective\n\nof the Convention is determination of\n\nThe main\nfreeboards : limitation on the draught to which a ship may be\nloaded. The technical annex contains several additional safety\nmeasures concerning doors , freeing ports , hatchways and other items. International Convention relating to intervention on the high seas\nin case of oi l pollution casualties ( Intervention 69 )\nElaborated within IMO in 1969; entered into force in 1975 and\nratified by all maritime Member States except Greece. This Convention affirms the right of a coastal State to take such\nmeasures on the high seas as may be necessary to prevent , mitigate\nor eliminate danger to its coastline or related interests from\npollution by oil or the threat thereof, following upon a maritime\ncasualty. The coastal State is , however, empowered to take only such\naction as is necessary, and after due consultations with appropriate\ninterests including, in particular, the flag State or States of the\nship or ships involved, the owners of the ships or cargoes in\nquestion and, where circumstances permit , independent experts\nappointed for this purpose. Protocol of 1973 : entered into force in 1983 and has been ratified\n\nby Belgium, Denmark , Italy, Netherlands , France , Germany and the\nUnited Kingdom. It extends the regime of the 1969 Intervention\nConvention to substances other than oil. International Convention on standards of training certification and\nwatchkeeping for seafarers ( STCW /78 )\nElaborated within IMO in 1978 and entered into force in 1984, has\nbeen ratified by all maritime Member States. Of importance are resolutions 11 and 13 of the International\nConf\u00e9rence on Training and Certification of Seafarers , 1978, which\ninvite IMO to consider provisions concerning the handling of\nhazardous or noxious dry Chemicals in bulk and the training of\n\n\f- 11\n\nofficers and ratings of ships carrying dangerous and hazardous\ncargoes other than in bulk. An IMO Resolution to this effect was\nadopted in 1983. Agreement for coop\u00e9ration in dealing with pollution of the North Sea\nby oi l and other harmful substances ( Bonn Agreement )\nThis agreement was signed by the coastal States of the North Sea and\nby the Community on 13 September 1983. It strengthens co-operation\nand mutual assistance in combating pollution by oil and other\ndangerous substances. Protocol to the Barcelona Convention concerning cooperation in\ncombating pollution of the Mediterranean Sea by oil and other\nharmful substances in cases of emergency\nThis Protocol , signed in Barcelona on 16 February 1976, was\nconcluded by the Community on 12 August 1981 , with France , Greece\nand Italy as Contracting Parties. It provides for the Parties to cooperate in drawing up emergency\nplans , promoting methods of controlling marine pollution by\nhydrocarbons , disseminating information on the organization of\nresources and on new methods to prevent and control pollution and\ndeveloping relevant research programmes. Convention on the protection of the marine environment of the Baltic\n\nSea Area ( Helsinki Convention )\n\nThis Convention was signed in 1974 by the coastal states of the\nBaltic Sea. Convention in 1977 , but it was opposed by a non-member state. An attempt was made by the Community to adhere to the\n\nThe Convention provides , inter alia , for the Contracting Parties to\ntake measures and co-operate in order to maintain a capability to\ncombat spillages of oil and other harmful substances on the sea. - 12 -\n\n2. 2. CODES AND RECOMMENDATIONS\n\nUnited Nations Recommendations\n\nThe United Nations Committee of Experts on the Transport of\nDangerous Goods has published detailed recommendations which cover ,\namongst other things , the classification of dangerous substances , a\nlist of the principal dangerous goods , general packing requirements ,\ntesting procedures , marking , labelling or placarding and shipping\ndocuments. These recommendations have been incorporated into many of\nthe international agreements on the transport of dangerous goods and\nthe UN number of the principle dangerous goods is widely used to\nidentify dangerous substances. The UN Recommendations are relevant\nto all modes of transport and they aim at presenting a basic scheme\nof provisions that will allow national and international regulations\ngoverning the various modes of transport to develop within it in a\nuniform fashion. International Maritime Dangerous Goods ( IMDG ) Code\nThe IMDG Code has been adopted by ail maritime EC Member States. The IMDG Code only applies to ships covered by the SOLAS Convention,\nbut IMO considers it highly desirable that its requirements should\nbe observed by all ships. The legal system of each country\ndetermines whether the Code becomes mandatory or is applied as a\nrecommendation. Application of the Code as a recommendation does not\ndetract in any way from the obligations imposed by the SOLAS\nConvention, but provides a greater flexibility in the method of\nobservance. The first part of the Code consists of a General Introduction,\ndescribing required marking, identification and consignment\nprocedures , labelling and placarding , documentation and packing of\ndangerous goods. The General Introduction includes sections\ncontaining special requirements for freight containers , portable\ntanks and road tank vehicles , storage and segregation , fire\nprevention and fire fighting. The final sections deal with the\ncarriage of dangerous goods on roll -on/roll -off ships , in limited\n\n\f- 13 -\n\nquantities , in shipborne barges on barge-carrying ships , the\nChemical stability of dangerous substances and requirements for\ntransport under controlled temp\u00e9ratures. The Code details nine classes of dangerous goods and Annex I to the\nGeneral Introduction gives packing recommendations and a glossary of\npackaging with illustrations. The General Index of the IMDG Code\nAll substances and articles which appear in the IMDG Code are listed\nin the General Index which gives the product 's UN number ; its\nEmergency Schedule number ( EmS. No. ); Medical First Aid Guide Table\nnumber ( MFAG Table No. ); and the IMDG Code-Page number of the\nindividual schedule. By looking up the substance or article in the\nGeneral Index it is a simple matter to ascertain the appropriate\nEmergency Schedules or Medical First Aid Guide Table. These are contained in the IMO '\n\nEmergency procedures for Ships Carrying Dangerous Goods ( Emergency\nSchedules - EmS ). IMO has prepared group emergency schedules for ail substances and\narticles covered by the IMDG Code. Emergency Procedures for Ships Carrying Dangerous Goods , a\nsuppl\u00e9ment to the IMD6 Code. These procedures were published in 1981 and contain information\ndesigned to protect the ship as well as those on board. The Emergency Schedules divide the various substances and articles\ncontained in each IMDG Code class into groups and advise on any\nspecial emergency equipment which should be carried ; they also\ninclude the emergency procedures which should be followed and the\nemergency action to be taken in case of spillage or fire. a\n\nThe Code of Safe Practice for Solid Bulk Cargoes ( BC Code )\nThe BC Code was adopted in 1965 and has been revised four times\nsince ; it is applied by Belgium, Denmark , Germany, Ireland,\nNetherlands and the United Kingdom. 14 -\n\nThe primary aim of the Code is to promote safe stowage and shipment\nby :\n\n- highlighting the dangers associated with the shipment of certain\n\ntypes of bulk cargoes ;\n\n- giving guidance on the procedures to be adopted when the shipment\n\nof such bulk is contemplated ;\n\n- listing typical materials currently shipped in bulk / together with\n\nadvice on their properties and handling ; and\n\n- describing test procedures to be employed to d\u00e9termine various\n\ncharacteristics of the bulk cargo materials. *\n\nThe practices contained in the BC Code are intended as\nrecommendations to governments / ship operators and masters / and\ninclude internationally accepted methods of dealing with the hazards\nwhich may be encountered when carrying a cargo in bulk. The BC Code deals with three basic types of cargo :\n- those cargoes which may liquify ( Appendix A);\n- materials possessing Chemical hazards ( Appendix B ); and\n- other materials not falling within these two categories ( Appendix\n\nC ). International Code for the Construction ahd Equipment of Ships\nCarrying Dangerous Chemicals in Bulk ( IBC Code )\nThis Code will apply to chemical tankers constructed on or after the\nentry into force of the 1983 Amendments to the 1974 SOLAS\nConvention/ which has been set for. 1 July 1986. Chemical tankers\nconstructed before 1 July 1986 should comply with the requirements\nof the Code for the Construction and Equipment of Ships Carrying\nDangerous Chemicals in Bulk / resolution A. 212(VII )\nappropriate and as amended. ( BCH Code )/ as. The BCH Code applies to existing bulk chemical carriers and will\nbecome mandatory upon the entry into force of Annex II to MARPOL\n73 / 78 / presently scheduled for April 1987. This code has been\n\n\f- 15 -\n\nincorporated in the Belgian , Dutch and Italian legislation , and used\non a voluntary basis by Germany , Denmark , the United Kingdom and\n\nFrance. The IBC Code is a companion document to the BCH Code - the purpose\nof each of these Codes is to provide an international standard for\nthe safe transport by sea in bulk of liquid dangerous chemicals by\nprescribing the design and construction standards of ships\nregardless of tonnage involved in such carriage and the equipment\nthey should carry so as to minimize the risk to the ship , its crew\nand to the environment , having regard to the nature of the products\n\ninvolved. The Codes primarily deal with ship design and equipment. Other important facets of the safe transport of the products , such\nas training , operation , traffic control and handling in port , are\nbeing or will be examined further by IMO. International Code for the Construction and Equipment of Ships\nCarrying Liquefied Gases in Bulk ( IGC Code )\nThis Code will apply to gas carriers constructed on or after the\nentry into force of the 1983 Amendments to the 1974 SOLAS\nConvention , which has been set for 1 July 1986. Gas carriers\nconstructed before this should comply with the requirements of the\nCode for the Construction and Equipment of Ships Carrying Liquefied\nGases in Bulk , resolution A. 328(IX ) or the Code for Existing Ships\nCarrying Liquefied Gases in Bulk , resolution A. 329CIX ), as\nappropriate and as amended. The Code has been in force since 1971 ; Resolution A. 328(IX ) has been\nimplemented by Belgium and the Netherlands , and used on voluntary\nbasis by Germany , Denmark , France and the United Kingdom. A. 329(IX )\nis only used on a voluntary basis by France , Germany, Netherlands\nand the United Kingdom ,,\n\n\u00e0\n\n\f- 16 -\n\n2. 3. EC INSTRUMENTS\n\n1\n\nCouncil Recommendation of 26 June 1978 on the ratification of\nconventions on safety in shipping\nRecommends that Member States which have not already done so should\nsign and ratify the international conventions concerning the safety\nof maritime transport , in particular SOLAS , MARPOL, ILO Convention\nN\u00b0 147 concerning minimum standards in merchant ships, and the\nprotocols to these conventions. ( 78 / 584 / EEC )\n\nCouncil Directive of 21 December 1978 concerning minimum\nrequirements for certain tankers entering or leaving Community\nports2 (79/116/ EEC)\nThis directive requires Member States to take all necessary and\nappropriate measures to ensure that oil , gas and chemical tankers of\n1600 grt and over - whether fully or partly laden - and including\nthose empty but not yet degassed or purged of hazardous residues ,\nentering or leaving the seaports of their territory shall be\nrequired to comply with certain minimum requirements on safety of\nnavigation. Council Directive of 21 December 1978 concerning pilotage of vessels\nby deep-sea pilots in the North Sea and English Channel^\n( 79 / 115 / EEC )\n\nThis directive prescribes that vessels wishing to use the services\nof pilots in the North Sea and the English Channel can call on\nadequately qualified deep-sea pilots and promotes the employment of\nsuch pilots in vessels flying the flags of Member States. 0J N\u00b0 L 194 of 19. 7. 1978\n\nOJ N\u00b0 L 33 of 8. 2. 1979\n\n0J N\u00b0 L 33 of 8. 2. 1979\n\n<\n\n\f- 17 -\n\nCouncil Decision of 13 December 1982 , instituting a research\nprogramme know as COST 301 4 (82/887/EEC)\nThe main objective of COST 301 is to consider the need for and, if\nappropriate , to propose means to improve the safety of navigation in\nEuropean waters through an integrated network of shore-based\ncentres. Services or VTS ) would be , through better organisation and\nmanagement of traffic flow , to reduce risks of collision, stranding\nand ramming , and therefore enhance safety at sea and prevent\npollution of seas and Coastal areas. relevant objectives contained in the final d\u00e9claration of the\nInternational Conf\u00e9rence on the Protection of the North Sea ( 1984 )\n\nThe purpose of these centres , Cknow as Vessel Traffic\n\nIn the Commisson's view the\n\nshould be taken into account in this context and in particular the\ndevelopment and introduction of a System of notification for\nsp\u00e9cifie ships categories should be examined. Finland , Sweden ,\nNorway and Spain joined the project in 1983 by signing an agreement\nof cooperation. The results and s conclusion of the project will be made available to\nnational administrations , international organisations ( IMO, IALA,\nEMPA , etc. ) and maritime users in April 1987. Council Resolution of 26 June 1978 setting up an action programme of\nthe European Communities on the control and reduction of pollution\ncaused by hydrocarbons discharged at sea 3\nThis programme gave a mandate to the Commission to undertake studies\nand to make proposals for action in various fields such as :\nconsultation , contingency planning , the impact of hydrocarbons on\nmarine flora and fauna , etc. 4 0J N\u00b0 L 378 of 31. 12. 1982\n\n5 0J N\u00b0 C 162 of 8. 7. 1978\n\n\f- 18 -\n\nCouncil Decision of 6 March 1986 establishing a Community\nInformation System for the control and reduction of pollution caused\nby the spi liage of hydrocarbons and other harmful substances at sea^\n( 86 / 85 / EEC )\nThis decision replaces the Council decision of 3 December 1981 ,\nwhich established the \" Hydrocarbon\" Information System, and provides\nfor its extension to other harmful substances. The main purpose of the Information System is to make available to\nthe competent authorities of the Member States the data required for\nthe control and reduction of pollution caused by the spillage of\nhydrocarbons and other harmful substances at sea in large\nquantities. 2. 4. OTHER INSTRUMENTS. Port State Control. A Memorandum of Understanding laying down\ncertain rules for the control of ships in European ports was signed\nin January 1982 by the maritime authorities of 14 European States\n( EEC ( except Luxembourg ), Norway, Sweden , Spain , Portugal , Finland )\nIt\nin order to eliminate sub-standard ships from European waters. came into effect on 1 July 1982. The authorities will maintain an effective system of Port State\nControl with a view to ensuring that foreign ships visiting their\nports comply with the standards laid down in the relevant\ninternational Conventions ( such as SOLAS and MARPOL etc. ). In selecting ships for inspection, the authorities will pay sp\u00e9cial\nattention to ships which may pr\u00e9sent a sp\u00e9cial hazard, for instance\noil tankers and gas and Chemical carriers. 6 OJ N\u00b0 L 77 of 22. 3. 1986\n\n\f19 -\n\n2. 5. SHORT-SEA CROSSINGS\n\nBaltic agreement\nThe Baltic agreement ( Memorandum of Understanding for the transport\nof dangerous goods in Roll-on Roll-off ferries on the Baltic )\ncontains special supplementary rules for road transport concerning\nsegregation of different goods and stowage in vehicles. Vehicles which comply with the ADR (paragraph 3. 1. ) agreement and\nthe Baltic agreement are exempt from IMO rules during a short-sea\ncrossing in the Baltic. The Members of the Baltic agreement are Denmark / the Federal\nRepublic of Germany/ Norway/ Sweden and Finland. Sea crossings to the U. K. The diff\u00e9rences between sea and land r\u00e9gulations for the transport\nof dangerous goods are causing difficult\u00e9s for international\ntransport to the United Kingdom. The joint meeting of ADR / RID ( paragraph 3. 1. and 3. 2 ) has tried for\nmany years to set up Special Appendices for short-sea crossing on\nthe same basis as the Baltic Agreement but the IMO considers that\nonly very short-sea crossing or sheltered areas like the Baltic\ndeserve to be exempted from the sea regulations. Discussions about\nthe contents of these Special Appendices to ADR and RID are taking\nplace in IMO. Until agreement has been reached about these Special Appendices /\nroad transport has to meet the IMO rules when crossing to the U. K. Railway transport to the U. K. is governed by more flexible rules\nthan those of IMO. This is a temporary solution which was necessary because of a change\nin the legal status of the international railway convention in the\n\nThese are set out in an operational manual. U. K. Mediterranean Sea\n\nThere is no specific international regulation for short-sea\ncrossings in the Mediterranean and IMO rules are applied to\n\ninternational trade. f\n\n\f- 20 -\n\n2. 6. TRANSPORT OF WASTE MATERIALS\n\nThe disposal of waste ( including nuclear waste ) at sea is governed\nby international and regional conventions, including the London\nDumping Convention of 1972 and the Helsinki , Oslo and Barcelona\nRegional Conventions. These Conventions are not specifically\nconcerned with transport of waste materials , but they put\nrestrictions on the substances which may be disposed of at sea. IMO resolution A 582 concerning guidelines for the construction and\nequipment of ships carrying hazardous liquid wastes in bulk for the\npurpose of dumping at sea was adopted on 20 November 1985. These guidelines cover various fields such as :\n\n- ship arrangements ,\n- cargo containment ,\n- cargo transfer ,\n- personnel protection ,\n- op\u00e9r\u00e2t ional requi rements. They are designed for use not only on new ships , but , as far as\nreasonable and practicable , existing ones as well. Member Governments are recommended to put them into effect as soon\nas possible. 3u INTERNATIONAL CONVENTIONS AND AGREEMENTS - INLAND AND AIR\n\nTRANSPORT. The agreements and conventions governing the international transport\nof dangerous goods by road, rail , inland waterway and air transport\nare described in this section of the report. 21 -\n\n3. 1. ROAD TRANSPORT\n\nThe European Agreement concerning International Carriage of\nDangerous Goods by Road ( ADR ) is an international agreement\nadministered through the Inland Transport Committee of the United\nNations Economic Commission for Europe ( ECE ). The ADR consists of three sections :\n\n1. the agreement and protocol of signature ;\n2. Annex A. A list of substances allowed to be carried and the\n\nrequirements for labelling and packaging of the materials ;\n\n3. Annex B. Operational requirements for carriage by road,\nrequirements for the transport vehicles and general\nrequirements for drivers and their training. The purpose of the ADR agreement is to ensure that dangerous goods\nand wastes travelling through more than one country by road are\ncarried under suitable conditions. If they meet the regulations and\nprescriptions of the ADR they are exempt from the national\nlegislation in force of those countries. According to marginals 2010\nand 10602 of the ADR , the Contracting Parties may agree directly\namong themselves to authorise bilateral derogations from the\nprovisions of the ADR in order to adapt them to technological and\nThese\nindustrial developments before they are officially amended. derogations have to be notified to the competent U. N. services. At this moment there are about 1400 of these bilateral agreements\nregistered. There are no specific provisions in ADR for enforcement , other than\nthat a vehicle not complying with the requirements of the ADR has to\nmeet the national requirements and regulations. As of the date of writing this report the ADR agreement had not yet\nbeen adopted by two Member States : Ireland and Greece. - 22 -\n\n3. 2. RAIL TRANSPORT\n\nThe international regulations concerning the carriage of dangerous\ngoods by rail ( RID ) are included in Annex 1 of the International\nConvention concerning the Carriage of Goods by Rail ( CIM)\nestablished in 1890. The convention is administered by the Central\nOffice of International rail Transport ( OCTI ) in Berne , Switzerland. OCTI is not associated with the United Nations , but RID and ADR\nbodies conduct joint meetings frequently, to maintain harmony\nbetween the conventions governing road and rail transport of\ndangerous goods in Europe. As the RID\napplication are very similar. labelling and packaging of the dangerous materials which are\nclassified on the same way as in the ADR. are given for the containers , the train units and the method of\ndespatch. nations of Europe and several nations outside Europe. was in fact a model for the ADR , the structure and\nRID too, gives prescriptions for\n\nRID, as a part of the CIM, has been adopted by all\n\nMoreover prescriptions\n\n3. 3. INLAND WATERWAY TRANSPORT\n\nWhilst in theory inland waterway transport is regulated by a UN / ECE\nagreement referred to as ADN, the most important international\nagreement existing in practice for the transport of dangerous goods\nby these waterways is the ADNR ( Accord Europeen relatif aux\ntransports des marchandises dangereuses par voie de navigation sur\nle Rhin) administered by the Central Rhine Commission in Strasbourg. ADNR consists of three parts :\n\n1. the agreement and its rules ;\n2. Annex A. Definitions and classification of dangerous goods\n\nallowed to be transported;\n3. Annex B. Prescription for :\n\n- procedure of transport\n- construction of vessel\n\n- crew\n\n\f- 23 -\n\n- loading and unloading\n- sp\u00e9cial traffic rules. ADNR is applied by all the states with waterways connected to the\nRhine network , with the exception of the Danube. adoption in national legislation. To obtain a navigation licence for the Rhine , a master must meet the\nrequirements of the Central Rhine Commission concerning knowledge of\nhandling dangerous goods. The ADNR is revised from time to time in\norder to harmonize its prescriptions with the rules of other modes\nof transport. It is enforced by\n\n3. 4. AIR TRANSPORT\n\nThe part of transport by air in the total transport of dangerous\nproducts is relatively limited, although an important increase has\ntaken place in recent years. A set of standards for the safe transport of dangerous goods by air\nhas been established in Annex XVIII to the Convention on\n\nThe\n\nInternational Civil Aviation ( the Chicago Convention ). Dangerous Goods Panel ( DGP ), one of the subsidiary bodies of ICAO,\nis responsible for the elaboration and updating of these standards. This Annex is supported by a detailed body of \" Technical\nInstructions , for the safe transport of Dangerous Goods by Air \",\nwhich are incorporated by reference into the Annex and provide the\nnecessary details concerning classification , packaging , marking ,\nlabelling and handling aboard aircraft of dangerous goods. Both the Annex and Technical Instructions are based upon the\nrecommendations of the UN Committee of Experts on the Transport of\nDangerous Goods and the International Atomic Energy Agency ( IAEA ),\nthereby providing intermodal harmonisation. The ICAO adopted Annex XVIII and the Technical Instructions in June\n1981 and they are now implemented in international and national air\ntransport as all Member countries , including the E. C. Member States ,\nagreed to incorporate the Annex into their legislation from 1\nJanuary 1984 on. - 24 -\n\nAs to the impl\u00e9mentation by E. C. Hember States , only four countries\n( Belgium , Italy , the Netherlands and United Kingdom ) h\u00e2ve\ncommunicated some ( small ) diff\u00e9rences between their national\nr\u00e9gulations and the international standards and recommended\npractices of Annex XVIII. As provided for in the \" Technical Instructions \", paragraph 10. 1 of\nAnnex XVIII requires that dangerous goods training programmes be\nestablished. each developed for the training of a particular category of\npersonnel involved in the transport of dangerous goods by air. books are :\n\nWith this in view ICAO produced a series of six books ,\n\nThe\n\n1. Shippers and packers\n2. Cargo agents\n3. Operators' cargo acceptance staff\nA. Load planners and cargo handlers\n5. Flight crew\n6. Passenger handling staff and flight attendants. These training programmes , which are approved by the national\nauthorities , have been produced to help achieve a uniform level of\ntraining in all aspects of handling and transporting dangerous goods\nby air. For the direct application of the existing rules the International\nAir Transport Association ( IATA ) issues precise guidelines in its\n\" Restricted Articles regulations \" which are updated regularly. IATA airlines levy a not insignificant surcharge for the transport\nof dangerous goods. 3. 5. TRANSPORT OF WASTE MATERIALS\n\nWaste is only partially covered in the framework of international\nconventions and agreements on the transport of dangerous goods. The\nclassification of mixtures of waste materials presents particular\nproblems. The United Nations classification system for dangerous\ngoods can be used for a wide variety of wastes , but does not cover\nall types. A classification system based on grouping the most\n\n\f- 25 -\n\ndangerous components in a mixture has been developed by a joint\nADR / RID expert group and is likely to be adopted by the parent\nbodies ( ECE and OCTI ) in the near future. 0\n\nAt Community level, directive 78/319/ EEC^ on toxic and dangerous\nwastes specifies certain general controls on the transport of\ndangerous wastes and includes a list of toxic or dangerous\nsubstances requiring priority consid\u00e9ration. Directive 84 / 631 / EEC\non the transf rontier shipment of hazardous wastes sp\u00e9cifi\u00e9s that\ntransport of hazardous wastes should be controlled by means of a\nuniform consignment note system and allows the Member State of\ndestination of the waste to raise objection to the shipment. The\nDirective sets out general rules concerning the packaging , labelling\nand transport of wastes. Appropriate conditions of transport are\ndeemed to be met when a Member State applies the provisions\napplicable under the international transport conventions to which it\nis a party, in so far as these conventions cover hazardous waste. An amendment to Directive 84 / 631 agreed in 1986\nextends the requirement to obtain the agreement of the destination\ncountry to non-Member States. ( 86/ 279/ EEC )\n\n9\n\n' OJ N\u00b0 L 84 / 43 of 31. 3. 1978\n\n8 OJ N\u00b0 L 326/31 of 13. 12. 1984\n\n9 OJ N\u00b0 L 181 /13 of 4. 7. 1986\n\n\f- 26 -\n\n4. TRANSPORT OF RADIOACTIVE MATERIALS AND WASTES. 4-1. THE INTERNATIONAL ATOMIC ENERGY AGENCY REGULATIONS FOR THE SAFE\n\nTRANSPORT OF RADIOACTIVE MATERIALS\n\nAs early as 1959, the United Nations Economic and Social Council\n( ECOSOC ) adopted a resolution entrusting the International Atomic\nEnergy Agency ( IAEA ) with the task of establishing recommendations\nfor the safe transport of radioactive materials. This responsibility falls within the purview of the Agency 's\nstatutory functions which , among other things , consist of ensuring\nthe safety of peaceful nuclear activities carried out by Member\nStates with the Agency 's assistance. The IAEA responded to this resolution by convening panels gathering\nexperts from Member States and from the international transport\norganisations to study the technical and administrative aspects of\nAs a result of this study, the first\nsuch international transport. edition of the IAEA \" Regulations for the Safe Transport of\nRadioactive Materials \" ( Safety Series n\u00b06) was published in 1961 as\na component of the Agency 's Safety Standards. These Regulations were revised and updated in 1964 , 1967, 1973 , and\ncomprehensive review was carried out in 1985 , to reflect experience\nin their application , new trends in radiation protection and changes\nin methods and technology. The safety r\u00e9gulations are based on two main principles :\n\n- the required safety levels are achieved by appropriate\n\npackage design , without consid\u00e9ration of the safety of the\ntransport mode ;\n\n- the potential hazard defines the required package safety\n\nlevel. Safety series n\u00b0 6 contains the following basic requirements :\n\n- packaging and package design requirements\n- items exempt from specified prescriptions ( low specific\nactivity material , low level solid radioactive material )\n\n- activity limits for packages\n- Controls for transport and storage in transit\n\n\f- 27 -\n\n- sp\u00e9cifie provisions for fissile materials\n- test and inspection procedures for packaging\n- administrative requi rements. 4. 2. IMPLEMENTATION OF IAEA REGULATIONS\n\nThe IAEA Regulations have been adopted by the United Nations as its\nrecommendations for the safe transport of radioactive materials. They have been incorporated into the national regulations of\nnumerous countries where nuclear legislation was enacted in\nconjuction with the development of nuclear energy programmes for\npeaceful purposes. the transport of dangerous goods have also adopted the IAEA\nRegulations for application to the transport of radioactive\nmaterials , including radioactive wastes. All international organizations concerned with\n\nTransport by rail - RID. The dangerous goods covered by RID are classified in accordance with\nthe UN System and the IAEA transport r\u00e9gulations h\u00e2ve been adopted\nas the requi rements for radioactive materials. The current RID is in conformity with the 1973 revised edition of\nthe IAEA transport regulations for the safe transport of radioactive\nmaterials. The RID also includes a table of minimum distances by which packages\ncontaining radioactive materials must be separated from packages\ncontaining photographic films. Transport by road - ADR\nThe IAEA transport regulations have been adopted as the requirements\nThe 1978 version of the\nfor the transport of radioactive materials. technical requirements set out in Annexes A and B to the ADR are in\nconformity with the 1973 revised edition of the IAEA transport\nregulations. - 28 -\n\n\u0447\n\nTransport by Inland Waterways ~ ADNR\nWithin the framework of this Convention, the Rhine States have\ndeveloped provisions on the transport of dangerous goods , among\nwhich are those concerning the transport of radioactive materials. Since traffic. in these goods has hitherto been insignificant , the\nrelevant provisions in the ADNR are still based on the 1967 edition\nof the IAEA regulations. It is likely that in the next few years changes will take place that\nwill necessitate the updating of the ADNR provisions. Transport by sea - IMO\n\nTransport by sea is regulated in most European Countries by the\nInternational Maritime Dangerous Goods Code CIMDG Code ). Dangerous goods are classified in the IMDG Code in accordance with\nthe UN system and the IAEA transport regulations have been adopted\nas the requirements for radioactive materials. The current version\nof the Code is in conformity with the 1973 revised edition of the\nIAEA regulations. The IMDG Code includes tables specifying the minimum permissble\nsegregation distances of packages of radioactive materials from\nliving accommodation or regularly-occupied working areas on ships\nand from packages containing undeveloped photographic film. Transport by air - ICAO , IATA\n\nThe current edition of the IATA Restricted Articles Regulations\n( RAR ) includes two sets of regulations for the transport of\nradioactive materials. The first is in conformity with the 1973\nrevised edition of the IAEA transport regulations. The second in in\nconformity with the 1967 edition of the regulations. Tables are included which specify the minimum permissible distances\nfrom the surfaces of the packages to the inner floors of passenger\ncabins and flight decks and to the surfaces of packages containing\nundeveloped photographic film. - 29 -\n\nTransport by post - UPU\n\nUnder the existing convention , radioactive materials in which the\nactivity does not exceed 10 X of the upper limits for items exempt\nfrom the packaging , labelling and stowage requirements of the IAEA\ntransport regulations may be transported internationally by post\nprovided certain relatively simple additional procedures are\nfollowed. In practice , all member countries of the European\nCommunity, except the United Kingdom and France prohibit postal\nshipments. 5. NATIONAL LEGISLATION ON THE TRANSPORT OF OANGEROUS GOODS\n\nIt was therefore\n\nA complete description of all existing regulations at national and\nregional level in the Member States of the Community would be very\nlengthy and would rapidly become out of date. decided to make a broad comparison between the regulations in force\nin each Member State at the time of writing this report , and the\ninternational agreements , concentrating on the stringency of the\nregulations and differences in classification , packaging and\nlabelling requirements. International transport by sea and air is entirely governed by the\ninternational agreements and this analysis of national regulations\nhas therefore been restricted to transport by road, rail and inland\n\nwaterway. 5. 1. DENMARK\n\nRoad\n\nDenmark has been a party to the ADR agreement since 1 August 1981\nand the aim is to issue a body of national rules very similar to the\n\nADR agreement. - 30\n\nFor classes 4 ( inflammable solids ) and 6. 2. (oxidizing\n( organic peroxides ) will be in line with ADR in\n\nTechnical specifications similar to the ADR have been adopted for\nclass 2 ( compressed gases ), class 6. 1. (poisonous substances ) and\nclass 8 ( corrosive substances ). The r\u00e9gulations for classes 3 ( inflammable liquids ), 5. 1. substances ) and 5. 2. 1986. substances and substances liable to cause infection ) there are no\nr\u00e9gulations for national transport in Denmark. class 1\nr\u00e9gulations. Labels according to EEC directive 67/ 548 / EEC ( paragraph 6. 3. ) are\npermitted for national transport of dangerous goods in Denmark. (explosives ) are very old and different from the ADR\n\nThe r\u00e9gulations for\n\n( r\u00e9pugnant\n\nRai I\n\nDenmark applies the RID regulations for the national transport of\ndangerous goods by rail and in addition prescribes separation\nof\nwagons carrying dangerous goods : any wagon carrying dangerous goods\nmust be between wagons not carrying dangerous goods. Inland Waterway\nThere are no navigable inland waterways , but the Baltic agreement\nhas great importance in Denmark. 5. 2. BELGIUH\n\nRoad\n\nFor 95% of the goods these\n\nSince 15 March 1976 Belgium has had national r\u00e9gulations on the\ntransport of dangerous goods. r\u00e9gulations are the same as the ADR rules. For the other 5% the national rules are stricter than ADR for goods\nof class 3 ( inflammable liquids ), class 1\n( explosives ) and class 5. 1\n( goods which contribute to combustion ). The national rules are less strict than ADR for gas-oil. The sp\u00e9cial driver training according to ADR rules is controlled by\nthe government and also applied for national transport. - 31\n\nRai l\n\nThe RID agreement has been extended in Belgium to cover national\n\ntransport. Inland Waterway\nThe ADNR rules apply to 90% of the national inland waterway\ntransport of dangerous goods. Since 1948 the other 10% is covered by national regulations which\nare less severe but apply mainly to small harbour tenders. 5. 3. FRANCE\n\nRoad\n\nThe French legislation concerning the transport of dangerous goods\nis laid down in the regulation of 15 April 1945 as amended which is\nvery extensive. As rules of this kind have been developed in France earlier than in\nother nations , the international agreements have not been the basis\nfor this legislation. The main diff\u00e9rences from the ADR are :\n\n- the classes are different from the ADR and have been further\n\ndivided into categories and groups with their own\nprescriptions ;\n\n- the labels are slightly different and they must be applied to\nall vehicles carrying dangerous goods , including packaged\ngoods ;\n\n- the form of the transport document is more strictly defined. To meet a decision of 30 July, 1975 , vehicles transporting dangerous\ngoods with a weight above 10 tons must have a speed governor set at\n80 km / h. concerning days on which it is prohibited to drive trucks with\ndangerous goods. extended field than in the ADR regulations. There are routeing prescriptions and prescriptions\n\nThe special driver training is applied to a more\n\n\f- 32 -\n\nRai l\nRID is applied to national transport by rail in France. Inland waterway\nFor inland navigation the ADNR regulations are applied or a domestic\nset of regulations which are , according to the French authorities ,\nvery similar to the ADNR regulations. 5. 4. IRELAND\n\nRoad\n\nIreland has not yet acceded to the ADR agreement. The reason given is that the inland transport of dangerous goods is\nnot of a very great importance and the entire ADR agreement must be\ntranslated into Irish in order to be approved by the Irish\nParliament. However Ireland 's domestic legislation ( Dangerous\nSubstances Regulations 1980 ) is very similar to the ADR agreement\nand refers to ADR in all the main points. Differences with ADR regulations are :\n\n- some general rules concerning the routeing of dangerous\n\ngoods ;\n\n- packaging and labelling in accordance with the Community\n\nDirective 67 / 548/ EEC ( paragraph 6. 3. ) or other international\nor national r\u00e9gulations is deemed to comply with the Irish\nr\u00e9gulations. The Irish R\u00e9gulations contain general rules for the sp\u00e9cial training\nof drivers. 5. 5. LUXEMBOURG\n\nRoad\n\nADR is applied to national transport. 33 -\n\nRai l\n\nThe RID convention is apptied to national transport. Inland Waterway\nThe ADNR agreement is applied to transport of dangerous goods along\nthe Moselle. 5. 6. THE NETHERLANDS\n\nRoad\n\nNational transport of dangerous goods by road has to meet the\nr\u00e9gulations of the V. L. G. ( Vervoer Over Land van Gevaarlijke\nStoffen ) which is in fact the same as ADR plus :\n- rules for routeing of dangerous goods\n- extensive professional training requirements\n- sp\u00e9cial conditions for explosive goods ( classD\n- more extensive information requirements. The Netherlands has sp\u00e9cial driver training for road tankers which\nis strict and applies also to national transport. Rai l\n\nNational transport of dangerous goods by train has to meet the\nregulations of the VSG ( Vervoer per Spoor van Gevaarlijke Stoffen )\nwhich is the same as the RID plus special requirements for chlorine\ntrains. Inland Waterway\nNational transport of dangerous goods by inland navigation is\ngoverned by the VBG ( Vervoer per Binnenvaart van Gevaarlijke\nStoffen ) which is the same as ADNR. The VLG, VSG and VBG are part of a general law on transport of\ndangerous goods. - 34 -\n\n5. 7. FEDERAL REPUBLIC OF GERMANY\n\nRoad\nThe r\u00e9gulations on the carriage of dangerous goods by road in the\nFRG are laid down in the Gefahrgutverordnung Strasse ( GGVS ). These regulations are very similar to the ADR. The differences mainly concern authorization for other dangerous\ngoods to be carried and additional types of packaging. The FRG has an official driver training scheme for road tankers\nwhich has resulted in a reduction in the number of offences against\n\nsafety rules. Rai I\n\nThe regulations on the carriage of dangerous goods by rail in the\nFRG are laid down in the Gefahrgutverodnung Eisenbahn ( GGVE ) which\nhas the same relation with the RID as the GGVS with the ADR. Inland Waterway\nADNR is applied for the carriage of dangerous substances on the\ninland Federal waterways with the exception of the Danube. For the Danube a separate set of r\u00e9gulations exists made under the\nauspices of the Danube Commission. 5. 8. U. K. Road\n\nThe existing UK legislation concerning the transport of dangerous\ngoods by road is very extensive and complicated, consisting of about\n34 sets of regulations. It is intended to introduce in the near future five sets of\n\nr\u00e9gulations which will enable a big part of the existing l\u00e9gislation\nto be revoked. The proposed r\u00e9gulations are :\na ) Classification , Packaging and Labelling R\u00e9gulations which will\n\ncontrol the packaging and the labelling for conveyance by road of\nail dangerous substances. - 35 -\n\nb ) Dangerous Substances in Harbour Areas R\u00e9gulations which ni II\n\ncover loading , unloading and storage of dangerous substances in\nports. c ) Dangerous Substances ( Conveyance by Road in Packages etc )\n\nRegulations which will cover the remaining operational aspects of\nroad conveyance of dangerous substances not covered by the Road\nTanker and Tank Container Regulations made in 1981 and the\nClassification / Packaging and Labelling Regulations listed above. d ) Explosives ( Conveyance by Road ) R\u00e9gulations which will control\n\nthe conveyance of explosive by road. e ) Classification and Labelling of Explosives R\u00e9gulations which will\n\ncontrol the labelling of explosive articles and substances. All these regulations will be made under the 1974 Health and Safety\nat Work Act and will be consistent / so far as possible/ with the\nRecommendations of the United Nations Committee of Experts on the\nTransport of Dangerous Goods. The programme is now well advanced. The UK uses the Hazchem~Hazard code for placarding. Rai I\n\nRID does not apply to domestic rail transport in the UK. Rail have their own detailed requirements which are contained in the\nBritish Rail list of Dangerous Goods and Conditions of Acceptance. These safety provisions cover labelling / inspection / container\nspecifications / marshalling of wagons and the actions to be taken in\nthe event of an accident. with RID , so far as possible ,\n\nBritish Rail 's provisions are consistent\n\nBritish\n\nv\n\nInland Waterway. The only legislative controls for dangerous goods on British\nWaterways Board waterways are bylaws prepared under the Petroleum\n( Consolidation ) Act 1928 for petroleum spirit and carbide of calcium\nand/ under the Explosives Act 1985 for explosives. Board have recently introduced contractual Terms and Conditions for\nthe transport of dangerous goods on their waterways. However/ the\n\n\f- 36 -\n\n5. 9. GREECE\n\nRoad\nGreece is not a party to the international ADR agreement. reason given is that the ADR agreement is still under study before\nit is submitted to the Parliament. on the transport of dangerous goods in Greece and there is no\nspecial training for drivers of vehicles transporting dangerous\ngoods. There is no national legislation\n\nThe\n\nRai I\nGreece is party to the international RID agreement. about the rules for national rail transport is not at present\n\nInformation\n\navailable. Inland navigation\nInland navigation in Greece in fact consists of short sea-crossings. It is very doubtful if the transport of dangerous goods within Greek\nterritorial waters meets any rules. 5. 10. ITALY\n\nRoad\n\nIn Italy a set of rules was laid down in August 1980 based on the\nADR classification and following 90% the ADR regulations. However\nsome derogations are possible and regulations for national transport\nare less tough than for international transport. There is a special driving licence for international drivers\ntransporting dangerous goods delivered by the \" Motorizzazione \", but\nno specific driving licence is required for internal transport of\ndangerous goods. Rai I\n\nThe RID r\u00e9gulations apply both to national and international\ntransport of dangerous goods by railway in Italy. - 37 -\n\nInland Waterways\nTransport on inland waterways is governed by the rules of the\nmerchant navy and the general rules for road transport of dangerous\nFor short-sea crossings that take less than two hours it is\ngoods. possible to meet less severe rules than in the IMDG-code. 5. 11. SPAIN\n\nSpain, as a new Member State of the Community, is following the ADR\nand RID regulations for the international transport of dangerous\ngoods. For domestic transport , the Spanish r\u00e9gulations are practically\ncopies of the international ones with minor amendments. As regards road transport , the T. P. C. ( Reglamento Nacional de\nTransportes de Mercancias Peligrosas por Carretera ) is applied and\nT. P. F. ( Reglamente Nacional de Transportes de Mercancias por\nFerrocarril ) for rail transport. 5. 12. PORTUGAL\n\nPortugal as- a new Member State applies the ADR and the RID\nr\u00e9gulations for international and national transport. 6. CURRENT REGULATORY PROBLEMS\n\nThe international conventions and agreements listed in the previous\nsections of this report cover most aspects of the transport of\ndangerous goods , but they have not yet been ratified by all\ncountries , including some Member States of the Community, and the\nprovisions of the agreements are not always effectively enforced. A\nnumber of current problems in the regulation and control of the\ntransport of dangerous goods and wastes are discussed in this\nsection of the report. 6. 1. SEA TRANSPORT\n\nThe European Commission only has observer status within IMO, which\nis the major international body in this field. The Commission is not\na full member of the 1982 Memorandum of Understanding on Port State\nControl , but is a non-voting member of the Port State Control\nCommittee , the supervising body for the Memorandum of Understanding. A more systematic and structured coordination of Member States'\npositions within these organisations would be helpful. There are\nseveral specific issues on which action is needed :\n\n- The various Codes applicable to the bulk carriage of dangerous\n\ngoods have not yet been incorporated into the legislation of all\nMember States. - Annex I and II of MARPOL 73 / 78 h\u00e2ve not been ratified by Ireland\n\nand Annex III has only been ratified by six Member States. - The IMOG Code does not deal with pollution of the marine\n\nenvironment by dangerous materials - an extension of the Code to\ninclude pollution is under consid\u00e9ration within IMO. A general reduction of the risk of accidents to vessels at sea would\nreduce the risk of marine pollution resulting-f rom accidents ,\nparticularly in busy areas. The supervision of traffic by Vessel\nTraffic Management Systems (VTS ) seeks this objective , and further\nprecautionary measures applicable specially to ships carrying\ndangerous goods could be introduced ( special crew training, advance\nnotification and position reporting ). When accidents do occur there is sometimes insufficient information\n\non the hazard involved and the action to be taken. VTS systems\nincluding advance notification and position reporting would assist\nin identifying and locating a potential hazard, and would help the\nemergency services to choose appropriate response measures. - 39 -\n\n6. 2. INLAND TRANSPORT\n\nInternational Transport\nThe ADR and RID Agreements are applied by most Member States of the\nCommunity, but the ADR Agreement has not yet been ratified by Greece\nand Ireland. Although the necessary regulations exist in most Member\nStates , it is not certain that the existing international agreements\nand conventions on the transport of dangerous goods are adequately\nenforced. ADR requires drivers of bulk tankers carrying liquid\ndangerous goods with a capacity of more than 3. 000 litres to hold a\nspecial licence. But this requirement does not apply to tankers of\nless than 3. 000 litres or to the transport of packaged goods. National Transport\nChapter 5 of this report clearly illustrates the major differences\nbetween Member States in the regulation of internal transport of\ndangerous goods. Some Member States have regulations closely based\non ADR and RID , but others have national regulations which differ\nfrom those for international transport. These differences can cause\nproblems for vehicles or loads making journeys with national and\ninternational stages , and for the packaging and labelling of goods\nmade for several markets. The objective of establishing the internal\nmarket by 1992 set out in the revised Treaty , suggests that attempts\nshould be made to resolve these problems to ensure the free movement\nwithin the Community of dangerous goods , subject to agreed controls. 6. 3 DIFFERENCES IN CLASSIFICATION\n\nTwo main systems are in existence for the classification of\ndangerous goods in transport :\n\na ) The older Systems used for rail , road and inland waterway\n\n( ADR , RID and ADNR )\n\nb ) The System used for sea and air ( IMDG and ICA0 - TI ). As is shown on the conversion list in Annex IV of this report the\nnumbering of the classes of ADR / RID and IMDG / ICA0 is almost the\nsame. However there are still differences in the classification of\n\nsubstances. - 40 -\n\nGoods of a restricted class may be\n\nGoods of a non-restricted class which are\n\nThe ADR / RIO and AONR systems contain restricted and non-restricted\nclasses of dangerous goods. accepted for carriage only if they are listed and then only under\nthe conditions specified. listed may be accepted only under the specified conditions. It is obvious that this system can give rise to difficulties for new\ngoods , or for wastes which are composed of more than one substance ,\nsince absence from the list can mean either that carriage is\nprohibited, because the substances belongs (or seems to belong ) to a\nrestricted class , or that acceptance is without conditions in a\nnon-restricted class. However , even this list , based on the UN\n\nIn the IMDG / ICAO system all goods or group of goods are mentioned or\nhave an \" entry\". Recommendations , is not sufficiently exhaustive as to ensure that\nany goods presenting a hazard and falling in the definitions of a\nparticular class will be included in that class. Moreover there are some goods that present more than one hazard , so\nthat this system of classification can also give problems. Harmoni zation\n\nEffective 1 May 1985 , the ADR and RID agreements have been modified\nin order to harmonize with the UN Recommendations which are the base\n\nof the IMDG Code and the ICAO Technical Instructions. The principal changes in ADR and RID are additional classifications\nin Classes 3 ( inflammable liquids ), 6. 1 ( toxic substances ) and 8\n( corrosive substances ). These three classes are now each-divided into three groups : very\ndangerous , dangerous and less dangerous according to the\nprescriptions of packaging for maritime transport. Moreover the classification of some goods which present two or more\nkinds of danger have been changed according to the UN\nRecommendations. The ADNR Regulations are also being revised to meet the UN\nRecommendations and this work is scheduled to be completed in 1987. - 41 -\n\nA remaining diff\u00e9rence with the U. N. Recommendations after the\nr\u00e9vision are the diff\u00e9rences in flash points. in the case of inflammable liquids. In ADR and RID these are subdivided according to flash points :\nunder 21\u00b0 C\n\nThis raises problems ,\n\n21\u00b0 C to 55\u00b0 C\n55\u00b0 C to 100\u00b0 C , no classification beyond that range. The United Nations subdivision is as follows :\n\nunder - 18\u00b0 C\n\n- 18\u00b0 C to 23\u00b0 C\n23\u00b0 C to 61\u00b0 C , no classification beyond that range. The changeover to the UN system of subdivision would cause problems ,\nbecause in Europe the ranges concerned are also applied in industry\nand for industrial safety. For example at present a liquid with flashpoint between 61\u00b0 and 100\u00b0\nC is a substance of class 3 in ADR / RID / ADNR but not a dangerous\n\nsubstance in the IMDG Code. substances placed on the\n\nand its amendments concerns\n\nEC Classification , packaging and labelling Directives\nThe classification system specified in Council Directive\n67/ 548 / EEC 1\nCommunity market and it differs significantly from the system\nrecommended by the UN for transport of dangerous goods. The\nnumerical criteria used to define the toxicity of groups of\nsubstances are different , and some of the classes in the Directives ,\nsuch as carcinogenic or mutagenic , are not used in transport\nlabelling. The same substance may therefore be classified and\nlabelled differently for transport and marketing purposes. 10 0J N\u00b0 L 196 of 16. 8. 1967\n\n\f- 42 -\n\n6. 4 DIFFERENCES IN LABELLING AND PACKAGING\n\nIf a dangerous substance is ctassified in\nlabel Ling requi rements will also be different. different Systems of pictograms are used which are generally\nsimilar , but not identica!. different ways , th\u00e8\nMoreover three\n\nThe Systems are :\n\n- labels according to EEC directive N\u00b0 67/ 548 / EEC (with a\n\nnumber of amendments ) concerning labelling and packaging of\ndangerous goods which are put on the market. Illustrated in\n\nAnnex V. - labels according the inland transport agreements ( ADR , RID\n\nand ADNR ). Illustrated in Annex VI. - labels according to the UN recommendations ( IMDG and\n\nICAO-IT ). Illustrated in Annex VII\n\nIn the case of single layer package ( eg drums ) it is likely that\nboth transport and supply labels will be needed. These differences are probably not sufficient to cause serious\ndifficulties in dealing with accidents, but they are of significance\nfor shippers and can cause problems at the sea-land interface. Different interpretations of the UN Recommendations for the testing\nof packaging can give rise to different functional tests and, as a\nresult , variations in the types of packaging approved in different\ncountries. This has sometimes resulted in new types of packaging\nbeing rejected at international borders. 6. 5. DIFFERENCES IN HAZARD ACTION CODES\n\nThere are differences of view about the value of a code to assist\n\nFor a decade the United Kingdom has used an emergency\n\nthe emergency services at incidents and about which code should be\nadopted. action code known as \" Hazchem\", whilst the French \" Kemler\" code has\nbeen adopted in ADR and RID. adopted by a number of other countries outside Europe. The Hazchem coding system has been\nVarious\n\n\f- 43 -\n\nNo agreement has been forthcoming. attempts have been made to decide on one of these two codes as the\nonly standard or , alternatively , to find an internationally\nacceptable compromise. The Hazchem code provides specific guidance on the action to be\ntaken initially by the fire service : The Kemler code is basically a\ncode which gives information on the hazardous properties ; it gives\nlittle useful action guidance to the emergency services except some\nadvice on when to avoid the use of water. However , the \" Kemler \" danger numbers and UN substance numbers which\nmust be given on the danger labels under the ADR and RID are - in\ncontrast to the more comprehensive details required under the\nHazchem code - legible even from fairly long distances owing to\ntheir type size. unable to get near to the vehicle involved in the accident ( e. g. because of fire ). This is particularly important if rescue teams are\n\n6. 6 DIFFERENCES IN SEGREGATION REQUIREMENTS. A serious problem arising from the differing requirements of\nrail / road and sea regulations is the segregation of dangerous goods\nwithin a wagon or container. The philosophy behind the segregation requirements of the IMDG code\nis that incompatible dangerous goods should not be loaded in the\nsame wagon or container. by dangerous reactions between substances if their packaging is\ndamaged. In the ADR / RID these requirements were only retained for relatively\nfew substances such as explosives and for more fragile types of\npackaging such as glass. Thus the segregation requirements for sea transport are much more\nstringent than for rail / road transport. This is intended to avert problems caused\n\n\f- 44 -\n\n6. 7. SPECIFIC PROBLEMS FOR WASTES\n\nThe international conventions and agreements on the transport of\ndangerous goods do not cover all types of waste and problems can\narise in classifying wastes of mixed or variable composition. The\nclassification system developed by ADR / RID ( paragraph 3. 5. ) will\nhelp to reduce these difficulties if it is widely adopted. A list of toxic and dangerous substances and materials requiring\npriority consideration is included in the Annex to Directive\n78 / 319 / EEC on toxic and dangerous waste , but it is a minimal list\nand is not complete or precise. Nine Members States have adopted\nregulations to control toxic waste , but their national regulations\nare somewhat divergent and are based on varying definitions of\nwaste. on the major components of the waste , others use the industrial\nactivity generating the waste , or in some cases both. Some Member States have adopted classification systems based\n\nA harmonised classification system for waste materials is needed to\nensure the effective implementation of Community Directives on\nwastes , in particular the Directive on the transfrontier movement of\ndangerous wastes , and the Commission is working on the more precise\nand uniform definition of toxic and dangerous wastes. In general , national and international regulations and agreements on\nthe transport of dangerous substances do not make special provisions\nfor wastes and within the Community, only the Federal Republic of\nGermany has set-up specific procedures for the transport of\nhazardous wastes. - 45 -\n\n7. CURRENT INTERNATIONAL INITIATIVES\n\n7. 1. SEA TRANSPORT\n\nA number of initiatives are presently under consideration within the\nframework of the International Maritime Organisation ( IMO ), which\nconcern both the prevention of pollution and the safety of\nnavigation. In particular an extension of the IMDG Code to cover\npollution of the marine environment by packaged goods is under\nconsideration as a mean of implementing Annex III of the MARPOL\n\nconvention. The Commission within the framework of the Memorandum of\n\nUnderstanding on Port State Control ( MOU ) has signed the final\ndeclaration of the \" Safe Ships on Clean Seas \" Ministerial Conference\nthat took place in April 1986. Community initiatives are also presently under consideration to\nextend the existing means of controlling and reducing pollution\ncaused by hydrocarbons at sea to include other harmful substances. The first step will consist of the implementation of the Council\ndecision of 6 March 1986 establishing a Community information system\nfor the control and reduction of pollution caused by the spillage of\nhydrocarbons and other harmful substances. The COST 301 research project referred to in Section 2. 3. is\nconcerned with the management and control of maritime traffic by\nThe purpose of these centres is the reduction\nshore-based centres. of the risks of collision , stranding and ramming and enhancement of\nsafety at sea , and the prevention of pollution of seas and coastal\nThe results and conclusions of the research phase will be\nareas. available in April 1987. 7. 2. INLAND TRANSPORT\n\nThe international bodies governing the ADR, RID and ADNR agreements\nhold meetings several times a year to discuss amendments and\nr\u00e9visions to the agreements. Important current issues are :\n\n- prescriptions for Intermediate Bulk Containers ( IBCs )\n- r\u00e9gulations for the transport of waste\n\n\f- 46 -\n\n- prescriptions for tank containers\n\n- new substances\n\n- new materials for packaging\n- r\u00e9vision of class 5. 2. - extending driver training requirements to all dangerous goods\n\n(organic peroxides )\n\n(now only for tank vehicles )\n\n- inspection of vehicles\n- several \u00e9ditorial and technical amendments\n\n- introduction of a new class 9 for substances dangerous to the\n\nenvironment. These meetings are attended by experts from 20 to 30 countries and\nseveral non-governmental organisations. These experts are often\nsupported by complete divisions in their national administration. The Commission of the European Communities has an observer at many\nof these meetings. Activities of the EEC can only be useful when\nthey fit in the framework of these existing agreements , e. g. Community Directive 84 / 631 / EEC on the transfrontier shipment of\ndangerous wastes refers to the International transport agreements. For the European road safety year 1986, the Commission has made a\nstudy of the possibilities of a monitoring system for dangerous\ngoods and waste , and plans to sponsor a pilot project. 7. 3. RADIOACTIVE MATERIALS\n\nInitiatives at worldwide level on the transport of radioactive\n\nmaterials\n\nA revised version of the IAEA Regulations for the Safe Transport of\nRadioactive Materials ( Safety Series N\u00b0 6) was issued in 1985. Substantial changes have been made and this edition supersedes all\nthe previous editions of the regulations. The Agency recommends that these regulations should be adopted in a\nperiod of 3 to 5 years ( not later than 1990 ) with the view to\nachieving worldwide harmonisation of their application. - 47 -\n\nThe target date for adoption of the 1985 edition of the Safety\nSeries N\u00b0 6 chosen by alt the international organisations concerned\nwith the transport of radioactive materials ( IMO, UPU , UN , ICAO,\nA DP , RID , ADNR ) is 1 January 1988 and this date applies to the\nMembers States of the European Community. Initiatives at Community level on the transport of radioactive\n\nmaterials. _ 11\n\n_ _\n\n_. In response to the Resolution of the European Parliament of 22\n,\n, the\nJanuary 1982 on the transport of radioactive materials\nCommission set up a special permanent working party consisting of\nnational experts and representatives of the Commission ; the Chairman\nAmong other things ,\nand Secretariat are provided by the Commission. this group advises the Commission on the preparation of proposals\nfor Community activities and studies all the problems associated\nwith the transport of radioactive materials. Based on the assistance of the experts mentioned above and in the\nlight of Directives 80 / 836 / Euratom and 84 / 467 / Euratom laying down\nthe basic safety standards for the health protection of the. general\npublic and workers against the dangers of ionizing radiation , the\nCommission concluded in 1984 and in its Communication to Council on\n\n\" The Development of Community Measures for the Application of\nChapter III of the Euratom Treaty 'Health and Safety\"' of 20 August\n1986 ( C0M(86)434 ) that the following actions should be envisaged at\nCommunity level :\n\n- the development of a more uniform standard for the training and\n\nprovision of information for the personnel involved in the\ntransport of radioactive materials ;\n\n- the formulation of criteria for technical and medical assistance\n\nin the event of abnormal or accident situations to be incorporated\ninto bilateral or multilateral agreements between Member States ;\n\n11\n\n0J N\u00b0 C 40 / 42 of 15. 2. 1982\n\n\f48 -\n\n- the examination of the feasibility of establishing and maintaining\n\nan information network on emergency provisions for transport\naccidents in border r\u00e9gions or at sea. The Commission also convened the experts of the Special permanent\nWorking Party on 17 October 1984 to examine the technical ,\nradiological and regulatory aspects of the Mont Louis incident , and\nto consider the view of the European Parliament. The conclusions of\nthe working party are summarised in Annex III. 7. 4. HAZARDOUS WASTES\n\nIn the framework of OECD, a Ministrial Conference on cooperation\nconcerning tranfrontier movements of hazardous waste has issued\nrecommendations for effective control of such movements , including\nan international notification , identification and control system ,\nand the establishment of a legally binding international agreement. This is intended to implement the principle that member countries\nwill not apply less strict controls on movements of hazardous waste\ninvolving third countries than they would for movements including\nonly member countries. Directive 84 / 631 / EEC on the supervision and control within the\nEuropean Community of the transfrontier shipment of hazardous waste\nhas been amended by the Council Directive 86/ 279 / EEC of 12 June 1986\nto extend\ncountry to non-member states. the requirement for proof of approval by the receiving\n\n\f- 49 -\n\n8. CONCLUSIONS AND RECOMMENDATIONS\n\nThe earlier chapters of this report describe the extensive network\nof international agreements covering the transport of dangerous\nmaterials by sea , road, rail , air and inland waterway. These\nagreements are subject to continual revision and updating by\ninternational groups of experts to increase their effectiveness and\nimprove harmonisation of the classification , packaging and labelling\nof dangerous materials. International agreements generally apply only to international\ntransport but some countries have adopted the same requirements for\ninternal transport of dangerous goods. However , several member\nstates of the European Community have not yet ratified all the\ninternational agreements , and not all the states which have done so\napply them to internal transport. The Commission 's primary objective\nis to ensure the full implementation of all the relevant\ninternational agreements in Member States - the long-term objective\nshould be a single , unified system applicable to both national and\ninternational transport by all modes. time to achieve , but the Commission can play a valuable role in\ncoordinating the position of Member States in international\nnegotiations , and encouraging the international organisations to\ntake further steps towards a unified system. At Community level\naction is needed to achieve greater harmonisation of the regulations\ncovering the transport of dangerous goods within and between Member\n\nThis will clearly take a long\n\nStates. The transport of dangerous wastes should be included in agreements\nand regulations on the transport of dangerous goods in general , but\nas a first step an international method for classifying the hazard\nThe Commission supports the efforts\nof waste materials is needed. of international organisations to develop an agreed classification\nsystem for wastes and the Commission 's own work on the uniform\nclassification of wastes is a contribution to this effort. 50\n\nIn the case of radioactive materials all the relevant international\nconventions incorporate the IAEA Regulations and the revised 1985\nEdition of the Regulations will be incorporated into the conventions\nby January 1988. As indicated in its communication to the Council on\nthe transport of radioactive materials within the Community\n( C0M(84)233 final ), the Commission contributes to the continuing\ndevelopment of the IAEA regulations and promotes the uniform\napplication of their requirements throughout the Community. In its communication to the Council on the consequences of the\nChernobyl accident ( C0M(86)327) and on the development of Community\nmeasures for the application of Chapter III of the Euratom Treaty\n( C0MC86) 434 ), the Commission has made clear its intention that all\ntransport of radioactive materials both within and between Member\nStates should be subject to a uniform set of provisions based on the\nIAEA Recommendations. The objective of full international harmonisation of the transport\nof dangerous materials is the long-term goal , but there are a number\nof specific actions which the Commission could take immediately -\nthese are listed below. 8. 1 SEA TRANSPORT\n\nThe Commission should attempt to achieve a more systematic and\nstructured co-ordination of Member States' positions within the\nframework of IMO and other relevant international bodies. A reduction of accidents to vessels at sea decreases the risk of\npollution from polluting cargoes. Highly frequented areas need\nmeasures to reduce accidents , such as the supervision of traffic by\nVessel Traffic Services (VTS ). The possibility of providing VTS\nsystems with additional information on vessels carrying dangerous\ncargoes so that they can be more closely supervised should be\nstudied. 51\n\nAn initiative should be taken to assess whether existing international\nagreements on safety at sea ( STCW , COLREG etc. ) adequately cover the\nsp\u00e9cifie problems of the carriage of dangerous goods by sea. Community instruments should be proposed to ensure the implementation of\nthe requirements of all relevant international agreements by all Member\n\nStates. In particular instruments should be proposed to ensure the proper\nimplementation of Annex II ( prevention of pollution by liquids carried in\nbulk ) and Annex III ( prevention of pollution by harmful substances carried\nin packages ) of MARPOL 73 / 78. The Commission will also submit proposais on :\n- the establishment of a mandatory notification system for ships ,\n\nincluding passenger ships and ferries , etc. , carrying dangerous goods by\nsea in packages , tank-wagons , tank-lorries , portable tanks or freight\ncontainers , and a reporting system for insufficiencies or incidents\nliable to reduce the maneouvrabi lity of such ships , for leakages of\ndangerous goods within the ship and for discharges of dangerous goods at\n\nsea ;\n\n- the improvement of means of detecting and prosecuting violations of\n\nsafety and pollution regulations. A draft Directive on the first point is in the process of being finalized. 8. 2. INLAND TRANSPORT\n\nIn this area Community action should be directed to filling in the gaps in\nthe network of international agreements , especially as regards dangerous\nwastes , and ensuring their uniform implementation throughout the Community\nin relation to both national and international transport. The Commission should propose a Council Directive which obliges all Member\nStates to apply the provisions of the international agreement for the\ntransport of dangerous goods by road ( ADR ) to international transport. For\ninland waterways similar provisions could be adopted as soon as the\nrelevant agreement ( ADNR ) has been revised and harmonised with the other\n\nagreements. 52 -\n\nThe Commission 's efforts will also be directed to ensuring that\nMember States adopt regulations for national transport based on the\nsame principles as those applied to international transport , and\nthat national regulations are progressively brought into line with\nthe international agreements. The objective will be to achieve the\nfree movement of dangerous goods and a free market for transporting\nthem within the Community, subject to agreed controls and high\nstandards of protection for man and the environment. The regulations\nshould include the transport of dangerous wastes , taking into\naccount the particular nature of wastes. The Commission will make a\nproposal to this end by the end of 1988. Road transport of dangerous goods\nStudies have shown that the vast majority of road accidents\ninvolving the transport of dangerous goods are \"normal \" traffic\naccidents mainly caused by human failure. Moreover checks on\nenforcement have shown a high proportion of breaches of national and\ninternational regulations on the transport of dangerous goods. Priority in Community action to improve the safety of transporting\ndangerous goods by road should therefore be given to improvements of\nhuman performance and to a better enforcement of existing rules. The Commission should consider the following actions :\n\n1. A directive requiring Member States to accept on their territory\n\nroad vehicles transporting dangerous goods or wastes\ninternationally in conformity with the requirements of the ADR\nagreement. 2. A directive on the training of drivers of vehicles carrying\n\ndangerous goods or wastes in packages. 3. A directive on the training of road transport managers concerned\n\nwith the transport of dangerous goods or wastes. A. A directive on the enforcement of regulations on the transport of\n\ndangerous goods and wastes by road. 53 ~\n\n8. 3. HARMONISATION OF CLASSIFICATION AND LABELLING\n\nProducts placed on the Community market must be labelled according\nto the requirements of Directive 67/ 548/ EEC and its amendments ; the\nsquare format labels required by the Directive ( illustrated in Annex\nV ) were based on the ADR and RID labels current at the time. However , these transport agreements were later harmonised with the\nUN Recommendations which prescribe diamond shaped labels\n( illustrated in Annexes VI and VII ). The result is that the user\n\nlabelling required by directive 67/ 548 / EEC differs from transport\nlabel ling. There are also small differences between the size and wording of the\nADR / RID and IMDG transport labels , and some labels are available in\none system and not in another. However , the basic symbols used by\nall three systems to identify dangerous substances are identical and\nconfusion between different labels carrying the same symbol is\nunlikely. The differences sometimes mean that packages have to have\ntwo labels , but industry is reluctant to change well-established and\nrecognized labels. Nevertheless the objective should be a single Community system for\nall hazard labelling which is compatible with the labelling\nrequirements of the international transport agreements , and is based\non unified classification criteria for the toxicity and other\nhazardous properties of dangerous substances. The classification of dangerous substances is based on the results\nof tests of toxicity , corrosiveness , irritancy etc. , which use\nlaboratory animals and , in this context , the need to reduce the use\nof animals in testing whenever possible should be taken into\n\naccount. The long-term objective of fully unified classification and\nlabelling requirements for hazardous substances , including wastes ,\nfor both transport and marketing purposes should be vigourously\npursued. This , may require modification of Community instruments and\n\n\f- 54 -\n\nthe Commission will launch a study of how best to harmonise\nCommunity classification and labelling requirements with those of\nthe international transport agreements. \\\n\n\fSS-\n\nANNEX I\n\n15. 10. 84\n\nOfficial Journal of thc European Communities\n\nNo C 274 / 37\n\nThursday , 13 September 1984\n\non thc environment and in particular the accident involving the Mont Louis\n\nRESOLUTION\n\nThe European Parliament,\nA. having regard to the disastrous effects on human life and the environment which may\n\nresult from accidents such as that involving the French vessel , the Mont Louis ,\n\nB. having regard to the Community action programmes on the environment of\n22 November 1973 and 13 July 1977 , and Parliament\u2019s resolutions of 22 January\n1982 ( ' ) and 6 June 19S3 ( 2), which called on the Commission to ensure the application\nof uniform rules in the Member States for the transport of hazardous substances and\nproducts ,\n\nC. whereas , hitherto , only a single political agreement ( of 9 June 1984 ) has been reached on\n\nimproving the rules applying to the transfrontier shipment of hazardous wastes,\n\nD. whereas it\n\nis clear from the sinking of the Mont Louis that national protective measures\nare inad\u00e9quate and that there is no evidence of genuine coop\u00e9ration at international or\nEuropean level ,\n\n1. Calls on the Commission to submit as a matter of priority proposais for Council\nR\u00e9gulations to regulate effectivcly the general subject of the transportation of dangerous and\nradioactive substances and wastes ;\n\n2. Calls on the Commission and the Member States of the European Community ,\nbearing in mind the North Sea Conference that is due to take place in Bremen at the end of\nOctober 1984 , to\n(a ) urge that all agreements concerning the protection of the North Sea and other seas be\n\nratified forthwith by all the countries concerned ;\n\n(b) check that ail dangerous and radioactive substances are covered in these agreements and\n\nto propose addenda thereto where appropriate;\n\n(c) avoid using ports of countries which have not ratified these agreements , with the aim of\n\nreducing the risk of accidents;\n\n3. Asks the Governments of the Member States to comply strictly with minimum\nconditions for the movement of high-risk dangerous and radioactive substances and wastes,\nand particularly:\n\u2013 to fix sp\u00e9cial transport routes ,\n\u2013 to providc ail those concemed with advance information ,\n\u2013 to provide for plans and effective safety and pr\u00e9vention measures for the avoidance of\n\ncatastrophes , and for their publication,\n\n\u2013 to guarantee the training of drivers and accompanying personnel ,\n\u2013 to provide for the organization of treatment facilities for victims;\n\nInstructs its Fresident to forward this resolution to the Council and Commission and\n\n4. the Government of thc Member States. 0 )\nCO 03 \u00bb0 o\n\nOJT HoCVOjliU. Hf2. , U. 7. W2\n\n\fNo C 274 / 38\n\nOfficial Journal of the European Communities\n\n15. 10. 84\n\nThursday, 13 September 1984\n\nRESOLUTION\n\non environmental issues of current relevance\n\n\u2013 lhe transport of radioactive substances\n\n\u2013 dioxin residues in waste incin\u00e9ration plants\n\n\u2013 formald\u00e9hyde\n\nThe European Parliament,\n\nhaving regard to:\n\nA. B. C. D. E. F. the recent collision in the North Sea , in which a cargo vessel carrying dangerous and\nradioactive substances was sunk ,\n\nthe levels of dioxin which h\u00e2ve been measured in the used air from waste incin\u00e9ration\nplants,\n\nthe fact that the Council has still not introduced the Directive on the determination of\nenvironmental acceptability, and\n\nthe concentrations of formald\u00e9hyde in enclosed spaces which h\u00e2ve been recorded in the\nF\u00e9d\u00e9ral Republic of Germany,\n\nthe fact that the public in the European Community is being exposed to risk from the\ncontinuai succession of accidents and incidents involving dangerous substances,\n\nthe frequently inaccurate and scientifically unsound reporting of such incidents in certain\nmedia ,\n\nG. its\n\nresolution of 24 May 1984 on air pollution in enclosed\n\nspaces\n\nand\n\nformald\u00e9hyde ( ' ),\n\nH. the demands put forward in the report of the Committee of Inquiry into the treatment of\ntoxic and dangerous substances by the European Community and its Member States\n( Doc. 1-109 / 84 ),\n\nI. its resolution of 22 January 1982 on the transport of radioactive substances and\nwaste (2 ),\n\nCalls on the Commission to submit to it a report specifying:\n\n1. (a) the dangers which arise from the instances cited above,\n\n( b ) the measures which the Commission has instituted to meet the demands that Parliament\nmade as long ago as 1981 in connection with the transport of radioactive substances and\nthe practical results , if any , of the concerted action project in the field of navigation aid\nsystems , instituted by the European Economic Community in 1983 , and in addition the\naction which , in the estimation of the Commission , may help in the future to prevent\nships carrying dangerous substances from becoming involved in accidents while sailing in\nbusy stretches of Community territorial waters,\n\n(c) the legal rules which govern the inspection of used air from waste incineration plants in\nthe individual Member States , the countries where traces of dioxin have been detected in\nthe used air from waste incineration plants, the threshold values beyond which a danger\nto the public must be assumed to exist and the steps which the Commission proposes to\ntake in this area ,\n\n(d) the legal rulcs laid down in the individual Member States to regulate concentrations of\nformaldehyde in enclosed spaces and the action which the Commission has already taken\nor plans to take on the demands of Parliament;\n\nInstructs its President to forward this resolution to the Commission , the Council and\n\n2. the Governments of the Member States. - sy\u00ad\n\nANNEX III\n\n)\n\nViewpoints of the special CEC Permanent Working Party on the transport\nof radioactive materials\nBrussels, 17 October 1984, fifth meeting\n\nThe sp\u00e9cial CEC permanent working party for the transport of\nv\nradioactive materials was convened on 17 October 1984 to examine the\naccident involving the ship Mont Louis and the reactions of the\nsEuropean. Parlfament. -Aff\u00ebr \u00e0n intensive discussion the Sp\u00e9cial\nPermanent Working Party unanimously adopted two viewpoints concerning\nthe repercussions of the Mont Louis accident on the R\u00e9gulations for the\nSafe. Transport of Radioactive \u2018Materials and the r\u00e9solution of the\nEuropean. Parliament of 13. September 1984 ( 0. J. n\u00b0 C274 / 36,37 o'f 15. r Q\u00e7tpber 1984 ). \u201e\n\n\u2022. These two viewpoints are presented below. <\n\n*\n\nA. Viewpoint of the Special Working Party on the lessons to be learnt\nfrom the Mont Louis. accident yith regard to responsibility in the\ntransport of radioactive materials. The Working Party recognizes. the need for a rapid exchange \u201eof\ninformation in accident situations , relating to the international\ntransport of radioactive materials , so as ,to enable govemments to\nrespond quickly to public concern in these matters. *\n\n*\n\n'\n\n*\n\n\u00ef\n\nv\n\n1. Recommendation\n\nThe Members of- the Special Working P^rty are of the opinion that the\nMont Louis accident did not cast doubt on the adequacy of the\nexisting regulations relating to the safe transport of radioactive\nmaterials. The Working Party therefore sees no reason to make any changes from\nthe point of view of radiation safety in these r\u00e9gulations. -\n\n\fB. Viewpoint of the Sp\u00e9cial Working Party on the resolution of the\n\nEuropean Partiament of 13 September 1984 on the accident involying\nthe Mont Louis. The Sp\u00e9cial Working Party, which met on 17 October 1984, discussed\nin detail the resolution of the European Parliament and reached the\nfollowing conclusion with regard to the transport of radioactive\nmaterials :\n\nT\n\n\u2022\n\n\u2022\n\n\\. 1. In view of the fact that the European Parliament has not yet had\nan opportunity to discuss the report by the Sp\u00e9cial Working Party. \u2022\nr\nforwarded to it by the. Commission on 4 May 1984 , the Working\nParty recommends that the Commission point out the existence of\n\nJAnJ t\n\nII _ \u00bb\n\nI u\n\n\u25a0. -\u25a0\n\n\u2022\n\n\u2022\n\n\u00ab\n\n1\n\n\u25a0\n\n,\u2013. that report to the European Parliament together with the\n\nconclusions that the Commission, to the extent to which it is\nconcerned, has drawn with regard to the measures to be taken\nwithin the Community framework. , -\n\n'\n\n\u2022\n\n2. The Working Party considers that the European Parliament should\nnot consider additional measures relating to the safe transport\nof radioactive materials. 3. - The Working Party wishes to draw the attention of the Commission\nto the viewpoint that it adopted unanimously with regard to the\n' lessons to be learn in this field from the accident involving the\n\nMont Louis ;\n\nCOM \u00c784). 233 final of 26 April 1984 \"The transport of radioactive\nTransmitted to the European\n\nmateriais within the European Community,\u2018. Parliament and the Council on 5 May 1984. ANNEX IV\n\nCONVERSION BETWEEN CLASSIFICATION SYSTEMS\n\nClassification Systems. Description of the hazard\n\nADNR. - _ categories\n\nADR / RID\ncat\u00e9gories\n\nIMDG\n\ncategories\n\n1\n\nExplosive substances and\n\narticles\n\nArticles filled with\n\nexplosive substances\nIgniters, fireworks and\nsimilar goods\nGases : compressed , liquefied\nor dissolved under pressure\nSubstances which give. off\ninflammable gases on contract\nwith water\n\n! a\n\nI b\n\nI\n\nc\n\nId\n\nI. e\n\nSubstances liable. to\n\nspontaneous combustion\nInflammable liquids\nInflammable solids\n\nSubstances which contribute. to combustion\n\nToxic substances\n\nRadioactive substances. Corrosive substances\nRepugnant substances\nOrganic peroxides. Mi sce-i laneous. :/ :. \u0393\n\nII\n\n'\n\nIII a. Ill b\n\nIII c\n\nIV a\n\nIV b. V\n\nVI\nV\u00ccI\n\n\u2013\n\n,( 1 a\n\n1\n<\n\n1. 1 to 1. 5\n\n1 b\n\nl 1\n\nc\n\n2\n\n2. 4. 3\n\n4. 2\n\n3\n\n: 4. 1. \u00b7\n\n-\n\n5. 1\n\n6. 1\n\n7\n\n8\n\n6. 2\n\n5. 2\n\n4. 3\n\n4. 2\n\n3. 1 to 3. 3\n\n4. 1. 5. 1\n\n6. 1\n\n7\n\n8\n\n6. 2\n\n5. 2\n\n9. \u2022. H\n\nO\n\nANNEX V\n\nEksplosiv\nExplosionsgef\u00e0hrlich\n\u0395\u03ba\u03c1\u03b7\u03ba\u03c4\u03b9\u03ba\u03cc\nExplosive\nExplosif\nEsplosivo\nOntplofbaar\n\nLet antzndelig\nLeichtentz\u00fcndlich\nAiav E\u00dc