Opinion of the Committee of the Regions on the 'Proposal for a European Parliament and Council Decision on the coordinated introduction of mobile and wireless communications (UMTS) in the Community` (98/C 373/04)

THE COMMITTEE OF THE REGIONS,

having regard to the proposal for a European Parliament and Council Decision on the co-ordinated introduction of mobile and wireless communications (UMTS) in the Community [COM(1998) 58 final - 98/0051 (COD)] ();

having regard to the Council Decision of 24 March 1998, in accordance with the first paragraph of Article 198c of the Treaty establishing the European Community, to consult the Committee on the subject;

having regard to the Bureau Decision of 15 July 1998 to instruct Commission 3: Trans-European Networks, Transport and the Information Society to draw up the relevant opinion;

having regard to the draft opinion (CdR 159/98 rev.) adopted by Commission 3 on 7 July 1998 (rapporteur: Mr Nordström),

at its 25th plenary session of 16 and 17 September 1998 (meeting of 17 September) adopted unanimously the following opinion.

1. Introduction

1.1. The Commission proposal lays down conditions with a view to the coordinated introduction by Member States of the third generation mobile and wireless communications (UMTS) in the European Union on the basis of the existing European Union legal framework. UMTS will offer users a wireless access to the Internet and other multi-media services in addition to mobile telephony and messaging services already available today.

1.2. On 15 October 1997 the Commission presented a Communication on the strategy and policy orientations with regard to the further development of mobile and wireless communications (UMTS). This communication reported on the consultations with Member States and sector players on the basis of a previous communication of 29 May 1997 and set out an action plan for creating a favourable environment for the development of UMTS.

1.3. This decision proposal is a response to the Council's invitation to the Commission 'to submit by early 1998, a proposal for a European Parliament and Council Decision which would enable orientations to be established on the substance of the issue and facilitate within the existing Community legal framework the early licensing of UMTS services and, if appropriate and on the basis of the existing repartition of competencies, in respect of coordinated allocation of frequencies in the Community and pan-European roaming`.

2. Background

2.1. The 1994 Green Paper on mobile and personal communications already stressed the importance of the future development of mobile and personal communications in the Community and at global level. The Community has played a major role in the development of the second generation of mobile communications including GSM and related digital communications services; this is now a great market success with more than 70 million users in more than 110 countries. Mobile communications used to connect computers and to access the Internet as well as satellite-based personal communications systems are also appearing and developing against the background of full opening to competition of telecommunications markets in most Member States on 1 January 1998.

2.2. Building on these developments, the communications industry is developing a strategic vision on the next generation of digital mobile systems referred in Europe as the Universal Mobile Telecommunications System (UMTS). Details of future service concepts and user requirements therefore need to be considered in order to formulate regulatory, frequency and standardization responses at a Community and national level.

2.3. The European market for cellular mobile services including UMTS is expected to reach in the year 2005 over ECU 100 billion in annual revenue with some 200 million subscribers. The global market is expected to grow even faster, in particular in Asia. UMTS should lead to the creation of tens of thousands of new jobs in the Community in a highly advanced and strategic sector of the economy.

2.4. The first phase of UMTS development will lead to the introduction of UMTS services by 2002.

2.5. A strategy for the introduction of UMTS in the European Union, taking into consideration the need to promote the UMTS standard as a key element of the recommendation for the next generation mobile communications (named IMT-2000), is currently in preparation at the International Telecommunications Union (ITU) for implementation in the year 2000: the agreement reached in ETSI on 29 January 1998 on the UMTS radio interface technology now positions UMTS as a strong candidate for acceptance as a global standard in this global context.

3. Gist of the proposal

3.1. Aims and objectives

3.1.1. The purpose of the decision is to provide without delay at Community level for specific Member State measures regarding the harmonized introduction of UMTS in the European Union; the Licensing Directive or individual action by Member States are not sufficient for this purpose.

3.1.2. A European Union decision is considered to be the most effective way to ensure harmonized and rapid introduction of compatible UMTS services so as to secure Europe-wide roaming of future UMTS services through the timely and Europe-wide availability of frequency spectrum for UMTS as well as common, open and internationally competitive standards to ensure the development of Community-wide and pan-European services.

3.1.3. This decision extends the harmonization process of the Licensing Directive, which involves the CEPT (European Conference of Postal and Telecommunications Administrations) and comitology. This will apply to both general authorizations and to individual licences. The decision also requires that licences be based on European standards developed by the ETSI (European Telecommunications Standards Institute) where available.

3.2. Summary and content of the proposed decision

3.2.1. Article 1 defines the basic purpose of the decision.

3.2.2. Article 2 contains the definition of UMTS. Orientations on the substance of the issue are required by the Council. UMTS is a new generation of services which needs to be defined taking into consideration technological progress and work done at the ITU and in the industry. A clear definition of UMTS will be of great help in facilitating the harmonization of UMTS in the European Union.

3.2.3. Article 3 outlines the key principles of coordinated authorization by Member States.

3.2.4. Article 3.1 requires Member States to take all actions necessary in order to allow the harmonized provision of UMTS services on their territory by 1 January 2002 at the latest; Member States will have to establish authorization systems by 1 January 2000.

3.2.5. Article 3.2 provides for frequency harmonization through CEPT and in reference to European standards developed by the ETSI and in particular a common, open and internationally competitive air-interface standard. Moreover, licences need to support roaming throughout the Community.

3.2.6. Article 3.3 requires that the basic characteristics of UMTS as described in Annex I be required by Member States when granting licences.

3.2.7. Article 3.4 provides for a safeguard clause in the case of incompatibility of systems and lack of sufficient frequency spectrum to accommodate all systems: Member States will have to coordinate their authorization procedures in order to authorize compatible UMTS services in the Community.

3.2.8. Article 4 covers roaming rights and obligations.

3.2.9. Article 4.1 requires Member States to ensure that organizations providing UMTS networks have rights and obligations to negotiate roaming agreements with other similar organizations to ensure seamless Community-wide coverage.

3.2.10. Article 4.2 allows Member States to take action, including the promotion of agreement among operators to ensure coverage of less populated areas, within the limits of Community law.

3.2.11. Article 5 establishes cooperation with CEPT. Mandates will be granted to CEPT/ECTRA and CEPT/ERC to harmonize frequency use and conditions attached to authorizations for UMTS networks and services. A timetable is provided in Annex II. On the completion of the mandates, it shall be decided in accordance with the type II b comitology procedure whether the result of the work done pursuant to the mandates shall be made applicable in the Community. Article 5.3 provides for a safeguard in the event of delay in the process.

3.2.12. Article 6 provides for cooperation with the ETSI, where necessary, to promote a common and open standard for the provision of compatible UMTS services, taking into account the global environment at the International Telecommunications Union.

3.2.13. Article 7 establishes the comitology procedure. The committee will be the licensing Committee created by the Licensing Directive 97/13/EC.

3.2.14. Article 8 provides that the Commission shall regularly inform the committee on the results of its consultations and that the committee encourages the exchange of information between the Commission and the Member States on UMTS.

3.2.15. Article 9 covers international aspects. The Commission shall take all necessary measures to facilitate the introduction of UMTS services in third countries and the free circulation of UMTS equipment. It shall seek implementation of existing international agreements and may ask for specific mandates for negotiation of new agreements.

3.2.16. Article 10 requires Member States to provide all information requested by the Commission for the implementation of the decision.

3.2.17. Article 11 contains standard obligations regarding confidentiality.

3.2.18. Article 12 provides that the decision will remain valid for a period of four years.

3.2.19. Article 13 imposes a reporting obligation on the Commission to the Council and the Parliament after two years.

3.2.20. Article 14 contains the standard provision regarding implementation by Member States.

3.2.21. Article 15 provides that the decision shall be addressed to the Member States.

4. COR comments

4.1. The Committee of the Regions welcomes the Commission proposal providing for the effective, far-sighted exploitation of UMTS within the Community. Given the pace of technological change in this field, it is particularly important to give the flexibility needed to update the proposal should future circumstances so demand.

4.2. UMTS will play an important role for the general public and for companies, and - not least - for public authorities which provide important services to the general public.

4.3. UMTS will make it possible to disseminate information and communication, independently of fixed line installations, and thus reach peripheral groups and areas which have proved expensive to service with traditional technology. The Committee of the Regions feels it is particularly important to highlight the UMTS service as just one of the many ways of facilitating the provision of services to, and development of, all regions and municipalities within the European Union.

4.4. The Committee of the Regions would particularly emphasize the importance of the Commission's assertion in the 33rd recital that 'the implementation of UMTS systems and services should take into consideration the needs of potential groups of users working in services of public interest (health, education, transport, environment, etc.)`. These services are largely run by regional and local bodies.

4.5. National governments or regions, according to the level at which authority presently lies are expected to be responsible for licensing UMTS services, and this should make it possible to ensure that the operator will guarantee coverage for sparsely populated areas at reasonable prices. The Committee of the Regions feels this is a particularly important right, and that follow-up provisions should be included to assess whether the right has been respected in practice.

4.6. The licensing authority should see to it that competition is established in the multimedia and Internet services market. This applies to both operators and technology, so that the services can be brought to as many people as possible with transparent pricing.

4.7. The Committee of the Regions would also point out that the UMTS licensing procedure should enable individual countries to give priority to requests for authorization from companies and organizations which are called upon to meet the public communication needs of regional and local bodies. Otherwise, the supply of information and communication services might end up being concentrated on large centrally located companies and organizations.

4.8. The Committee of the Regions would also point out that regional and local bodies are potentially major users of UMTS services. In order to provide them with cost-effective solutions, it is important to have sufficient competition in the various regions and local areas of the Community, and to avoid local or regional monopolies. The Committee of the Regions calls for a licence allocation system which will not raise the price of the licence unnecessarily.

4.9. Finally, the Committee of the Regions would emphasize that the pace of technological change is such that new technology is constantly being introduced; consequently, there is a continuous need for standardization. In connection with this ongoing process, it is important that the Committee of the Regions - which represents the general public and political bodies at local and regional level - should continue to be involved at an early stage.

Brussels, 17 September 1998.

The President of the Committee of the Regions

Manfred DAMMEYER

() OJ C 131, 29.4.1998, p. 9.