Opinion on 'Towards the personal communications environment: Green Paper on a common approach in the field of mobile and personal communications in the European Union' (95/C 210/05)

1. Introduction

1.1. At its meeting on 22 July 1993 a Council Resolution was passed to review the situation in the telecommunications sector and to consider its future development. The Council Resolution set the future Agenda for the evolution of telecommunications in the European Union. It identified as a major goal the development of future policy in the field of mobile and personal communications to which the publication of a Green Paper on Mobile Communications will contribute (93/C 213/01).

1.2. Mobile communications is currently the fastest growing area within the telecommunications sector. Europe has now more than 8 million cellular mobile telephony users in the European Union, and with the growing expansion into personal communication services (PCS), up to 80 million users by the year 2010.

1.3. The market is being driven by rapid advances in technology, by commercial opportunities and by falling prices. Subscriber growth rates during the last few years in Member States with high growth cellular telephony markets (car telephones and hand-held portables) have varied from 30 - 40 %. Recent analysis shows that this trend is withstanding the current economic recession.

With the pan-European digital mobile system, GSM, the European Union has established a world-leading technology in this key area of the future global communications market. The EU must continue along these lines so as to encourage development of a universal service in this sector for the citizens of Europe.

2. Green paper

2.1. The Global aims of the Green Paper are:

2.1.1. to permit the development of a Union-wide market for mobile services, equipment and terminals;

2.1.2. to identify common principles where required, for achieving this objective in relation to the provision of mobile infrastructure, the development of mobile networks and services, and the supply and operation of mobile terminals;

2.1.3. to promote the evolution of the mobile communications market into mass personal communications services, with particular emphasis on pan-European services;

2.1.4. to facilitate and promote the emergence of trans-European networks and services in the sector, and to ensure that the sector's development is achieved in a manner consistent with the public interest.

3. The approach chosen

3.1. The approach on the Commission is that the overall policy should:

3.1.1. be based on the recognition of the major market and technology trends which are having a dramatic effect on an already innovative sector. These trends are found in both the Union and worldwide, in particular in the United States and the Pacific area;

3.1.2. build on the policies of the Member States to date which have led in most Member States to a substantially more open competitive environment;

3.1.3. extend the basic principles of the Union's telecommunications policy and Community law, in particular the balance achieved between liberalization and harmonization, to mobile communications;

3.1.4. take full account of the wider international dimension and the existing framework for cooperation which has developed in the sector reaching beyond the European Union;

3.1.5. develop further the Internal Market in this area, as the basis for a strong negotiating position in the bilateral and multi-lateral framework aimed at achieving equivalent and comparable market access in third countries.

These five objectives have determined the approach taken by the Commission in developing the positions and proposals set out for consultation and discussion in this Green Paper.

3.2. The studies were concentrated on the areas most critical for future policy formulation, in particular, future market and technology conditions to the end of the decade and beyond, to the year 1010, current licensing and radiofrequency allocation procedures for mobile systems in the Member States and future requirements in this field, as well as interface and interconnection issues between different systems and services and analysis of the application of the Open Network Provision framework to these issues.

In parallel, the Commission has examined reports and comments forwarded by major organizations representing a variety of interests which were prepared with a view to contributing to the Green Paper. The Commission also considered reports established in a national context, often based on national consultation and/or extensive hearings.

The Commission also received during the preparation period a substantial number of comments by mobile network operators, fixed network operators, service providers and users which drew attention to specific issues involved.

3.3. As regards the structure for cooperation in the sector beyond the European Union, key roles are played in the European context by the European Telecommunications Standards Institute (ETSI); the European Radiocommunications Committee (ERC) and its associated European Radiocommunications Office (ERO); the European Committee for Telecommunications Regulatory Affairs (ECTRA) and its future associated European Telecommunications Office (ETO) which are now developing continent-wide coverage, including the countries of Central and Eastern Europe.

4. Major trends and opportunities

The mobile telecommunications sector represents one of the major areas for potential growth in the communications and information sector.

From the studies undertaken mid-range estimates of the use of mobile communications in Europe suggest that there could be nearly 40 million users by the year 2000 and up to 80 million users by 2010 - up from a current total base of around 16 million users (including cellular telephony, paying and private mobile radio).

Market research predicts that 20-30 % of the business users can be expected to have personal mobile communications by the year 2000, with slower penetration growth thereafter. By 2010 penetration would be 30-50 %.

In addition, 30-40 % of the population would have personal communications for private use by 2010.

4.1. Total user numbers could ultimately substantially exceed 200 million in the European Union - compared to a current total subscriber base for traditional fixed telephony of 153 million.

4.2. While the public mobile telephony market is still served mainly by analogue cellular technologies such as NMT, TACs and other systems, the digital technologies now being introduced, in particular GSM 900 (the European Global System for Mobile communication), DCS-1800 (so called Personal Communications Networks - PCN services) and DECT (Digital European Cordless Telecommunications), as well as systems such as CT2 and ERMES (the pan-European digital paging systems) and TFTS (the European digital Terrestrial Flight Telecommunications System) will rapidly overtake analogue systems.

Only one year after its effective launch, GSM accounts for over 10 % of the installed cellular mobile telephony base in the Union.

Europe is now considered to the world leader in digital cellular system. GSM has been adopted - or planned to be adopted in more than 60 countries, in particular, throughout Europe including the countries of Eastern and Central Europe, and also in the Pacific Area, with the exception of Japan, and in a number of other countries in Asia, the Middle East and Africa.

5. Barriers to be overcome

5.1. In looking at the barriers to be overcome the Green Paper looks at the many and various areas causing difficulties in a Union-wide single telecommunications system. These include exclusive market rights or special rights; licensing systems; allocation of frequencies; the Common Union response to the United States domination of satellite based personal communications; access to third country markets.

5.2. Having looked at and commented on these and other barriers, the Commission considers that five major changes are required to remove the barriers to further development.

These are:

5.2.1. abolishing remaining exclusive and special rights in the sector, subject where required, to the establishment of appropriate licensing conditions;

5.2.2. removal of all restrictions on the provision of mobile services both for independent Service Providers and direct service provision by mobile network operators.

This should include the freedom to offer a combination of services provided under different licenses, as well as the ability to provide in different Member States, and the lifting of existing restrictions, thereby facilitating access of users to these services;

5.2.3. full freedom for mobile network operators to operate and develop the networks for the purpose of the activities provided for in their licence or authorization.

This should include the right to self-provide infrastructure for use in carrying out these activities or to use third party infrastructure for that purpose, as well as the right to share infrastructure;

5.2.4. unrestricted combined offering of services via the fixed and mobile networks, within the overall time schedule set by Council Resolution 93/C213/01 of 22 July 1993 for the full liberalization of public voice services via the fixed network.

This would imply the right for mobile operators or independent Service Providers to bid for resale licenses on the fixed network, as well as for the lifting of all existing entry restrictions for fixed network operators in mobile markets, subject only to full application of the Treaty competition rules, in particular, Council Regulation 89/4064/EEC on the control of concentrations and the provisions of the Treaty competition rules concerning abuse of dominant positions;

5.2.5. facilitating pan-European operation and service provision.

This should include further development of mutual recognition of type approval of mobile terminal equipment, as well as coordination of licensing and award procedure, where appropriate to facilitate development of trans-European networks.

5.3. In identifying detailed positions, the Green Paper has limited itself to fields where a common position is required at a European Community level. The positions concern:

5.3.1. licensing conditions for mobile operators;

5.3.2. conditions for service provision, interconnection, infrastructure, frequency and numbering issues; and

5.3.3. launching the evolution towards personal communications.

5.4. The Green Paper gives proposed positions on these subjects.

5.4.1. It is proposed to amend Directive 90/388/EEC on competition in the markets for telecommunications services to cover mobile communications. It is proposed that licences be awarded on open, non-discriminatory and transparent procedures. It further discusses the awarding of licenses but does not at present favour any single system but does place a particular priority on maximizing benefits for users. Further it emphasizes that licensing conditions must ensure transparent and non-discriminatory behaviour between fixed and mobile operators in common ownership.

5.4.2. It is proposed that commercial freedom should be guaranteed allowing the provision of services by Independent Service Providers and that a Code of Conduct for Service Providers be established so as to comply with the rules and regulations as well as maintaining standards.

5.4.3. In dealing with Interconnection, Infrastructure, Radio frequencies and Numbering, the Green Paper calls for the harmonization of these services throughout the Union. In detailed observations, it emphasizes the benefits to be gained by the citizens of the European Union through this harmonization process.

5.4.4. In launching the evolution towards personal communications services, the Green Paper emphasizes that the basic requirements are to remove initially restrictions on the combination of multiple mobile technologies or services through a single service provider and subsequently, to remove restrictions on the free combinations of services provided via fixed and mobile networks.

5.4.5. The overall tenor of the Green Paper is to provide an emphasis towards liberalization and harmonization in the area of mobile communications.

5.4.6. It proposes that this be achieved by 1998 with additional transition periods of up to five years for Spain, Ireland, Greece and Portugal and, if justified, two years for Luxembourg.

5.4.7. The Green Paper proposes the adoption of the General Date Protection Directive and the proposed Directive on protection of privacy in the digital network environment.

5.4.8. In the fields of Health the Commission proposes setting in motion a comprehensive action programme to accelerate necessary safety standards. In this regard emphasis is placed on lower power emission characteristics for hand equipment in order to minimize electromagnetic exposure.

5.4.9. In order to safeguard the environment the Green Paper proposes that standards should be designed to allow the sharing of sites and radio infrastructures.

5.4.10. With regard to Third Countries, it is proposed that common Community positions be taken on all major matters when dealing with these countries, especially in the fields of standards, frequencies and numbering.

6. Comments

6.1. The Green Paper is an extremely detailed document and covers all aspects of mobile communications. Its basic theme is for harmonization and liberalization within the personal Communications systems in the Union.

6.2. The report points to the fact that the Union is now a world leader in this field and that by liberalizing and opening the market this lead will not only be held but significantly advanced.

6.3. For these reasons the document is to be welcomed by Commission 3 and the Committee of the Regions. If the Union continues its success in the field of digital mobile systems then this can only lead into new Third Country markets, thus enhancing the prospects of job opportunities within the Union.

6.4. Already GSM (European Global System for Mobile Communications) has been adopted in more than 60 countries throughout the world. As has been pointed out, it is expected that by the year 2010 the number of users of mobile phones will rise from the present figure of 16 million to 80 million at that time.

6.5. With the prospects of such high growth it is imperative that at the end of the discussion period on the Green Paper that the Council and the Commission implement the Final Document as quickly as possible.

7. Other comments

7.1. Licensing

On this matter the Commission veers towards a centralized Community licensing of operators. This raises questions for national Governments and, in particular, it should raise questions for the Regions. Perhaps the Regions should have a say in the issuing of licenses, because of their local impact.

7.2. Health

While the Green Paper does give some consideration to the impact of these systems on public health, the Rapporteur feels that not enough attention has been given to this area and that further detailed examination of the impact of the new technology on the peoples' health should be undertaken, before any final decisions are taken for a major extension of the system.

7.3. Environmental Impact

Local and regional authorities will be faced with a proliferation of applications for planning permission for new masts, transmitters, etc. In a free liberalized atmosphere the question must be raised as to whether the local and regional governments should supply centralized transmission/reception sites in given areas so as to minimize and prevent the proliferation of multiple mast sites. And care must be taken to prevent undue pressure being put on local and regional authorities by supplier groups in this area of the protection of the environment.

7.4. Regional response

As indicated earlier the Green Paper and the Commission's proposals are wide and complex and will impact deeply right across all sections of the Union, affecting all sections of the Community. Realistically each of the Member States and representatives of the different Regions will have varying views on many aspects of the proposals.

7.5. In order therefore that a fully comprehensive submission be made to the Commission, reflecting all the views of all the Regions of the Union, the Rapporteur feels that a small Study Group be set up to compose this comprehensive view. This should be done only, of course, if the time to respond allows.

7.6. Overall the Green Paper is to be welcomed as a positive step towards the development of a common approach in the field of mobile and personal communications.

APPENDIX to the Opinion of the Committee of the Regions

1. Introduction

1.1. In my report of 14 July 1994 on the Draft Opinion of Commission 3 of the Committee of the Regions on the Green Paper on a common approach in the field of mobile and personal communications in the European Union (Doc. COM(94) 145 final) I outlined the details of the Green Paper.

1.2. Further to this I pointed out the impact these new developments in the area of personal communications would have on the Regions of Europe and especially in the areas of Licensing Health and Environmental impact.

1.3. In the area of Regional Response, under Section 7.5. of the report I proposed that a Study Group be set up in order to obtain a comprehensive view from all the individual countries of the Union. This proposal was made because the Rapporteur recognized that each individual country and indeed each region would be affected by the process of liberalization and harmonization in the field of personal communications. By obtaining as wide and expert a view as possible the Committee of the Regions would be able to give a very comprehensive view to the Council and the Commission on this very vital area.

1.4. However, because the Commission wishes to have our Opinion given at our Plenary meeting at the end of September 1994, time does not allow this Study Group to be formed, meet and give its Opinion. Therefore I would request that Commission 3 would approve of the Rapporteur's Opinion of 14 July 1994 as well as this Supplementary Opinion and any other amendments submitted to and agreed by Commission 3.

2. Appendix to the Opinion of the Committee of the Regions on a Common Approach in the field of Mobile Communications in the European Union

The Committee of the Regions unanimously adopted the following Opinion at its 4th plenary session on 27/28 September 1994.

2.1. The Committee of the Regions welcomes the Green Paper as a very positive step in the development of personal communications.

2.2. It welcomes its proposals on liberalization and harmonization of the sector within the Union, thus allowing for a standardization of the service.

2.3. It is, however, concerned about the following matters which should be further addressed.

2.4. Licensing

The Green Paper proposes the centralized Community licensing of operators. The Committee of the Regions feels that because of their local impact that Regional and Local Authorities should have an input into the issuing of licences.

2.5. Health

The Committee of the Regions feels that not enough research has been done into the impact of the new technology on the Public Health and in particular exposure to electromagnetic radiation.

2.6. Environmental impact

The Committee of the Regions is concerned about the Environmental impact of the new Technology. If there is centralized issuing of licences where will local authorities stand in relation to the issuing of planning permission for masts, transmitters, etc. The Committee of the Regions feels that Regional and local authorities should have the final say in this area so as to prevent a proliferation of mast and transmission sites.

2.7. Mobile communications is a high growth area and one in which European technology leads the world. Thus it is important to look at the Commission's proposals in the light of a substantially expanding market with increased opportunities for manufacturers, service providers and network operators. All of this should lead to retention, if not the creation, of employment. The Committee of the Regions would be concerned that any new employment created would be spread throughout all regions of the Union.

2.8. The Committee of the Regions supports the overall policy contained in the Green Paper and would wish to make further submissions when detailed proposals are being considered for a Directive.

The Committee of the Regions instructs the Chairman to forward this Opinion to the Council, the Commission, the European Parliament and the Economic and Social Committee.

Done at Brussels, 28 September 1994.

The Chairman

of the Committee of the Regions

Jacques BLANC