it * COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 31.07.1996 
COM(96) 342 final 
95/0282 (COD) 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on a common framework for general authorizations and individual licences 
in the field of telecommunications services 
(presented by the Commission pursuant to Article 189 a (2) 
of the EC-Treaty) 

EXPLANATORY MEMORANDUM 
The Commission hereby presents a modified proposal for a European Parliament and Council 
Directive on a common framework for general authorizations and individual licences in the field of 
telecommunications services. The modified proposal incorporates those amendments proposed by 
the European Parliament at First Reading which were accepted by the Commission. 
1. Introduction 
a) Background 
The Commission adopted its proposal on 14.11.95, and it was formally transmitted to the European 
Parliament and the Council on 30.1.96*. 
The Economic and Social Committee gave a favourable Opinion on 24.4.962. The European 
Parliament adopted a favourable Resolution at its First Reading on 22.5.96, and proposed 37 
amendments to the Commission's proposal3. 
b) Purpose of the Directive 
By 1 January 1998 full competition is to be introduced in most Member States in the provision of 
telecommunications services and network infrastructures. The proposed directive will allow 
undertakings to benefit from a Union-wide market for telecommunications and as such is an 
important part of the new regulatory environment supporting telecommunications liberalization. 
While more competition is to be introduced in the telecommunications sector, authorizations 
regimes remain necessary in order to ensure that certain public interest objectives are attained, 
including the provision of universal service. At the same time, national regulatory frameworks must 
be competition-friendly, and priority must be given to light authorisations schemes. In that context, 
the proposed directive will lay down a common framework for national authorizations regimes and 
provide for mechanisms aimed at facilitating the provision of cross-border networks and services. 
1 O.J. C 90, 27 03.%, page 5 
2 CHS/530 ofl 996 
3 A4-142/96, PV 12905 
2. EP amendments accepted by the Commission 
Of the 37 amendments adopted by the European Parliament at first Reading, the Commission 
accepted 23 in full, 2 in part and 1 in principle, making a total of 26. 
Amendments accepted in full 4, 5, 6, 7, 9, 11, 12, 13, 14, 15, 16, 17, 
18, 19, 21, 23, 24, 28, 30, 31, 32, 33, 34 
Amendments accepted in part 2, 20 
Amendment accepted in principle 22 
The Commission accepted those amendments which : 
increase the transparency of the proposed regulatory framework for 
authorizations, 
improve the clarity of the text, in particular with regard to its scope, 
offer better guarantees to new entrants, 
introduce flexibility in the procedures for the granting of authorizations and the 
conditions attached to authorizations, 
support the need to review in the future the balance between regulation at the 
European level and at the national level, including the possibility of a European 
Regulatory Authority for telecommunications after 1998 
are consistent with other EU legislation. 
3. Amendments not accepted by the Commission 
The Commission has not accepted 11 of the 37 amendments (and part of 2 other amendments) 
proposed by the European Parliament. The reasons are given below. 
National regulatory authorities 
(Amendments 1 and 8) 
The Commission shares the concerns of the European Parliament regarding the requirement for 
effective and independent national regulatory authorities, playing an active role in the development 
of competition and able to ensure appropriate implementation of EU legislation (and of this 
Directive) at national level. For this reason, the Commission has included a new provision on the 
independence of national regulatory authorities in the proposed Directive on the adaptation of the 
ONP Framework Directive to a competitive environment (COM (95) 543). It is therefore not 
necessary to duplicate that provision in this Directive. 
Limitation of the facilitation of entry by new operators 
(Amendment 3) 
The Directive does not provide for specific interventions favouring new entrants but introduces 
climate which is conducive to new entry in general. 
It does not appear desirable to limit the benefit of this approach to certain categories of new 
entrants ; this would introduce discrimination against certain categories of new entrants which 
would be difficult to justify. 
Incumbent operators are likely to remain dominant because availability of alternative networks is 
far from being widespread and therefore the need for facilitation of new entry should not be 
obviated. 
Consistency with the proposed Directive on Interconnection 
(amendments 2 [reference to number portability] and 10) 
It is important to ensure consistency between the different texts which are currently elaborated and 
discussed and which will form the regulatory package for the liberalisation of telecommunications 
by 1998. Both amendments would be in contradiction with the proposed Directive on 
Interconnection. The EP has expressed an opinion on this text during its February 1996 plenary 
session. The Council has reached on it a Common Position during the Telecommunications Council 
of March 1996. 
As far as the reference to number portability in Amendment 2 is concerned, the European 
Parliament, in its Opinion on the proposed directive on Interconnection, suggested amendments 
aimed at improving the situation of consumers, and the Commission approved these amendments. 
The date for number portability (1 January 2003) was supported in the European Parliament 
Opinion on the proposed Directive on Interconnection. This is not the position taken through 
Amendment 2 which mentions "the late moment for introduction of number portability" as one of 
the major obstacles faced by new operators. 
The European Parliament Opinion on the proposed Directive on Interconnection also supported the 
definition of universal service, which would be changed by Amendment 10. In addition, the 
substance of Amendment 10 proposed in the present report on that definition raises a problem, 
because affordability cannot be defined at the present time at the same level for all Member States. 
Fees not related to administrative costs 
(Reference to Article 7.1 b) in Amendment 20) 
Through the reference to Article 7. lb) in this amendment Member States would be allowed to 
impose fees not related to administrative costs as a counterpart for access to rights of ways. 
The Commission is of the opinion that such rights of ways cannot be seen as a genuine scarce 
resource, like for instance radiofrequencies can be. This reference to amendment 7.1.b) would allow 
the levy, on new entrants in the local loop, of fees not related to administrative costs. It will 
therefore discourage the construction of competitive infrastructure. The consultation on the Green 
Paper on the liberalisation of infrastructure made it clear that there is much concern in industry 
against such an approach. 
Of course, the granting of rights of ways to network operators can be accompanied by Member 
States of other stringent obligations, such as environmental or town and country planning 
requirements, or proof of access to sufficient financial resources. 
Anticipation of deadlines 
(Amendments 25 and 29) 
Both dates proposed by these amendments would result in excessively short deadlines. 
As far as harmonisation is concerned (amendment 25), the review of its results needs to be done 
after a sufficiently long period of time, following the liberalisation of the telecommunications 
sector in 1998. Otherwise there is a risk that no valid conclusion be drawn from this review 
process. It is also necessary to take into account the time needed for setting up the harmonised 
general authorisations, along the procedure put forward in Article 14 of the proposed Directive. 
Therefore the Commission considers that a three year period after the 1 January 1998 is 
reasonable. 
As far as the deadline for bringing into line existing licences is concerned (amendment 29), it does 
not appear justified to advance it to 1 July 1998, instead of 1 January 1999. Member States will 
need time to take the administrative steps necessary to adapt the existing authorisations to the 
provisions of the proposed Directive. 
Amendments linked to comitology 
(Amendments 26 and 27) 
Both amendments would differ from the Council decision on comitology of 13 July 1987 : 
Amendment 26 on the limitation of the number of representatives in the European Union 
Telecommunications Committee (EUTC) to only one per Member State and Amendment 27 on a 
reference to publicity of meetings of the EUTC. 
In addition, the publicity required by Amendment 27 would be difficult to implement, given the 
confidential nature of data provided by undertakings. Rights of defense will be safeguarded anyway. 
Research & training conditions in licences 
(Amendment 35) 
It is not justified, in a competitive environment, to impose on market players specific conditions in 
these fields. Such conditions can result in the imposition of a significant financial burden on 
networks and services providers. In addition, Member States should be responsible for research and 
training policies. Finally, the amendment could also lead to the introduction of extraneous elements 
in universal service, which would result in erecting new barriers to entry for services for which no 
strong social and economical demand exists yet. 
Individual licences for telephony services between the Community and third countries 
(Amendment 36) 
Individual licences for voice telephony services are normally justified because of public service 
requirements (Article 7 (d)) and these should be indistinctly applicable intra and extra-EC services. 
Individual licences for town and country planning or protection of environment reasons 
(Amendment 39) 
Town and country planning or the protection of environment are legitimate and important public 
interest objectives, which as such are recognised by the proposal. However, the possibility of 
allowing Member States to issue individual licences in order to deal with town and country planning 
or the protection of environment is not necessary. The proposal already provides for possibilities to 
cover such concerns, mainly through Annex I. Also, some conditions linked to town and country 
planning or to the protection of environment can be addressed by means of general authorisations. 
4. Conclusion 
The Commission has accepted 26 of the 37 amendments proposed by the European Parliament 
either in whole, in part or in principle. 
In accordance with Article 189a paragraph 2 of the treaty, the Commission amends its initial 
proposal, incorporating these amendments. 
Amended Proposal for a European Parliament and Council Directive 
on a common framework for general authorizations and individual licences 
in the field of telecommunications services 
Original text Amended text 
Recital 5 
Whereas this Directive therefore will make a 
significant contribution to the entry of new 
operators into the market, as part of the 
development of the Information Society ; Whereas this Directive therefore will make a 
significant contribution to the entry of new 
operators into the market, as part of the 
development of the Information Society, bearing 
in mind that major obstacles still exist for new 
operators in the sectors that have already been 
open to competition, as well as in those member 
countries where national schemes of liberalisation 
of telecommunications have been implemented, 
such as the differentiated tariff policy of the 
incumbent operator, insufficient transparency and 
high costs for interconnection, and the lack of an 
asymmetrical treatment ; 
Recital 12 
Whereas Member States should be allowed to 
impose specific conditions on undertakings 
providing public telecommunications networks 
and telecommunications services because of their 
market power; whereas the market power of an 
undertaking depends on a number of factors 
including its share of the relevant product market 
or service market in the relevant geographical 
market, its turnover relative to the size of the 
market, its ability to influence market conditions, 
its control of the means of access to end-users. 
its access to financial resources, and its 
experience in providing products and services in 
the market; whereas, for the purpose of this 
Directive, an undertaking with a share of more 
than 25% of a particular telecommunications 
market in the geographical area in a Member 
State within which it is authorized to operate 
would be presumed to enjoy significant market 
power, unless its national regulatory authority 
determined, in accordance with the Community 
competition rules, that this was not the case; 
whereas, for an undertaking falling below this 
threshold market share, the national regulatory 
authority may nevertheless, albeit only for the 
purposes of applying the provisions of European 
Parliament and Council Directive .... on 
interconnection to public telecommunications 
networks and public telecommunications services 
in the context of Open Network Provision 
(ONP). determine that the undertaking enjoyed 
significant market power ; Whereas Member States should be 
allowed to impose specific conditions on 
undertakings providing public 
telecommunications networks and 
telecommunications services because of 
their market power» the market power of 
an undertaking being defined by the 
provisions of European Parliament and 
Council Directive .... on interconnection to 
public telecommunications networks and 
public telecommunications services in the 
context of Open Network Provision 
(ONP) ; 
Recital 13 
Whereas telecommunications services have a role 
to play in strengthening social and economic 
cohesion, inter alia by furthering the achievement 
of universal service, in particular in remote, 
peripheral, landlocked and rural areas and 
islands; whereas Member States should therefore 
be allowed to impose universal service 
obligations by means of individual licence ; Whereas telecommunications services have a role 
to play in strengthening social and economic 
cohesion, inter alia by furthering the achievement 
of universal service, in particular in remote, 
peripheral, landlocked and rural areas and 
islands; whereas Member States should therefore 
be allowed to impose universal service 
obligations to provide the universal service by 
means of individual licences ; whereas 
obligations to contribute to the financing of 
universal service are not a justification for 
imposing individual licences ; 
Recital 19 
Whereas the functioning of this Directive should 
be reviewed in due course; in the light of the 
development of the telecommunications sector 
and of trans-European networks, as well as in the 
light of experience gained from the 
harmonization and one-stop-shopping 
procedures set out in this Directive; Whereas the functioning of this Directive should 
be reviewed in due course; in the light of the 
development of the telecommunications sector 
and of trans-European networks, as well as in the 
light of experience gained from the 
harmonization and one-stop-shopping 
procedures set out in this Directive; whereas it 
seems reasonable that, when this Directive is 
reviewed, the possibility of the creation of a 
European regulatory authority is considered ; 
Article 1 
This Directive concerns the procedures This Directive concerns the procedures 
associated with the granting of authorizations associated with the granting of authorizations 
and the conditions attached to such and the conditions attached to such 
authorizations, for the purpose of providing authorizations, for the purpose of providing 
telecommunications services. telecommunications services and for the 
establishment and/or operation of any 
infrastructure for the provision of 
telecommunications services. 
Article 2 par. 1 (e) 
(e) "Telecommunications services" means (e) "Telecommunications services" means 
services whose provision consists wholly or services whose provision consists wholly or 
partly in the transmission and/or routing of partly in the transmission and/or routing of 
signals on telecommunications networks. signals on telecommunications networks. This 
Directive does not apply to radio and television 
broadcasting; 
Article 4 (2) 
Member States shall ensure that the conditions 
attached to general authorizations are published 
in an appropriate manner so as to provide easy 
access to that information for interested parties. 
Reference to the publication of this information 
shall be made in the national official gazette of 
the Member State concerned. Member States shall ensure that the conditions 
attached to general authorizations are published 
in an appropriate manner so as to provide easy 
access to that information for interested parties. 
Reference to the publication of this information 
shall be made in the national official gazette of 
the Member State concerned and in the Official 
Journal of the European Communities. 
Article 5 (4) 
Member States shall ensure that information 
concerning the procedures relating to general 
authorizations is published in an appropriate 
manner, so as to provide easy access to that 
information. Reference to the publication of this 
information shall be made in the national official 
gazette of the Member State concerned. Member States shall ensure that information 
concerning the procedures relating to general 
authorizations is published in an appropriate 
manner, so as to provide easy access to that 
information. Reference to the publication of this 
information shall be made in the national official 
gazette of the Member State concerned and in 
the Official Journal of the European 
Communities. 
10 
Article 7 (1) 
Member States may, in addition to conditions Member States may, in addition to conditions 
attached to general authorizations for the attached to general authorizations, require 
telecommunications services, including those individual licences imposing conditions as listed 
services mentioned in Annex II. require in Annex I, point 4, but only for the following 
individual licences imposing conditions as listed purposes : 
in Annex I, point 4, but only for the following 
purposes : 
(a) to allow the licensee access to specific (a) to allow the licensee access to specific 
radio frequencies or numbers; radio frequencies or numbers; 
(b) to give the licensee particular rights with (b) 
regard to access to public or private land; to give the licensee particular rights with 
regard to access to public or private land; 
(c) to grant the licensee rights to provide (c) 
public telecommunications infrastructure 
between the Community and third 
countries; to grant the licensee rights to provide 
public telecommunications infrastructure 
between the Community and third 
countries; 
(d) to impose obligations on the licensee (d) 
relating to the mandatory provision of 
public telecommunications services; to impose obligations and requirements on 
the licensee relating to the mandatory 
provision of public telecommunications 
services as defined in Annex I. points 4.5 
and 4.8 ; 
(e) to impose specific obligations, in 
conformity with Community competition 
rules, where the licensee has significant 
market power in relation to the provision 
of public telecommunications networks 
and telecommunications services. (e) to impose specific obligations, in 
conformity with Community competition 
rules, where the licensee has significant 
market power as defined by the provisions 
of European Parliament and Council 
Directive ... on interconnection to public 
telecommunications networks and public 
telecommunications services in the context 
of Open Network Provision in relation to 
the provision of public telecommunications 
networks and telecommunications 
services. 
H 
Article 7 (2) 
Undertakings wishing to provide services which 
are not yet covered by a general authorization 
and which cannot be provided without 
authorization, or wishing to enjoy additional 
rights not granted by the applicable general 
authorization, may apply for an individual 
licence-National regulatory authorities must within two 
weeks grant a temporary individual licence to 
undertakings wishing to provide services which 
are not yet covered by a general authorization 
and which cannot be provided without 
authorization, or wishing to enjoy additional 
rights not granted by the applicable general 
authorization, or prove that the service has to be 
subject to an individual licence procedure for the 
purposes of paragraph 1. Member States shall lay 
down an appropriate procedure for appealing 
against a negative decision to an institution 
independent of the national regulatory authority. 
Article 7 (3) 
In the situations addressed in paragraph 2 
Member States shall, as rapidly as possible, either 
consent to the provision of the service concerned 
or the establishment and/or operation of 
infrastructure concerned without authorization, 
or grant the relevant general authorizations in 
accordance with Section II. In the situations addressed in paragraph 2 
Member States shall, within one month, either 
consent to the provision of the service concerned 
or the establishment and/or operation of 
infrastructure concerned without authorization, 
or grant the relevant general authorizations in 
accordance with Section II. 
Article 9(3) second indent 
- it shall set reasonable time limits; inter alia it 
shall communicate to the applicant a decision on 
the application as soon as possible but not later 
than six weeks after it has received the 
application. - it shall set reasonable time limits; inter alia it 
shall communicate to the applicant a decision on 
the application as soon as possible but not later 
than six weeks after it has received the 
application. Extension is possible in situations 
that are set out in advance, in particular to ensure 
transparency and coordination with other 
Member States. 
Article 10(1) 
Member States may a priori limit the number of Member States may a priori limit the number of 
individual licences for any category of 
telecommunications services, only to the extent 
required to ensure the efficient use of radio 
frequencies and in conformity with Community 
competition rules. individual licences for any category of 
telecommunications services, and for 
establishment and/or operation of 
telecommunications infrastructure, only to the 
extent required to ensure the efficient use of 
radio frequencies and in conformity with 
Community competition rules. 
12 
Article 10 (2), introduction 
Where a Member State intends to limit the 
number of individual licences granted, it shall: Where a Member State is entitled by virtue of the 
preceding paragraph to limit the number of 
individual licences granted, it shall: 
Article 10 (4) 
Where a Member State finds, either on its own 
initiative or following a request by an 
undertaking, either at the time of entry into force 
of this Directive or at a later time, that the 
number of individual licences can be increased, it 
shall publish this fact and invite applications for 
additional licences. Member States shall periodically review whether 
any opportunities exist to increase the availability 
of frequencies. Thev shall inform the 
Commission every two years on the situation and 
any measures taken. Where a Member State 
finds, that the number of individual licences can 
be increased, it shall publish this fact and invite 
applications for additional licences. 
Article 11, second paragraph 
In addition, where resources are scarce, Member 
States may allow their national regulatory 
authorities to impose, in a non-discriminatory 
manner, a fee for the granting of an individual 
licence. This fee shall reflect the need for the 
optimal use of this resource as well as for the 
introduction and the development of innovative 
services and competition. In addition, where the resources mentioned in 
Article 7(1) (a) are scarce, Member States may 
allow their national regulatory authorities to 
impose, in a non-discriminatory manner, a fee for 
the granting of an individual licence. This fee 
shall reflect- the need for the optimal use of this 
resource as well as for the introduction and the 
development of innovative services and 
competition. 
Article 13, Title 
Coordination of authorization procedures Coordination of general authorization procedures 
and individual licence procedures 
(Article 13 to be moved and placed after Article 
15) 
13 
Article 13(1) 
An undertaking intending to provide a 
telecommunications service or to establish a 
telecommunications infrastructure in more than 
one Member State may request the national 
regulatory authorities concerned to coordinate 
their authorizations procedures in order to issue 
the necessary authorizations on substantially the 
same conditions. Pending harmonization on the basis of Article 14. 
the national regulatory authority concerned shall 
allow derogations to their general authorizations 
at the request of an undertaking intending to 
provide a telecommunications service or to 
establish a telecommunications infrastructure in 
more than one Member State in order to enable 
the undertaking to operate in the Member States 
concerned on substantially the same conditions. 
The national regulatory authority concerned shall 
issue the necessary individual licences oh 
substantially the same conditions on the request 
of an undertaking intending to provide a 
telecommunications service or to establish a 
telecommunications infrastructure in more than 
one Member State. 
Article 14, Title 
Harmonization Harmonization of general authorizations and 
procedures 
Article 14 (2), first paragraph 
Wherever necessary, the conditions attached to 
general authorizations for the provision of the 
telecommunications services listed in Annex II, 
the procedures for the grant of general 
authorizations and individual licences, and the 
setting of fees shall be harmonized. Wherever necessary, with a view to ensuring 
light-handed regulation, the conditions attached 
to general authorizations for the provision of the 
telecommunications services listed in Annex II, 
the procedures for the grant of general 
authorizations and individual licences, and the 
setting of fees shall be harmonized. 
14 
Article 20 (3) 
At the request of a Member State or on its own 
initiative the Commission shall examine any 
conditions, criteria and/or procedures set out in a 
national authorization, in particular with regard 
to the justifiability of the measures and their 
compliance with the principle of proportionality. 
The Commission shall, within one month of 
receipt of a request and following the procedure 
set out in Article 17, decide whether the 
Member State may continue to apply the 
measure. The Commission shall communicate its 
decision to the Council and to the Member 
States. At the request of a Member State or on its own 
initiative the Commission may examine at any 
time any conditions, criteria and/or procedures 
set out in a national authorization, in particular 
with regard to the justifiability of the measures 
and their compliance with the principle of 
proportionality. The Commission shall, within 
one month of receipt of a request and following 
the procedure set out in Article 17, decide 
whether the Member State may continue to apply 
the measure. The Commission shall communicate 
its decision to the Council and to the Member 
States. 
Article 22 (2) 
Before 1 January 2000 the Commission will 
review whether an amendment of the provisions 
of this Directive is necessary, on the basis of a 
report to be supplied to the European Parliament 
and Council. The report shall include an 
assessment, on the basis of the experience 
gained, of the need for further development of 
the regulatory structures as regards 
authorizations, in particular in relation to 
harmonization and to trans-European services 
and networks. Before 1 January 2000 the Commission will 
review whether an amendment of the provisions 
of this Directive is necessary, on the basis of a 
report to be supplied to the European Parliament 
and Council. The report shall include an 
assessment, on the basis of the experience 
gained, of the need for further development of 
the regulatory structures as regards 
authorizations, in particular in relation to 
harmonization and to trans-European services 
and networks, the institutional arrangements, as 
well as numbering plans and number portability. 
15 
Article 24 
_L Member States shall bring into force the laws, 
regulations and administrative provisions 
necessary to comply with this Directive by 1 July 
1997. They shall immediately inform the 
Commission thereof. Member States shall bring into force the laws, 
regulations and administrative provisions 
necessary to comply with this Directive and 
publish the conditions and procedures attached 
to authorizations by 1 July 1997. They shall 
immediately inform the Commission thereof. 
When Member States adopt these provisions, 
these shall contain a reference to this Directive or 
shall be accompanied by such reference at the 
time of their official publication. The procedure 
for such reference shall be adopted by Member 
States. When Member States adopt these provisions, 
these shall contain a reference to this Directive or 
shall be accompanied by such reference at the 
time of their official publication. The procedure 
for such reference shall be adopted by Member 
States. 
2 Member States shall notify to the Commission Deleted 
a list of representatives to the European Union 
Telecommunications Committee not later than 
two months after publication of this Directive. 
Annex I (4.5a) (new) 
(4.5a) Compliance with substantive obligations 
concerning coverage of low population areas in 
particular. 
Annex I (4.6.) 
4.6. Conditions applied to operators having a 
significant market position, as notified by 
Member States under the directive on 
interconnection, aiming at ensuring 
interconnection or specific monitoring 
requirements. 4.6. Conditions applied to operators having a 
significant market position, as notified by 
Member States under the directive on 
interconnection, aiming at ensuring 
interconnection or the control of significant 
market power. 
Annex I (4.9a) (new) 
(4.9a.) Specific conditions related to the supply 
of leased lines in conformity with Directive 
92/44EEC as modified by Directive 96/.. .EC 
amending Council Directives 90/387/EEC and 
92/44/EEC for the purpose of adaptation to a 
competitive environment in telecommunications 
16 
ISSN 0254-1475 
COM(96) 342 final 
DOCUMENTS 
EN 06 15 08 
Catalogue number : CB-CO-96-341-EN-C 
ISBN 92-78-06126-3 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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