A4-0129/95

Resolution concerning the draft Commission Directive amending Commission Directive 90/388/EEC regarding the abolition of the restrictions on the use of cable television networks for the provision of telecommunications services (C4- 0120/95)

The European Parliament,

- having regard to the Treaty establishing the European Community, and in particular Articles 59 and 90 thereof,

- having regard to the draft Commission Directive, C4-0120/95,

- having regard to its resolutions of 20 April 1993 on the Commission's 1992 review of the situation in the telecommunications sevices sector ((OJ C 150, 31.5.1993, p. 39.)), 30 November 1994 on the recommendation to the European Council: 'Europe and the global information society' and the communication from the Commission to the Council and the European Parliament and to the Economic and Social Committee and the the Committee of the Regions: 'Europe's way to the information society: an action plan' ((OJ C 363, 19.12.1994, p. 33.)) and 7 April 1995 on the communication from the Commission 'Green Paper on the liberalization of telecommunications infrastructure and cable television networks' (Part one: principle and timetable) ((Minutes of that Sitting, Part II, Item 11.)),

- having regard to Rule 51 of its Rules of Procedure,

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Research, Technological Development and Energy and the Committee on Culture, Youth, Education and the Media (A4-0129/95),

A. whereas the development of the services and applications of the information society presupposes the existence of a sophisticated telecommunications infrastructure of a kind which will make a radical cut in user costs possible,

B. whereas the widespread establishment of broad-band networks will call for a substantial investment of time and money,

C. whereas the technical resources currently available, while not matching the definition of the future 'information highways', should nevertheless pave the way for substantial qualitative and quantitative advances in the desired direction,

D. whereas the cable television networks offer considerable scope for supplying individual users,

E. whereas only limited investment will be required to bring these networks into line with telecommunications service needs, and whereas they can quickly be turned into a competitive alternative to the infrastructure in the hands of telecommunications operators,

F. whereas, further, the recent progress achieved in the treatment of numerical signals, in particular data compression, has paved the way for increased use of the telephone network through the transmission on that network of audiovisual programmes,

G. whereas, despite the acknowledged advantages of competition in respect of telecommunications and cable television, and despite the undertakings given in the Treaty, the Member States have not brought into line their legislation on telecommunications and cable television,

1. Welcomes the substance of the draft Commission directive;

2. Warns the Commission against the tendency to underestimate the importance of public service tasks and the related constraints and calls on it once again to give as quickly as possible, in connection with the liberalization of various sectors, a definition of the concept of public service;

3. Opposes moves towards unilateral liberalization which would affect only the telecommunications sector, thereby giving cable network operators an unfair competitive advantage;

4. Points out that the liberalization envisaged by the draft Commission directive merely anticipates the larger-scale opening up to competition scheduled for 1 January 1998 and calls on the Commission to ensure that its measures are consistent with the rules based on Article 100a of the Treaty now being drawn up, particularly as regards the universal service;

5. Calls, therefore, on the Commission to alter its text by incorporating the following proposed modifications:

(Modification 1)

Recital 3, last sentence

>Original text>

The example of the US market shows that new services combining image and telecommunications emerge when regulatory barriers are removed.

>Text following EP vote>

The example of the US market, where telecommunications services have been liberalized only in part and where the separation of short- and long-distance voice telephony, data transmissions and cable television was recently confirmed by Congress, shows that new services combining image and telecommunications emerge when certain regulatory barriers are removed, without, however, calling into question the need for a precise legislative framework to safeguard the public interest.

(Modification 2)

Recital 5

>Original text>

5. The current restrictions imposed by Member States on the use of cable TV networks for the provision of services other than the distribution of TV- broadcast aim to prevent that public voice telephony be provided on networks other than the public switched telephone network, to protect the main source of revenues of the telecommunications organizations.

>Text following EP vote>

5. The current restrictions imposed by Member States on the use of cable TV networks for the provision of services other than the distribution of TV- broadcast aim to prevent that public voice telephony be provided on networks other than the public switched telephone network, to enable telecommunications organizations which have been granted exclusive rights in return for meeting precisely defined public service requirements to meet those requirements under conditions of financial parity, including by means of the equalization of charges among the various categories of service and geographical areas.

(Modification 3)

Recital 17

>Original text>

17. Notwithstanding the abolition of the current restrictions on the use of the cable networks, the broadcasting of TV-channels to the general public via these networks will continue to be subject to specific rules adopted by Member States in accordance with Community law and is not, therefore, subject to the provisions of this Directive.

>Text following EP vote>

17. The above argument can be applied, mutatis mutandis, to the cable market, where the monopolies enjoyed in many cases by the cable-TV companies can be justified only in part by the constraints inherent in the universal service; these monopolies have enabled the firms concerned to impose high charges as regards both their operating cost and the services provided. The comfortable situation of many of these companies and the lack of any possible market sanction have been at least as significant as reasons for their slowness in proposing new services as the problems in gaining access to infrastructures. This is why, following the abolition of the current restrictions on the use of cable-TV networks, the broadcasting of TV-channels to the general public via these networks must also be opened up to competition with effect from 1 January 1998, not least from the current telecommunications operators, thus necessitating a revision of the Community law applicable. Although this matter is not covered by the provisions of this Directive , the Commission should ensure that the Community rules currently under preparation in the sphere of telecommunications infrastructures (Green Paper) and cable-TV ('television without frontiers') require all operators to guarantee all suppliers of services and programmes fair conditions of access to infrastructures and consumers respect for the principle of freedom of choice at attractive and economically justified prices.

(Modification 4)

ARTICLE 1(2)

Article 4, second paragraph a, first indent (Directive 90/388/EEC)

>Original text>

- withdraw all restrictions for the supply of transmission capacity on cable TV networks and allow operators to use the cable networks to deliver their services;

>Text following EP vote>

- withdraw all restrictions for the supply of transmission capacity on cable TV networks and from 1 January 1998 cable TV capacity on telecommunications networks and allow operators to use all these networks to deliver their services;

(Modification 5)

ARTICLE 2

>Original text>

When withdrawing restrictions for the use of cable-TV networks, Member States shall take the necessary measures to ensure transparency and non-discriminatory behaviour where a single operator provides both telecommunications and cable-TV networks, and in particular the separation of financial accounts as concerns the provision of each network.

>Text following EP vote>

When withdrawing restrictions for the use of cable-TV networks and telecommunications networks, Member States shall take the necessary measures to ensure accounting transparency and non-discriminatory behaviour where a single operator provides both telecommunications and cable-TV networks, and in particular the separation of financial accounts as concerns the provision of each network.

>Original text>

Where cable-TV networks are used for telecommunications purposes, Member States shall also ensure that these cable-TV operators keep separate financial accounts regarding their activity as network capacity provider for telecommunications purposes.

>Text following EP vote>

Where cable-TV networks are used for telecommunications purposes, Member States shall also ensure that these cable-TV operators keep separate financial accounts regarding their activity as network capacity provider for telecommunications purposes.

>Original text>

Where a single operator provides both networks as referred to in paragraph 1, the Commission will, by January 1 1998, carry out an overall assessment of the impact of such joint provision in relation to the aims of this Directive.

>Text following EP vote>

Where a single operator provides both networks as referred to in paragraph 1, the Commission will carry out an overall assessment of the impact of such joint provision in relation to the aims of this Directive and report to the Council and Parliament before 1 January 1998 on the results of that assessment and the information supplied by the Member States pursuant to Article 3 of this Directive, including in its report any requisite proposals for rules pursuant to Article 100a of the Treaty.

6. Instructs its President to forward this resolution to the Council and Commission.