COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 24.07.1996 
C()M(%) 395 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
The Information Society: From Corfu to Dublin 
The new emerging priorities 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
on 
"The Implications of the Information Society 
for European Union Policies 
Preparing the next steps" 

COMMUNICATION FROM THE COMMISSION 
to the Council, the European Parliament, the Economic 
and Social Committee and the Committee of the Regions. 
on 
The Information Society: From Corfu to Dublin 
The new emerging priorities 
1. The principle of an Information Society Council was established by the Corfu 
Summit 24/25 June 1994 on the basis of the conclusions of the Bangemann report 
"Europe and the global information society". The Summit considered "that the 
importance and complexity of the issues raised by the new information society justify 
the setting up of a permanent co-ordination instrument...with a view inter alia to 
ensuring a co-ordinated approach in the Council. " The Corfu Council invited the 
Commission to set up an Action Plan covering the measures needed at Community 
level. 
The Action Plan - adopted on 19 July 1994 and entitled "Europe's way to the 
Information Society" - was discussed in the first Information Society Council on 28 
September 1994. The Council invited the Commission to take up a number of 
measures in fields outlined in the Action Plan. The guidance given by the Council 
provided in particular an important impulse towards the liberalisation of 
telecommunications. 
The Action Plan has successfully established a first framework for the European 
Union information society policy. On this basis, good progress has been made over 
the past two years: 
As regards the legislative framework, the Commission has presented a 
complete reform package leading to full liberalisation in telecommunications 
by 1st of January 1998. The fourth Framework Programme on research and 
technological development is succesfully being implemented and it 
incorporates three specific programmes related to information and 
communication technologies. Several measures aimed at increased awareness 
building have been launched. The G7 Conferences held in Brussels in 
February 1995 and in South Africa in May 1996 also contributed to raising 
awareness. 
Most of the measures outlined in the Action Plan have either been realised or 
are being launched. However, some actions are pending as their preparation 
takes more time than expected, e.g. information security. 
Valuable experience has been gained in the process of the implemention of 
the Action Plan. The Commission has now a more comprehensive picture of 
the measures necessary to achieve the objectives of its information society 
policy. In addition new questions and issues have emerged. It is therefore 
time to review the Action Plan in order to give the information society a new 
political impetus. This is the objective of the Information Society Council 
on 8 October 1996. 
2. Four main policy lines have been identified as priorities of equal importance: 
(i) Improving the Business environment 
European businesses have started to adapt to the increasing competitive pressure and 
to grasp the enormous opportunities of the information society. But for this difficult 
exercise they need a favourable business environment. This means in particular that 
full telecommunication liberalisation must be effectively implemented throughout 
the European Union by the 1st of January 1998. It also means that increased 
transparency and consistency of national regulation related to information society 
services is needed to ensure fair competition and the functioning of the internal 
market. Finally, more attention needs to be given to the speedy take-up of 
information and communication technologies by the various sectors of the economy 
including SMEs. 
(ii) Investing in the future 
The information society means a knowledge-based society. In order to enhance 
Europe's knowledge-base, information society related research should have a key 
role in the 5th Framework Programme as stated in the first orientations that the 
Commission adopted on 10 July 1996. The Commission will elaborate appropriate 
measures to respond to the invitation of the European Summit at Florence "to 
rapidly work out an action plan on the initiative 'Learning in the Information 
Society". 
(iii) People at the centre 
Putting people at the centre of the information society policy is a Commission 
priority, i.e. to respond better to their expectations and concerns on issues such as 
access to a wide range of services and content. In practice the Commission intends 
to advance towards a closer integration of Structural Funds and the information 
society policies to address social questions, to protect consumer interests and to 
improve the quality of public sector services. 
(iv) Meeting the global challenge 
Increasing globalisation means effort should be put on defining global rules. The 
Commission considers the completion of the WTO negotiations highly important in 
this respect. An information society of a truly global nature means increasing 
collaboration with our neighbours and helping integrate the developing world to the 
information society of the 21st century. 
3. The Commission hereby submits the following documents to begin responding to 
some of these new political priorities: 
(i) A Communication on "The implications of Information Society on European 
Union Policies - Preparing the Next Steps". This is of particular political 
importance as it lays the foundation for adapting the Action Plan which the 
Commission will carry out by the end of this year in order to take into account new 
strategic priorities. 
(ii) A Green Paper on "Living and Working in the Information Society: People first" 
which is intended to deepen the political, social and civil dialogue on the most 
important social and societal aspects of the information society. 
(iii) A Communication on "Standardisation in the Information Society" examines 
how, in the light of the characteristics of the ICT market and the ICT 
standardisation process, the best possible conditions can be created for the drawing 
up of the standards needed for the implementation of the information society. 
(iv) A draft directive on "Regulatory Transparency in the Internal Market for 
Information Society services " which sets up an information mechanism on legislative 
initiatives of the Member States. 
The Commission invites the Council, the European Parliament, the Economic and 
Social Committee and the Committee of the Regions to give their opinion on these 
key policy orientations in order to prepare a revised Action Plan in time for the 
Dublin European Council. 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS on 
"The Implications of the Information Society 
for European Union Policies 
Preparing the next steps" 
1. INTRODUCTION 
2. FUTURE POLITICAL PRIORITIES 
2.1. Improving the Business Environment 
a. Making a Success of 1998 
b. Making the Internal Market Real 
c. Facilitating Industrial Change 
2.2. Investing in the Future 
a. Enhancing our Knowledge Base 
b. Improving Education and Training 
c. Addressing Sustainable Development 
2.3. People at the Centre 
a. Enhancing European Integration 
b. Protecting Consumer Interests 
c. Improving Public Sector Services 
d. Ensuring Cultural Diversity 
2.4. Meeting the Global Challenge 
a. Defining Global Rules 
b. Collaborating with our Neighbours 
c. Improving Global Integration 
3. THE NEXT STEPS 
1c 
The information society has in recent years moved to the top of the European Union 
political agenda. This development is an explicit recognition of the important role that 
new applications and services can play in addressing the challenges of global 
competitiveness and employment. The information and communication industries are 
the fastest growing of the world, growing at an annual rate of 7 to 8 % per year. Their 
contribution of world gross domestic product is expected to double by the year 2000 
to approximately 10 %. This situation is matched in Europe with very strong 
opportunities for broadcasting, computers software, electronics, publishing and 
telephone companies. Whilst Europe is strong in some segments of the market, we are 
still lagging the United States and Japan in several key areas. It is absolutely essential 
for the future of all sectors of the economy and for Community citizens that Europe 
succeeds in these sectors. 
A comprehensive European Union information society strategy was launched in July 
1994 with the submission by the European Commission of an Action Plan entitled 
nEurope's Way towards the Information Society1". The Action Plan, provides the 
European Union with an integrated information society framework encompassing a 
number of key European Union policy areas, including telecommunications, research 
and development, innovation, competition, SMEs, economic and social cohesion, 
audio-visual, international relations and culture. 
While the goals outlined in the Action Plan remain valid, the pervasive nature of the 
information society and recent global developments require the updating, 
reinforcing and re-adjusting of actions already undertaken and the 
incorporation of the information society dimension in policy areas not originally 
addressed in the Action Plan. In addition, the multifaceted nature of the information 
society implies a need for greater policy co-ordination between the various Community 
policies and between the Communities different instruments and funding mechanisms. 
Against this background, the objective of this Communication is to indicate the impact 
of the information society on European Union policies, thereby highlighting future 
priorities. 
2.1. IMPROVING THE BUSINESS ENVIRONMENT 
The information society is rapidly and radically changing the business environment and 
putting additional competitive pressure on European industry. Europe must not miss 
the chance to increase its competitiveness and therefore improve the employment 
situation. European businesses have started adapting to the new situation and have a 
good basis of workforce, capital and technology. Coping with the changes however is 
a complex issue where no pre-defined solutions exist and therefore it is highly risky. In 
order to undertake the necessary adjustments, European businesses need a clear and 
predictable framework that will enable them to take full advantage of the new market 
potential 
^OM (94) 347 
a. Making a Success of 1998 
The establishment, by 1st January 1998, of a new regulatory framework for 
telecommunications based on full liberalisation, will play a vital role in unleashing the 
private investments required to create the communication infrastructure necessary for 
the development of the information society in Europe. Competition is necessary to 
improve the quality of communication services, drastically reduce prices and trigger 
the emergence of a plethora of new services. 
The European Council at Florence underlined the importance of liberalisation and the 
creation of an internal market for telecommunications. It invited the Council of 
Ministers to move further on the way towards liberalisation. 
The Commission and Member States have already made substantial progress in 
liberalising a number of major market segments ahead of 1998. These include mobile 
and satellite communications, use of cable television networks for telecommunications 
as well as of alternative infrastructure for already liberalised services as of 1 st of July 
1996. 
Certain Member States have asked for derogations2 from the scheduled timetable for 
the introduction of full competition. The Commission is considering these requests and 
the decisions on these derogations, will be taken following a public consultation 
process3. However, given the importance of a liberalised telecommunications sector for 
the whole economy, those Member States which have requested derogations are 
invited to shorten the period or where not justified, to renounce them. 
Making a success of 1998 depends not only on the timely adoption of the regulatory 
framework but, more and more, on its effective implementation. Incomplete, divergent 
or late transposition, as well as inefficient application of the regulatory package at 
Member State level, could lead to distortions of both competition and the functioning 
of the internal market. National Regulatory Authorities will need the resources and 
independent authority to assume their full role in this respect. The changes to be faced 
parallel in many ways theses faced in implementing the single market. Another 
important element is the assessment under competition law of the behaviour of the 
dominant telecommunications operators in the run up to the 1998 deadline. This 
concerns, in particular, alliances, agreements and pricing strategies. 
Telecommunications is by definition a sector that is trans-border, so in addition to the 
minimum harmonisation measures, additional co-ordination between the relevant 
regulatory authorities is necessary. Particularly in the fields of licensing, frequency 
allocation, numbering and external relations (e.g. with respect to the International 
Telecommunications Union) the need for intensified co-ordination is already becoming 
evident. The European Union should be prepared to assume its responsibility in this 
context. The Commission is also examining to what extent it may be necessary to 
create a telecommunications regulatory function at European Union level. 
2 Greece, Ireland, Luxembourg and Portugal have asked for derogations. 
3 This consultation will respect the usual Community principle of confidentiality 
b. Making the Internal Market Real 
The new information society products and services require the scale of the Internal 
Market to develop to their full potential. The Commission must therefore continue its 
efforts in safeguarding and improving the proper functioning of the Internal Market. 
Remaining barriers should be removed by directly applying the principles of the Treaty, 
in particular the free circulation of goods (art.30), the free provision of services(art.59) 
and the freedom of establishment (art. 52). The Commission's aim is to ensure that any 
possible regulatory response to the new services, aimed at the protection of general 
interest objectives4 is carried out in the framework of the Internal Market. 
New applications and services are developing very fast and it is impossible to predict 
which one will eventually find a market. Over-hasty legislation should be avoided until 
it is clear where and what type of intervention is required. In addition, it is important to 
remove or prevent existing or emerging obstacles which may inhibit businesses from 
taking new initiatives and committing investments to them. To this end, the 
Commission is analysing potential barriers for certain new information society products 
and services, e.g. electronic commerce. 
Member States are currently undertaking to update their legislative framework in 
response to real, sometimes politically heightened pressure. Such actions could result 
in inconsistent national legislation thereby hindering the transborder provision of 
goods and services. In this context, to counter any threat to the integrity of the Internal 
Market, the Commission is proposing a directive concerning a regulatory transparency 
mechanism to cover information society services. This is aimed at ensuring the 
coherence and flexibility of national regulatory measures while at the same time 
minimising the risk of over-regulation at Community level. 
In certain areas, it might be necessary to establish regulation at Community level, with 
the objective of ensuring that information society products and services benefit fully 
from the advantages offered by an area without internal frontiers. Such a regulatory 
framework would also protect and stimulate creativity and innovation. Certain aspects 
of that regulatory framework are already underway5. The need for the establishment of 
a consolidated legislative framework for the information society and for 
telecommunications is also currently being examined. 
An additional new challenge for the regulatory framework will be the emerging 
technological convergence between telecommunications, electronic information 
services and broadcasting. The Commission is currently analysing the problem of the 
lack of relevant consistency with respect to the existing legal frameworks. 
User confidence must be ensured in order to achieve a wider use of the new services 
for commercial transactions as well as for the transmission of official documents. At 
the same time, this is also in the interest of the business world, since increased user 
confidence means increased demand. Therefore, means to ensure privacy, 
4such as the protection of privacy, the protection of minors, consumer protection, morality issues, 
public health, the protection of intellectual property rights, professional ethics, the dissemination of 
culture, the protection of pluralism, etc. 
5 Relevant Green Papers adopted by the Commission are "Copyright and related rights in the 
information society" (COM(95) 382 final), "The legal protection of encrypted services in the Internal 
Market" (COM(96) 76 final), and "The Commercial Communications in the Internal Market" 
(COM(96) 192 final ) 
4 
confidentiality and electronic authentification must be available. The Commission is 
preparing appropriate proposals. 
c. Facilitating Industrial Change 
Information and communication technologies (ICT) are critical to the future 
competitiveness of all industries, commerce and services(e.g. in the design and 
manufacture of products, in the products themselves and in the business processes). 
Success for Europe depends, therefore, on the speedy take-up of ICT by European 
enterprises in general. The concept of distributing good practices and applying 
benchmarking should be promoted in this respect. This is important especially for small 
and medium-sized enterprises (SMEs) which account for over two thirds of the 
European workforce and therefore play a central role in the creation of new job 
opportunities6. 
SMEs are crucial for innovation. The Green Paper on innovation has shown that there 
is a mismatch between Europe's scientific and technological potential and its record in 
innovation. Removing obstacles and the availability of the necessary instruments must 
be promoted (e.g. venture capital). 
SMEs are also vital to development and diversity of the new multimedia content 
market. This market demands flexibility and cultural proximity for the provision of 
tailor-made information services and it is dominated by newly created SMEs. Member 
States and the EU should provide the appropriate environment for SMEs to flourish. 
In particular they should devote considerable effort in order to increase understanding 
concerning the needs, priorities and obstacles (e.g. bureaucratic burdens), hindering 
the creation and running of SMEs and their use of ICTs 
For consistent and fast market development, "de facto" standards and publicly available 
specifications drawn up by market groups are increasingly important. This has 
significant consequences: avoiding dominant positions or monopolies; guaranteeing 
public interests and standards in public procurement. Standardization also plays an 
important role in this respect and is being addressed by a separate communication. 
2.2. INVESTING IN THE FUTURE 
The information society is predominantly a knowledge based society. Participating in 
the information society means more creativity, communicating faster, developing new 
ideas and learning how to learn throughout life. People and know-how are the main 
capital of Europe. For this reason, we have to strengthen our investment in enhancing 
our knowledge base and in improving education and training. 
Investing in the future also means that we preserve, as much as possible, the 
environment for the future generations. Sustainable development can benefit from the 
information society. The use of ICT offers major opportunities for less scare resource-
intensive life styles. 
6The European Social Fund, in particular objective 4 and ADAPT (Community initiative) can be used 
to facilitate these changes. 
5 
a. Enhancing our Knowledge Base 
Budgetary constraints are putting increasing pressure on funds available for research 
and technology (R&D) - in both the private and the public sectors. This may bring 
short term budgetary relief, but at the cost of cutting Europe's future ability to innovate 
and compete in the next century. There the stakes could not be higher. 
Community R&D policy has contributed to laying the foundations of today's 
information society achievements in Europe. This is not a task with a finite horizon. On 
the contrary, technology is pushing the horizon into unexpected new frontiers. This is 
why information society related research must have a central place in the 5th 
Framework Programme of R&D. 
The Commission has recently adopted a Communication7 on the first orientations of 
the Fifth Framework Programme. It introduces a clear concentration of effort on three 
key fields - one of which is the information society. Research in this field will aim at 
the development of technology, infrastructure, services, applications and content. It 
will be designed to better meet the increasing demands of industry and society. 
Given the speed of technological change it is essential to match the time scales of the 
programmes to the new realities. It is also necessary to focus ICT R&D efforts on 
themes of general interest addressing specific user needs in the information society and 
to the technologies needed to fulfil them. This implies the establishment and 
management of inter-disciplinary, inter-programme co-ordinated efforts which will 
reflect the convergence of industries and technologies. 
The Information society supports the vision of a "global research village". Europe 
needs high-speed research networks to be fully integrated into the international 
research world, as well as to improve cross-border collaboration between Member 
State national and European research institutes. 
b. Improving Education and Training 
The pace of change is increasingly fast and skills must be constantly adjusted to meet 
the changing needs of the work place as well as in the home. New information and 
communication technologies and new ways of learning have already been integrated in 
the Commission's education and training programmes8. The Commission has taken 
specific initiatives9, issued a White Paper on "Teaching and Learning - Towards the 
Learning Society" and will stimulate a wider discussion on the challenges of countering 
skills obsolescence of the adult workforce through a pro-active approach to adaptation 
and change through the Green Paper "Living and working in the information society: 
People first". 
7 Preliminary guidelines for the 5th Framework Programme of research and technological 
development COM/96/332/7 
8SOCRATES and LEONARDO DA VINCI as well as in the Telematic Applications Programme 
9The Task Force on Educational Software and Multimedia. 1996 has been proclaimed European year 
of life-long learning in order to raise public awareness of the importance of learning not only within 
the educational system but also at home and at work. 
6 
The Information Society Forum10 believes that the education and training must be 
quickly revised so that learning institutions are more responsive to the needs of the 
emerging industries. The Forum also stresses that introducing the information society 
in schools means changing the way schools work. This will not be easy because of the 
financial implications and traditional inertia. Education in the information society must 
move away from a system centred solely around teachers to focus more on learners. It 
must be build around learning and less around teaching. 
In recognition of the importance of the role of education and training the European 
Council at Florence has asked the Commission to quickly elaborate an action plan on 
"Learning in the Information Society". It will include the interconnection of school 
networks at European level, the promotion of multimedia educational content, and the 
stimulation of awareness and training of teachers and trainers to the use of new 
information society tools. 
In this respect, a major contribution is expected from the private sector through the 
establishment of public and private partnerships. 
c. Addressing Sustainable Development 
The concept of sustainable development reflects a growing awareness that current 
generations should meet their needs without compromising the quality of life of the 
future generations, without causing resource depletion and without causing 
environmental destruction. 
By way of example, telematic applications can help to reduce the requirement for 
transport infrastructure investment, urban congestion and pollution. This can be 
achieved both directly, with traffic management systems, and indirectly, as a result of 
professional applications such as teleconferencing and teleworking which will reduce 
the need for physical mobility. Monitoring of air pollution levels with links to traffic 
management systems could be used to re-route or stop traffic when air quality reaches 
a certain threshold limit. 
ICT can be a major tool for sustainable development even though environmentally 
friendly development is not automatically guaranteed. Much depends on the 
framework within which the new technologies are used. As the Information Society 
Forum states, there is a risk of a "rebound" effect where by collectivity gains - as it 
happened in the past - may create additional demands for material consumption and 
sustainability is lost. 
Influencing the behaviour of both citizens and of the businesses towards a sounder use 
of resources, will require the increase of awareness as well as the provision of the 
appropriate economic incentives (e.g. tax incentives). 
10 The Information Society Forum has been set up by the Commission to provide advice on 
information society issues and brings together all relevant sectors and interest groups. Its first report is 
entitled "Networks for people and their communities". 
7 
2.3. PEOPLE AT THE CENTRE 
The information society provides opportunities for enhancing individual lifestyles and 
the public interest in general. European citizens will enjoy a wider range of new 
services which will contribute to improving their quality of life, both at home and at 
work. In addition, the new technologies can potentially contribute towards overcoming 
social exclusion and regional disparities. However, the changes introduced by the 
information society also present new challenges for society, and care needs to be taken 
to ensure that the benefits are evenly distributed between different parts of the Union 
and citizens. 
Ensuring the public interest means that consumer protection will have to be adapted to 
the new conditions resulting from the rapid emergence of ICT-based products and 
services. 
a. Enhancing European Integration 
Active participation in society is more and more linked to having access to the 
information services while physical proximity is less important. The relevant 
disadvantages of peripheral regions can thus be reduced through direct connection. 
This offers new opportunities to participate in markets; in education and training; as 
well as having access to culture through on-line electronic libraries, museums and 
galleries. However, the participation in the information society of all European regions 
will not happen automatically, but requires active policy measures. 
One of the key factor for access to the information society is the availability of 
telecommunications infrastructure. However, a number of analyses11 suggest that, 
though converging in many ways, significant differences in levels of infrastructure 
development among Member States and regions remain or may even be newly created. 
Liberalization will increase the quality of services and will drive prices down. At the 
same time the obligation of universal service12 will ensure that basic telephony services 
which already include access to on-line services will be available for all at affordable 
prices. However, as private infrastructure investments are demand driven it is to be 
expected that access to the new and advanced services will be introduced at different 
speeds and conditions in the Community. 
To reduce the risks, local, regional and national initiatives are needed, not only to 
attract infrastructure investments but also to stimulate the demand for new information 
services. The transfer of experiences and best practice already developed by advanced 
regions could help in this respect (e.g. in strategy development, in the use of "tele-
cottages", in teleworking). However, there is still a great reluctance and lack of 
awareness. Rural areas and less favored regions need to develop specific initiatives in 
order to encourage private-public or cross-regional partnerships, elaborate regional 
strategies and launch pilot applications 
11 See in particular the study on "Assessment of the social and economic cohesion aspects of the 
development of the information society in Europe" prepared for the Commission on the basis of 
COM(94)347 final, Third Chapter, paragraph b). 
12Universal service is an evolving and dynamic concept. The Commission in its Communication 
COM (96)73 has undertaken to report by 1st of January 1998 on the scope, level, quantity and 
affortability of universal service and to consider the need for adaptation. 
8 
Some local and regional initiatives already benefit from support at European Union level 
under the relevant instruments in particular the ERDF (but also Social Fund, Trans-European 
Networks, R&D). Building on the experiences of existing initiatives, the Commission will 
further address these issues in the near future in order to advance towards a closer integration 
of information society aspects in the Structural Funds policies. 
The European information society also needs to reflect the shared values which form the basis 
of the European social model, including democracy and individual rights, equality of 
opportunity and social welfare and solidarity. In our rapidly changing world, it is important 
to ensure that the information society reinforces, rather than undermines these values. 
Emphasis must also be given to the specific needs of women, of older and disabled people, 
of less educated workers as well as of minorities. 
Against this background, the Commission has initiated a number of actions with the general 
objective of placing European men and women at the center of the European Union 
information society strategy. An Information Society Forum and a High-Level Group of 
Experts on social and societal aspects of the information society has been established. The 
deepening of the political, social and civil dialogue on these issues will be addressed by the 
Green Paper "Living and Working in the Information Society: People first". After the 
completion of the relevant consultation process the Commission will present action proposals. 
b. Protecting Consumer Interests 
Consumer interests must be safeguarded by systematically taking them into consideration 
during the development of European Union policies applicable to the information society. 
As a part of a this general approach, the Commission will initiate research actions aimed at 
developing information and communications technologies which are more user-friendly, and 
will seek to test pilot applications with the co-operation of consumer organizations. The 
Commission will also encourage the systematic involvement of consumer representatives both 
in the standardization process and in the consultation process which is an essential part of the 
development of any legislation applicable to information society issues. 
At the same time, unwanted or offensive information content disseminated on on-line services, 
as well as on the Internet and the protection of minors are of particular concern. The 
Commission is currently studying this issue, inter alia in the context of the Green Paper on 
"New Audiovisual Services". It is also clear that solutions also have to be found within the 
international context. 
Consumer awareness and understanding of the impact and implications of the information 
society on their daily lives should be further improved in order to enable them to appreciate 
the benefits of opening up of telecommunication markets but also of the risks arising from 
the ICT developments. In this context, the theme of "Count-down to 1998" should be 
promoted. It is also important to help the consumer to navigate and to make informed choices 
between alternative media content (i.e. media competences). This will imply a greatly 
increased effort in consumer education, not only in schools but also for adults. 
c. Improving Public Sector Services 
The public sector must increasingly use new technologies to improve the quality, 
openness, transparency and user-friendliness of public services. The use of ICTs is also 
required to boost the efficiency of public administrations, something which is becoming 
a key requirement in the context of economic globalization and budgetary restrictions. 
The Commission ought to become a front-runner in the use of ICT tools in its 
operations, thus setting a Europe-wide example for public administrations. This 
concerns the procedures and tools used in the daily work of civil servants; the links 
with the Commission's decentralized agencies; as well as relations with Member State 
administrations and the general public. In this respect, the Commission has started to 
use electronic submission of proposals in the ACTS and ESPRIT R&D programmes. 
In addition, coherence must be enhanced between the public services networks of the 
Member States in order to ensure seamless communication between all levels of public 
administration across the European Union. 
All levels of public administration, whether local, regional, national or European must 
facilitate public access to public information by the use of new applications (i.e. public 
information kiosks or on-line systems). 
d. Ensuring Cultural Diversity 
Content is an essential component of the information society, both as a major and 
growing source of business revenue and as a vehicle of ideas and values contributing to 
the preservation and promotion of Europe's cultural and linguistic diversity. Therefore, 
while the integration of the European content industry into the global economy must 
gain momentum maintaining European cultural diversity is a central issue. 
Europe's vast cultural heritage could offer a major potential advantage in economic 
terms. Its optimal exploitation will largely depend upon the development of a 
consistent regulatory framework for new products, services and content. This in turn 
will to a large extent depend on content protected by copyrights and related rights. 
The European Union recognizes the growing importance of the audiovisual 
programme industry and has launched a number of initiatives13. 
The media sector is undergoing profound structural changes. On the one hand, big 
media conglomerates are extending their activities from printing and traditional 
broadcasting to electronic publishing and digital television services. It is clear that the 
large capital investments that are necessary for the participation in the new media 
market are possible only for actors of a certain size. Nevertheless, pluralism and 
cultural diversity are central values to the European democracies. 
13 This is reflected ii. the MEDIA II and INFO 2000 Program, the proposal for multi-lingualism, the 
preparation of a Green Paper on "New Audiovisual Services" and the revision of the "Television 
without Frontiers" Directive. 
10 
On the other hand, the information society allows more individualized content 
production and distribution and will widen the spectrum of information services. A 
good example of this is the Internet. The future interactive digital services will not be 
characterized by a limited availability of information, but by the opposite, the surplus 
of information. Thus the development of new services and specialized channels will 
contribute significantly to pluralism and cultural diversity. 
The mass media have a strong influence on public opinion. Therefore, in all Member 
States regulation on media concentration is in place. However, an initiative at 
European Union level has become necessary in order to coordinate regulation, to 
accordingly strengthen the internal market and to avoid re-fragmentation from the 
inconsistent implementation of regulation across the Member States. The Commission 
is examining whether additional measures will also be necessary so that licensing can 
promote open access. 
2.4. MEETING THE GLOBAL CHALLENGE 
The increasing competitive pressure resulting from the progress in communication 
networks leads to a radical restructuring of companies and is prompting a wave of 
major global corporate alliances. The restructuring of the economy is further 
reinforced by the technological convergence of information-related industries, i.e. 
telecommunications, computers, electronics and content. 
Globalization also dictates a change in the socio-economic and institutional 
organization of Member States towards greater flexibility and efficiency in an already 
difficult context of high unemployment. At the same time, globalization is opening up 
new market opportunities which can help to increase economic growth and 
employment, not only for the industrialized countries but also for the developing 
countries which launch actions in order to participate in the global information society. 
a. Defining Global Rules 
Global liberalization of telecommunications will offer many opportunities for 
community Information Industries. It is important to complete by 15 February 1997, 
the WTO negotiations on the liberalization of basic telecommunications services. The 
overall outcome must reflect in comparable and effective access to our major 
competitors markets and sufficient commitments from newly industrialized countries in 
particular. This agreement must also include fair and open arrangements relating to the 
global satellite communications systems. Successful participation in the negotiations 
will depend on the establishment of effective coordination mechanisms in order to 
ensure that the Union speaks with one voice. 
In addition, discussions on an Information Technology Agreement could help to lower 
the cost of IT products for multimedia through the removal of trade obstacles for IT 
products and the promotion of mutual recognition. In this context it is becoming also 
necessary that the Commission reviews and redefines a new policy for multimedia 
content classification. 
Basic global rules have to be established in order to create a level playing field, for 
example: securing network interconnection and service interpretability, protecting 
11 
intellectual property rights (IPRs), information security, protecting privacy and 
personal data, promoting global standards, removing trade barriers, securing the free 
flow of information, avoiding distortions of competition, and addressing the cultural 
and linguistic dimension. 
Many of these questions are already being addressed in appropriate multilateral fora 
such as the G7, the World Trade Organization (WTO), the International 
Telecommunications Union (ITU), the Organization of Economic Co-operation and 
Development (OECD), World Intellectual Property Organization (WIPO) and the 
World Bank. 
However, where multilateral negotiations with industrialized countries and emerging 
economic powers do not bring effective openness of foreign markets, bilateral 
negotiations must be pursued, especially as regards procurement rules for 
telecommunication equipment and Mutual Recognition Agreements (MRAs). 
The European Union competition policy must continue to be based on a dual 
approach. On the one hand, it acknowledges that alliances are required to ensure the 
critical size of European businesses necessary for global presence and competitiveness. 
On the other hand, it should prevent the foreclosure of markets and reduce dominant 
positions. 
b. Collaborating with our Neighbours 
The European Union also bears a particular political responsibility in integrating its 
neighbours from Central and Eastern Europe (CEEC), the Commonwealth of 
Independent States (CIS) and the Mediterranean. These countries already benefit from 
Community development and co-operation instruments, in particular from PHARE and 
MEDA. A regional dialogue on the information society has also been launched with 
the setting up in June 1995 of an EU-CEEC Forum and the organization in May 1996 
of a Euro-Mediterranean Conference. 
As far as candidate countries for European membership are concerned, special effort is 
required to associate them more closely with Community information society activities. 
In particular for the associated countries in Central and Eastern Europe, such dialogue 
will be pursued in the context of the association agreements and the structured 
dialogue. A progressive convergence of regulatory frameworks and better integration 
into European networks and R&D programs must also be achieved. A specific actions 
plan will be presented at the next plenary meeting of the EU-CEEC Forum to be held 
in Prague in September 1996. 
Proactive support for regulatory reforms, application and infrastructure development 
as well as R&D efforts must also be a priority in the context of the follow-up to the 
Euro-Mediterranean conference. Helping the European Union's Mediterranean 
neighbours meet the challenges of the information society thus supporting their 
integration in to the global economy is an issue of utmost importance. 
c. Improving the Integration of Developing Countries 
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At a global level, the Conference on the Information Society and Development 
(ISAD), hosted by South Africa in May 1996, was an important step towards the 
better integration of developing countries into the global information society. Based on 
the results of this conference a Communication on "Information Society and 
development" will be presented by the end of 1996. The existing co-operation and 
development instruments must be redefined and re-orientated to give the development 
of the telecommunications infrastructures and applications a higher priority in 
development policies. This is not only a prerequisite for participating successfully in 
international trade, but also offers new opportunities for their internal development. 
The Council of Ministers and the European Parliament, the Economic and Social 
Committee and the Committee of the Regions are invited to give their views on the key 
elements in this Communication. In the light of these consultations the Commission 
will table an adapted and updated action plan before the end of the year, as well as 
submitting new proposals for a number of measures which are already identified in the 
text. 
13 

ISSN 0254-1475 
COM(96) 395 final 
DOCUMENTS 
EN 16 15 
Catalogue number : CB-CO-96-417-EN-C 
ISBN 92-78-07887-5 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
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