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*** COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 11.11.1996 
COM(96) 535 final 
95/0207 (COD) 
OPINION OF THE COMMISSION 
pursuant to Article 189 b (2) (d) of the EC Treaty, 
on the European Parliament's amendments 
to the Council's common position regarding the 
proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on interconnection in telecommunications with regard to ensuring universal service 
and interoperability through application of the principles of Open Network 
Provision (ONP) 
AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 189 a (2) of the EC Treaty 

EXPLAN A TORY MEMORANDUM 
Article 189b(2)(d) requests the Commission to express its opinion on the 
qmendments proposed by the European Parliament in its second reading. 
The Commission hereby presents its opinion on these amendments to the Council's 
common position regarding the proposal for a European Parliament and Council 
Directive on Interconnection in Telecommunications with regard to ensuring 
universal service and interoperability through application of the principles of 
Open Network Provision (ONP). This includes a modified proposal incorporating 
the amendments proposed by the European Parliament at Second Reading which 
were accepted by the Commission. 
OPINION OF THE COMMISSION 
l. BACKGROUND 
a) The Commission adopted its proposal on 19.07.95, and it was formally transmitted 
to the EP and the Council on 12.09.951. 
b) The Economic and Social Committee gave a favourable Opinion on 28.02.962. 
c) The European Parliament adopted a favourable Resolution at its First Reading on 
14.02.96, and proposed 69 amendments to the Commission proposal3. 
d) The Council adopted its Common Position on 18.06.96. 
e) The Commission accepted this Common Position and informed the European 
Parliament of its position on 14.06.96. 
f) The European Parliament voted on Second Reading on 19.09.96, adopting a 
favourable resolution which included 31 amendments to the Common Position4. 
2. PURPOSE OF THE DIRECTIVE 
This Directive is an essential component of the regulatory framework for the future 
liberalised telecommunications sector, to be in place by 1.1.98. . 
1 OJ C 313, 24.11.1995, p.7 
2 TRA/301 ,28.02.1996 
3 A4-0017/96, PV 14.02.1996 
4 A4-276/96, PV 19.09.1996 
-2-
It will enable new market entrants to access existing business and residential customers, 
on a basis which will encourage increased investment and market growth in the 
telecommunications services sector, within a predictable and stable regulatory 
environment. At the same time, it will put in place safeguards to ensure interconnection 
and interoperability of networks and services so that users may increasingly benefit from 
the European wide provision of universal telecommunications services. 
The Directive lays down harmonized principles for interconnection to be implemented at 
a national level, under supervision of the national regulatory authorities, in accordance 
with the principle of subsidiarity. 
3. POSITION OF THE COMMISSION ON THE EP AMENDMENTS 
3.1 EP AMENDMENTS ACCEPTED BY THE COMMISSION 
Of the 31 amendments adopted by the European Parliament at Second Reading, the 
Commission accepts 12 in full and 9 in part or in principle (ie with some reformulation 
of the text), making a total of 21. 
The Commission is consistent with its position during the First Reading, and is 
supportive of amendments which can improve the Common Position. On this basis, the 
Commission position on each amendment is the following: 
Amendments accepted in full : 4, 5, 7, 13, 14, 21, 22, 23, 24, 27, 29, 30 
Amendments accepted in part or in principle : 1, 3, 8, 9, 10, 16, 17, 25, 31 
The Commission's position on each of these amendments is explained in the attached 
table. The most important amendments accepted by the Commission concern the eight 
following areas: 
Study of creation of a European regulatory authority 
[Amendments 8 and 31(part)] 
The Commission accepts the request in Amendments 8 and 31 (last part) for examination, 
in the report that the Commission is required to present before the end of 1999, of the 
possibility of establishing a European regulatory authority for telecommunications, but 
considers that at this stage it would be premature to specify the tasks to be carried out by 
such a European regulator. The Council did not accept the EP amendment on this issue 
at First Reading. 
In supporting the EP amendment, the Commission notes that the issue could be dealt 
with in the report proposed for 1999, even if this is not explicitly stated in the Directive, 
-3 
Procedure for resolution of cross-border interconnection disputes 
[Amendments 5 and 27] 
The Commission supports EP Amendments 5 and 27 which re-introduce a binding 
dispute resolution procedure at the EU-level, as called for in the original Commission 
proposal. 
Deferment of some obligations of this Directive for some Member States 
[Amendments 7 and 29] 
As expressed in its Communication on the Council Common Position, the Commission 
considers that the Common Position text meets the main concerns expressed by 
Parliament in First Reading, as it links any deferments from some of the obligations of 
this Directive to the transition periods for full liberalisation of telecommunications 
services, indicating clearly that such deferments should be valid "for as long as and to the 
extent that" such transition periods exist. 
However, the Commission gives preference to the texts proposed by Parliament in 
Amendments 7 and 29, which require Member States benefiting from transition periods 
for full liberalisation granted under Commission Art. 90 Directive on full competition in 
telecommunications markets (96/19/EC) to request a corresponding deferment of some 
obligations of this Directive, to the extent justified by any special or exclusive rights for 
telecommunications. 
Definition of interconnection 
[Amendment 10] 
One of the main-aims of this Directive is to facilitate the establishment of effective 
competition at all levels of the telecommunications market. This means competition in 
services and competition in network infrastructures. For this reason, the Commission 
can support the principle in Amendment 10 where it is made clear that service providers 
are included in the scope of the definition of interconnection. However, the wording of 
this definition in the Commission's original proposal is technically more correct than that 
proposed in the EP Amendment (ie the linking of the facilities of organisations 
providing telecommunications services, not the linking of telecommunications services, 
as in the proposed amendment). 
The Commission does not support the other part of the amendment which introduces a 
reference to 'interconnection points', since this term is neither defined nor used in the 
Directive. 
Reconsideration of need for Directive when effective competition is achieved 
[Amendment 9] 
The Commission agrees with the principle in Amendment 9 that the competition rules of 
the Treaty will have a predominant role when effective competition is achieved in the 
telecommunications market, and that at that time the need for this Directive should be 
reconsidered. However, the Commission considers that such principle should be stated 
in a recital, rather than in an article as proposed by Parliament, as it is not a legal 
requirement. In addition, it would be premature to specify at this stage which provisions 
will still be (or will no longer be) appropriate in an effective competitive environment. 
Number portability 
[Amendments 25 and 31 (part)] 
The Commission supports the requirement in Amendment 25 call for rerouting or 
indication of the new number to be implemented if number portability is not yet available, 
due to the importance for telephone users of such facilities. The Commission also agrees 
with the Parliament on the specification that such facilities should either cost a 
reasonable fee approved by the national regulatory authority (for number portability and 
call rerouting), or be free of charge (for indication of new number). The Commission, 
however, cannot agree to the extension of the requirement for number portability to all 
national numbers, rather than the numbers on the fixed public telephone network, as this 
would excessively broaden the requirement for number portability and delay its 
implementation. 
The Commission can support EP Amendment 31 (first part), which explicitly mentions 
the possibility of anticipating the timetable for introduction of number portability. 
Position in international numbering organisations and fora 
[Amendments 4 and 23] 
The Commission supports Amendments 4 and 23, which strengthen the requirements for 
coordination of the positions of Member States and the Community in international 
organisations and fora where numbering decisions are taken. 
Commission guidelines 
[Amendments 3(part) and 17] 
Guidelines are considered the most appropriate tool for addressing complex financial 
issues, in that they are flexible and more easily updated than EU legislation. The 
committee procedure proposed will ensure that the guidelines have the backing of 
Member States. The Commission can thus support Amendments 3(first part) and 
17(first part), re-introducing the call for guidelines on cost accounting systems and 
accounting separation (rather than transparency) in relation to interconnection to be 
drawn by the Commission. However, such guidelines cannot have a mandatory 
character. 
3.2. EP AMENDMENTS NOT ACCEPTED BY THE COMMISSION 
The Commission has not accepted 10 of the 31 amendments proposed by the European 
Parliament. 
The amendments not accepted by the Commission are the following: 
Amendments not accepted : 2, 6, 11, 12, 15, 18, 19, 20, 26, 28 
The reasons are given below, where the amendments are grouped into four broad 
categories. 
Universal service 
[Amendments l(part), 11,12,15 and 18] 
The Commission can not accept the EP Amendments calling for Member States to be 
required to set up a universal service fund mechanism for financing the net cost of 
universal service obligations (Amendments 1 (last part), 11, 12 and 18). It is for Member 
States to decide whether a system for financing universal service is necessary. Some 
Member States may decide not to establish any mechanism for sharing the net cost of 
universal service obligations, where this cost is very low. Depending on the way a 
Member State imposes universal service obligations, it may be appropriate to set up a 
universal service fund, or to collect contributions to universal service costs through an 
extra charge on interconnected parties. In both cases, the requirements for transparency 
and objectivity are the same, and the contributions by market players will be the same. 
The Commission has expressed a preference for universal service funds in its 
Communication on the consultation on the Infrastructure Green Paper. However, given 
the relatively low cost of universal telephone service in some Member States, the 
overhead of an independently administered universal service fund may not be justified in 
all cases. 
The Commission can neither accept Amendment 15, which calls on the Commission to 
draw up, before 31 October 1996, a proposal for a European Parliament and Council 
Directive on the costing and financing of universal service. As announced in its 
Communication on universal service issued in March of this year5, the Commission is 
planning to issue guidelines on costing and financing universal service, which will 
provide further guidance on costing and financing universal service. The need for a 
specific Directive on costing and financing of universal service is not foreseen by the 
Commission at this stage. 
Accounting separation 
[Amendments 2, 19 and 20] 
The purpose of accounting separation is to ensure full transparency of internal cost-
transfers, and to avoid discrimination. Accounting separation is not as effective in 
COM (96) 73, 13.03.1996 
preventing discrimination as structural separation, but it is less disruptive. Proposed EP 
Amendments 2, 19 and 20 would weaken the requirements for accounting separation by 
calling for 'transparent accounts'. The weaker approach suggested by the Parliament 
would place much greater demands on the NRAs, in terms of both resources and 
expertise, in checking that there were no anti-competitive cross transfers taking place. 
Comitology 
[Amendments 6, 26 and 28] 
As expressed in its position on the Council Common Position, the Commission regrets 
that Council insisted on introduction of a type Ilia regulatory committee procedure in 
this Directive. However, the Commission also accepts that this gives consistency with 
other Directives in the field of ONP, where the same regulatory procedure is being used. 
Therefore, the Commission, while restating its preference for an advisory committee, was 
able to accept the change in procedure, in order to allow Council to reach a qualified 
majority for adoption of the Common Position. An inter-institutional agreement was 
reached in 1994 between the EP, Council and Commission on Comitology, and a modus 
vivendi was drawn up to cover the situation where regulatory committees are used. For 
these reasons, the Commission does not accept EP Amendments 6, 26 and 28. 
Other amendments 
[Amendment 16(part)] 
The Commission can not accept the first part of Amendment 16 which links charges for 
interconnection with contributions to the net fixed costs of the local network. Such 
costs - a form of access deficit - should be phased out as soon as possible, in accordance 
with EU law, and, where they exist, must be separately identified and not included in the 
interconnection charges. 
4. CONCLUSION 
The Commission has accepted 21 of the 31 amendments proposed by the European 
Parliament at Second Reading either in whole, in part or in principle. 
In accordance with Article 189a paragraph 2 of the EC Treaty, the Commission's 
modified proposal incorporates these amendments. 
AMENDED PROPOSAL FOR A 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON INTERCONNECTION IN TELECOMMUNICATIONS WITH REGARD TO ENSURING 
UNIVERSAL SERVICE AND INTEROPERABILITY THROUGH APPLICATION OF 
THE PRINCIPLES OF OPEN NETWORK PROVISION (ONP) 
-8-
Common Position text Amended text 
Recital 8 
(based on EP Amendment 1) 
Whereas the Council Resolution of 
7 February 1994 sets out conditions for 
financing a universal voice telephony service; 
whereas obligations for the provision of 
universal service contribute to the Community 
objective of economic and social cohesion and 
territorial equity; whereas there may be more 
than one organization in a Member State with 
universal service obligations; whereas the 
calculation of the net cost of universal service 
should take due account of costs and revenues, 
as well as economic externalities and the 
intangible benefits resulting from providing 
universal service but should not hinder the 
on-going process of tariff rebalancing; whereas 
costs of universal service obligations should be 
calculated on the basis of transparent 
procedures; whereas financial contributions 
related to the sharing of universal service 
obligations should be unbundled from charges 
for interconnection; whereas, when a universal 
service obligation represents an unfair burden 
on an organization, it is appropriate to allow 
Member States to establish mechanisms for 
sharing the net cost of universal provision of a 
fixed public telephone network and a fixed 
public telephone service with other 
organizations operating public 
telecommunications networks and/or publicly 
available voice telephony services; whereas this 
should respect the principles of Community 
law, in particular those of non-discrimination 
and proportionality and should be without 
prejudice to Article 100a(2) of the Treaty; Whereas obligations for the provision of 
universal service contribute to the Community 
objective of economic and social cohesion and 
territorial equity; whereas there may be more 
than one organization in a Member State with 
universal service obligations; whereas the aim 
should be to introduce new technologies like 
the integrated services digital network (ISDN) 
as soon as possible and on as broad a basis as 
possible in the Member States: whereas at its 
current stage of development in the Member 
States. ISDN is not accessible for all users and 
as such cannot yet be subject to universal 
service obligations; whereas the calculation of 
the net cost of universal service should take 
due account of costs and revenues, as well as 
economic externalities and the intangible 
benefits resulting from providing universal 
service but should not hinder the on-going 
process of tariff rebalancing; whereas costs of 
universal service obligations should be 
calculated on the basis of transparent 
procedures; whereas financial contributions 
related to the sharing of universal service 
obligations should be unbundled from charges 
for interconnection; whereas, when a universal 
service obligation represents an unfair burden 
on an organization, it is appropriate to allow 
Member States to establish mechanisms for 
sharing the net cost of universal provision of a 
fixed public telephone network and a fixed 
public telephone service with other 
organizations operating public 
telecommunications networks and/or publicly 
available voice telephony services; whereas this 
should respect the principles of Community 
law, in particular those of non-discrimination 
and proportionality and should be without 
prejudice to Article 100a(2) of the Treaty; 
Common Position text Amended text 
Recital 12 
(based on EP Amendment 3) 
Whereas national regulatory authorities have an 
important role in encouraging the development 
of a competitive market in the interests of 
Community users, and of securing adequate 
interconnection of networks and 
interoperability of services; whereas 
negotiation of interconnection agreements can 
be facilitated by national regulatory authorities 
setting down certain conditions in advance, and 
identifying other areas to be covered in 
interconnection agreements; whereas in the 
event of a dispute over interconnection 
between parties in the same Member State, an 
aggrieved party must be able to call on the 
national regulatory authority to resolve the 
dispute; whereas national regulatory authorities 
must be able to require organizations to 
interconnect their facilities, where it can be 
demonstrated that this is in the users' interests; Whereas national regulatory authorities have an 
important role in encouraging the development 
of a competitive market in the interests of 
Community users, and of securing adequate 
interconnection of networks and 
interoperability of services; whereas 
negotiation of interconnection agreements can 
be facilitated by national regulatory authorities 
setting down certain conditions in advance on 
the basis of common guidelines defined by the 
Commission so as to facilitate the development 
of a seamless harmonised European home 
market, and identifying other areas to be 
covered in interconnection agreements; 
whereas in the event of a dispute over 
interconnection between parties in the same 
Member State, an aggrieved party must be able 
to call on the national regulatory authority to 
resolve the dispute; whereas national 
regulatory authorities must be able to require 
organizations to interconnect their facilities, 
where it can be demonstrated that this is in the 
users' interests; whereas each operator must be 
responsible for carrying calls and setting the 
tariffs for its subscribers up to the most 
appropriate interconnection point; 
-10 
Common Position text Amended text 
Recital 15 
(based on EP Amendment 4) 
Whereas numbering is a key element for equal 
access; whereas national regulatory authorities 
should have the responsibility for administering 
and controlling national numbering plans, and 
those naming and addressing aspects of 
telecommunications services where 
coordination at a national level is required, so 
as to ensure effective competition; whereas in 
exercising this responsibility, national 
regulatory authorities must have regard to the 
principle of proportionality, particularly as to 
the effect of any measures on network 
operators, resellers and consumers; whereas 
number portability is an important facility for 
users, and should be implemented as soon as 
practicable; whereas numbering schemes 
should be developed in full consultation with 
all the parties involved and in harmony with a 
long-term Europe-wide numbering framework 
and international numbering schemes as being 
considered in the European Conference of 
Postal and Telecommunications 
Administrations (CEPT); whereas numbering 
requirements in Europe, the need for the 
provision of pan-European and new services 
and the globalization and synergy of the 
telecommunications market make the 
coordination of national positions in 
international organizations and fora desirable 
where numbering decisions are taken; Whereas numbering is a key element for equal 
access; whereas national regulatory authorities 
should have the responsibility for administering 
and controlling national numbering pians, and 
those naming and addressing aspects of 
telecommunications services where 
coordination at a national level is required, so 
as to ensure effective competition; whereas in 
exercising this responsibility, national 
regulatory authorities must have regard to the 
principle of proportionality, particularly as to 
the effect of any measures on network 
operators, resellers and consumers; whereas 
number portability is an important facility for 
users, and should be implemented as soon as 
practicable; whereas numbering schemes 
should be developed in full consultation with 
all the parties involved and in harmony with a 
long-term Europe-wide numbering framework 
and international numbering schemes as being 
considered in the European Conference of 
Postal and Telecommunications 
Administrations (CEPT); whereas numbering 
requirements in Europe, the need for the 
provision of pan-European and new services 
and the globalization and synergy of the 
telecommunications market require a 
coordinated position by the Member States and 
the» Community in international organizations 
and fora where numbering decisions are taken; 
Recital 18 
(based on EP Amendment 5) 
Whereas in addition to the rights of recourse 
granted under national or Community law, 
there is a need for conciliation procedures for 
cross-border disputes which lie outside the 
competence of a single national regulatory 
authority; whereas these procedures, to be 
initiated by any of the national regulatory 
authorities concerned, should be responsive, 
inexpensive and transparent, and should 
involve all the parties concerned; Whereas in addition to the rights of recourse 
granted under national or Community law, 
there is a need for simple procedures to resolve 
cross-border disputes which lie outside the 
competence of a single national regulatory 
authority; whereas these procedures, to be 
initiated by any of the parties concerned, 
should be responsive, inexpensive and 
transparent, and should involve all the parties 
concerned; 
-11 -
Common Position text Amended text 
Recital 22 
(based on EP Amendment 7) 
Whereas the implementation of certain 
obligations must be linked to the date of 
liberalization of telecommunications services 
and infrastructure and, in particular in regard to 
the relevant Member States, take full account 
of the transition periods granted in the 
Council Resolution of 22 July 1993 on the 
review of the situation in the 
telecommunications sector and the need for 
further development in that market and the 
Council Resolution of 22 December 1994 on 
the principles and timetable for the 
liberalization of telecommunications 
infrastructures2. including the retention of 
special or exclusive rights in relation to direct 
interconnection between the mobile networks 
of those Member States and the fixed or mobile 
networks of other Member States; whereas 
deferment of the obligation to provide number 
portability may be granted where the 
Commission agrees that the obligation would 
impose an excessive burden on certain 
organizations; Whereas the implementation of certain 
obligations must be linked to the date of 
liberalization of telecommunications services 
and infrastructure and, in particular in regard to 
the relevant Member States, take full account 
of the transition periods granted by the Article 
2(2) of Commission Directive 90/3 88/EEC as 
amended by Commission Directive 96/19/EC2. 
including the retention of special or exclusive 
rights in relation to direct interconnection 
between the mobile networks of those Member 
States and the fixed or mobile networks of 
other Member States; whereas deferment of the 
obligation to provide number portability may 
be granted where the Commission agrees that 
the obligation would impose an excessive 
burden on certain organizations; 
OJ No C 379. 31.12.1994. p. 4. 
-12-OJL74, 22.3.1996, p. 13. 
Common Position text Amended text 
Recital 24 
(based on EP Amendment 9) 
Whereas the functioning of this Directive 
should be reviewed by 31 December 1999, in 
particular to examine the scope of universal 
service and the timetable for number 
portability; whereas the situation with regard to 
interconnection with third countries should also 
be periodically reviewed, to allow appropriate 
action to be taken; Whereas the functioning of this Directive 
should be reviewed by 31 December 1999, in 
particular to examine the scope of universal 
service and the timetable for number 
portability; whereas the situation with regard to 
interconnection with third countries should also 
be periodically reviewed, to allow appropriate 
action to be taken; whereas when effective 
competition is achieved in the market, the 
competition rules of the Treaty will in principle 
be sufficient to monitor fair competition ex-
post so that the need for this Directive may be 
reconsidered; 
Recital 25 
(based on EP Amendment 8) 
Whereas the essential goal of interconnection 
of networks and interoperability of services 
throughout the Community cannot be 
sufficiently achieved at Member State level, 
and can therefore be better achieved at 
Community level by this Directive; Whereas the essential goal of interconnection 
of networks and interoperability of services 
throughout the Community cannot be 
sufficiently achieved at Member State level, 
and can therefore be better achieved at 
Community level by this Directive; whereas it 
is desirable, when this Directive is reviewed, to 
envisage the possibility of establishing a 
European regulatory authority to be 
responsible for those tasks carried out by the 
Commission or the national regulatory 
authority under this Directive, which would be 
more efficiently carried out by such a European 
regulatory authority; 
Article 2(l)(a) 
(based on EP Amendment 10) 
(a) "interconnection" means the physical 
and logical linking of telecommunications 
networks used by the same or a different 
organization in order to allow the users of one 
organization to communicate with users of the 
same or another organization, or to access 
services provided by another organization; (a) "interconnection" means the physical 
and logical linking of the facilities of 
organisations providing telecommunications 
networks and/or telecommunications services 
used by the same or a different organization in 
order to allow the users of one organization to 
communicate with users of the same or another 
organization, or to access services provided by 
another organization; 
13 
Common Position text Amended text 
Article 5(5), first subparagraph 
(based on EP Amendment 13) 
5. Where the mechanisms referred to in 
paragraph 4 are established, national regulatory 
authorities shall ensure that the principles for 
cost sharing, and details of the mechanism 
used, are open to the public in accordance with 
Article 14(2). 5. Where a mechanism for sharing the net cost 
of universal service obligations as referred to in 
paragraph 4 is established, national regulatory 
authorities shall ensure that the principles for 
cost sharing, and details of the mechanism 
used, are open to public inspection 
accordance with Article 14(2). in 
Article 5(6) 
(based on EP Amendment 14) 
6. Until such time as the procedure described 
in paragraphs 3, 4 and 5 is implemented, any 
charges payable by an interconnected party 
which include or serve as a contribution to the 
cost of universal service obligations shall be 
notified, prior to their introduction, to the 
national regulatory authority. Where the 
national regulatory authority finds on its own 
initiative, or after a substantiated request by an 
interested party, that such charges are 
excessive, the organization concerned shall be 
required to reduce the relevant charges. Such 
reductions shall be applied retrospectively, 
from the date of introduction of the charges, 
but not before 1 January 1998. 6. Until such time as the procedure described 
in paragraphs 3, 4 and 5 is implemented, any 
charges payable by an interconnected party 
which include or serve as a contribution to the 
cost of universal service obligations shall be 
notified, prior to their introduction, to the 
national regulatory authority. Without 
prejudice of Article 17 of this Directive, where 
the national regulatory authority finds on its 
own initiative, or after a substantiated request 
by an interested party, that such charges are 
excessive, the organization concerned shall be 
required to reduce the relevant charges. Such 
reductions shall be applied retrospectively, 
from the date of introduction of the charges, 
but not before 1 January 1998. 
Article 7(2) 
(based on EP Amendment 16) 
2. Charges for interconnection shall follow 
the principles of transparency and cost 
orientation. The burden of proof that charges 
are derived from actual costs including a 
reasonable rate of return shall lie with the 
organization providing interconnection to its 
facilities. National regulatory authorities may 
request an organization to provide full 
justification for its interconnection charges, and, 
where appropriate shall require charges to be 
adjusted. This paragraph shall also apply to 
organizations set out in Part 3 of Annex I 
which have significant market power. 2. Charges for interconnection shall follow 
the principles of transparency and cost 
orientation. The burden of proof that charges 
are derived from actual costs including a 
reasonable rate of return shall lie with the 
organization providing interconnection to its 
facilities. National regulatory authorities may 
request an organization to provide full 
justification for its interconnection charges, and 
where appropriate shall require charges to be 
adjusted. This paragraph shall also apply to 
organizations set out in Part 3 of Annex I 
which have been notified by national regulatory 
authorities as having significant market power 
on the national market for interconnection. 
14 
Common Position text Amended text 
Article 7(5), first subparagraph 
(based on EP Amendment 17) 
5. National regulatory authorities shall ensure 
that the cost accounting systems used by the 
organizations concerned are suitable for 
implementation of the requirements of this 
Article, and are documented to a sufficient level 
of detail, as indicated in Annex V. 5. The Commission shall, acting in accordance 
with the procedure laid down in Article 15. draw 
up guidelines on cost accounting systems and 
accounting separation in relation to 
interconnection. National regulatory authorities 
shall ensure that the cost accounting systems 
used by the organizations concerned are suitable 
for implementation of the requirements of this 
Article, and are documented to a sufficient level 
of detail, as indicated in Annex V. 
Article 9(1) 
(based on EP Amendment 21) 
1. National regulatory authorities shall encourage 
and secure adequate interconnection in the 
interests of all users, exercising their responsibility 
in a way that provides maximum economic 
efficiency and gives the maximum benefit to end-
users. In particular, national regulatory authorities 
shall take into account; 1. National regulatory authorities shall encourage 
and secure adequate interconnection in the 
interests of all users, exercising their responsibility 
in a way that provides maximum economic 
efficiency and gives the maximum benefit to end-
users. In particular, national regulatory authorities 
shall take into account: 
- the need to ensure satisfactory end-to-end 
communications for users; 
- the need to stimulate a competitive market; 
- the need to promote the establishment and 
development of trans-European networks and 
services, and the interconnection and 
interoperability of national networks and services, 
as well as access to such networks and services; 
- the principles of non-discrimination (including 
equal access) and proportionality; 
- the need to maintain and develop universal 
service. - the need to ensure satisfactory end-to-end 
communications for users; 
- the need to stimulate a competitive market; 
- the need to ensure the fair and proper 
.development of a seamless harmonised European 
telecommunication home market, thus coordinate 
their policies, guidelines and actions with their 
counterparts in other Member States and with the 
Commission and provide them help and assistance 
when necessary; 
- the need to promote the establishment and 
development of trans-European networks and 
services, and the interconnection and 
interoperability of national networks and services, 
as well as access to such networks and services; 
- the principles of non-discrimination (including 
equal access) and proportionality; 
- the need to maintain and develop universal 
service. 
15-
Common Position text Amended text 
Article 11 
(based on EP Amendment 22) 
Where an organization providing public 
telecommunications networks and/or publicly 
available telecommunications services has the 
right under national legislation to install 
facilities on, over or under public or private 
land, or may take advantage of a procedure for 
the expropriation or use of property, national 
regulatory authorities shall encourage the 
sharing of such facilities and/or property with 
other organizations providing 
telecommunications networks and publicly 
available services. 
Agreements for collocation or facility sharing 
shall normally be a matter for commercial and 
technical agreement between the parties 
concerned. The national regulatory authority 
may intervene to resolve disputes, as provided 
for in Article 9. 
In particular. Member States may impose 
facility and/or property sharing arrangements 
(including physical collocation) only after an 
appropriate period of public consultation 
during which all interested parties must be 
given an opportunity to express their views. 
Such arrangements may include rules for 
apportioning the costs of facility and/or 
property sharing. 
Article 
(based on EP 
2. In order to ensure full interoperability of 
Europe-wide networks and services, Member 
States shall take all necessary steps to ensure 
the coordination of their national positions in 
international organizations and fora where 
numbering decisions are taken, taking into 
account possible future developments in 
numbering in Europe. Where an organization providing public 
telecommunications networks and/or publicly 
available telecommunications services has the 
right under national legislation to install 
facilities on, over or under public or private 
land, or may take advantage of a procedure for 
the expropriation or use of property, national 
regulatory authorities shall encourage the 
sharing of such facilities and/or property with 
other organizations providing 
telecommunications networks and publicly 
available services, in particular where essential 
requirements deprive other organisations of 
access to viable alternatives. 
Agreements for collocation or facility sharing 
shall normally be a matter for commercial and 
technical agreement between the parties 
concerned. The national regulatory authority 
may intervene to resolve disputes, as provided 
for in Article 9. 
Member States may impose facility and/or 
property sharing arrangements (including 
physical collocation) only after an appropriate 
period of public consultation during which all 
interested parties must be given an opportunity 
to express their views. Such arrangements may 
include rules for apportioning the costs of 
facility and/or property sharing. 
12 par. 2 
Amendment 23) 
2. In order to ensure full interoperability of 
Europe-wide networks and services, Member 
States and the Community shall ensure the 
coordination of their positions in international 
organizations and fora where numbering 
decisions are taken, taking into account 
possible future developments in numbering in 
Europe. 
-16-
Common Position text Amended text 
Article 12(3) 
(based on EP Amendment 24) 
3. Member States shall ensure that national 
telecommunications numbering plans are 
controlled by the national regulatory authority, 
in order to guarantee independence from 
organizations providing telecommunications 
networks or telecommunications services. In 
order to ensure effective competition, national 
regulatory authorities shall ensure that the 
procedures for allocating individual numbers 
and/or numbering ranges are transparent, 
equitable and timely and the allocation is 
carried out in an objective, transparent and 
non-discriminatory manner. National 
regulatory authorities may lay down conditions 
for the use of certain prefixes or certain short 
codes, in particular where these are used for 
services of general public interest (e.g. 
freephone services, kiosk billed services, 
directory services, emergency services), or to 
ensure equal access. 3. Member States shall ensure that national 
telecommunications numbering plans are 
controlled by the national regulatory authority, 
in order to guarantee independence from 
organizations providing telecommunications 
networks or telecommunications services and 
facilitate number portability. In order to ensure 
effective competition, national regulatory 
authorities shall ensure that the procedures for 
allocating individual numbers and/or numbering 
ranges are transparent, equitable and timely and 
the allocation is carried out in an objective, 
transparent and non-discriminatory manner. 
National regulatory authorities may lay down 
conditions for the use of certain prefixes or 
certain short codes, in particular where these 
are used for services of general public interest 
(e.g. freephone services, kiosk billed services, 
directory services, emergency services), or to 
ensure equal access. 
Article 12(5) 
(based on EP Amendment 25) 
5. National regulatory authorities shall 
encourage the earliest possible introduction of 
the number portability facility whereby 
end-users who so request can retain their 
number(s) on the fixed public telephone 
network at a specific location independent of 
the organization providing service, and shall 
ensure that this facility is available at least in all 
major centres of population before 1 January 
2003. 5. National regulatory authorities shall 
encourage the earliest possible introduction of 
the number portability facility whereby 
end-users who so request can retain, against a 
reasonable fee approved by the national 
regulatory authority, their number(s) on the 
fixed public telephone network at a specific 
location independent of the organization 
providing service, and shall ensure that this 
facility is available at least in all major centres 
of population before 1 January 2003. If this 
facility is not yet in use, national regulatory 
authorities shall ensure that, once a user has 
changed supplier, a telephone call to his old 
number can be rerouted to the user against a 
reasonable fee approved by the national 
regulatory authority, or that during a 
reasonable period callers are given an 
indication of the new number, without charging 
the user or the callers for this service. 
17 
Common Position text Amended text 
Article 17 
(based on EP Amendment 27) 
Conciliation procedure for disputes between 
organizations operating under authorizations 
provided by 
different Member States Dispute resolution at Communitv-level 
1. Without prejudice to: 
(a) any action that the Commission or any 
Member State may take pursuant to the Treaty; 
(b) the rights of the party invoking the 
procedure in paragraphs 2 and 3, of the 
organizations concerned or of any other party 
under applicable national law; 
the procedure set out in paragraphs 2, 3 and 4 
shall be available in the event of an 
interconnection dispute between organizations 
operating under authorizations granted by 
different Member States, where such dispute 
does not fall within the responsibility of a single 
national regulatory authority exercising its 
power in accordance with Article 9. 
2. Any party may refer the dispute to the 
national regulatory authorities concerned. The 
national regulatory authorities shall coordinate 
their efforts in order to bring about a resolution 
of the dispute, in accordance with the 
principles set out in Article 9(1). 
3. If the national regulatory authorities 
concerned do not agree between themselves on 
a solution within six months of referral, the-
procedure provided for in paragraph 4 may be 
invoked by one of them by way of a 
notification to the Commission, with copies to 
all the parties and national regulatory 
authorities concerned. The solution shall have 
binding effect only if all parties are agreed. 1. Without prejudice to: 
(a) any action that the Commission or any 
Member State may take pursuant to the Treaty; 
(b) the rights of the party invoking the 
procedure in paragraphs 2 and 3, of the 
organizations concerned or of any other party 
under applicable national law; 
the procedure set out in paragraphs 2, 3 and 4 
shall be available in the event of an 
interconnection dispute between organizations 
operating under authorizations granted by 
different Member States, where such dispute 
does not fall within the responsibility of a single 
national regulatory authority exercising its 
power in accordance with Article 9. 
2. Any party may refer the dispute to the 
national regulatory authorities concerned. The 
national regulatory authorities shall coordinate 
their efforts in order to bring about a resolution 
of the dispute, in accordance with the 
principles set out in Article 9(1) and shall 
inform the Commission. 
3. If the national regulatory authorities 
concerned do not agree between themselves on 
a solution within six months of referral, the 
procedure provided for in paragraph 4 may be 
invoked by any of the parties or national 
regulatory authorities concerned by way of a 
notification to the Commission, with copies to 
all the parties and national regulatory 
authorities concerned. The solution shall have 
binding effect only if all parties are agreed. 
18 
Common Position text Amended text 
4. Following a notification to the Commission 
based on paragraph 3, the Commission shall 
refer the matter to the chairman of the ONP 
Committee. 
The chairman of the ONP Committee shall 
convene as soon as possible a working group 
including at least two members of the ONP 
Committee and one representative of each of 
the national regulatory authorities concerned 
and the chairman of the ONP Committee or 
another official of the Commission appointed 
by him. The working group shall normally 
meet within 10 days of the meeting being 
convened. The chairman may decide, upon 
proposal of any of the members of the working 
group, to invite a maximum of two other 
persons as experts to advise it. 
The working group shall give the party 
invoking the procedure, the national regulatory 
authorities of the Member States and the 
organizations involved the opportunity to 
present their opinions in oral or written form. 
The working group shall endeavour to reach 
agreement between the parties involved. The 
chairman shall inform the ONP Committee of 
the results of this procedure. 4. Following a notification to the Commission 
based on paragraph 3, the Commission shall 
convene as soon as possible a working group 
including at least two members of the ONP 
Committee and one representative of each of 
the national regulatory authorities concerned 
and the chairman of the ONP Committee or 
another official of the Commission appointed 
by him. The working group shall normally 
meet within 10 days of the meeting being 
convened. The chairman may decide, upon 
proposal of any of the members of the working 
group, to invite a maximum of two other 
persons as experts to advise it. 
The working group shall give the party 
invoking the procedure, the national regulatory 
authorities of the Member States and the 
organizations involved the opportunity to 
present their opinions in oral or written form. 
The working group shall endeavour to reach 
agreement between the parties involved or 
otherwise define its position within three 
months. This position shall form the basis of a 
solution to be implemented at a national level 
without delay. If an agreed position is not 
reached, or if an agreed position is not 
implemented within a reasonable period of time 
which shall not, except in justified cases, 
exceed two months, the appropriate solution 
shall be adopted by the Commission in 
accordance with the procedure laid down in 
Article 16. This solution shall not prejudice the 
possibilities which exist in national legislation 
for one party to claim in the relevant courts for 
the granting of damages if it appears that the 
behaviour of another party has led to financial 
losses due to distortion of competition. 
However, issues which have been settled at EU 
level cannot be questioned under these claims. 
-19 
Common Position text Amended text 
Article 20(1) 
(based on EP Amendment 29) 
1. Deferment of the obligations under Articles 
3(1), 3(2), 4(1), 4(2), 9(1) and 9(3) insofar as 
those obligations concern direct 
interconnection between the mobile networks 
of that Member State and the fixed or mobile 
networks of other Member States, and under 
Article 5, shall be granted to those Member 
States identified in the Council Resolutions of 
22 July 1993 and 22 December 1994 which 
benefit from an additional transition period for 
the liberalization of telecommunications 
services for as long as and to the extent that 
they avail themselves of such transition 
periods. Member States shall inform the 
Commission of their intention to make use of 
them. 1. Member States with less developed 
networks which are granted an additional 
period of up to five years in which to 
implement all or some of the obligations under 
Directive 96/19/EC may request a 
corresponding deferment of some or all the 
requirements of Articles 3(1), 3(2), 4(1), 4(2), 
9(1) and 9(3) insofar as those obligations 
concern direct interconnection between the 
mobile networks of that Member State and the 
fixed or mobile networks of other Member 
States, and under Article 5. to the extent 
justified by any special or exclusive rights for 
telecommunications services and infrastructure 
allowed under Community law. 
Article 20(2) 
(based on EP Amendment 30) 
2. Deferment of the obligations under Article 
12(5) may be requested where the Member 
State concerned can prove that they would 
impose an excessive burden on certain 
organizations or classes of organization. The 
Member State shall inform the Commission of 
the reasons for requesting a deferment, the date 
by which the requirements can be met, and the 
measures envisaged in order to meet this 
deadline. The Commission shall consider the 
request taking into account the particular 
situation in that Member State and the need to 
ensure a coherent regulatory environment at a 
Community level, and shall inform the Member 
State whether it deems that the particular 
situation in that Member State justifies a 
deferment and, if so, until which date such 
deferment is justified. 2. Deferment of the obligations under Article 
12(5) may be requested where the Member 
State concerned can prove that they would 
impose an excessive burden on certain 
organizations or classes of organization. The 
Member State shall inform the Commission of 
the reasons for requesting a deferment, the date 
by which the requirements can be met, and the 
measures envisaged in order to meet this 
deadline. The Commission shall consider the 
request taking into account the particular 
situation in that Member State and the need to 
ensure a coherent regulatory environment at a 
Community level, and also the existing 
possibilities of otherwise meeting the requirements, 
and shall inform the Member State whether it 
deems that the particular situation in that 
Member State justifies a deferment and, if so, 
until which date such deferment is justified. 
-20 
Common Position text Amended text 
Article 22(2) 
(based on EP Amendment 31) 
2. The Commission shall examine and report 
periodically to the European Parliament and to 
the Council on the functioning of this 
Directive, on the first occasion not later than 
31 December 1999. For this purpose, the 
Commission may request information from the 
Member States. 
The report shall examine what provisions of 
this Directive should be adapted in the light of 
the developments in the market, the evolution 
of technology and the changes in user demand, 
in particular: 
(a) for the provisions under Article 5; 
(b) to confirm the timetable laid down in 
Article 12(5). 2. The Commission shall examine and report 
periodically to the European Parliament and to 
the Council on the functioning of this 
Directive, on the first occasion not later than 
31 December 1999. For this purpose, the 
Commission may request information from the 
Member States. 
The report shall examine what provisions of 
this Directive should be adapted in the light of 
the developments in the market, the evolution 
of technology and the changes in user demand, 
in particular: 
(a) for the provisions under Article 5; 
(b) to confirm or advance the timetable laid 
down in Article 12(5). 
The Commission shall also investigate in the 
report the possibility of setting up swiftly a 
European regulatory authority to carry out 
those tasks carried out by the Commission or 
the national regulatory authorities according to 
this Directive, which can better be undertaken 
at Community level. 
21 

ISSN 0254-1475 
COM(96) 535 final 
DOCUMENTS 
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Catalogue number : CB-CO-96-543-EN-C 
ISBN 92-78-10675-5 
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