Opinion of the Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council extending Decision No 710/97/EC on a co-ordinated authorisation approach in the field of satellite personal communication services in the Community"

(2000/C 140/11)

On 20 March 2000 the Council decided to consult the Economic and Social Committee, under Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society was responsible for preparing the Committee's work on the subject. The rapporteur was Mr Bernabei.

The Economic and Social Committee, acting under Rules 20 and 50 of the Rules of Procedure, subsequently decided to appoint Mr Bernabei as rapporteur-general.

At its 371st plenary session (meeting of 30 March 2000), the Economic and Social Committee adopted the following opinion unanimously.

1. Introduction

1.1. Satellite personal communication services (S-PCS) are used with terrestrial fixed and mobile services, either as an alternative or on an integrated basis with them. Satellite mobile communications offer valuable opportunities to all to send and receive messages, especially in areas where fixed infrastructures are underdeveloped.

1.2. The introduction of satellite personal communication services therefore represents a decisive step forward in creating networks providing global interconnectivity and mobility for voice, data and image transmission.

1.3. In spite of this potential, and the major efforts made by industry in the sector, the market size has not yet grown as expected, possibly in part because of regulatory brakes on development and red tape.

1.4. The use of radio spectrum is currently the focus of Member State, EU and worldwide attention. The results of the public consultation on the green paper on spectrum policy were set out in a communication from the Commission(1). In spite of the significant technical and technological progress achieved, which has greatly expanded the range of available frequencies, growing demand for mobile communications from various market sectors is turning radio spectrum into a very scarce resource. The effect is that spectrum decisions are taking on a political, social and economic, as well as technical, character.

1.5. The EU's aim, in Decision No 710/97/EC, was to establish a regulatory framework for the coordinated introduction in Europe of satellite systems offering S-PCS directly to individual user terminals.

1.6. The measures introduced by the decision concerned harmonisation of both frequencies and licensing conditions, together with the use and free circulation of user terminals. In addition, it envisaged a one-stop-shopping procedure valid throughout Europe.

2. The Commission proposal

2.1. Although the Commission launched its initiative in 1997 and CEPT has adopted numerous decisions and recommendations in this area, not all the provisions of Decision No 710/97/EC have been implemented. As a result, licensing conditions and procedures vary considerably from one Member State to another. In addition, the planned one-stop-shopping procedure has not yet been introduced.

2.2. In the light of technological developments in third generation mobile terrestrial systems and the ensuing need for spectrum clearance in certain bands, ever closer monitoring of spectrum use will be required. Moreover, further satellite services will soon be in operation which although using different frequency bands, will have to be brought under the same regulatory framework.

2.3. In view of the above comments, the Commission proposes to extend the validity of the regulatory framework introduced by Decision No 710/97/EC, which is due to expire in May 2000, for a further three and a half years until 31 December 2003.

3. Conclusions

3.1. In drafting the present opinion, the Committee has taken due account of the comments and recommendations on the subject made in previous opinions, and in particular the opinion adopted unanimously on 11 December 1997 on mobile and wireless communications (UMTS)(2) and the opinion of 28 April 1999 on the Green Paper on radio spectrum policy in the context of European Community policies(3).

3.2. The Committee agrees with the Commission's reasons for proposing to extend the validity of the rules governing authorisation in the S-PCS sector, believing that the extension responds to legislative and market requirements.

3.3. The Committee would, however, draw the attention of the Commission, Parliament and Council to the importance not only of harmonising the telecommunications regulatory framework with the 1999 Review, but also of ensuring that the greatest band capacity possible is supplied to users at accessible prices in a judicious combination of fixed and mobile terrestrial, satellite and CATV (cable television) systems, and guaranteeing services for access to the unbundled local loop.

3.4. In conclusion, the Commission's proposal also clearly accords with the need to prepare the European Union for full entry into the information society and the new world of on-line commerce, using all the communications infrastructures and technologies necessary to create Internet markets.

Brussels, 30 March 2000.

The President

of the Economic and Social Committee

Beatrice Rangoni Machiavelli

(1) COM(1999) 538 of 10.11.1999.

(2) OJ C 333, 30.10.1998, p. 56.

(3) OJ C 169, 16.6.1999, p. 3.