* it 
•is à COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 31.07.1996 
COM(96) 418 final 
95/0280 (COD) 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
amending Council Directives 90/387/EEC and 92/44/EEC for the purpose of 
adaptation to a competitive environment in telecommunications 
(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 amending Council Directives 90/387/EEC and 92/44/EEC for 
the purpose of adaptation to a competitive environment in telecommunications. 
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 14.11.19951, and it was formally transmitted to 
the EP and the Council on 10.01.1996. 
The Economic and Social Committee gave a favourable Opinion on 25.04.19962. The 
European Parliament adopted a favourable Resolution at its First Reading on 
22.05.1996, and proposed 17 amendments to the Commission proposal3. 
b) Purpose of the Directive 
The aim of the Commission proposal is to amend the two following existing ONP 
Directives: 
- the ONP framework Directive (90/387/EEC)4 
- the ONP leased lines Directive (92/44/EEC)5 
in order to adapt them to the post-1998 liberalised telecommunications market. 
The ONP framework Directive was adopted in 1990, and set out basic principles for 
harmonising conditions for access to, and use of, public telecommunications networks 
and services. 
The ONP leased lines Directive was adopted in June 1992, and set out harmonised 
supply and usage conditions for leased lines, including a requirement for a minimum set 
of 5 types of leased lines to be available in all Member States 
COM(95) 543, OJ C 62, 1.03.1996, p. 3 
2 TRA/304, 25.04.1996 
3 A4-0144/96, PV 22.05.1996 
4 OJL 192, 24.07.1990, p. 1 
5 OJL 165, 19.06.1992, p. 27 
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2. EP amendments accepted bv the Commission 
Of the 17 amendments adopted by the European Parliament at First Reading, the 
Commission accepted 3 in full, 3 in part, and 2 in principle, making a total of 8. 
Amendments accepted in full : ?, 13, 17 
Amendments accepted in part: 4, 10, 14 
Amendments accepted in principle : 9, 19(part) 
The Commission accepted those amendments which: 
• call for examination before the year 2000 of the possibility of establishing a 
European regulatory authority for telecommunications [Amendments 10 (part)]. 
• support the need to review before the year 2000 the provisions of these two 
ONP Directives in the light of the developments in the market [Amendments 10 
and 14 (parts)]. 
• are coherent with other Directives, and in particular with the Common Position 
reached on the proposed Interconnection Directive [Amendments 2, 4(lst 
part)]. 
• improve the clarity of the text [Amendments 13 and 17]. 
In addition, the Commission accepted in principle the following amendments:: 
Amendment 9: The Commission agrees with the concern of the Parliament in 
terms of providing national regulatory authorities with all necessary resources to 
fulfil their mission in full autonomy, but the creation of legal difficulties for 
national transposition of such requirement should be avoided. For this reason, 
such a provision should be in a recital (recital 7), instead of an article. 
Amendment 19 (3rdpart): The Commission can accept in principle the need for 
restructuring the ONP committee, but this should not be a legal requirement. 
3. Amendments not accepted bv the Commission 
The reasons which led the Commission not to accept a number of the amendments (or 
parts of them) proposed by the European Parliament are given below, where the 
amendments are grouped into 6 categories. 
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Changes to definitions and concepts 
(Amendments 1, 3, 4 (2nd part), 6 and 7) 
These amendments propose changes to definitions and concepts which are inconsistent 
with other Directives in the telecommunications sector, and in particular with the 
Common Position reached on the proposed Directive on interconnection in 
telecommunications6. These would risk of reopening debates on issues, commonly 
agreed in the other Directives, and in particular could endanger the political agreement 
achieved on that Common Position and accepted by the Commission. This would also 
go against the Parliament's wish of consistency between all EC Directives in this field. 
In this category fall the definitions of'universal service' (Amendment 3), 'essential " 
requirements' (Amendment 4, 2nd part on 'data protection') and 'interconnection' 
(Amendment 6). Also fall in this category Amendments 1 and 7: the former modifying 
the 'significant market power' concept agreed in the Interconnection Directive, and the 
latter introducing the concept of'network interconnection point', which is a new concept 
not defined or included in the Interconnection Directive. 
Directive on costing and financing of universal service 
(Amendment 8) 
The Interconnection Directive sets out a framework for costing and financing of 
universal service. In addition, the Communication on universal service for 
telecommunications7 announces a Commission Communication on costing and financing 
of universal service by September 1996, which will provide guidelines to be used in 
assessing national approaches to costing and financing universal service. Therefore, the 
Commission does not share the need for a specific Directive on the costing and financing 
of universal service. 
Review of the Directive 
(Amendments 10 and 14 (parts)) 
The Commission accepts the need to examine what provisions of the two Directives 
(90/387/EEC and 92/44/EEC) should be adapted in the light of market developments, 
but such adaptation should be limited to these two ONP Directives. 
The Commission considers inappropriate the requirement for further measures that can 
be proposed in the report for the full implementation of the aims of these Directives to 
take the form of a proposal for a single consolidated text, as this would prejudge the 
need for such measures. 
6 OJC313, 24.11.1995, p. 7. 
7 COM(96) 73, 13.03.1996 
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Comitology 
(Amendment 19(lst and 2nd parts)) 
The Commission can not accept the replacement of Member States' by 'national 
regulatory authorities' proposed in the first paragraph of Amendment 19, as it goes 
against standard consultative committee procedures. 
The Commission neither accepts the second paragraph of Amendment 19, as there is 
already a specific mechanism for consultation with trade unions (i.e. the Joint Committee 
on Telecommunications). 
Applicability of the ONP Leased Lines Directive 
(Amendment 12) 
Amendment 12 would significantly reduce the scope of the Leased Lines Directive, as 
the fixed public telephone network is commonly used for provision of leased lines. 
Other amendments 
(Amendments 15,16 and 18) 
The Commission can not accept Amendments 15 (1st part) and 16: the former would be 
against standard provision in EC Directives, and the latter inconsistent with other ONP 
Directives. 
Although agreeing with the aim of Amendment 15 (2nd part) in terms of publication of a 
consolidated version, the Commission considers inappropriate that it constitutes a legal 
requirement. 
The Commission can neither accept Amendment 18, as 'net' cost is unclear and 
potentially too restrictive, excluding other costs which may be taken into account (e.g. 
general network costs). 
4. Conclusion 
The Commission has accepted 8 of the 17 amendments proposed by the European 
Parliament at First Reading either in whole, in part or in principle. 
In accordance with Article 189a paragraph 2 of the EC Treaty, the Commission amends 
its initial proposal, incorporating these amendments. 
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Modified Proposal for a European Parliament and Council Directive 
amending Council Directives 90/387/EEC and 92/44/EEC 
for the purpose of adaptation to a competitive environment in telecommunications 
Original text Amended text 
Recital 7 
(based on EP amendment 9) 
7. Whereas in conformity with the principle of 
separation of regulatory and operational 
functions, Member States should guarantee 
the independence of the national regulatory 
authority or authorities, and ensure that the 
national regulatory authority or authorities 
of each Member State will play à key role in 
the implementation of the regulatory 
framework set out in relevant Community 
legislation; whereas the national regulatory 
authorities should have the necessary means 
to carry out fuliv the tasks assigned to them; 7. Whereas in conformity with the principle of 
separation of regulatory and operational 
functions, Member States should guarantee 
the independence of the national regulatory 
authority or authorities, and ensure that the 
national regulatory authority or authorities 
of each Member State will play a key role in 
the implementation of the regulatory 
framework set out in relevant Community 
legislation; whereas the national regulatory 
authorities should be in possession of all 
necessary resources, both in terms of 
staffing, expertise, and financial means to 
fulfil their mission in full autonomy: 
ARTICLE 1(2) 
Article 2(3), first indent, of Directive 90/387/EEC 
(based on EP amendment 2) 
3. -'telecommunications services' means 
services whose provision consists 
wholly or partly in the transmission 
and/or routing of signals on 
telecommunications networks; 3. -'telecommunications services' means 
services whose provision consists 
wholly or partly in the transmission 
and/or routing of signals on 
telecommunications networks, with 
the exception of radio broadcasting or 
television; 
ARTICLE 1(2) 
Article 2(6) of Directive 90/387/EEC 
(based on EP amendment 4) 
'essential requirements' means the non-
economic reasons in the general 
interest which may cause a Member 
State to restrict access to public 
telecommunications networks or 
public telecommunications services. 
These reasons are security of network 
operations, maintenance of network 
integrity and, in justified cases, 
interoperability of services and data 
protection. 'essential requirements' means the non-
economic reasons in the general 
interest which may cause a Member 
State to restrict access to public 
telecommunications networks or 
public telecommunications services. 
These reasons are security of network 
operations, maintenance of network 
integrity. protection of the 
environment or town planning, and, in 
justified cases, interoperability of 
services and data protection. 
ARTICLE 1(8) 
Article 8 of Directive 90/387/EEC 
(based on EP amendment 10) 
The Commission shall examine and report 
to the European Parliament and to the 
Council on the functioning of this 
Directive, on the first occasion not later 
than 31 December 1999. The report shall 
be based inter alia on the information 
provided by the Member States to the 
Commission and to the ONP Committee. 
Where necessary, further measures can be 
proposed in the report for adapting this 
Directive, taking account of developments 
towards a fully competitive environment. The Commission shall examine and report 
to the European Parliament and to the 
Council on the functioning of this 
Directive, on the first occasion not later 
than 31 December 1999. The report shall 
be based inter alia on the information 
provided by the Member States to the 
Commission and to the ONP Committee. 
Where necessary, the report shall examine 
what provisions of this Directive should be 
adapted in the light of the developments in 
the market. Further measures can be 
proposed in the report for . the full 
implementation of the aims of this 
Pirecfive; jn particular, the report shajl 
examine the possibility of establishing a 
European Regulatory Authority. 
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ARTICLE 2(10)(b) 
Article 10(4) of Directive 92/44/EEC 
(based on EP amendment 13) 
4. The national regulatory authority shall 
not apply the requirements , of 
paragraph 1 where an organisation 
does not have significant market 
power in respect of a specific leased 
line offering in a specific geographical 
area. 4. The national regulatory authority shall 
not apply the requirements of 
paragraph 1 where an organisation 
does not have significant market 
power in respect of a specific leased 
line offering in a specific geographical 
area, 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). 
ARTICLE 2(12) 
Article 14 of Directive 92/44/EEC 
(based on EP amendment 14) 
The Commission shall examine and report 
to the European Parliament and to the 
Council on the functioning of this 
Directive, on the first occasion not later 
than 31 December 1999. The report shall 
be based inter alia on the information 
provided by the Member States to the 
Commission and to the ONP Committee. 
The report shall include an assessment of 
the need for continuation of this Directive, 
taking account of developments towards a 
fully competitive environment. Where 
necessary, further measures can be 
proposed in the report for adapting this 
Directive, taking account of developments 
towards a fully competitive environment. The Commission shall examine and report 
to the European Parliament and to the 
Council on the functioning of this 
Directive, on the first occasion not later 
than 31 December 1999. The report shall 
be based inter alia on the information 
provided by the Member States to the 
Commission and to the ONP Committee. 
The report shall include an assessment of 
the need for continuation of this Directive, 
taking account of developments towards a 
fully competitive environment. Where 
necessary, the report shall examine what 
provisions of this Directive should be 
adapted in the light of the developments in 
the market, and further measures can be 
proposed in the report for the full 
implementation of the aims of this 
Directive. 
Annex 1(3), second paragraph, fourth indent 
(based on EP amendment 17) 
tariffs must be non-discriminatory and 
guarantee equality of treatment. - tariffs must be non-discriminatory and 
guarantee equality of treatment,. 
except for restrictions which are 
compatible with Community law. 

ISSN 0254-1475 
COM(96) 418 final 
DOCUMENTS 
EN 06 08 10 15 
Catalogue number : CB-CO-96-400-EN-C 
ISBN 92-78-07710-0 
Office for Official Publications of the European Communities 
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