•COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 455 final 
Brussels, 25.10.1994 
94/ 0476CCOD) 
<T 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON THE USE OF STANDARDS FOR THE TRANSMISSION 
OF TELEVISION SIGNALS 
(INCLUDING REPEAL OF DIRECTIVE 92/38/EEC) 
(presented by the Commission pursuant to Article 189 A (2) 
of the EC-Treaty) 
il "-^ 
EXPLANATORY MEMORANDUM 
1. INTRODUCTION 
1.1 On the 15th of November 1993, the Commission adopted its proposal for 
a Directive on the use of standards for the transmission of television 
signals1. It seeks to establish a regulatory framework of standards for 
advanced television services. It foresees the repeal of Council Directive 
92/38/EEC of 11 May 1992, in order to take into account market 
evolution and recent technical developments. 
1.2 At its first reading on the 20th April 1994, the European Parliament 
adopted eight amendments to the Directive2. The Commission can 
accept two of them as proposed. The Commission can accept a further 
four amendments but with modifications to the Parliament's text. Two 
of the amendments cannot be accepted by the Commission. The rationale 
for each of these decisions is explained below. 
2. ACCEPTED AMENDMENTS 
2.1 The Commission agrees that a reference to the "Television without 
frontiers" Directive is appropriate and therefore accepts amendment 1. 
2.2 The Commission agrees that the Union has the responsibility to avoid 
undesirable fragmentation of effort in this field and therefore accepts 
amendment 4. 
1 COM (93) 556 FINAL - COD 476, O.J No C 341, 18.12.1993, p. 18 
2 PE 180.706 adopted-20.04.1994 
3. AMENDMENTS ACCEPTED IN PRINCIPLE 
3.1 The Commission accepts the substance of amendments 2, 5, 7 and 8 but 
modifies the text as proposed by the Parliament. The modifications jeflect 
technical and legal details, and, for amendment 7, reflect the outcome of 
the in-depth industry wide consultation on the conditional access issue. 
3.2 Amendment 2 
The Commission considers it to be inappropriate to base a public law 
exclusively on a specific private initiative, the European Digital Video 
Broadcasting Group (DVB). It is possible, however, to retain the idea 
behind the Parliament's amendment by modifying the drafting. 
3.3 Amendment^ 
The Commission can accept the reference to advanced services as 
proposed, but must insist on the inclusion of 625 line services as well as 
1250 line services within the definition of advanced services. This is 
because there will be other kinds of advanced service besides HDTV. 
3.4 Amendment^ 
The Commission agrees that the market for digital television services is 
best served by the availability of agreed standards for transmission before 
such services are launched. It therefore accepts the substance of the first 
part of the Parliament's amendment. 
In relation to conditional access3, the Commission wished to ascertain the 
position of the market actors on this subject before incorporating a 
suitable article on this subject in the Directive. Following a lengthy and 
wide consultation between the relevant economic parties conducted under 
the auspices of the European Project for Digital Video Broadcasting, a 
number of agreements have been reached dealing with Conditional 
Access to digital television services. The agreements include: 
the definition of a Common Scrambling Algorithm4, which will 
become a European standard for the scrambling and descrambling 
of digital television signals; 
Conditional Access is the process of granting access, by suitable authorized customers, to scrambled 
television signals. , 
Scrambling is the process of rendering the broadcast signal unintelligible during broadcasting. This 
signal is capable of being descrambled subsequently if the proper authorization is given. A 
scrambling algorithm is the mathematical basis of the scrambling process. 
the acceptance of the need for conditional access systems to have 
the technical capacity for transcontrol5 at cable television network 
head-ends; 
the acceptance of principles for the licensing of proprietary 
conditional access technology to receiver manufacturers; 
the acceptance of a technical operational procedure known as 
"Simulcrypt"6 as a useful but not unique or obligatory means of 
ensuring that the same scrambled television programme can be 
delivered to viewers via different conditional access systems; 
the agreement to specify and to submit to the European 
standardization bodies a Common Interface7 which would allow 
consumer equipment possessing it to use multiple conditional 
access systems where the proprietary elements of such systems 
could be included in detachable modules. It was agreed that the 
common interface could become an important, but not obligatory, 
element in the market; 
the preparation of a voluntary Code of Conduct dealing with 
commercial relations between relevant market parties in relation 
to the control of customer access to digital television signals; 
the agreement to recommend to the appropriate authorities that 
suitable anti-piracy legislation be adopted and enforced in the 
Member States of the European Union and the Council of Europe. 
The Commission notes the progress made by the industry in addressing 
these issues. While it considers this progress to be significant, it is 
nevertheless aware that these voluntary agreements do not definitively 
guarantee that there will be no difficulties in the future development of 
the new market for digital pay television. It will be essential therefore 
that these market developments be monitored carefully particularly in the 
start-up phase of this new industry. 
5 Transcontrol, in this context, is the technical process of transferring control of a conditional access 
system from a conditional access service provider to a cable television network operator. 
6 Simulcrypt is a set of technical arrangements, defined by the European Project for Digital Video 
Broadcasting, which will allow a Broadcaster of scrambled signals simultaneously to access bases of 
consumer decoders which use different conditional access systems. 
7 A Common Interface is a connection between a unit of digital equipment which provides reception of 
unscrambled services and a module which performs descrambling and conditional access functions. 
The interface is designed so that different conditional access systems may be incorporated into 
modules and continue to work effectively with the equipment 
The Commission therefore proposes to monitor market developments 
with a view to ensuring that the interests of consumers and of fair 
competition are in practice protected. It is also stressed that nothing in 
the Directive limits the rights of any party under Articles 85 and 86 of 
the Treaty to seek redress if they feel that their entitlements to fair 
competition are being adversely affected by any actions of other market 
parties. 
In relation to the text of the Directive itself, the Commission proposes 
that it requires all consumer equipment used for descrambling digital 
television signals to use the Common Scrambling Algorithm, in order to 
ensure that all pay television service providers can, in principle, provide 
all digital pay television consumers in the European Union with their 
programmes. 
It is further proposed to make provision in the Directive for the transfer 
of control of conditional access at cable television network head-ends and 
for the licensing of proprietary conditional access technology. 
The Commission has thus modified the Directive in three ways to deal 
with the conditional access issue : 
i) by adding four new Recitals dealing with the subject; 
ii) by incorporating a new Article 3 bis; 
ii) by adding a phrase in Article 6 concerning the review of 
developments in the market on conditional access to digital 
television services. 
3.5 Amendment8 
Technology in this field is rapidly evolving. Market developments are 
also likely to evolve rapidly, but it is difficult to predict their precise 
scope and timing. Regulation may be required to ensure harmonious 
market development in this field but it is premature to define now its 
scope and timing. The text proposed by the Parliament has been 
modified by the Commission to reflect these realities. 
4. REJECTED AMENDMENTS 
4.1 Amendment 3 
The Commission believes that reference to the evolution of technology 
and the market provides necessary motivation for the Directive and 
therefore cannot accept the Parliament's amendment deleting this 
reference. 
4.2 Amendment 6 
According to technical experts, it is not feasible to develop a wide-screen 
analogue transmission system which is simultaneously compatible with 
PAL and SECAM. Furthermore, there is no incentive among the market 
actors to develop such a system. The digital era provides an opportunity 
to replace both PAL and SECAM with a single new digital standard. 
5. CONCLUSION 
5.1 In accordance with article 189a, paragraph 2 of the EC Treaty the 
Commission hereby amends its initial proposal. 
ANNEX1 
REJECTED AMENDMENT 
Tenth Recital 
Initial Proposal 
Whereas it is appropriate to repeal Council 
Directive 92/38/EEC and to issue a new 
Directive in the light of these 
developments in the market and 
technology; Amendment of European Parliament 
Whereas it is appropriate to repeal Council 
Directive 92/38/EEC and to issue a new 
Directive; 
(Amendment 6Ï 
Article 2(ii) 
Initial Proposal 
(ii) if they are in wide-screen format and 625 
lines, and are not fully digital, use the D2-
MAC transmission system, or a 
transmission system which is fully 
compatible with PAL or SECAM Amendment of European Parliament 
(ii) if they are in wide-screen format and 625 
lines, and are not fully digital, use the 
D2-MAC transmission system, or a 
transmission system which is rally 
compatible with PAL or SECAM, 
preference being also given to the 
establishment of a transmission system 
guaranteeing compatibility with PAL and 
SECAM: 
ANNEX2 
Initial Proposal Modified Proposal 
Proposal for a Directive of the Modified Proposal for a Directive of the 
European Parliament and of the European Parliament and of the 
Council on the use of standards for the Council on the use of standards for the 
transmission of television signals transmission of television signals 
COM(93) 556 Final - COD 476 
THE EUROPEAN PARLIAMENT AND THE EUROPEAN PARLIAMENT AND 
THE COUNCIL OF THE EUROPEAN THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, UNION. 
Having regard to the Treaty establishing Having regard to the Treaty establishing 
the European Community, and in the European Community, and in 
particular Articles 57(2), 66 and 100a particular Articles 57(2), 66 and 100a 
thereof, thereof, 
Having regard to the proposal from the Having regard to the proposal from the 
Commission1, Commission1, 
Having regard to the opinion of the Having regard to the opinion of the 
Economic and Social Committee2, Economic and Social Committee2, 
1 COM (93) 556 FINAL - COD 476, O.J No C 341, 
18.12.1993, p. 18 
. 2 CES 378/94, 23.03.1994 
Initiai Proposal 
Whereas the Community, through Council 
Decisions 89/337/EEC3 and 89/630/EEC4, 
recognised the strategic importance of 
High Definition Television (HDTV) for 
the European consumer electronics 
industry and for the European television 
and film industries and established the 
strategy framework for the introduction of 
European HDTV; Modified Proposal 
Whereas the Community, through Council 
Decisions 89/337/EEC3 and 89/630/EEC\ 
recognised the strategic importance of 
High Definition Television (HDTV) for 
the European consumer electronics 
industry and for the European television 
and film industries and established the 
strategy framework for the introduction of 
European HDTV; 
Whereas the objectives of the strategy for 
the introduction of HDTV in Europe are 
an integral part of the Community audio­
visual policy, and whereas they must take 
into account other objectives of this policy 
within the perspective of the development 
of Europe's audio-visual capacity, which 
comprise structural objectives such as the 
development of production in countries or 
regions with more limited audio-visual 
capacity; Whereas the objectives of the strategy for 
the introduction of HDTV in Europe are 
an integral part of the Community audio­
visual policy, and whereas they must take 
into account other objectives of this policy 
within the perspective of the development 
of Europe's audio-visual capacity, which 
comprise structural objectives such as the 
development of production in countries or 
regions with more limited audio-visual 
capacity, in respect of which the 
importance of Directive 89/552/EEC on 
"Television without frontiers" should be 
reaffirmed: 
10 
Initial Proposal 
Whereas Council Directive 92/38/EEC on 
the adoption of standards for the 
transmission of television signals5 set a 
regulatory framework of standards for 
advanced television broadcasting services 
for television programmes, based on HD-
MAC6 as the European satellite and cable 
transmission standard for non-fully digital 
HDTV and the D2-MAC7 standard for 
other not completely digital satellite and 
cable transmission in the wide-screen 16:9 
aspect ratio format; Modified Proposal 
Whereas Council Directive 92/38/EEC on 
the adoption of standards for the 
transmission of television signals3 sets a 
regulatory framework of standards for 
advanced television broadcasting services 
for television programmes based on HD-
MAC6 as the European satellite and cable 
transmission standard for non-fully digital 
HDTV and the D2-MAC7 standard for 
other not completely digital satellite and 
cable transmission in the wide-screen 16:9 
aspect ratio format; 
Whereas Council Decision 93/424/EEC on 
an Action Plan for the introduction of 
advanced television services in Europe8 
aims at promoting the wide-screen 16:9 
format (625 or 1250 lines), irrespective of 
the European television standard used and 
irrespective of the broadcasting mode 
(terrestrial, satellite or cable); Whereas Council Decision 93/424/EEC on 
an Action Plan for the introduction of 
advanced television services in Europe8 
aims at promoting the wide-screen 16:9 
format (625 or 1250 lines), irrespective of 
the European television standard used and 
irrespective of the broadcasting mode 
(terrestrial, satellite or cable); 
Whereas Article 7 of Council Directive 
92/38/EEC on the adoption of standards 
for the transmission of television signals 
calls on the Commission to report on the 
effects of the application of that Directive, 
on the evolution of the market, in 
particular on market penetration measured 
by objective criteria, the use of the 
Community funding, and make proposals 
to the Council to adapt that Directive to 
these developments if necessary; Whereas Article 7 of Council Directive 
92/38/EEC on the adoption of standards 
for the transmission of television signals 
calls on the Commission to report on the 
effects of the application of that Directive, 
on the evolution of the market, in 
particular on market penetration measured 
by objective criteria, the use of the 
Community funding, and make proposals 
to the Council to adapt that Directive to 
these developments if necessary; 
5 O.J. No L 137, 20.05.1992, p. 17 
6 ETSI standard reference : prETS 300 3S2 
7 ETSI standard reference ; prETS 300 250 
8 O.J. No L 196, 5.08.1993, p.48 
11 
Initial Proposal 
Whereas, in order to reach Community 
goals as set out in the above-mentioned 
Decisions and to contribute to the 
achievement of an internal market, as 
provided for in Article 8(a) of the Treaty, 
in the broadcasting of television signals, it 
is necessary to take steps to adopt a 
common format for wide-screen 
transmissions; Modified Proposal 
Whereas, in order to reach Community 
goals as set out in the above-mentioned 
Decisions and to contribute to the 
achievement of an internal market, as 
provided for in Article 8(a) of the Treaty, 
in the broadcasting of television signals, it 
is necessary to take steps to adopt a 
common format for wide-screen 
transmissions; 
Whereas the wide-screen 16:9 aspect ratio 
has been adopted at world level by the 
International Telecommunication Union 
(ITU)9 for HDTV and it is desirable and 
possible to develop the market for 
advanced television services and products 
having the same wide-screen 16:9 aspect 
ratio; Whereas the wide-screen 16:9 aspect ratio 
has been adopted at world level by the 
International Telecommunication Union 
(ITU)9 for HDTV and it is desirable and 
possible to develop the market for 
advanced television services and products 
having the same wide-screen 16:9 aspect 
ratio; 
Whereas television services are currently 
delivered to the home by terrestrial 
systems, by satellite systems and by cable 
systems and it is essential that advanced 
wide-screen services should be made 
available to the largest possible number of 
viewers; Whereas television services are currently 
delivered to the home by terrestrial 
systems, by satellite systems and by cable 
systems and it is essential that advanced 
wide-screen services should be made 
available to the largest possible number of 
viewers; 
Whereas there is a need to establish 
common digital standards for the 
transmission of television signals whether 
by cable, or by satellite, or by terrestrial 
means as an enabling element for effective 
free-market competition and this is best 
achieved through the activities of a 
recognised European standardisation 
body; Whereas it is essential to establish 
common standards for the digital 
transmission of television signals whether 
by cable, or by satellite, or by terrestrial 
means as an enabling element for effective 
free-market competition and this is best 
achieved bv mandating a recognised 
European standardisation body taking 
account, as appropriateT of the outcome of 
consensus processes underway among 
market parties: 
CCIR Recommendation 709 defines "picture 
characteristics" including the wide-screen 16:9 
aspect ratio t 
12 
Initial Proposal Modified Proposal 
Whereas conditional access is an 
important matter for the consumers and 
providers of pay television services and for 
the rights holders of programmes: 
Whereas a widelv based consultation 
process involving the relevant economic 
actors in the European market has resulted 
in agreements on a number of issues 
concerning conditional access to digital 
pav television services: 
Whereas it is necessary to mandate the use 
of a Common European ^ Scrambling 
System in consumer equipment in the 
European Union in order to ensure that all 
pav television service providers can, in 
principle, provide all digital pay television 
consumers in the European Union with 
their programmes: 
Whereas it is appropriate, furthermore, to 
make provision for transcontrol of 
conditional access at cable television 
network head-ends and.for the licensing of 
conditional access technology in order to 
ensure market clarity on these issues: 
13 
Initial Proposal 
Whereas it is appropriate to repeal Council 
Directive 92/38/EEC and to issue a new 
Directive in the light of these 
developments in the market and 
technology; Modified Proposal 
Whereas it is appropriate to repeal Council 
Directive 92/38/EEC and to issue a new 
Directive in the light of these 
developments in the market and 
technology; 
Whereas technologies for advanced 
television services are developing rapidly 
and a common approach to their 
development is necessary; whereas 
separate and multiple actions by the 
Member States could lead to undesirable 
fragmentation of the market for products 
and services and to duplication of efforts; 
and whereas consequently such actions 
could be better achieved at Community 
level; Whereas technologies for advanced 
television services are developing rapidly 
and a common approach to their 
development is necessary; whereas 
separate and multiple actions by the 
Member States could lead to undesirable 
fragmentation of the market for products 
and services and to duplication of efforts; 
and whereas consequently such actions 
should be carried out at Community level* 
Initial Proposal Modified Proposal 
HAVE ADOPTED THIS DIRECTIVE: HAVE ADOPTED THIS DIRECTIVE: 
Article 1 
Member States shall take all appropriate 
measures to promote and support the 
accelerated development of televisions 
services in the wide-screen 16:9 format 
and using 625 or 1250 lines; Article 1 
Member States shall take all appropriate 
measures to promote and support the 
accelerated development of advanceoN 
television services in the wide-screen 16:9 
format and using 625 or 1250 lines,, 
Article 2 Article 2 
All television services transmitted to All television services transmitted to 
viewers in the Community whether by viewers in the Community whether by 
cable, satellite or terrestrial means shall: cable, satellite or terrestrial means shall: 
i) if they are in wide-screen format, only i) 
use a transmission system having the 
16:9 aspect ratio; 
ii) if they are in wide-screen format and ii) 
625 lines, and are not fully digital, use 
the D2MAC transmission system, or a 
transmission system which is fully 
compatible with PAL or SECAM; 
iii) if they are in high definition, and are iii) 
not fully digital, use the HDMAC 
transmission system. if they are in wide-screen format, only 
use a transmission system having the 
16:9 aspect ratio; 
if they are in wide-screen format and 
625 lines, and are not fully digital, use 
the D2MAC transmission system, or a 
transmission system which is fully 
compatible with PAL or SECAM; 
if they are in high definition, and are 
not fully digital, use the HDMAC 
transmission system. 
Article 3 Article 3 
Completely digital television systems must Completely digital television services must 
use a transmission system which has been use a transmission system which has been 
standardised by a European standardised by a recognised European 
standardisation body but are otherwise not standardisation body prior to the market 
covered by this Directive. launch of such services. 
15 
Initial Proposal Modified Proposal 
Article 3 bis 
In relation to conditional access to digital 
Pav-TV services broadcast to viewers in 
the Eigropean Union the following 
conditions shall apply : 
i) All consumer equipment, for sale or 
rent or otherwise made available in 
the European Union, capable of 
descrarnbling digital television 
signals, shall possess capability to 
allow the descrambling of such 
signals according to the common 
European, scrambling algorithm as 
standardised bv a recognised 
European standardisation body: 
ii) Conditional Access systems operated 
on the market in the European Union 
shall have me necessary technical 
capability for cost effective 
transcontrol at cable head-ends 
allowing the possibility for full 
control by cable television operators 
at local or regional level, of the 
services using such conditional 
access systems: 
iii) In connection with the inclusion bv 
manufacturers of conditional access 
systems in consumer equipment, the 
following conditions shall applv: 
a. where conditional access 
systems are licensed to 
manufacturas for inclusion in 
receivers this shall be done on 
fair, reasonable ami non-
diiwriminatftry terms; 
Initial Proposal Modified Proposal 
b. licensing or other provision of 
conditional access systems to 
manufacturers for inclusion in 
receivers shall be done in such a 
•*way as not to prevent the 
inclusion of either another 
conditional access system or a 
common interface in the receiver, 
provided that relevant security 
conditions relating to the 
conditional access system are 
met. 
Article 4 
Any television set with an integral viewing 
screen of visible diagonal greater than 42 
cms, which is put on the market for sale or 
rent in the Community shall be fitted with 
at least one standardised (by a recognised 
European standardisation body) open 
interface socket permitting simple 
connection of additional decoders or 
peripherals. Article 4 
Any television set with an integral viewing 
screen of visible diagonal greater than 42 
cms, which is put on the market for sale or 
rent in the Community shall be fitted with 
at least one standardised (by a recognised 
European standardisation body) open 
interface socket permitting simple 
connection of additional decoders or 
peripherals. 
Article 5 
Any wide-screen 16:9 television service 
which is received by and re-distributed on 
cable television systems shall be re­
distributed on such systems in the wide-
screen 16:9 format. Article 5 
Any wide-screen 16:9 television service 
which is received by and re-distributed on 
cable television systems shall be re­
distributed on such systems in the wide-
screen 16:9 format. 
Initial Proposal 
Article 6 
Before 1 January 1996 and every 2 years 
thereafter the Commission shall review 
this Directive and submit a report to the 
European Parliament, to the Council and 
to the Economic and Social Committee on 
market and technological developments, in 
particular relating to developments in 
digital technology. If necessary, the 
Commission shall make proposals to the 
Council to adapt this Directive to these 
developments. if 
Modified Proposal 
Article 6 
Before 1 January 1996 and every two 
years thereafter the Commission shall 
review this Directive and submit a report 
to the European Parliament, to the Council 
and to the Economic and Social 
Committee on market and technological 
developments, in particular relating to 
developments in digital technology and 
also to market developments on 
conditional access to digital television 
services. If necessary, the Commission 
shall make proposals to the Council to 
adapt this Directive to these 
developments. A new regulatory 
framework for completely digital 
television systems could thus be drawn up 
as from the first revision, if necessary. 
Article 7 Article 7 
Directive 92/38/EEC is hereby repealed Directive 92/38/EEC is hereby repealed 
with effect from the date six months after with effect from the date six months after 
the date of notification of this new the date of notification of this new 
Directive. Directive. 
Article 8 Article 8 
1. Member States shall brinL 
no later dan 6 months after the date 
of its notification the laws, regulations 
and administrative provisions 
to comply with Member States shall bring Into force 
no later than 6 months after the date 
of its notification the laws, regulations 
and administrative provisions 
necessary to comply with this 
Directive. They shaH forthwith inform Directive. They shaH forthwith inform 
Initial Proposal Modified Proposal 
2. When Member States adopt these 
provisions, these shall contain a 
reference to this Directive or shall be 
accompanied by such reference at the 
time pftheir official publication. The 
procedure for such reference shall be 
adopted by Member States. 
3. Member States shall communicate to 
the Commission the texts of the 
provisions of national law which they 
adopt in the field governed by this 
Directive. 3. 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. 
Member States shall communicate to 
the Commission the texts of the 
provisions of national law which they 
adopt in the field governed by this 
Directive. 
.<*% m 
This Directive is addressed to the Member 
States. 
Done at Brussels, (date) 
For the European Parliament Affole? 
This Directive is addressed to the Member 
States. 
Done at Brussels, (date) 
Foe the European Parliament 
Foe the Council 
A 
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