COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(91)530 final - SYN 350 
Brussels, 5 December 1991 
Amended proposal for a 
COUNCIL DIRECTIVE 
on the adoption of standards for satellite broadcasting 
of television signals 
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(presented by the Commission pursuant to Article 149(3) 
of the EEC-Treaty) 
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EXPLANATORY MEMORANDUM 
On 9 July 1991 the commission presented its initial proposal for a 
council Directive on the adûptloa of standards for the satellite 
.broadcasting of television signals (C0H(91)242 final-S3N 350). 
«rh«» European Parliament expressed its Opinion, at first reading on 20 
Jtovember 1991, In the Light Of that Opinion the Cdmmiccien hereby 
^*xr,*<: i±j£ init? nl proposal. 
This ^TTW*ndprt proposal follows the ling announced by the Commission at 
the plenary session, of Parliament and incorporates all the amendments 
which the Commission had accepted, including those accented subject to 
revision of the taxfc-
The resulting- —•—»*+* proposal represents a broadly consistent solution 
to the text, takes account of toe point of view of the suropoan 
Parliament as regards certain spécifie aspects (such as the duration of 
the Directive, financial support from, the Cmamttnlty and the relaxation 
of a number of obligations} and solves certain specific problems raised 
by the Members in their amendments. The Commission consider?* that this 
new proposal takes better account of the foreseeable development of the 
market and its needs while at the same time ensuring- genuine 
convergence towards ED-K&G via the intermediate standard M.—K&e>16rS. 
only amendments 15 and 18 were not accepted by the Commission - the 
former because the Commission cannot accept subordination of the entry 
Into farce of the Directive to an act of private law such as the HOU<. 
and the latter because it provides for excessively broad derogations 
for certain cable operators. 
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Amended proposal for a 
COUNCIL DIRECTIVE 
on the adoption of standards for satellite broadcasting 
of television signals 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, and in 
particular Article 100a thereof, 
Having regard to the proposal from the Commission, 
In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social Committee, 
Whereas Council Directive 86/529/EEC1 made provision for review; 
Whereas the Community, through Council Decision 89/337/EEC2 and Council Decision 
89/630/EEC3, recognized 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 Council Directive 86/529/EEC, in particular in Article 2, established a dual 
regime by a limitation of the application of the Directive to only one type of satellite, and 
as a consequence a dual market appeared with the use of MAC standards in Broadcasting 
Satellite Service (BSS) and mainly PAL and Secam in Fixed Satellite Service (FSS);and 
whereas this should be avoided in the future in order to prevent.a split in the satellite 
market. 
1 OJ NoL311, 6.11.1986, p. 28. 
2 OJ No L 142, 25.5.1989, p. I. 
3 OJ No L 363, 13.12.1989, p. 30. 
Whereas in order to reach Community goals as set out in the Council Decisions mentioned 
above and in order to contribute to the achievement of a single market in satellite 
broadcasting of television signals as provided for in Article 8(a) of the Treaty, it is 
necessary to undertake steps to create a convergence of standards, using in parallel a 
regulatory instrument, and an agreement between major actors in the market; 
Whereas it is in the best interest of European consumers to follow a path towards HDTV 
based on the criteria of compatibility and evolution, in order to avoid discontinuities and 
duplication of investments; 
Whereas HD-MAC has been developed as the European transmission standard for HDTV 
services based on those criteria of compatibility and evolution and D2-MAC offers the best 
available path towards the development of HDTV with wide-screen 16 : 9 D2-MAC as the 
main step in that direction; 
Whereas there is a need to establish common standards for satellite transmission as an 
enabling element for effective free market competition taking into account that standards 
promote competitiveness by lowering costs for producers, shaping customer preferences for 
products by their familiarity, and enabling the emergence of new markets, particularly for 
developing technologies, where they are becoming a pre-condition for industrial production 
or marketing; 
Whereas services for satellite television broadcasting using 4:3 aspect ratio format should 
not be forced to a compulsory stop or change so as not to jeopardize the present market or 
inconvenience users; however, incentives may be provided, through a parallel legal 
instrument, in order to support, in addition, the use of the D2-MAC standard, in particular 
in 16:9 format, inter alia through simultaneous transmissions ("simulcast"); 
Whereas it is vital to ensure that audiovisual programmes adapted to the new 16:9 format 
are available in sufficient quantity and quality and that it therefore is appropriate to 
provide, through a parallel legal instrument, for Community financial incentives; 
Whereas in the medium term the capacity of satellite systems is limited and as a result the 
scope for the simulcast transmissions of programmes in different standards is also limited, 
it will be necessary to make a selection of programmes for such transmissions; 
Whereas in the interests of the consumer it is necessary to establish a common conditional 
access system compatible with D2-MAC and HD-MAC, without hampering the 
technological development of these systems; whereas, therefore, the best solution is a 
system consisting of a common access unit to which one or more smart cards can be added; 
Whereas cable TV networks are a relevant feature in the television infrastructure of many 
Member States and will be very important to the future of HDTV services; 
Whereas Decision 89/337/EEC called for an action plan for the introduction of HDTV to 
be prepared in close coordination at Community level between the Commission, the 
Member States and the European Industry; 
Whereas it is essential that there should be complete agreement between broadcasters, 
satellite operators, manufacturers and cable operators about the introduction, as soon as 
possible, of 16:9 D2-MAC services in conformity with the objectives set out in Decision 
89/337/EEC and whereas such agreement might be reached by means of a Memorandum 
of Understanding; 
Whereas the Memorandum of Understanding will set out the obligations of the respective 
parties for the development and promotion of 16 : 9 D2-MAC services in Europe in 
accordance with the terms and provisions of this Directive and will constitute an integral 
part of the overall strategy for the introduction of HDTV; 
Whereas European research efforts must stay in the forefront of all new significant 
developments such as a trend towards digital television broadcasting emissions and Europe 
has to consolidate its research efforts through collaboration and in the framework of EC 
research programmes; 
Whereas a strategy for the introduction of High Definition Television has been laid down 
at Community level and European undertakings have made significant investments 
involving many jobs; 
Whereas in view of the foreseeable technical progress in this sector, account should now be 
taken of any subsequent developments of the existing systems and provision made for an 
eventual review of this Directive; 
Whereas it is in the general interest as well as in the interest of the major actors in the 
market that this Directive should be implemented at the earliest possible date; 
HAS ADOPTED THIS DIRECTIVE: 
ARTICLE 1 
Member States shall take all measures to promote and support the introduction and 
development of advanced sateUite broadcasting services for television programmes, using 
the HD-MAC standard for not completely digital High Definition Television transmission 
and the D2-MAC standard for other not completely digital transmission in the 16 :9 aspect 
ratio format. 
ARTICLE 2 
1. For any transmission of a television service in the high definition television format 
that is not completely digital only the HD-MAC standard may be used. 
2. For any transmission of a 625 line satellite television service receivable by viewers 
using domestic satellite receiving equipment, even if such transmissions are intended 
to be redistributed by cable networks; 
in respect of any service in the 16 : 9 aspect ratio format only the D2-MAC 
standard may be used. Financial support will be provided by the Community; 
in respect of any other service starting after 1 January 1995, the D2-MAC 
standard must be used. Financial support will be provided by the Community. 
These services may also be transmitted simultaneously in PAL, SECAM or ID-
MAC; 
in respect of services in existence prior to 1 January 1995, PAL, SECAM or D-
MAC may continue to be used as long as the service provider wishes. From 1 
January 1995 , these services must also be transmitted using the D2-MAC 
standard. Financial support will be provided by the Community. 
5-
ARTICLE3 
DELETED 
ARTICLE 4 
Member States shall take all measures to ensure that as from 1 January 1994, all new 
television sets and all new domestic satellite receivers for sale or rent in the Community: 
- in respect to all television sets with 16:9 format possess a D2 MAC decoder; 
- in respect of all other such equipment, possess at least a standardized socket by means of 
which a D2-MAC decoder may be connected to the equipment permitting an open 
interface standard. 
ARTICLE 5 
Member States shall take all measures to ensure that 
any new terrestrial redistribution system, or any existing terrestrial redistribution system 
having the necessary technical capability, shall be configured in such a way that HD-
MAC signals can be transmitted through the network from head-end to individual 
homes; 
if cable operators decide the redistribution by cable of programmes received by them in 
the 16 : 9 aspect ratio format and the D2-MAC or HD-MAC standard, operators shall 
distribute these programmes also in the 16 : 9 aspect ratio format and the D2-MAC or 
HD-MAC standard. 
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ARTICLE 6 
In the case of all services using the D2-MAC standard, which are encrypted and employ a 
conditional access system, Member States shall take all the necessary measures to ensure 
that only a conditional access system fully compatible with D2-MAC and standardized as 
such by a European standardization organization by 1 January 1993 is used. 
ARTICLE 7 
1. This Directive shall apply until 31 December 1999. 
2. Before 1 January 1994 and every two years thereafter, the Commission shall submit to 
the European Parliament, to the Council and to the Economic and Social Committee 
a report on the application of this Directive, the evolution of the market and the use 
of the Community funding. If necessary, the Commission shall make proposals to 
adapt this Directive to these developments, in particular in order to confirm or to 
amend the obligations set out in Article 2, paragraph 2,3rd indent. 
3. Before the date when this Directive expires the Commission shall submit, if necessary, 
proposals to the Council on a policy of standardization £>r HDTV, in accordance with 
the objective of achieving total harmonization of all television broadcasting media, 
whether analogue or digital, by satellite, cable or terrestrial redistribution. These 
proposals should take into account the results of European collaboration in research 
and development and the work of the relevant standardizing organisations in Europe. 
Article 7 a 
The rules laid down in this Directive shall be accompanied by simultaneous financial 
measures designed to support the creation of a European market for the D2-MAC, 16:9 
and HD-MAC standards and commercial measures based on the .signing, by the parties 
concerned, of a Memorandum of Understanding coordinating the actions of the various 
signatories. 
ARTICLE 8 
1. Member States shall bring into force the laws, regulations and administrative 
provisions necessary to comply with this Directive no later than three months after the 
date of its notification. They shall forthwith inform the Commission thereof. 
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. 
2. 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. 
ARTICLE 9 
This Directive is addressed to the Member States. 
Done at Brussels, 
For the Council 
The President 

ISSN 0254-1475 
COM(91) 530 final 
DOCUMENTS 
EN 15 
Catalogue number : CB-CO-91-583-EN-C 
ISBN 92-77-78791-0 
Office for Official Publications of the European Communities 
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