# EUR-Lex - 52011PC0657 - EN

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# 52011PC0657

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on guidelines for trans European telecommunications networks and repealing Decision No 1336/97/EC /* COM/2011/0657 final - 2011/0299 (COD) */**

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EXPLANATORY
MEMORANDUM

1.           CONTEXT
OF THE PROPOSAL

General context

This initiative is
anchored in the Europe 2020 Strategy for smart,
sustainable and inclusive growth[1], which put digital infrastructures at the forefront as
part of the flagship initiative "Digital Agenda for Europe"[2]. It underlined the
need to ensure the roll-out and take-up of broadband for all, at increasing
speeds, through both fixed and wireless technologies, and to facilitate investment
in the new very fast open and competitive internet networks that will be the
arteries of a future economy. The EU has set itself ambitious targets in terms
of broadband roll-out and take up by 2020.

On 29 June 2011, the Commission adopted the
Communication "A Budget for Europe 2020" on the next multi-annual
financial framework (2014-2020)[3],
which proposes the creation of a Connecting Europe Facility to promote the
completion of priority energy, transport and digital infrastructures with a
single fund of EUR 40 billion, out of which EUR 9.2 billion are dedicated to digital
networks and services.

Purpose of the proposal

The purpose of this Regulation is to
establish a series of guidelines covering the objectives and priorities
envisaged for broadband networks and digital service infrastructures in the
field of telecommunications in the context of the Connecting Europe Facility.

The guidelines identify in annex projects
of common interest for the deployment of broadband networks and digital service
infrastructures. These projects shall contribute to improving the
competitiveness of the European economy including small and medium sized
enterprises (SMEs), promote the interconnection and interoperability of
national networks as well as access to such networks and support the
development of a Digital Single Market. They shall be eligible for EU financial
support under the instruments available under the Regulation on Connecting
Europe Facility which accompanies this Regulation.

The approach in this Regulation, is to aim
for the removal of bottlenecks which hinder the completion
of the Digital Single Market i.e. providing connectivity to the network
and access, including across borders, to an infrastructure of public digital
services. The blockages in operational terms for the telecom networks, in
contrast to e.g. financing a ring-road around a capital city which is essential
for fluidity in a transport corridor, concern both supply-side and demand side aspects. For the supply side,
the limitations relate to a strong degree of market
failures and the concomitant weak business cases for investment in broadband
networks and delivery of essential public interest services (e.g. eHealth,
eIdentity, eProcurement and their cross-border interoperability).
On the demand side, the Digital Single Market with its considerable growth
potential relies on all citizens being connected to digital networks.

The Connecting Europe Facility aims at using
innovative financial instruments to incentivise infrastructure investment by
reducing investment risk and providing longer-term financing for both
alternative and incumbent investors. Innovative financial instruments provide
an important leverage effect on private and other public investment while still
relying on market mechanisms. Where the business case for infrastructure
investment is particularly weak the Connecting Europe Facility also foresees
the possibility to offer co-financing via grants.

In the field of
broadband networks, actions contributing
to projects of common interest in the area of broadband shall support
investments in networks capable of achieving, by 2020, the Digital Agenda for
Europe targets of universal coverage at 30Mbps; or having at least 50% of
households subscribing to speeds above 100Mbps. A balanced portfolio of 30 and
100 Mbps projects will be created and due account should also be taken of
Member States' investment needs which are indicatively assessed to be up to 270
billion €.

For the digital service infrastructure, the
bottlenecks in terms of service deployment within interoperable frameworks are
addressed through direct grant schemes, in certain cases with high co-funding
rates as there are no natural owners of a European interoperable service
infrastructure. Indeed, neither single Member States, nor private investors would
ensure service deployment within interoperable frameworks. The EU added value
is thus high.

Projects of common
interest in the field of digital service infrastructures as listed in the Annex
include trans-European high-speed backbone connections for public
administrations, cross–border delivery of eGovernment services based on
interoperable identification and authentication (e.g. Europe-wide electronic procedures:
to set up a business; for cross-border procurement, e-Justice, cross-border
eHealth services); enabling access to public sector information, including digital
resources of European heritage, data.eu and multilingual resources; safety and
security (safer internet and critical service infrastructures) and smart energy
services. Projects of common interest may also include the operation of
electronic public services implemented under other Community programs such as
the ISA program (“Interoperability solutions for European public
administrations”).

Actions contributing to projects of common interest shall be eligible for EU financial support under the instruments
available under the Regulation establishing the Connecting Europe Facility[4]. The
present proposal is therefore to be seen in conjunction with the proposal for that
Regulation. The Regulation also stipulates the
criteria for the identification of new projects of common interest, on the
basis of the Commission's assessment of changing political priorities,
technological developments or the situation in the relevant markets.

2.           RESULTS
OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

As regards broadband
rollout, numerous consultations with Member States, industry and social stakeholders
have been carried out. Notably, these included a roundtable of Vice-President
Kroes with CEOs from content providers, equipment makers, investors and
telecoms operators from the world's leading companies such as Nokia, Alcatel
Lucent, Google, Ericsson, News Corp etc, and the first Digital Agenda Assembly,
which took place in Brussels on 16th and 17th June 2011, bringing together more
than 1,000 stakeholders from the private and the public sectors, as well as
civil society. On these and numerous other occasions, stakeholders widely
shared the Commission's assessment that the existing telecom investment model
is insufficient to bring about the rollout of affordable, high-quality
broadband infrastructures for all European citizens, and they welcome the
Commission's plans to use targeted public investment, e.g. through the use of
innovative financial instruments, to leverage the necessary infrastructure
investment to support alternative and more sustainable models of investment.

The European Parliament
in a draft report on the future Multi-annual Financial Framework (MFF)
recognised the importance of using the budget to leverage investment in
broadband.

As far as cross-border
digital service infrastructures are concerned, the Commission has been working
with various stakeholder groups for many years. Evaluations and expert advise
on existing activities, such as Europeana (for cultural heritage) or the Safer
Internet programme generally call for activities to be continued and expanded.

The Impact Assessment
report discusses two options. The first, baseline option foresees no EU funding
to be allocated to broadband other than, potentially, through the structural
funds and the continuation of the Competitiveness and Innovation Programme for
digital service infrastructures in the scale of pilots only. In this scenario no
critical mass or deployment of digital services would be achieved, investment
in broadband would continue to be insufficient in many regions due to lack of
competitive pressure and high commercial risk. Equally, public online services
can be expected to remain under-developed and not inter-operable across borders
due to fragmentation of sub-optimal efforts and technical solutions, lack of
critical mass, high costs for service providers and beneficiaries of services.
Hence, this option would not contribute to attaining the Digital Single Market,
and many Europeans would continue to miss out on digital opportunities.

The second option proposes
a financing tool which would complement the financing resources available under
the first option. This is the line of action included in the MFF proposal
released by the European Commission on 29 June 2011, creating a
"Connecting Europe Facility" to finance infrastructure. The new
facility will finance infrastructure projects with high EU added value, not
only 'hard' infrastructure, but also 'soft and smart' infrastructure and
governance structures to realise the transport "core network", the
energy "priority corridors" as well as digital infrastructure. The facility
would target projects with high European value added, such as cross-border
interconnections or the deployment of EU-wide systems, which must be
implemented by 2020. In order to maximise impact, appropriate provisions would
ensure the combination of market - based instruments and EU direct support, in
order to encourage the participation of specialised infrastructure investors. In
the case of grants, the Commission would remain responsible for the overall
planning and project selection, with the possible support of an executive
agency, while project promoters would ensure physical implementation on the
ground. In the case of financial instruments, implementation will be delegated
to specialised financial institutions, but the Commission will determine the
eligibility. Member States will contribute to the effort by developing national
plans for high speed internet in line with the broadband targets, while mapping
of broadband infrastructure and services (at EU and national/regional level)
will identify gaps in coverage and stimulate initiatives from a multiplicity of
private and public investors.

3.           LEGAL
ELEMENTS OF THE PROPOSAL

Legal basis

The proposed Regulation
will repeal and replace Decision 1336/97 of the European Parliament and of the
Council of 17 June 1997 on a series of Guidelines for trans-European
telecommunications networks.

The proposed
intervention will be pursuant to Article 172 TFEU, which provides a legal base
for the EU intervention supporting the establishment and development of trans-European
networks in the areas of transport, telecommunications and energy
infrastructures.

Subsidiarity and proportionality

The coordinated development of a trans-European
telecommunications networks to support the deployment of broadband
infrastructures and promotion of services within the single European market and
the economic, social and territorial cohesion requires action to be taken at
Union level as the actions could not be taken individually by Member States.

The proposal complies with the proportionality principle,
and stays within the scope of action in the field of the trans-European
telecommunications networks, as defined in Article 170 of the Treaty on the
Functioning of the European Union.

Choice of legal instrument

The current Telecommunications Guidelines have been
proposed and adopted as a Decision of the European Parliament and of the
Council which is specifically addressed to the Member States, rendering the
Guidelines binding in their entirety for all the Member States.

However, the instrument will facilitate in particular the
deployment of telecommunications infrastructure and promotion of services by
private entities (including operators, utilities, equipment manufacturers etc)
and regional and local authorities. With more actors besides the Member States
becoming involved in the planning, development and operation of digital
telecommunication networks, it is important to ensure that the Guidelines be
binding for all. The Commission has therefore chosen a Regulation as the legal
instrument for this proposal.

Funding

Projects of common interest shall be eligible for EU
financial support under the instruments available under the Regulation establishing
the Connecting Europe Facility [XX/20012]. Financial support shall be provided
in accordance with the relevant rules and procedures adopted by the Union,
funding priorities and the availability of resources.

Delegation of powers

Telecommunication networks are evolving quickly and the
list of projects of common interest might have to be modified in future to
reflect this fast evolution. To accomplish this, it is proposed that power to
adopt acts in accordance with Article 290 of the Treaty on the Functioning of
the European Union should be delegated to the Commission.

4.           BUDGETARY
IMPLICATION

The proposal will not
entail any additional cost for the EU budget.

The proposal for a Regulation on guidelines
for the implementation of trans-European telecommunication networks is linked
to the proposal for a Regulation establishing the Connecting Europe Facility
(CEF) which will provide the legislative and the financial framework. An amount of € 9.2 billion[5] is allocated for
telecommunications within the envelope of the CEF.

2011/0299 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on guidelines for trans European
telecommunications networks and repealing Decision No 1336/97/EC

(Text with EEA relevance)

THE EUROPEAN
PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the
Treaty on the Functioning of the European Union, and in particular Article 172 thereof,

Having regard to the
proposal from the European Commission,

After transmission of
the draft legislative act to the national Parliaments,

Having regard to the
opinion of the European Economic and Social Committee[6],

Having regard to the
opinion of the Committee of the Regions[7],

Acting in accordance
with the ordinary legislative procedure,

Whereas:

(1)
Telecommunications networks and
services are increasingly becoming internet-based infrastructures, with
broadband networks and digital services closely interrelated. The internet is
becoming the dominant platform for communication, services, and doing business.
Therefore, the trans-European availability of fast Internet access and digital
services in the public interest is essential for economic growth and the Single
Market.

(2)
On 26 March 2010, the European Council welcomed
the Commission's proposal to launch the strategy Europe 2020. One of the three
priorities of Europe 2020 is smart growth through the development of an economy
based on knowledge and innovation. Investments in
telecommunications, notably broadband networks and digital service
infrastructures, are a necessary condition for smart but also sustainable and
inclusive economic growth of the Union.

(3)
On 17 June 2010, the European Council
endorsed the Digital Agenda for Europe[8]
and called upon all institutions to engage in its full implementation.
The Digital Agenda aims
to chart a course to maximise the social and economic potential of information and communication technologies, in
particular through the deployment of high-speed
broadband networks by seeking to ensure that by 2020 all Europans have access
to internet speeds of above 30 Mbps and 50% or more of European households
subscribe to internet connections above 100 Mbps. The Digital Agenda aims to establish a stable legal framework to stimulate
investments in an open and competitive high speed internet infrastructure and
in related services; a true single market for online content and services;
active support for the digitisation of Europe's rich cultural heritage, and the
promotion of internet access and take-up by all, especially through support of
digital literacy and accessibility. In addition, Member States should implement
operational national plans for high speed internet, targetting public funding
on areas not fully served by private investments in internet infratructures and
promote deployment and usage of modern accessible online services.

(4)
The Communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions -European Broadband:
investing in digitally driven growth[9]
concludes that the critical role of the internet means that the benefits for
society as a whole appear to be much greater than the private incentives to
invest in faster networks. Public support for this area is therefore necessary,
but should not unduly distort competition.

(5)
The Communication from the
Commission to the European Parliament, the Council, the European Economic and
Social Committee and the Committee of the Regions – A Budget for Europe 2020[10] recognises the
creation of a Connecting Europe Facility in the context of the Multiannual
Financial Framework in order to address the infrastructure needs in the areas
of transport, energy and information and communication technologies. Synergies between these sectors as well as with other Union
investment programmes are key as similar challenges emerge requiring solutions
that unlock growth, combat fragmentation, reinforce cohesion, favour the use of
innovative financial instruments and address market failures as well as the
removal of bottlenecks which hinder the completion of
the Single Market.

(6)
Regulation (EU) No [.../...] of
the European Parliament and of the Council of [...] establishing the Connecting
Europe Facility[11]
determines the conditions, methods and procedures for providing Union financial
aid to trans-European networks in order to support projects in the field of
transport, energy and telecommunications infrastructures.

(7)
Actions in the field of broadband networks will
be in line with the relevant Union policies, regulation and guidance. This
includes the set of rules and guidelines for the telecommunications markets and
in particular the Regulatory Framework for electronic communications adopted in
2009 which provides a coherent, reliable and flexible approach to the
regulation of electronic communication networks and services in fast moving
markets. These rules are being implemented by national regulatory authorities
and the Body of European Regulators for Electronic Communications (BEREC). The NGA
Recommendation[12]
adopted in 2010 aims at fostering the development of the Single Market by
enhancing legal certainty and promoting investment, competition and innovation
in the market for broadband services in particular in the transition to next
generation access networks (NGAs).

(8)
These actions will also be in compliance with Articles
101, 102 and 106 of the Treaty on the Functioning of the European Union, as
well as with the Community Guidelines for the application of State aid rules in
relation to rapid deployment of broadband networks, adopted in 2009, which
provide a framework for stakeholders and Member States to accelerate and extend
broadband deployment. The EU guidance for NGA investment models for EU
management authorities and other relevant agencies (published in October 2011)
provide a step by step approach to the implementation of a range of models that
ensure fair competition among all suppliers and aim at the realisation of the
objectives of cohesion and rural development policies.

(9)
Within the framework of a system of open and
competitive markets, the Union's intervention is necessary where market
failures need to be overcome. By providing financial support and additional
financing leverage to infrastructure projects the Union can contribute to the
establishment and development of trans-European networks in the area of
telecommunications, thus generating higher benefits in terms of market impact,
administrative efficiency and resource utilisation.

(10)
Substantial economic and
social benefits, which cannot be captured nor monetised by investors, are
associated with higher broadband speeds. Fast
and ultra-fast broadband is the key
enabling infrastructure for the development and deployment of digital services,
which rely on the availability, speed, reliability and resilience of the
physical networks. The deployment and take-up of faster networks opens the way
for innovative services exploiting higher speeds. Action at Union level is
necessary to maximise the synergies and interactions between those two
components of digital telecommunications networks.

(11)
The deployment of ultra-fast broadband will particularly benefit small and
medium enterprises (SMEs) which often cannot benefit from web-based services
such as 'cloud computing' due to inadequate connectivity and speed of existing
broadband connections. This will unlock the potential for substantial
productivity gains for SMEs.

(12)
By opening business opportunites, the
deployment of broadband networks and digital service infrastructures will stimulate
job creation in the Union. Construction of broadband networks will also have an immediate effect on employment in
particular in civil engineering sector.

(13)
The development of broadband networks
and digital service infrastructures will contribute to the Union's objective to
reduce greenhouse gas emission by enabling
energy-efficient solutions in many sectors of Europe's economy. This positive
effect will be limited, but only to some extent, by the growing energy and
resource demand related mainly to the construction of broadband networks and
the operation of digital service infrastructures.

(14)
The interoperability of the broadband
networks and the digital
communications infrastructure associated to energy networks enables converged
communications for the deployment of energy-efficient, reliable and
cost-effective digital networks. Furthermore, convergence will be extended
beyond connectivity to allow for the packaged provision of energy and telecom
services by energy and telecom services providers respectively.

(15)
The development, deployment
and long-term provision of interoperable cross-border eGovernment services
enhance the functioning of the Single Market. Governments are recognised for
providing public online services which contribute to increasing efficiency and
effectiveness of the public and private sector

(16)
The operation of common electronic public
services implemented conforming to the Decision 922/2009/EC of the European
Parliament and of the Council of 16 September 2009[13] will aim at the availability
of common services in support of the cross-border and cross-sector interaction
between European public administrations.

(17)
Directive 2011/24/EU of the European Parliament
and of the Council of 9 March 2011 on the application of patients' rights in
cross-border healthcare[14]
gives the legal framework for the cross-border provision of healthcare,
including eHealth services, in Europe. Their deployment is expected to improve
the quality of care and the patient safety, to reduce medical costs, to
contribute to modernising national healthcare systems and increasing their
efficiency, and to make them better adapted to the individual needs of
citizens, patients, health professionals, and the challenges of an ageing
society.

(18)
Increasing and preserving
access to Europe's rich and diverse cultural content and data held by public
sector bodies, and opening them up for reuse in full respect of copyright and
related rights, will nurture creativity and spur innovation and
entrepreneurship. Unhampered access to re-usable multilingual resources will
help overcome language barriers, which undermine the internal market for online
services and limit access to knowledge.

(19)
In the area of safety and
security, an EU-wide platform for sharing resources, information systems and
software tools promoting online safety will contribute to creating a safer
environment for children online. It will enable centres
handling hundreds of thousands of requests and alerts per year to operate
across Europe. Critical Information Infrastructures
will enhance the Union-wide capability for preparedness, information sharing,
coordination and response to cyber security threats.

(20)
It is expected that innovative applications of
commercial nature running on digital service infrastructures will emerge. Their
exploration and testing can be co-financed as part of research and innovation
projects in the Horizon 2020 programme and their deployment under the cohesion
policy.

(21)
In order to take into account the developments
in the areas of information and communication technologies, the power to adopt
acts in accordance with Article 290 of the Treaty on the Functioning of the
European Union should be delegated to the Commission in respect of amending the
Annex to this Regulation. It is of particular importance that the Commission
carries out appropriate consultations during its preparatory work, including at
expert level. The objective of this delegation is to address new technological
and market developments, emerging political priorities or opportunities for exploiting
synergies between different infrastructures, including those in the fields of
Transport and Energy. The scope of delegation is limited to modifying the
description of projects of common interest, adding a project of common interest
or removing an obsolete project of common interest according to
pre-established, clear and transparent criteria.

(22)
The Commission, when preparing and drawing-up
delegated acts, should ensure a simultaneous, timely and appropriate
transmission of relevant documents to the European Parliament and Council.

(23)
Decision No 1336/97/EC of the European
Parliament and of the Council of 17 June 1997 on a series of guidelines for
trans-European telecommunications networks[15] covers the
objectives, priorities and broad lines of measures envisaged in the
trans-European networks in the area of telecommunications infrastructure. In
the light of the recent developments that Decision should be replaced.

(24)
Decision No 1336/97/EC should therefore be
repealed.

HAVE ADOPTED THIS REGULATION:

Article 1
Subject matter

This Regulation lays down guidelines to determine
those trans-European telecommunication networks that shall be supported in
accordance with Regulation XXX (CEF Regulation) in their development,
implementation, deployment, interconnection, and interoperability.

These guidelines provide for the objectives and
priorities of projects of common interest, identify projects of common interest
and set out criteria for the identification of new projects of common interest.

Article 2
Objectives

The projects of common interest shall:

(1)
contribute to economic growth and support the
development of the Single Market resulting in the improvement of the
competitiveness of the European economy, including small and medium sized
enterprises (SMEs).

(2)
contribute to improvements in daily life for
citizens, businesses and governments through the promotion of the
interconnection and interoperability of national telecommunication networks as
well as access to such networks.

(3)
stimulate Europe-wide deployment of fast and
ultra-fast broadband networks which, in turn, shall facilitate the development
and deployment of trans-European digital services.

(4)
facilitate sustainable deployment of
trans-European digital service infrastructures, their interoperability and
coordination at European level, their operation, maintenance and upgrading.

(5)
contribute to greenhouse gas emission
reductions, as well as protecting and improving the environment.

Article 3
Definitions

For the purposes of this Regulation, the
following definitions shall apply:

1.
"Telecommunication networks" means broadband
networks and digital service infrastructures.

2.
"Broadband
networks" means wired and wireless (including satellite) access networks,
ancillary infrastructure and core networks capable of delivering very high speed
connectivity.

3.
"Digital service
infrastructures" means networked services delivered electronically,
typically over the internet, providing trans-European interoperable services in
the public interest and having an enabling character for citizens, businesses and/or
governments.

4.
"European added value"
means the value resulting from an EU intervention which is additional to the
value that would have otherwise been achieved by Member State action alone or
an action by a group of Member States.         
For the purposes of this Regulation, the definitions set out in Regulation XXX (CEF Regulation) shall also
apply.

Article 4
Priorities for projects of common interest

Taking into account the objectives set out in
Article 2, the priorities for projects of common interest shall be:

(a)
the deployment of ultra fast broadband networks
ensuring the speed of data transmission of 100 Mbps and above;

(b)
the deployment of
broadband networks to link island, landlocked and peripheral regions with the
central regions of the Union ensuring in those regions that speeds of data
transmission are sufficient to permit broadband connectivity of 30 Mbps and
above;

(c)
the support
to core service platforms in the field of digital service infrastructures;

(d)
actions allowing to
achieve synergies and interoperability between different projects of common
interest in the field of Telecommunications, between projects of common
interest concerning different types of infrastructures, including Transport and
Energy, between project of common interest in the field of Telecommunications
and projects supported by the Structural and Cohesion funds, as well as
relevant research infrastructures.

Article 5
Projects of common interest

1.
Projects of common interest set out in the Annex
shall contribute to the achievement of the objectives set out in Article 2.

2.
A project of common interest
may encompass its entire cycle, including feasibility studies, implementation,
continuous operation, coordination and evaluation.

3.
Member States and/or other
entities in charge of the implementation of projects of common interest or
contributing to their implementation shall take the necessary legal,
administrative, technical and financial measures in compliance with the
corresponding specifications of this Regulation.

4.
The Union may facilitate the
implementation of the projects of common interest through regulatory measures,
where appropriate, through coordination, through support measures and through
financial support to stimulate their deployment and take-up, as well as public
and private investment.

5.
Actions contributing to projects
of common interest shall be eligible for EU financial support under the conditions
and instruments available under the Regulation establishing the Connecting
Europe Facility [REF]. Financial support shall be provided in accordance with
the relevant rules and procedures adopted by the Union, funding priorities and
the availability of resources.

6.
The Commission shall be empowered to adopt
delegated acts modifying the description of projects of common interest included
in the Annex, adding new projects of common interest to the Annex, or removing obsolete
projects of common interest from the Annex, in accordance with paragraphs 7, 8
and 9 below and in accordance with Article 8.

7.
While adopting the delegated act referred to in
paragraph 6 above, the Commission shall assess whether modifying the
description of project of common interest or adding a new project of common
interest responds to the needs arising from:

(a)
new technological and market developments; or

(b)
emerging political priorities; or

(c)
new opportunities for exploiting synergies
between different infrastructures, including those in the field of Transport
and Energy.

8.
In addition to the criteria established in
paragraph 7, if the delegated act concerns adding a new project of common
interest the Commission shall also assess whether such project meets
cumulatively the following criteria:

(a)
contributes to the achievement of the objectives
set out in Article 2;

(b)
is based on mature technology ready for
deployment;

(c)
demonstrates European added value.

9.
While adopting a delegated act removing an
obsolete project of common interest from Annex, the Commission shall assess
whether such project no longer responds to the needs set out in paragraph 7 or
no longer meets the criteria set out in paragraph 8.

Article 6

Cooperation with
third countries and international organisations

1.
The Union may establish
contacts, discuss, exchange information and cooperate with public authorities
or any other organisations in third countries to achieve any objective pursued
by these guidelines where such cooperation
gives rise to a European added value.
Among other objectives, this cooperation shall seek to promote the
interoperability between the trans-European telecommunication networks and
telecommunication networks of third countries.

2.
The Union may further
establish contacts, discuss, exchange information and cooperate with
international organisations and legal entities established in third countries
to achieve any objective pursued by these guidelines.

Article 7
Exchange of information, monitoring and review

1.
On the basis of information received under
Article 21 of the Regulation XXX establishing the Connecting Europe Facility, Member
States and the Commission shall exchange information about the progress made
with the implementation of these guidelines.

2.
The Commission shall be assisted by an Expert
Group, composed of a representative of each Member State, for monitoring of the
implementation of these guidelines, assisting in the
planning through the national strategies for high speed internet and mapping of
infrastructures, and exchanging information. The Expert
Group may also consider any other issue relating to the development of the
trans-European telecommunication networks.

3.
In conjunction with the
mid-term evaluation and the ex-post evaluation of the Regulation XXX
establishing the Connecting Europe Facility and after consulting the Expert
Group, the Commission shall publish a report on the progress in the
implementation of these guidelines. That report will be submitted to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions.

4.
In these reports the
Commission shall also evaluate whether the scope of the projects of common
interest continues to reflect political priorities, technological developments
or the situation in the relevant markets. For major
projects, these reports shall include an analysis of the environmental impact,
taking into account climate change adaptation and mitigation needs, and
disaster resilience. Such a review
may also be carried out at any other time when it is deemed appropriate.

Article 8
Exercise of the delegation

1.
The power to adopt delegated
acts is conferred on the Commission subject to the conditions laid down in this
Article.

2.
The delegation of power
referred to in the Articles 5(6) shall be conferred on the Commission for an indeterminate
period of time from the date of the entry into force of this Regulation.

3.
The delegation of power
referred to in Article 5(6) may be revoked at any time by the European
Parliament or by the Council. A decision of revocation shall put an end to the
delegation of the power specified in that decision. It shall take effect on the
day following the publication of the decision in the Official Journal of the
European Union or at a later date specified therein. It shall not affect the
validity of any delegated acts already in force.

4.
As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European
Parliament and to the Council.

5.
A delegated act adopted
pursuant to Article 5(6) shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of 2
months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the
Council have both informed the Commission that they will not object. That
period shall be extended by 2 months at the initiative of the European Parliament
or the Council.

Article 9
Repeal

Decision No 1336/97/EC,
as amended by Decision No 1376/2002/EC, is repealed.

Article 10
Entry into force

This Regulation shall enter into force on the
twentieth day following that of its publication in the Official Journal of
the European Union.

It shall apply from 1 January 2014.

This Regulation shall be binding in its entirety and
directly applicable in all Member States.

Done at Brussels,

For the
European Parliament                       For the Council

The President                                                 The
President

ANNEX

PROJECTS OF COMMON INTEREST

The projects of common interest shall aim for
the removal of bottlenecks which hinder the completion
of the Single Market i.e. providing connectivity to the network and
access, including across borders, to digital service infrastructures.

The deployment and
enhancement of trans-European telecommunication networks (broadband networks
and digital service infrastructures) shall contribute to fostering economic
growth, creating jobs and achieving a vibrant digital single market. In
particular, their deployment will grant faster access to the internet, bring
about information technology-enabled improvements in daily life for citizens,
including children and young persons, businesses and governments, increase
interoperability and facilitate the alignment or convergence to commonly agreed
standards.

Section 1. Horizontal
priorities

The deployment of trans-European
telecommunication networks that will help to remove the bottlenecks existing in
the digital single market shall be accompanied by studies and programme support
actions. They are:

(a)
Innovative management, mapping & services. Technical assistance measures, where necessary for deployment and
governance, shall include project and investment planning and feasibility
studies, in support of investment measures and financial instruments. Mapping
of pan-European broadband infrastructure will develop an on-going detailed
physical surveying and documentation of relevant sites, analysis of rights of
way, assessments of potential for upgrading existing facilities, etc. It should
follow the principles of the Directive 2007/2/EC (INSPIRE Directive) and
related standardisation activities. Technical assistance measures may also
support replication of successful investment and deployment models.
These actions may also include climate proofing to assess the climate related risks
and ensure disaster resilience of infrastructure, in compliance with relevant
requirements set out in EU or national legislation.

(b)
Support actions and other technical support measures. These actions are needed to prepare or support the implementation
of projects of common interest or accelerate their take-up. In the field of digital services, support actions shall also
stimulate and promote the take-up of new digital service infrastructures that
may become necessary or useful based on technological developments, changes in
the relevant markets or emerging political priorities.

Section 2. Broadband
networks

All broadband investments
within the territory of the Union expand the network capacity and bring about
benefits to all the potential users, including those in Member States other
than the country of the investment. Investment
in these networks will bring about more competition and more innovation in the economy,
will deliver more efficient and effective public services, contribute to the EU
goals on a low carbon economy and to the overall EU competitiveness and
productivity.

Investment in broadband
infrastructure has been undertaken predominantly by private investors and it is
expected that this will remain the case. However, the achievement of the
Digital Agenda targets will require investment in areas for which there is not
a clear business case or where a business case may need to be enhanced within
the time frame of the targets. The following types of areas can be characterized
on the basis of the likely investment:

Sub-urban/medium density areas are typically
served with medium speed connections but tend to lack higher speeds. Where it
is demonstrated that the business case for investments in advanced technologies
is insufficient for private investors in the short run, financial
support could generate profitable investment over the longer term by closing the viability gap and stimulate competition.

Rural and low density areas are typically
served with low speed connections and in some cases even not served at all. The
business case for investment is unlikely to be viable and the
European targets are unlikely to be reached by 2020. Investment in these areas
needs higher financial support, provided by grants, possibly in combination
with financial instruments. Such areas will include remote and sparsely
populated regions where investment costs are either very high or where income
is low. The support from the Connecting Europe Facility in these areas is
likely to complement available cohesion funds or rural development and other
direct public support.

High density/urban areas – with the exception
of some low income regions - are typically well served with medium to fast
speed connections, often provided by competitive offerings of cable and telecom
operators. Yet because of this relatively satisfactory situation the market
incentives to invest in very high speed networks such as fibre to the home are
limited. Thus financial support may be also envisaged to
investments in urban areas with dense populations which do not attract
sufficient investment despite societal benefits it would generate, provided
that it is in full compliance with Articles 101, 102
and 106 of the Treaty on the Functioning of the European Union, as well as, if
relevant, with the Community Guidelines for the application of state aid rules
in relation to rapid deployment of broadband networks.

In less developed regions, the support to the
deployment of broadband networks should be provided primarily through the
instruments of Structural and Cohesion funds. Grants and / or financial instruments from the Connecting Europe
Facility may complement such support where necessary to achieve the objectives
of this Regulation. The achievement of synergies between the CEF actions in
those regions and the support from the Structural and Cohesion Funds may be
reinforced by using an appropriate coordination mechanism.[16]

The classification of regions to the above
categories is indicatively provided by the map below.

Actions contributing to the project of common
interest in the field of broadband networks shall constitute a balanced
portfolio including actions contributing to both the 30Mbps and the 100Mbps
Digital Agenda targets, covering suburban and rural areas in particular, as
well as areas across the European Union.

Actions contributing to the
project of common interest in the area of broadband networks, irrespective of
the technology used, shall:

(a)
Support investments in broadband networks capable
of achieving the Digital Agenda 2020 target of universal coverage at 30Mbps; or

(b)
Support investments in broadband networks capable
of achieving the Digital Agenda 2020 target and of having at least 50% of
households subscribing to speeds above 100Mbps;

(c)
Comply with applicable law, in particular with
competition law

and shall consist in particular of one or more of
the following actions:

(a)
The deployment of passive physical infrastructure
or the deployment of combined passive and active physical infrastructure and
ancillary infrastructure elements, complete with services necessary to operate
such infrastructure;

(b)
Associated facilities and associated services, such
as building wiring, antennae, towers and other supporting
constructions, ducts, conduits, masts, manholes, and cabinets;

(c)
Exploitation of potential synergies between the
roll-out of broadband networks and other utilities networks (energy, transport,
water, sewerage, etc), in particular those related to smart electricity distribution.

The deployment of broadband networks to connect island, landlocked and peripheral regions with central regions of the Union, including
where necessary submarine cables, will be supported where it is essential to ensure access by isolated communities to
broadband at 30 Mbps and above. This support should complement other funds,
whether EU or national, available for this purpose.

For the avoidance of doubt, services providing,
or exercising editorial control over, content transmitted using electronic
communications networks and services and information society services as
defined in Article 1 of Directive 98/34/EC, which do not consist wholly or
mainly in the conveyance of signals on electronic communications networks, are
not covered by the scope of the actions contributing to the project of common
interest in the field of broadband networks.

Beneficiaries of EU support for the project of
common interest in the area of broadband include, but are not limited to:

(a)
Telecom operators (incumbent, whether investing
directly or through a subsidiary or new-entrant) launching investments in fast
and ultra fast broadband networks.

(b)
Utility companies (e.g. water, sewage, energy,
transport), which are expected to invest in passive broadband networks, either
alone or in partnership with operators.

(c)
Regional decision makers, including municipalities,
who may establish concessions for broadband infrastructures. Equipment
providers may be interested in such an arrangement, via the creation of a
special purpose company.

(d)
Partnerships between several operators active in
wired and wireless markets to build new generation of infrastructures.

In building the portfolio due account shall be
taken of Member States' investment needs in terms of the number of households to
be connected with the support of the Connecting Europe Facility.

In addition, high speed connections to public
internet access points, notably in public facilities, such as schools,
hospitals, local government offices and libraries, shall also be supported.

Section 3. Digital Service Infrastructures

The implementation of
digital service infrastructures shall contribute to the realisation of digital
single market by removing existing bottlenecks in terms of service deployment.
This will be achieved through the creation and/or enhancement of interoperable
digital service infrastructure platforms, accompanied by essential basic
digital service infrastructures. It shall rely on a two-layer approach:

(1)
Core service platforms are the central element(s) or hub(s) of the digital service
infrastructures essential to ensure trans-European connectivity, access and
interoperability. This may also encompass physical equipment, such as servers,
dedicated networks and software tools. Core service platforms are open to entities
in all Member States.

(2)
Generic services
provide the functionality and content of digital service infrastructures. They
may be interconnected through a core service platform.

The projects of common
interest in the field of digital service infrastructures are the following:

Trans-European high-speed backbone
connections for public administrations

A public trans-European backbone service
infrastructure will provide very high speed and connectivity
between public institutions of the EU in areas such as
public administration, culture, education and health. This backbone
infrastructure will support public services of European value through
controlled quality of services and secure access. It will therefore guarantee a
digital continuum of public service provisioning for the greater benefit of
citizens, businesses and administrations. It will allow demand aggregation for
connectivity, reaching critical mass and reducing costs.

Core service platform:

The infrastructure will be based on the
existing Internet backbone and where necessary new networks will be deployed.
Connections will be made directly or through regionally- or nationally-managed
infrastructures. In particular it will provide connectivity for other trans-European
services inter alia those mentioned in this Annex. This infrastructure will be
fully integrated in the Internet as a key capacity for trans-European public
service and will support the adoption of emerging standards (e.g. Internet
protocols such as IPv6[17]). Dedicated underlying infrastructure for connecting public
administrations may be considered if necessary for security reasons.

Generic services:

The integration of the
core platform into the European public services will be facilitated by the
deployment of generic services: authorisation, authentication, inter-domain
security and bandwidth on demand, federation of services, mobility management,
quality control and performance control, integration of national
infrastructures.

Interoperable 'cloud computing' service will
provide the backbone infrastructure functionality on which clouds for
trans-European public services can be offered. This includes network-type of
trans-European services such as video-conference, virtualised storage and
supporting computing-intensive applications, including those related to other
projects of common interest.

Cross-border delivery of
eGovernment services

eGovernment refers to the
digital interaction between public authorities and citizens, public authorities
and businesses and organisations, and among public authorities of different
countries. Standardised, cross-border, and user-friendly interaction platforms
will generate efficiency gains both throughout the economy and in the public
sector and will contribute to the Single Market.

Core service platform:

Interoperable electronic
identification and authentication across Europe. A set of connected and secured authentication servers and
protocols that ensure interoperability of the variety of authentication and
identification and authorization systems that exist in Europe will be deployed.
This platform will enable citizens and businesses to access online services
when needed for example to study, work, travel, get health care or do business
abroad. It will constitute the core layer for all those digital services for
which electronic identification and authentication are needed: e.g. electronic
procurement, online health services, standardised business reporting, electronic
exchange of judicial information, trans-European online company registration, e-Government
services for businesses, including communication between business registers
relating to cross-border mergers and foreign branches. This platform may also
use resources and tools of the multilingual core platform.

Generic services:

(a)
Electronic procedures for setting up and
running a business in another European country:
This service will allow dealing with all necessary administrative procedures
electronically across borders through Points of Single Contact. This service is
also a requirement the Directive 2006/123/EC on services in the internal
market.

(b)
 Interoperable cross-border electronic
procurement services: This service will enable any company in the EU to
respond to European public tenders from any Member State covering pre-award and
post-award electronic procurement activities, integrating activities such as Electronic Submission of offers, Virtual Company Dossier, eCatalogues, eOrders and eInvoices.

(c)
 Interoperable cross-border e-Justice
services: This service will enable the online cross-border access of
citizens, businesses, organisations and legal practitioners to legal
means/documents and judicial procedures. It will enable the online cross border
interaction (via online data and document exchange) between legal authorities
in different Member States and improve with this the ability to process cross
border legal cases more efficiently;

(d)
Interoperable cross border eHealth services: These services will enable the interaction between
citizens/patients and health care providers, institution-to-institution and
organization-to-organization transmission of data, or peer-to-peer
communication between citizens/patients and/or health professionals and
institutions. The infrastructure to be deployed will comply with the principles of data protection as set out, in particular, in
Directives 95/46/EC and 2002/58/EC, as well as with international
and national ethical rules related to the use of patient health records and
other personal data.
The services will comprise cross border access to
electronic health records and electronic prescription services as well as
remote health/assisted living tele-services, cross border multi lingual
semantic services linked to the multilingual core platform, access to social
security information building on the EESSI (Electronic Exchange of Social
Security Information) infrastructure, etc.

(e)
European Platform for the interconnection
of European business registers: This facility will
provide a set of central tools and services enabling business registers in all
Member States to exchange information on registered businesses, their branches,
mergers and wind-ups. It will also provide a multi-country and multilingual
search service for users using a Central Access Point accessible via the
e-Justice portal.

Enabling access to public sector information
and multilingual services

Access to digital resources of European
heritage

The objective of this
infrastructure is to make available large collections of European cultural
resources in digital form and foster their re-use by third parties, in full
compliance with copyright and related rights.

Core service platform:

The development of the core
service platform will build on the current Europeana portal. The platform –
which requires the development, operations and administration of distributed
computing, data storage facilities and software - will provide a single access
point to European cultural heritage content at item level, a set of interface
specifications to interact with the infrastructure (search for data, download
data), support for the metadata adaptation and ingestion of new content, as
well as information on conditions for reuse of the content accessible through
the infrastructure.

It will also provide the
means for establishing an interaction with content providers, users (citizens
accessing the portal) and re-users (creative industries), for the promotion of
the platform, coordination of related networks and information exchange.

Generic services:

(a)
Aggregation of content held by cultural
institutions and private content holders in the Member States

(b)
Crowd-sourcing facilities encouraging
interactivity and enabling users to make an active contribution to the site

(c)
User-friendly services for the portal addressing
issues such as search and browsing improvements as well as cross-language
access

(d)
Exchange of rights information and licensing
infrastructures;

(e)
Competence centres on digitisation and
preservation of digital cultural heritage

(f)
Content repositories for cultural institutions
and user-generated content and their long-term preservation

Access to re-usable
public sector information

This digital service infrastructure will enable
access for re-use to disclosable information held by the public sector in the EU.

Core service platform:

Distributed computing, data storage and
software facilities will provide: single access point to multilingual (all EU
official languages) datasets held by public bodies in the EU at European,
national, regional and local level; query and visualisation tools of the data
sets; assurance that the available datasets are licensed to be published and
re-distributed, including a data provenance audit trail; a set of application
programming interfaces for software clients to interact with the infrastructure
(search for data, gather statistics, download data) for the development of
third-party applications. It shall also allow for collection and publication of
statistics about the operation of the portal, the availability of data and
applications and the way in which they are used.

Generic services:

Gradual extension of the access to all datasets
held and made public by virtually all public administrations within the EU,
including multilingual search, which will be achieved by the following:

(a)
aggregation of international/EU/national/regional/local
datasets;

(b)
interoperability of datasets, including legal
and licensing issues, to enable better re-use;

(c)
interface to open data infrastructures in third
countries;

(d)
data repositories and long-term preservation
services.

Multilingual access to online services

This service infrastructure
will enable any current and future online service providers to offer their
content and services in the widest range of EU languages in the most
cost-effective way.

Core service platform:

The platform will enable
acquiring, maintaining and making available large collections of live language
data and reusable language processing tools. It will cover all EU languages and
will comply with the relevant standards and agreed service and legal
requirements. The platform will allow for flexible addition, curation and
refinement of language data and tools by contributors, and ensure easy, fair
and secure access and repurposing of such resources by organisations offering
or developing language-enabled services. The platform will also support
cooperation and interworking with similar initiatives and data centres,
existing or forthcoming, within and outside the EU.

Generic services:

The platform will be
populated with a broad range of reusable data and software resources, covering
all EU languages. It shall assemble, harmonise and integrate such data and
software elements within a distributed service infrastructure. It shall make
available and in some areas develop or extend data and software resources to be
used as building blocks to develop, customise and deliver multilingual services
or multilingual gateways to online services.

Safety and security

Safer internet service infrastructure

The support will provide integrated and
interoperable services at European level, based on shared awareness, resources,
tools and practices and aimed at empowering children, their parents and carers,
and teachers to make the best use of the Internet.

Core service platform:

The core service platform will allow for
acquiring, operating and maintaining shared computing facilities, databases and
software tools for the Safer Internet Centres (SICs) in the Member States, as
well as back-office operations to handle the reporting on sex abuse content
including the link with policy authorities including international
organisations such as Interpol, and when appropriate, the handling of the take
down of this content by the relevant web sites. This will be supported by
common databases.

Generic services:

(a)
Help-lines for children, parents and carers on
the best means for kids to use the Internet avoiding threats from harmful and
illegal contents and behaviours, and the supporting back-office infrastructure.

(b)
Hotlines for reporting on illegal child
sex-abuse content on the Internet

(c)
Tools to ensure access to age-appropriate
content and services,

(d)
Software that allows easy and fast reporting of
illegal content and its takedown, as well as reporting of grooming and
bullying.

(e)
software systems that allow better
identification of (not reported) child sexual abuse content on the internet as
well as technologies to support police investigations, especially with a view
to identifying child victims, perpetrators and commercial trading of such
content.

Critical Information Infrastructures

Communication channels and platforms will be
developed and deployed in order to enhance the EU-wide capability for
preparedness, information sharing, coordination and response.

Core service platform:

The core service platform will consist of a
network of National/Governmental Computer Emergency Response Teams (CERTs) based
on a minimum set of baseline capabilities. The network will provide the
backbone of a European Information Sharing and Alert System (EISAS) for EU
citizens and SMEs.

Generic services:

(a)
Proactive services – technology watch and
dissemination and sharing of security-related information; security
assessments; providing guidelines on security configuration; providing
intrusion detection services;

(b)
Reactive services – incident handling and
response; issuing alerts and warnings; vulnerability analysis and handling,
artefact handling (proving high-quality alerts on new malware and other artefacts).

Deployment of
information and communication technology solutions for intelligent energy
networks and for the provision of Smart Energy Services

Smart energy services use
modern information and communication technologies to meet the needs of citizens
(who can be producers as well as consumers of energy), energy providers and
public authorities. Smart energy services cover the interaction between
citizens and energy providers, organization-to-organization data transmission,
and peer-to-peer communication between citizens. They open up opportunities for
existing and new actors in both the telecoms and the energy markets (e.g.
Energy Service Companies ESCOs). They can also enable companies and citizens to
trace the greenhouse gas emissions of their purchase decisions.

Core Service Platforms

Communications infrastructure, typically deployed
by utilities in partnership with telecom operators, as well as the necessary IT
hardware to be embedded in energy components (e.g. substations). They also
include the core services that enable monitoring of assets, control for power
management, automation and data management and communication between the
different actors (service providers, network operators and other utilities,
consumers, etc).

Generic Services:

Generic Services will be typically delivered by
a wide range of new and innovative actors, such as energy service providers,
ESCOs, energy aggregators facilitating especially the entry of different types
of local SMEs and preventing monopolisation of the retail market.

They will make available the functionality for
customers to manage their energy demand, their renewable energy sources and
their storage capacity, with the aim of optimising their energy use, reducing
energy bills and greenhouse emissions, while ensuring data privacy and security.

(a)
Smart metering infrastructure to measure and
communicate information on energy consumption. Generic Services also include
customer premises energy management equipment, i.e. IT hardware devices
associated to home area networks that are connected to the smart meter

(b)
Software agents able to decide when to buy/sell
energy, when to switch on/off appliances in function of price signals from the
energy provider, weather forecast information, data management and
communication, control and automation devices and their networked solutions.

[1]               COM(2010)
2020.

[2]               COM(2010) 245.

[3]               COM(2011)
500/I final and COM(2011) 500/II final (Policy Fiches).

[4]               Add reference

[5]               Figures are provided in constant 2011 prices

[6]               OJ C [...], [...], p. [...].

[7]               OJ C [...], [...], p. [...].

[8]               COM(2010) 245 final/2.

[9]               COM(2010) 472.

[10]             COM(2011) 500 final.

[11]             OJ [...], [...], p. [...].

[12]             L 251, 25.9.2010, p. 35.Ref

[13]             OJ L 260, 3.10.2009, p. 20.

[14]             OJ L 88, 4.4.2011, p. 45.

[15]             OJ L 183, 11.7.1997, p. 12.

[16]             As set out in Article 11 (e) of
the Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development
Fund, the European Social Fund, the Cohesion Fund, the European Agricultural
Fund for Rural Development and the European Maritime and Fisheries Fund covered
by the Common Strategic Framework and laying down general provisions on the
European Regional Development Fund, the European Social Fund and the Cohesion
Fund and repealing Regulation (EC) No 1083/2006. COM(2011)
615 final

[17]             Reference to ipv6
communication: COM(2008)313 advancing the Internet, action plan for the
deployment of Internet Protocol version 6 (IPv6) in Europe.