No C 356/66 Official Journal of the European Communities 31. 12. 85 
Proposal for a Council Regulation instituting a Community programme for the development 
of certain less-favoured regions of the Community by improving access to advanced telecom­
munications services (STAR programme) 
COM (85) 836 final 
(85/C 356/13) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, 
Having regard to Council Regulation (EEC) No 1787/84 
of 19 June 1984 on the European Regional Development 
Fund(1), and in particular Article 7 (4) thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas Article 7 of Regulation (EEC) No 1787/84, 
hereinafter referred to as the Fund Regulation, provides 
for participation by the Fund in Community pro­
grammes the purpose of which is to help in solving 
serious problems affecting the socio-economic situation 
in one or more regions and which are designed to 
provide a better link between the Community's objec­
tives for the structural development or conversion of 
regions and the objectives of other Community policies; 
Whereas the regions in Greece and Ireland, the Mezzo-
giorno, Northern Ireland, Corsica and the French over­
seas departments, and regions in Spain and Portugal 
have to contend with particularly serious economic 
problems; whereas the level of telecommunications ser­
vices, especially advanced services intended for the pro­
ductive sector in those regions is inadequate; whereas 
this shortcoming has an adverse effect not only on their 
socio-economic situation but also on their development 
prospects; 
Whereas, on 29 and 30 March 1985, the European 
Council endorsed objectives aimed at strengthening the 
technological base and competitiveness of Community 
industry; whereas those objectives include achieving a 
breakthrough in telecommunications; whereas one of 
the lines of action adopted on 17 December 1984 by 
the Council of Ministers in this field is designed to 
ensure improved access for less-favoured regions of 
the Community to the benefits of the development of 
advanced services and networks; 
Whereas fuller integration of the least-favoured regions 
into telecommunications networks and appropriate use 
by them of advanced telecommunications services are 
necessary if they are to narrow the economic develop­
ment gap separating them from the rest of the Com­munity since such services will reduce their isolation, 
will allow them to participate in the Community's 
technological breakthrough and will foster job creation; 
Whereas use of advanced telecommunications services 
presupposes the establishment of the necessary infra­
structures such as major links for the regions to the 
new networks, digitalization to promote more rapid 
introduction of integrated-services digital networks, the 
laying of superimposed networks notably in the field 
of high-speed data transmission, and the establishment 
and development of cellular radio infrastructures com­
patible with the development of a Community system; 
Whereas the establishment of modern telecommuni­
cations infrastructures must be accompanied by meas­
ures to promote the supply of, and the demand for, 
advanced services facilitating optimum use of those 
infrastructures; whereas such promotion includes aid 
for the preparation of regional or local programmes 
for the coordinated use of telecommunication systems, 
advisory and publicity measures, demonstration pro­
jects, aid to promote the take-up of the services avail­
able (notably by small and medium-sized enterprises by 
making it easier for them to purchase terminals and by 
providing them with the requisite technical assistance), 
service centres, experimental tele-commuting projects 
and the development of regional specialized infor­
mation services; 
Whereas the Member States concerned have communi­
cated the necessary information to the Commission; 
Whereas, by helping the least-favoured regions to 
exploit the new telecommunications potential, the 
Community programme contributes to the furtherance 
of both regional development objectives and the Com­
munity's objectives in the field of telecommunications; 
whereas the level of Community participation must 
therefore be the maximum permissible under the Fund 
Regulation and whereas, at the same time, the pro­
gramme is given priority in the management of Fund 
resources; 
Whereas some of the regions concerned qualify for 
the measures laid down in Council Regulation (EEC) 
No 2088/85 of 23 July 1985 concerning the integrated 
Mediterranean programmes(5), which permits Com­
munity financing over and above the ceilings fixed by 
the provisions governing the Community's Funds; 
Whereas Community assistance must be provided in 
the form of multiannual programmes drawn up by 
(!) OJ No L 169, 28. 6. 1984, p. 1. (2) OJ No L 197, 27. 7. 1985, p. 1. 
31. 12. 85 Official Journal of the European Communities No C 356/67 
the Member States concerned in consultation with the 
Commission and whereas it is for the Commission, in 
adopting those programmes to ensure that the oper­
ations proposed therein are in keeping with this Regu­
lation, 
HAS ADOPTED THIS REGULATION: 
Article 1 
A .Community programme within the meaning of 
Article 7 of the Fund Regulation that contributes to the 
development of certain less-favoured regions of the 
Community by improving access to advanced telecom­
munications services is hereby established. 
Article 2 
The purpose of the Community programme shall be to 
contribute to strengthening the economic base in the 
regions concerned by improving the supply of advanced 
telecommunications services, to foster job creation and 
to help raise technological standards in those regions. 
To this end, the programme shall provide for the 
implementation of a series of consistent, multiannual 
measures establishing modern telecommunications 
infrastructures and promoting the supply of, and the 
demand for, advanced telecommunications services. 
The Community programme shall thereby seek to pro­
vide a better link between the Community's objectives 
for the structural development of regions and the objec­
tives of Community telecommunications policy. 
Article 3 
1. The Community programme shall concern 
regions: 
(a) which face a particularly difficult economic situ­
ation compared with the Community as a whole; 
(b) which are located at the periphery of the Com­
munity or on an island; 
(c) in which the supply of telecommunications ser­
vices, notably advanced services for the productive 
sector, is inadequate; 
(d) which are normally covered by a national regional 
aid scheme. 
2. The regions satisfying the conditions set out in 
paragraph 1 are: 
(a) in Spain: ...(1); 
(b) in France: Corsica and the overseas departments; 
(*) The regions will be determined by the Commission once the 
regional State aid scheme submitted by the Member State 
under Articles 92 and 93 of the EEC Treaty has been declared 
compatible with the common market pursuant to Article 92 
of the Treaty. (c) in Greece: all regions, including the prefecture of 
Attiki; 
(d) in Ireland: all regions; 
(e) in Italy: the regions and zones of the Mezzogiorno; 
(f) in Portugal: ...(*); 
(g) in the United Kingdom: Northern Ireland. 
Article 4 
The Fund may participate, under the Community pro­
gramme, in the following operations: 
1. Establishment of the basic equipment needed for 
advanced telecommunications services in order: 
(a) to integrate the less-favoured regions into the 
new advanced telecommunications networks 
being set up across the Community, including, 
where appropriate, the extension of the broad­
band transnational digital network planned for 
the Community, and to provide major telecom­
munication links. Investment projects may 
include land-based (including submarine) sys­
tems, notably those using optical fibres, and 
satellite systems; 
(b) to encourage digitalization with a view to more 
rapid introduction of integrated-services digital 
networks for firms and consumers. Investment 
projects may include the digitalization of links 
to final users, additional work on local switch­
es, the possible introduction of the signalling 
systems between switches that are essential to 
integrated-services digital networks and, where 
appropriate, more rapid digitalization of trans­
mission lines and switching centres; 
(c) to set in place, pending the introduction of 
integrated-services digital networks, superim­
posed networks essential to the provision of 
advanced telecommunications services, notably 
in the field of data transmission. Investment 
projects may include establishment of the 
major transmission lines and provision of 
equipment enabling the public to use the ser­
vice, and particularly the transformation of 
pilot schemes already financed by the Com­
munity into fully-operational systems; 
(d) to establish and develop cellular radio infra­
structures compatible with the development of 
a Community system; 
(e) feasibility studies relating to the investment 
projects specified in (a) to (d). 
No C 356/68 Official Journal of the European Communities 31. 12. 85 
2. Promotion of the supply of, and the demand for, 
advanced telecommunications services. The follow­
ing operations shall be eligible under this heading: 
(a) preparation of local or regional programmes 
for the coordinated use of advanced telecom­
munications systems. This shall include techni­
cal and economic feasibility studies on the pro­
vision of new telecommunications services to 
users, notably small and medium-sized enter­
prises (SMEs) in the industrial and service sec­
tors, including tourism; such studies shall form 
part of broader development strategies for 
specific areas, sectors or groups of firms; (ii) providing common services for two or 
more SMEs; 
(f) implementation of experimental tele-commut­
ing projects; 
(g) the provision of regional services using compu­
terized telecommunications facilities in the 
sphere of specialized information, including 
information compiled at Community level and 
of particular interest to certain users, notably 
SMEs, including in the field of tourism. 
(b) measures to promote the use of advanced tele­
communications services. Such measures shall 
include publicity and information campaigns 
aimed at making potential users aware of the 
existence and advantages of modern telecom­
munications services, either through conven­
tional marketing channels or by way of sem­
inars, courses and briefings. Priority shall be 
given to measures for SMEs, including in the 
field of tourism and in other sectors with a 
high development potential; Article 5 
The Community programme shall be financed jointly 
by the Member State concerned and the Community. 
Assistance from the Fund, which may not exceed 55 % 
of the total public expenditure taken into account in the 
programme, shall be provided from the appropriations 
entered for this purpose in the general budget of the 
European Communities. The Community contribution 
shall be as follows: 
(c) measures to demonstrate, by means of specific 
integrated applications, the advantages of 
using advanced telecommunications services. 
Such programmes shall include demonstration 
projects for SMEs, including in the field of 
tourism and in other sectors with a high devel­
opment potential; 
(d) aid to encourage individual SMEs or groups 
of SMEs to use advanced telecommunications 
services. 
Such aid may take the form of: 
(i) expert studies on the potential economies 
to be achieved through greater use of 
advanced telecommunications services, 
including computerized services available 
via data-transmission networks; 
(ii) if the studies referred to in (i) so justify, 
equipment (such as terminals and 
modems) giving users access to advanced 
telecommunications services; 1. Operations relating to the basic equipment referred 
to in Article 4(1): 
(a) infrastructure investment projects financed 
wholly or partly by public authorities or by an 
equivalent body responsible for the implemen­
tation of infrastructure projects: 55 % of the 
total public expenditure borne by a public 
authority or equivalent body; 
(b) investment projects in the industrial, craft 
industry and service sectors: 50 % of the public 
expenditure resulting from the grant of invest­
ment aid; 
(c) feasibility studies: either 70 % of their cost or 
50 % of the public expenditure resulting from 
the granting of aid in respect of them. 
Promotion of the supply of, and the demand for, 
advanced telecommunications services: 
(e) establishment and development of telecom­
munications service centres, outside the main 
urban areas, with a view to: 
(i) providing user services, including 
advanced data-transmission and video-
communication services, notably in sparse­
ly populated areas; (a) studies relating to the preparation of local or 
regional programmes referred to in Arti­
cle 4 (2)(a): 50 % of public expenditure; 
(b) measures to promote the use of advanced tele­
communications services referred to in Arti­
cle 4(2)(b): aid covering 50% of the cost of 
publicity and information campaigns; 
31. 12. 85 Official Journal of the 
(c) demonstration measures referred to in Article 
4 (2)(c): 50 % of public expenditure; 
(d) operations to encourage investment in SMEs 
referred to in Article 4 (2)(d): 
(i) expert studies: either 70 % of their cost or 
50 % of the public expenditure resulting 
from the granting of aid in respect of them; 
(ii) equipment: 50 % of the public expenditure 
resulting from the grant of investment aid; 
(e) establishment and development of telecom­
munications services centres referred to in 
Article 4(2) (e): 
(i) operations relating to user service centres: 
50 % of the public expenditure resulting 
from the granting of aid for equipment 
associated with telecommunications; 
(ii) for operations relating to common ser­
vices: 50 % of the public expenditure 
resulting from the granting of aid; 
(f) implementation of experimental tele-commut­
ing projects referred to in Article 4 (2)(f): 
(i) feasibility studies: either 70 % of their cost 
or 50 % of the public expenditure resulting 
from the granting of aid; 
(ii) project implementation: 50 % of the public 
expenditure resulting from the granting of 
aid; 
(g) provision of regional services in the sphere of 
specialized information referred to in 
Article 4(2)(g):'aid covering part of business 
expenditure on the development and operation 
of such services; The aid shall be degressive 
and shall be granted for three years. It shall 
cover 70 % of expenditure in the first year and 
shall not exceed 50 % of total expenditure over 
the three-year period. 
Article 6 
1. All or part of the aid may be in the form of a capital 
grant or an interest subsidy. 
2. The following shall be eligible for Fund assistance 
in respect of operations referred to in Article 5: 
public authorities, local and regional authorities, 
other bodies, businesses or individuals. 
3 (a) Aid granted under the Community programme 
shall not be combined with aid provided for in European Communities No C 356/69 
the Fund Regulation or with other forms of 
Community assistance, except in the forms 
expressly provided for by the Council, including 
in Regulation (EEC) No 2088/85; 
(b) In addition, the aids referred to in 
Article 5 (2) (d), (e), (f) and (g) may not have 
the effect of reducing the share of expenditure 
met by recipient businesses to less than 20% 
of total expenditure. 
Article 7 
The component authorities in each of the Member 
States concerned shall, in consultation with the Com­
mission, draw up within a period of six months from 
the entry into force of this Regulation an intervention 
programme satisfying the following conditions: 
— it shall contain the particulars referred to in the 
Annex to this Regulation, 
— it shall fall within the framework of the regional 
development programmes referred to in Article 2 (3) 
of the Fund Regulation, 
— an appropriate share of the Fund's contribution 
shall be earmarked for the least-favoured regions 
covered by the programme, 
— the programme shall comprise regional or local 
and, where appropriate, sectoral sub-programmes 
depending on the operations prescribed in Arti­
cle 4; the sub-programmes shall be extensive enough 
to warrant implementation of the promotional 
measures provided for in Article 4 (2), 
— the Fund's contribution to the promotional meas­
ures provided for in Article 4(2) may not be less 
than 10 % of the total contribution to the pro­
gramme, 
— the programme shall cover projects that are consist­
ent with the Community's objectives regarding tele­
communications and information technology stan­
dards, particularly in view of the progress made 
towards these objectives by the European Confer­
ence of Postal and Telecommunications adminis­
trations (CEPT) and the European Committee for 
Standardization (CEN)/European Committee for 
Electro-technical Standardization (Cenelec). 
Article 8 
1. The duration of the programme shall be five years 
from the date of entry into force of this Regulation. 
2. The intervention programme shall be submitted 
to the Commission for adoption as a programme agree­
ment in accordance with Article 13 (1) of the Fund 
Regulation. The Commission shall establish that the 
programme is compatible with Article 44 of the Fund 
Regulation. 
No C 356/70 Official Journal of the European Communities 31. 12. 85 
3. In addition to publication of the decisions con- adopting the programme agreement referred to in 
cerning the grant of Fund assistance for the programme, Article 8(2). 
the programme adopted shall be published by the Com­
mission for information purposes. A tl 1f) 
This Regulation shall enter into force on the day follow-
. ing its publication in the Official Journal of the Euro-
r l e pean Communities. 
The amount of Fund assistance may not exceed This Regulation shall be binding in its entirety and 
the amount laid down by the Commission when directly applicable in all Member States. 
Annex 
The intervention programme, broken down, where appropriate, by region and comprising the particulars 
listed in Article 8 of the Fund Regulation and some further particulars, shall be drawn up on the basis of the 
following outline: 
1. General information 
(a) a concise analysis of the situation and prospects in the telecommunications field and the interrelation­
ship between them and the socio-economic situation; 
(b) a brief description of measures adopted to meet requirements in the field of telecommunications 
services, indicating the bodies responsible; 
(c) the amount of expenditure incurred in previous years and that forecast for the period covered by 
the programme. 
2. Basic equipment for the provision of advanced telecommunications services 
(a) an analysis of the situation and prospects in each of the fields mentioned in Article 4 (1) and a 
description of the measures already adopted and, where appropriate,, existing aid schemes indicating 
the average amount of public expenditure involved each year; 
(b) in relation to the operations referred to in Article 4 (1): 
(i) forecasts for investment projects in new international telecommunications networks; an indi­
cation of the main telecommunication links planned; information concerning the systems to be 
used (land-based, satellite, etc.); location of projects; 
(ii) forecasts for investment projects in digitalization; indication of the fields involved: connections 
to users, local switches, signalling systems between switches, transmission lines, switching 
centres; details of how such work ties in with the introduction of integrated-services digital 
networks; location of projects; 
(iii) forecasts for investment projects associated with the establishment of superimposed networks, 
notably in the field of high-speed data transmission; indication of the major transmission lines 
and the equipment providing the public with access to these services; location of projects; 
(iv) forecasts for investment projects involving the establishment and development of cellular radio 
infrastructures; details as to the compatibility of such infrastructures with the development of a 
Community system; location of projects; 
(v) forecasts relating to feasibility studies; 
(vi) expected results, in quantified form, of the investments specified in (i) to (v), in terms of 
economic activity, job creation and technology transfers. 
3. Promotion of the supply of, and the demand for, advanced services 
(a) an analysis of the situation and needs in these fields and a description of feasibility studies, 
surveys or information campaigns undertaken and of existing aid schemes for the use of advanced 
telecommunications services, indicating the average amount of public expenditure involved each 
year; 
31. 12. 85 Official Journal of the European Communities No C 356/71 
(b) operations referred to in Article 4 (2): 
(i) forecasts relating to the preparation of regional or local programmes for the coordinated use 
of advanced telecommunications systems; forecasts for feasibility studies; indication of the 
broader development strategies of which such studies form part; 
(ii) forecasts relating to the promotion of the use of advanced services; details of measures; 
indication of the sectors concerned; 
(iii) forecasts relating to demonstration projects; indication of the sectors concerned; 
(iv) forecasts relating to aids for SMEs in respect of equipment and expert studies; details of aid 
schemes to be set up; 
(v) forecasts relating to telecommunications service centres; location of centres; population and 
sectors served; 
(vi) forecasts relating to experimental tele-commuting projects; location of projects; sectors con­
cerned; proposed evaluation methods; 
(vii) forecasts relating to regional specialized-information services; indication of data available 
including data compiled at Community level; indication of the sectors concerned; 
(viii) expected results, in quantified form, of the various measures and operations specified in (i) to 
(vii), in terms of economic activity, job creation and technology transfers. 
4. The programme as a whole 
(a) summary of objectives; 
(b) timetable; 
(c) estimates of the volume of public expenditure connected with the programme's implementation, 
including an annual breakdown of such expenditure for each of the operations envisaged and a clear 
indication of the various national and Community sources of finance; 
(d) in so far as this information has not been identified with sufficient accuracy in the regional 
development programme, a description of the existing or future public measures which it is intended 
to implement alongside the special programme; 
(e) an indication of the authorities or bodies responsible for carrying out the various parts of the 
programme and the coordination arrangements; 
(f) details of the Commission's involvement in the programme follow-up; 
(g) arrangements for publicizing ERDF aid, the purpose being to make potential beneficiaries and trade 
and industry aware of the opportunities offered by the programme and of the role played by the 
Community.