COMdISSION OF THE EUROPEAN COI\t\ruNITIES 
COM (90) 490 final 
Brussels, 20 November 1990 
Towards Europe-wide systems. and services -
. . 
. . . . . . . 
Green_ Paper on a common approach· in thefield of · 
satellite·communications in the Europea~ Community-.· 
ComQtunication from the Commission 
SHORT PRESENTATION 
Satellite communications have developed dramatically during recent years. As the 
European Community approaches the Europe-wide market of 1992, satellite 
communications are becoming a vital element for the trans-European services and 
networks needed for the single European market, and the broader continental dimension 
which is developing from the revolutionary changes in Eastern Europe. 2 
Since satellite communications represent by far the largest commercial application for 
satellite technology, they will determine, to a large extent, the commercial success of 
Europe's effort to gain a strategic and future-proof position in space. They have developed 
into an essential element of the common European audio-visual space, which is a central 
precondition for Europe's future political and cultural identity and coherence. 
This Communication is being written at a time when the European Community is about to 
achieve its aim of completing the internal market by 1992. Satellite communications can 
make an important contribution to this process, given the appropriate regulatory and 
market developments. 
In the field of satellite communications the challenge is particularly great. The 
Community's internal market is still highly compartmentalized. This may, if no changes are 
brought about, hamper the development of its satellite industry, which is still in its infancy 
in service terms -despite its advanced position in technological terms. This 
compartmentalisation has not allowed the appropriate use of the potential of the new 
sate~ite communications technologies for the provision of Europe-wide systems and 
services. 
The need for change is therefore undeniable. The compartmentalisation of the 
Community's satellite communications market cannot be maintained in view of 1992. 
Abolishing these restrictions is not only in the interest of users, service providers and 
equipment manufacturers, but also in the interest of the Member States themselves. The 
Commission's move for liberalisation in the field of terrestrial telecommunications, based 
on the Green Paper for the development of a common market for telecommunications 
services and equipment, was supported by all Member States, since they were convinced 
that they would otherwise forego the potential growth of this market, the business 
opportunities for their industry and the supply of their users with advanced 
telecommunications services. 
In the field of satellite communications, the same considerations apply. 
Furthermore, the recent changes in Eastern Europe define a range of applications which 
may prove particularly suited to sat~llite technology. Only with a lifting of restrictive 
national regulations within the Community, thereby allowing the implementation of 
Europe-wide satellite terminal networks, can the European Community play a full role in 
meeting the emerging satellite communications needs of its Eastern neighbours. Otherwise 
Central and Eastern Europe's satellite technology and equipment needs are likely to be 
met by suppliers from third countries, who can build on the existence of major satellite 
terminal networks already implemented in their home countries due to their more liberal 
regulatory regime. 
Several Member States have already liberalised parts· of their satellite communications 
sector on their own initiative. In particular, some Member States have authorised a 
number of operators to provide satellite services across borders towards other Member 
States. This raises a number of questions with regard to fundamental principles of the 
Treaty of Rome such as the free circulation of goods and services. It is important that 
these questions be resolved at Community level so that divergent national solutions are 
avoided. 3 
The objective of this communication is to prevent such a divergent situation by proposing a 
future-oriented structure for the development of satellite communications for the Single 
Market of 1992. 
The paper intends to extend the application of the general agreed principles of Community 
telecommunications policy to satellite communications, taking into account the specificities 
of this means of communication. Four major changes are proposed: 
Full liberalisation of the earth segment, including both receive-only and 
transmit/receive terminals, subject to appropriate type approval and licensing 
procedures where justified to implement necessary regulatory safeguards; 
Free (unrestricted) access to space segment capacity, subject to licensing procedures in 
order to safeguard those exclusive or special rights and regulatory provisions set up 
by Member States in conformity with Community law and based on the consensus 
achieved in Community telecommunications policy. 
Access should be on an equitable, non-discriminatory and cost-oriented basis. 
Full commercial freedom for space segment providers, including direct marketing of 
satellite capacity to service providers and users, subject to compliance with the 
licensing procedures mentioned above and in conformity with Community law, in 
particular competition rules. 
Harmonisation measures as far as required to facilitate the provision of Europe-wide 
services. This concerns in particular the mutual recognition of licensing and type 
approval procedures, frequency coordination and coordination with regard to Third 
Country providers. 
With the combination of these changes, a broad range of specialised services will become 
possible. 
It is intended to proceed in the following manner: 
This Communication should lead to a debate in the Council, the European 
Parliament and the Economic and Social Committee and among all those 
concerned within the Community -the telecommunications and broadcasting 
sector, telecommunications and space industry, the trade unions, and in particular 
the many new users and service providers, such as education and training 
institutions -on the use that should be made of satellite communications, on the 
need for further development of satellite services and on the necessary regulatory 
framework to fulfil these requirements; 
After an appropriate consultation period, the Commission will present its 
conclusions to the Council on the implementation of a Community policy for 
satellite communications including the necessary regulatory instruments. 
4 
Table of Contents 
I. INTRODUCTION ....................................................................................................................... 7 
II. THE SATELLITE SCENE IN EUROPE .............................................................................. 11 
1. The General Environment ............................................................................................... 11 
· 1.1 INTEI.SAT and INMARSAT .............................................................................. 12 
1.2 EUTEI.SAT ............................................................................................................ 14 
2. The Development of Satellite Systems in Europe ....................................................... 17 
3. Current International Co-ordination Mechanisms: .................................................... 23 
Orbital Positions and Frequencies 
4. Current Regulatory Conditions in the Community .................................................... 27 
4.1 Earth Segment ........................................................................................................ 27 
4.2 Right to use/provide a service and licensing/type-approval.. ........................ 28 
4.3 Access to -and provision of -space segment capacity ..................................... 31 
5. Summary ........................................................................................................................ 32 
III. TECHNOLOGICAL AND MARKET DEVELOPMENTS ................................................. 34 
1. Space Segment Development .......................................................................................... 36 
1.1 Space Technology ................................................................................................... 36 
1.2 Use of New Frequency Bands .............................................................................. 37 
1.3 Increase in Lifetime ............................................................................................... 3 7 
2. Earth Segment Development .......................................................................................... 37 
3. Traditional Services .......................................................................................................... 38 
4. New Services ...................................................................................................................... 39 
4.1 Standard satellite-based digital services ............................................................. 40 
4.2 Very Small Aperture Terminal (VSAT) Networks .......................................... 41 
4.3 Videoconferencing ................................................................................................. 42 
4.4 Other New Satellite Services ................................................................................ 42 
5. Entertainment Broadcasting Services ........................................................................... 43 
5.1 TV distribution ....................................................................................................... 43 
5.2 Direct Broadcasting Services (DBS) ................................................................... 44 
5.3 High Definition Television (HDTV) .................................................................. 45 
6. Mobile Services and Position Fixing Services .............................................................. 46 
6.1 Maritime Services .................................................................................................. 46 
6.2 Land Mobile Services ............................................................................................ 46 
6.3 Aeronautical Services ............................................................................................ 4 7 
5 
7. Development in other major markets: United States and Japan ........................... .48 
7.1 The United States .................................................................................................. 48 
7.1.1 Domestic "Open-skies" policy .................................................................... 48 
7.1.2 U.S. approach to international satellite communications .................... 50 
7.1.3 Mobile satellites services ............................................................................ 52 
7.2 Japan ........................................................................................................................ 53 
8. Summary ........................................................................................................................ 55 
IV. SATELLITE COMMUNICATIONS IN A GLOBAL POLICY CONTEXT .................... 58 . 
1. Satellite Communications in the context of Community Space Policy .................... 58 
2. Satellite Communications in the Context of Community Audio-Visual Policy ..... 62 
2.1 Overall Audio-visual Policy .................................................................................. 63 
2.2 The development of HDTV in Europe .............................................................. 64 
2.3 The role of Satellites in HDTV ........................................................................... 65 
2.4 Conditional Access Systems ................................................................................. 67 
3. The Larger European Dimension .................................................................................. 68 
3.1 Cooperation with EFf A and other neighbouring countries, and the ........... 69 
European Conference of Postal and Telecommunications 
Administrations ( CEPT) 
3.2 Importance of satellite communications for Central and Eastern Europe .. 72 
4. External Aspects and the International Environment of.. ......................................... 74 
Satellite communications 
4.1 International Telecommunications Union (ITU) ............................................. 74 
4.2 General Agreement on Tariffs and Trade (GA TT) ............ : ............................ 76 
4.3 Co-ordination of positions with regard to Third Country providers ............. 77 
4.4. Relations with the Mediterranean, Africa, Latin America ............................. 78 
and other parts of the world 
5. Summary ........................................................................................................................ 80 
V. EXTENDING THE PRINCIPLES OF COMMUNITY TELECOMMUNICATIONS 
POLICY TO SATELLITE COMMUNICATIONS .............................................................. 82 
1. General principles ............................................................................................................. 83 
2. Future treatment of the earth segment.. ....................................................................... 86 
2.1 Entertainment broadcast (TV) reception terminals ........................................ 87 
2.2 Receive only satellite telecommunications terminals ...................................... 87 
2.3 Transmit/ receive terminals .................................................................................. 88 
2.4 Central control earth stations (hub stations) of satellite ................................. 88 
terminal networks 
2.5 Abolition of exclusive or special rights ............................................................... 89 
for the provision of terminal equipment 
6 
3. Right to use/ provide service ......................................................................................... 90 
3.1 Signal transmission/ reception to/from satellite (uplink/downlink) ........... 91 
3.2 Licensing conditions .............................................................................................. 94 
3.2.1 Avoidance of harmful interference, and frequency co-ordination ..... 94 
3.2.2 Data protection and technical standards ................................................. 95 
3.2.3 Other requirements .................................................................................... 96 
3.2.4 Mutual recognition of licensing ................................................................ 97 
4. Future treatment of the space segment ........................................................................ 99 
4.1 Ensuring objective, transparent and non-discriminatory procedures ........ 101 
and separation of regulatory and operational functions 
· 4.2 Access to space segment capacity ...................................................................... 102 
4.3 Co-ordination procedures with the International .......................................... 1()3 
Telecommunications Satellite Organisations 
4.4 Cost-orientation of tariffs ................................................................................... 105 
4.5 Commercial freedom for EUTELSAT and provision .................................. 106 
of space segment 
4.6 A phased approach .............................................................................................. 108 
5. Standardisation and Type-approval ............................................................................. 110 
6. Mobile and position-fixing satellite services ............................................................... 111 
7. Broadcasting satellite services ...................................................................................... 114 
8. Summary ...................................................................................................................... 117 
VI. TOWARDS A COMMON APPROACH TO THE FIELD OF SATELLITE .•.•••••••.•....• 120 
COMMUNICATIONS IN THE COMMUNITY: CONCLUSIONS AND PROPOSALS 
1. General Conclusions to be taken into account .......................................................... 120 
2. Proposed positions .......................................................................................................... 127 
3. Measures for Facilitating Trans-European Services ................................................. 134 
4. Lines of Action for Creating a favourable Environment .......................................... 136 
GLOSSARY OF SATELLITE COMMUNICATIONS TERMS .............................................. 140 
Figure 1 
Figure 2 
Figure 3 
Figure 4 
Figure 5 
Figure 6 Shareholding of Community Member States and 
Community Signatories in INTELSAT, INMARSAT AND EUTELSAT .. 16 
Current and planned European Civil Satellite Systems .................................. 19 
Non-European satellites used for services with European coverage ............ 22 
Regulatory Environment of Satellite Communications in Community 
Member States ........................................................................................................ 30 
Satellite Communications in Europe -key-figures ........................................ 57 
Community, EFfA, Central and Eastern Europe and other neighbouring 
Eurol?ean countr~es '?em~ership in organisations of most interest to 
satellite communications m Europe .................................................................... 70 
Summary of Proposed Positions ........................................................................ 129 

7 
I. INTRODUCTION 
The working out of a coherent European position regarding the future regulation and 
development of satellite communications in the European Community was singled out as a 
priority in the 1987 Green Paper on the development of the common market for 
telecommunications services and equipment and the subsequent implementation action 
plan.1.2 
In its Resolution of 30 June 19883 adopting the general principles of the Green Paper, the 
Council considered as a policy goal in telecommunications the "working out of a common 
position on satellite communications, so that this new information medium can develop in a 
favourable environment, taking account of the general rules of operation and exploitation 
of the network environment, as well as the competition rules of the Treaty and existing 
international commitments of the Member States". 
It is the intention of this paper to follow up this objective. 
The major part of the current regulatory and organisational structure of satellite 
communications in Europe was created more than a decade ago. In the meantime, 
dramatic technological advances have opened completely new avenues of use which go far 
beyond the role of satellites in public voice telephone transmission between 
Telecommunications Organisations for which this structure was originally principally 
designed. Television via satellites to cable TV head-ends and, more recently, directly to 
businesses and homes has developed into a major application of satellites in Europe. The 
development of small dishes of only 0.5 -2.5 meters diameter for a variety of user 
applications -compared to up to about 30 meters for the traditional earth stations for trunk 
telephony and TV programme interchange use -have opened completely new opportunities 
for rapid development of Europe-wide systems by service providers -both public and 
private -tailored to very specific needs of individual customer groups. 
2 
3 Towards a Dynamic Economy -Green Paper on the development of the Common Market for 
telecommunications services and equipment, COM(87) 290, 30/06/1987. 
Towards a competitive Community-wide telecommunications market in 1992 -Implementing the Green Paper 
on the development of the Common Market for telecommunications services and equipment, COM(88) 48, 
09 /02/1988. 
Council Resolution of 30 June 1988 on the development of the Common Market for telecommunications 
services and equipment up to 1992, OJ. C 257, 04/10/1988, p. 1. 
8 
As a consequence, besides the traditional "point-to-point" applications of satellite 
communications developed by the Telecommunications Organisations to provide 
international and long-distance links in the context of the international organisations 
originally set up for this purpose -INTELSAT, INMARSA T, EUTELSAT -completely 
new applications have led to the development of new distinct markets, such as "point-to­
multipoint" one-way and interactive two-way Very Small Aperture Terminal (VSA T) 
systems. These range from a few dozen up to several thousand terminals, and have the 
potential to become a vital component of Europe-wide business communications. Other 
applicat~ons include satellite news gathering (SNG) systems -the collection of news and 
data from multiple points -these are becoming important in the context of Europe-wide 
information and broadcasting activities, and direct-to-home satellite television. 
In parallel, the number of satellite systems in place -on an international, national and to 
some extent private basis -is multiplying in Europe, corresponding to the new diversity of 
use which goes far beyond the past vision of satellite communications as an additional 
transmission system between national telephone systems. 
However, the new services and markets can only become a reality in Europe, if the current 
regulatory restrictions -originally designed for another context and for other purposes -are 
carefully reviewed. 
A number of Member States have recognised the basic change in market conditions 
brought about by the multiplication of possible uses and have started to review the 
regulatory conditions of the sector on their own initiative, abolishing restrictions of use 
liable to prevent the full development of the new services and systems. 
Satellite communications were set aside for later consideration in the Green Paper on the 
development of the common market for telecommunications services and equipment. The 
consensus achieved, on the basis of this Green Paper and the subsequent political 
decisions, in particular at the Telecommunications Council on 7 December 1989 on the 
general future regulatory conditions of the telecommunications sector in the European 
Community, can now be the basis on which to build a common regulatory position in the 
field of satellite communications. Such a common regulatory position on satellite 
communications, while safeguarding the exclusive or special rights of Telecommunications 
Organisations allocated by Member States in conformity with Community law and the 
directives on competition in the markets for telecommunications terminal equipment and 
services,4.S must take proper account of the requirement to use the full potential of satellite 
4 
5 Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC}, OJ. L 131, 27 /05/1988, p. 73. 
Commission Directive of 28 June 1990 on competition in the markets for telecommunications services 
9 
communications for the development of Europe-wide services with a view to the 1992 
single market and the continental dimension introduced by the developments in Central 
and Eastern Europe. It must recognise the need to abolish those restrictions which prevent 
such new activities and create a framework which promotes them, as well as the need to 
support Europe's position in space and the objectives of Community audio-visual policy.6 
A first step towards allowing full use of the potential of satellite communications was taken 
with the abolition of exclusive and special rights on the importation, marketing, connection, 
bringing into service and/or maintenance of receive-only satellite earth stations not 
connected to the public network, in the context of the liberalisation of the Community's 
.. 
terminal equipment sector7• It now seems timely to extend the application of the agreed 
general principles of Community telecommunications policy to satellite communications: 
liberalisation of use, while allowing for the implementation of regulatory safeguards 
through appropriate type approval and licensing schemes, as compatible with 
Community law and, in particular, competition rules; 
separation of regulatory and operational functions, in order to avoid conflicts of 
interest; 
implementation of harmonisation measures, as far as required for ensuring 
effective working of Europe-wide services and equipment markets. 
Based on these considerations, a phased approach is proposed in chapter VI., in order to 
achieve a consistent Community policy on satellite communications: 
1. Agreeing on basic proposed positions, which apply the generai principles set out 
above to the satellite communications sector; 
2. Initiating a number of measures at Community level which, based on the proposed 
positions, aim at allowing effective Europe-wide provision and use of services; 
6 
1 90/388/EEC, O.J. L 192, 24.07.1990, p. 10. 
Communication by the Commission to the Council and to the European Parliament on audio-visual policy, 
COM(90) 78, 21/02/1990. 
Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC), OJ. L 131, 27 /05/1988. 
10 
3. Launching a number of lines of action, in order to create a favourable environment 
for such operations, in particular with regard to the international commitments of 
Member States in this area, and concerning standardisation and the promotion of 
the full use of satellite technologies to the best advantage of Europe's 
communication system. 
11 
II. The Satellite Scene in Europe 
1. The General Environment 
Telecommunications satellites were originally conceived for the establishment and 
enhancement of international communications, and this is still their main 
application. Even where satellites are used for national services, since satellite . 
beams cannot be shaped to follow national boundaries exactly, the regulation of 
satellite communications, and the co-ordination of frequencies used by these 
satellites, are issues going beyond the purview of national legislative or 
administrative systems. 
Frequency bands for satellite services are allocated by World Administrative Radio 
Conferences (WARC's) and Regional Administrative Radio Conferences 
(RARC's ). Use of frequencies within these bands is co-ordinated and administered 
by the International Frequency Registration Board, a body of the International 
Telecommunications Union (ITU), both internationally and with regard to the 
Member States of the Community. For the purposes of frequency allocation at 
WAR C's and RARC's, civil satellite services are mainly divided into fixed, mobile, 
broadcasting and radiodetermination services. At the time when this division was 
made, it reflected the fact that the different services were provided by different 
organisations: fixed services by telecommunications organisatio~s, mobile services 
by international consortia, and broadcast services by broadcasting authorities 
(though often through earth stations operated by telecommunications 
organisations). 
Historically, the Radio Regulations of the International Telecommunications Union 
provide definitions of these categories, which are called the Fixed-Satellite Services 
(FSS), the Broadcasting-Satellite Services (BSS), the Mobile-Satellite Services 
(MSS), and the Radiodetermination-Satellite Services (RDSS) (see Glossary). 
However, with current rapid technological development, these originally clear 
distinctions are becoming more and more blurred, for example between Fixed 
Satellite Services and Broadcast Satellite Services and between Mobile Satellite 
Services and Radio Determination Satellite Services (see chapter III.). 
12 
The general development of satellite communications at the international level has 
been characterised by the establishment of INTELSAT -the International 
Telecommunications Satellite Organisation ; INMARSA T -the International 
Maritime Satellite Organisation; and the European Telecommunications Satellite 
Organisation, EUTELSAT. 
1.1 INTELSAT and INMARSAT 
8 INTELSAT, the International Telecommunications Satellite Organisation, was . 
established in 1964 by 11 countries; it now has 119 members and provides 
international telephony, data and video (point-to-point) services as well as in 
certain cases, television broadcast services in the fixed satellite service (FSS) 
frequency band. INTELSAT's governing charter is a 1973 intergovernmental 
convention known as the INTEL.SAT Agreement signed by the member 
governments of the organisation. This is supplemented by an Operating 
Agreement, signed mostly by the telecommunications organisations of the member 
countries as appointed by the national governments8. 
The INTELSAT Agreement, inter alia, binds national governments which sign it, 
not to establish, acquire or utilise other satellite systems without (a) performing 
"technical co-ordination" with the INTEL.SAT system to avoid mutual interference, 
and (b) proving that the separate system and services will not cause "economic 
harm" to INTELSAT (the so-called Article XIV procedure). The second proviso 
aims at limiting competition from separate systems and services which are 
considered by INTEL.SAT a potential threat to its revenues. 
INTELSAT's turnover in 1989 was 480 million ECU. 
All Member States of the Community are members of INTELSAT. The ownership 
share of Community Member States in INTELSAT was 28.2 % as at 1March1990. 
Some members have created special organisations for representing them as signatories to the international 
satellite organisations: the United States has created COMSAT; Italy has created TELESPAZIO. 
9 13 
The only Eastern European members, Yugoslavia and Romania have 0.20% and 
0.05 % respectively and other European countries account for a further 3.4 %. As 
far as provision of the actual satellites for the system is concerned, European 
manufacturers have never succeeded in becoming the prime contractor for any 
INTELSAT satellite series, although European companies have been involved as 
subcontractors to US manufacturers, notably in the INTELSAT VII series now 
being developed. 
INMARSAT, the International Maritime Satellite Organisation, was established in 
1979 by an intergovernmental Agreement; it now has 61 Member States . . 
Operations are carried out by the designated signatories (the telecommunications 
organisations9) of the member states. Modifications to the original INMARSA T 
convention allow it to operate land mobile and aeron~utical mobile services in 
addition to maritime mobile services, all using the Mobile-Satellite Services (MSS) 
frequency band around 1.5 -1.6. GHz, the so called L-band. 
INMARSAT's turnover in 1989 was 98.4 million ECU. 
With the exception of Ireland and Luxembourg, all Member States of the 
Community are members of INMARSAT. European states have made a major 
contribution to the development of this service -almost 52 % of the shareholdings 
in INMARSA T are held by authorities of European states. The Community 
Member States investment shares total about 34 percent. MARECS satellites, 
developed in cooperation with European industry by the European Space Agency 
(ESA), are currently used by INMARSAT (one as a prime satellite for the Atlantic 
Ocean Region, a second as a back-up in the Pacific). In addition~ British Aerospace 
heads the consortium constructing the INMARSA T second generation satellites, 
scheduled to come into operation in 1990. The overall European industrial content 
of this contract is some 60 percent. INMARSA T has issued its Request for Tenders 
to industry for the third generation of satellites at the beginning of October 1989, 
calling for availability of these satellites in 1993. 
see 8) 
14 
1.2 EUTELSAT 
EUTELSAT, the European Telecommunications Satellite Organisation, is an 
intergovernmental organisation with members from 28 European countries, 
including all member countries of the European Conference of Postal and 
Telecommunications Administrations, the CEPT. Recently, Poland and Romania 
have become members ; discussions are continuing with other Eastern European 
countries. 
EUTELSAT provides and operates telecommunications satellites for telephony, 
data and video services within Europe, in the Fixed-Satellite-Service (FSS) 
frequency band. The EUTELSAT system has undergone the co-ordination process 
outlined above, le. it has proven that it will not cause significant economic harm to 
INTELSAT. In addition, Article XVI of the EUTELSAT convention foresees 
technical co-ordination and "economic harm" co-ordination similar to Article XIV 
of the INTELSAT convention for satellite systems offering services in Europe. 
While the original rationale for EUTELSAT was the provision of international 
telephony within Europe, the take-up of this service has proved slow, initially due to 
the extensive terrestrial microwave networks, and latterly because of the growing 
availability of fibre optic cable. On the other hand, a considerable market has 
developed for television distribution using the FSS frequency band rather than 
frequencies designated for broadcasting. EUTELSAT now derives nearly 75% of 
its revenues from television distribution. 
The members of EUTELSAT are mostly the national Telecommunications 
Organisations10 which have been designated generally by the member states as 
signatories to the Operating Agreement. Under the terms of this Agreement, it can 
only rent space segment to its signatories. With the exception of the European 
Broadcasting Union (EBU), other organisations wishing to set up a satellite service 
using EUTELSAT space segment are obliged to purchase it from their national 
signatory. 
EUTELSAT's turnover in 1989 was 100 MECUs. 
1° For some smaller non-EC countries, the Governments are signatories such as Monaco, Vatican City, 
Lichtenstein, San Marino, and Malta. See Footnote 8. concerning Italy. 
15 
All Member States of the Community are members of EUTELSAT. The EC 
Member States have an investment share totalling 88.0 percent. EUTELSAT's 
other 15 signatories control the remaining 12.0 percent of the investment share. As 
in the other two organisations, each year the investment share per signatory is 
calculated on the basis of their percentage of traffic carried over the satellites. The 
satellites for the EUTELSAT second generation are currently being developed by a 
European consortium, under prime contractorship of Aerospatiale. The first of 
these satellites has been launched successfully in August 1990. 
An overview of European investment shares and Community signatories to the • 
agreements is given in Fig. 1. 
2 
3 
4 
5 Figure 1 
Shareholding of Community Member States and Corflmunity 
Signatories in INTELSAT, INMARSAT, and EUTELSAT 
ORGANISATION INTELSAT INMARSAT EUTELSAT 
___ .... 
IN- IN- IN-
MEMBER STATES SIGNATORY1 VEST- SIGNATORY1 VEST- SIGNATORY! VEST-
MENT MENT 
BELGIUM REGIE DES 0.66 REGIE DES 0.74 REGIE DES 
TELEGRAPHES TELEGRAPHES TELEGRAPHES 
ET TELEPHONES ET TELEPHONES ET TELEPHONES 
(RTT) (RTT) (RTT) 
DENMARK GENERALDIREKTORATET2 0.65 GENERALDIREKTORATET2 2.55 GENERALDIREKTORATET2 
FOR POST-OG FOR POST-OG FOR POST-OG 
TELEGRAFVAESNET TELEGRAEVSNET TELEGRAVAESNET 
FRANCE FRANCE TELECOM 4.41 FRANCE TELECOM 4.23 FRANCE TELECOM 
GERMANY DEUTSCHE BUNDESPOST 3.50 DEUTSCHE BUNDESPOST 2.43 DEUTSCHE BUNDESPOST 
TELEKOM TELEKOM TELEKOM 
GREECE HELLENIC TELE- 0.50 HELLENIC TELE- 2.93 HELLENIC TELE-
COMMUNICATIONS OR- COMMUNICATIONS OR- COMMUNICATIONS OR--GANISATION (OTE) GANI SAT ION COTE) GANISATION COTE) 
IRELAND3 TELECOM EIREANN 0.13 - -TELECOM EIREANN 
ITALY TELESPAZIO 2.10 TELESPAZIO 2.15 TELESPAZIO 
LUXEMBOURG4 ADMINISTRATION 0.05 - -ADMINISTRATION 
DES P & T DES P& T 
NETHERLANDS PTT Nederland NV 1.14 PTT Nederland NV 2.55 PTT Nederland NV 
PORTUGAL COMPANHIA PORTU- 0.60 COMPANHIA PORTU- 0.27 COMPANHIA PORTU-
GUESA RADIO GUESA RADIO GUESA RADIO 
MARCONI MARCONI MARCONI 
SPAIN TELEFONICA 2.22 TELEFONICA 2.00 TELEFONICA 
UNITED BRITISH TELE- 12.24 BRITISH TELE- 13.81 BRITISH TELE-
KINGDOM COMMUNICATIONS PLC5 COMMUNICATIONS PLC5 COMMUNICATIONS PLC5 
TOTAL MEMBER STATES 28.20 33.66 
INVESTMENT SHARE % % 
The Convention is an inter-governmental agreement. However, member states have designated the 
organisations indicated as signatories to the Operating Agreement on their behalf. 
Telecom Denmark.controls the availability of space segment capacity for telecommunications purposes. 
Ireland is not a member of INMARSAT. 
Luxembourg is not a member of INMARSA T. MENT 
3.54 
.. 
2.13 
13.36 
--"-
12.95 
0.05 
0.05 
8.29 
3.69 
3.84 
1.12 
22.09 
16.90 
88.01 
x 
A signatories affairs office has been created as a unit fully separated from British Telecom's business activities, 
in order to handle requests for satellite capacity. 
17 
The evolution of satellite communications in the Community has been deeply 
marked by the role of the telecommunications organisations as signatories to the 
international satellite agreements, the exclusive right of the EUTELSAT, 
INMARSA T, INTELSAT signatories to purchase and resell space segment 
capacity, the implication of the technical co-ordination and "economic harm" 
procedures foreseen in the agreements, and the natural tendency of the 
telecommunications organisations, in their role as signatories of EUTELSAT, 
INMARSAT, and INTELSAT, to utilise the space segment capacity of these 
organisations in the light of their national requirements. 
2. The Development of Satellite Systems in Europe 
With the exception of the use of the large international systems with European 
coverage such as the INTELSAT facilities, the use of satellite communications in 
Europe is a relatively new experience. Only since 1983 has Europe had its own first 
operational satellite, called ECS-1 or better known by its operational name 
EUTELSAT I-Fl. At that time Europe had implemented 3 experimental satellite 
systems totalling 6 satellites of which 5 reached orbit. These were the Franco­
German Symphony 1 and 2, Italy's SIRIO 1 and 2 and ESA's Orbital-Test-Satellite, 
OTS2. 
By 1983 the United States had considerably more experience, with development of 
some 25 experimental satellites since the end of the fifties. American industry had 
already built 150 operational telecommunications satellites fo~ use all over the 
globe. After development of only six experimental satellites, Europe also decided 
to start building operational satellites to supply the growing European market. 
These first operational satellites were mainly intended for point-to-point telephony 
communications and the distribution of television signals around Europe. More 
than three quarters of the capacity of these satellites is now used for TV 
distribution purposes. 
From an industry point of view, the space industry in Europe is catching up, albeit 
slowly. Having manufactured only 6 telecommunication satellites in the period 
1980-1984, in the years 1985-1989 7 telecommunications satellites were produced 
and at present the European space industry has 17 orders with a total value of 
about 1 billion ECU for the period up to 1994. 
18 
Europe will have a large amount of satellite capacity available in the 1990s. All 
non-military European national, private and intra-European systems together will 
make available a total of 24 operational DBS (television) channels on the 
Broadcasting-Satellite Services (BSS) satellites in 1993. In the Fixed-Satellite 
Services (FSS) a total of around 380 European transponder equivalents11 will be 
available in 1993 against about 170 transponder equivalents in 1990. Not included 
here are the international systems such as INTELSAT and INMARSAT, and non­
European systems with European coverage, such as the U.S.-based PanAmSat and 
the (planned) ORION satellites and the USSR-based GORIZONT and RADUGA 
systems. 
An overview of current existing and planned satellite systems with European 
coverage ("footprint") and their planned applications is given in Fig. 2 and 3. 
Main applications are expected to be television distribution, telephony (mainly for 
extra-Community traffic), and new applications (see chapter III.). As mentioned, 
EUTELSAT is deriving nearly 75 % of revenues from television distribution. The 
traditional applications -long-distance trunk telephony and short-term high band­
width requirements such as studio-to-studio television transmission -still account 
for a major, though declining, proportion of international satellite services. Satellite 
links still account for nearly 60 % of transAtlantic telephony, though this is expected 
to fall to 30 -40 % by 1995 (see chapter III.). However, within Europe, satellite­
carried voice telephony accounts for only 2 -3 % of intra-European international 
and national long-distance calls. 
As is shown by Figures 2 and 3, the European space segmerit has experienced 
substantial diversification during recent years, which may be expected to continue in 
the near future. In addition to the space segment provided by the international 
telecommunications satellite organisations which will continue to play a strong role 
and which currently provide a major part of the space segment currently accessible 
from Europe, a large number of new systems are entering the market, sponsored 
both by the national telecommunications organisations and by other private 
organisations. 
11 Transponder capacity is taken equivalent to a channel of about 36 MHz. A single transponder can normally 
carry one television channel or up to about 1700 telephone voice channels. 
Figure 2 
Current and Planned European Civil Satellite Systems 
NAME OWNING OR- LAUNCH MISSION NOTE 
GANISATION 
EUTELSAT-IF1 EUTELSAT 1983 Telephony, television distri-
bution,business conmunications, 
mobile conmJnications 
EUTELSAT-IF2 EUTELSAT 1984 Telephony, television distri-
bution,business conmunications, . 
mobile cormunications 
TELECOM 1A FRANCE TELECOM 1984 Telephony, television distri-
bution, business conmunications, 
etc. 
EUTELSAT-IF4 EUTELSAT 1987 Telephony, television distri-
bution,business conmunications 
EUTELSAT-IFS EUTELSAT 1988 Telephony, television distri-
bution,business cormunications 
ASTRA-1A SES-ASTRA1 1988 Television distribution 
TELECOM 1C FRANCE TELECOM 1988 Telephony, television distri-
bution, business conmunications, 
etc. 
TDF1 FRANCE TELECOM 1988 DBS (television) 
TVSAT-2 Deutsche 1989 DBS (television) 
Bundespost 
TELEKOM 
TELE-X SWEDISH SPACE 1989 DBS, small terminal networks 
CORPORATION data and telephony services 
- -·------
MARCO-POL0-1 Bss2 1989 OBS, Data broadcasting 
DFS-1 Deutsche 1989 Telephony, television dis-
KOPERNIKUS Bundespost tribution, data and 
TELEKOm business cormunications 
--
OLYMPUS3 ESA 1989 Experimental conmunications, DBS 
TDF2 FRANCE TELECOM 1990 DBS (television) 
Figure 2 
NAME OWNING OR- LAUNCH MISSION NOTE 
GANISATION 
DFS-2 Deutsche 1990 Telephony, television distri-
Bundespost bution, data and business 
TELEKOM conmunications 
..,__-~~ 
MARCO-POL0-2 BSB 1990 DBS, Data broadcasting planned 
EUTELSAT 11 EUTELSAT 1990 CF1) Telephony, television distri- F2 to F6 
f 1 to F6 et seq bution,business ccxmKJnications, planned 
mobile cormunications . 
ITALSAT4 TELESPAZIO 1991 Teleconmunications, data, and planned 
business conmunications 
ASTRA-1B SES-ASTRA 1991 Television distribution planned 
TELECOM 2A FRANCE TELECOM 1991 Telephony, television distri- planned 
bution, business conmunications, 
Security. 
-
TELECOM 2B FRANCE TELECOM 1992 Telephony, television distri- planned 
bution, business conmunications, 
Security. 
LOCSTAR LOCSTAR5 1992 Mobile conmunications and planned 
1 and 2 ConsortillTl radiolocation 
-~~~-
HISPASAT SPANISH AUTHORI- 1992-1993 TV distribution, DBS, data planned 
1 and 2 TIES/ Telefonica and business conmunications 
--- --
SARIT RAI 1993 DBS planned 
ARTEMIS ESA 1993 Experimental mobile conmuni- planned 
cations, data relay 
--
ASTRA-1C SES-ASTRA 1994 Television distribution planned 
EUROPE SAT EUTELSAT 1995 DBS planned 
F1 to FS et seq 
-
KEPLER Deutsche 1996 OBS, Business and data planned 
Bundespost c011111Unications, TV distribution 
TELEKOM 
Figure 2 
NAME OWNING OR- LAUNCH MISSION NOTE 
GANISATION 
ASTRA-2 Series SES-ASTRA .... OBS, small terminal systems, planned 
mobile 
OFS-3 Deutsche ... telecormunications and planned 
Bundespost business cormunications 
TELEKOM 
EUTELSAT-III EUTELSAT 1997 et seq. telephony, television dis- planned 
tribution, business cormuni-1 
cations, mobile conrrunications 
Note This list does not include a number of progranmes which have been announced but for which 
launch dates are not known : ATLANTIC satellite (Hughes Conrrunications / J. Stafford) ; 
VIOEOSAT (France Telecom) ; F-SAT (France Telecom) ; APEX (France Telecom). Nor does it 
contain highly elliptical orbit systems that are in early study phases (ARCHIMEDES / ESA, 
SYCOMORES I France) 
2 
3 
4 
5 SES shareholders include Luxembourg, Belgian, German, and Scandinavian banking and investment interests, 
and British television interests. 
The BSB Consortium currently includes as major shareholders : Granada, Pearson, Bond Corporation, 
Chargeurs SA, Reed International. 
Capacity used by BBC Enterprises, RAI, EUROSTEP Association, Telecommunications Administrations, 
Research Institutes, etc. 
ITALSAT will use new frequency bands at Ka-band (20-30 GHz) to improve performance to small ground 
terminal systems and is a pre-operational system. 
The Locstar consortium includes as shareholders CNES, MA TRA, GEC-Marconi, Daimler-Benz, etc. 
Figure 3 
Non-European satellites 
used for services with European coverage 
NAME OWNING OR- LAUNCH MISSION NOTE 
GANISATION 
INTELSAT V1 INTELSAT see notes Telephony, television distribu-
Generation tion, business and data services, 
(mobile leased by INMARSAT) 
INTELSAT VI2 INTELSAT see notes Telephony, television distribu-
Generat.i on tion, business and data services 
. 
MARISAT F1-F2 INMARSAT 1976 mobile leased by in orbit 
Consortiun INMARSAT spares 
MARECS-82 ESA 1984 Maritime, aeronautical,land 
mobile (leased by INMARSAT) 
PANAMSAT PANAMSAT/ 1988 Video and business 
ALPHA-LYRACOM Services 
GORIZONT Series3 INTERSPUTNIK see notes Telephony, telegraphy, tele-
and REDUGA vision and sound broadcasting 
INMARSAT-II INMARSAT 1990 et seq. maritime, aeronautical planned 
series land mobile 
INTELSAT I( INTELSAT 1992 Television distribution planned 
business and data services 
ORION4 ORION 1993 Video and business services planned 
INMARSAT-III INMARSAT 1994 et seq. maritime, aernoautical planned 
series land mobile 
INTELSAT VII INTELSAT see notes Telephony, television distribu- planned 
Generation tion, business and data services 
Note This list does not include announced progranmes for which dates are not firmly known, 
such as the IRIDIUM progranme (sponsored by MOTOROLA) and ORBCOMM progranme (Orbital 
Conmunications Ltd). 
2 
3 
4 Currently, 6 satellites of the INTELSAT-V generation are used for intra-Eurof.ean services -either television 
distribution (F4, F6, Fl, F11) or Business and Data Communications (F2, F13 . 
One satellite of the INTELSAT-VI generation is now operational, and a second is about is to become 
operational. 
Launch dates, capacity, coverage and further details of the GORIZONT and REDUGA satellites are not 
published, though several are known to be in orbit. They are owned by the USSR and leased to lntersputnik 
the members of which are, Afganistan, Bulgaria, Cuba, Czechoslovakia, Germany, Hungary, North Korea, Laos, 
Mongolia, Poland, Romania, the USSR, Vietnam, and Yemen. 
The ORION system, although derived from a licence awarded to a U.S. company, ORION Networks, to 
provide competing trans-Atlantic services to INTELSAT, is expected to have major European investment when 
its financing is completed. 
23 
3. Current International Coordination Mechanisms: Orbital 
Positions and Frequencies 
A major influence on satellite communications in Europe are the international 
coordination procedures with regard to orbital positions and frequencies 
administered by the International Telecommunications Union (ITU). 
Any discussion of the future development of the sector in the Community must take 
careful account of these procedures and the international commitments of Member 
States in this area. 
Since 194 7 the use of radio frequencies is subject to examination in order to limit 
harmful interference and to ensure the correct use of frequencies in accordance 
with the internationally agreed Table of Frequency Allocations in the Radio 
Regulations. The International Frequency Registration Board (IFRB), a 
permanent body of the ITU, has been given the role to act as the body which 
administers the internationally agreed frequency allocation and orbit allotment 
plans and the related criteria for coordination as laid down in the Radio 
Regulations. The aim is to come to a globally acceptable, effective, equitable and 
economic utilisation of the radio frequency spectrum and the geostationary satellite 
orbit. The IFRB receives about 1200 notices/informations per week which need to 
be examined as required under the Radio Regulations and related agreements. 
The aim is to provide, to the maximum possible extent, and on a global scale; 
guarantees, in general, for the interference free operatio~ of radio stations, 
these being space stations or earth stations, by giving international 
recognition or protection; 
mechanisms for international coordination of radio networks (including 
satellite networks) for which the high initial investment requires pre­
operational agreements between users; 
guarantees regarding equitable access to the spectrum and the geo­
stationary satellite orbit to all nations. 
24 
The provisions of the Radio Regulations can only be modified by the specific world­
wide or regional conferences convened by the ITU which are called World (or 
Regional) Administrative Radio Conferences (W ARC or RARC). The convening 
of such conferences requires detailed technical preparation, often aided by study 
work undertaken by two other ITU bodies : the International Radio Consultative 
Committee (CCIR) and the International Consultative Committee for Telephony 
and Telegraphy ( CCITT). 
As mentioned earlier, for the purpose of different specific technical application 
requirements and the assessment of resulting possible interferences, the frequen9' 
allocations in the Radio Regulations for space services are divided into various 
services, the most important being the fixed, mobile, broadcasting and 
radiodetermination satellite services. 
For the fixed satellite services, an allotment plan was developed during the WARC 
conferences of 1985 and 1988 using some of the 4/6 and 11/14 GHz12 band 
frequencies. This plan allots, inter alia, 800 MHz of bandwidth within specified 
frequency bands on a pre-assigned country-by-country basis and provides each 
country with at least one orbital position within a predetermined arc. These 
national allotments consist of a list of parameters which identify the allotment. For 
national systems the plan provides for a set of procedures to be followed in order to 
coordinate the national satellite network planned. This WARC-88 plan provides 
for allotments for existing systems and for those systems (including regional) which 
have been advance published before May 1988, like the regional EUTELSAT 
system. The second part of the plan provides for some flexibility in the fixed 
satellite frequency band through agreed procedures for the non-planned frequency 
bands through so-called Multilateral Planning Meetings (MPM's) in which future 
sub-regional or regional systems can be coordinated. These MPM's are a 
formalisation of the coordination process to ensure equitable access to the 
remainder of the frequencies and the geo-stationary orbit. However, despite the 
proviso of these MPM's, the establishment of future pan-European services on 
(sub-)regional systems is thought still to present significant difficulties due to the 
complexity and the length of the procedures. 
Prior to the described developments for the fixed satellite services, m 1977 a 
12 The main frequency bands used for satellite communications are in the ranges 1-2 GHz (L-band), 2-3 GHz 
(S-band), 3 -7 GHz (C-band), 7 -8 GHz (X-band), 10 -19 GHz (Ku-band), and 17 -31 GHz (Ka-band; 
experimental use mainly). The bands mainly used in Europe are those at Ku-band for intra-European traffic, 
with Ka-band now being used for experiments (OLYMPUS, DFS-Kopemikus, ITALSAT), C-band for 
transcontinental use on INTELSAT trunks and L-band for mobile communications via INMARSAT. 
25 
similar, but far more rigid, approach was taken in the establishment of an allotment 
plan for the broadcasting satellite services. The W ARC-77 Broadcasting satellite 
plan strictly regulates and allocates precise orbital slots and frequencies on a 
country-by-country basis for the provision of direct broadcast satellite services 
(DBS) in an agreed exclusive band in the 12 GHz range. The plan was developed to 
satisfy the requirements and concerns that existed in 1977 and is based on 
presumptions which have been overtaken by technological development (see 
chapters III. and IV.). Amendments to the 1977 plan concept were proposed during 
t~e RARC-83 conference but that concerned only the region encompassing the 
Americas. These improvements on the W ARC-77 plan criteria have subsequently 
been inserted in the Radio Regulations under the terms of the RARC-83. 
The improvement of the technology and the rigidity of the W ARC-77 plan have led 
to use, in Europe, of the fixed-satellite services frequency bands for the provision of 
TV distribution services which can also be received by small home dishes (see 
chapters III. and IV.). The plan is currently of substantial concern to some of the 
European space segment providers who plan to provide HDTV services directly to 
the European audience, and for which the use of higher power DBS satellites is 
inevitable. 
The procedures for coordinating mobile-satellite networks are based on the 
WARC-79 and WARC MOB-87 results, which have subsequently been 
incorporated in the Radio Regulations. 
In each of the above cases the procedural ways to coordinate and agree new 
satellite systems have a certain commonality and the same objective. The details of 
the procedural routes however are considerably different. The common elements 
can be grouped in three different steps as follows: 
1. Advance publication of intent and publication of the available technical 
specifications of the satellite system in question on which the potential need 
for coordination can be assessed. 
2. The resulting coordination, or agreements with other administrations which 
are affected by e.g. the intended coverage overspill of a satellite system. 
Obviously, for systems which are within plan criteria, no coordination is 
required. 
26 
3. After completion of the coordination (or establishment that coordination is 
not required), notification of frequency usage to the IFRB for inclusion in 
the so-called Master Frequency Register, so that these systems can claim 
protection from harmful interference from future systems. 
For all intended satellite systems, a set of procedures needs to be followed in 
accordance with the plans and regulations; each with their own specified time 
periods in order to achieve timely coordination before the system becomes 
operational. For most of the national systems which are conceived in accordance 
with the original plan design parameters, the coordination process will not be 
required as these systems should be within plan criteria. 
However, for other satellite systems, mostly (sub)-regional systems, which are not in 
accordance with original plan design parameters and therefore not within the plan 
criteria, the coordination procedures with all affected countries need to be 
undertaken. These procedures are time consuming, very complex, affect a large 
number of administrations and also depend on the cooperation and willingness of 
the affected administrations to come to an agreement. Certainly in the case of sub­
regional or regional satellite networks in Europe, the number of administrations to 
be consulted can be considerable -in the case of the Community Member States, 
both between any of them and any other neighbouring countries affected by the 
planned satellite system. For multi-service satellite systems the procedures are 
particularly complex as at least two and sometimes three sets of procedures need to 
be followed. 
The current situation with regard to the coordination of frequencies and the 
administration of the orbital source is therefore characterised by: 
the Community Member States acting individually with regard to the 
international bodies responsible, within a number of Member States the 
national telecommunications organisations having been mandated by the 
Member States to act on their behalf in these bodies, while in others the 
respective ministry represents the Member State13; 
non-existent or only loose coordination among the Member States in the 
framework of the European Conference of Postal and Telecommunications 
Administrations (CEPT), though this is now changing (see Chapter IV); 
13 In the case of EUTELSAT the coordination procedures with regard to the ITU are carried out by the French 
Administration; in the case of INTELSAT, by COMSAT International (U.S.); and in the case of 
INMARSAT, by British Telecom. 
27 
non-existence of instruments at the Community level to ensure coordinated 
positions with regard to these bodies -and therefore with regard to the 
management of the orbital resource and associated frequencies. 
The current reform of frequency coordination within the CEPT, under the impact 
of Council Resolution 90/C 166/02 of 28 June 199014, with the creation of the new 
European Radiocommunications Committee and the European 
Radiocommunications Office provides the prospect of substantial strengthening of 
cooperation in the frequency field. 
4. Current Regulatory Conditions in the Community 
The regulatory situation in the Community can best be analysed in terms of 
provision and operation of the earth segment, including both receive-only 
and transmit/receive earth stations; 
the right to use/provide service and/or the licensing conditions required to 
use/provide service via the space segment; 
access to the frequencies and geostationary satellite orbit, and provision of 
space segment capacity. 
An overview of the situation in the Member States is given in Fig. 4. Overall, the 
situation in the Member States can be characterised as follows: 
4.1 Earth Segment 
With regard to receive-only terminals the Green Paper on telecommunications15 
stated that "given the trend in satellite communications towards point-to-multipoint 
broadcasting applications for closed user groups, the regulatory regime for receive­
only earth stations (ROES) for satellite communications should be assimilated to 
the regime for telecommunications terminals and TV receive-only satellite antennas 
and fully opened to competition." 
14 O.J. C 166 of 07.07.1990, p. 2. Council Resolution of 28 June 1990 on the strengthening of the Europe-wide 
cooperation on radio frequencies, in particular with regard to seivices with a pan-European dimension. 
15 Green Paper on the development of the common market for telecommunications seivices and equipment, 
COM(87) 290 of 30.06.1987. 
28 
Subsequently, Directive 88/301/EEC16 implemented this position for "receive-only 
satellite stations not connected to the public network of a Member State". Fig. 4 
shows the current status. The majority of Member States have implemented this 
position17• However, a number of Member States continue to request licenses to 
operate such equipment. 
The ownership and operation of transmit/receive terminals has been traditionally 
associated in the Member States with the regulation of the up-link/ down-link and 
therefore was restricted, under exclusive or special rights to those who had the right 
to operate up-links, both as regards provision and operation of equipment 
(compare Fig. 4). 
However, a number of Member States are currently moving towards replacing 
exclusive or special rights in this area by a system of type-approval and licensing 
regimes (see below). 
4.2 Right to use/provide a service and licensing/type-approval 
As shown by Fig. 4, in many Member States, the private operation of satellite-based 
services is not permitted at all. Where it is permitted, the question of the terms of 
licences for such services arises. The right to offer satellite services is still often 
granted on a discretionary basis by Member States' governments. 
For receive-only earth stations, a relatively liberal approach has been developed in 
the majority of Member States, under which receive-only earth stations are treated 
under the same regime as other terminal equipment (see above). But even in this 
area, the separation of regulation from operations is still by no means complete in 
relation to the approval and (where applicable) licensing procedures. 
Traditionally, Member States have confined the right to transmit satellite (up-link) 
signals to the telecommunications organisations. However, more recently, a 
number of Member States have introduced -or are considering -liberalisation of 
access to the up-link, such as the UK for one-way services, and the Federal 
Republic of Germany for one-way and two-way services, under appropriate 
licensing regimes,· including liberalisation of transmit/receive terminals (compare 
Fig. 4). In the Federal Republic of Germany private users and service providers 
16 Commission Directive of 16May1988 on competition in the markets for telecommunications terminal 
equipment (88/301/EEC), OJ. L 131 of27.05.1988, p. 73. 
17 Status 1st October 1990. 
29 
will in the future be allowed to operate hub-stations and transmit/receive stations 
under a licensing regime. In the United Kingdom, 7 licences have been granted to 
operate one-way satellite services including the up-link, in addition to the two 
organisations, BT and Mercury, which have responsibility for network 
infrastructure. 
Figure 4 
Regulatory Environment of Satellite Communications in Community 
Member States 
1 
2 
3 
4 
5 
6 
7 
8 
9 COUNTRY RECEIVE ONLY TERMINALS HUB STATIONS TRANSMIT/RECEIVE TERMINALS 
AND THE PROVISION HUB STATIONS 
OF ONE-WAY-SERVICES1 AND THE PROVISION 
OF T\IO-WAY SERVICES2 
TELEVISION OTHER NATIONAL INTERNATIONAL NATIONAL INTERNATIONAL 
SERVICES 
BELGIUM /I/Ill/I/I/ /I/Ill/Ill/ 
DENMARK3 /I/I/Ill/// /Ill/////// /////- /Ill/ 
FRANCE /////Ill/// 
GERMANv4 /////////// ///////Ill/ llll///ll// Ill/Ill/I/I Ill/Ill/Ill II/I/Ill/II 
GREECE 11111/ llll//llll/ 
IRELAND5 ///////Ill/ /////- /Ill~ //////- Ill//-
ITALY 
LUXEMBOURG6 ///II/Ill// 
NETHERLANDS7 //II/Ill/// /Ill Ill/I Ill/I /////-
PORTUGAL8 //I/Ill/II/ Ill//////// 
SPAIN /Ill/Ill/I/ 
UK9 I/Ill/II/// Ill/II///// 
l Private supply without licencing, type approval or co-ordination. 
Provision exclusive to telec0111T1Unications organisation 
Private supply, subject to licencing, type approval or co-ordination 
Provision of one-way services refers to the provision and operation of the uplink. 
Where two-way services are concerned, provision and operation covers hub station and remote transmit/receive 
terminals. 
Receive only terminals are subject to type approval and licence for the establishment and operation. The 
network operator has the exclusive right to provide bearer services (uplink/downlink), whereas private 
organisations can provide value-added one-way services. 
It is under consideration to delete the individual authorisation for receive-only terminals so that they will only 
be subject to type approval. The provision of one or two way services has been liberalised, subject to licencing. 
Telecom Eireann has exclusive rights in the provision of national services and is licensed to provide 
international services. However, competition in the provision of national or international services is not 
precluded by legislation. 
Terminals in the Fixed Satellite Service are subject to licensing without type approval or coordination. 
P'IT Nederland NV has the "right of first refusal" to provide fixed uplink earth stations for one-way or two-way 
services. If the P'IT is not willing or able to provide, within a reasonable time and on reasonable conditions, a 
system which is equivalent to what the customer wants, the latter may ask the Telecommunications and Post 
Department of the Ministry of Transport and Public Works for a licence to establish, maintain and/or operate 
his own fixed uplink earth station. 
TVRO terminals larger than 3m in diameter require a licence. Legislation is under preparation for the 
liberalisation of the market of receive only terminals for other services. 
No individual licence is needed for receive only terminals~ they are covered by a class licence which is available 
to all without the need to register or to pay a f ec or to be individually co-ordinated. One-way services are 
subject to licencing for operation within Europe (meaning the European Community, EFTA and other 
European countries as broadly defined). 
31 
4.3 Access to -and provision of -space segment capacity 
To obtain space segment capacity, the users or satellite service providers must in 
general lease capacity from an existing satellite operator. In the European context, 
as mentioned, the main relevant operators are the international satellite 
organisations INTELSAT and INMARSA T and the European satellite organisation 
EUTELSAT; and national or private satellite operators (space segment providers), 
which provide capacity on systems such as Telecom-1-2, DFS Kopernikus-1 and 
BSB (refer to Fig. 2). Given that the Member States' telecommunications 
organisations are the Signatories to the international satellite organisations within 
each Member State18, this means that a potential user requiring space segme~t 
capacity is generally obliged to buy this from the telecommunications organisation. 
In many cases, the telecommunications organisation is a competitor or substitute 
provider of the service in question. This implies an inherent conflict of interest for 
the telecommunications organisation. 
However, more recently, there are first signs of the establishment of the principle 
of separation of regulatory and operational responsibilities also with regard to the 
satellite communications activities of the telecommunications organisations, both 
concerning the coordination of frequencies as well as the coordination procedures 
within the international telecommunications satellite organisations. 
Recognition of this principle has led in the United Kingdom to the establishment of 
a separate 'Signatory Affairs Office', separate from British Telecom operational 
and commercial staff, to manage UK access to the space segment. 
The operating agreements of the international satellite organisations give the 
signatories the right of exclusive resale of space segment capacity. However, as 
mentioned, the European Broadcasting Union (EBU) has been permitted to 
purchase space segment capacity directly from EUTELSAT for applications like 
Eurovision. 
18 As mentioned, in Italy a special organisation (TELESPAZIO) has been created for this purf>ose. 
32 
Given the national nature of the signatories and their interests as national 
telecommunications organisations, the current system also has as a major 
consequence that EUTELSAT cannot develop independent commercial strategies 
for establishing trans-European satellite services. The Signatories tend to plan and 
direct the operation of the organisation mainly as a function of their national 
telecommunications requirements. As a consequence, EUTELSAT has mainly 
developed in a field, where it enjoys more commercial freedom, i.e. in the field of 
the distribution of television services. 
As regards the provision of space segment capacity, potential operators of space 
1 
segment (satellite systems) are subject to the coordination procedures with regard 
to frequencies and orbital positions set out previously, and to the coordination 
procedures with the international telecommunications satellite organisations 
discussed further in chapter V. Both procedures are initiated by Member States at 
the national level. 
5. Summary 
Satellite communications have developed in an international environment which is 
characterised both by the emergence of the international telecommunications 
satellite organisations INTELSAT and INMARSAT and the European 
telecommunications satellite organisation EUTELSAT as well as by the 
coordination procedures of the International Telecommunications Union in the 
field of frequencies and the management of the orbital resou_rce. This entails 
important international commitments for the Member States which must be taken 
into account iQ any analysis of the sector. 
While the international satellite organisations will continue to provide a major part 
of the European space segment and INTELSAT and EUTELSAT account for a 
major percentage of satellite capacity currently accessible from Europe, a large 
number of new actors are entering the field and a large number of new satellite 
systems are emerging which will substantially enlarge and diversify -the 
European space segment over the coming years. 
The current regulation of earth segment and space segment in the Member States 
still reflects, in most cases, the situation in the sixties and seventies where the only 
technically and economically feasible application of satellite communications was 
their use as an additional transmission path to carry international or national long­
distance traffic for telecommunications organisations. The current situation in the 
33 
Member States is still characterised by substantial restrictions on supply and 
operation of satellite terminals (earth stations) and access to the space segment 
(satellite capacity), as well as a lack of harmonisation of procedures. Current 
regulation still does not integrate basic principles of modern telecommunications 
regulation in a multi-actor environment, such as the clear separation of regulatory 
and operational functions. 
However, under the impact of technological and market trends, there are now 
substantial changes under way in a number of Member States which point towards a 
more open environment, necessary for the full use of the new potential and the 
development of Europe-wide satellite systems and services. 

34 
. III. TECHNOLOGICAL AND MARKET DEVELOPMENTS 
The nature of the overall market for satellite services is in a state of rapid change. 
New applications are emerging while older ones are being partially superseded. 
The traditional main telecommunications application of satellites 
intercontinental telephony and studio-to-studio television programme transmission 
-. is not likely to grow rapidly in future, due to the low cost, high capacity and 
quality of the new fibre optic cables coming online on major routes. While in the 
recent past satellite-based voice telephony via the INTELSAT system accounted for 
nearly 60 % of trans-Atlantic traffic, the share of traffic dropped dramatically in 
1990 with the opening of the TATS and PTAT trans-Atlantic optical fibre optic 
cables. 
At the same time, developments in both ground and space segment technology have 
created the possibility for new business services, notably based on small terminals 
that can be located at users' premises which can, given the right regulatory 
conditions, ensure full use is made of the satellite capacity which will be available. 
In addition, the use of satellites for television transmission directly to users is set to 
grow with the advent of higher powered satellites and new transmission techniques 
such as MAC and its planned successor, High Definition (HD) MAC. 
This chapter will focus on the emerging implications of recent technological and 
market trends and those over the coming decade. These trends must be major 
considerations regarding the future regulatory environment of satellite 
communications in the Community. 
Europe saw the development of a series of experimental satellite programmes in 
the early 1970s which resulted in the 1980s in the development of an initial 
generation of operational European satellites (EUTELSAT-I series, TELECOM-I 
series, DFS-Kopernikus). These satellites were mainly designed to facilitate 
telephony interconnection and videodistribution. 
35 
In the 1970s and early 1980s, satellite communications were regarded as a direct 
substitute for terrestrial long-distance telephony mainly international 
transmission links. The single concept of "break-even distance" was used to 
determine whether or not satellites were suitable for a given application. This 
criterion neglected the intrinsic advantages of satellites over terrestrial systems: 
their widespread geographical coverage and their ability to assign capacity 
dynamically, allowing the immediate deployment of networks and services over a 
wide area. Satellites are thus ideal for providing new or specialised services, 
e.specially to peripheral or less-favoured regions. Market developments suggest that 
the future role of satellites in Europe will be to complement terrestr.ipl 
communications systems: there are few services for which both would be equally 
suitable and could therefore be regarded as competing technologies. 
The early experiences with these satellite systems and the ongoing advances of 
technology have led to the development of more sophisticated satellites such as the 
TV-SAT/TDF Direct-Broadcasting Satellites (DBS), and the telecommunications 
satellites of the EUTELSAT-II series and TELECOM-II series currently under 
development. But it is only now that satellite communications technology is 
entering full maturity and that the experience gained and the technology developed 
are being used to define new generation satellite communications systems which 
will satisfy the Community's needs for satellite services within the overall envelope 
of telecommunications development. 
The following sections analyse developments in technology and the various market 
sectors and illustrate the increasing diversification of satellite services and service 
providers. 
Technological progress now allows substantially more diversified configurations for 
purposes other than simple alternative transmission paths for the network. These 
configurations can be safely operated by service providers other than the 
telecommunications organisations, once appropriate regulatory safeguards have 
been established. 
While traditional telephony services and entertainment broadcast services still 
account for 90% of satellite communications revenues in the Community, the new 
business services such as point-to-multipoint one-way and interactive two-way 
systems and the satellite news gathering (SNG) systems -the collection of news 
and data from multiple points show major growth potential if regulatory 
conditions are adjusted to allow their development. 
36 
1. Space Segment Development 
The technological changes taking place in the space segment are the basis of the 
growing versatility of use and diversification of satellite services. The greater power 
and improved antennas of modern satellites allow the earth stations to be 
correspondingly smaller -a major factor in the increased opportunities of use of 
satellite technology. Improved frequency use and management techniques have 
increased the effective available bandwidth; and the working life of satellites has at 
least doubled. 
1.1 Space Technology 
The technology for spacecraft antennas has evolved rapidly during the last decade. 
As a result of the increasing scarcity of spectrum and crowding of the geostationary 
orbit new ways have been found to re-use frequencies by means of greater aperture 
efficiency and multiple spot beam operation (a technology by which a satellite 
antenna emits several narrowly focused beams designed to reach a number of 
relatively narrow circumscribed "spots" on the ground rather than covering all of a 
certain geographical area). Pressure to improve frequency utilisation will continue 
over the coming decades. 
Direct interconnection of satellites and clusters of satellites by means of 
intersatellite links (ISL) is currently foreseen in order to further increase network 
flexibility and interconnectivity. Cluster space configurations, which are seen from 
the ground as though positioned at a single orbital location, allow· rational growth of 
the satellite networks. Interconnections between satellite networks would extend 
the access coverage of networks while avoiding double-hops, and at the same time 
permit interconnection of services. It could also increase ground station elevation 
angles to overcome coverage problems. Development of optical communications 
technology for satellites has started in Europe within ESA's research activities and 
the first optical satellite interconnection link will be tested in orbit in the early 
1990s. 
More recently plans are emergmg to use satellites outside the geostationary 
positions in near earth orbits, establishing broad coverage by fully using the new 
methods of direct inter-space communication within large systems of satellites, or in 
highly elliptical orbits to take advantage of the higher elevation angles of such 
systems. This technique is expected to develop during the nineties at a world level 
and will manifest itself foremost in the mobile communications area. 
37 
1.2 Use of New Frequency Bands 
The congestion of the frequency bands and the increasing pressure for more 
bandwidth allocations to various services has led to the development of 10/20 GHz 
and 20/30 GHz technology. Both ESA's experimental OLYMPUS satellite and 
DFS/Kopemikus (Germany) already carry communications equipment for 
experimentation with these new bands. ITALSA T will be the next satellite carrying 
Ka-band as well as 40/50 GHz experimental communications equipment. 
The use of the 20 -30 GHz band permits, in principle, transmissions to and from 
very small user terminals and is therefore interesting for direct user applications 
such as business services including video conferencing. 
Because of the bandwidth requirements, wideband High-Definition TV 
transmissions are also expected to take place in the 20/30 GHz band in the future, 
although in the near term the narrowband HDTV (HD-MAC) co.uld be provided 
on the existing Ku-band frequencies of 12/ 17 GHz. 
1.3 Increase in Lifetime 
It is expected that the overall lifetime of satellites will continue to increase to 
possibly 20-25 years in the future with the use of very large scale integration in 
satellite communications equipment, electric propulsion, Ka-and Ku-band power 
transistor transmitters, more efficient solar arrays etc. 
2. Earth Segment Development 
Based on the growing sophistication of space segment technology, continuing 
developments in earth station equipment, above all in more efficient antennas and 
more sensitive receivers, there has been a dramatic decrease in the size and cost of 
ground stations, be it for telephony and television distribution, or for business 
communications. 
38 
While the first generation of satellite earth stations were large installations with 
antenna diameters of about 30 meters and with only one or a very limited number 
of stations per country, connected to and seen as part of the public 
telecommunications infrastructure, and giving access to the satellites of 
INTELSAT, and, later, also to the satellites of INMARSA T and EUTELSAT, this 
situation has now changed dramatically. New earth stations are now available for 
specific user applications, with antenna diameters of 0.5 -2.5 meters and which can 
be installed under user control directly on user premises. 
The development has led in particular to the emergence of VSA T ("Very Small 
• Aperture Terminals") based networks, albeit in Europe on a very limited basis due 
to the restrictive regulatory provisions19. 
For the particular case of Direct Broadcasting by Satellite, for which when 
originally conceived only 'high power' satellites were considered suitable, the 
increased sensitivity of low noise receivers has enabled reception of television 
signals from 'medium power' TV distribution satellites such as ASTRA and 
EUTELSAT, directly by domestic units and with reasonable quality with dish 
diameters as low as 60 cm. This has led to a blurring between those services 
defined as Broadcasting-Satellite Services (BSS) according to the definitions used 
internationally under ITU regulations, and broadcasting applications operating in 
the framework of Fixed-Satellite Services (FSS). 
Although future developments are not expected to be as spectacular as during the · 
last decade, it is foreseen that new technologies will still offer substantial 
improvements in terms of both costs and performance such that the use of small 
terminals for all satellite services will become increasingly more interesting. 
3. Traditional Services 
These services include traditional "point-to-point" voice, voiceband data and data 
transmission, using satellite communications basically as an alternative network 
transmission path. For such services, satellite transmission is generally more 
expensive than terrestrial transmission for short, intra-European distances. 
Originally conceived as the main satellite telecommunications application, it has 
turned out that on economic grounds it is only justifiable for "edge-to-edge" 
connections between peripheral countries, and to provide flexible and 
19 VSAT networks nowadays consist of a 9-13 m hub network control facility and a potentially large number of 
remote 1.0-2.5 m one or two-way user earth stations. 
39 
reconfigurable redundant, 'back-up' routings to improve network restoration times 
in case of outages on terrestrial ·links. Of the total 1989 telecommunications 
services revenues in Western Europe20 of nearly 95 billion ECU, the vast bulk is 
carried terrestrially. At national level, satellite carried voice telephony accounts for 
far less than 1 %. For international calls within Europe, satellite carried voice 
accounts for no more than 2% -3%. As mentioned however, satellites play a far 
greater -though declining as a proportion of the total -role for inter-continental 
communications, accounting for nearly 60 % of traffic throughout the eighties. 
Satellite costs per channel are expected to fall over the medium-term, as 
i 
technological improvements lead to better space segment utilisation and earth 
stations become smaller and cheaper. However, the cost of terrestrial technologies 
is falling faster. The quality and capacity of international cable links is improving 
all the time and there has been some speculation as to the effect of the increasing 
capacity of TAT (Trans Atlantic) and PT AT (Private Trans Atlantic) cables on the 
use of satellites. These new _digital fibre optic cables, the first of which (TAT-8) was 
finished in December 1988, provide greatly increased capacity at reduced cost 
compared to analogue cables. The advent of fibre optic cables is expected to reduce 
the proportion of transAtlantic voice circuits carried by satellite from near 60 % in 
1989 to 30 % -40 % of the total by 199521• 
4. New Services 
The new services generally consist of services which -with the exception of 
television distribution -are directed at specific business user groups and are not 
intended for the general public. They are nowadays largely digital in nature and 
include special voice and data services and video conferencing. 
20 Community and EIT A countries. 
21 The trans-Atlantic submarine fibre optic cable TA T8 is able to carry 40.000 telephone calls simultaneously, 
compared to only a few hundred on conventional coaxial cables. 
40 
4.1 Standard satellite-based digital services 
Standard satellite-based digital business services at 64 kbit/s and higher bit rates 
(SMS22 /IBS23 type services) are currently provided in Europe by the national 
telecommunications organisations within their role as signatories to the 
EUTELSAT and INTELSAT agreements -through central, multi-customer earth 
stations with terrestrial tails to individual customer sites. 
Within Europe, however, the developing terrestrial digital network will increasingly 
offer these services. With the exception of the case where an earth station serves a 
community of users and is heavily used, it is forecast that terrestrial cable networks 
will provide point-to-point digital services at a lower cost than satellite systems. It is 
expected therefore, that while satellites will continue to be used in the short term 
where terrestrial facilities are inadequate, in the medium term significant migration 
of customers to terrestrial services may be expected, except where long distances 
are involved. 
The situation has been further complicated in Europe by the dual interest of the 
telecommunications organisations as both exclusive distributors of satellite services 
of INTELSAT and EUTELSAT and as the operators of the terrestrial 
infrastructure, as well as the fact that in particular EUTELSAT -in the current 
circumstances -is impeded from marketing its new services directly to customers 
throughout the Community. In the case of the SMS services, this has led to a 
situation where the services were introduced late and there was not sufficient 
marketing coordination. Telecommunications organisations which introduced the 
service in reasonable time, could not offer the wide international coverage 
necessary to gather a critical mass of customers to make the service rapidly viable. 
As a consequence, EUTELSA T's SMS business service failed to reach predicted 
growth levels, reflecting the current weakness of satellite communications for traffic 
within Europe, as opposed to that between continents. 
22 SMS: Satellite Multi Service (business communications service of ElITELSAT). 
23 IBS: INTELSAT Business System. 
41 
4.2 Vezy Small Aperture Terminal (VSAT) Networks 
At the world level, a new high-growth market is emerging for point-to-multipoint 
private satellite networks based on the new small-sized terminals individually 
designed for each customer's needs and often operated by third party service 
providers. As terminals become smaller and cheaper and can be safely installed on 
user premises by service providers and operated under user control, provision of 
such wide-area multipoint networks via satellite becomes more cost-effective, with 
the high flexibility of satellite techniques allowing individual customer-optimised 
solutions. These networks represent a new departure in that both terminal 
• equipment and transmission links are completely dedicated to a single user, 
whereas in SMS/IBS type services both are shared. Private terminal networks offer 
the possibility of developing new business applications across widespread 
geographical areas. Terrestrial networks are unsuited, both due to their technical 
and tariff structures, for these new point-to-multipoint one-way and two-way 
interactive applications -often of a transnational nature -and so the applications 
would be unlikely ever to be developed. The terminals for the fixed satellite service 
are frequently referred to as VSATs ("Very Small Aperture Terminals" or "micro­
terminals"). However, mobile and radiodetermination terminals can also be 
considered part of this class of terminals. 
The services on private terminal networks are generally provided by value-added 
service providers using space segment leased from a space segment operator. Thus 
they provide revenues both to the operators and to the service providers. It is 
estimated that in 1989 the value added in Europe by satellite business service 
providers was 55 MECU. 
This is still a small sector in terms of total revenues, compared to satellite-based 
telephony transmission and other traditional satellite applications, and revenues 
generated by satellite television channels. However, it is estimated that by the mid-
1990s, business services revenue could be near 900 MECU, or more than 30 % of 
total satellite service provision revenues -if regulatory constraints are lifted. 
Examples of such value-added services are: Satellite Information Services in the 
United Kingdom, which has been delivering racing results and betting prices to 
bookmakers and totalisator agencies in the U.K. for over two years, comprising 
nearly 10.000 receive-only terminals; ISIS, a similar service in France; and 
PolyCom, which offers news feeds to radio stations and newspapers, stock market 
information to brokers and meteorological information to radio, TV and other 
media. 
42 
As regards two-way VSAT terminals, by 1990 only a few hundreds of terminals were 
installed in the Community, due to the restrictive regulatory conditions -even if 
some major initiatives were under way24• 
4.3 Videoconferencing 
For videoconferencing, satellites are currently the main transmission medium but 
competition from switched terrestrial 2 Mbit/s networks for services within Europe 
may be expected to develop over the next decade. It is important to recognise that 
two-thirds of the revenues generated by videoconferencing are for transmission and 
thus must be considered carrier revenues for business services, but about one third 
of the costs relate to the earth segment (hire of studio or connection of a customer's 
temporary or permanent studio) and can thus be considered as value-added. This 
market sector is also growing very rapidly. In 1987, the value added was estimated 
at 1 -1.5 MECU, and in 1988 the figure is estimated at 3.9 MECU. Carrier 
revenues in 1987 were estimated at 2 MECU and thought to have risen to 7.8 
MECU in 1988. 
4.4 Other New Satellite Services 
Satellite News Gathering (SNG) -the collection of news and data from multiple 
points -and other multipoint-to-point applications represent a growing demand. 
Though at present no comprehensive figures are available, it may be noted that 
under pressure of the events in Eastern Europe, Eutelsat was used for 800 hours of 
such 'occasional use' television in November and December 1989. The regulatory 
regime is of vital importance to the development of the service. At present, the lack 
of an internationally recognised standard for SNG 'terminals has led national 
telecommunications organisations -the INTELSAT and EUTELSAT signatories 
-often to deny SNG operators access to space segment. A Recommendation on 
SNG terminals is being developed by CCIR (International Radio Consultative 
Committee, an ITU body) and is expected to be adopted in 1990. This should 
provide a basis for advancing towards equitable and non-discriminatory access to 
space segment for SNG operators. 
24 For example, in the Federal Republic of Germany, the Daimler Benz company plans the implementation of a 
major VSAT network. In Italy Telespazio is planning the implementation of a number of VSAT networks 
covering Italy. 
43 
Business television (e.g. for distance learning and videoconferencing) is expected to 
be a growing market. It is in this market segment that further enhancements of 
services are expected to be demanded so that an integration will take place of 
videoconferencing with graphics and data distribution. Other foreseen demands 
are the possibility for real time measurements of audience reactions, a flexible use 
of audio return links (not necessarily via satellite), new scrambling techniques, and 
new coding techniques which allow low bit rate transmissions more cheaply ("slow­
scan video"). 
In addition, satellites offer the possibility of providing channels, circuits and 
networks at short notice for a multiple of uses and to locations not served by the 
terrestrial network -for example : scenes of disaster; early services in advance of 
permanent terrestrial facilities; temporary restoration arrangements; and 
communications to short-term events at remote locations. 
5. Entertainment Broadcasting Services 
5.1 TV Distribution 
TV and related distribution services currently represent most of the demand for 
satellite capacity in Europe, and this situation may be expected to continue. 
Currently, some 60 channels are distributed by satellites in Europe; and, as 
mentioned, EUTELSAT derives 75% of its revenues from television distribution. 
Growth in television distribution (mainly to cable heads and SMA TV systems) is 
expected to continue, and should the percentage of capacity used for TV 
distribution remain the same -approximately 80 % in Europe -then more than 
300 transponders25 can be expected to be potentially available for TV distribution by 
European satellite systems in 1992. The availability of medium-power TV 
distribution satellites is seen as a major component in sustaining this market, by 
providing multiple channels at relatively low cost. It will also give impetus for a 
large-scale availability of small television receive-only (TVRO) antennas for general 
use, which can receive these satellite channels Direct-To-Home. Small and cheap 
TYRO terminals with an antenna diameter of less than 1 metre are now available. 
However, the adjustment of regulatory conditions will be a key factor in the 
development of this market. 
25 One transponder is roughly equivalent to the capacity required for one to two TV channels. 
44 
Both television distribution via the EUTELSAT system as well as, more recently, 
via other systems such as Telecoml, DFS Kopernikus and Astra work in the 
framework of frequencies defined for Fixed-Satellite Services and not in the 
frequency bands reserved by the W ARC'77 conference for BSS (Broadcasting 
Satellite Services) where the Direct Broadcasting Services (DBS) are located. As 
mentioned, this has made it increasingly difficult to maintain the distinction 
between BSS services and broadcasting applications operating in the framework of 
Fixed-Satellite Services. There is therefore an evident need for the development of 
cpeap TVROs capable of spanning DBS and fixed service TV distribution bands 
(10.95 -12.75 GHz). 
5.2 Direct Broadcasting Services (DBS) 
As far as television broadcasting is concerned, Direct-Broadcasting-Services or DBS 
-defined as broadcasting services by W ARC'77 -is likely to become another 
important user of European satellite systems, next to TV distribution in the Fixed­
Satellite Services. 
DBS satellites are high-powered satellites conceived along the lines foreseen by 
W ARC 77 , which allocated satellite channels, orbital positions, frequencies and 
polarisations, essentially country by country for Europe, Africa, and Asia, for 
broadcasting directly to individual users' receivers (refer also to chapter II.). 
At that time, the plans were based on national coverage, with comparatively little 
'overspill' from the programmes of a particular country to its neighbours. Home 
receivers were expected to need receiver dishes of 90 cm diameter with the 
technology existing at that time. 
All the five existing European direct broadcast satellite programmes (TV­
SA T /Germany, TDFl-2/France, BSB 1-2/UK, TELE-X/Scandinavia, 
Olympus/ESA) are of this type. Reception of services of these satellites is now 
possible with dishes of 30 -60 cm diameter; a mark of the technological evolution. 
There is therefore an evident need for the development of cheap TVROs capable 
of spanning DBS and fixed-satellite service TV distribution bands (10.95 -12.75 
GHz). 
45 
In 1989, TV and video accounted for 44% of total European satellite carrier 
revenue, or of nearly 61 % when extra-Community traffic via INTELSAT is 
excluded, even before any of the direct broadcasting satellites came on stream. 
1990 has seen the addition of TV revenues from all 16 of ASTRA's TV distribution 
transponders and the coming on-stream of a further 14 DBS transponders from 
TDF 1-2 (5), TV-SAT 2 (5), Olympus (2) and Tele-X (2), while BSB, with 5 
channels, became operational in April 1990. In 1992 a total of 24 DBS channels is 
expected to be available. Thus TV revenues should grow substantially in the next 
two years. 
By the end of 1989 a total of 750.000 Direct to Home (DTH) terminals were 
installed in the Community, with the majority being installed in the United 
Kingdom. The projection for the end of 1990 is an installed base of about 1.8 
million units. 
The projections for the installation in Western Europe of antennas for 
entertainment broadcasting reception by 1994 are estimated at 6 million units. 
Directive 86/529/EEC has identified the MAC family of transmission techniques 
as the standard to be used for Direct Broadcasting Satellites. The Directive expires 
on 31 December 1991. The future evolution of transmission techniques in this area 
will be characterised by the fact that a major challenge for the future will be the 
harmonised introduction of High Definition Television (HDTV) in Europe. 
5.3 High Definition Television (HDTV) 
Satellites will play a crucial role in the introduction of High Definition Television 
(HDTV), which enables larger TV screens, with a wider aspect ratio and better 
picture resolution to be made available to the public at acceptable prices. The 
introduction of HDTV within Europe will almost certainly use DBS satellites in the 
short and medium term. 
HDTV is a high priority area in overall Community audiovisual policy26• This is 
discussed in more detail in chapter IV. 
26 See Communication by the Commission to the Council and to the European Parliament on audio-visual 
policy, COM(90) 78 of 21.02.1990 and Council Decision of 27 April 1989 on High Definition Television 
(HDTV), O.J. L 142 of 25.05.1989, p. 1. 
46 
6. · Mobile Services and Position Fixing Services 
Mobile services are developing rapidly. Although until recently limited to the 
maritime Mobile-Satellite Services (MMSS) on big ocean-going vessels, mobile­
satellite services for maritime services to smaller vessels, for aeronautical, and 
especially land mobile applications, are now at the centre of interests. The intended 
provision of services, both messaging and position-fixing, for land mobile users has 
meant a renewed interest, especially from long-haul trucking companies, 
enterprises with smaller coastal and waterway vessels, high-speed train operators 
etc. 
6.1 Maritime Services 
Currently, the INMARSAT system provides voice communication which, although 
of high quality, requires comparatively large and expensive (30 000 ECU) terminals 
with dish sizes of about 1 meter on board ships. However, INMARSAT intend to 
introduce in 1990 a service supporting low data rate communications to small, 
cheap terminals -via so-called INMARSA T standard C terminals antennas of 
about 20 cm. It is anticipated that by 1992-1993, voice communications will be 
possible using similar small terminals. This will bring direct benefit to a whole 
range of ships including those which predominantly stay within the coastal waters of 
the Community, as opposed to the current system, which is much more optimised 
for the requirements of large, ocean-going vessels. 
6.2 Land Mobile Services 
Recent studies indicate that Land Mobile-Satellite Services (LMSS) and the 
terrestrial pan-European digital cellular network (GSM)27 will be mainly 
complementary and rarely in competition with each other. The higher price and 
bigger size of the LMSS terminals are mainly of interest to specific user groups of 
limited size seeking instantaneous and full European coverage, such as long-haul 
trucking companies and vessel operators. On the other hand, GSM offers better 
quality voice and a higher system availability in urban areas and, combined with 
smaller user terminals (down to hand-held size) and a lower price, is intended as a 
27 Council Recommendation of 25 June 1987 on the coordinated introduction of public pan-European cellular 
digital land-based mobile communications in the Community and Council Directive of 25 June 1987 on the 
frequency bands pertaining thereto, OJ. L 196of17.07.1987, pp. 81 and 85, respectively. 
The new pan-European system -also called the "GSM"-system -will be implemented in the Community 
47 
mass service for private and local business users. Nevertheless, some level of 
integration of the services at system level may be developed in order to exploit both 
systems to their full potential. 
A recent study indicates a total captured market for satellite-based land mobile 
services (including position-fJ.Xing28) in Europe of only 220,000 data terminals and 
65,000 voice terminals by the year 2000 in Europe, compared to a forecast of 16 
million terminals for terrestrial cellular systems by that time. 
Plans for mobile or position fixing services in Europe have been announced by . 
INMARSAT, EUTELSAT and LOCSTAR. ESA has announced an experimental 
European Mobile Services initiative, to be embarked on a satellite of a third party. 
This makes it all the more imperative to free the economic operators from a 
maximum of restrictions so that the available capacity can be offered to users under 
optimum conditions and at competitive prices. 
6.3 Aeronautical Services 
28 Aeronautical services have developed faster in the United States than in Europe. 
In a combined effort, the USA and Canada have set up an entity called M-SA T to 
provide aeronautical services over the North-American landmass, with the AMSC 
consortium as the U.S. partner (see below). 
In addition to this, on a global scale, INMARSA T aims to provide aeronautical 
services, including passenger voice telephone traffic. However, air traffic control 
information and airline information may prove to be more important. 
Just as in the case of maritime satellite communications, initial service will be 
optimised for the longer, trans-Oceanic routes. Nevertheless, there remains a clear 
possibility that the use of satellite communications to aircraft over the European 
landmass can make specific contributions to flight safety and airline efficiency. 
from 1991 onwards (see also chapter V.). 
Position fixing services allow the determination of the position of ships, vehicles etc. down to precisions of 15-
100 meters, depending on the system. For Europe all land mobile-satellite services will offer position fixing 
services as an option. 
48 
7. Development in other major markets: United States and Japan 
The technological and market developments have led to substantial changes m 
other major markets, in particular in the United States and Japan. 
7.1 The United States 
The United States have undertaken substantial liberalisation of the satellite 
communications sector. It is now the far largest market for satellite 
communications systems and services. 
7.1.1 Domestic "Open-skies" policy 
As early as 1972, the US Federal Communications Commission (FCC)29 
established a domestic fixed-satellite service licensing policy based on the principle 
of open entry -ie. that all qualified applicants should be allowed, where possible, 
the opportunity to provide domestic satellite communications services, both for 
accessing in-orbit satellite capacity for operating satellite networks as well as for 
launching and operating space segment capacity. This policy has since become 
known as the "open-skies" policy. 
The FCC has adopted flexibility in the allocation of orbital location and spectrum 
(e.g. through the use of two-degree orbital spacing), with the effect that to date 
there have been sufficient orbital locations available to allow the FCC to grant 
applications of all qualified domestic fixed-satellite applicants. 
U.S. entities licensed to construct, launch and operate domestic satellites may 
provide capacity on a common-carrier basis to other entities -either those that 
provide telecommunications services to third parties or those that use the capacity 
for their own internal purposes30• 
29 The US Federal Communications Commission (FCC) is the US Government body which is empowered to 
regulate interstate and foreign commerce in communications. The FCC grants licences for the use of 
channels of interstate and foreign radio transmission, and prescribes the technical, financial and other 
qualifications of a licensee, including those entities licensed to construct, launch and operate domestic and 
international satellites. 
The FCC establishes licensing policies for the fixed, mobile and broadcasting satellite services. The policies 
which it adopts in each area are intended to achieve specific objectives, mainly related to the development of 
the US satellite industry. 
30 A common carrier is a provider of services to the general public. They may also seek FCC approval to sell 
transponder capacity on a non-common carrier basis. 
49 
Entities leasing or owning domestic transponder capacity may also offer that 
capacity to users on a non-common carrier basis. Where the entity owns and 
operates the transmitting earth station accessing the particular transponder, it must 
receive a licence to construct and operate the earth station. A "blanket" licensing 
procedure is available for entities that operate large numbers of technically identical 
domestic very small aperture terminal (VSAT) transmit-receive earth station facilities in 
the 12/14 GHz band. Networks operating in the 4/6 GHz band however (a band 
not used in Europe for this purpose), must be co-ordinated and is subject to 
individual station licenses. This blanket processing entails the grant of a single 
licence for the overall domestic earth station network, without specific information 
on each station. The FCC does not license (or require to be licensed) domestic 
receive-only earth stations in the 12/ 14 GHz band because fixed-satellite service is 
the only service allocated to this spectrum on a primary basis and interference is 
therefore unlikely. Entities operating domestic receive-only earth stations in the 
4/6 GHz band may voluntarily seek licensing if they desire; the licensing gives 
protection against interference from terrestrial facilities sharing the spectrum on a 
co-primary basis. 
The "open-skies" policy has led to a rapid evolution of the U.S. domestic Fixed­
Satellite industry. Eleven companies hold 52 licences to construct, launch and 
operate domestic Fixed-Satellites. Thirty of these are in operation. In addition, 
thousands of entities hold transmitting earth station licences for accessing in-orbit 
satellite capacity. The industry has been characterised by innovation and diversity 
as the number and kinds of providers and services offered have steadily increased. 
Satellite service providers range in size from large facilities-based carriers to very 
small resellers of transponder capacity. Services include all type of data, voice and 
video transmissions. Earth station developments, have been as dynamic as space 
station developments as the size and cost of antennas has decreased while their 
performance characteristics have improved. 
50 
The value of the business has increased accordingly. In 1990, small satellite dish 
networks are expected _to earn $ 300 million to $ 400 million in revenues for their 
operators. VSAT network sales are expected to grow at an annual rate of 30 to 40 
per cent during the coming years. In 1984, when Ku-band transponders first came 
on stream, there were around 2000 earth stations in place. By 1988 that total had 
grown to 16,000 stations, while now (1990) approximately 40,000 stations are 
installed of which about one third are transmit/receive stations -compared to a 
few hundred transmit/receive VSAT terminals in Europe. Recently Hughes 
Network Systems Inc. announced that it was to supply a single network of 
approximately 10,000 dishes to General Motors, for completion by 1992. 
The early adjustment of the regulatory conditions for domestic satellite 
communications in the United States has given the US space industry a substantial 
advantage on the world market in this area. In spite of the dynamic satellite market 
thus created in both space segment and earth segment, satellite communications 
has not had a visible negative impact on telecommunications revenues earned by 
the terrestrial telecommunications carriers. After one decade of dome~tic "open 
sky policy", total satellite communications revenues account for no more than 2 -
3 % of total telecommunications revenues while liberalisation has in practice led to 
a substantially higher and more diversified development of the US space sector in 
this area. 
7.1.2 U.S. approach to international satellite communications 
In contrast to its approach to domestic satellite communications, the US approach 
to international satellite communications is still characterised essentially by the 
structures established during the sixties. 
In the US, Comsat, created in 1962 as a special body, is the organisation which 
carries out the signatory role undertaken in Europe by the telecommunications 
organisations31 in relation . to INTELSAT and INMARSAT. However, more 
recently, common carriers and private users also have the right, under certain 
restrictions, to purchase or lease capacity from U.S. international satellite system 
providers separate from the INTELSAT system ("separate systems"). These 
entities may either own their own earth stations or lease earth station services. 
31 With the exception of Italy, where Telespazio has been created as a special organisation for assuming chis role 
(see chapter II.). 
51 
In November 1984, the United States issued a Determination that alternative 
satellite systems were "required in the national interest". This determination states 
that the United States shall consult with INTELSAT regarding such systems "as are 
authorised by the Federal Communications Commission". The Departments of 
State and Commerc~ jointly laid down the restrictions to be imposed on the 
alternative systems prior to final authorisation by the FCC, in order to ensure U.S. 
fulfilment of its international obligations and the furtherance of its 
telecommunications and foreign policy interest: 
separate systems were to be restricted to communications n?t 
interconnected with public-switched message networks (except for 
emergency restoration service); and 
one or more foreign authorities were to authorise use of each system and 
enter into consultation procedures with the United States Party under 
Article XIV( d) of the Intelsat Agreement to ensure technical compatibility 
and to avoid economic harm. 
In 1985 the FCC established regulatory policies for the consideration of separate 
satellite system applications. Separate system operators may not operate as 
common carriers. No communications over separate systems may interconnect with 
the public switched networks. The "no-interconnect" restriction applies to all levels 
of users of these facilities. Common carriers and enhanced service providers may 
acquire and re-sell separate system space segment capacity consistent with this 
restriction. Use of separate systems by U.S. common carriers requires 
authorisation from the FCC. 
Applications for international separate satellite systems are subject to public notice 
and opportunity to comment. Final authorisation to construct, launch and operate 
a separate system is not given until INTELSAT Article XIV( d) obligations are 
satisfied. Besides these obligations, carriers are subject to the same legal, financial 
and technical requirements as U.S. domestic satellite applicants. 
Six entities hold conditional construction permits and one entity, Pan American 
Satellite (PAS), has a licence to construct, launch and operate an international 
separate satellite system. PAS and Orion have completed Article XIV(d) 
consultation. PAS has an operating satellite providing service between the U.S. 
and Central and South America, the Caribbean and Europe. Final authorisation 
for Orion is pending. 
52 
In June 1990, PAS filed with the FCC to lift the restrictions on interconnection of 
its services with the public switched network (interconnection with voice and data 
message handling services), stating that this limitation restricted it from operating 
in more than 90 % of the potential market. 
7.1.3 Mobile-satellites services in US 
In the field of mobile-satellite services, the U.S. satellite telecommunications policy 
is still strongly based on considerations of national interest. In 1984, the F~C 
proposed the establishment of a new public domestic mobile-satellite service 
(MSS), and invited interested parties to submit applications for authority to 
construct, launch and operate an MSS system. In 1986 it concluded that joint 
ownership of the first generation MSS system would permit a variety of competitive 
mobile-satellite services to be made expeditiously available to the public. The FCC 
reasoned that only one domestic MSS system should be authorised for the first 
generation because there was: 
a limited amount of L-band frequency spectrum apportioned jointly to 
Aeronautical Mobile-satellite Services (safety) (AMSS(R)) and MSS, and 
none of the twelve parties seeking licences submitted a proposal which 
would permit licensing more than one system; 
a need to provide priority and pre-emptive access for AMSS(R); and 
a need to co-ordinate spectrum use with other planned satellite systems 
such as INMARSAT and Canadian and USSR systems. 
Therefore, the FCC instructed those applicants which met basic qualification 
requirements to form a joint venture and propose an MSS system to operate in 
accordance with the general licensing provisions. The FCC subsequently licensed 
American Mobile-satellite Corporation (AMSC), the consortium of MSS 
applicants, to construct and operate a c.ombined AMSS(R) and MSS satellite 
system. This approach has been contested as being restrictive and discriminatory 
with regard to non-U.S. based potential service providers. 
53 
7.2. ~ 
Japan's first experimental satellites were designed and constructed by American 
contractors. Under the terms of the co-operation agreement, however, Japan was 
able to purchase licences and sign numerous co-operation agreements, and thus to 
follow a strategy of improving its equipment and increasing the Japanese 
involvement in successive satellites. During the 1970's and '80's, the contribution of 
Japanese industry increased steadily, to the point where the last two generations of 
experimental telecommunications satellites, ETS IV ( 1981) and ETS V ( 1987) have 
been 100% Japanese manufactured. Similar progress has been made in launchers: 
Japan expects to be able to launch its own telecommunications satellites by 1992. 
On the applications side, a major change occurred in 1985 with the privatisation of 
NTI and the enactment of the Telecommunications Business Law32• 
In the wake of the implementation of the law, the Ministry of Posts and 
Telecommunications (MPT) has licensed two large satellite groups as Type I 
(domestic) carriers, competing with NTI. They are Japan Communications 
Satellite Co. (JC Sat.), owned by Hughes Communications, C. Itoh and Mitsui, and 
Space Communications Corporation (SCC), owned by Ford Aerospace, Mitsubishi 
Electric and Mitsubishi Corporation. 
Each company has ordered a two-satellite system from its American partner. JC 
Sat. now has both satellites in orbit, and SCC has one: its second satellite, 
Superbird B, was lost due to a launch failure in February 1990. Its replacement is 
due to be launched in 1992. 
In a change of policy, Japan also modified its position with respect to the role of 
NASDA33, the National Space Development Agency, in the technological 
development of telecommunications satellites. With the deregulation of 
telecommunications and the granting of licences to private companies using 
American satellites, the government has decided to count mainly on the beneficial 
long-term effects of the development of satellite-based communications m 
particular of the earth segment, where Japanese manufacturers have already 
achieved an extraordinary dominance -and satellite services. 
32 The Law classifies telecommunications business into two main types: Type I or facility-based businesses, which 
provide telecommunications services by establishing their own circuit facilities, and Type II or resale 
businesses which provide services by using circuits leased from Type I carriers. The proportion of foreign 
ownership of any Type I carrier is limited to 30 % . 
33 Since the early seventies, the National Space Development Agency (NASDA) formed in 1969, has been the 
54 
The creation in early 1987 of Space Telecoms Research Group at the initiative of 
MITI, the Japanese Ministry of International Trade and Industry, was one of the 
factors marking the gradual withdrawal of NASDA and making way for private­
sector support of the space industry by telecommunications companies. The new 
company received 70% financing from the Japan Key Technology Centre, which is 
supervised by MITI, and 30% from ten private or semi-private ~ompanies including 
N'IT, KDD and NHK. 
The two private satellite systems already authorised will off er 108 transponders 
when all 4 satellites are launched. This is equivalent to the capacity of all five 
• Eutelsat H's and both Astras, to cover a market with just half the population of 
Europe. This capacity will be further increased by the national CS3 satellite (24 
transponders). By April 1990, SCC and JC Sat. had l~ased about 60% of their 
transponders: 40 out of 64 on the JC Sat. 1 and 2 satellites, and 25 out of 44 on 
SCC's Superbird A and B. 
A third Japanese-American consortium proposing a private system is Satellite 
Japan Corporation (SJC), a joint venture of RCA Astra Electronics, Sony, Nisaho­
Iwai Trading and Marubeni Trading. Satellite Japan has not yet been authorised by 
MPT, which fears considerable over-capacity. Similar fears were expected before 
the JC Sats and Superbird came into operation but it now seems likely that both will 
prosper. 
While the satellites were mainly designed to cater for television distribution -and 
indeed have been notably successful in leasing transponder space, both to NTT and 
to cable operators -other applications have also developed rapidly. In particular, 
commercial broadcasters are very interested in the use of satellites for satellite 
news gathering (SNG). These applications already account for four transponders 
on Superbird-A, and SCC expect that this will rise to 8-12 transponders. In fact, the 
availability of, and freedom of access to, space segment has led to the creation of a 
number of independent service providers. These companies are also expected to 
move into the provision of business television services, another rapidly developing 
application -e.g. one business TV company in Japan is selling used cars by 
satellite. 
main agent of government intervention in satellite manufacture. 
55 
Private satellite business networks are another area of major interest. Several of 
the big Japanese electronics firms have announced plans for networks to link up 
their manufacturing plants, regional offices and distribution outlets by fax or video. 
Mitsubishi, a co-owner of JC Sat., uses the system to deliver information to its 
corporate sites. Some of the networks involved are very large and may comprise of 
up to 5000 terminals. While one-way applications are set to dominate the market 
initially, several Japanese electronics companies have developed prototype 2-way 
VSATs. 
8. Summary 
During the last decade, satellite communications technologies have undergone 
dramatic change. 
In addition to the traditional large earth stations for trunk telephony and TV 
programme interchange, new satellite terminals are now available for Direct-To­
Home television and for specific user applications which operate with antenna 
diameters of 0.5 -2.5 meters depending on applications and which can be installed 
under user control directly on user premises. 
The technological change has opened a broad range of new opportunities for both 
satellite service providers and users -particularly in point-to-multipoint service 
provision via satellites. The new service types which are developing, tend to be 
complementary to the traditional services, instead of competing with them. While 
in trans-Atlantic communications, satellite links still account for ·nearly 60 % of the 
traditional trunk telephony (although this percentage is now decreasing), satellite­
carried voice telephony accounts for only 2 -3 % of intra-European international 
and national long-distance calls. EUTELSAT derives 75 % of its revenues from 
television distribution. 
Technology has now made it possible to broaden the availability of satellite 
terminals and services to individual users. The introduction/ expansion of major 
new satellite services lines -such as wide-area VSAT networks to serve the 
Europe-wide communications requirements of specific user groups -will depend 
on the development of a regulatory framework which will allow it to happen on a 
Europe-wide basis. More generally, Europe's growing number of satellites must be 
put to the full use of the European economy. 
56 
Satellite services must be allowed to define and develop their specific markets, in 
order to maximise the benefit of Europe's overall investment in its space segment 
and to provide the European users with the trans-European services they need. 
The United States and Japan have adopted a market-oriented policy in their 
domestic satellites market, in order to develop the industry. After eighteen years of 
domestic open sky policy, the United States has become a leader in new satellite 
communications applications. By now there are approximately 40,000 VSAT 
terminals in operation in the United States, of which about one third are 
transmit/receive stations, compared to a few hundred transmit/receive stations in . 
Europe. Japan is_ now preparing its entry into the world market on the basis of the 
de-regulation of the sector in its home market. 
While essential for satisfying the requirements of specific business and consumer 
groups, satellite communications services will pose no threat to the financial 
viability of the terrestrial infrastructure. In the United States, even after nearly two 
decades of domestic open sky policy, total satellite communications revenues 
account for no more than 2 -3 % of total telecommunications revenues while 
liberalisation has led to a substantial and more diversified development of the 
sector. For Europe it is forecast that total satellite communications revenues will 
reach no more than 1.5 -2.5 % of total telecommunications revenues by the year 
2000. Currently, the total revenue of all satellite operators in Europe accounts for 
no more than 0.4 % of total telecommunications revenue in the European 
Community. 
Figure 5 gives an overview of key-figures on satellite communications in Europe. 
Figure 5 
SATELLITE COMMUNICATIONS IN EUROPE -AN OVERVIEW1 
:_>_::1·::._.:_ :::·s·:·p.: .. A:: :c···::·E··::: __ :s:. ·.:E. ·:G·:··_: .. M·· ·:E·······N·:·T··_··_ . .... ······· . . ... .. ' . 
:..:>:::_,-::•-:::::::: ... .' .::·:. .. · .... ·.·: .... .:: ..... : .... : ....... .' ........ : 
::: ... : ............... ·:-.-:.:-··.:..:::::._··. :: -:· .. _··.::.· ... :-:._.::-_.:._.:·:.::-.. -.. : ... .-::: .. ·· · ... _.-:._·· .. :-:-.-·:.:: .. :.:-:-.-.:-.. :.:-.:· 
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_/:9µ.(f~f WW¢fr¢4r9p¥a:..f ¥f~1@~:+--------------------------~----------~---~------~-~-~~-7;-.JF _·pp::::::++a..t.:.:::.-::-:::-< 
:::::.:tot~i)~paC.'iw:·ctr~n$P.Qlld:er8)··:o99o) · ----~----------------~------------~------.;L.;_~~-·-•: >.:::·::: :;.+~++4.;:aso:::::_•:.::·:· : 
·:·::::oud:>t-:wtii<::ti:'l·NTEtsA.+f~~;~-~--~-~-------------------------------------------------~---------~"'~~-:~ -·~~·~·::.·:: ___ :48%>:•.:······.-·: 
>._•·~tifet$%T{: ::· -#~F. '. '..· : ) L.L----------------------------~-·----------------------~-~~~+ \.::.: / '.'.-:.-.~L .. 2.~~{:::::: / 
))~#.f ##g~i_§#P.#¢it)I p(~·G,f#Pean sat ell it es from 1989 to• 1993 -------~ .... -- · · .. · . ._:·· ::_;. ~1$~:.{ :: :::::.> 
<J$Jf1¢t:easeJrff'luml#.{ot #atjsponders) 4 ·.·. ::::: .: : .:. ·::: 
.::-thote.~$~p'1 riuffit)e.fqf~ijr9f)ea~ satellites from 1990 to 1993 ____________________ ..;._~~ .. :· <~~~~:.~:.~7:.~~::<.::::· 
.............. . . ......... . . .. .... ..... . 
···:··.·:::;:.·:.:: . 
. >~Q~i6~*~·je.rr.rt1na1~•.0:9~~>--~~---;.----------------------------------------------------7--;.--~+;.+:·::: .:..-:++~:-::B9@.···-•:: ·· ... ·.· 
_::•,.:·:r..~p.e.i\re-oniV'::~;.~.~"'. ... ~~--"'.--.... ~ .. ~~ .. 7---------------------------------------------------------~;.--++ : .... _"'.;._"'..__ .. .;:•~>::•·•· .... :. 
::·:::~:.ftfi,:;.Y,¥p-~~ .. l.~-;; __ ~~:.;. __ ;..~L------~---------------------------------------------------------.. · ·· _:_:_:·•: .. ~4;~~~·400:•:-:::•.: .. ·•·:-·-: 
:?f~ffuJn~ls:U.~~ f(°)rtelevision reception (1989)-------------------------------------------~--~? :_:. •• .,,.-84~06: : :·.· . 
. :: \Pt'Y:~1:~--~C>.y$et101cr .. ~ .. ,_-~ .. ~--7-;.•~---------- -------------------------------------------------- .. -~: : .;.L .. ~~--:00% .. 
·::: Y~fl.l'~Jaeds·~~""-:-~--:-- .. -H-:--"':--.. -.:..----------------------------------------------------------~---+:_ 
....... ,..... ..... . ..... 
. {T§~'-lf~y~9~e~:p:~rive<:[by: $a~elilte operators (1990-estlmated)s ----------· __ .......,.._ .. ·. _ ... _. __ .. _ ........... _ ..... __ ··. _ 
::<:<:>.lif.of W.tii:Ch<: ::.::.:.:· · .. ·. ·_-. · ·--.·:: ::.-:::.: :_·:·_·:-.. ·:: .. ·-:· : ...... ·.:-: :.: .. :: ...... 
............. .. ··········· .... . ..... . ...... -: .. :-:-.:. .. ·::-:·:. ·. 
::·-.y:$at:~1ilte.·:~i'ri*1·-telephorit~----------------------------------------------------------:-----~~ .. .,-.. ~--.. A.;-.:~·44.%: •. ···· · 
<:/~fol_i@(iisfoblJted.television services10 --------------------------------------------------~-2 .. .:. ... .;~.L .. _ .. 46.%, <_ ... 
• )~ :6~~/:~ie1 ite·ser\lice$1l · --7"-----~------------------------------------------------------------------.0.. · ... .; ... _.;;. ___ · 1 0% 
2 
3 
4 
5 
6 
7 
8 
9 All 1990 figures based on August 1990. 
including 7 INTELSAT satellites, 1 PanAmSat, 2 INMARSAT, 2 Arabsat, number of USSR satellites unknown. 
including an equivalent of 150 telephony transponders and 18 TV transponders. INTELSAT capacity mainly 
used for trans-Atlantic and trans-continental use. 
according to announced plans (see fig. 2 and 3). Total number of equivalent transponders on European 
satellites announced for 1993 : about 400. Total increase in transmission capacity will depend on technology 
and access methods used and will be larger than increase in number of transponders. 
This represents mainly VSAT terminals. The number of VSAT terminals world-wide in 1989 was about 44 000, 
mainly in the United States. 
About 30 000 world-wide 
About 14 000 world-wide 
This corresponds to 0.45% of total telecommunications revenue in the European Community + EFTA 
countries (95 billion ECU in 1989) 
out of which 33% INTELSAT carried trans-Atlantic telephony. Within the Community satellite based 
telephony does not correspond to more than 2 to 3% of international telephone service. 
lO Currently, more than 60 satellite TV channels are available in Europe. Near 75% of current EUTELSAT 
revenues are derived from television services. 
11 Including video conferencing services and point to mult-point one-way and two-way VSAT systems. 
IV. SATELLITE COMMUNICATIONS IN A GLOBAL POLICY 
CONTEXT 58 
Satellite communications will play a major role in Europe's economy of the nineties. 
The definition of a coherent approach to satellite communications in the 
Community must take full account of these broader aspects. 
1. Satellite Communications in the Context of Community Space 
Policy 
Satellite communications represents by far the largest commercial application of 
satellite technology. 
Europe's cumulated total effort in space up to the year 2000 through ESA will total 
more than 30 billion ECUs in addition to national space programmes, with a major 
political commitment to ensure European autonomy in space, including manned 
spaceflight. Cumulated revenues over this decade related to satellite 
communications -for satellite operators for the provision of space segment, for 
the distribution of satellite TV channels, and for satellite terminal sales alone -are 
forecast to be far in excess of 20 billion ECUs, depending on the lifting of existing 
restrictions. Satellite communications will therefore determine, to a large extent, 
the commercial success of Europe's efforts to gain a strategic and future-proof 
position in space. 
The Commission's overall approach to space policy is set out in Communication 
COM(88) 417 on the proposed Community approach to space policy of July 198834• 
After analysing the European space effort in the world context, its current strengths 
and weaknesses, and identifying the Community's role, this communication 
proposed major policy goals for European space policy. 
34 The European Community and Space-A Coherent Approach, COM(88) 417of26.07.1988. 
35 59 
The discussion presented in the Communication led to the identification of six lines 
of action for a consistent development of the Community's space activities: 
Research and Technological Development promoting full 
complementarity and interaction between the Community's R & D strategy 
and the programmes of the European Space Agency (ESA)35; 
Satellite Communications the need for a consistent approach to 
networks, the 'development of new services and to regulation; 
Earth Observation stimulation of the applications market for 
meteorologica~ earth resources and environmental satellites; 
Industrial Development -full use of the benefits of the single market, 
above all to improve the competitiveness of relevant European industry; 
Legal Environment contributing to the establishment of favourable 
conditions for the development of European space activities; 
Training -promoting the development of high-level European training . 
. For the particular case of satellite communications, COM(88) 417 foresees four 
lines of action: 
Ensuring that satellite techniques are taken into consideration in the 
development of networks and services at European level and optimising the 
complementarity of satellite and terrestrial systems; 
The annual budget of ESA amounted to some 2bn ECU in payment authority in 1989. The major 
development lines up to the year 2000 are the development of the European space shuttle HERMES, the 
European space station element Columbus, the ARIANE 5 launcher programme, and advanced satellites for 
science, earth observation and communications. ESA's budget for development of satellite communications is 
currently between 250 and 300 million ECUs annually. 
ESA has played a key-role in the development of the European capability in satellite communications. The 
Agency develops and launches experimental satellites to test their viability in orbit (the OTS satellite, 
launched in 1978, OLYMPUS launched in 1989 and ARTEMIS to be launched in 1993). ESA also developed 
and launched the initial systems for EUTELSAT and INMARSAT, the so-called ECS series used by 
EUTELSAT from 1983 onwards and the MARECS-A (launched in 1981) and MARECS-B (launched in 
1984) satellites for INMARSAT. 
The current ESA OLYMPUS programme is intended to develop and experiment in orbit-technologies in 
order to develop commercial satellite programmes in the 1990s in communications and broadcasting. The 
satellite is intended for telecommunications (small terminal systems, data and education services, broadband 
communications and experimental high-frequency transmissions) and broadcasting (High Definition 
Television, datacasting, encryption, etc.). 
With the exception of Greece, Luxembourg and Portugal, all Community Member States are members of 
ESA. 
60 
Creating the political, regulatory and standardisation conditions necessary 
for the development of new services and equipment, to ensure maximum 
exploitation of space systems; 
Promoting the use of satellite communication systems m the 
implementation of Community policies, such as in the education and 
training field; 
Undertake Research and Development to promote the development of 
space system applications. 
The Communication has received an initial review by the Council and is now under 
examination by European Parliament. 
In the period since the publication of COM(88) 417, the Commission has promoted 
the use of· satellite communications systems in the implementation of Community 
policies in particular in the fields of rural and regional development, notably to 
implement education and training systems in remote and rural areas of the 
Community, aid to developing countries, education and training, transport and 
fisheries, and has had a close liaison with the European Space Agency on the 
technological developments aimed at preparing future European 
telecommunication satellite systems. 
Under the RACE programme, the role of satellite communications in a future 
European broadband network is currently being analysed36, and these activities are 
foreseen to be continued within the new Community R & D framework programme 
for the period 1990 -1994. Further, the DELTA programme37 on distance learning 
applications using information and communications technology, has closely 
examined the use of satellites as a distribution medium as in the main .pilot project 
Channel E38• The COMETI programme, which promotes partnerships for 
education and training between universities and enterprises, is supporting the 
EuroPACE39 project. 
36 RACE project R1002 investigates the role of satellites in the for:eseen broadband communications 
environment of the following decades. The project members consist of 10 l~ding European aerospace 
companies. 
37 Developing European Learning through Technological Advance: this 20 MECU Community programme 
demonstrates how a full range of information and telecommunication technologies for the next decades 
relates to the delivery of education and training. 
38 Channel .E : A programme proposed by the European Institute for the Media for development of an 
education and satellite service using the SES/ASfRA satellite. 
39 EuroPACE, an initiative to deliver expertise training material to R&D sites across Europe. Sponsorship 
61 
Europe's space policy during the seventies and eighties has successfully promoted 
the achievement of a strong European position in the launch rocket field. With the 
different ARIANE generations, Europe now has a market share of more than 60 % 
of the satellite launcher market, equivalent to annual revenues of 540 MECUs 
(1989), with a backlog of 37 satellites to be launched. 
In the field of the space segment, Europe has developed some of the most 
sophisticated satellite technologies now existing, in particular in the field of 
telecommunications satellites mainly due to the successful research and 
development of the European Space Agency. Their latest satellite, OLYMPUS,. is 
one of the largest and most powerful communications satellites yet launched, and is 
now demonstrating· a whole range of new services, particularly those using small 
ground equipment. The users of Olympus in the field of education and training 
have been associated in EuroSTEP40. However, largely due to the lack of 
development of a commercial satellite communications market in Europe, the 
European export position in this area has been weak the only European 
telecommunications satellites sold on the world market have been two Arabsat 
satellites whilst a consortium led by British Aerospace is constructing the 
INMARSAT-2 generation of satellites. 
However, the highest price for the current restrictions in the satellite 
communications market has been paid in the field of the earth segment. Since the 
European earth segment market was of insufficient size for European industry to 
develop its competence in this field, less than 15 % of INMARSA T shipborne 
equipment is of European manufacture and European suppliers of EUTELSAT 
terminal equipment have also performed poorly. Only in those fields of the market 
where liberalisation is relatively advanced in Europe, i.e. television receive-only 
antennas, European manufacturers have scored a major market share in Europe -
over 90 % of all equipment sold in 1989 -even though this equipment currently 
includes many non-European components. 
The fact that -for a particular satellite system -the investment in earth station 
equipment is substantially more than in the satellites themselves, shows the 
development potential which could be lost in this area. Discussion with relevant 
European industry has shown that they believe they will be able to improve their 
competitive performance once current restrictions in the earth segment are lifted. 
comes from Eruope's leading IT &T undertakings. 
40 EuroSfEP : the EUROpean assocation of users of Satellites in Training and Education Programmes ; an 
independent user association of more than 300 organisations from 16 European countries which utilises 
OLYMPUS transmission time for the educational channel for Europe. 
62 
It is worth noting here that studies undertaken for the Commission indicate a 
tripling in the size of the small earth station market, should restrictions be eased. 
63 
In addition, a number of current initiatives will need to be followed further, in order 
to improve the position of the European space industry in satellite communications: 
Full use of the technological potential of the European Space Agency, in 
order to develop satellite technologies further for both private and public 
applications; steps towards this have been taken with the approval by the 
ESA Council in July 1990 of the ARTEMIS41 experimental mission, and a 
data relay satellite programme; 
.: Further application of satellite communication systems m the 
implementation of Community policies. 
This concerns in particular the use of advanced telecommunications for 
regional development. Through its STAR programme, the Community has 
given financial support for the setting up of major satellite ground stations 
and business services terminals for transmission links. 
It also concerns the Community policies for education and training, 
transport and fishing and for the developing countries. 
Full attention to the role of satellites in the context of the future 
development of telecommunications in the Community, in particular as 
regards pan-European services, as well as for the development of Integrated 
Broadband Communications (IBC). 
2. Satellite Communications in the Context of Community Audio­
Visual Policy 
Satellites play a key-role in the Community's audio-visual policy, in particular as 
regards pan-European services. By the end of 1989, more than 60 television 
channels were distributed via satellite across Europe. 
41 Advanced Relay and TEchnology MISsion, an experimental satellite under development by ESA which 
carries a laser optical data relay experiment, an S-band relay payload, an advanced L-band land mobile 
services payload and a number of spacecraft technology experiments. 
64 
2.1. Overall Audio-visual Policy 
42 
43 
44 The Commission has set forth the major policy objectives in the audio-visual field in 
its Communication of 21 February 1990 to the Council and the European 
Parliament on audio-visual policy42• Major regulatory positions have been defined 
in Directive 89/552/EEC on Television without Frontiers0. 
In the Communication COM(90) 78 the Commission proposes a three-pronged 
approach towards the development of the European audio-visual industry: 
Establishment of an environment conducive to the competitivity of the 
audio-visual industry, based on directive 89/552/EEC. 
Harmonisation of national legislation on copyright protection (an important 
issue for satellite broadcasting, discussed below), encouragement of 
pluralism and diversity in programme production, and promotion in line 
with Community competition policy are important prerequisites for the 
establishment of such an environment. 
Promotion of the audio-visual production industries. 
For this purpose the Commission has proposed the MEDIA44 programme 
to contribute to the restructuring of the audio-visual industry while ensuring 
the necessary synergy with EUREKA-Audiovisuel. Both upstream and 
downstream of production per se, MEDIA aims to develop a set of 
complementary actions which derive their value from the Community 
dimension and which are built around four elements: distribution, 
production, training and financing. The proposal is, inter alia, to encourage 
the emergence, on a European scale, of new audio-visual programme 
services using innovative broadcasting technologies, including interactive 
communication by satellite. 
Promotion of new technologies. 
Communications by the Commission to the Council and to the European Parliament on audio-visual policy, 
COM(90) 78, 21.02.1990. 
Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities, 89/552/EEC, 03.10.1989, 
O.J. L 298of17.10.1989, p. 23. 
"MEDIA" -Action programme to encourage the development of the European Audiovisual Industry, 1991-
1995, COM(90) 132. 
65 
The constant innovations in the field of new technologies, particularly 
concerning the new generation of satellites and the development of high­
definition television (HDTV), have important implications for the audio­
visual sector. Along with the numerous public and private sector actors in 
this field, the Commission participates in this process: 
through its standardisation activities. Council Directive 
86/529/EEC of 3 November 1986, was a first step towards the 
adoption of a common standard for direct broadcasting by 
satellite5'5; 
through its co-ordination ... role, which is fundamental to the 
development and promotion of European HDTV; 
through its research programmes (notably ESPRIT, RACE and 
AIM). 
Satellite broadcasting to the general public including both applications in terms of 
the definition used in the Radio Regulations for the Broadcasting-Satellite Service, 
as well as broadcasting applications operating in the framework of the Fixed­
Satellite Service -will develop into the major component of transnational audio­
visual services in Europe. They must therefore be seen in the light of overall 
Community audio-visual policy. 
2.2. The development of High Definition Television (HDTV) in Europe 
On 27 April 1989, the Council adopted a decision on a plan of action46 on the 
introduction of HDTV in Europe. It is envisaged that, following the successful 
completion of research and development, HDTV services will be introduced iri two 
stages. In a pre-operational phase starting in 1990, experimental and pilot 
transmissions will be made. It is expected that, from about 1992 to 1995, a number 
of operators will start offering regular services in HDTV with a wide range of 
programmes, including films. 
It is generally accepted that 1995 will see widespread availability of HDTV services 
throughout Europe. 
45 Council Directive on the adoption of common technical specifications of the MAC-packet family of standards 
for direct satellite television broadcasting, 88/529/EEC, O.J. L 311, 03.11.1986, p. 28. 
46 OJ. L 142 of 25.05.1989, p. 1. 
66 
A major objective of the Council Decision mentioned above is to ensure that the 
European standard for HDTV programme production and exchange is adopteJ as a 
world-wide standard. Considerable progress has been made on the standardisation 
issue. At the CCIR plenary meeting in Dusseldorf in May 1990, 23 out of 34 basic 
parameters of the production standard were agreed on. The European 1250/50 
HDTV standard, so called because it transmits 1250 lines of picture information 
and operates at 50Hz, is being developed by a consortium of thirty or so European 
manufacturers and broadcasters (including some from non-Member States) in 
~ureka Project No. 95. This Eureka 95 group is also developing the hardware 
which will be used to demonstrate the system. The Commission works to ensure 
close co-operation betwec::-n the MEDIA programme and Eureka 95. Furthermore, 
it has initiated a series of Audio-visual Forums, attended by all those with an 
interest in HDTV, at which the work of Eureka 95 is discussed. 
In July 1990, at the instigation of the Commission and the European Broadcasting 
Union, a GEIB (Groupement Europeen d'lnteret Economique) was formed, 
consisting of industry, broadcasters. independent TV and film producers and other 
interested parties. The objective of the group, which is known as Vision 1250, is to 
provide a marketing-oriented complement to the technical development work being 
carried out by Eureka 95. Specifically, it will, with financial support from Member 
States and the Community, make hardware developed by Eureka 95 available to 
programme makers; it will set up demonstrations of HDTV at trade fairs; and it will 
organise the making and display of HDTV programmes, especially coverage of 
major sporting occasions. The Group's activities will be carried out from 1990 to 
1994; it is anticipated that this initiative will result in many high-quality productions 
using the 1250 system being made and shown around the world during this four­
year period. 
2.3. The Role of Satellites in HDTV 
As mentioned in chapter III., it is generally accepted that satellites will become the 
foremost initial transmission medium for HDTV. Indeed, the Eureka-95 
programme depends on continued expansion of Direct Broadcasting-Satellite 
capacity for its commercial success, and hence for the establishment of a European 
lead in TV development, despite the continuous involvement of the United States 
and Japan in the field of HDTV. 
67 
Direct Broadcasting-Satellites covering Europe and Africa are regulated under the 
agreement reached at the 1977 World Administrative Radio Conference (refer to 
chapters II. and III.). This agreement, commonly referred to as the W ARC 77 plan, 
allocated the Broadcasting-Satellite Service (BSS) frequency band to national DBS 
services. Several orbital locations were assigned to Europe; each European country 
was allotted five channels at one of the orbital locations. The satellite footprints 
were intended to give national coverage only, though some spill-over into adjacent 
countries would be unavoidable. It was envisaged that individual household 
~eception would be possible in each country using antennas of diameters less than 
90 cm; therefore high power satellites were required. 
As explained in chapter III., in a number of important respects, satellite 
communications has evolved in ways unforeseeable in 1977. In particular, improved 
receiver technology means that reception with a small antenna no longer 
necessitates the use of a high-power satellite: television signals transmitted over 
medium power satellites using the Fixed-Satellite Service frequency bands, where 
most of the current channels are transmitted in particular programmes 
transmitted via the EUTELSAT-I satellites, the Telecom-I satellites, DFS 
Kopernikus and ASTRA -can be received with an antenna of around 90 cm in 
most parts of Europe. 
This means that currently the majority of channels in Europe are transmitted via 
medium-power satellites. While several DBS satellites conforming to the WARC 
77 plan have been launched in Europe, most of those currently in operation will 
become life-expired just as HDTV becomes widely available, around 1995-97. 
There are, in fact, three second-generation DBS systems under consideration in 
Europe: all of these propose sub-regional (mostly language-based zonal) coverage, 
more channels per spacecraft and less power per channel. While, a priori, these 
systems will have substantial advantages with regard to existing DBS systems, they 
face a major obstacle: they are not in agreement with the WARC 77 plan. Each 
satellite would therefore have to be individually co-ordinated with all the satellites 
and terrestrial transmission systems with which it could possibly interfere -a 
process which would be expensive, time-consuming and of doubtful success. It 
seems inevitable, therefore, that substantial revision of the criteria contained in the 
WARC 77 plan will be essential to the implementation of future generation DBS 
satellites in Europe, and hence to the success of European HDTV. 
68 
2.4. Conditional Access Systems 
The further evolution of satellite television and other point-to-multipoint systems 
will require the further development of agreements and standardisation in the field 
of control of channel access. There are three main groups with a right or interest in 
either limiting or controlling the audience which can have access to a satellite 
broadcast signal: 
Business TV and/ or videoconferencing operators and users. As the use of 
closed-user-group television and videoconferencing as business tools to 
create competitive advantage grows, so too does awareness of the issue of 
confidentiality. Both operators and users are keenly aware of the 
importance of "scrambling" or disguising a signal in such a way that only 
authorised entities can receive it in its original format. The issue of security 
is perceived as being of special importance where satellite transmission is 
concerned, though terrestrial transmission systems are by no means 
necessarily secure. 
Authors and producers of material broadcast. As mentioned, the resolution 
of copyright issues is of vital importance to the development of European 
television. 
Use of a satellite beam which covers all of Western Europe would bring the 
potential audience into the hundreds of millions. It is clearly in the interests 
of both broadcasters and copyright holders to have a clear Community 
position with regard to a regime for copyright issues. 
Satellite broadcasters offering pay-per-view TV. This is a commercial issue 
for both satellite and terrestrial broadcasters, which may opt for a system 
whereby customers, rather than paying a once-off or annual fee to receive 
programmes, are charged "per view", i.e. per programme or per hour's 
viewing time. Conditional access systems for pay TV must achieve a balance 
between low cost and the ease with which the encryption system can be 
broken to allow unauthorised viewing. 
As regards the application of copyright to television broadcasting in the 
Community, the Commission will soon make its proposals in the context of audio­
visual policy and its general policy on copyright. 
69 
As regards the implementation of conditional access systems, one major obstacle to 
a successful resolution of the issue has been the lack of a common European (or 
international) standard for encryption. 
In its Resolution 86/C160/01 of 9 June 1986, on the use of videoconference and 
videophone techniques for intergovernmental applications, the Council invited the 
Commission to resolve problems specific to the use of videoconf erence and 
videophone facilities by Member States governments and Community institutions, 
including confidentiality. The Community's RACE programme is studying 
communications integrity for all telecommunications services and has listed ba~ic 
requirements for encryption devices. It will be important to develop suitable 
European standards in this area. 
With its proposals of July 1990 on data protection and security of information 
systems47, the Commission has submitted a comprehensive approach to this area -
including data protection and protection of priva'-1' in the field ·of public digital 
telecommunications networks -and proposed a plan of action of the development 
of information security measures in this field. 
3. The larger European dimension 
With the growing interrelationships between the Community and its neighbouring 
countries, the dramatic changes in Central and Eastern Europe, and the emergence 
of the larger European dimension as a general determinant of C~mmunity policy, a 
Community approach to satellite communications gains its full importance only if 
seen in the larger European dimension. 
The Community has strong common interest in satellite communications with its 
neighbours via joint membership -in many cases -of the major organisations of 
most relevance to satellite communications in Europe. Figure 6 shows membership 
of Community countries, EFTA countries, the countries of central and Eastern 
Europe and other neighbouring countries in EUTELSAT, ESA, ETSI, CEPT and 
INTELSAT, INMARSA T and Intersputnik. 
47 See COM(90) 314 of 24th September 1990, in panicular Proposal for a Council Directive concerning the 
protection of personal data and privacy in the context of public digital telecommunications networks, in 
panicular the Integrated Services Digital Network (ISDN) and public digital mobile networks and Proposal 
for a Council Decision in the field of information systems security. 
70 
3.1 · Cooperation with EFfA and other neighbouring countries. and the European 
Conference of Postal and Telecommunications Administrations (CEPT) 
The Community has traditionally strong ties in satellite communications with the 
member states of the European Free Trade Association, in particular via common 
membership -in most cases -of both Community and EFf A countries in the 
relevant organisations (compare Figure 6). 
As the Community and the European Free Trade Association further develop their 
relationship in a global context and move towards a common European Economic 
.. 
Space, common interests in this field will further intensify, particularly as in a 
number of EFf A member states current trends are pointing clearly towards the 
review of regulatory conditions in the sector and the liberalisation of both one-way, 
and -in some cases -·two-way satellite communications~ 
A major framework of consultation on satellite communications in Europe has 
traditionally been the European Conference of Postal and Telecommunications 
Administrations (CEPT), which includes all Community and EFTA countries, as 
well as a number of other countries such as Turkey and Yugoslavia (see Figure 6). 
CEPT has various specialised committees which act in the field of satellite 
communications in Europe. The main committees involved are the ccrs 
(Coordination Committee for Satellite Telecommunications) and its subordinate 
bodies and the CAC (Commercial Action Committee) under which a VSA T group 
has been established. Since these bodies have a function in defining the role of 
satellite communications within the developing European telecommunications 
network it is necessary for the Community to have a complete dialogue with them 
on future satellite communications evolution in Europe. 
Within the general review of telecommunications policies currently taking place in 
Europe, CEPT is currently undergoing major reforms, such as the separation within 
the organisation of regulatory and operational functions. 
The two major reforms achieved to date are also of key importance for satellite 
communications: the creation, in 1988, in Sophia-Antipolis, Nice, of the European 
Telecommunications Standards Institute (ETSI) and the transfer of CEPT's 
telecommunications equipment standardisation activities to this institution; and 
the creation of the European Radiocommunications Committee (ERC) and the 
European Radiocommunications Office (ERO) currently under way. 
Figure 6 
COMMUNITY, EFTA, CENTRAL AND EASTERN EUROPE AND OTHER NEIGHBOURING 
EUROPEAN COUNTRIES 
MEMBERSHIP IN ORGANISATIONS OF MOST INTEREST TO SATELLITE COMMUNICATIONS 
IN EUROPE 
EUTEL-
SAT 
Belgium ........ 
Denmark ........ 
Germany ........ 
France ........ 
Greece ........ 
Ireland ........ 
Italy ........ 
Luxembourg ........ 
The Netherlands ........ 
Portugal ........ 
Spain ........ 
United Kingdom ........ 
~ 
Austria ........ 
Finland ........ 
Iceland ........ 
Liechtenstein ........ 
Norway ........ 
Sweden ........ 
Switzerland ........ 
<Ill""" • • • • • • • • • • • • • • Member 
~~ •• application to join pending 
<111 ..,. (1) ••••••••••••• Associate Ment>er ESA ETSI 
.... .... .... .... 
.... .... .... .... 
.... .... .... .... 
........ .... .... 
.... .... 
.... .... ........ 
.... .... .... .... 
.... .... 
........ .... .... 
.... .... 
.... .... .... .... 
.... .... .... .... 
.... .... .... .... 
.... .,..(lJ ........ 
.... .... 
.... .... .... .... 
........ .... .... 
.... .... .... .... CEPT INTEL- INMAR- INTER- ITU 
SAT SAT SPUTNIK 
.... .... .... .... .... .... .... .... 
• .... .... ........ .... .... .... .... 
........ ........ .... .... .... .... .... .... 
........ ........ .... .... .... .... 
........ .... .... .... .... .... .... 
.... .... .... .... .... .... 
........ .... .... .... .... .... .... 
.... .... .... .... .... .... 
........ .... .... .... .... .... .... 
........ .... .... .... .... .... .... 
........ .... .... .... .... .... .... 
........ .... .... .... .... .... .... 
........ .... .... .... .... 
.... .... .... .... .... .... .... .... 
.... .... .... .... .... .... 
........ .... .... .... .... 
........ .... .... .... .... .... .... 
.... .... .... .... .... .... .... .... 
........ .... .... .... .... .... .... 
EUTEL-
SAT 
Bulgaria :5~ 
Czechoslovakia :5~ 
Hungary :5~ 
Poland ..... 
Romania ...... 
Yugoslavia 1 .... 
Cyprus ...... 
Malta ...... 
Monaco ...... 
Rep. of San Marino ...... 
Turkey 1• 
Vatican City 1• 
Japan 
United States 
USSR 
.... .,.. • • • • • • • • • • • • • • Member 
:5~ •• application to join pending 
• .,.(1) ••••••••••••• Associate Member ESA ETSI CEPT 
...... 
....... 
....... 
... .... 
... ... 
... .... 
... ... 1 ... 
--
... ... . ... 
=~-~ l-.----~--~ 
... ... . ... 
..... ....... 
..... Figure 6 
INTEL- INMAR- INTER- ITU 
SAT SAT SPUTNIK 
....... . .... ... .... 
... .... ... .... ... .... 
... .... ... .... 
• ... .... . .... ... .... 
... .... . .... . ... . .... 
... ... . ... ... ... . ... . .... . ... . .... ... .... ... .... 
... ... . .... . .... ... .... 
... .... ... .... 
..... ... .... ... .... 
....... . .... ... ... 
....... 1• ....... 
73 
While ETSI is called upon to provide the technical basis for many of the necessary 
measures required in satellite communications (see chapter V.), the new European 
Radiocommunications Committee and the European Radiocommunications Office 
-to be located in Copenhagen -offer a new basis for strengthening frequency 
coordination in Europe. Council Resolution 90/C 166/0248 defines as a major 
policy goal "working in particular towards the timely allocation of sufficient 
frequency resources to mobile and satellite applications ... ", and welcomes the 
"current reform of radio frequency planning and coordination mechanisms 
\lndertaken by the CEPT, and in particular the decision to create a European 
Radiocommunications Office allowing for the opinion of all interested parties to be 
taken into account and having an appropriate organisation ... ". It invites the 
Commission and the Member State~ and the CEPT "to support the further 
development of the new framework .... making available all the resources necessary 
to ensure the efficiency of its operation and the rapidity of its response ... ". 
3.2. Importance of satellite communications for the developments m Central and 
Eastern Europe 
The dramatic changes in Central and Eastern Europe have given the rapid 
development of satellite communications in Europe a new political dimension. The 
rapid build-up of the telecommunications infrastructure of the countries of Central 
and Eastern Europe is indispensable for the integration of these countries into the 
larger European dimension and the successful reconstruction of their economies, as 
emphasised by the Commission in its Communication of 19 June.199049. One of the 
major advantages of satellite communications -rapid deployment and immediate 
large area coverage -give it a key-role in this context, in the fields of both 
telecommunications and broadcasting. 
The countries of Central and Eastern Europe are therefore turning to the use of 
satellite systems to improve their telecommunications links with Western Europe: 
Poland became the 27th member of EUTELSAT in February 1990, Romania has 
since joined, and negotiations are underway with Czechoslovakia and Hungary. 
Further, it is understood that the third flight model of DFS-Kopernikus, a national 
48 Council Resolution of 28 June 1990 on the strengthening of the Europe-wide cooperation on radio 
frequencies, in particular with regard to services with a pan-European dimension, OJ. C 166 of 07.07.1990, p. 
4. 
49 Communication from the Commission to the Council and the European Parliament on the Community's 
relations with the countries of Central and Eastern Europe -the role of telecommunications, COM(90) 258 
of 19.06.1990. 
74 
German satellite system, will provide telephony, television distribution and 
data/business communications throughout the geographical regions of the Federal 
Republic of Germany including its newly integrated eastern part. Several Central 
and Eastern European countries -Poland, Czechoslovakia, and Bulgaria -are 
members of INMARSA T, and expect to use this service both for maritime and land 
mobile use (see Figure 6). 
The possibility of using small terminal systems to provide rapid large area coverage 
is the subject of active consideration by several Eastern European countries. At the 
same time they are urgently examining the possibility of permitting additional .. 
providers in order to stimulate the early provision of improved telecommunications 
services, both nationally and for cross-border traffic. 
Given that in all countries of Central and Eastern Europe the terrestrial network 
infrastructure is largely underdeveloped, the introduction of VSA T networks will 
present itself as an obvious and -in many cases -most effective means of 
communications. Introduction of satellite technology based on large-scale earth 
stations will often not provide rapid wide-area coverage, without the necessary 
terrestrial interface for interconnection. 
It seems likely that -in the context of the current general economic reforms in 
these countries and the development towards a market economy -the situation 
will lead rapidly to a review of the regulatory provisions concerning deployment of 
satellite systems in the countries of Central and Eastern Europe. If concurrent 
action is not taken within the Community, this could well lead to liberal availability 
of satellite networks in Central and Eastern European countries in advance of such 
availability in the Community -with a consequential dramatically negative effect 
on the development of Europe-wide systems. 
While common satellite terminal networks could develop rapidly between the 
countries of Central and Eastern Europe and the Community -if the Community 
adjusts its own regulatory conditions in the sector -the mutual interests in this 
sector between the Community and the USSR will need further analysis. Based on 
its major capabilities in space systems, the USSR has a well developed usage of 
satellite systems. It is understood that more than 95 % of viewers receive television 
by means of the joint use of satellite television broadcasting systems and terrestrial 
distribution facilities. In international satellite communications, the USSR has 
been active with the establishment of the Intersputnik satellite system (see Figure 
~) and in the context of the lnterkosmos programme for the study of problems 
involved in implementing national and regional communications. The USSR is 
75 
already a member of INMARSA T, and also renewed efforts to offer USSR 
membership in INTELSAT recently became public. 
4. External Aspects and the International Environment of Satellite 
Communications 
A coherent Community approach to satellite communications must take full 
account of the international environment of satellite communications in Europe 
and of the Community's general interests in external relations. 
As shown in chapter II., all Community Member States have obligations and 
existing international commitments which they must respect -but they should also 
work jointly towards change where required. 
The results of the GAIT-negotiations in the context of the current Uruguay-Round 
will fundamentally influence the Community's relations with its major trading 
partners in this area -the United States and Japan -but could also have an 
impact on the international environment in which satellite communications exist. 
With the growing number of non-European satellites used for European coverage, 
co-ordination with regard to third countries in the area of satellite services will have 
to be strengthened. Finally, a Community satellite communications policy must be 
seen in the context of the overall relations of the Community with regard to other 
parts of the world: developing its relations with Mediterranean countries, where in 
the field of satellite communications mutual beneficial links have already been 
established; contributing to the full use of the potential of satellites in the 
developing countries -in the context of its relations with the African, Caribbean 
and Pacific (ACP) countries in the framework of the current Lome convention, as 
well as assisting satellite-based development projects elsewhere. 
4.1. International Telecommunications Union (ITU) 
As shown in chapter II., the International Telecommunications Union is central to 
the development of satellite communications, notably via its key-role in 
international frequency co-ordination and the allocation of the orbital resource -
with the activities of the International Frequency Registration Board (IFRB) and 
the World and Regional Administrative Radio Conferences (WARCs and RARCs). 
76 
Other main committees concerned are the International Radio Consultative 
Committee (CCIR) and the International Consultative Committee for Telegraph 
and Telephone (CCITI)50. 
The working of the IFRB and the role of the WAR Cs has been discussed in detail 
in chapter II. The CCIR is responsible for the study of technical and operating 
questions on radiocommunications and for the issuing of relevant 
recommendations. 
The CCITI issues recommendations related to standards and specifications as well 
as to the operation and charging of public telecommunications services. ·it 
investigates the interworking of telecommunications satellites with the terrestrial 
network, especially in today's environment of wide and expanding use of FSS and 
MSS satellites for telecommunications services. 
As set out in the Council Resolution of 30 June 198851, common positions are to be 
adopted in international fora. This was the case with regard to the 1988 World 
Administrative Telegraph and Telephone Conference (WA TI-C) where a new set 
of International Telecommunications Regulations was negotiated. It is the case in 
the current negotiations in the framework of the CCIR on the future High 
Definition Television standard. It should be the case in the future, wherever 
relevant. 
Following Council agreement in 1988, the Community applied for, and was granted, 
observer status at the ITU Committees and Conferences. 
Concerning frequency coordination, Council Resolution 90/Cl66/0252 calls for "the 
working out of common European positions on the use of the frequency spectrum 
concerning international frequency co-ordination, in particular with regard to the 
International Telecommunications Union and its conferences on radio frequencies", 
and based on the current reform of frequency coordination in the CEPT (see 
above). 
50 A further body, the Telecommunications Development Bureau -newly created in the context of the reform 
of ITU activities subsequent to the decisions taken at the ITU plenipotentiary conference held at Nice in 1989 
(Art. 14 of the Constitution) -could gain substantial importance in the promotion of satellite 
communications for the developing countries. 
51 Council Resolution of 30 June 1988 on the development of the Common Market for telecommunications 
setvices and equipment up to 1992, OJ. C '257 of 04.10.1988, p. 1. 
52 Council Resolution of 28th June 1990 on the strengthening of the Europe-wide cooperation on radio 
frequencies, in particular with regard to services with a pan-European dimension, OJ. C 166 of 7.7.1990, p. 4, 
(90/C 166/2). 
77 
The major immediate challenge for the European Community will be to define a 
common position with regard to the next World Administrative Radio Conference 
which will take place in 1992 (WARC 92), and -based on the strengthened co­
operation mechanisms of the CEPT -to create the necessary strong political 
mandate at Community level required for effective co-ordination in this central 
area. 
4.2. General A1u-eement on Tariffs and Trade {GA TT) 
Virtually all aspects of the Internal Market for telecommunications are being 
influenced, directly or indirectly, by the issues discussed in the context of the on­
going trade negotiations in the Uruguay Round. 
Positions in the Uruguay Round are expressed by the Community in conformity 
with Article 113 of the Treaty. It is likely that the Community's negotiating position 
will remain closely linked to progress in the Community's internal regime, and it is 
important that the Community's internal and external positions should be 
consistent. 
Amongst the current areas of negotiation, two are of immediate relevance to the 
satellite sector: services and technical barriers to trade. 
With regard to trade in services, the negotiations in Geneva have focused on the 
elaboration of a framework of principles, inspired by the General Agreement on 
Tariffs and Trade (GATI), which would be applicable to all trade in services. 
This framework will be modified or complemented by sectoral annotations, or 
annexes, to various sectors in order to take into account their specific aspects. For 
telecommunications, the annotations or annex would cover, in particular, 
appropriate conditions of access to and use of the network. The principles 
establishing Directive 90/387 /EEC53 on Open Network Provision (ONP) form the 
basis for the Community's position in this sector. 
With regard to technical barriers to trade. the Community is seeking to establish a 
better balance under the GA TT agreement by extending its provisions, in particular 
regarding transparency of specifications adopted by sub-national and private 
standardisation bodies. 
53 Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications 
services through the implementation of Open Network Provision. 
78 
Once adopted, the new GA TI agreements should provide a mechanism for 
extending liberalisation of trade in satellite services and equipment .. in the context 
of general telecommunications trade -to third countries in a balanced ~ay. 
4.3. Co-ordination of positions with regard to Third Country providers 
As shown in Figure 3, with the diversification of the provision of space segment, a 
growing number of non-European satellites are emerging which can be used for 
services with European coverage. 
As mentioned in chapter III., six US entities hold conditional construction permits 
by the US Federal Communications Commission for international separate satellite 
systems. One entity, Pan American Satellite/ Alpha-Lyracom has operated since 
1988 an international separate satellite system which provides, inter alia, satellite 
services in a number of Member States of the Community. Final authorisation for 
the Orion system is pending, with a launch date planned for 1993. Launch dates 
and coverage for the Gorizant and Reduga satellites are not published, though 
several are known to be in orbit. They are owned by the USSR and leased to 
Intersputnik. 
Currently, the Community Member States negotiate individually landing rights for 
-and access to -non-European satellite systems, other than the INTELSAT and 
INMARSAT space segments. In the future, stronger coordination in this area will 
be needed, in order to avoid distortion of market conditions within the Community 
on the one hand, and on the other hand to gain a stronger bargaining position for 
negotiating equivalent access to Third Countries for equivalent access for European 
satellite systems. 
The above-mentioned GA TI principles on telecommunications trade in general, 
currently being defined, would seem to provide a suitable basis, on which to develop 
a common coordinated approach and balanced arrangements with Third Countries 
in this area. 
79 
4.4. Relations with the Mediterranean, Africa, Latin America and 
other parts of the world 
The Community Member States have developed relations on a world-wide basis in 
the field of satellite communications, both via common interests in the ·context of 
the international coordination mechanisms of the ITU in the field of frequency 
spectrum and orbital allocations, and of INTELSAT and INMARSA T, as well as by 
using satellite communications for assisting regional development. 
In respect of industrialised countries, the Commission, in the Green Paper on the 
i development of the common market for telecommunications services and 
equipment54, has emphasised the importance for the Community of cooperation in 
the international frameworks with the other industrial countries, such as the United 
States, Japan, Canada, Australia and New Zealand, who have developed advanced 
satellite communications capabilities. In addition, the Commission has 
recommended the setting up of a coherent strategy with regard to 
telecommunications in its relations to the Third World. 
In the framework of its relations with the Third World, the Commission has not 
only emphasised the necessity to adopt in the field of telecommunications a 
coherent strategy towards developing countries but also stressed the objectiv_e of 
using satellite communications systems. In its Communications on the 
Community's approach to space policy set out above, it has considered that priority 
use should be made of satellite communications in the field of rural and regional 
development and aid to Third World countries. 
A special common interest in satellite communications exists among the 
Community, the Mediterranean and the African countries. On the one hand, the 
relationship established between the Community and most of these countries is 
particularly close and will strengthen and grow even more because of the new 
dynamism resulting from the completion of the internal market. On the other 
hand, Europe and Africa share frequencies and the orbital resource in the same, so­
called, ITU region (Region 1). The geographical proximity at least in the case of 
Mediterranean countries gives also a possibility in certain cases of common 
coverage of these countries and of various European regions. 
Therefore, this particular situation requires careful consideration and a number of 
specific solutions in order to best accommodate the needs of all interested parties. 
54 Green Paper on the Development of the Common Market for Telecommunications Services and Equipment, 
Document COM(87) 290 final, 30.06.1987. 
80 
At present, a close cooperation has been established between European space 
industry and the Arab nations in the case of the Arabsat system, with the use of 
European technology and the purchase of two satellites from a European 
manufacturer. ARABSAT has recently issued a request for tenders for its second 
generation satellite system for which various European satellite manufacturers are 
expected to bid. 
A special framework of cooperation is offered by the Lome Convention which links 
the Community to a large number of developing countries. The Commission 
conducts financial and technical cooperation projects to assist various African, 
of 
Caribbean and Pacific (ACP) countries which are signatories to the Convention. 
This may be expected to be an ongoing requirement for the Community in the 
satellite communications field, as these techniques become more and more widely 
used at regional and national level in newly industrialised and developing countries. 
Regarding countries in Central and South America in Asian countries, the 
Community has developed a cooperation since 1976 and considers that it should be 
reinforced. Because of the very large requirements and the size of the forty 
developing countries involved, which represent a population of 2300 million 
inhabitants, the Commission considers that telecommunications satellites systems 
constitute a privileged means to facilitate their rural and regional development. 
At present, the Community undertakes, together with the Andean Pact countries, 
studies for the establishment of a pan-regional satellite system, CONDOR. 
To summarize, major requirements for the Community in this area should be: 
close cooperation, in the most appropriate way, with countries in ITU 
Region 1, in order to provide for required coordination concerning 
European satellite systems and systems in other parts of the Region, such as 
the planned African Satellite Communications System (RASCOM) which is 
sponsored by a number of African countries and for which the ITU is acting 
as coordinator; 
continuing emphasis on the use, and where possible, the development of 
satellite communications in the aid programmes by the Community for the 
developing countries; 
81 
in a more general context, close international cooperation with both other 
industrialised countries and the developing world in the framework of the 
International Telecommunications Union and especially with regard to the 
forthcoming W ARC conferences, as well as with regard to the international 
telecommunications satellite organisations, in order to promote change 
where required, taking full account of the special interest of the developing 
countries in the balanced development of world-wide satellite 
communications. 
5. Summary 
The future evolution and regulation of satellite communications in the Community 
must be seen in a global policy context. 
Satellite communications is by far the largest commercial application of space 
technology. 
The European Space Agency's cumulated total effort in space up to the year 2000 
will total 30 billion ECUs in addition to national European space programmes. 
With the different Ariane generations, Europe has developed a market share of 
more than 50 % of the world satellite launcher market. 
In the field of telecommunications satellites, mainly due to the successful research 
and development of the European Space Agency, Europe has developed some of 
the most sophisticated satellite technologies. However, due to the lack of 
development of a commercial satellite communications market in Europe, Europe's 
market position in this area has remained weak, compared to the booming US and 
Japanese markets. 
An adjustment of the regulatory conditions of satellite communications in Europe 
therefore will determine, to a large extent, the commercial success of Europe's 
effort to gain a future-proof position in space. 
It will also determine the success of a major component of the Community's audio­
visual policy, the early introduction of High Definition Television (HDTV) in 
Europe -given that it is generally accepted that satellites will become the foremost 
initial transmission medium for its Europe-wide introduction. 
82 
The future development of the Community's satellite communications market only 
gains its full importance when seen in the larger European dimension -the future 
European Economic Space and the dramatic changes in Central and Eastern 
Europe. 
The rapid build-up of the communications infrastructure in Central and Eastern 
Europe is indispensable for the reconstruction of the economies of these countries. 
Given the lack of an adequate terrestrial infrastructure, the free development of 
VSAT terminal networks will off er rapid advance to these countries. Given the 
parallel trends in a number of EFI' A countries towards a more liberal environment 
f 
for these systems, lack of adjustment of the regulatory conditions by the 
Community for such systems would leave the Community lagging behind the 
developments in the other parts of Europe, effectively blocking the development of 
true trans-European systems. At the same time, the reforms undertaken by the 
European Conference of Postal and Telecommunications Administrations in the 
fields of standards and frequency coordination and planning -with the creation of 
ETSI on the one hand, the European Radiocommunications Committee and the 
European Radiocommunications Office on the other -prepare the ground for the 
establishment of regulatory conditions which will promote Europe-wide services. 
Finally, the current global development in the International Telecommunications 
Union and the principles to be agreed in the context of the GA TI Uruguay Round 
negotiations will facilitate the future development of satellite communicalions at a 
world level but also require the strengthening of coordination between Member 
States. This concerns both coordination of positions with regard to Third Country 
providers, as well as the further development of relations in this field with the 
Mediterranean, Africa, Latin America and other parts of the world. 
A special common interest in satellite communications exists between the 
Community and the Mediterranean and the African countries, both because of the 
close global relationships which have developed between the Community and many 
of these countries, as well as because of the fact that Europe and Africa share 
frequencies and the orbital resource in the same ITU Region. 

V. EXTENDING THE PRINCIPLES OF COMMUNI1Y 
TELECOMMUNICATIONS POLICY TO SATELLITE 
COMMUNICATIONS 83 
Satellite communications were set aside for later consideration in the Green Paper 
on the development of the common market for telecommunications services and 
equipment55• The consensus achieved on the basis of this Green Paper, and the 
subsequent political decisions on the general future regulatory conditions of the 
i 
telecommunications sector in the European Community -in particular at the 
Telecommunications Council on 7th December 1989 -can now be the basis on 
which to build a common regulatory position in the field of satellite 
communications. 
The obligation to complete the Community's internal market for 
telecommunications by the end of 1992 cannot be achieved unless agreement is 
reached on a common set of rules. Failure to do so would amount to maintaining 
the fragmentation of the Community market and blocking the development of the 
Community's satellite industry. In particular, a broad consensus is needed with 
respect to the orientation, scope and timescale of the necessary measures. The 
Green Paper on Telecommunications aimed at bringing about this consensus, and 
the Council of Ministers, in its Resolution of 30 June 198856, unanimously approved 
the main conclusions of the Green Paper. In doing so, the Council identified 
satellite communications as the following major goal in telecommunications policy: 
"working out a common position on satellite communications, so that this new 
information medium can develop in a favourable environment, taking account of 
the general rules of operation and exploitation of the network environment, as well 
as the competition rules of the Treaty and existing international commitments of 
the Member States". 
55 Towards a Dynamic Economy -Green Paper on the Development of the Common Market for 
Telecommunications Seivices and Equipment, Document COM(87) 290 final, 30.06.1987. 
56 Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 
seivices and equipment up to 1992, OJ. C 257of04.10.1988, p. 1. 
84 
1. General principles 
Applying the general consensus achieved in telecommunications to satellite 
communications should build on a number of broad principles: 
the future regulatory conditions for satellite communications must respect 
those regulatory safeguards which Member States may apply in the 
telecommunications sector in accordance with the general consensus on 
telecommunications already achieved, but should not introduce any 
additional restrictions beyond those related to specific conditions in the 
field of satellite communications, where these can be justified in accordance 
with Community law -in particular competition rules -and international 
commitments; 
they should provide for a dynamic development of earth segments and space 
segments in the Community, and meet the conditions required by 
enterprises to operate in the Community-wide 1992 market; allow the full 
development of the Community's space industry in this area; and support 
the Community's policy for a common audio-visual space; 
they must fully apply Community law to this sector. The Community cannot 
admit -or afford -the withdrawal of a sector of such vital importance 
from the working of the single market, or from the full application of its 
rules. 
The Green Paper on the development of the common market for 
telecommunications services and equipment has recalled the Articles of the Treaty 
of most relevance to telecommunications: 
Article 3f requiring the institution of a system ensuring that competition is 
not distorted, 
Article 5 under which the Member States are bound to fulfil their 
obligations under the Treaty, 
Article Sa requiring the internal market to be completed by 31 December 
1992. 
the provisions concerning the free movement of goods, in particular Articles 
30 to 36; 
85 
Article 37 requiring the adjustment of state commercial monopolies and 
forbidding the creation of new state commercial monopolies, 
the provisions concerning the freedom to provide services and the freedom 
of establishment, in particular Articles 52 to 66; 
the provisions governing competition, in particular Articles 85, 86 and 90; 
the provisions concerning the common commercial policy, in particular 
Articles 110 to 116; 
the general provisions for the approximation of provisions laid down by law, 
regulation, or administrative actions in Member States as directly affecting 
the establishment or functioning of the comm~n market, in particular 
Article lOO(a). 
Beyond these Articles, account should be taken of further work, in particular the 
principles set out in the Commission's guide-lines on the application of competition 
rules to the telecommunications sector57, and the substantial amount of Community 
law in the telecommunications sector resulting from the case law and secondary 
legislation and the implementation of the Green Paper58, inter alia: 
Commission Directive of 16th May 1988 on competition in the markets in 
telecommunications terminal equipment (88/301/EEC)59; 
Council Directive of 28th June 1990 on the establishment of the internal 
market for telecommunications services through the implementation of 
Open Network Provision (90 /387 /EEC)60; 
Commission Directive of 28th June 1990 on competition in the markets for 
telecommunications services (90/388/EEC)61; 
and proposed Directives on which common positions have already been obtained, 
in particular : 
.57. To be published 
58 Towards a competitive Community-wide telecommunications market in 1992 -Implementing the Green 
Paper on the development of the Common Market for telecommunications services and equipment, 
COM(88)48, 09 /02/1988. 
59 OJ. L 131, 27/05/1988 
60 OJ. L 192, 24/07 /1990, p. 1 
61 O.J. L 192, 24/07 /1990, p. 10 
86 
Proposal for a Council Directive on the approximation of the laws of the 
Member States concerning telecommunications terminal equipment, 
including the mutual recognition of their conformity62; • 
as well as legislation in related fields of direct relevance: 
Council Directive on the procurement procedures of entities operating in 
the water, energy, transport, and telecommunications sectors 
(90/531/EEC)63• 
Council Directive on the coordination of certain provisions laid down by 
law, regulation or administrative action in Member States concerning the 
pursuit of television broadcasting activities (89 /552/EEC)64; 
Council Directive on the adoption of common technical specifications of the 
MAC/packet family of standards for direct satellite television broadcasting 
(86/529 /EEC)65; 
Council Directive on the approximation of the laws of Member States 
relating to electromagnetic compatibility (89 /336/EEC)66• 
Where these measures do not apply directly to satellite communications, a 
Community approach to this sector should take account of the principles underlying 
this legislation. It should in particular: 
allow the full use of the new technological potential to all market 
participants, both in the terminal and services markets; 
define, therefore, exclusive or special rights narrowly and replace them by 
licensing schemes where the continued maintenance of regulatory 
safeguards is required by public interest; 
provide for the clear separation of regulatory and operational functions, in 
order to avoid conflicts of interest and distortion of competition and 
markets. 
62 Amended proposal, OJ. C 187, 27.7.1990, p. 40 
63 OJ.L. 297, 29.10.1990, p. 1. 
64 O.J. L 298, 17/10/1989, p. 23. 
65 OJ. L311, 3/11/1986, p. 28. 
66 O.J. L 139, 23/5/1989, p.19. 
87 
2. Future treatment of the earth segment 
Traditionally, the large earth stations used with INTELSAT and EUTELSAT 
systems for long distance telephony and television programme exchange were 
owned and operated by the telecommunications organisations. In the future, the 
bulk of earth stations and hence the biggest market segment will consist of small 
terminals with antennas of 0.5 to 2.5 meters (see Chapter III). VSAT terminals 
usually come under this category. However, the term "small terminal" is difficult to 
quantify and implies defining a limit in antenna diameter so that they can be 
differentiated from the large earth stations mentioned above. Any such limit would • 
be arbitrary and can change with technological development. It therefore should 
not -and cannot -be used for the determination of the regulatory regime that 
should apply to those terminals. 
The criterion for distinguishing different kinds of satellite earth stations should 
therefore not be their size, but the function for which they have been built and 
which may require different regulatory safeguards: 
entertainment broadcast (TV) reception terminals (Direct Broadcast 
Satellite and Direct-To-Home-receive only terminals -DBS and DTH 
terminals); 
receive only satellite telecommunications terminals (including mobile, 
position fixing, etc.) for other than entertainment broadcasting reception; 
transmit/receive terminals for two-way operations (including mobile, 
position-fixing, etc.); 
central control earth stations (hub stations) for private terminal systems. 
88 
2.1. Entertainment broadcast (TV) reception terminals 
The supply, installation, ownership, operation and maintenance of DBS and DTH 
receive-only terminals for entertainment broadcasting reception is already largely 
liberalised within most Member States, although in the past the Commission has 
been confronted with a number of complaints that have led to infringement 
procedures. against certain Member States67• Most of these cases have been 
resolved in the sense that the Member State involved agreed to liberalise the 
market for receive-only terminals (refer to chapter II.). Such terminals may be 
oonsidered as consumer goods, fulfilling a function similar to a traditional roof-top .. 
antenna for the reception of terrestrial radio and television broadcast services. The 
Green Paper on the development of the Common Market for telecommunications 
services and equipment recalled "that the general trend in Europe now seems to be 
that domestic receive-only installations (TVROs) designed to receive high power 
DBS (Direct Broadcast Satellite) services will not require a licence". 
The problem is of immediate relevance with the newly launched DBS satellites 
(TDF-1and2, TV-SAT-2, BSB-1, TELE-X, OLYMPUS), and the satellites used for 
services such as Direct to Home ASTRA and the EUTELSAT and TELECOM 2nd 
generation satellites. Estimates have indicated that a market exists for a potential 
of 100 million terminal units in Europe, of which between 4 and 20 million DBS and 
D1H terminals are forecast to be sold by 1996. Obviously, the Community will only 
be able to reap the benefits of this market potential if this market is freed from 
restrictive regulations. 
2.2. Receive only satellite telecommunications terminals 
Unlike a DBS or DTH terminal, a receive-only telecommunications terminal would 
be optimised for reception of point-to-multipoint data and voice signals, which may 
include video-transmissions (in analogue or digital format). However, there are 
strong similarities in overall function between these two classes of earth stations. 
Use of such terminals for point-to-multipoint services poses no threats to other 
earth station users or operators since the terminals do not have transmit capability. 
As has been explained (see chapter III.), these are mainly new types of services 
which are not provided by conventional means. 
67 See for example Sixth Annual Report to the European Parliament on Commission monitoring of the 
application of Community law -1988, OJ. C 330 of 30.12.1989, p. 1, points 90 and 99. 
89 
2.3. Transmit/receive terminals 
It is established international practice that a licence is normally required to operate 
a radio transmitter. Thus, the operation of a small terminal, capable of sending -
and receiving -signals, may be expected to be subject to a licensing regime in 
order to ensure correct frequency assignment and coordination, the limitation of 
potential interference to an acceptable level and, in certain cases, knowledge of the 
geographical location of the terminal. There is also a public interest in the proper 
functioning of the transmitter which can justify mandatory type-approval and the 
requirement to maintain the equipment in a prescribed manner. 
2.4. Central control earth stations (hub stations) of satellite terminal networks 
Remote terminals in private terminal networks of the current generation ("star 
networks") generally communicate only via a central nodal earth station, which then 
provides onward connections as necessary. The remote terminals do not 
communicate directly with each other. In the next generation of networks ("mesh­
networks") this will be possible. However, in both types of network, a central 
control function will be present. For the purpose of this document, the "hub" earth 
station is considered the earth station which incorporates the central control 
function of the network. 
A hub earth station is always a two-way (i.e. transmitting and receiving) station and 
from the equipment point of view a considerably more sophisticated facility than a 
remote terminal in the network, in the case of star networks the ·"hub" station has 
the higher transmit power and greater usable bandwidth necessary to function as a 
central communications facility. It may therefore require a more comprehensive 
licence. 
90 
2.5. · Abolition of exclusive or special rights 
After the publication of the Green Paper, the Commission has implemented its 
objective of opening up the market for terminal equipment by adopting Directive 
88/301/EE68 which provides for the withdrawal of all special and exclusive rights 
for the provision of terminal equipment. A number of transitional periods were 
foreseen during which the Member States were to formalise and publish technical 
specifications and type-approval procedures for terminal equipment. The last of 
these periods expired on 30 June 1990. Thereafter, the provision of terminal 
~quipment which is in conformity with the technical specifications, may no long,er 
be restricted. 
The issue to be resolved here is whether the market for satellite earth stations 
should be treated in the same way as the market for conventional terminal 
equipment. As mentioned in chapter II., receive-only satellite earth stations not 
connected to the public network of a Member State are included among the 
terminal equipment defined in Article 1 of Directive 88/301/EEC so that their 
provision is already free from restrictions. 
Thus, the question remains whether other satellite earth stations are to be treated in 
the same way as receive-only satellite earth stations. The answer to this question 
will have to be based on Article 30 and 37 of the Treaty. Article 30 prohibits 
· restrictions on imports -and all measures having equivalent effect -of products 
in free circulation in the Community. To the extent that satellite earth stations have 
been legally marketed in one of the Member States, they should in principle be able 
to circulate freely throughout the Community. 
Article 37 of the Treaty aims at eliminating all discriminations resulting from state 
monopolies of a commercial character, with regard to the conditions under which 
goods are procured and marketed between nationals of Member States. If a 
Member State establishes or maintains a monopoly for the provision of satellite 
earth stations, users may be prevented from freely choosing the equipment that best 
suits their needs in terms of price and quality, regardless of its origin. Moreover, 
producers of satellite earth stations from other Member States may either be 
barred from access to this market or at least suffer a competitive disadvantage in 
marketing their equipment. 
68 Commission Directive of 16 May 1988 on competition in the markets for telecommunications terminals 
equipment (88/301/EEC), OJ. L 131of27.05.1988, p. 73. 
91 
It follows that the provision of satellite earth stations in general may no longer be 
monopolised by the Member States. Users and service providers should therefore 
be able to benefit from a Community-wide market for all satellite earth stations. 
Satellite terminals are technologically and functionally separate from the public 
terrestrial network infrastructure. To the extent that certain types of satellite earth 
stations are used for the provision of services which might continue to be the 
subject of special and exclusive rights, the use made of such satellite earth stations 
may be made subject to certain regulatory safeguards via appropriate licence 
conditions. However, an outright prohibition on imports and the monopolisation of 
~ 
the marketing for such equipment would be excessive with regard to the objective 
sought, since all satellite earth stations are able to perform several functions most 
of which will form part of the liberalised area. 
Compared to monopolisation, restrictions on the use of equipment constitute a less 
restrictive measure. Community law would only permit this kind of restriction to be 
imposed on owners of satellite earth stations as far as they correspond to legitimate 
regulatory safeguards, expressed via appropriate licensing conditions. As shown 
below, only transmit/receive terminals require particular safeguards and therefore 
qualify for licensing. 
Entertainment broadcasting (TV) reception terminals (TVROs) and receive-only 
telecommunications terminals should not be subject to any restrictions and 
therefore should not be subject to licensing. 
3. Right to use / provide service 
A central principle of the Community's policy approach to the telecommunications 
sector -as set out in the Green Paper on the development of the common market 
for telecommunications services and equipment69 and confirmed by Council70 is that 
exclusive and special rights should be defined narrowly, in order to allow full use of 
the technological potential to all market participants. The Green Paper recalled 
that "the European Court of Justice has explicitly recognised the right of network 
users to benefit fully from new opportunities offered by technological progress 
(British Telecom Case 41/83; Commission vs. Italy of 20th March 1985)" and it 
emphasised that "the justification of continued exclusive provision of certain basic 
69 Towards a Dynamic Economy -Green Paper on the Development of the Common Market for 
Telecommunications Services and Equipment, Document COM(87) 290 final, 30/06/1987 
7° Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 
92 
services must therefore be weighed carefully against the restrictions which this may 
impose on users' applications for their own ~se, shared use, or provision of services 
to third parties". The Green Paper made it clear that, in particular, new 
technologies in adjacent fields such as satellite communications would need special 
consideration. 
3.1. Si~al transmission to I reception from satellites (uplink/downlink). 
The consensus achieved at the Telecommunications Council of 7th December 19,89 
on general Community telecommunications policy -and incorporated in Council 
Directive 90 /387 /EEC71 and Commission Directive 90 /388 /EEC72 -has identified 
the exclusive or special rights and the regulatory safeguards which Member States 
may implement in the terrestrial telecommunications sector, in conformity with 
Community law and in particular competition rules. 
According to Directive 90 /388 /EEC, exclusive or special rights may be entrusted to 
Telecommunications Organisations for the provision and operation of the 
terrestrial public network infrastructure and the public voice telephony service, and 
special regulatory safeguards may be established, via appropriate licensing schemes, 
for public data communications services, in accordance with Community 
competition rules and the procedures established in Commission Directive 
90 /388 /EEC73• 
Licensing schemes_ implementing regulatory safeguards must be based on non­
economic criteria, be transparent and non-discriminatory and must introduce no 
constraints except those mentioned above or based on "essential requirements"74, 
i.e. network security and integrity and, in justified cases, interoperablity and data 
protection. 
In proposing this approach, the Commission relied on Articles 59 and 86 of the 
services and equipment up to 1992, OJ. C 257, 04/10/1988, p. 1 
71 Council Directive of 28th June 1990 on the establishment of the internal market for telecommunications 
services through the implementation of Open Network Provision (90/387 /EEC) 
72 Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 
(90/388/EEC) OJ. L 192, '24/07 /1990, p. 10 
73 Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 
(90/388/EEC) OJ. L 192, '24/07 /1990, p. 10 
74 According to Council Directive 90/387 /EEC "essential requirements" means the non-economic reasons in the 
general interest which may cause a Member State to restrict access to the public telecommunications network 
or public telecommunications services. 
93 
Treaty. While Article 59, as interpreted by the Court of Justice, permits certain 
restrictions on the freedom to provide services that are non-discriminatory and are 
justified by the general interest, that Article of the Treaty requires the abolition of 
all other restrictions on the freedom to provide services within the Community. 
Likewise, Articles 85 and 86 in conjunction with Articles 3f, 5 and 90 of the Treaty 
prohibit Member States from taking any measure which would enable a 
telecommunications organisation, either alone or acting in concert, to prevent or 
restrict access by competitors to the market for telecommunications services, unless 
~uch restriction is amenable to exemption under Article 85(3) of the Treaty and 
such exemption has actually been granted. Abuses of a dominant position may 
never be exempted whether or not they are induced, encouraged or ordered by 
Member States. 
The objective of the single market and the full application of competition rules 
require the adjustment of regulatory regimes. Adjustment means, inter alia, in 
addition to a prohibition on discrimination, that any exercise of regulation which is 
demonstrably restrictive of competition needs justification, by mandatory sector­
specific requirements indispensable for the proper functioning of the system, in the 
general interest and non-economic in nature. 
In particular, any restrictions resulting from exclusive or special rights for the 
provision and operation of the terrestrial public network infrastructure and for the 
public telephone service, as well as the special regulatory safeguards for the 
provision of public data services established by Member States in accordance with 
the procedures defined in Directive 90/388/90, may only extend to satellite 
communications systems in as far as they can be considered as being equivalent to 
these two-way public service categories. 
Notwithstanding the special provisions applying to broadcasting services to the 
general public defined in Directive 89 /552/EEC75, one-way services by definition 
do not fall into this category. 
15 Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities, 89/552/EEC/. 
94 
The public voice telephone service is defined in Directives 90 /387 /EEC and 
90 /388 /EEC'6,77 as the commercial provision for the public of direct transport of 
real-time speech via the public switched network or networks such that any user can 
use equipment connected to a network termination point to communicate with 
another user of equipment connected to another termination point. 
Even large-scale two-way satellite communications systems -such as extensive 
VSAT systems -do not fulfil this requirement if not connected to the public 
switched network. In this light, two-way satellite communications systems should 
'only be considered as equivalent, if connected to the public switched terrestFial 
network infrastructure and interlinked with the two-way public services mentioned 
above. 
By extension of the consensus and the legal situation achieved for terrestrial 
telecommunications, the transmissions of signals to /from satellites 
(uplink/downlink) and the corresponding operation and use of terminal equipment 
in a system not connected to the public switched network infrastructure, should 
therefore not be subject to any restrictions except those justified by the avoidance 
of harmful interference, and, in justified cases, by data protection and the 
protection of privacy, and standards to the extent required by Community law. 
Should a Member State consider that very large satellite communications systems 
not interlinked to the two-way public services mentioned above obstruct in law or in 
fact, because of their competition with the telecommunications organisation, the 
performance of the latter's task of providing public telecomm~nications services, 
and that further restrictions would have to be applied to allow the carrying out of 
the particular tasks entrusted to the telecommunications organisation in accordance 
with Article 90, they would have to demonstrate that such systems would meet 
criteria equivalent to those set out in Directive 90/388/EEC with reference to 
Article 90(2), subject to Commission scrutiny and dependent on the interests of the 
Community. 
76 Council Directive of 28th June 1990 on the establishment of the internal market for telecommunications 
services through the implementation of Open Network Provision (90/387 /EEC). 
77 Commission Directive of 28th June 1990 on competition in the markets for telecommunications services 
(90/388/EEC) O.J. L 192, 24/07 /1990, p. 10. 
95 
For the operation of transmit/receive terminals -including hub-stations -in a 
system connected to the public switched network, Member States may establish 
additional regulatory safeguards to ensure compliance with the restrictions resulting 
from exclusive or special rights for the provision of public telephony service, as well 
as the special conditions and licensing schemes for the provision of public data 
services established in accordance with Directive 90/388/EEC. 
3.2 Licensing conditions 
Licensing conditions must be justified, be proportionate to the objective sought, be 
transparent, and non-discriminatory. 
They must not lead to technical restrictions which would unduly impede permitted 
activities or use of equipment -as would the simple prohibition of interconnection 
of transmit/receive terminals with the public network infrastructure. Licensing 
procedures must fully respect the principle of the separation of regulatory and 
operational functions. 
3.2.1. Avoidance of harmful interference and frequency co-ordination 
78 
79 An essential requirement applicable to satellite communications and of equivalent 
importance to the requirement of network security and network integrity in the 
terrestrial network, is the need to avoid unacceptable interference with other 
satellite or radio communications systems, in accordance with· Council Directive 
89/336/EEC'8 concerning electromagnetic interference, and in accordance with the 
coordination procedures agreed on a global basis by all members of the 
International Telecommunications Union79, established in the Radio Regulations 
Council Directive on the approximation .of the laws of Member States relating to electromagnetic 
compatibility, 89/336/EEC, 3/5/1989, O.J. L 139, 23/05/1989, p. 19. 
Article 34 of the ITU Constitution (Nice 1989) stipulates: "All stations, whatever their purpose, must be 
established and operated in such a manner as not to cause harmful interference to the radio services or 
communications of other Members or of recognised private operating agencies, or of other duly authorised 
operating agencies which carry on radio services, and which operate in accordance with the provisions of the 
Radio Regulations ..... " 
Article 33 states: " ..... .In using frequency bands for radio services, Members shall bear in mind that radio 
fre'!_· .:ncies and the geostationary satellite orbit are limited natural resources and that they must be used 
rationally, efficiently and economically, in conformity with the provisions of the Radio Regulations, so that 
countries or groups of countries may have equitable access to both, taking into account the special needs of 
the developing countries and the geographical situation of particular countries." <: 
96 
and administered by the International Frequency Registration Board of the 
International Telecommunications Union (reviewed in Chapter II.). 
As the antenna size of satellite terminals decreases, their discrimination ability 
diminishes and their interference potential increases if the necessary precautions 
are not taken. 
European Telecommunications Standards for remote terminals should be guided by 
the principle of minimising interference and maximising possibilities for co­
existence of terminal networks. 
Given the significant risk of harmful interference to other services caused by 
erroneous operation or major antenna pointing errors, licensing and type approval 
procedures for transmitting terminals may include the requirement that all satellite 
terminals are installed, supervised ~nd serviced by qualified technical staff -either 
by the owner demonstrating the required professional level, or by qualified 
installation and maintenance organisations. This is in line with the principles 
established in Directive 88/301/EEC80 which foresees that "economic operators 
may be required to possess the technical qualifications needed to connect, bring 
into service and maintain terminal equipment on the basis of objective, non­
discriminatory and publicly available criteria". 
Large scale experience -in particular in the United States -with similar satellite 
terminal equipment installation requirements, has shown that no major difficulties 
are experienced in this respect in practice. 
In order to further facilitate identification of satellite terminals causing harmful 
interference to other services, it should be investigated whether electronic 
identification systems should be included in the standards for such equipment. 
3.2.2. Data protection and technical standards 
The principle that services provided via satellites should be subject to the same 
regulatory principles as services provided via terrestrial networks, leads to 
consideration -in equivalence with Directives 90/387 /EEC and 90/388/EEC -of 
the protection of data and interoperability as further essential requirements where 
appropriate and justified. 
80 Commission directive of 16th May 1988 on competition in the markets in telecommunications terminal 
equipment, OJ. L 131, 27 /05/1988. 
97 
Satellite services should not be allowed to by-pass data protection requirements 
which may be introduced in terrestrial services and networks as set forth in the 
Commission's proposals in this area81• 
As regards technical compatibility and standards, Directive 90 /387 /EEC foresees -
for the provision of services via the terrestrial network -" ... if the implementation 
of European standards ... appears inadequate to ensure the interoperability of 
transfrontier services in one or more Member States, reference to European 
standards may be made compulsory .... to the extent strictly necessary to ensure 
such interoperability and to improve freedom of choice for users". In order ~o 
achieve the same objective for services provided via satellites, requirements for 
technical standards may be foreseen to the extent required by Community law. 
3.2.3. Other requirements 
Directive 90 /388 /EEC allows for the provision of public data services via terrestrial 
networks to be subject to additional requirements resulting from general trade 
regulation and relating to conditions of permanence, availability and quality of 
service, subject to verification by the Commission of compatibility with the Treaty 
rules. Apart from the case where transmit/receive stations -connected to the 
public network -are used for the provision of such services, additional conditions 
of this nature should only be considered as far as they are indispensable to ensure 
ability to comply with the essential requirements set out above, such as avoidance of 
harmful interference and efficient use of the frequencies allocated in the framework 
of frequency coordination. 
Any other requirements of this kind should be left to the normal contractual 
relationships between service provider and customer and the general legislation 
regulating such relationships. 
As regards other general regulation of potential impact on the establishment of 
satellite terminals, such as that relating to environmental considerations, and town 
planning, aimed at preventing unsightly development, it can be expected that this 
could only become a factor of some significance in the mass market of DTH 
reception terminals. In this regard, environment considerations must be carefully 
balanced against the principle of freedom of information. Standards for such 
81 See COM(90) 314, in particular Draft Proposal for a Council Directive concerning the protection of personal 
data and privacy in the context of public digital telecommunications networks, in particular the Integrated 
Services Digital Network (ISDN) and Public Digital Mobile Networks. 
98 
· terminals should be designed in such a way as to minimise the negative effects on 
the environment in order to avoid any major restrictions on the deployment of 
satellite terminals in this regard. 
Given the rapid development of technology and in particular of transmission, access 
and coding techniques, any technical limitations, such as limitations on bit rates 
transmitted, are intrinsically liable to obsolescence and should not be used in 
licensing procedures. 
This applies also to the implementation of essential requirements, such as 
requirements concerning data protection. As pointed out, regulatory safeguards 
should not lead to undue technical restrictions. Systems which require conditional 
access (see chapter IV.) can in general be implemented by using suitable encryption 
methods under the responsibility of the sender. Where international obligations 
require the respect of data protection and confidentiality82, such protection can be 
ensured via the licensing conditions. In the particular case of receive-only terminals 
operating in non-broadcast bands -for which licensing does not seem required nor 
practical -a requirement for an indication that such equipment may not legally be 
used for unauthorised access should be sufficient, as is the practice -m many cases 
-with regard to other radio receivers. 
3.2.4. Mutual recognition of licences 
The freedom to provide services under Article 59 of the Treaty implies an extension 
of an operating licence to the whole Community subject to non-discriminatory 
requirements that are justified by the general interest. Thus a hub station operator 
or service provider authorised to transmit via a satellite towards receive-only earth 
stations, would not have to negotiate "landing rights" in other Member States. 
However, for a private satellite terminal network consisting of transmit/receive 
terminals located in a number of Member States, operating licences would be 
needed. In order to avoid the administrative delays involved in numerous 
individual licensing procedures, a Community scheme for the mutual recognition of 
licences for satellite terminals should be est~blished so that the operating licences 
granted by the authorities of one Member State would be recognised in all other 
Member States. 
82 Article 26 of the ITU Constitution foresees that "Members agree to take all possible measures, compatible 
with the system of telecommunication used, with a view to ensuring the secrecy of international 
correspondence ... ". A similar obligation is contained in Article 23 of the Radio Regulations. 
99 
Based on the principles set out, such a scheme should lay down the conditions for 
the Community-wide operation of terminal networks and possible conditions 
regulating hub station operators. 
It should in particular facilitate the establishment of two-way networks across the 
Community by, inter alia, providing for class licences for networks operating within 
frequency bands designated with priority to Community-wide satellite applications. 
These class licences should give the possibility of operating, e.g., VSA T networks 
~hroughout the Community under a single licence, without any need of further 
licensing or frequency coordination for the individual participating satellite 
terminals in the Member States. Networks operating within non-designated 
frequency bands should be licenced with a minimum of obligatory procedures for 
frequency coordination. 
In order to make such a scheme effective, it will have to be accompanied by a 
number of harmonisation measures: 
Mutual recognition of type approval for satellite terminal equipment (see 
below); 
Strengthened frequency coordination related to satellite communications, 
building on the current reform of the European Radiocommunications 
Committee and the establishment of the European Radiocommunications 
Office (see chapter IV.), to designate in particular certain bands with 
priority to Community-wide satellite applications, such as needed for the 
easy operation of class licences; 
Specific definition of Open Network Provision (ONP), as defined in 
Directive 90 /387 /EEC, concerning the connection of satellite terminal 
networks to the terrestrial public network infrastructure, subject to the 
constraints and regulatory safeguards set out. This would provide Europe­
wide harmonised interfaces between satellite systems and the public 
network, extending the concept of Open Network Provision to satellite 
communications. 
100 
4. Future treatment of the space segment 
Current regulation of the space segment still reflects, in most cases, the situation in 
the sixties and seventies where the only technically and economically feasible 
application of satellite communications was their use as an additional transmission 
path to carry international or national long distance traffic for telecommunications 
organisations. 
As shown in the preceding chapters, this situation has now substantially changed. 
In Europe, additional to the international satellite organisations, a number of 
additional providers of space segment have been authorised by Member States -
both telecommunications organisations at the national level as well as other 
organisations (refer to Figure 2). 
For the development of a coherent approach to the future access to and 
provision of -the space segment, two basic mechanisms which determine the 
current regulation of the space segment in Europe must be carefully considered: 
the international commitments of Member States concerning frequency co­
ordination and the use of the orbital resource in the context of the 
International Telecommunications Union, its permanent organ, the 
International Frequency Registration Board, and the respective globally 
agreed Radio Regulations. This has been discussed in Chapter II. It means 
that at this stage, only Member States, acting individually, can initiate the 
necessary procedures for both utilisation of frequencies and orbital 
resources; 
the international commitments of Member States relating to the 
international telecommunications satellite organisations INTELSAT and 
INMARSA T and the European Telecommunications Satellite Organisation 
EUTELSAT and the respective Conventions and Operating Agreements. 
Of major consequences for the access to -and use of -the space segment 
provided by these organisations are the provisions in these arrangements 
giving the Signatories the exclusive right for allotment of satellite (space 
segment) capacity to satellite service providers, and the provisions 
concerning economic and technical coordination of space segment intended 
to be provided by other organisations (space segment providers). 
83 101 
As mentioned previously, the situation is further complicated by the fact that all 
Member States have designated their telecommunications organisations to act as 
signatory to the Operating Agreements of the international telecommunications 
satellite organisations83 while in a number of Member States these organisations are 
also mandated to represent the Member States with regard to the ITU procedures. 
With the growing diversification of satellite applications and the growing number of 
actors wanting to provide space segment capacity and/ or satellite services via space 
segment, this now entangles the telecommunications organisations more and more 
in the delicate situation of being referee and player at the same time. The lack pf 
separation between the regulatory and operational functions now leads to growing 
conflicts of interest. 
In order to bring the regulation of access to -and provision of -space segment in 
line with general Community telecommunications policy, a number of basic 
principles will have to be emphasised: 
the principle of open and efficient access, based on objective, transparent 
and non-discriminatory procedures; 
clear separation of regulatory and operational functions; 
full application of the provisions of the Treaty, in particular competition 
rules. 
The Member States are obligated to exercise their influence in order either to 
achieve an application of international agreements in conformity with the Treaty or 
to bring about an amendment of these agreements. The potential for conflict which 
may result from the current situation with regard to Treaty rules may be 
demonstrated by quoting from the principles set out in the Commission guide-lines 
on the application of competition rules in the telecommunications sector84, as 
regards application of articles 85 and 86 to satellites: 
In the case of EUTELSAT Article Il.b) of the Convention states that a signatory of the Operating Agreement 
is a "designated public or private telecommunications entity" Q! a Party itself. 
In the case of INTELSAT and INMARSAT the equivalent Articles are 11.b) respectively 2.3. 
The large majority of Member States have designated their national telecommunications organisations (for 
details see Fig. 1). Italy has established a special organisation (fELESPAZIO). The United Kingdom has 
established the "Signatory Affairs Office", separated within British Telecom, but BT is still carrying the full 
financial responsibility. 
84 To be published. 
102 
" ... agreements between TOs (Telecommunications Organisations) concerning the 
operation of satellite systems in the broadest sense are caught by Article 85. As to 
space segment capacity, the TOs are each other's competitors, whether actual or 
potential. In pooling together totally or partly their sales of space segment capacity 
they may restrict competition between themselves.... Restrictions on third parties' 
ability to compete are likely to exclude the possibility of ... an exemption. It should 
also be examined whether such agreements strengthen any individual or joint 
dominant position of the parties, which also would exclude the granting of an 
exemption. This could be the case in particular if the agreement provides that the 
parties are exclusive distributors of the space segment capacity provided by the 
agreement .... ". 
"An exemption is unlikely to be granted also when the agreement has the effect of 
reducing substantially the supply in an oligopolistic market, and even more clearly 
when an effect of the agreement is to prevent the only potential competitor of a 
dominant provider in a given market from offering its services independently. This 
could amount to a violation of Article 86 ... ". 
4.1 Ensuring objective. transparent and non-discriminatory procedures and separation 
of regulatory and operational functions 
Where telecommunications organisations can be both player and referee, because 
regulatory and operational functions are not clearly separated, there is a clear 
conflict of interests. This can be the case in particular with -regard to the co­
ordination of frequencies and use of orbital resources, the granting of operating 
licences, the resale of space segment of INTELSAT, INMARSA T and EUTELSAT 
by the telecommunications organisations to other service providers, and the 
coordination procedures with the international telecommunications satellite 
organisations which must be undertaken by other space segment providers. 
The principle of separation of regulatory and operational functions has been 
implemented in the context of general Community telecommunications policy in 
Directive 88/301/EECSS and Directive 90/388/EEC86• According to Directive 
90/388/EEC "Member States shall ensure that the grant of operating licences, the 
control of type approval and mandatory specifications, the allocation of frequencies 
85 Commission Directive of 16th May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC) 
86 Commission Directive of 28th June 1990 on competitoin in the markets for telecommunications services, O.J. 
L 192, 24.07.1990, p. 10 
103 
and surveillance of usage conditions are carried out by a body independent of the 
telecommunications organisations". 
The Council Resolution of 30th June 1988 on the development of the Common 
Market for telecommunications services and equipment87 underlined the 
importance of this principle for the telecommunications sector as a whole, and 
Council Resolution 90/C 166/0288 emphasised that the coordination of radio 
frequencies must respect the principle of the separation of regulatory and 
operational duties. 
. 
In particular, the procedures concerning allocation of frequencies and required co-
ordination established within the radio regulations should respect this principle and 
should be carried out in an objective, transparent, and non-discriminatory way. 
Objective, transparent, and non-discriminatory procedures and full separation of 
regulatory and operational functions should also be ensured as regards access to the 
orbital resource for the provision of space segment. 
4.2 Access to space segment capacity 
87 
88 
89 Both the agreements on the international telecommunications satellite 
organisations INTELSAT and INMARSA T, and the agreement on the European 
Telecommunication Satellite Organisation EUTELSAT, give the signatories the 
sole right to distribute space segment capacity of these organisations to users or 
service providers89. 
To the extent that the signatories hold a dominant position in the sense of Article 
86, they would have to provide available space segment to all potential users at fair 
prices and on a non-discriminatory basis in the sense of Article 86(a) and (c). They 
Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 
services and equipment up to 1992, O.J. C 257, 04.10.1988, p. 1. 
Council Resolution of 28th June 1990 on the strengthening of the Europe-wide co-operation on radio 
frequencies, in particular with regard to setvices with a pan-European dimension, OJ. C 166, 7.7.12990, p. 4 
In the case of EUI'ELSAT Article 16 a) of the Operating Agreement provides that "applications for allotment 
of EUI'ELSAT Space Segment capacity may be submitted to EUI'ELSAT only by signatories or, for a 
territory not under the jurisdiction of a Party, by a duly authorised telecommunications entity". 
This provision must be read in conjunction with Article II b) of the Convention which provides that "each 
Party shall designate a public or private telecommunications entity subject to its jurisdiction to sign the 
Operating Agreement, unless such Party itself signs the Operating Agreement." 
In the case of INTELSAT and INMARSAT, the equivalent articles are articles 15.a) and 11.b ), respectively 
XV.1 and 2.3. 
104 
would also seem not to be entitled to request detailed information about the users' 
business plans and the (in many cases competing) services they intend to offer, as 
this may entail an abuse of their dominant position. 
The principle of non-discriminatory treatment must apply to all classes of users, 
irrespective of whether they are public or private service providers. For example, 
private broadcasters should be offered transmission capacity to provide for services 
such as news gathering with the same promptness and on the same conditions as 
public broadcasting organisations. 
The best solution to avoid distortion of competition and to allow full use and best 
allocation of the existing international, national and private space segment would be 
to ensure that users obtain direct access to space segment capacity, while providers 
of this space segment should obtain the right to market space segment capacity 
directly to users. 
The fact that EUTELSAT offers space segment directly to the European 
Broadcasting Union shows likewise that the direct lease of space segment without any 
intervention of national telecommunications organisations is not only feasible, but 
already practised. 
4.3 Co-ordination procedures with the International Telecommunications Satellite 
Organisations 
90 The agreements setting up the international satellite organisations INTELSAT and 
INMARSAT, and the European satellite organisation EUTELSAT provide for a 
co-ordination procedure with regard to other space segment providers, in order to 
establish whether there is likely to be any significant economic harm to these 
organisations90• 
In the case of EUfELSAT, Articles XVI a) of the Convention provides: "Any Party or Signatory which 
intends, or becomes aware that any person within the jurisdiction of that Party intends, individually or jointly, 
to establish, acquire or utilise space segment equipment separate from the EUI'ELSA T Space Segment in 
order to meet the requirements of international public telecommunications services within the EUfELSAT 
space segment service area to provide services as defined in paragraphs a) and b) of Article III of the 
Convention shall, before such establishment, acquisition or utilisation, furnish all relevant information to the 
Assembly or Parties through the Board of signatories which shall establish whether there is likely to be any 
significant economic harm to EUfELSAT. The Board of signatories shall submit its report and conclusions 
to the Assembly of Parties". 
Article XVI b) concerns the "technical compatibility of other space equipment". 
~n the case of INTELSAT and INMARSAT the equivalent articles are XIV c), d) and e) respectively 8.1 of 
the Conventions. 
105 
As these provisions aim at co-ordination for economic reasons and may therefore 
limit competition between the satellite organisations and other space segment 
providers, the question arises whether they are in line with the Member States' 
obligations under Article 5 in conjunction with Articles 59, 86 and 90 of the Treaty. 
It is clear that these provisions do not represent an essential requirement in the 
public interest which could lawfully limit the freedom to provide services under 
Article 59 of the Treaty, since the provisions in question are of an economic nature. 
On the other hand, they may be able to benefit from the exemption foreseen in 
Article 90(2) of the Treaty to the extent that they are indispensable for the 
performance of a service of general economic interest. Whether this is the case, iX!. 
whether the services of general economic interest can only be performed if 
competition on the part of other providers of space segment is limited or excluded, 
will have to be determined on a case-by-case basis. However, it is clear that this 
determination must not be made by the telecommunications organisations whose 
conflict of interest in this matter is obvious. 
At any rate, these provisions will have to be interpreted in conformity with the 
requirements of Community law and in particular with Articles 59, 85, 86 and 90. 
This means that the basic decision of the Treaty of Rome to institute a system of 
undistorted competition and guarantee the freedom to provide services has to be 
respected by the Member States in applying these provisions. In particular, a 
systematic rejection of competing providers of space segment or a systematic 
limitation of their capability to compete with the satellite organisations would not be 
in conformity with the Member States' obligations under Articles 5 and 90 in 
conjunction with Articles 59, 85 and 86 of the Treaty. Article 90(2) allows 
derogations from Article 59 and the competition rules only in the exceptional case 
that the application of the Treaty rules obstructs the performance, in law or in fact, 
of the particular tasks entrusted by Member States to the organisations in question 
and that the derogation is not contrary to the interests of the Community. Under 
normal conditions, these organisations may well be expected to offer their services 
of general economic interest to their customers, even if they are exposed to a 
certain degree of competition. 
The present practice of handling the coordination requirements confirms this. The 
procedure under Article XVI of the EUTELSAT Convention has never led to the 
conclusion that a competing provider of space segment would represent significant 
economic harm to EUTELSAT. Even if this were the case, Article XVI of the 
Convention does not prevent a party to that Convention from going ahead with its 
106 
plans and authorising a competing provider of space segment, although this would 
not guarantee the provision by other parties of the necessary uplink authorisation. 
While the procedure under Article XIV ( d) of the INTELSAT Convention has in 
one case led to the conclusion that a competing space segment provider would 
indeed represent economic harm to INTELSAT, the organisation did not raise 
objections to the authorisation of the competing space segment provider in 
question. 
In order to ensure that conflicts of interest do not lead to legal uncertainty, the 
principle of the separation of regulatory and operational functions requires that the 
independent regulatory authorities of the Member States rather than the 
telecommunications organisations decide about the authorisation of competing 
space segment providers, taking account of Community Law. In cases of doubt, it 
will be for the Commission to decide whether the conditions of Article 90(2) are 
fulfilled and competition from a competing space segment provider could be 
limited. 
Once a competing provider of space segment has been authorised by a Member 
State, such as TELECOM 1-2, ASTRA, DFS Kopernikus, BSB, ITALSAT or 
HISPASAT, it benefits from the freedom to provide services under Article 59 of the 
Treaty. It will therefore have the right to offer its services, subject to certain 
essential requirements in the public interest, throughout the Community. 
As regards the future handling of the technical coordination procedures as foreseen 
in the Conventions, they should be undertaken on a sound technical basis and 
realistic model assumptions for such coordination. Such coordination must not be 
used as a technical barrier to entry for other providers. 
4.4 Cost-orientation of Tariffs 
Council Directive 90/387 /EEC states for the access to the terrestrial network 
infrastructure the principle that "tariffs must be based on objective criteria and .... 
must be in principle be cost-oriented". 
One of the characteristic features concerning satellite communications is that their 
costs are distance-independent. 
107 
However, their dual role as providers of the terrestrial infrastructure on the one 
hand, and as signatory on the other, leads telecommunications organisations in 
many cases to charge for satellite facilities on the same distance-related basis as for 
terrestrial links. Thus the technological advantage of satellites' wide-area coverage 
is not passed on to the user or competitive service providers. Moreover, the mark­
up added by telecommunications organisations in their role as exclusive re-saler of 
space capacity -acting as signatory to the international agreements -may in 
certain cases, increase the price charged to users for use of the space segment very 
~ubstantially. 
This can be explained by the fact that, in many cases, the telecommunications 
organisations tend to subordinate the pricing of satellite capacity to the specific 
targets of their own business strategy -one example of t~e risk of possible abuse of 
a dominant position to which the cu.rrent procedures for resale of space segment 
exposes the Signatories. 
This situation will only change fundamentally once the separation of regulatory and 
operational functions has been fully implemented in the sector, and space segment 
providers will be able to negotiate directly with customers. It is to be expected that 
they will then market their transmission capacity at prices more closely related to 
their cost. This will increase the use of satellite services and the return on the 
provision of space segment, both for the international telecommunications satellite 
organisations as well as other providers. It will be fundamental to the full use of the 
new potential of satellite communications. 
4.5 Commercial freedom for EUTELSAT and provision of space segment 
A basic principle of telecommunications policy is giving all market participants full 
opportunity to use the new technological potential. 
The separation of regulatory and operational responsibilities and the establishment 
of more open access to the space segment would give the space segment providers 
in Europe -and in particular the European Telecommunications Satellite 
organisation, EUTELSAT -the possibility to develop into a full scale 
entrepreneurial organisation for marketing space segment directly to service 
providers and users for new applications. 
108 
At the moment, all contact with user parties -i.e. entities wishing to lease space 
segment capacity -has to be made via Signatories. This has led to a lack of 
flexibility in system planning since, e.g. TV channels are leased to EUTELSAT 
Signatories without knowing whether or not they will then be used. It should not be 
forgotten that a substantial amount of the capacity, although leased to Signatories, 
is in effect unavailable to end-users as Signatories do not use it or may regard it as 
part of their commercial policy not to lease it to the end-users or potential service 
providers. 
The satellite organisations and other space segment segment providers shm.~ld 
provide space capacity on equitable and non-discriminatory terms to all classes of 
users, irrespective of whether they are private or public service providers. 
According to the Council Resolution on the development of the Common Market 
for telecommunications services and equipment91 one of the major policy goals of 
general Community telecommunications policy is "developing a common market on 
which telecommunications administrations and other suppliers can compete on an 
equal footing", taking account, in particular, of the "application of the relevant rules 
of the Treaty, notably competition rules, to telecommunications administrations 
and private providers". This should include in particular that market participants 
do not take advantage of dominant market positions through undue cross­
subsidisation of activities, and respect in this regard the competition rules of the 
Treaty, using as guidance the principles set out in the Draft Guidelines on 
Application of Community Competition Rules to the Telecommunications Sector92• 
Article III of the EUTELSAT Convention defines the scope of EUTELSAT 
activities. In principle, it would seem to allow EUTELSAT to provide all the 
services it wishes. 
One argument against giving users the right of direct access to the EUTELSAT 
space segment, and EUTELSAT the right to market space segment directly to 
service providers and users, has been that utilisation by a Signatory has an impact 
on its investment shares as provided for in Article 6 of the Operating Agreement. 
Where a non-Signatory entity accesses the EUTELSAT space segment, such 
utilisation would not count for the purposes of determination of investment share. 
The practical problem could arise for example that there could be extensive access 
by private operators in the territory of a Signatory, while the Signatory itself would 
91 Council Resolution of 30th June 1988 on the development of the Common Market for telecommunications 
seivices and equipment up to 1992 (88/C257 /EEC), OJ. C 257, 4.10.1988, p. 1. 
92 To be published. 
109 
perhaps scarcely utilise the space segment, or maybe not at all. It is stated, that a 
resulting low investment share for such a Signatory would not be in the spirit of the 
original agreements and/ or be inconsistent with the assumption and understandings 
upon which they were based. 
However, it would seem that this should not be an argument against allowing 
EUTELSAT to develop its full potential for providing space segment for Europe­
wide services in all areas. It just emphasises the need to review the existing 
arrangements and to allow, inter alia, for changes in current financing arrangements 
~nd the opening of the membership of the EUTELSAT consortium to new parti~s, 
if such under-investment should occur. 
4.6 A phased approach 
Member States must respect existing international commitments taking account of 
their obligations under Community Law but they should also work jointly 
towards the change of such commitments where required, in order to conform with 
these obligations. 
The international telecommunications satellite organisations have grown -over 
the last three decades -out of a world-wide context and must take account in any 
adjustment a large spectrum of interest, both of industrialised countries as well as 
of the developing world. Changes required therefore will take time and will have to 
depend on the evolving global environment. 
However, a number of immediate steps could be undertaken and more flexible 
procedures established, within the framework of the existing Conventions and 
Operating Agreements: 
Member States should, as regards their own representation, apply strictly 
the principle of separation of regulatory and operational functions, in order 
to avoid obvious conflicts of interest; 
Member States should support proposals -of the type currently being 
discussed by INTELSAT -aimed at rationalising the economic harm 
coordination procedures and take full account, as far as their own position 
in such procedures is concerned, of their obligations under the Treaty, in 
particular competition rules. They should in particular ensure that in such 
110 
procedures the dimension of the Community Single Market as one Europe­
wide domestic area is taken into account. 
One practical measure to ease current procedures may be to agree that 
once a satellite system has been cleared through the coordination procedure 
on the basis of the total amount of capacity which that system can carry, 
other Member States would associate automatically with the initial 
consultation undertaken by a Member State with regard to any service 
provider, when this service provider wants to extend its service to other 
Community Member States. 
Member States should support actions to render technical coordination 
procedures less cumbersome; 
Member States should facilitate more open access to the space segment 
provided by the international telecommunications satellite organisations, via 
the Signatories and pay special attention to the implementation of the 
principle of cost-orientation of tariffs. 
For example, it would seem possible to develop workable procedures for 
submission by Signatories of applications for the allotment of space capacity 
on behalf of users/service providers in their territory, as has been 
demonstrated by certain Community Member States93• 
While these steps could offer some immediate relief, they will not overcome the 
basic problem of adjustment of the agreements to the new environment, nor the 
risk of market distortion and conflicts of interest. 
While these initiatives may therefore be the only realistic options in the short term 
in the context of INTELSAT and INMARSAT given their world-wide international 
constraints, Member States should work, in the European context, towards a full 
review of the EUTELSAT Agreement. 
Given their total investment share of 88 % in the EUTELSAT organisation and the 
trends towards liberalisation in other European countries it is likely that a broad 
European base for reform could be found (refer to chapter IV.), Member States 
should take full account of their obligations under Community Law and should take 
93 E.g. the United Kingdom has established the Signatory Affairs Office "walled-off' within the 
telecommunications organisation (BT). 
Also, it would seem that although the official application for allotment needs, under the current agreements, 
to go via the Signatory, nothing prevents the preceding technical, operational and other arrangements being 
111 
the initiative for redirection and adjustment of the EUTELSAT Convention and 
Operating Agreement, in order to ensure development of the potential of 
EUTELSAT to the fullest possible extent, in line with the goals and requirements 
of the Single Market94• 
Such a review should include, beyond the measures set out above, necessary 
revision to allow 
direct access to the EUTELSAT space segment, by far the largest one for 
use by domestic satellite services in Europe; 
full commercial independence and direct marketing of EUTELSAT space 
segment to users; 
adjustment of provisions for financing and membership, as required; 
adjustment of the agreements to bring them fully in line with the obligations 
of the Member States under the Treaty, in particular competition rules -
concerning notably the future treatment of the economic harm provision as 
well as the future handling of the technical coordination procedures, and 
transparency with regard to cross-subsidisation where it occurs. 
5. Standardisation and Type-approval 
The working out of suitable standards is vital to make the liberali~ation of the earth 
segment and the establishment of trans-European satellite terminal networks a 
market reality. 
The European Telecommunications Standards Institute (ETSI) will have to play a 
focal role in this. A number of European Telecommunications Standards (ETS) 
will be needed for the functioning of the mutual recognition of type approval and of 
licences. 
made directly between the international telecommunications satellite organisations and end-users. 
94 Amendments to the Convention can be decided by two thirds of the Parties and whose Signatories hold at 
least two-thirds majority in investment shares (Article XIX.b) of Convention) while amendments to the 
Operating Agreement need to be decided by a majority of at least two-thirds of the Signatories which also 
represents at least two-thirds investment share (Article 22.d) of Operating Agreement). The Party of the 
Signatory concerned must confirm the Signatory vote. 
95 112 
The ETSI Technical Committee TC-SES (Satellite Earth Stations), created for this 
sector, has identified a multi-annual work programme, setting out the priority areas 
for the production of standards. One-way and two-way small terminals are the 
immediate priority. The work on European Telecommunications Standards for 
satellite earth stations is well underway, with the preparation of draft standards for 
TV receive-only stations, data receive-only stations, two-way terminals and low bit­
rate mobile terminals. The standards will seek, inter alia, to minimise the risk of 
spectrum pollution by receive-only terminals, while for two-way terminals the 
standards are aimed at interoperability of small terminal networks with sufficient 
protection against various types of interference. The standards shall allow 
manufacturers to specify equipment suitable for use on the Community market. 
As mentioned, the mutual recognition of type approval for satellite terminal 
equipment is one of the major pre-conditions for the mutual recognition of licences, 
and a Community-wide market for satellite terminals. The adoption of a common 
position on the Draft Directive on the approximation of the laws of the Member 
States concerning telecommunications terminal equipment, including the mutual 
recognition of their conformity95 at the Telecommunications Council of 28 June 
1990, has now provided the basic principles to be respected in the field of type 
approval. Its coverage will have to be extended to include satellite terminals. 
Given the basic approach that type approval procedures should apply only in those 
cases where this can be seen as indispensible to ensure the conformity with essential 
requirements, type approval procedures should apply only to satellite terminals 
connected to the public switched network -where the essential requirements 
defined in the draft Directive mentioned will apply -, as well as to transmitting 
terminals where the avoidance of harmful interference is a recognised essential 
requirement. Receive-only terminals not connected to the public switched network 
should not be subject to type approval but only to a requirement for an indication of 
compliance with suitable standards in the field of electromagnetic interference, no 
more onerous than the procedures applying to other radio receivers. 
A basic element of type approval procedures must be the clear separation of 
regulatory and operational functions, in order to avoid otherwise inevitable conflicts 
of interest. Directive 88/301/EEC96 foresees that the granting of type approval is 
entrusted to a body independent of public or private undertakings offering goods 
Common Position adopted by Council on 24th July 1990 with a view to the adoption of a Council Directive on 
the approximation of the laws of the Member States concerning telecommunications terminal equipment, 
including the mutual recognition of their conformity. 
96 Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
113 
and/or services in the telecommunications sector". This principle has been 
acknowledged in Community telecommunications policy as basic to any type 
approval procedure, and therefore must also apply to type approval of satellite 
terminals. 
A special problem in this context is the responsibilities which under the current 
agreements Signatories have for dealing with applications for the approval of earth 
stations which access the space segment of the international telecommunications 
satellite organisations97• 
The principle of separation of regulatory and operational responsibilities will ha~e 
to apply also in this case. It would seem that an interpretation of the obligations of 
Parties and Signatories under the current agreements can be found which would 
allow for referring type approval to the respective regulatory bodies of each party 
and thus to fully submit to the principle set out. 
6. Mobile and position-fixing satellite services 
As set out in chapter III., satellite-based mobile services have developed from 
maritime mobile services, but aeronautical and especially land mobile services are 
now at the centre of interest. A number of initiatives have permitted the planning 
of several systems that may be used within Europe for messaging, voice traffic and 
position fixing, such as: 
plans by EUTELSAT m cooperation with a U.S. company to offer a 
position-fixing and messaging service from 1990, called EutelTRACS; 
the development of a service by INMARSA T suitable for both maritime and 
land-mobile use, using low cost "Standard-C" data-only terminals and, in the 
future, "Standard-M" digital voice terminals; 
ESA proposes a "European Mobile Satellite" (EMS) service; 
the preparation of the LOCSTAR messaging and position-fixing system, 
with commercial financing; 
equipment, 88/301/EEC, O.J. L 131, 27.05.1988, p .... 
97 In the case of EUTELSAT, Article 16.c) of the Operating Agreement provides: " ..... Each entity to which an 
allotment (of space segment) has been made under this Article shall be responsible for compliance with all 
the terms and conditions set by ElJfELSAT for such allotment unless, where a Signatory has submitted the 
application, its designating Party assumes such responsibility." 
114 
use by civil operators of position-fixing systems such as GPS/NAVSTAR 
(U.S.), GLONASS (USSR) and complementary civil networks 
(CNES/ESA; NAVSAT). 
The land mobile-satellite services will focus on specific user groups of limited size 
seeking instantaneous and full European coverage, such a trucking companies and 
vessel operators. While terrestrially-based public mobile systems will develop 
during this decade into mass services with many millions of users, the number of 
mobile-satellite terminals -though offering a vital service to certain parts of 
European business -is not expected to reach by the year 2000, more than 1-2 % ,af 
the number of terminals in the future public cellular (terrestrial) GSM system. 
Given that it is therefore highly unlikely that satellite-based mobile systems could 
obstruct the provision of the terrestrial public mobile systems in any significant way, 
and that service operators wish to provide fixed and mobile or a combination of 
both, and satellite-based mobile systems -with the blurring of the distinctions 
between Mobile-Satellite Service (MSS) and Fixed-Satellite Services (FSS) -do 
not differ substantially from other two-way point-to-multipoint satellite 
applications, they should not be subject to regulatory constraints or safeguards 
other than those for fixed services. 
Mobile-satellite terminal systems should therefore be governed by the equivalent 
rules for fixed services receive-only, or transmit and receive, terminal systems in 
terms of type-approval of terminals and licensing. 
115 
However, in the context of the Community's overall policy on mobile 
communications and its support for trans-European systems in this field98, the 
interoperability and complementarity of mobile satellite systems and the terrestrial 
networks should be encouraged. 
Given the fact that mobile terminals by nature cross borders, mutual recognition of 
licences and type approval of equipment are an essential precondition for any 
Europe-wide operation. 
Ih the harmonisation measures set out above, special provision should therefore be 
made for the unrestricted movement of mobile terminals throughout the 
Community and of the mutual recognition of licences for this purpose. 
7. Broadcasting-Satellite services 
Satellite broadcasting to the general public must be seen in the context of general 
Community audio-visual policy, as set out in chapter IV. It is subject to specific 
regulations set up by Member States in conformity with Community law, in 
particular Directive 89/552/EEC99 on "Television without Frontiers". 
TV and related distribution services currently account for 44 % of space segment 
operators' revenue in the Community and for 75 % of EUTELSAT revenues. 
Satellite television will play a pivotal role in the creation and diffusion of pan­
European programmes and in the development of a true European audio-visual 
98 Refer to: 
99 Council Recommendation of 25 June 1987 on the coordinated introduction of public pan-European cellular 
digital land-based mobile communications in the Community (87 /371/EEC), O.J. L 196, 17.07.1987, p. 81 
(concerning the introduction of the GSM system): 
Council Directive of 25 June 1987 on the frequency bands to be reserved for the coordinated introduction of 
public pan-European cellular digital land-based mobile communications in the Community (87 /372/EEC), 
O.J. L 196, 17.07.1987, p. 85. 
Proposal for a Council Recommendation on the coordinated introduction of pan-European land-based public 
radio paging in the Community, COM(89) 166, 05.06.1989. 
(concerning the introduction of the ERMES system). 
Proposal for a Council Directive on the frequency bands to be reserved for the coordinated introduction of 
pan-European land-based public radio paging in the Community, COM(89) 166, 05.06.1989. 
Proposal for a Council Recommendation on the coordinated introduction of Digital European Cordless 
Telecommunications (DECT) in the Community, COM(90) 139, 12.06.1990. 
Proposal for a Council Directive on the frequency bands to be designated for the coordinated introduction of 
Digital European Cordless Telecommunications (DECT) in the Community, COM(90) 139, 12.06.1990. 
Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities (89/552/EEC), O.J. L 
298, 17.10.1989, p. 23. 
116 
dimension. 
However, even if some 60 TV-channels are now distributed by satellite in Europe, 
the revenue base of satellite television is still very limited. Cumulated income of 
satellite channels from advertising -still the major source of funding for many of 
these channels -currently corresponds still to no more than 4 % of total TV 
advertising in Europe. 
The further development of satellite television in Europe will largely depend on 
rapid development of DTH terminals and the number of viewers, and the 
diversification of the revenue base. Common transmission standards and technieal 
compatibility will be one of the key-factors in achieving large Europe-wide 
audiences. 
As has been explained, television distribution via the EUTELSAT system as well as 
-more recently -via other systems such as Telecom 1-2, DFS .Kopernikus and 
ASTRA, is furnished via frequency bands reserved for Fixed-Satellite Service (FSS) 
and not via the frequency bands reserved by the W ARC'77 conference for the 
Broadcasting-Satellite Service (BSS) where the Direct Broadcasting Services (DBS) 
are located. This has made it extremely difficult to maintain a distinction between 
BSS services and broadcasting applications operating within the Fixed-Satellite 
Service. 
As new services are explored and service providers operating in the BSS bands also 
provide point-to-multipoint data services -and service providers operating in the 
FSS bands move to BSS bands in order to carry HDTV (refer to· chapter II.) -the 
border-line between FSS and BSS services will be further blurred. 
The agreement reached at the 1977 World Administrative Radio Conference, 
commonly referred to as the WARC 77 plan -assigning, on a national basis, a 
limited number of frequency bands in the BSS allocation -has turned out to be too 
rigid to take account of the new developments. 
While the full liberalisation of the earth segment will open the way for a more rapid 
penetration of DTH terminals on a European basis and more flexibility of entry for 
service providers into new business lines, the sector therefore now faces two major 
additional requirements: preparing for review of the plan criteria established by 
WARC'77; and promoting the pivotal role which satellites will play in the pan­
European introduction of High Definition Television (HDTV). 
117 
The effect of the W ARC'77 decisions has hindered the implementation and use of 
Broadcasting-Satellites with the technology available today. 
A revision and modernisation of the assumptions and criteria established in the 
regulatory provisions of the W ARC'77 Plan should take into account the present 
state-of-the-art of satellites and reception equipment technology, as well as the 
commercial needs in the exploration of new services. 
The technology for second generation European Direct Broadcasting-Satellite 
Systems has been developing particularly since 1985, aimed at satellites capable of 
pan-regional and multi-zone European coverage, and of High Definition Television. 
It is proposed -in the context of the overall Community audio-visual policy -to 
try to ensure a much greater cohesion for second generation DBS in Europe. 
European pan-regional multi-channel satellites of an intermediate power level -
such as the EUROPESAT project planned by EUTELSAT -would seem to be an 
attractive economic and technical option. 
Under this perspective, there should be a co-ordinated approach towards a review 
of the plan criteria established by the World Administrative Radio Conference of 
1977 on the provision of Broadcast Satellite Services. The possible result of this 
review should already be taken fully into account when identifying common 
European positions for the World Administrative Radio Conference of 1992. 
As mentioned with regard to the harmonisation of transmission techniques for 
satellite broadcasting, the current MAC/packet Directive100 is based on the 
definitions of Broadcasting-Satellite Services, as used in the WARC'77 plan. The 
Directive will expire on 31December1991. 
Preparation of future action in this area should be aimed at the harmonised 
introduction of a Europe-wide High Definition Television (HDTV) standard. It 
will also need to reflect the fact that -as set out -it will be increasingly difficult to 
distinguish between those services defined as Broadcasting-Satellite Services 
according to the WARC'77 definitions and broadcasting applications operating in 
the framework of Fixed-Satellite Services, and that more flexibility in using BSS and 
FSS frequency bands is needed in Europe. 
100 Council Directive on the adoption of common technical specifications of the MAC/packet family of standards 
for direct satellite television broadcasting (86/529/EEC), OJ. L 311, 03.11.1986, P. 28. 
118 
8. Summary 
The extension of Community telecommunications policy to satellite 
communications can build on the consensus achieved on the basis of the Green 
Paper on the development of the common market for telecommunications services 
and equipment, as confirmed by Council Resolution 88/C257 /01of30 June 1988. 
The future regulatory conditions for satellite communications must respect those 
regulatory safeguards which Member States may apply in the telecommunications 
s'ector in accordance with this consensus -and in particular with the agreements on , 
the Community's approach to telecommunications services, achieved at the 
telecommunications Council of 7 December 1989 -, but should not introduce any 
additional restrictions beyond those related to specific conditions in the field of 
satellite communications, where these can be justified in accordance with 
Community law, in particular the competition rules, and international 
commitments. 
The adjustment of the regulatory conditions must match the market requirements 
identified. They should in particular: provide for a dynamic development of earth 
segments and space segments .in the Community; meet the conditions required by 
users to operate in the Community-wide 1992 market; allow the full development 
of the Community's space industry in this area; and support the Community's 
policy for a common audio-visual space. 
Community law must be fully applied to this sector. The Community cannot admit 
-or afford -the continued withdrawal of a sector of such vital importance from 
the working of the single market, or from the full application of its rules. 
As elsewhere in the telecommunications sector, a basic element of the adjustment 
of the regulatory conditions in the satellite communications sector should be the 
principle of the abolition of exclusive or special rights and their replacement by 
licensing regimes, wherever legitimate public interest requires the maintenance of 
regulatory safeguards. Of particular specific importance in this regard for satellite 
communications is the avoidance of harmful interference, and frequency 
coordination. 
The application of these principles leads to the two major changes which are 
needed before the potential of the provision of satellite communications services, 
by both public and private providers, can be fully exploited in the Community: 
unrestricted provision and use of satellite terminal transmit and receive equipment; 
119 
and full, equitable and non-discriminatory access by users to all providers of 
satellite space capacity. 
A fundamental principle of the reform must be the establishment of objective, 
transparent and non-discriminatory procedures and the clear separation of 
regulatory and operational functions, both with regard to the provision and use of 
the earth segment, as well as with regard to access to -and the provision of -
space segment. 
Account must be taken of the existing international commitments of Member States . 
in this area, but Member States are also obliged to exercise their influence in order 
to achieve either an application of international agreements in conformity with the 
Treaty rules, or to bring about an adjustment of these agreements. This applies, 
inter alia, to the access to space segment capacity of the international 
telecommunications satellites organisations, as well as to the coordination 
procedures provided for in the respective agreements. 
The best -and in the medium term inevitable -solution to avoid distorsion of 
competition and to allow full use and best allocation of the existing space segment 
would be to give providers of space segment the right to market space segment 
capacity directly to users. This is of special relevance in the case of the European 
Telecommunications Satellite Organisation EUTELSAT which will remain the 
most important provider of space segment for intra-European satellite 
communications. With its special importance for Europe-wide satellite 
communications, its continued development and growth is vital f<?r the future trans­
European satellite services which are needed by the European user. 
Given that international telecommunications satellite organisations have grown out 
of a world-wide context, they must take into account, in any adjustment, a large 
spectrum of interest, both of industrialised countries as well as the developing 
world. The changes required may therefore have to be undertaken in phases. 
However, having in mind the special importance of EUTELSAT for Europe-wide 
communications, the Member States' total investment share of 88 % in the 
organisation, and the fact that trends towards liberalisation in other European 
countries make it feasible that a broad European base for reform could be found, 
Member States should work towards an early review of the EUTELSAT 
Convention and its Operating Agreement, in order to ensure the development of 
EUTELSAT to the fullest possible extent. 
120 
Finally, a number of promotion and harmonisation measures will be required, in 
order to facilitate the emergence of trans-European services and to ensure that 
liberalisation and harmonisation go hand in hand. 
This concerns in particular the measures in the field of mutual recognition of type 
approval, mutual recognition of licences, frequency coordination, coordination with 
regard to services to/from third countries, connection of satellite terminals to the 
terrestrial public network, and harmonisation of future transmission techniques for 
satellite broadcasting to the general public taking full account of the pivotal role of 
satellites in the introduction of a Europe-wide High Definition Television (HDTV) 
standard. 
It also concerns the promotion of the development of European standards in this 
field, as well as continuing emphasis on the full application of satellite 
communications systems in applications, and in the implementation of Community 
policies. 
The details of the proposals are summarised in the subsequent chapter. 
VI. TOWARDS A COMMON APPROACH TO THE FIELD OF 
SATELLITE COMMUNICATIONS IN THE COMMUNI1Y: 
CONCLUSIONS AND PROPOSALS 121 
In the light of the above considerations, a number of general conclusions, drawn from the 
preceding chapters, should be borne in mind. 
1. General Conclusions to be taken into account 
1. Developments in satellite technology in recent years have opened up new economic 
and social opportunities for a large range of new actors reaching far beyond the 
traditional telecommunications sector. 
Dialogue with a broad range of parties is therefore required if a balanced way 
forward is to be found: private and business users of satellite communications 
services, telecommunications and broadcasting organisations, new public and 
private service providers, telecommunications and space industry, government and 
public interests. 
2. Current regulation of earth segment and space segment in the Member States still 
reflects, in most cases, the situation in the sixties and seventies where the only 
technically and economically feasible application of satellite communications was 
their use as an additional transmission path to carry international or national long­
distance traffic for Telecommunications Organisations. 
The first generation of satellite earth stations were large installations with only one 
or a very limited number of stations per country, connected to and seen as part of 
the public telecommunications infrastructure, and giving access to the satellites of 
the International Telecommunications Satellite Organisation (INTELSAT), and 
later, also to the satellites of the International Maritime Satellite Organisation 
(INMARSA T) and the European Telecommunications Satellite Organisation 
(EUTELSAT). 
The management and operation of these large earth stations required considerable 
resources and technical know-how which was generally considered only to be 
available in the Telecommunications Organisations. 
122 
3. This situation has now changed substantially. In addition to the traditional large 
earth stations for trunk telephony and TV programme interchange, new earth 
stations are now available for specific user applications which operate with antenna 
diameters of 0.5 -2.5 meters depending on the application, and which can be 
installed under user control directly on user premises. Technological progress now 
allows substantially more diversified configurations for purposes other than simple 
alternative transmission paths to the fixed network. These configurations can be 
safely operated by service providers other than the Telecommunications 
Organisations, once appropriate regulatory safeguards have been established. 
4. The traditional applications -long-distance trunk telephony and short-term high 
band-width requirements such as studio-to-studio television transmission -still 
account for a major, though declining, proportion of international satellite services. 
Satellite links still account for nearly 60% of transatlantic telephony, though this is 
expected to fall to 30 -40% by 1995. Within Europe, satellite-carried voice 
telephony accounts for only 2 -3% of intra-European international and national 
long-distance calls. Nearly 75% of EUTELSAT's revenues are accounted for by 
television distribution. 
5. With the exception of television distribution, the role of satellites over the coming 
decade will increasingly be characterised by two fundamental usage traits: short 
term deployment, and distinct specialist niche markets. Forecasts show that while 
the provision of traditional "Fixed-Satellite Services" in Europe will continue to be 
dominated by the telecommunications and broadcasting organisations, additional 
new Europe-wide markets will develop in such fields as direct .satellite television 
broadcasting, private business services, specialised mobile services and satellite 
news gathering, if current regulatory constraints on the use of the earth segment 
and the space segment are relaxed and replaced by appropriate regulatory 
safeguards. 
6. It should be noted that while essential for Europe-wide services and Europe-wide 
coverage of businesses and consumers, forecasts project that the total of satellite 
services revenue will reach no more than 1.5 -2.5% of total telecommunications 
services revenues in Europe by the year 2000. Currently, the total revenue of all 
satellite carriers. in Europe accounts for no more than 0.4% of total 
telecommunications revenues in the European Community. 
123 
These ratios are further borne out by the experience in the United States or more 
recently in Japan which have substantially liberalised their satellite communications 
markets. In the United States, after over a decade of domestic "open sky policy", 
total satellite communications revenues account for no more than 2 -3% of total 
telecommunications revenues while liberalisation has in practice led to a 
substantially higher and more diversified development of the US space sector in 
this area. 
7. The consensus achieved at the Telecommunications Council of 7 December 1989 
has identified the regulatory safeguards which Member States may implement in 
licensing schemes in the telecommunications sector, in conformity with Community 
law and in particular competition rules. Proposed regulatory positions on satellite 
communications should build, by extension, on the rationale underlying this 
consensus, while taking full account of the specifics of the satellite communications 
sector. 
In particular, exclusive or special rights may be entrusted to telecommunications 
organisations only for the provision and operation of the terrestrial public network 
infrastructure and the public voice telephony service, and special regulatory 
safeguards may be established, within licensing schemes, for. public data 
communications services, in accordance with Community competition rules and the 
procedures established in Commission Directive 90/388/EEC101• 
Licensing schemes implementing regulatory safeguards must be based on objective 
criteria, be transparent and non-discriminatory and must introduce no constraints 
except those set out above or based on "essential requirements", i.e. network 
security and integrity and, in justified cases, interoperability and data protection. 
8. Future regulatory conditions for satellite communications must respect those 
regulatory safeguards which Member States may apply in the telecommunications 
sector in accordance with the procedures mentioned, but should not introduce any 
restrictions beyond those related to specific conditions in the field of satellite 
communications, where these can be justified in accordance with Community law -
in particular competition rules -and international commitments. 
Licensing schemes set up by Member States to implement regulatory safeguards in 
the satellite communications sector must in particular be based on objective facts, 
be proportionate to the objective sought, be transparent, and be non-discriminatory. 
101 Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 
90/388/EEC, OJ. L 192, 24.07.1990, p. 10. 
124 
9. An essential regulatory safeguard applicable to satellite communications and of 
equivalent importance to the requirement of network security and network integrity 
in the terrestrial network, is the need to avoid unacceptable interference with other 
satellite or radio communications systems, in accordance with Council Directive 
89 /336 /EEC102 concerning electromagnetic interference, and in accordance with 
the frequency coordination procedures agreed on a global basis by all members of 
the International Telecommunications Union, established in the Radio Regulations 
and administered by the International Frequency Registration Board of the 
International Telecommunications Union. 
10. Any restrictions resulting from exclusive or special rights for the provision and 
operation of the terrestrial public network infrastructure and for the public 
telephone service, as well as the special regulatory safeguards for the provision of 
public data services established by Member States in accordance with the 
procedures mentioned under 7., may relate to satellite communications systems 
only in as far as they can be considered as being equivalent to these two-way public 
service categories. 
Notwithstanding the special provisions applying to broadcasting services to the 
general public mentioned under 15., one-way services by definition do not fall into 
this category. 
11. Public voice telephone service is defined in Community legislation103,104 as the 
commercial provision for the public of direct transport of real-time speech via the 
public switched network or networks such that any user can use equipment 
connected to a network termination point to communicate with another user of 
equipment connected to another termination point. Packet-and circuit-switched 
data services is defined as the commercial provision for the public of direct 
transport of data via the public switched network or networks such that any 
equipment connected to a network termination point can communicate with 
equipment connected to another termination point. 
102 Council Directive on the approximation of the laws of Member States relating to electromagnetic 
compatibility, 89/336/EEC, 03/05/1989, OJ. L 139, 13/05/1989, p. 19. 
103 Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 
90/388/EEC, OJ. L 192, 24.07.1990, p. 10. 
104 Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications 
services through the implementation of Open Network Provision, 90/387 /EEC, OJ. L 192, 24.07.1990, p. 1. 
125 
Even large-scale two-way satellite communications systems -such as extensive 
VSAT systems -presently only comprise up to a few thousand terminals. In this 
light, two-way satellite communications systems should only be considered as public, 
if connected to the public switched terrestrial network infrastructure and 
interlinked with the public services mentioned in position 10. 
12. If a Member State would consider that very large satellite communications systems 
not connected with the terrestrial public switched network may obstruct, because of 
their competition with the telecommunications organisation, the latter's task of 
providing public telecommunications services, it would have to be demonstrat~d 
that such systems would meet definitions and criteria equivalent to those set out in 
Directive 90/388/EEC105, subject to Commission scrutiny under Treaty competition 
rules and always dependent Gn the Community interest. 
13. By analogy with the safeguards mentioned under 7., the only regulatory safeguards 
which could be included by Member States in licensing arrangements for satellite 
communications systems not connected to the public switched network are 
requirements for the avoidance of harmful interference as laid down in the Radio 
Regulations, requirements concerning data protection and the protection of privacy 
where applicable, and standards to the extent required by Community law. 
14. Given the rapid development of technology and in particular of transmission, access 
and coding techniques, any technical limitations, such as limitation on bit rates 
transmitted, are intrinsically liable to obsolescence and should not be used as 
criteria in licensing procedures. 
15. Satellite broadcasting to the general public -including both applications in terms of 
the definition used in the Radio Regulations for Broadcasting-Satellite Services, as 
well as broadcasting applications operating in the framework of Fixed-Satellite 
Services -will continue to be subject to the specific regulations set up by Member 
States in conformity with Community law, in particular Directive 89 /552/EEC106 on 
Television without Frontiers. 
105 Commission Directive of 28 June 1990 on competition in the markets for telecommunications services, 
90/388/EEC, OJ. L 192, 24.07.1990, p. 10. 
106 Council Directive on the coordination of certain provisions laid down by law, regulation or administrative 
action in Member States concerning the pursuit of television broadcasting activities, 89 /552/EEC, 
03/10/1989, O.J. L 298, 17 /10/1989, p. 23. 
126 
As set forth in COM(90)78101, transmission standards requirements in this area are 
vital in order to ensure basic interoperability. As regards Direct Broadcasting by 
Satellite applications, Directive 86/529/EEC108 has identified the MAC family of 
transmission techniques as the standard to be used. 
16. Preparation of future action concerning transmission techniques in this area should 
take account of the consideration that a major challenge for the future will be the 
harmonised introduction of a Europe-wide High Definition Television (HDTV) 
standard, in which the use of satellites will play a vital role as the initial 
transmission medium. It will also need to reflect the fact that technologiqil 
development makes it increasingly difficult to distinguish between those services 
defined as Broadcasting-Satellite Services according to the definitions used 
internationally under ITU regulations and broadcasting applications operating in 
the framework of Fixed-Satellite Services. 
There should be a co-ordinated approach towards a review of the criteria 
established by the World Administrative Radio Conference of 1977 on the 
provision of Broadcast Satellite Services. The result of this review should also be 
taken fully into account when identifying common European positions for the 
World Administrative Radio Conference of 1992. 
17. Mobile satellite services which for reasons of technology and cost will focus on 
specific user segments limited in size, do not differ substantially from other one-or 
two-way point-to-multipoint satellite communications applications and should 
therefore not be subject to any additional regulatory constraints or safeguards 
beyond those applied to Fixed-Satellite Services. In particular, any regulatory 
constraints should not prevent or hinder transborder operation. 
18. With the implementation of the regulatory safeguards regarding satellite 
communications services set out above, it will be possible to initiate the two major 
steps which are needed before the potential of the provision of satellite 
communications services by both public and private providers can be fully exploited 
in Europe: 
unrestricted provision and use of satellite earth station transmit/receive 
equipment; and 
107 Communication by the Commission to the Council and to the European Parliament on audio-visual policy, 
COM(90) 78, 21/02/1990. 
108 Council Directive on the adoption of common technical specifications of the MAC/packet family of standards 
for direct satellite television broadcasting, 86/529/EEC, 03/11/1986, OJ. L 311, p. 28. 
127 
full, equitable and non-discriminatory access by users to all providers of 
satellite space segment capacity. 
19. As regards satellite earth stations, the Green Paper on the development of the 
common market for telecommunications services and equipment stated that "given 
the trend in satellite communications towards point-to-multipoint broadcasting 
applications for closed user groups, the regulatory regime for receive-only earth 
stations (ROES) for satellite communications should be assimilated to the regime 
for telecommunications terminals and TV receive-only satellite antennas and fully 
opened to competition". 
Subsequently, Directive 88/301/EEC109 implemented this position for "receive-only 
satellite stations not connected to the public network of a Member State". 
Receive-only equipment not connected to the public switched network should be 
subject only to a requirement for an indication of compliance with suitable 
standards in the field of electromagnetic interference, no more onerous than the 
procedures applying to other radio receivers. It should not be subject to a licensing 
procedure. 
20. Transmit/receive stations should be subject to type approval and licensing 
procedures in order to ascertain conformity with the conditions as stipulated in the 
proposed draft Council Directive in this area110, and in accordance with the basic 
regulatory safeguards set out above. 
21. As regards access to space segment capacity, given the multiplication of public and 
private actors _in the satellite communications field, and the need to create a level 
playing field, the principle of separation of operational and regulatory 
responsibilities should be fully implemented. In particular, all matters with regard 
to the international frequency. coordination procedures including equitable access 
to frequencies and the geostationary orbit, should be regarded as a regulatory 
responsibility. 
109 Commission Directive of 16 May 1988 on competition in the markets in telecommunications terminal 
equipment (88/301/EEC), OJ. L 131, 27 /05/1988, p. 73. 
no (Proposal for a Council Directive on the approximation on the laws of the Member States concerning 
telecommunications terminal equipment, including the mutual recognition of their conformity, COM(89)289.) 
128 
This separation should also apply to all intergovernmental and related operating 
agreements in the field. With regard to the coordination procedures concerning 
"economic harm" potentially caused by other providers of satellite capacity, as cited 
in the intergovernmental conventions underlying the international satellite 
organisations, INfELSA T and INMARSA T, and the European 
telecommunications satellite organisation, EUTELSAT, they are unlikely, in the 
framework of a review of these procedures by the Commission, to withstand the 
test of Community competition rules on the basis of the principles set out in the 
Commission guide-lines on the application of these rules to the telecommunications 
sector.111 
22. The best solution -and the only one which would seem suitable to avoid distorsion 
of competition and to allow full use and best allocation of the existing international, 
national and private space segment -would be for Member States to take the 
necessary steps to ensure that users obtain direct access to space segment capacity, 
and for providers of this space segment to obtain the right to market space segment 
capacity directly to users. 
Member States should eliminate existing restrictions in order to ensure that the 
principle of direct access by all users on equitable and non-discriminatory terms to 
all providers of space segment capacity be fully implemented. 
23. The European Telecommunications Satellite Organisation, EUTELSAT, should 
obtain full commercial freedom to market its services in Europe, in order to give it 
equal opportunity with other space segment providers and to avoid undue market 
sharing agreements which may result from exclusive resale of space segment 
capacity via its signatories. 
24. Tariffs charged to users for making space segment capacity available should follow 
the overall principle of cost orientation and be in compliance with competition rules 
according to the principles set out in the Commission guide-lines mentioned above. 
2. Proposed positions 
Taking account of these conclusions and the preceding analysis, four major changes 
of the regulatory environment seem necessary, in order to exploit fully the potential of 
satellite communications for Europe: 
111 To be published 
129 
FULL LIBERALISATION OF THE EARTH SEGMENT, INCLUDING THE 
ABOLITION OF ALL EXCLUSIVE OR SPECIAL RIGHTS IN THIS AREA, 
including both 
receive-only terminals, subject to appropriate type approval procedur_es 
when connected to the public switched network; and 
transmit/receive terminals, subject to appropriate type approval and 
licensing procedures where justified to implement necessary regulatory 
safeguards; 
FREE (UNRESTRICTED) ACCESS TO SPACE SEGMENT CAPACITY, 
subject to licensing procedures, in order to safeguard exclusive or special rights or 
regulatory provisions set up by Member States in conformity with Community law 
and based on the consensus achieved in Community telecommunications policy. 
Access should be on an equitable, non-discriminatory and cost-oriented basis. 
FULL COMMERCIAL FREEDOM FOR SPACE SEGMENT PROVIDERS, 
including direct marketing of satellite capacity to service providers and users, 
subject to compliance with the licensing procedures mentioned above and in 
conformity with Community law, in particular competition rules. 
HARMONISATION MEASURES AS FAR AS REQUIRED TO FACILITATE 
THE PROVISION AND USE OF EUROPE-WIDE SERVICES 
This concerns in particular the mutual recognition of licensing and type approval 
procedures, frequency coordination and matters related to coordination of services 
provided to and from countries outside the Community. 
The proposed positions resulting from these considerations, are summarised in Box I. The 
Commission also proposes the measures set out under sections 3. and 4. in order to create 
a harmonised environment for the implementation of the proposals. 
130 
BOXl 
The positions set out below aim at creating an optimal environment for the full use of 
satellite communications for Europe-wide systems and services, to the benefit of the 
European user, European industry and the European economy in general, while 
recognising necessary regulatory safeguards established in accordance with the 
consensus achieved in the framework of Community telecommunications policy at the 
Council meeting of 7 December 1989 -especially with regard to keeping the balance , 
between harmonisation and liberalisation -in conformity with Community law, and in 
the light of the international commitments of the Member States. 
Earth Segment 
1. Entertainment broadcast (TV) satellite reception terminals should not be 
subject to licensing or restrictions on their supply, installation, ownership, 
operation and maintenance. 
Receive-only satellite telecommunic~tions terminals should not be subject to 
licensing or restrictions on their supply, installation, ownership, operation and 
maintenance. 
All transmit/receive terminals may be subject only to type approval and their 
operation subject to licensing. 
2. Network control earth stations (hub stations) of satellite terminal networks 
may be operated under a licence. Interconnection with the public network 
should be allowed by this licence, subject to the conditions set out under 4. 
Connection to the public network must be equitable, non-discriminatory and 
cost-oriented. 
A hub station operator or service provider licenced by a Member State should 
not have to negotiate landing rights in other Member States since the reception 
of his or her services would automatically be authorised throughout the 
Community under Article 59 of the Treaty, subject only to non-discriminatory 
requirements that are justified by the general interest, as defined in point 4, in 
conformity with Community law. 
3. A European Telecommunications Standard, geared to ensuring the limitation of 
potential interference to an acceptable level should be prepared to facilitate 
mutual recogniti~n of type approval of transmit/receive terminals. Equipment 
constructed in accordance with such a standard should automatically be 
considered to fulfil the requirements concerning the avoidance of harmful 
interference, subject to the completion of the appropriate frequency 
coordination procedures. 
131 
BOXl 
A Directive for the mutual recognition of type approval procedures should be 
proposed for transmit/receive terminals, including the conditions for their 
installation, maintenance and operation. 
This Directive would also apply to receive-only terminals connected to the 
public switched network. 
Receive-only terminals not connected to the public switched network should not 
. be subject to type approval, but may be subject to a requirement for an 
indication of compliance with suitable standards in the field of electromagnetic , 
interference; possible measures aimed at avoiding the risk of fraud or of traffic 
interception shall not be more onerous than the procedures applying to other 
radio-receivers. 
4. Licensing conditions must be justified, be proportionate to the objective sought, 
be transparent and non-discriminatory, and must fully respect the principle of 
the separation of regulatory and operational functions. 
Licensing conditions for the operation of transmit/receive terminals not 
connected to the public switched network may include no other regulatory 
safeguards than those needed in order to guarantee the avoidance of harmful 
interference; requirements concerning data protection and the protection of 
privacy in justified cases; and standards to the extent required by Community 
law. 
Licensing conditions for the operation of hub stations and other terminals 
connected to the public switched network may include, in addition, regulatory 
safeguards to ensure compliance with restrictions resulting from exclusive or 
special rights for the provision of the public telephony service, as well as the 
special conditions and licensing schemes for the provision of public data 
services established by Member States in accordance with the principles set out 
in Directive 90/388/EEC on competition in the markets for telecommunications 
services. 
Where very large satelllite communication systems not connected with the 
terrestrial public switched network may obstruct the operation of services of 
general economic interest with which telecommunications organisations are 
entrusted, the regulatory safeguards described in the former paragraph may be 
applied to these systems subject to Commission scutiny under Treaty 
competition rules. 
No other restrictions than those provided for by the licensing conditions should 
apply. 
A Directive for a Community scheme for the mutual recognition of licences 
should be proposed, laying down, inter alia, the conditions for the issuing of 
operating licences for terminal networks, installation and maintenance 
organisations, and hub-stations operators, including the Community-wide 
operation of such systems under a single class licence in the case of operation in 
exclusive frequency bands. 
132 
BOXl 
For hub-stations, operation should be subject to the signature of an operating 
agreement with the relevant space segment operator. This agreement should 
only include provisions aimed at ensuring the proper functioning of the satellite 
system and should be based on objective, transparent and non-discriminatory 
criteria. 
Space Segment 
5. The principle of the separation of regulatory and operational functions should 
be fully implemented with regard to access to and control of the space segment. 
All matters concerning equitable access to frequencies and the orbital resource 
should be treated in a similar fashion. 
In addressing these aspects, and in the framework of this Green Paper, Member 
States should ensure objective, transparent and non-discriminatory procedures, 
in particular with regard to the procedures concerning required co-ordination 
established within the radio regulations and administered by the International 
Frequency Registration Board of the International Telecommunications Union. 
6. Coordination procedures concerning "economic harm" by other providers of 
space segment capacity currently foreseen in the intergovernmental conventions 
underlying the international satellite organisations, INTELSAT and 
INMARSAT, and the European Telecommunications Satellite Organisation, 
EUTELSAT, should be reviewed in order to avoid discrimination between 
economic operators offering space segment, taking full account of the 
obligations of Member States and operators under Community competition 
rules. 
Such a review should take account of the international obligations of the 
Community and the Member States in the light of Community law and the 
requirement to safeguard a balanced development of satellite communications 
world-wide, in particular with regard to the developing countries. 
Member States should support actions to render the "technical coordination" 
procedures foreseen by the intergovernmental conventions less cumbersome; 
7. Users should be able to obtain better access to space segment capacity. For this 
purpose, it will be necessary to determine how to attain rapidly an open access, 
taking into account the international commitments of the Member States and 
Community law. 
At this stage of the analyses, the Commission considers that the solution which 
seems most suitable to avoid distortions of competition and to allow full use and 
best allocation of the existing space 'Segment could be to give users direct access 
to space segment capacity, including signal transmission towards the satellite, 
subject to compliance with the licensing conditions defined under 4. above ; 
133 
BOXI 
and then to give space segment providers the right to market space segment 
capacity directly to users. 
This should concern, inter alia, the following services: 
private networks not connected to the public switched telephone 
network for services including interactive voice; 
private networks for data transmission services and specialised 
business communications; 
the provision of direct-to-home satellite television services. 
In respect of the European Telecommunications Satellite organisation 
EUTELSAT, the objective to he attained is to allow it to obtain full commercial 
freedom to market its services across the Community. 
In the pursuit of this objective Member States -for both the space segment 
providers registered under their own national responsibility and for those 
systems established in accordance with the relevant international 
intergovernmental conventions -should ensure that the principle of direct 
access by users to all providers of space segment on equitable and non­
discriminatory terms be fully implemented. 
A first solution, already experienced in the Community, has been that 
signatories of this organisation have opened, under control of the competent 
regulatory authorities, an office for access to its capacity by operators of the 
earth segment in the Community. 
8. Tariffs charged to users for making space segment capacity available should 
follow the overall principle of cost-orientation. 
9. The procedures concerning the implementation of the objectives set out in S., 6., 
7. and 8. must be carried out by Member States in compliance with their 
obligations under Community law, in particular competition rules. 
10. Mobile and position-fixing satellite services do not differ substantially from 
other two-way point-to-multipoint satellite communications applications and 
should therefore not be subject to regulatory constraints or safeguards other 
than those set out under 4. 
11. Mobile terminal systems should be governed by the equivalent rules for fixed 
service receive-only, or transmit and receive, terminal systems in terms of type. 
approval of terminals and licensing. 
134 
BOXl 
12. The Directive for a Community scheme for the mutual recognition of licensing 
mentioned under 4. should make special provision for the unrestricted 
movement of mobile terminals throughout the Community and of the mutual 
recognition of licences for this purpose. 
13. Satellite broadcasting to the general public -including both applications in 
terms of the definition used in the Radio Regulations for Broadcasting-Satellite 
Services, as well as broadcasting applications operating in the framework of the 
Fixed-Satellite Services -will continue to be subject to the specific regulations 
set up by Member States in conformity with Community law, as defined in 
particular in Directive 89/552/EEC on the coordination of certain provisions 
laid down by law, regulation or administrative action in Member States 
concerning the pursuit of television broadcasting activities. 
14. Transmission standards requirements in this area are vital to ensure basic 
interoperability. As regards direct broadcasting applications, Directive 
86/529 /EEC has identified the MAC family of transmission techniques as the 
standard to be used. 
The development of concepts for the next generation direct Broadcasting­
Satellites should ensure compatibility with ongoing activities in the field of 
High Definition Television (HD1V) and its Europe-wide harmonised 
introduction. This should be taken into account in future actions regarding 
transmission techniques in this area, particularly in the actions succeeding the 
current MAC-packet Directive mentioned above, which expires on 31 December 
1991. 
In pursuing the implementation of these proposals, and the lifting of existing 
restrictions, the Commission will apply the competition rules of the Treaty to their full 
extent. 
135 
3. Measures for Facilitating Trans-European Services 
In order to implement the above proposed positions in a harmonised way, the Commission 
foresees that a number of Community measures will be required: 
MUTUAL RECOGNITION OF TYPE APPROVAL FOR SATELLITE 
COMMUNICATIONS TERMINAL EQUIPMENT, 
extending the coverage of the Directive on the approximation on the laws of the 
Member States concerning telecommunications terminal equipment, including the 
mutual recognition of their conformity, currently under discussion, to include all 
transmit/receive satellite earth stations, and to include receive-only satellite earth 
stations connected to the public switched network as far as required. 
A COMMUNITY SCHEME CONCERNING THE MUTUAL RECOGNITION 
OF LICENCES FOR SATELLITE TERMINAL NETWORKS, 
laying down, inter alia, the conditions for the Community-wide operation of 
terminal networks and possible conditions regulating hub station operations. 
A Directive in this area would be based on the positions set out and should 
facilitate the establishment of two-way networks across the Community by, inter 
alia, providing for class licences for networks operating within frequency bands 
designated with priority to Community-wide satellite applications. These class 
licences should give the possibility of operating, e.g., VSAT networks throughout 
the Community under a single licence, without any need of filrther licensing or 
frequency coordination for the individual participating satellite terminals in the 
Member States. Networks operating within non-exclusive frequency bands should 
be licenced with a minimum of obligatory procedures for frequency coordination. 
STRENGTHENED FREQUENCY COORDINATION RELATED TO 
SATELLITE COMMUNICATIONS, 
136 
in order to support Community-wide licensing, building on the current reform of 
the European Radiocommunications Committee and the establishment of the 
European Radiocommunications Office, set up by the European Conference of 
Postal and Telecommunications Administrations, and taking full ac.count of the 
coordination procedures for frequencies and procedures for equitable access to the 
geostationary orbit globally agreed and established within the Radio Regulations 
and administered by the International Frequency Registration Board of the 
International Telecommunications Union. 
A Decision in this area should 
facilitate frequency coordination in this field between Member States in all 
cases where this becomes necessary, taking account of international 
coordination procedures, and development of the Community satellite 
services environment; 
coordinate Community positions with regard to the World Administrative 
Radio Conferences on frequencies and orbital allocation matters; 
create the mechanism for designating, based on the international Radio 
Regulations and the recommendations of the European 
Radiocommunications Committee, certain bands with priority to 
Community-wide satellite applications, such as needed for the easy 
operation of class licences as set out above, subject to the completion of the 
international frequency coordination procedures; 
STRENGTHENED COORDINATION OF MEMBER STATES WITH 
REGARD TO SERVICES TO/FROM NON-COMMUNITY COUNTRIES, 
in order to develop common procedures with regard to these services, building on 
the general principles which are in the course of being defined within the 
framework of the overall GA TI services agreement currently under negotiation. 
SPECIFIC DEFINITION OF OPEN NETWORK PROVISION (ONP) 
CONCERNING THE CONNECTION OF SATELLITE TERMINAL 
NETWORKS 
137 
to the terrestrial public network infrastructure, subject to the constrain~s and 
regulatory safeguards set out in the proposed positions, in order to provide Europe­
wide harmonised interfaces between satellite systems and the public network 
infrastructure, based on the principles of equitable, non-discriminatory and cost­
oriented access. 
This would extend the coverage of Open Network Provision to satellite 
communications networks and would therefore substantially faci1 itate the effective 
operation of the Community-wide licensing scheme set out above. 
HARMONISATION OF IDE1'4TIFIED FUTURE TRANSMISSION 
TECHNIQUES FOR SATELLITC: BROADCASTING TO TIIE GENERAL 
PUBLIC, 
to succeed Directive 86/529/EEC, as referred to m the Commission's 
communication on audio-visual policy of 21February1990. 
Preparation of future action conc~rning transmission techniques in this area should 
take into account that a major immediate challenge is the harmonised introduction 
of a Europe-wide High Definition Television (HDTV) standard, in which the use of 
satellites will play a vital role as the initial transmission medium. It will also need to 
reflect the fact that technological development makes it increasingly difficult to 
distinguish between those services defined as Broadcasting-Satellite .)ervices 
according to the definitions used internationally under ITU regulations, and 
broadcasting applications operating in the framework of the Fixed-Satellite Service. 
There should be a co-ordinated approach towards a review of the plan criteria 
established by the World Administrative Radio Conference of 1977 on the 
provision of the Broadcasting-Satellite Service. The result of this review should also 
be taken fully into account when identifying common European positions for the 
World Administrative Radio Conference of 1992. 
4. Lines of Action for Creating a Favourable Environment 
A number of longer term action lines will have to be initiated, in order to create the 
environment for the full implementation of the proposed positions set out. 
138 
This concerns in particular changes which may be needed in the international environment 
of satellite communications; the production of standards; and the promotion of the full use 
of satellite technology by providers and Telecommunications Organisations, in order to 
create a strong European position in this area. 
It is proposed to initiate the following lines of action: 
1. WORKING TOWARDS A REVIEW OF THE EUTELSAT CONVENTION 
AND ITS OPERATING AGREEMENT, 
as far as required to implement the proposed positions set out above. 
Major issues in this context are: 
necessary modifications to ensure direct access for users to EUTELSAT 
satellite capacity; 
future handling of the coordination procedure concerning the "economic 
harm" provision of the EUTELSAT convention; 
future handling of the technical coordination procedures as foreseen in the 
EUTELSAT convention; 
necessary measures for implementing future commercial independence of 
EUTELSAT; 
mechanisms for ensuring cost-orientation of tariffs charged to users; 
implementation of the separation of regulatory and operational interests 
and opening of membership of the EUTELSAT consortium to new parties. 
Their total investment share of 88% in the EUTELSAT organisation means that 
Member States must share the responsibility for redirection and adjustment of the 
EUTELSAT Convention and operating agreement in order to ensure development 
of the potential of EUTELSAT to the fullest possible extent, in line with the goals 
of the Single Market. 
2. DEFINING A COMMON POSITION IN THE INTERNATIONAL FORA 
RELATED TO SATELLITE COMMUNICATIONS. IN PARTICULAR WITH 
REGARD TO INTELSAT AND INMARSAT 
139 
The INTELSAT and INMARSA T conventions imply substantial international 
commitments for the Member States. With 28% and 34% investment shares in 
INTELSAT and INMARSAT respectively, Member States play an influential role 
in these global satellite organisations. 
While changes as far as required by the proposed positions set out may therefore 
take time and have to depend on the evolving global environment, a number of 
steps could be taken: 
-· Member States must, as regards their own representation, apply strictly the 
principle of separation of regulatory and operational functions; 
Member States should support INTELSAT proposals underway and aimed 
at rationalising the economic harm coordination procedures; 
Member States should also support actions to render technical coordination 
procedures less cumbersome; 
Member States should facilitate access to both organisations via the 
signatories and pay special attention to the implementation of the principle 
of the cost-orientation of tariffs; 
Member States should work jointly within the two organisations with regard 
to any further changes required by the proposed positions, taking account of 
the need for a balanced world-wide development of satellite 
communications and the special requirements of the developing countries. 
3. ACCELERATING STANDARDISATION WORK IN THE EUROPEAN 
TELECOMMUNICATIONS STANDARDS INSTITUTE WITH REGARD TO 
SATELLITE COMMUNICATIONS EQUIPMENT 
ETSI has allocated with the creation of a special technical committee (TC-SES -
Satellite Earth Stations) and the definition of a multi-annual work programme high 
priority to this area. 
In particular for the earth station equipment sector, standards are indispensable for 
the effective implementation of the mutual recognition of type approval and 
licensing of one-way and two-way satellite systems. The Commission intends to give 
high priority to this area in its working relations with ETSI. 
4. PROMOTING THE FULL USE OF SATELLITE TECHNOLOGY IN 
APPLICATIONS. BY SERVICE PROVIDERS AND BY 
TELECOMMUNICATIONS ORGANISATIONS, 140 
in particular with regard to services for the less-favoured regions and the countries 
of Central and Eastern Europe which are now integrating themselves into the 
European telecommunications area. 
Satellites will retain their basic advant~ges with regard to terrestrial 
telecommunications: thin-route service and rapid deployment, as well as immediate 
large-area coverage for one-way applications. 
The Commission proposes as major objectives: 
Full use of the technological potential of the European Space Agency, in 
order to develop satellite technologies further for both private and public 
applications; 
Full application of satellite communication systems in the implementation 
of Community policies. 
This concerns in particular the use of advanced telecommunications for 
regional development. Through its STAR programme, the Commission has 
given financial support for the setting up of major satellite ground stations 
and business services terminals for transmission links. 
It also concerns the Community policies for education and training, 
transport and fishing and for the developing countries. 
Full attention to the role of satellites in the context of the future 
development of telecommunications in the Community, in particular as 
regards Europe-wide services, as well as for the development of Integrated 
Broadband Communications (IBC). 
Antenna: 
Assignment: 
Broadcasting-Satellite Service(BSS): 
Community Access Television (CA1V) 
or "cable 1V": 
C-band: 
CCIR: 
CCIIT: 
CEPT: 
DBS: 141 
GLOSSARY 
a device for transmitting and/ or receiving radio signals. In earth station 
terminals, it usually takes the form of a parabolic reflector. Antenna 
diameters of television reception are typically in the order of 60-120 cm, 
while for transmit and/or receive private business terminals the 
diameters range from 60-250 cm. Antennas for satellite earth stations for 
trunk telephony and TV uplinking typically have diameters of 8-20 
meters. 
of a radio frequency or radio frequency channel: authorisation given by 
an administration for use of a particular radio frequency or radio ' 
frequency channel and under specified conditions. See Article 1. of the 
Radio Reg1.1latio11s foe the definitive terminology. 
the transmission and reception via satellite of signals which are intended 
for direct reception by the general public. 
the distribution of television signals from a central antenna or 
"head-end", to subscribers' homes over a coaxial cable network. The 
"head-end" may receive signals from either a satellite or a terrestrial 
radio transmission system. Satellite signals received at a cable head-end 
would normally use the Fixed-Satellite Service frequency bands. 
frequency bands around 4 Gigahertz and 6 Gigahertz (GHz) used for 
the Fixed-Satellite service. The higher frequencies, around 6 GHz, are 
used for the "uplink" (from earth to space) and the lower frequencies, 
around 4 GHz, are used for the "downlink" (from space to earth). 
lntemational Radio Consultative Committee, one of the two main 
consultative committees of the bttematio11al Telecommunications Union 
(ITU). The CCIR is responsible for the study of technical and operating 
questions on radio communications and for the ~ue of relevant 
recommendations. 
Intemational Telegraph and Telephone Consultativt! Committee, one of 
the two main consultative committees of the International 
Telecommunications Union. The CCITI provides a forum where 
telecommunications authorities can agree inter alia on world-wide 
technical and operational recommendations. 
Eumpean Conference of Postal and Telecommunications Administrations. 
Direct Bmaclcasting by Satellite. The distribution of signals, usually 
television but possibly also sound and data, directly to a satellite receiver 
at the customer's premises (rather than, for example, to a CATV system) 
via a satellite using the Broadcasting-Satellite Service frequency bands. 
The same service can also be carried out via a satellite using the Fixed­
Satellite Service frequency bands, in which case it is referred to as the 
Direct To Home (DTH) service. 
Downlink: 
Earth Segment: 
Earth Station: 
ESA: 
EUTELSAT: 
Fixed-Satellite Service (FSS): 
Footplint: 
Geostationary satellite: 
GigaHertz (GHz): 142 
the space-to-earth transmission path, i.e. the radio link from the 
transmitting satellite to the receiving satellite earth station. The 
downlink originates from the transmitting antenna on board the satellite, 
from which the beam spreads out to cover a certain zone on the earth's 
surface (see "footprint"). While the coverage zone can be shaped to a 
certain extent, it cannot follow a country's border exactly and so there is 
inevitably a eertain amount of unwanted coverage or "overspill". 
the part of a satellite communications network formed by the satellite 
earth stations. 
Refer to Satellite Temiinal. 
European Space Agency, the major European organisation to carry out 
research and technological development on space-related subjects, 
including satellite telecommunications. 
European Telecommunications Satellite Organisation. The terms of the 
agreement are defined in the EUTELSAT Convention and a 
complementary agreement called the EUTELSAT Operating 
Agreement. The combined investment share of Community Member 
States is 88 %. 
a radiocommunication service between satellite terminals at specific 
fixed points using one or more satellites. This service may include 
satellite-to-satellite links or feeder links for other space 
radiocommunications services such as the mobile-satellite se1Vice or the 
Broadcasting-Satellite se1vice. 
the area within which the power received on earth from a satellite 
downlink beam equals or exceeds a certain level. A satellite may carry 
several different downlink antennas and therefore have several different 
footprints. The aim of the satellite designers is generally to concentrate 
the satellite's power where it will be most useful, i.e. in the desired 
coverage zone, but this can only be done approximately so inevitably 
some power will be misdirected and may overspill into neighbouring 
areas. 
a satellite whose period of revolution is equal to the period of rotation 
of the earth about its axis and whose orbit lies in the plane of the earth's 
equator. Such a satellite will be in orbit about 36,000 km above the 
equator but will appear approximately fDCed relative to the earth. The 
ability to place satellites in geostationary orbit was crucial to the 
development of satellite communications as it enabled large, fDCed earth 
stations to be used with minimal "tracking" or repointing of the antenna 
to follow the satellite on its apparent path through the sky. Most 
communications satellites are in geostationary orbit. 
a frequency equal to one thousand million Hertz or cycles per second. 
The Hertz is the basic unit of frequency, which is used to measure how 
many times in a second an electromagnetic wave completes its full cycle 
from its positive to its negative pole and back again. 
HD1V: 
High-power satellite: 
IFRB: 
INMARSAT: 
INTELSAT: 
ITU: 
K-band: 
Ka-band: 143 
High Definition Television, the transmission and reception of a higher­
quality television picture than is currently available. Normal television 
pictures have an "aspect ratio" (the ratio of picture width to picture 
height) of 4:3, and a maximum of 625 lines of picture information. High 
definition television will have a wider aspect ratio (16:9) and 1250 lines 
of information, giving a picture quality closer to cinema standards. 
usually a satellite operating in the Broadcasting-Satellite service (BSS) 
frequency bands, providing direct broadcasting services to user receiving 
antennas of small size (down to 50-60 cm). The high power in each 
individual channel transmitted tends to limit the number of channels 
which can be provided over a high-power satellite, in some cases to as 
low as five. 
Intemationa/ Frequency Registration Board. A permanent organ of the' 
Intemational Telecommunications Union effecting orderly recording of 
frequency assignments and orbital positions assigned to geo-stationary 
satellites. 
The duties of the IFRB are enumerated in Article 10(5) of the ITU 
Constitution and concern in particular "to furnish advice to Members 
with a view to the operation of the maximum practicable number of 
radio channels in those portions of the spectrum where harmful 
interference may occur", as well as "to perform any additional duties, 
concerned with the assignment and utilisation of frequencies and with 
the equitable utilisation of the geostationary-satellite orbit ... ". 
The Intemational Man'time Satellite Organisation. The terms of the 
agreement are defined in the INMARSAT Convention. The 
Community Member States have a total investment share of 34 %. 
The /111ema1io11al Teleco111municatio11s Satellite Organisatio11. The terms 
of the agreement are defined in the INTELSAT Convention, 
supplemented by an Operating Agreement. The Community Member 
States have a total investment share of 28 %. 
/ntemational Teleco111111u11icatio11s U11ion, the United Nations' specialised 
agency for telecommunications. The ITU holds periodic conferences at 
which telecommunications issues of global importance are discussed; the 
main conferences are the World Administrative Radio Conference 
(WARC) and the World Administrative Telephone and Telegraph 
Conference (WATIC). The ITU also has a number of permanent 
organs including the /FRB, CCIR and CCJTT. 
the generic name for all frequencies in the range 10 to 36 GHz. Under 
the Radio Regulations (see ITU) this range is divided into many sub­
ranges which are variously allocated to both terrestrial and satellite 
services. 
the upper portion of the K-band, from approximately 17 to 31 GHz. This 
band is not yet used commercially. Some frequencies in this range are 
being examined for future satellite use. 
Ku-band: 
Land mobile-satellite service: 
MAC: 
Maritime mobile-satellite se1Vice: 
MA1V: 
Medium-power satellite: 
MSS: 
Point-to-point: 
Point-to-multipoint: 144 
the lower portion of the K-band, from approximately 10 GHz to 19GHz. 
Where satellite communications are concerned, Ku-band generally refers 
to the frequencies around llGHz (for "downlink" or space-to-earth 
transmissions) and 14GHz (for "uplink" or earth-to-space transmissions) 
allocated to the fixed and Broadcasting-Satellite setvices. 
A radiocommunication service between mobile earth stations located on 
land and one or more satellites, or between mobile earth stations based 
on land by means of one or more satellites. 
Multiplexed Analogue Components, a method of transmitting television 
images whereby the separate components of a TV picture (sound, 
chrominance and luminance) are transmitted in analogue form but in 
different time-slots of a "time-division multiplexed" signal. The MAC 
family of standards is referred to in Council Directive 86/529/EEC. ' 
A radiocommunication service between coast earth stations and earth 
stations located on board ships, or between earth stations Jocated on 
board ships; survival craft stations and emergency position-indicating 
radio beacon stations may also participate in this service. 
MasterA11te1111a Television, a system in which a single, central antenna is 
used to receive television signals, either from a terrestrial 
radiocommunication system or from a satellite. The television signals are 
then distributed via coaxial cable to a closed group of users, for example, 
to individual apartments in an apartment block or to rooms in a hotel. 
generally a satellite with a large number (25 -30) channels, but which 
transmits less power in each channel than a high-power satellite. 
Medium-power satellites were originally intended for point-to-point 
telephony and television distribution to the head-ends of cable TV 
systems, bul with improved antenna technology and receiver sensitivity it 
has also proved possible to use them for television distribution direct-to­
home with antennas of reasonable size (0.8 -1.2m) throughout much of 
Europe. 
Mobile-Satellite Se1vice. A radiocommunications 'service between 
mobile-satellite earth stations and one or more satellites. 
one-way or two-way communications between two points only. The 
services which use satellites for point-to-point communications include 
voice transmission, high-speed data links and television distribution to 
cable head-ends. 
one-way or two-way communications from a central point to a number of 
subsidiary points, and vice versa. One-way point-to-multipoint 
applications for satellites include data broadcasting and television 
transmission direct to users' premises; two-way point-to-multipoint 
applications include data networks with a return path and interactive 
distance learning methods. In two-way point-to-multipoint networks 
there is frequently an asymmetry in the data flow, in that more 
information flows from the central station to the peripheral stations than 
in the opposite direction. 
Radio Regulations: 
Satellite seivices provider: 
Satellite tenninal: 
Space segment: 
Space segment capacity: 
Space segment provider: 
Telecommunications Organisations: 
Transponder. 
Uplink: 145 
The Radio Regulations are agreed by the ITU World Administrative 
Radio Conferences. 
Article 11 of the Radio Regulations deals with the proposed 
establishment of a satellite system, Articles 12 and 13 with the 
notification procedures (and Article 15 with coordination of BSS band 
use and Article lSA with FSS band use); Chapter V. deals with 
interference. 
Article 1 of the Radio Regulations also provide definitions such as 
allocation, allotment and assignment of a radio frequency or a radio 
frequency channel. 
Provider of a radiocommunications service via space segment capacity. 
Also referred to as earth station. A station located on the earth's 
surface and intended for communication with one or more terminals of 
the same kind by means o.f a satellite; the terminal consists of one or 
more transmitters or receivers or a combination of transmitters and 
receivers, including the accessory equipment, necessary at one location 
for carrying on a radiocommunication service. 
The part of a satellite system formed by the satellite or satellites. 
Transmission capacity available in a satellite system normally relating to 
the power and number of satellites. 
Operator providing space segment. 
Space segment providers are the international telecommunications 
satellite organisations as well as national and private operators. 
Defined according to Council Directive 90/388/EEC as the public or 
private bodies, to which a Member State grants special or exclusive 
rights for the provision of a public telecommunications network and, 
where applicable, public telecommunications services. Also referred to 
as ''Telecommunications Administrations". 
the part of a communications satellite which receives a signal from an 
earth station, shifts it from the uplink frequency to the downlink 
frequency, amplifies it and retransmits it to another earth station or 
stations. The signal is redirected back to earth in a broad wide-area 
coverage. Medium-power satellites generally can have up to 30 
transponders; high-power satellites have fewer. The new generation of 
INTELSAT satellites, said to be the largest and most complex ever built, 
have a total of 48 transponders; the first of these satellites was launched 
in October 1989. A single transponder can normally carry one television 
channel, or up to about 1700 telephone bearer cirruits. 
the earth-to-space transmission path, i.e. transmitting a signal from a 
satellite terminal to a satellite. 
Vide~onferencing: 
VSAT: 
WARC: 146 
a service which links two or more locations through live video and audio 
transmissions. Its main users are the business community, since it can to 
some extent replace face-to-face meetings and reduce company travel 
costs. Some companies install private videoconferencing studios in their 
own premises, while others use "public" videoconferencing rooms rented 
out by the telecommunications organisations. Besides live images (which 
are generally below television standard), the videoconferencing link can 
also provide data, facsimile and graphics transmission. 
Ve1y Small Ape11ure Tenninal. Refers to small earth stations, usually with 
antenna diameter below 2.Sm, which can be installed at a user's own 
premises and used for one-way or two-way private communications. Also 
known as microstations. 
the World Administrative Radio Conference. WARC is one of the main 
conferences of the ITU (q.v.). It meets to determine international radio 
communications standards and policy. WARC meetings are of particular 
importance to satellite communications because it is there that the 
Radio Regulations, which determine which frequency bands may be used 
for a particular service (e.g. Fixed-Satellite service, broadcast satellite 
service, mobile satellite service, etc.) are agreed upon. Special WARG 
meetings also agree_ upon the international allocation of positions in the 
geostationary orbit, which, like the frequency spectrum, is regarded as a 
shared global resource. 

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