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Vol. 1985/01 18 
  
 
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concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation. 
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen 
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983, 
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COMMISSION OF THE EUROPEAN COMMUNITIES
C0M(85) 265 final
Brussels, 5 june 1985
Intergovernmental Vidéocommunications Project  
Presentation of Feasibility Study
(Communication by the Commission to the Council)
C0MC85) 265 final

COMMISSION  
OF THE
EUROPEAN COMMUNITIES
Oannamication by the Oanroission to the Oouncil  
Intergovernmental Videcxxannunlcatlons Project  
Presentation of Feasibility Study
1. 1NTRDD0CTICW
During its meeting of 28th February 1984, the Council of Ministers  
of Research discussed the study of an intergovernmental  
vidéocommunications project to facilitate the exchange of views  
between the political levels of Member States and the Conmunity  
Institutions, between Member States, and within the Institutions. As  
a consequence of this proposal, the Commission was requested to  
prepare an analysis of the feasibility of the project.
This analysis was required to
identify the services that  could be offered, and their  
applicability to communications requirements between  
governments of the Member States and the Community  
Institutions, and amongst the Institutions themselves.
review the technical possibilities, as to the availability of  
videoccmmunications links amongst the capitals of the Member  
States.
identify the resources necessary to implement  
videocamtunications amongst the Member States governments.

-2-
In undertaking this feasibility study, the Commission has been  
supported by a Technical Group composed of representatives of the  
telecommunications administrations of the Member States, specialized  
in vidéocommunications. Once the services that, could be offered had  
been identified, a second group consisting of representatives of  
potential users was set up, to review the correspondence of the  
services that can be offered with the expected requirements of the  
'target population' of users.
As further support for the activity, a demonstration  of 
videoconference techniques was held for potential users in November  
1984; further such opportunities are under preparation, firstly to  
make a videoconferencing service available during the meeting of the  
European Council in Milan in June 1985, and secondly, to prepare  
videoconferencing demonstrations for other potential users during  
the second half of 1985. To support these demonstrations, the  
Commission is installing two videoconference studios, in Institution  
buildings at Brussels and at Luxembourg; videoconference service  
between these two locations will be available from June 1985.
2. RESULTS OF THE FEASIBILITY STUDY.
The study has shown that:
2.1 The system is feasible and could come into service in 1986.  
Initial service could permit bilateral conferences,  
multilateral conferences becoming possible seme 12 months  
later.
2.2 There would be no need to implement a dedicated communications  
network for the system as the necessary broadband  
comnunications links are beginning to become available in the  
Community. However, a decision to implement the system would  
act as a driver to the Member State telecommunications  
administrations to proceed actively with their  plans for  
trans-Community broadband communications.

-3-
2.3 The system would exploit and validate developments in standards  
for videoconference techniques that have been developed within  
Europe, by the COST programme of collaborative scientific and  
technological projects,  and by the CEPT association  of 
telecommunications authorities.
2.4 In addition to stimulating the industrial base for broadband  
telecommunications, a decision to implement such a system would  
stimulate the capability to provide the necessary  
videoconference studio facilities, a capability which is just  
commencing in the Community. In turn, this would serve to  
reduce the costs associated with the installation of studio  
complexes.
2.5 Based on conservative estimates for the tariffs that would be  
applied, it can be shown that already, the cost  of a 
videoconference is competitive with those conferences involving  
travel between the capitals of the Community Member States.
Whilst the use of videoconferencing techniques may not be  
expected to replace "face-to-face" meetings at Ministerial  
level, or major meetings involving all Member States, it can  
already offer a cost-effective alternative to a major number of  
meetings that take place daily in the context of the Community,  
particularly for bilateral meetings
between Member States
between Member and the Community Institutions
between Member States and their Permanent Representations.

PROPOSAL FOR COUNCIL ACTION
The full feasibility study is transmitted herewith, accompanied by a  
draft Council Resolution, the text of which is in Annex. By this  
Resolution, Member States are invited, in view of the results of the  
feasibility study, to implement the necessary infrastructure for an  
initial intergovernmental videoccmmunications system, and to invite  
the Commission, on the one hand, to monitor the initial phase of  
use of such a network, and, on the other hand, to submit a report  
by the end of 1986 that will enable a decision to be taken on the  
further use of videoconmunications for intergovernmental exchanges.

COUNCIL
COUNCIL RESOLUTION
on the use of Videoccmnmmicaticns Techniques for  
Intergovernmental Applications
THE COUNCIL OF THE EUROPEAN COMMUNITIES
WHEREAS on 28 February 1984, the Council requested the Cctnmission to under­
take an analysis of the use of vidéocommunications techniques to improve  
contact between Member States and Community Institutions;
WHEREAS the Council adopted the Communication by the Commission on Tele­
communications of 18 May 1984 (COM(84)277 final), which included  analysis of  
intergovernmental vidéocommunications as an action line;
WHEREAS the Council, on 17 December 1984, agreed on the major objectives for  
a Community effort in the field of telecommunications, which included  
reference to the definition and implementation of an intergovernmental  
vidéocommunications project,

-  2 -
WHEREAS the Commission has submitted the feasibility study requested;
NOTING the feasibility study and the conclusions of the Commission,
INVITES THE MEMBER STATES TO :
1. implement an initial intergovernmental vidéocommunications system, in  
view of the potential of vidéocommunications techniques to improve and  
make more efficient the multilateral exchange of information amongst  
governments of the Member States, and the Institutions;
2. complete the necessary installations, in accordance with requirements  
indicated by the Member States;
3. encourage the telecommunications authorities of Member States to proceed  
actively with the implementation of the trans-Community  broadband  
communications necessary to support an intergovernmental vidéocommuni­
cations service;
INVITES THE EUROPEAN PARLIAMENT AND THE COMMISSION TO :
1. implement the elements for an initial intergovernmental videoccranuni-  
catiens system;
FURTHERMORE INVITES THE COMMISSION TO :
1. monitor the experience of the users of the first phase, in association  
with the Member States;

- 3 -
2. present a report to Council on the experience gained by the end of 1986,  
so that the applicability of the system to intergovernmental  
conmunications may be judged, and a decision may be taken as to whether  
the use of video-
communications for such communications should be encouraged further;
3. continue the cooperation that has been set up with the Member States and  
their telecommunications administrations during the preparation of the  
feasibility study, to resolve specific problems associated with the use  
of vidéocommunications for intergovernmental and institutional  
communications, such as security, the availability of multilateral  
conferences, and of translation services.

iinE R fT røE srønanaL  v r o r m ï î i E i i c a T i a i s  Pr o je c t
FEASIBILITY st u d y  
EXECUTIVE SUMMARY

-2-
1 . iN T R a x x n o w
At its meeting of 28th February, the Council of Ministers of  
Research discussed the study of an intergovernmental  
vidéocommunications project to facilitate the exchange of views  
between the political levels of Member States and the Community  
institutions, between Member States, and within the institutions. As  
a consequence of this proposal, the Commission was requested to  
prepare an analysis of the feasibility of the project.
In preparing the report, the Commission has been supported by a  
Technical Working Group composed of representatives of national  
telecommunications administrations; the services that would be  
required have been identified, as well as the communications network  
infrastructure. Early demonstrations of the capability of  
vidéocommunications techniques have been made during the period of  
the study. The anticipated geographic coverage for the service  
consists of the capitals of the existing ten Community Member  
States, as well as Madrid and Lisbon (to take account of the  
anticipated enlargement of the Community) and the sites of the  
Community institutions at Brussels, Luxembourg and Strasbourg.
2. SERVICES
Videoconferencing permits a meeting between two corresponding groups  
which can communicate at a distance, both by voice and image, in an  
environment very close to that of a normal meeting.
International videoconferencing, by offering both a substitute and a  
complement to travel and to normal telecommunications, has more  
particularly an essential role to play in a more efficient  
management of the affairs of the Community. It does not totally  
replace individual travel, but offers a valid human and economic  
alternative to numerous political or business meetings.

-3-
A videoconference studio lias the appearance of a section of a normal  
meeting roan, the other section being replaced by one or more large  
screens, on which are projected the images of the persons at the  
distant studio. A high quality sound link provides voice  
transmission.
In addition, a videoconference studio offers generally a certain  
number of additional services:
rapid transmission of texts and graphics by facsimile mad lines,  
transmission of still pictures with high definition (drawings,  
transparencies, tables), which permits illustration of  
equipment or objects.
In the feasibility study, descriptions are given o: :  
videoconferencing studios that are ’ becoming available within the  
Community, as well as of compatible table-top equipment  
(’videophones'), which, in the context of an intergovernmental  
vidéocommunications system, could form a useful adjunct to the use  
of videoconference studios. A typical studio configuration is  
illustrated in the attached figures.
For an intergovernmental communications system, security is  
essential; the study has shown that encryption can bo employed both  
at the level of the encoding of the linage signal, as well as of the  
international communications links. The system can therefore be  
expected to be given the necessary level of confidentiality.
within the framework of the Canrnunity, two specific needs have to be  
taken into account - that of translation, and of a need for  
multilateral, rather tlian bilateral, conferences. For an initial  
system, it has to be assumed tliat interpretation is available  
locally within the studios participating in a videoconference.  
However,  study continues as to how translation services could  
eventually be incorporated into the system.

-4-
As far as multilateral conferences are concerned, equipment which  
will permit such a service is currently ui.id.er experimentation ’ ey the  
Ilember State telecommunications administrations , and can be expected  
to be commercially available by the end of 1906.
3 . CramUCATICINS HCTflQRK
An extensive analysis has teen made of the communications network  
necessary to support the proposed systen. In this analysis,  
responses were sought to the following questions:
is it already possible, using existing infrastructures as well  
as intentions expressed, lay the Ilember .States, to link all  
Memter States by a suitable broacitend network?
whilst, at first sight, a network, based on the use of  
satellites should be the most rapid to be inolmonted, can a  
terrestrial network also be envisaged?
how long will it take to sot up a videoconference connection?
\killst some conferences could accept a prenotification of hours  
or even days, what are the consequences of a very short set-up  
time, of the order of 15 minutes?
For the economic aspects of the project, the criteria identified  
were:
what is the economic trade-off between the use of satellites or  
of terrestrial communication techniques? Does this trade-off  
vary as a function of the traffic carried, or with time?
should a satellite system be used, how long would it take to  
write off any necessary ground segment investment?
what are the cost impacts of a very short set-up time?

-5-
what charges or tariffs are necessary for the exploitation of  
the network?
As a consequence of the study, it could be concluded that:
It will be possible, as of 1986, to link all the countries of  
the Community by a broadband network made up of terrestrial or  
satellite links at 2 Mb/s, according to the equipments  
available at national level. As of 1988, it will be possible  
for all countries to choose - on either technical or economic  
criteria - between the use of terrestrial or satellite links  
(provided that the overall coherence of the network is not  
endangered).
However, this initial solution has to operate on the basis of  
prior (up to 2 days)) reservation for a videoconference. For a  
'rapid availability' service - link established in less than 15  
minutes - solutions exist technically, but at a higher cost per  
hour of videoconference.
As far as communications costs are concerned, it may be shown that  
for low utilisation, satellite links are most economic; with  
increasing use, terrestrial links are most economic; with increasing  
use, terrestrial links become more interesting, particularly for  
short distances. For longer distances within the Community,  
satellite systems remain the most economic.
Since in the initial phases of developments of the system,  
utilisation may be expected to be comparatively loo·/, the following  
options may be recommended for the development of the communications  
network:
In 1986, the network should be composed of satellite links  
insofar as ground segment equipment is available.

-6-
In 1987, the network should follow the same hypothesis of  
maximum satellite system use.
In 1988, as a function of the development of system use, a  
choice can be made between a system using only satellite links,  
or with a 'core' of terrestrial link use for the shorter  
distances centred on the geographic centre of the Community,  
with satellite use reserved for the more distant capitals  
(Dublin, Copenhagen, Rome, Athens, and, eventually, Madrid and  
Lisbon).
4. RESOURCES
A number of hypotheses had to be made to arrive at these costs,  
since the necessary broadband links are only now becoming available,  
and a 'European-wide' tariff policy has yet to be decided by the  
telecommunications administrations (indeed, the administrations are  
in no way committed commercially to the figures shown.
Nonetheless, throughout the analysis, pessimistic (higher) values  
have been retained; the costs shown are therefore anticipated upper  
limits. It is already  known that, for the timescale for the  
implementation of the project, reduction will be made in the  
satellite tariffs from those in practice at the time of the  
preparation of this analysis, which have been used above.
With a baseline communications network identified, an analysis of  
the hourly cost of a videoconference link was made. It was shown  
that, at international level, the hourly cost for use of the network  
will be, for a system with prior reservation, of the order of 1100 
ECU's. For rapid availability, the cost would rise to 1200 ECU/hour  
using Telecom 1 (with higher initial investment) or, according to  
use, between 2000 and 6000 ECU/hour for a system using permanently  
leased terrestrial or satellite links.

-7-
Further, it may be anticipated that, should the implementation of  
the Intergovernmental Vidéocommunications Project be decided, it  
should prove possible to undertake a 'global' negotiation on the  
Europe-wide tariffs to be applied to the system, with grouped costs  
again lower than those derived here.
As far as the investment costs for the videoconference studios are  
concerned, consultation of telecommunications administrations and  
the relevant industry indicated a range of cost of 150-200,000 ECU  
for a studio capable of seating six people in view of the video and  
sound equipment, including all the equipment necessary to encode the  
signals.
Analysis of the potential cost benefit of the system against a  
'normal' conference involving travel of personnel, etc, indicated  
that, with such hourly rates for videoconferencing, the technique  
can already show cost advantages for bilateral meetings between the  
Member States. This comparison was based solely on mission costs of  
staff having to travel to another cpaital, and did not take into  
account any salary equivalent for 'lost time' in travel,  or 
compensation for the absence of staff from their home or offices for  
much longer than the actual duration of the conference.
5. DEMONSTRATIONS
To acquaint potential users with the possibilities  of 
videoconferencing, a first demonstration was held in November 1984;  
Studios were used in Paris, London, Frankfurt, Rome and The Hague,  
Paris being used as a centre, and successive videoconferences being  
set up by connecting it in turn with Frankfurt, The Hague, London  
and finally Rome.

-8-
In all, representatives of eight Member States were present at the  
demonstrations, and a useful exchange of views on the possible  
application of videocommunications for intergovernmental use was  
possible - not least in 'debriefing' sessions after  the 
videoconferences had finished. A number of useful points were  
brought out, emphasizing that the presentation and reliability of  
systems offered for intergovernmental use must be such that the  
system is essentially 'transparent' for the end user - it must not  
be necessary for users to have any need for knowledge of the  
operation of the system.
Further demonstrations are now being planned - the Commission will  
itself have available studio complexes at Brussels and Luxembourg in  
the second half of 1985, together with the necessary communications  
link between them; these studios will then be available for  
operational use of the system, thus building up familiarity with the  
videoconference technique.
6. REVIEW
A detailed study of implementing an intergovernmental  
videocotnrnuni cation network shows that
the system is feasible and could come into service in 1986.  
Initial service could permit bilateral conferences,  
multilateral conferences becoming possible some 12 months  
later.
There would be no need to implement a dedicated communications  
network for the system as the necessary broadband  
communications links are beginning to become available in the  
Cbamunity. However, a decision to implement the system would  
act as a driver to the Member State telecommunications  
administrations to proceed actively with their plans for  
trans-Community broadband communications; this has already  
happened in some cases during the period of execution of the  
feasibility study in order to support some  of the 
videocomnunications demonstrations that have taken place.

-9-
The system would exploit and validate developments in standards  
for videoconference techniques that have been developed within  
Europe, by the COST programme of collaborative scientific and  
technological projects, and by the CEPT association of  
telecanmunications authorities.
In addition to stimulating the industrial base for broadband  
telecommunications, a decision to implement such a system would  
stimulate the capability to provide the necessary  
videoconference studio facilities, a capability which is just  
commencing in the Community. In turn, this would serve to  
reduce the costs associated with the installation of studio  
complexes.
Based on conservative estimates for the tariffs that would need  
to be applied, it can be shown that already, the cost of a  
videoconference is competitive with those conferences involving  
travel between the capitals of the Community Member States.  
Complete with the equipment necessary to encode the video and  
sound signals for transmission over the communications network,  
the investment in a studio complex is in the range 150-200.000  
ECU at present; once this investment is made, the hourly cost  
of videoconferencing is currently of the order of 1100 EOJ if a  
meeting can be planned one or two days in advance, rising up to  
6000 ECU if the system needs to be able to be set up very  
rapidly (15 minutes have been taken as the target). These costs  
represent a pessimistic assessment, and may be expected to  
reduce in the future.
Whilst the use of videoconferencing techniques may not be  
expected to replace face-to-face meetings at Ministerial level,  
or major meetings involving all Member States, it can already  
offer a cost-effective alternative to a major number of  
meetings that take place daily in the context of the Community,  
particularly for bilateral meetings

-10 -
. between Member States
. between Member States and the Community Institutions 
. between Member States and their Permanent Representations.
7. COMMISSION OOWCLJOSICWS
Having reviewed the feasibility of an intergovernmental
vidéocommunications service, the Commission
Considers that an initial Intergovernmental Vidéocommunications  
system should be implemented. In order to reduce the initial  
commitment, a 'target' user group should be identified to  
exploit a pilot network - Foreign Ministries have been  
indicated by various Member States as having perhaps the most  
urgent user requirement, - and Member States encouraged to  
install a first complement of the necessary studio complexes,  
and make arrangements for the availability of the necessary  
communications links.
Invites Member States to encourage their teleconmmications  
authorities to proceed actively with the implementation of the  
trans-Community broadband communications services that, as well  
as facilitating other communications of interest to the  
Community will be able to support the intergovernmental  
videocomnunications services.
Proposes that a continuous review should be made of the  
experience of the pilot user group. After 12-18 months of  
practical use, a report should be submitted to the Council  
summarizing the experience that had been gained, the utility of  
the system, and providing the base for a decision as to whether  
or not to encourage the generalization of the use of  
videocommunciations more broadly amongst the elements of  
government associated with the operation of the Community and  
its Institutions.

TYPICAL VIDEOCONFERENCE STUDIO INSTALLATION

V!DEOCQi\!FEREI\iCe R Q O SV i
Self
Standing
Cabinet
(Remote
Controlled)ZaZaCameras
cz
Monitor MonitorWhiteboard
Overhead  
G  raphic  
CameraWallmountod
Auxiliary
Camera
IZ

P73^RGOVERI^ÎE3SITÂL VIDECrø-IMtBSilCATrCWS PROTECT
FEASIBILnY REPORT

-2-
INTES^GCrvmïïÆglSlTAL ΥΠΜΧΠ ï ï  TOICATiaNS PROJECT  
FEASIBILITY REPORT  
TABLE OF CONTENTS
SECTION 1 IOTRODÜCTION
SECTION 2 SERVICES
SECTION 3 COMJNICATICNS NETWORK
SECTION 4 DEtOISTRATIONS
SECTION 5 PROGRAMME PLANNING
SECTION 6 RESOURCES
SECTION 7 CONCLUSIONS
ANNEX 1 STUDY OF THE INTERNATIONAL ELEMENT OF A EUROPEAN
ETOERGOVERNf'ŒITrAL VIDHOCOMJNICATICNS NETWORK.

-3-
SBCTIGN 1 - INTRCPUCraCN
At its meeting of 28th February 1984, the Council of Ministers of Research  
discussed the study of an intergovernmental videocoranunications project to  
facilitate the exchange of views between the political levels of Member  
States and the Community institutions, between Member States, and within the  
institutions. As a consequence of this proposal, the Commission was requested  
to prepare an analysis of the feasibility of the project; the results of the  
work undertaken are given in this report.
In order to assist in the preparation of the report, the Commission has been  
supported by a Technical Working Group composed of representatives of  
national telecommunications administrations; thanks are due to these  
Administrations extensive discussion has permitted clarification of thé  
services that would be required, as well as the communications network  
infrastructure for an assumed initial service date of early 1986 (and the  
progressive modification of the network with time) together with evaluation  
of possible demonstrations of the capability of vidéocommunications  
techniques to the target user population prior to the planned in-service  
date. The anticipated geographic coverage for the service consists of the  
capitals of the existed ten Community Member States, as well as Madrid and  
Lisbon (to take account of the anticipated enlargement of the Community) and  
the sites of the Community institutions at Brussels, Luxembourg and  
Strasbourg.
Two interim reports on the prgress of the project review have been tabled to  
the Council of research, the first by document SEC(84)1584 of 10th October  
1984, and a more detailed review by document SEC(84)2019, which was tabled to  
the Ministers of Research on 19th December 1984.
This current report reviews the technical capabilities  of a 
vidéocommunications system for intergovernmental use; as such it is the  
"service offer" that can be made to potential users, indicating the technical  
solutions available and the associated costs. The successive sections of the  
report describe;

-4-
the Services that can be offered; 
the necessary Ccmunications Network;
Dononstrations that can aid in assessment of the interest of the 
system;
Programme planning aspects;
the Resources necessary for the implementation of the project; 
Conclusions one. RcoomaentTatians.

SECTION 2 - SERVICES-5-
2.1 immxoroti
Videoconferencing permits a meeting lietween two corresponding groups 
which can communicate at a distance, both by voice· and image, in an 
environment very close to th-at of a normal meeting.
International videoconferencing, by offering loth a substitute and a 
complement to travel and to normal telocoamunications, has more 
particularly an essential role to play in a more efficient 
management of the affairs of the Comriunity. It does not totally 
replace individual travel, but offers a valid human and economic 
alternative to numerous political or business meetings.
A videoconference studio has the ap’oearance of a section of a normal 
meeting room, the other section being replaced by one or more large 
screens, on which are projected the images of the persons at the 
distant studio. A high quality sound link provides voice 
transmi s s i on.
In addition, a videoconference studio offers generally a certain 
nunler of additional services:
rapid transmission of texts and. graphics by facsimile machines, 
transmission of still pictures with high definition (drawings, 
transparencies, tables}, which permit;·, illustration of 
equipments or objects.
Amongst the advantages of videoconferencing can be cited: 
fewer tiring and costly journeys,
a meeting between persons distant iron each other may lye set up 
more rapidly,
it is possible to consult experts who have not imdnrtaken the 
journey to a meeting.

It is possible to make parallels between the requirements of a  
dialogue that takes place during a conference, and how the  
equivalent service may be offered by a videocommunciations link. The  
equivalence is shown indicatively in Tabe 3.1, as they are available  
currently. Improvements are continuing to be made in the 'ancillary'  
services that will be available - faster and better quality  
facsimile transmission, 'telewriting' equipment as an alternative to  
merely transmitting the image from a blackboard;, as examples.
Within the Community, a number of member States are already offering  
national videoconferencing services, and an extensive programme of  
experimentation in international vidéocommunications is underway in  
the European Videoconference Experiment (EVE) of the CEPT. A number  
of public studios exists in Germany, France and the United Kingdom,  
and are being introduced into Italy, the Netherlands and Denmark.  
The EVE experiments are closely based on the exploitation of a  
coder/decoder equipment initially developed under the COST 211  
programme, which converts the video, sound and date charnels needed  
for a videoconference link, into a composite datastream at a rate of  
approximately 2 Megabits/second. It has been assumed that the  
initial system to be proposed for the Intergovernmental  
Vidéocommunications Proj ect should base itself on the exploitation  
of this 'codec' equipment. Indeed, in so doing, the project will be  
able to play a major role in encouraging the exploitation of a  
joint, European wide agreed specification for such equipment;
In this Section, descriptions will be given of typical  
videoconference studios which are currently and commercially  
available within the Community. A further possibility exists, that  
of vidéocommunications equipment between table-top equipment with  
reduced size videoscreens - so called 'visiophones',  or 
'videophones'. Whilst several Member States have experimental  
programmes for such equipment, it is currently premature to  
anticipate that an early, European wide network can be implemented  
using such terminals. Thus, the initial system studied has been

-7-
based on the use of videoconference studios, with the use of  
videophone equipment being adopted in a later phase.
Current techniques for interconnecting videoconference  
cormuni cations are restricted to 'single-studio' to 'single-studio'  
links - that is, bilateral conferences. Whilst such conferences form  
the large majority, equipment which will permit multilateral  
conferences - interlinking several videoconference studios - will  
became available during 1986; so that the Intergovernmental network  
can be expected to be capable of extension to provide such services  
comparatively soon after its initiation; this subject will be  
reviewed again in Section 3, 'Communications Network', where the  
implications of the need for the 'Multiconference' equipment on the  
network configurations will be analysed.
Two particular problems associated with international  
videoconferences for senior governmental officials are worthy of  
more detailed study, since specific technical solutions may have to  
be found. These problems are those of security of the communication,  
and of multilingual translation; they will be treated specifically  
in this Section.

-8-
FIGüRE 2.1 - CONFERENCE NEEDS AND POSSIBILITIES OF VIl^CXXIgflNICftTION
COSDFERENCE
ACTIVITYVIDBOCXMfflNICaTICN
EQUIVALENT
1. Mutual Introductions Participant's image, sound and  
document links
2. Speaking, listening,  
giving explanationsParticipant's picture,  
sound link
3. Distributing and Examining
documents, pointing out something  
on paper, adding commentsfacsimile link
4. Writing on a blackboard,  
explaining with blackboard,  
adding or erasingTransmission of blackboard  
image
5. Slide or overhead projection,  
explanations of imagesdocument camera
6. Object description, demonstration  
explanationObject image
7.
8.Requesting floor, interrupting
Requesting attention, giving the  
floorSignal to Chairman
Signal for Chairman to parti­
cipants (sound)
9. Consulting persons outside the Telephone (or videophone)
meeting equipment

-9-
2.2 TXPIC AL V H M X U N E S R E N C E  STUDIO O C M F I O J I R m C K S
A wide range of studio configurations is now available within the  
Member States of the Coniminity - a basic guide is shown in Figure  
2.2, where equipment complements for 'minimum', 'standard' and  
'advanced' studios are given. To illustrate further, Figures 2.3 and  
2.4 show a floor plan and an overall view of a 'standard' type  
configuration. Individual studio configurations are for decisions by  
Member States, and may include reception and consultation areas in  
addition to the basic studio facility? in outlining an initial  
configuration for the Intergovernmental project, use of studios  
corresponding to the 'standard' configuration has been assumed.
The usual configurations of studios are designed around the  
capability to seat 6 people at a conference table in front of a  
camera/monitor complex which will transmit their image to the remote  
studio. Usually provision is made for the attendance in the studio  
of a further equivalent, number of people - who are not, however,  
within the camera coverage zone.

-10 -
FIGURE 2.2 - CONFIGURATIONS FOR VIDEXXXMFnn^lCE STUDIOS
Type 1 - Minimum Ctanfiguratiari
Single high quality camera 
Large dimension receive monitor 
Monitor for document reception 
Simplified sound equipment 
No special lighting or room treatment.
Type 2 - Standard Oonfiguration
3 Cameras for participants + 1 document camera 
2 large dimension receive monitors
special videoconference furniture, with associated microphones
Video and Sound Controls
Lighting by special neon and spot-lights
Acoustic treatment and Air Conditioning.
Type 3 - Advanced Configuration
In addition to the equipment complement of the 'standard' configuration:
two videoprojectors (widescreen system) for image reception of 
participants or documents 
1 blackboard camera 
1 rapid facsimile machine 
more elaborate lighting system.
A detailed breakdown of the costs associated with videoconference studios is 
developed in Section 6; however, it can already be noted here that the 
'turnkey' cost of a 'standard' studio configuration may be expected to be in 
the range 150.000 - 250.000 ECU, (varying as a function of quality of 
equipment, be it cameras, monitors or furnishings): this includes the cost of 
the coding and decoding equipment (although for seme countries, the policy 
can vary ~ they may be incorporated away from the studios).

-11 -
2.3 VISIOPHONE BQtJIPMEWT
Although not publickly available, several Member States have 
developed visiophone equipment. This is a 'desk-top' equipment 
comprising:-
a built-in telephone with dialing system 
a television screen
. permitting video of the person (or persons) with whan 
communications is established, be they using another 
visiophone, or in a videoconference studio 
. permitting access to a videotex system
. permitting access to video information stored on 
videodiscs or magnétoscopes linked to the system, and 
which can be remotely commanded.
A camera for transmission of the participants image to others, 
or to transmit the image of a document.
An alphanumeric keyboard for access to databanks.
Thus, a visiophone terminal can be used for a number of activities; 
it will permit participation in a videoconference from an individual 
office, thus avoiding any need for moving to a videoconference 
studio; it also enables participation 'on call' iron an ongoing 
videoconference, as well as having a cost advantage compared to the 
major investment associated with the installation of a 
videoconference studio complex.
The availability of a visiophone terminal provides services beyond 
that of linking into videoconferences; it can be used to provide 
access to videotex hosts, by which alphanumeric or graphics messages 
can be shown on the screen by user interrogation. Current services 
available from such systems include meeting calendars, Community 
databases, telephone number listings, etc. New services now becoming

Figure 2.3
VlDEOCOÌ\IFERES\ICE RO D IV I
LAYOUT
z x
IVlonitorCameras
C=3
M onitorWhiteboard
\
Overhead
Graphic
CameraWnllmountod
Auxiliary
Camera
sz

-1 3 -
available are associated with the capability of a visiophone 
terminal to access data banks containing image information, either 
stored on magnétoscopes or on video disc equipments.
An overall schematic of the services to which visiophone terminals 
can be linked is presented in Figure 2.5.
Since the aim for the Intergovernmental Vidéocommunications Project 
is to provide links between senior representatives of the 
governments of the Member States of the Community, in analysing the 
services to be made available it is necessary to take account of the 
requirements for security of the communications, and for the 
provision of such translation services as may be necessary.
problems of the studio/teminal complexes, and of the communications 
links. For the broadband communications links identified as 
necessary for the system by the analysis of Section 3 below, the 
technologies to be used are either satellite communications, or, for 
terrestrial links, fibre optic lines. For the latter, there is a 
high degree of physical security - it is extremely difficult to 
intercept a fibre-optic cable link, let,alone decode the 
communications streams being carried by the cable. At first sight, 
the satellite link is capable of being received, and eventually 
decoded, by reasonably simple and inexpensive equipment. In order to 
provide a first level of protection, the satellite communications 
systems offered by Eutelsat for broadband communications within 
Europe are coded using a 'scrambling' algorithm. Thus, it cam be 
concluded that the basic security of the communications links is the 
same for the two transmission techniques. This may not be quite so 
true for normal '  microwave'  links should they form part of the 
terrestrial communications net; in consequence, in preparing the 
network proposals of Section 3, use of such a transmission mode.has.2.4 THE PROBLEM OF ENCRYPTION AND TRANSLATION
In the case of security, it is necessary to review the

Figure 2.4 TYPICAL VIDEOCONFERENCE STUDIO INSTALLATION

isiophone centre, a videoconference room, a Videotex host or ani
DATABANK QF ANIMATED IMAGES
2.5 SCHEMATIC OF INTERCONNECTION OF VISIOPHONE SERVICES

-16 -
been restricted; however, should it prove possible to implement 
ebnd-to-end encryption, the use of microwave linies would prove 
acceptable.
There remains a capability for 1  end-to-end' encryption between the 
videoconference studio; this is possible by the addition of an 
'additional scrambler' element to the equipment used for coding and 
decoding the sound/video signals. Normally not supplied with such a 
capability, the basic equipment design foresees the possibility of 
its inclusion; once a decision to go ahead with intergovernmental 
videocommunications links were to be taken, it would be fore the 
respective government communications agencies to agree on specific 
details of the coding to be used, which of course need not 
necessarily be that offered by the equipment manufacturer as the 
standard option for encryption.
It has not been felt necessary to examine in detail the propblem of 
interception of the signals from either studios or terminals; the 
key element of the Intergovernmental Project is that studio 
installations or videophone equipment should be located in the 
immediate proximity of the users - that is, there is no use of 
'public' studios, the installations being within government ministry 
buildings. Thus, this aspect of the communication security problem 
is no different to that applicable to other internal government 
services.
For the problems of translation, there is no technical obstacle in 
the way of placing in the network a centralized translation unit. 
However, the conditions of work of translators working in such an 
environment would be extremely difficult, both operationally and 
psychologically, and in a definition of an initial intergovernmental 
service, such a facility has not been included. It needs to be 
stressed that videoconferencing should not he viewed as a substitute 
for Community-wide meeting; the installations currently foreseen 
give more geared to substituting bilateral meetings, for example,

-1 7 -
botv/oon Member States and the Institutions, Member States and 
Permanent Representation, or amongst Member States.
An extended study of the implications of videoconferencing in 
translation activities is underway in the Commission, because of the 
major role translation plays in Community meetings. In depth 
discussions are being held with interpreter staff, in order to 
define generally applicable and satisfactory operating procedures. 
In an initial system, it has to be assumed that translation 
requirements would be fulfilled by the presence of the necessary 
personnel actually in the studios participating  in a 
videoconference, providing either simultaneous or consecutive 
translation from the image and sound received from the remote 
studio.
SECTION 3 - CX^MJNICATIONS NETWORK
3.1 Introduction: Criteria
To exploit the videoconference studio and videophone equipment that 
is currently available, and has been reviewed in Section 2, above, 
it is necessary to identify a broadband communication network (in 
fact, at 2 Mbits/sec) linking ifenber States capital and sites of 
Community institutions. Such links are only now becoming available, 
and it is clear that the Intergovernmental Vidéocommunications 
Project has a potentially important 'driver' role in this area, in 
some cases stimulating implementation or improvement of intra- 
Community ccmmunications links that might otherwise be delayed.
In preparing a network configuration, a number of key aspects, both 
technical and economic, we re used as evaluation criteria. For 
technical aspects, the criteria used were:
is it already possible, using existing infrastructures as well 
as intention expressed lay the Member States, to link all Member 
States by a suitable broadband network?

_18_
whilst, at first sights, a network based on the use of 
satellites should be the most rapid to be implemented, can a 
terrestrial network also be envisaged?
how long will it take to set up a videoconference connection? 
Whilst some conferences could accept a prenotification of hours 
or even days, what are the consequences of a very short set-up 
time, of the order of 1 5 minutes?
when will it be possible to set up multilateral conferences?
For the economic aspects of the project, the criteria identified 
were:
what is the economic tradeoff between the use of satellites or 
of terrestrial communication techniques? Does this tradeoff 
vary as a function of the traffic carried, or with time?
should a satellite system be used, how long would it take to 
write off any necessary ground segment investment?
what are the cost impacts of a very short set-up time?
what charges or tariffs are necessary for the exploitation of 
the network?
An extensive analysis of these aspects is contained in Annex 1; this 
current section is intended to highlight the conclusions.
3.2 Technical Analysis of the Network
In order to prepare a technical analysis of the network, a review 
has been made of existing infrastructures and of plans for new or 
additional infrastructure elements by Member States.

:  avai Labte in 1986

-23-
In the case of satellites, Europe has now an advanced regional 
satellite network implemented and operated by Eutelsat, a consortium 
of telecommunication administrations. For the transmission of the 
broadband link necessary for carrying videocommunications traffic, 
Eutelsat offer a "Satellite Multiservice System" (SMS) which permits 
broadband communications between comparatively small ground stations 
that can be located close to major population centres. Use of this 
system, (and the relevant cost); can be based either on permanent 
lease of a link, on regular parttime use, for a single specific 
requirement, or, in certain cases, on a 1  call-by-call'  basis. A 
review of the constraints arising from the target user population of 
the Intergovernmental Videocommunications Project implies that, of 
the range of possibilities, it is only possible to retain either 
full-time lease, single specific requirement use, or the call by 
call option. A review has been made of the plans for implementation 
of th cessary ground segment equipment by the administrations or 
each Member State, so that the availability of the services may be 
identified, as a function of time.
Equally, a review was carried out on the plans for implementation of 
broadband terrestrial communications systmes capable of carrying 2 
Mbits/second - the availability of these links is shown in Figure 
3.1.
For each year, 1936, 1987 and 1988, taking account  of the 
progressive implementation of either satellite or terrestrial 
systems as a function of each Member State, possible scenarios were 
analysed for either "all-satellite", "all-terrestrial", or "mixed" 
network solutions. These scenarios are described in detail in 
section 1.1 of Annex. 1. Although not considered in detail in the 
analysis of the Annex, examination shows that incorporation of links 
to Madrid and Lisbon, to enable Spain and Portugal to be fully 
incorporated into the network, is easily and costeffectively 
available by the use of satellite techniques; indeed, in the case of 
Portugal, the solution is extremely attractive, since early plans

-21 -
exist for a major earth terminal for the Eutelsat system; allocation 
of a portion of this station's capacity for videoconferencing would 
cost much loss than a dedicated terminal.
3.3 Multilateral Conferences
At least in a first phase, it appears probable that the majority of 
requirements for videoconferencing can be satisfied by 'bilateral' 
links (i.e. between two studios) - market reserach within the 
Community has indicated that more than 85% of conferences can be 
satisfied, by a bilateral link. However, within the framework of the 
Community and its institutions, eventual extension to multilateral 
links must be anticipated. This implies a requirement for switching 
the communications links around the network; whilst the necessary 
equipment (Ilulticonference Unit) is being developed within the EVE 
programme of the CEPT, complete industrialization has not yet taken 
place, production units of the equipment only becoming available at 
the state of 1985. Hie equipments v/ould need to be placed at certain 
modes of the communications network, which would vary on the mix of 
satellite and terrestrial liaisons. For a complete satellite system, 
it may be possible to use only a single equipment, whilst a 
terrestrial network v/ould need a basis of two units, eventually 
extending to four.
3.4 Rapid Conferences Set-up
The majority of videoconference systems require reservation in 
advance - after several days. Whilst the large majority  of 
conferences in an intergovernmental system can Lie expected to be 
compatible with this constraint, there will remain a percentage of 
conferences - particularly between the higher levels of government, 
where a requirement for much faster set-up of conferences exists. An 
analysis  has therefore been made of the possible methods  of 
providing rapid set-up of videoconferences - a target of 15 minutes 
has been adopted.

DUBLIN]
[  Lis bor.AMSTERDAM
Wl *
LONDON
b r u  SSELS \A L N
k : . \
LUXEMBOURG■ ■  BONN
PARIS■«/STRASBOURG/
c '  ·  3-2 ,no* SCENARIOScenario - 1986 -
use of satellite systems whenever possibleDescription:
Satellite network whenever possible  
Brussels and Luxembourg are linked to London
Investments:
1 antenna at Copenhagen
1 antenna at Athens (the present proposed  
tariff for the Paris-Athens ground link is  
too high).

Scénario 3-3· 1987 -  SCENARIO
USE OF SATELLITE SYSTEMS WHENEVER POSSIBLEDescription:
- Satellite network whenever possible
Investments:
- 1 antenna at Athens
i
"b*

LONDON
PARISAMSTERDAM
■
BRUSSELS \
BONN \('LUXEMBOURG --------
---------------- «/'STRASBOURG 3»
K
C'
VR
OME
Scénario 1987 -- SCENARIO.
USING ^ore1  of terrestrial links to and from Brussel. Description:
- Mixed network: towns at a distance  
(Rome, Copenhagen) or towns likely to  
have little traffic (Amsterdam)  
are not linked to the ground network.
. Investments:
~ 1 antenna in Athens
ATHENS 
■ \

-25-
For satellite links, the major delays are currently administrative, 
since the setting-up of the system is not yet automatic. There are, 
however, a number of possibilities, which are analysed in detail in 
section 1.2 of Annex 1. Two possibilities exist, (both of which 
would require additional investment of resources over and above the 
basic system).
These are:
Full time reservation of the relevant satellite or terrestrial 
circuits
When available (only on the Telecom-1 satellite system), use of 
the 'call-by-call'  service -; which will, however, only come 
into service in the latter part of 1986.
Rapid set-up using terrestrial circuits, on the equivalent of the 
satellite 'call-by-call'  system, will only become available when a 
broadband, switched European network is implemented, in same years 
time.
3.5 Traffic Hypotheses
In order to aid in a choice between the various network scenarios 
identified in section 3.2, it is necessary to take into account the 
volume and distribution of the anticipated traffic. Since, at the 
current stage of the development of videocommunicatio'ns within 
Europe, it is extremely difficult to derive precise information on 
the anticipated traffic, an analysis based on the required links has 
been prepared. If, to the 10 capitals of the existing Member States, 
Strasbourg is added, the overall network consists of 55 possible 
links. These links have then been weighted on the probability of a 
link being required between a particular "city-to-city" pair. In the 
further work on communication requirements, it lias been assumed tliat 
the "nominal" duration of a conference can lee taken as 3 hours.


Scenario1  ·6 - 1986 - SCENARIO
USING IC0REI OF TERRESTRIAL LINKS TO AND FROM BRUSSELS

-28-
3.6 Information on Tariffs
Since the provision of both videocommunications services and of 
broadband communications is in an embryonic state, information on 
tariffs that would be applicable for the project is difficult to 
cone by: some Member States have tariffs for a videocommunications 
service, others have individual tariffs for satellite or terrestrial 
broadband communication, and tariffs may not be harmonised across 
international boundaries. The overall problem is currently under 
study v/ithin the framework of the CEPT; in order to obtain tariffs 
for the Intergovernmental project, it lias therefore Ixien necessary 
to make a number of assumptions.
In the case of the use of satellite links, the published Eutelsat 
tariffs for the SMS network correspond only to the use of the space 
segment; in order to identify the cost element arising from the 
necessary ground segment equivalent, the relevant element lias been 
derived by correlation with the tariffs used lay the CEPT for the 
ongoing EVE programme. For key terrestrial elements, such as the 
central network of links to and from Brussels, guidance provided by 
administrations has been used - although it must be underlined that 
the tariffs derived are 'best estimate' figures for expected future 
services and are not firm proposals emanating from network 
operators.
3.7 Economic Canparison of Scenarios
To undertake a first analysis of the tradeoff tetween satellite and 
terrestrial system for an operational system, a canparison has been 
made for the situation which will obtain in 1908, where there will 
be a clear technical possibility to compare an 'all-satellite' 
network with an 'all-terrestrial' network. The result of this 
analysis may be summarized by the following table:-

29
conferences per month  
using the systemTotal Number of Cost ratio, terrestrial network  
to satellite
35 +166%
100 + 13%
400 - 7%
This summary shows, tliat for a lower level of use of the system, 
satellite techniques have a cost advantage, with the 3)alance moving 
to\\/arcls a terrestrial network as the level of use increase. 
Reviewing the evolution of the network from 1986, the following 
conclusions may be made:-
In 1986, scenarios which use satellite techniques wherever 
possible are the most economic, except where specific 
provisions have been made for dedicated terrestrial links 
(which is the case for a Brussels/Luxembourg Link).
In 1987, the use of satellite links where available is more 
cost effective up to a basic conference Tier country rate of 15 
per month; above that, a mixed system using terrestrial links 
for a network centred on Brussels, linking it to capitals 
expected to have a high communications flow, becomes more 
attractive.
In 1988, an 'all-satellite' system is more economic up to 20 
'basic conferences' per month; above this, a 'mixed' system as 
identified above for 1987, again becomes more attractive.
The five scenarios possible from the above summary are given 
successively in figures 3.2 - 3.6; it cannot be stressed too 
strongly that these portray 'snap-shots' of possible networks, and 
that in the context of an operational system, continuous evolution 
of the network loetween the sample scenarios would be expected to

take place, optimising the cost-effectiveness as a function of 
availability of new links, be they satellite or terrestrial, as well 
as taking account of eventual tariff policy modifications decided by 
telecommunications authorities.
In addition, account must also be taken of the need, for extremely 
high traffic requirements, to 'double-up' on terrestrial 
communication links (simultaneous requirement for more than a 
conference at a time between key cities). Analysis has shown that 
this provision is necessary above more than 30 conferences per 
country per month.
Analysis of the scenarii presented in Figures 3.2 to 3.6 indicate 
that, in certain instances, the existence of ground station 
receiving equipment at certain locations in advance of its currently 
planned availability, is interesting to improve the overall quality 
of the network. It is possible to estimate the-economic interest of 
the ground segment investment by comparing the cost of a 
videoconference using a direct link to the satellite system, with 
that of 'remote' access to the satellite, with a terrestrial link to 
the nearest city with satellite access. Such an analysis, reported 
in Annex 1, shows that, in certain cases, particularly for those 
capitals on the outer ring of the network, on investment in a ground 
station capable of exploiting the Eutelsat S.M.S. network may be 
rapidly covered merely on the basis of the traffic requirements of 
the Intergovernmental Vidéocommunications Project.
3.8 Conclusion of Ccmrnunications Network Analysis
As far as the technical feasibility of the project is concerned, it 
can be concluded that:-

It will be possible, as of 1986, to link all the countries of 
the Community by a broadband network made up of terrestrial or 
satellite links at 2 Mb/s, according to the equipments 
available at national level. As of 1988, it will be possible 
for all countries to choose - on either technical or economic 
criteria - between the use of terrestrial or satellite links 
(provided that the overall coherence of the network is not 
exchanged).
However, this initial solution has to operate on the basis of 
prior (up to 2 days) reservation for a videoconference. For a 
'rapid availability' service - link established in less than 15 
minutes - only three solutions appear satisfactory in the 
immediate:
. full-time lease of terrestrial or satellite circuits;
. use of the 'call-lay-call' mode of the Eutelsat SMS network 
(limited to use of the Telecom 1 satellite, with 
restricted geographical coverage and additional 
investment);
. the build-up, on the basis of terrestrial lilies at 2 Mb/s 
leased in permanence, and with dedicated equipment, of an 
intergovernmental switched broadband network;
The opening of a service of multilateral videoconference, 
governed by the availability of special 'multiconference' 
switching equipment should be possible from 1986.
For the economic aspects of the network, it may be shown that 
for low utilisation, satellite links are most economic; with 
increasing use, terrestrial links become more interesting, 
particularly for short distances. For longer distances, 
satellite systems remain the most economic.

-3 2.
Since in the initial phases of development of the system, 
utilisation may be expected to be comparatively low, the following 
options may be recommended:
In 1986, the network should be composed of satellite links 
insofar as ground segment equipment is available.
In 1987, again, the network should follow the same hypothesis 
of maximum satellite system use.
In 1983, as a function of the development of system use, a 
choice can be made between ei systen using only satellite links, 
or with a 'core1  of terrestrial link use for the shorter 
distances centred on Brussels, with satellite use reserved for 
the more distant capitals (Dublin, Copenhagen, Rome, Athens, 
and, eventually, Madrid and Lisbon).
As far as charges and tariffs for the use of the network are 
concerned, at international level, the hourly cost for use of the 
network will be, for a system with prior reservation, of the order 
of 1100 ECU's. For rapid availability, the cost would rise to 1200 
ECU/hour using Telecom 1 (with much higher initial investment) or, 
according to use, between 2000 and 6000 ECCJ/hour for a system using 
permanently leased terrestrial or satellite links.
It must again be stressed that it has been necessary to make a 
number of hypotheses in order to arrive at these costings. 
Nonetheless, throughout the analysis, pessimistic (higher) values 
have been retained; the costs shown are therefore anticipated upper 
limits. It is already known that, for the timescale for the 
implementation of the project, reduction will be made in the 
satellite tariffs from those in practice at the time of the 
preparation of this analysis, which have teen used above. Further, 
it is anticipated that, should the implementation of the

-33 -
Intergovernmental Videocornmunicntions Project lx: decided, it should 
prove possible to undertake a 'global' negotiation on the 
Europe-wide tariffs to be applied to the system, with grouped costs 
again lower than those derived here.
SECTION 4 - CBMDNSIRATIOMS
4.1 pmaaoucnoN
As noted in previous sections, whilst videocot xnunicat ions services 
are becoming available in the .Member States, the use is not yet 
extensive; in preparing the feasibility project, it was therefore 
felt userful to arrange demonstrations by which potential users of 
an intergovernmental service (representatives of foreign ministries, 
or of those ministries most directly involved with the day-to-day 
business of the Community) were able to participate  in 
videoconferences and give their reactions. An initial demonstration 
took place in November 1934, and planning is underway for a more 
extensive demonstration which could take place in association with 
the meeting of tho European Council foreseen for June of 1985.
4.2 DEHXIgffiATICN OF NOVEMBER 1984
For tiiis initial demonstration, studios were used in Paris, London, 
Frankfurt, Rome and the Hague. To simplify the network that needed 
to be employed, Paris was used as a centre, successive 
videoconferences being set up by connecting it in turn with 
Frankfurt, the Hague, London and finally Rome; in each case, a 
half-hour videoconference was held, basically on exchanges of views 
on the videoconference technique as experienced by those present; 
when not participating in the half-hour session of their own link 
with Paris, each of the other studios was able to observe the Paris 
end of other videoconferences; however, the system implemented at 
that time did not permit reception by the remote studios of both 
studios of other videoconferences.

34
In all, representatives of eight Member States were 'present at the 
demonstrations, and a useful exchange of views on the possible 
application of videoconmunciations for intergovernmental use was 
possible - not least in 'debriefing' sessions after  the 
videoconferences had finished. A number of useful points were 
brought out, emphasizing that the presentation and reliability of 
systems offered for intergovernmental use must v>e such tliat the 
system is essentially 'transparent' for the end user - it must not 
lie necessary for users to have any need for knowledge of the 
operation of the system.
In all the demonstration was judged by participants to have loeen 
relatively successful, and useful in beginning a process of dialogue 
with representatives of those users for whom the intergovernmental 
project is intended..
4.3 FURTHER POSSIBILITIES PGR EARLY AVAILABILITY OF VIDEOCONFERENCING
Building on the e;qoerience gained from the demonstration of Novemter 
1934, plans have been prepared for a further demonstration which 
could take place at the time of the meeting of the European Council 
foreseen to be held in Milan at the end of June, 1985. Preparatory 
work lias shown that at that time, it should lie possible to link all 
ten of the Community capitals to Milan by an appropriate broadband 
satellite link, as well as to have satisfactory studio facilities or 
videophone equipment at each location. It is anticipated that 
videocommunications facilities will be available at the building 
housing the meeting during the whole period of the Council. It will 
lie for national delegations to make use of the videoconference 
facilities as they wish - it will be a service available to them, 
just a telephone or telex services will be available.
Further illustrations of videoconferencing are also being prepared, 
for example, in order to be able to invite.  progressively senior 
officials of the different countries  of the EEC to use 
videoconferencing in their normal work in the Corrnunity, between a 
country and the Community in Brussels.

-35-
SECTICN 5 - PLANNING
5.1 Discussion
The key element in planning for the Intergovernmental 
Vidéocommunications Project will be a decision to implement such a 
system; from there on, the time durations for various individual 
elements can be given.
In Section 3, it has Iæen shown that, subject to certain investments 
in specific cases, a communications network capable of supporting an 
intergovernmental system could be implemented early in 1936; 
modifications, improvements and extensions of the system through 
1988 are also identified in that Section; thus, communications 
constraints do not impact on a early-1986 in-service date.
As far as studio complexes are concerned, it appears frcra recent 
consultations of relevant industry that a complex can 1x2 completed 
and installed well within six. months - delivery'· timescales of 1-6 
months have teen quoted based on the availability of adequate areas 
within existing buildings. As far as technical equipment  is 
concerned, the equipment element with potentially the largest 
delivery is the equipment for coding and encoding the signal 
produced, from the studio; this is because the equipment is currently 
commencing industrialization in various of the Community Member 
States, and is being ordered in develomental hatches, this means 
that the delivery'· of a 'codec' could te any tiling between 6 weeks and 
6 months, depending on how the order coresponded with the production 
timescale of the chosen contractor; (even so, it should be remarked 
that, by the end of 1985, at least four manufacturer of such 
equipment will exist in the Member States). As far as studio 
construction and integration is concerned, there is a comparatively 
large nunber of companies (15-20) currently capable of undertaking 
such work, and as the market expands, it is anticipated that there 
will lie further companies entering the field.

-36 -
Thus it may be concluded that, from the teclmical and implementation 
points of view, it is perfectly reasonable to conclude that an 
initial intergovernmental vidéocommunications system  may be 
available early in 1986, if a decision to implement it were to be 
taken during the first half of 1985. This initial system would be 
able to support bilateral conferences betv’een videoconference 
studios; during the course of 1986, a capability for multilateral 
conferences, linking several studios, would become available. 
Progress is ]seing made in the implementation of the necessary 
equipment with the "European Vidoocamumications Experiment (EVE)1  
of the CEPT; in January 1985, an experiment linking four capitals 
was highly successful.
SECTION 6 - RESOURCES
6.1 INVESTMENTS AND SYSTEM COST
The resources needed for the Intergovernmental Vidéocommunications 
Project may be divided into three main areas - national investments, 
possible Community investments and the anticipated annual running 
costs of the system. It should Jx» noted that the elements given 
correspond to 'reasonable orders of magnitude'.
As far as national investments are concerned, the key element is the 
provision of the necessary studio complexes. As noted in Section 2, 
the cost of such a facility installed into an existing building is 
in the region of 150.000 - 250.000 ECU, depending  on the 
sophistication employed. This would be the Investment cost nsr 
government unit (ministry, etc.) involved. Once visiophone equipment 
is freely available, it is e:cpected tliat each individual unit would 
cost approximately 6.000 ECU. Addition of encryption equipment is 
expected to add 5.000 ECU per site should it be incorporated into 
the 'codec' equipment. Highly secure systems exist which would 
involve encryption of the 2 :Ib/s studios themselves; the cost of 
such equipment is approximately 30.000 ECU.

7
-3 -
On o hypothetical basis that each Member State would install  
videoconference units in 3 ministerial locations (and using a mean  
studio price of 200.000 ECU), and eventually would procure 20  
visioconferenco units it may thus be estimated that the national  
investment of each Menber State for such an initial system would be  
of the order of 720.000 ECU.
It must be stressed however, that this investment could te over a  
period time, since it m y  be decided to commence with links between  
only one set of ministries (e.g. Foreign Affairs), with  
videoconferencing capability teing extended to other government
units as experience was gained.
There appears to be comparatively little scope for Community  
investment, the only areas in which it could lie justified being  
those in which specific units are necessary to combine the whole  
system into a unit; this could include either the "lulticonference  
Units, which would enable multilateral conferences to be carried  
out, or, should it be decided to implement a specific central  
control fmotion in the network, the provision of the necessary  
control equipment.
The annual running costs are basically those for the network, which  
would,  of course, consist of payments to the respective  
telecommunications administrations of the Menter States. The various  
elements have been brought out in detail in Section, on the network  
analysis, where it has teen shown that the expenditure will vary as  
a fmotion of system use, and between Member States. However, the  
hourly cost for a videoconference has been shown to te currently of  
the order of 1.100 ECU although higher costs would te needed for a  
rapid set-up service, ranging up to 6.000 ECU per hour as a function  
of the technical solution adopted).

- f -
Whilst the uncertainties in this figure must again be underlined,  
based as it is on estimation of the tariffs that will became  
applicable for such a service. However, as has teen noted earlier in  
this study, deliberately, conservative assumptions have teen made in  
the derivation of cost figures; those riuoted above are "not to be  
exceeded" numbers; already, for the satellite tariffs, reductions of  
up to 25% have teen proposed by Eutelsat, the satellite system  
operator.
6.2 GOST BENEFIT - EXAMPLE ANALYSIS
As noted above, an hourly cost for a videoconference link of 1100 
ECU may be derived for a videoconference that does not require rapid  
set-up. If, again, a 'standard conference duration' of 3 hours is  
taken, then, the recurring cost of a videoconference using the  
system outlined above will be in the range of 3000-3500 ECU  
(although, once more, noting that the assumptions on which the  
hourly tariffs have been derived are conservative).
It is of interest to compare this with, for example, a conference  
associating representatives from Brussels and Rome, as seat of the  
current Presidency. In fact, links between two videoconference  
studios of the type described would permit twelve people to be  
associated with the meeting at either location, however,
a. restricting the calculation to the mission costs of 6 people  
needing to travel to the 'remote' point for the videoconference
b. taking no account of any costs incurred at the host location,
c. assuming commercial air fares, it can te shown that just in  
travel and subsistence costs, for 5 people to te present from  
Brussels for a meeting in Rome costs 4000-4500 ECU.

-39-
Thus, for this type of meeting, videoconferencing is already cost  
effective at current tariffs ccmpared solely with mission costs.  
This is even before taking into account the salary equivalent for  
'lost time', the major man-deployment benefits that, immediately at  
the conclusion of a videoconference meeting, participants are again  
available in their own office.
Obviously, a range of similar analyses can be made, but this  
particular example has the advantage of referring directly to  
meetings that have been necessary during the period of preparation  
of this note, with the Presidency of the Council being held by  
Italy.
SECTION 7 - CONCLUSIONS  
7.1 REVIEW
A detailed study has been made of the possibility of implementing an  
intergovernmental vidéocommunications system to assist in the work  
of the Community Institutions and the Member States. Detailed  
conclusions can be summarized as follows:
7.1.1. Technical
The system is feasible; an initial system could cone into service  
during 1986. Whilst initially, confined to bilateral conferences,  
the possibility of extension to multilateral conferences can be  
expected seme twelve months later.
There would be no need to implement a dedicated communications  
network for the system, as the necessary broadband communications  
links are beginning to become available in the Community. However, a  
decision to implement the system would act as a driver to the Member  
State telecanmunications administrations to proceed actively with  
their plans for trans-Ccmmunity broadband communications; this has

-40-
already happened in seme cases during the period of execution of the  
feasibility study, in order to support some  of the 
vidéocommunications demonstrations that have taken place.
The system would exploit and validate developments in standards for  
videoconference techniques that have been developed within Europe,  
by the (30ST programme of collaborative scientific and technological  
projects, and by the CEPT association of telecommunications  
authorities.
In addition to stimulating the industrial base for broadband  
telecommunications, a decision to implement such a system would  
stimulate the capability to provide the necesary videoconference  
studio facilities, a capability which is just commencing in the  
Community. In turn, this would serve to reduce the costs associated  
with the installation of studios complexes.
7.1.2 Cost Aspects
Based on conservative estimates for the tariffs that would need to  
be applied, it can be shown that already, the cost of a  
videoconference is competitive with that of conferences involving  
travel between the capitals of the Community Member States. Complete  
with the equipment necessary to encode the video and sound signals  
for transmission over the communications network, the investment in  
a studio complex is in the range 150-200.000 ECU at present; once  
this investment is made, the hourly cost of videoconferencing is  
currently of the order of 1100 ECU if a meeting can be planned one  
or two days in advance, rising to up to 6000 ECU if the system needs  
to be able to be set up very rapidly (15 minutes has been taken as  
the target). These costs are pessimistic, and may be expected to  
reduce in the future.
7.1.3. General
Whilst the use of videoconferencing techniques may not be expected

-41-
to replace face-to-face meetings at Ministerial level, or major  
meetings involving all Member States, it can already offer a  
cost-effective alternative to a major number of meetings that take  
place daily in the context of the Community, particularly for  
bilateral meetings.
between Member States
between Member States and the Community Institutions
between Member States and their Permanent representations.
Translation remains a problem with an initial system, where it has  
to be assured that interpretation is available locally within the  
studios participating in a videoconference. However, study continues  
as to how translation services could eventually be incorporated into  
the system.
7.2 COMMISSION CTagGLOSICMS
1. The Commission considers that an initial Intergovernmental  
Videocarenunications system should be implemented. In order to reduce  
the initial commitment, a 'target' user group should be identified  
to exploit a pilot network - Foreign Ministries have been indicated  
by various Member States as having perhaps the most urgent user  
requirement, and Member States encouraged to install a first  
complement of the necessary studio complexes, and make arrangements  
for the availability of the necessary communications links.
The pilot phase should extend on a 12 to 18 months period and should  
leal to a better understanding of the videoconference, and later  
visiophony, capabilities and uses (pure substitution to face to face  
meetings and creation of new information exchange habits).
The investment costs and operating costs of each local system  
(terminal equipment and local telecommunication infrastructure) will  
be supported by each user: national administration or Community

-42-
institution. Intra Community transborder télécommunication costs -  
SMS Eutelsat or transborder ground segment could have been paid,  
during the pilot phase by the Community budget. However, current  
restrictions on the available Community resources prohibit such an  
approach. Under these circumstances for each user to pay its share  
of the use of the network seems to be the only realistic solution.
2. The Commission itself will have available in the second half of  
1985, studio complexes at Brussels and Luxembourg and the necessary  
communi cat ions link between them. This system will then be used to  
acquaint Commission staff with the technique, and familiarise  
themselves with the conduct of conferences using  
vidéocommunications.
3. Member States should encourage their telecommunications  
authorities to proceed actively with the implementation of the  
trans-Community broadband communications services that, as well as  
facilitating other cccmunications of interest to the Community, will  
be able to support the intergovernmental vidéocommunications  
services.
The extension of videoconference services to visiophony which seems  
to be capable of playing an important role in the use of  
vidéocommunications for intergovernmental exchanges needs to be  
pursued.
4. A continuous review should be maintained of the pilot user  
group; after 12-18 months of use, a report should be submitted to  
the Council summarizing the experience that had been gained, the  
utility of the system, and providing the base for a decision as to  
whether or not to encourage the generalization of the use of  
vidéocommunications more broadly amongst the elements of government  
associated with the operation of the Ccmmunity and its Institutions.
In addition, a standing review of specific problems associated with  
the use of vidéocommunications for· intergovernmental and  
interinstitutional communications, needs to be pursued. The key  
areas will be security/encryption, the provision of translation  
services, and the availability of multilateral conferences.

Study of the international part: of the European Intergovernmental
Videcrxaranunlcatlons network
COMETS
0. INmXXXIPICN
1 . TECHNICAL FEASIBILITY
1.1 Network aspect
1.2 Rapid availability
1.3 Multilateral videoconferences
2. DATA AND HYPOTHESES
2.1 Traffic hypotheses
2.2 Tariff data
2.3 Tariff hypotheses
3. ECONOMIC STUDY
3.1 Comparison and scenarios
3.2 Pay-back period for a ground station
3.3 Cost of rapid availability
3.4 Charges and tariffs
4. CONCLUSION

Introduction
The point of this study is to examine the international part of the  
European videocommunications network that is to connect up the capitals  
of the European countries by linksat 2 Megabits/second.
The national parts of this network, which may vary depending on the  
number of videoconference studios and the standards specific to each  
country, are not taken into account in this section of the study.
Both technical and economic questions arise. As regards the technical  
feasibility of the project:
it is already possible, using existing infrastructures and on the  
basis of the intentions expressed by each country, to link all the  
Community Member States by a suitable broadband network?
whilst, at first sight, a network based on the use of satellites  
should be the most rapid to implement, can a terrestrial network  
also be envisaged?
how long will it take to set up a videoconference connection between  
several speakers? Will it be better to choose a system requiring a  
few days prior notification or will it be possible to set up a  
connection instantaneously or in less than 15 minutes, on a similar  
basis to a switched telephone service?
will conferences be possible between more than two studios?
As regards the economic aspects of the project:
what is the economic trade-off between the use of satellites or of  
terrestrial communication techniques? Does this trade-off vary as a  
function of the traffic carried, or with time?
should a satellite system be used, how long would it take to write  
off the purchase and use of ground segment equipment?

-2-
What are the cost differences between a service requiring a few days  
prior reservation and a service that can set up a videoconference in  
less than 15 minutes?
What charges or tariffs must be applied for the exploitation of the  
network? Section 1 of this document endeavours to answer the  
questions on technical feasibility. Section 3 contains an economic  
study while section 2 outlines the traffic and tariff hypotheses and  
data on which the study in section 3 is based.
1. Technical feasibility
1.1 Network aspect
Here it is necessary to review existing infrastructures and the  
intentions expressed by each country.
1.1.1 Satellite links
The SMS service proposed by Eutelsat is based on the ECS2 and  
Telecan 1 satellites.
Several types of use are possible:
full-time use: 24 hours a day, seven days a week, the required  
capacity being allocated for an indefinite period of at least  
12 months.
regular part-time use: starting and finishing at fixed times  
each day, seven days a week, use being measured in 30 minutes  
units, with an initial renewable allocation period of three  
months and a minimum duration of 30 minutes per day and per  
session.
reservation by subscription: according to a predetermined plan  
for specific periods, use being measured in units of 30 minutes  
with a minimum duration of 30 minutes per session and for a  
minimum number of 45 hours during a three-month renewable  
allocation period.

-3-
reservation for a single specific requirement: on an ad hoc  
basis with prior reservation for a specified period, starting  
at a specific time, use being measured in units of 10 minutes
call-by-call option (available in the future and on Telecom 1  
only):
automatically, without prior reservation, use being measured in  
units of 1 second with a minimum duration of 10 seconds.
Regular part-time use and reservation by subscription will not be  
taken into account in the rest of this study as they will most  
probably impose too many time constraints on the target user  
population.
Consequently only full-time leasing, single specific requirement use  
and the call-by-call option will be retained as possible methods for  
the SMS service in the European vidéocommunications network.
Table 1.1.1 shows the plans for implementation of ground stations by  
each country. The three years considered are 1986, 1987 and 1988.

-4-
Cbuntry 1986 1987 1988 Garments
ECS T1 ECS T1 ECS T1
Germany Germany X X ECS
Belgium X X - Coverage: EEC,
Denmark X Spain, Portugal
France X X - Functions: links
of n times 64 K
kbits leased
permanently or by
pre-allocated France
periods
United Kingdom X X Telecan 1
Greece X Coverage: EEC less
Ireland X Greece. Dublin,
Italy X Rome and Copenha-
Luxembourg X gen are in the
Netherlands X second band. Lisbon
and Madrid are out-
side the zone
covered.
Functions: identical
to ECS plus call-
...-by-call option
Table 1.1.1: Availability of ECS and Telecan 1 ground segment equipment.
1.1.2 Terrestrial links
Internationally terrestrial links capable of carrying 2 Mb/s  
will gradually be brought into service over the next three  
years. Figure 1.1.2 shows when the ground links of interest to  
the project would be available.

· *  avai table in 1986
tn
Figure 1.1.2  :  Availability of terrestrial linkst

-6-
1.1.3 Greece
Greece's relative remoteness from the other Community countries  
has two consequences.
Should it purchase ground segment equipment, it will have to be  
of the ECS type as the Telecom 1 satellite does not cover  
Greece.
Athens can be linked to Paris using an existing submarine cable  
between Athens and Marseille which is not saturated. However,  
unless there were a special agreement on tariffs the leasing of  
this cable would be extremely costly.
1.1.4 Scenarios
For each year covered by the study, three possible networks  
scenarios have been produced on the basis of equipment existing  
at the time, i.e. ground segment equipment and terrestrial  
links.
In 1986 scenarios 1 and 2 are of the satellite type wherever  
possible, i.e. for all cities having ground segment equipment.  
Brussels and Luxembourg are linked to London in scenario 1, to  
Amsterdam in scenario 2. Scenario 3 is mainly terrestrial: only  
Rcme, Copenhagen (as these two cities cannot be linked by 2  
Mb/s connections in 1986) and Athens (leasing of a link on the  
Marseille/Athens submarine cable is really too expensive) do  
not have terrestrial links. For 1986 the necessary investment  
projects comprise ground segment equipment at Copenhagen and  
Athens.

-7-
In 1987 three scenarios have also been tested: scenario 4 is a  
satellite-type network wherever possible, except for Dublin,  
Luxembourg and Strasbourg which do not yet have ground segment  
equipment and for which the period to write off such equipment  
is relatively long. Scenario 5 is a combined network: a central  
terrestrial network is set up around Brussels and the capitals  
likely to have relatively high traffic: Bonn, London and Paris.  
Dublin, Luxembourg and Strasbourg are also connected to this  
network as they have no ground segment equipment. Scenario 6 is  
a terrestrial-type scenario; only Athens is not connected to  
this network by terrestrial link (for economic reasons as in  
1986). For 1987 the only investment required is ground segment  
equipment in Athens.
In 1988 scenario 7 is an all-satellite network. Scenario 8 is a  
combined network: the terrestrial part radiates from Brussels:  
Amsterdam, Bonn, London and Paris are connected to Brussels;  
Strasbourg is connected to Paris. Scenario  9 is an 
all-terrestrial network with the exception of Athens (for  
economic reasons as in 1986 and 1987). Only  scenario 7  
necessitates investment, i.e. the setting-up of a ground  
station at Strasbourg.
The following figures show the availability of ground segment  
equipment and terrestrial links for each period and illustrate  
the three scenarios corresponding to each of these periods.

GROUND S T A T IO N S  AND TERRESTRIAL LINKS AVAILABLE IN 1986

DUBLIN
AMSTERDAM
4
LONDON
BRUSSEL^
LUXEMBOURG BONN '  
-«/STRASBO URG
PARIS
Scenario 1  - 1986  -.  Description :
satellite-type network wherever possible  
Brussels and Luxembourg are linked to London  
Investment :I
<o
1 ground station at Copenhagen 1
1 ground station at Athens (the current tariff  
for the Paris-Athens terrestrial link is too high)
ATHENS
5

Scenario 2 - 1986 -Description :
Satellite-type network wherever possible
Brussels and Luxembourg are connected to  
Amsterdam
Investment :
t  .  .
1 ground station at Copenhagen
1 ground station at Athens (the current tariff  
for the Paris-Athens terrestrial link is too high)

Scenario 3 - 1986 -1986
•  Scenario 3 · '
Mainly terrestrial network
•  Investment :
~ 1 ground station at Copenhagen  
- 1 ground station at Athens (the current tariff  
for the Paris-Athens terrestrial link is too high)
ATHENi£


Scenario 4  - 1987 -

Scenario 5 - 1987 -Description :
Combined network: the remoter cities (Rome,
Copenhagen) or cities not likely to nave a high  
traffic (Amsterdam) are not connected to the  
terrestrial network
Investment:
1 ground station in Athens
ATHENS
«\
V

Scenario 6 - 1987 -

Ground stations and terrestrial links available in 1988

Scenario 7 - 1988 -

Scenario 8 - 1986 -


-20 -
1.2 Rapid availability
For most videoconference systems it is necessary to make  a 
reservation a few days before the conference. Instantaneous  
setting-up of videoconferences is not possible as there is no  
switching equipment.
Possible methods have been investigated on the basis of a time scale  
of less than fifteen minutes for the setting-up of conferences  
between two studios.
1.2.1 Satellite links
Most of the time constraints are of an administrative nature in view  
of the manual operations to be carried out. Each manual operation  
involves a delay and a degree of uncertainty about the beginning and  
end of the connection since all the facilities have to be connected  
and disconnected at the same time. Consequently the time required to  
set up a connection can be cut down by reducing the number of manual  
operations. The following table (1.2.1) shows the type and quantity  
of operations to be carried out for ECS Telecan 1 satellites for the  
following modes:
current reservation mode
full-time lease o/a satellite circuit
full-time  lease o/a terrestrial circuit (in addition  to the 
satellite circuit)
use of the ROP 2 version of Telecom 1  which will allow  a 
call-by-call service on similar lines to a switched telephone  
service.

-21 -
Exploitation mode—
Operations
Current Full-time Full-time Call by
mode lease of leased call
satellite satellite
circuit + terrestrial
circuits
ECS TC1 ECS TC1 ECS TCI TC1
. Local
Coordination
. National  
Coordination
. European  
Coordination  
(Eutelsat or  
reference station  
at Mulhouse for TC1
. Putting
carrier band  
into service
. Connecting  
terrestrial  
circuit to  
ground
. Connecting  
terrestrial  
switching node
Number of operations
to be carried out

-22 -
Table Comparison of operations to be carried out to set up connections
between two videoconference studios depending on the exploitation mode (each cross  
represents a manual operation).
For a set-up time of less than fifteen minutes, the only viable  
solutions appear to be:
full-time reservation of satellite and terrestrial circuits in the  
case of ECS or Telecom 1,
the use in the future of Telecan 1 in call-by-call mode.
1.2.2 Terrestrial links
Until such time as the broadband ISDN (integrated services digital  
network) is available (i.e. with switched throughputs of 2 Mb/s, iut  
is necessary to use permanently leased links at 2 Mb/s. For the  
switching function use must be made of connection and grading  
equipment (ECB). To reduce terrestrial circuit switching delays (to  
less than fifteen minutes) an attempt will be made to:  
reduce the administrative time for reservation and allocation of  
ECB,
obtain the circuit at the required time.
For this it is necessary to automate the demand fran a console and  
the initiation of circuit switching.
Two solutions are then possible: a central system accessed by each  
country from a console, which manages the reservations  and 
activates:
either equipment specific to the project forming the interfaces  
between the central system and the connection and grading equipment;
or existing equipment, i.e. the reservation centre specific to the  
connection and grading system in each country.

-23-
1.3 Multilateral videoconferences
At least initially, it appears highly probable that user  
requirements can be satisfied by bilateral videoconferences (i.e.  
between two studios).
For multilateral videoconferences the necessary equipment  
(multiconference unit) is being developed under the EVE project set  
up by the CEPT, in France, the United Kingdom and Italy. This  
equipment will be available at the end of 1985.
The multiconference units will be capable of switching sound,  
picture and data channels from one studio to one or more others  
either manually or automatically: for example, the picture from the  
studio where the sound level is highest will be broadcast to all the  
other studios.
This equipment would need to be placed at certain carefully selected  
nodes of the European videoconmunications network:  
for a terrestrial network, possibly Brussels and Paris, then London  
and Bonn;
for a satellite network, there is greater freedom  for the 
installation of multiconference units and a single unit may suffice,  
but the quality of the service will be slightly poorer with some  
studios receiving pictures that have come through two links, thereby  
doubling a propagation time that is already significant in satellite  
transmission.

-24-
2. DATA AND HYPOTHESES
2.1 Traffic hypotheses
To choose between the various network scenarios identified in  
section 1, it is necessary to take into account the volume and  
distribution of the traffic. For a service  as new as 
videoconferencing it is virtually impossible accurately to predict  
the likely traffic between Community capitals.
If Strasbourg is added to the ten capitals of the existing Member  
States,  the system consists of fifty-five possible links or 
fifty-five unknown communication flows. However, the relative level  
of flows between each country can be estimated:
from a small country* to a small or large* country: 1
from a large country to a large country: 2,
iron any country to Brussels as the institutional centre of the EEC:  
2
from any country to Luxembourg or Strasbourg (as cities housing EEC  
institutions): 1.
This gives a matrix of the relative role of traffic flows on each  
cily-to-city (Table 2.1), allowing the number of variables to be  
reduced from 55 to one representative of the traffic volume or the  
overall load on tire network: this variable is called n: the "basic  
number of conferences**". When n = 1 it means that a small country  
participates on average in one conference a month. Tire number of  
conferences in the Community is then 5.8. It is 68 when n = 10.
The
'Hieounfries are the United Lingdom, Germany, France and Italy, 
of a conference is taken as three hours.

- 25 -Bonn
London
Paris
Rome
Amsterdamtn
0)
iAc
o
D
L .
CD
Dublin
Copenhagen
Athens
Luxembourg?
3
5
C O
2
C
O
Bonn 0 2 2 213111 2L
London 0 2 21311121
Paris 0 213111 2L
Rome 01311121
Amsterdam 0311121
Brussels 033341
Dublin 01121
Copenhagen · 0121
Athens 021
Luxembourg 01
Strasbourg 0
Table 2.1: Relative level of communication flows between two  
cities in the network

-26-
2.2 Tariff data
Videoconferencing is a service that is just being set up. Only  
Eutelsat and a few countries offer tariffs for existing or future  
services.
2.2.1 Satellite links
For the SMS service Eutelsat publishes tariffs covering only the use  
of the space segment. The charge for the use of a bilateral circuit  
of 2 Mb/s is
73 000 ECU a month for full-time use (leased satellite circuit),
806 ECU an hour in the case of reservation for a single use,
864 ECU an hour using the call-by-call option (Telecom 1 only).
However, Eutelsat's current charge for its videoconference service  
is twenty times the cost of a 64 kb/s circuit. Discussions are in  
progress in the CEPT to reduce this figure frcm twenty to ten or  
twelve times. Consequently the following table, which gives costs  
for the first hour of a videoconference in the EVE requirements, is  
based on an hourly cost of 4 08 ECU for the space segment,  
cor. responding to ten times the price of 64 Kb/s circuit. These  
charges, which will be applied up to 1 July 1985, include in  
addition to the space segment the terrestrial, connection to the  
ground segment equipment and apply to end-to-end links between two  
cities.
If the hourly cost of the space segment is subtracted, this gives  
the hourly cost of the terrestrial connections at the two ends, the  
average value of which is 326 ECU.

"27-
T o
UK France West Germany Netherlands Italy
Fran
UK - 704 540 704 704
FRANCE 861 - 665 861 861
W. GERMANY 667 667 - 667 667
NETHERLANDS 783 783 605 - 783
ITALY 852 852 658 852
Table 2.2.1: End-to-end charges for the first hour of a videoconference under the  
EVE experiments (valid to 1 July 1985).
2.2.2. Terrestrial links
Some countries offer tariffs for:  
domestic videoconference services, or
leased lines at 2 Mb/s.

-28-
2.2.2.1 Domestic videoconference service
Country Tariff in local currency Tariff in ECU
Germany DM 15 000 for the installation  
per studio
DM 1 500/month/studio  
+ DM 500/hour/studio6 700 ECU for the installation
670 ECU/month/studio  
+ 220 EQU/hour/studio
France FF 20 000 for 15 hours use per 2 900 ECU for 15 hours use per
month per studio + month per studio +
FF 700 per additional hour per 100 ECU per additional hour
studio per studio
Netherlands
(project)HFL 5 000/month/studio  
+ HFL 1 500/hour/studio2 000 ECU/month/studio  
+ 590 ECU/hour/studio
2.2.2.2. Terrestrial links
The following table gives the monthly charges for:
Dublin-UK frontier (analogue) 22 500 ECU per month
'ondon-Irish frontier (analogue) 22 500 ECU per month
Copenhagen-German frontier 18 700 ECU per month
. /  \thens -Mar se i 1 le 300 000 ECU per month
’  irussels-Luxembour g 14 500 ECU per month

-29-
•3 Tariff hypotheses
As section 2.2 indicates, some countries were unable to give a  
tariff for this network. In order to complete the economic side of  
the study, therefore, the hypotheses described below have been  
adopted. The calculations will have to be revised as soon as details  
of precise tariffs have been supplied by these countries.
In the case of the use of satellite links, the tariffs for the SMS  
service corresponds only to the use of the space segment. In order  
to include the terrestrial connections to the ground stations needed  
at both ends of the link it was decided to increase the space  
segment cost by 326 ECU an hour, a figure based on the tariffs used  
for the experiments in the EVE programme (see section 2.2.1). For a  
three-hour conference, the cost amounts to 3400 ECU in the case of  
reservation for a single use (806 ECU + 328 ECU multiplied by 3) and  
3600 ECU in call-by-call mode (Telecom 1 only).
To obtain the cost of an international 2 Mb half-link from Brussels  
to the German, French and Netherlands land frontiers, it v/as  
suggested that the cost of the Brussels-Luxembourg link be  
multiplied by J_5 giving 18 100 ECU.
1 2
For the Brussels-London link the cost of the Dublin-London analogue  
link has taken, i.e. 45 000 ECU per month.
For the London-French frontier half-link, a cost of 22 500 ECU a  
month corresponding to half of the full Dublin-London link has been  
adopted.
In the absence of information from Italy, the cost taken was 20 000  
ECU per month for a 2 Mb/s link from Rone to the French frontier, on  
the basis of the values obtained for other countries (see section  
2.2.2).

-30-
To obtain the costs of city-to-city links on the basis of either  
international half-links to the frontiers or internal  
videoconference services, the following rule was adopted:
. when the link consists of two permanently leased half-links  
their respective costs are merely added fc gether since the  
frontier crossing costs are included in the costs  of 
international half-links;
. when the link consists of a permanent leased half-link on one  
side of the frontier and a domestic videoconference service on  
the other side, the cost of the half-link is added to the cost  
(monthly and yearly utilization costs) of the videoconference  
multiply by 1.5 corresponding to one studio at the end of the  
link and a half-studio at the frontier, so that  the 
frontier-crossing cost is taken into account;
. when the link is based at both ends on domestic videoconference  
services, the costs (monthly and utilization cost) of these two  
services are added together and the total is multiplied by 1.5  
corresponding to the use of one studio at each end of the link  
and two half-studios (one for each country) at the frontier.

-31-
TARIFF HYPOTHESES (ECU) ________________________________  LINK
Pe
r section + per conference* and per month  
and per month
Dublin-London 45 000
London-Brüssels 45 000
London-Paris 22 500 + 4 350 ECU for the first 5 conferences
+ 450 ECU per conference after that
Paris-Brussels
Paris-Rome18 100 
20 000
Paris-Strasbourg 0 + 5  800 ECU for the first 5 conferences
+ 600 ECU per conference after that
Amsterdam-Brussels 18 100 + 3 000 ECU per month + 2 650 ECU per
conference
Amsterdam-Bonn + 4 000 ECU per month + 3 650 ECU per
conference
Bonn-Copenhagen 18 700 + 1 000 ECU per month + 1 000 ECU per
conference
Brus se1s-Bonn 18 100 + 1 000 ECU per month + 1 000 ECU per
conference
Athens-Paris 300 000 + 4 350 ECU for the first 5 conferences
+ 450 ECU per conference after that
Brussels-Luxembourg 14 500 0
* A conference lasts 3 hours.
Table 2.3.2 Tariff hypotheses for terrestrial links (based on the rules set out  
above)

-32-
3. ECONOMIC STUDY
3.1 Comparison of scenarios
rpo obtain an idea of the rspective costs of the satellite and  
terrestrial systems it is interesting to compare the costs of  
scenarios 7 and 9 which correspond to an all-satellite system and an  
all-terrestrial system respectively (with the exception of Athens  
where the cost of leasing a 2 Mb/s terrestrial link for connection  
to Paris is so high that a ground station could pay itself in only  
about 2 months) in 1988, i.e. taking a long-term view of the  
network:
BASIC NUMBER OF
CONFERENCES PER  
MONTHScenario 7  
All
satelliteScenario 9 Difference as %
All (terrestrial/  
terrestrial satellite)
5 115 000 ECU/month  
( 3 400 ECTJ/conf)306 000 ECU/month  
( 9 000 ECU/conf)+ 166%
15 345 000 ECU/month (389 000 ECU/conf) + 13%
60 1 380 000 ECU/month  
3 400 ECU/conf)1 280 000 ECU/month  
( 3 150 ECU/conf)- 7%
* Videoconferences lasting 3 hours.
Table 3.1: Comparison of monthly charges for a network using either satellite  
links or terrestrial links, depending on the level of use of the network.

-33-
Table 3.1 shows that  for a relatively low levelm of use an 
all-terrestrial network is far more expensive than an all-satellite  
network but as the level of use increases an all-terrestrial network  
has a slight cost advantage over an all-satellite network.
These comments account in part for the results for 1986, 1987 and  
1988 summarized below:
In 1986 scenarios using satellite techniques wherever possible are  
the most economic: scenario 2 (Brussels and Luxembourg linked to  
Amsterdam) is cheaper up to a basic number of two conferences a  
month (about 14 conferences in the whole Community), scenario 1  
(Brussels and Luxembourg linked to London) is cheaper for more than  
2 basic conferences a month (see figure 3.1.1).
In 1987 scenario 4 (satellite links wherever possible) is the most  
cost-effective up to a basic conference rate of 15 a month; above  
that scenario 5 (a central terrestrial network based on Brussels,  
linking capitals expected to have a high communications flow, the  
other cities using satellite links if they have ground stations)  
becomes more attractive (see figure 3.1.2).
In 1988 scenario 7 (all-satellite) is the most economic up to 20  
basic conferences a month (or 135 videoconferences for the whole  
Community); above that scenario 8 (combined scenario explained  
below) is more attractive (see 3.1.3).
Scenario 8 was based on interim conclusions from the study and  
corresponds to the best network that can be obtained for high  
communication flows in 1988, i.e. without availability constraints.  
Between scenario 7 and 8 it was possible to imagine a whole range of  
scenarios corresponding to scenario 7 with the addition of one or  
more terrestrial sections used in scenario 8. An evaluation of each  
of these new solutions shows that none of them is more economic than  
scenarios 7 and 8 for traffic below and above a basic conference  
rate of 20 a month respectively.

-34-
Note: calculation of the cost of a terrestrial section in relation  
to level of use.
With a high level of use it may prove necessary to double up on a  
terrestrial link between two capitals: for example, the  
London-Brussels link may be required at any given time for a  
videoconference between London and Brussels and also for a  
videoconference with his French counterpart at the same time as  
their colleagues responsible for industry.
To allow this overlapping requirements in calculating the cost of  
the terrestrial link, the model developed for this study estimates  
that it is necessary to double up when there is a need for more than  
30 conferences a month, and so on.

.  SCENARIO 1  
SCENARIO 2 
.SCENARIO 3\9 S 6 SATELLITE  (Belgian and Luxembourg traffic concentrated on London)  
1986 SATELLITE  (Belgian and Luxembourg traffic concentrated on Amsterdam)  
1986 TERRESTRIAL
COST IN THOUSAND ECU  
1 0 0 0
8 0 0  -
6 0 0  -
4 0 0  -
2 0 0
BASIC NUMBER '  CONFERENCES- A MONTH
Figure 3.1.1. Comparison of scenarios 1, 2 et 3 (1986)

SCENARIO 4
_______ SCLMARIO 5
—------SCENARIO 619
87 SATELLITE (No ground station at Dublin, Luxembourg and Strasbourg)  
1987 MIXED (Satellite for Rome, Copenhagen, Athens and Amsterdam)
1987 TERRESTRIAL (except Athens)
COST IN THOUSAND ECU
1000
800  -
BASIC NUMBER CONFERENCES PER MONTH
3.1.2. Comparison of scenarios 4, 5 et 6 (1987)

1  988 
1  988 
1988ALL SATELLITE  
COMBINED 
ALL TERRESTRIAL (Except Athens)
Figure 3.1.3. :  Comparison of scenarios 7,8 et 9 (1988)
/

-38-
3.2 Pav-back period for a ground station
Son*. c ties in the European network will have no ground stations  
giving them access to the SMS service in 1986. It is interesting to  
determine for these cities how many months would be needed to write  
off the installation of ground segment equipment. It is sufficient  
to compare the cost of a videoconference where there is direct  
access to SMS with the cost of a videoconference where there is  
access to SMS through a terrestrial link connecting the city under  
consideration with a city already having a ground station.
When the cost of the terrestrial link depends on the number of  
conferences a month, so does the pay-back period: this applies to  
Copenhagen and Athens.
Figure 3.1 shows in months how long it would take to for ground  
segment equipment to pay for itself in Dublin, Luxembourg, Brussels,  
Athens, Copenhagen and Strasbourg, depending on the cost of the  
ground station. The following details apply to the ground segment  
equipment cost given in the table:
An ECS antenna costs on average 500 000 ECU for a diameter of 3.5 m,  
or 550 000 ECU for a diameter of 5 m (needed for Dublin, Athens and  
Copenhagen) for a single videoconference channel. To this 50 000 ECU  
must be added for each additional channel.
A Telecan I antenna costs on average 600 000 ECU for a diameter of  
3.5 m, 700 000 ECU for a diameter of 5 m (needed for Dublin,  
Copenhagen and Rome). This equipment can cope with three  
simultaneous videoconferences.
* Brussels and Copenhagen will be equiped in 1987; Dublin, Luxembourg and Athens  
in 1988.

-39-
Cost of ground  
segment equipment 500 000 ECU 600 000 ECU 700 000 ECU
City
DUBLIN 11 13 16
LUXEMBOURG* 34 41 48
BRUSSELS**
(connected to London)
see 3.111 13 16
ATHENS 2 2 2
COPENHAGEN  
5 conferences/month20 24 28
COPENHAGEN  
30 conferences/month10 12 14
STRASBOURG  
5 conferences/months86 103 121
STRASBOURG  
30 conferences/month 24 29 34
* Luxembourg is connected to Brussels  
** Brussels is connected to London (see results in section 3.1)  
Table 3.1: Pay-back period for ground segment equipment (months)

-40-
3.3 Cost of rapid availability
Section 1.2 described technical solutions for obtaining a system  
with a sot-up time' of less than 1S minutes. Those involve higher  
investment and utilisation costs that are described in 3.3.2 for  
satellite links and 3.3.3 for terrestrial links. As the type of  
service offered is different, new hypotheses have to be made for the  
saturation of 2 Mb/s links depending on the level of use (section 
3.3.1).
3.3.1 Hypotheses on service quality
For systems needing reservation a few days in advance, it was  
assumed that for more than 30 three-hour conferences (90 hours) a  
month it would be necessary to double up the 2 Mb/s link.
To maintain a satisfactory quality of service and availability  
(about the same as the telephone service) in rapid set-up systems,  
it is necessary to adhere to the following approximate values for  
the level of use of a 2 Mb/s circuit:
Number of links Approximate maximum level of use
at 2 Mb/s ___________________________________________
in h
ours in number of three-hour
videoconferences
1 10 3
2 35 12
3 80 27
4 135 45
5 195 65

-41-
These values were derived from a theoretical model developed in-house by a CNET  
department responsible for modelling and remote communications studies. As this  
model has not yet been validated, the videoconference still has very few  
commercial applications and the values given in the above table must therefore be  
considered as no more than approximate.
It is clear,however, that with an equal level of use a rapid availability system  
needs more links than a system in which advance reservation is necessary; this is  
only logical as the service offered is better.
6
5
4
3
2
1Number of links required for rapid availability
•With reservation
1 0 20 3 0 4 0 5 0 6 0 7 0
Level of use
(number of conferences per month)
These results are used in the following two sections to evaluate the additional  
cost resulting from rapid availability.

-42-
3.3,2 Satellite links
Table 1.2.1 shows that only the use of permanent satellite circuits  
with permanent terrestrial connections and the use of Telecom 1 in  
call-by-call mode can give anything like a rapid availability  
service.
a. Permanent satellite circuits and terrestrial connections
On the basis of the monthly charge of 73 000 ECU for a bilateral  
satellite circuit of 2 Mb/s used fulltime, the dimensioning  
hypothesis in 3,3.1 and an overall cost of terrestrial connections  
equivalent to 40% of the cost of the sapce segment, the monthly  
costs for the use of the network depending on the level of use,  
excluding ground segment procurement, can be obtained.
Monthly level
_____of use______
Ba
sic number Total number  
of conf. of conf. in  
the EECMonthly cost  
of space  
segmentTotal Average
monthly cost per
cost hour of
conferenceAverage cost  
of one hour  
conference  
with advance  
reservation
5 34 292 000 409 000 4 000 E 1 130 E  
15 102 511 000 715 000 2 300 E 1 130 E  
30 204 876 000 1 226 000 2 000 E 1 130 E
There are two reasons for the additional cost of the rapid  
availability systems
the use of equipment permanently dedicated to an application is  
always more costly, especially when the level of use is low?
to provide a satisfactory quality of service, adequate dimensioning  
of the facilities used is necessary (see 3.3.1).

-43-
b. Use of Telecom 1 in call-by-call mode
Greece is not in the area covered by Telecan 1. In call-by-call mode  
the use of a 2 Mb/s circuit in bilateral mode costs 864 ECU per  
hour. To this must be added 326 ECU to allow for terrestrial  
connections to the ground segment equipment, giving a cost 3 600 ECU  
per three-hour videoconference, excluding ground segment  
procurement.
3.3.3 Terrestrial links
In this case it is necessary to estimate both the cost of the  
equipment to be set up for demand automation and circuit switching  
the monthly cost of the network depending on level of use on the  
basis of the dimensioning hypotheses in 3.3.1.
a. Cost of the equipment to be set up
The equipment is as follows:
— the central system consisting of two efficient microcomputers,  
one serving asd back-up: 60 000 ECU
1 console per studio for reservation purposes, at a cost of 2  
000 ECU each; with an average of 2 to 3 studios per city, this  
gives 30 consoles at a cost of 60 000 ECU
equipment to initiate circuit switching at each network node  
(Lond, Paris, Brusesls, Bonn) at 20 000 ECU each: 80 000 ECU.
To this must be added the cost of developing this specific circuit  
control equipment and the software managing reservations and  
activating the equipment. Thus the initial cost of the system to be  
set up is 400 000 ECU.

-44-
b. Monthly cost of a terrestrial network* with rapid availability. The  
table below gives the cost of a one-hour conference for a rapid  
availability system and for a system requiring advance reservation  
of a few days, depending on the level of use.
Level of use in terms Cost of a one-hour videoconference
of basic number of
conferences Rapid availability Advance reservation
5 5 700 ECU 2 600 ECU  
15 3 300 ECU 1 300 ECU  
30 2 300 ECU 1 100 ECU
* With the exception of Athens because of the prohibitive cost of the Paris-Athens  
link.

-45-
3.3.4. Qualitative and quantitative comparison of solutions permitting
rapid set-up of conferences
The following table summarizes the solutions studied above:
Solution Additional
investmentMean hourly  
conference  
costAvailability Notes
100% satellite system, 2 million  
permanent satellite ECU in 1986,
and terrestrial O in 1988
circuits2 000- 
4 000 ECU  
depending on  
level of useshort term switching
not
extremely
rapid
100% satellite system 4 million 1200 ECU medium term Greece not
using call-by-call ECU in 1986 covered
service (Telecom 1) 3 million
ECU in 1988
Broadband switch 400 000 ECU 2 300 to short term
network using 2 5 700 ECU
Mb/s terrestrial links depending on
level of use
Broadband ISDN Not yet known Not yet known, long term  
probably low

—45 b is-
Solution initially  
adopted
Level of use  
in basic  
conferences  
per month100% satellite  
system with  
permanent satellite  
and terrestrial  
circuitsBroadband switched  
network consisting of  
2 Mb/s terrestrial  
links
5 28 months 13 months  
15 19 months 9 months  
30 13 months 9 months
Pay-back period for Telecan 1 ground equipment in the case of a rapid availability  
service depending on level of use and in comparison to another solution.

-46-
3.4 Charges and tariffs
It was not the tasl of the team that carried out this study to  
decide what charges and tariffs would be applicable to users of the  
European videocommunications network. However, sane data that could  
be useful in producing an adequate tariff system can be given.
3.4.1. International component of charges for transmission between
capitals
The charge for a videoconference between two cities should be  
independent of the facilities used: satellite links, terrestrial  
links.
3.4.2. Network in each capital
The national parts of this network in each capital may vary  
considerably from one country to another, depending on whether one  
videophone or several videoconference studios have to be connected,  
whether they are based on national switched networks dedicated to  
this European project. All these factors will probably have to be  
taken into account in charging for the services supplied.
Tables 3.3.1, 3.3.2 and 3.3.3 give orders of magnitude for the cost  
of equipment, the configurations of three categories of  
videoconference studios and estimates of their cost.

Terminal equipment
Videoconference studios, cameras,  
monitor, furniture25 000 to 125 000 ECU
(see tables 3.3.2 anbd 3.3.3)
Multipurpose videophones
videophone service, access to videotex,
access to animated image banks)7 000 ECU
Facsimile machine Group 3  
Group 46 000 ECU  
35 000 ECU
Image servers 70 000 to 140 000 ECU
Network equipment
Automatic switching system (ECB) 1 500 ECU per channel
Codec 35 000 to 70 000 ECU
Multiconference unit 15 000 ECU
Ground stations
T1 (up to 3 videoconference channels)  
ECS - for 1 videoconference channel  
- per additional channel600 000 to 700 000 ECU  
500 000 to 600 000 ECU  
50 000 ECU
Analogue modems 2 Mbit 30 000 ECU
Table 3.3.1: Approximate cost of equipment

-48-
TYPE 1 MINIMUM CONFIGURATION
1 single high quality cartiera  
1 large-dimension receive monitor  
1 monitor for document reception  
simplified sound equipment  
ordinary conference room furniture  
no special lighting or room treatment
TYPE 2 STANDARD CONFIGURATION
3 cameras for speakers + 1 document camera  
2 large dimension receive monitors
special videoconference furniture with associated microphones
video and sound controls
lighting by special neon and spot lights
accoustic treatment and air conditioning
TYPE 3 ADVANCED CONFIGURATION
IN ADDITION TO THE ABOVE
2 videoprojectors for image reception of participants or documents  
1 blackboard camera  
1 rapid facsimile machine  
more elaborate lighting system
Table 3.3.2: Videoconference studio configurations.

-49-
TYPE 1 TYPE 2 TYPE 3
VIDEO AND SOUND 16 000 35 000 67 000
LIGHTING 3 000 4 500
ACOUSTIC TREATMENT 3 000 4 500
AIR CONDITIONING 15 000 15 000
FURNITURE 7 000 7 000 30 000
TRANSMISSION (1 500) (3 500) (3 500)
TOTAL (Ecus) 24 500 66 500 124 500
These prices apply to existing suitably equipped studios (electricity, floor and  
wall coverings, etc.)
In all cases they are colour studios, image coding being excluded.
Table 3.3.3: cost estimates for videoconference studios.

-50-
4. CONCLUSION
As far as the technical feasibility of the project is concerned, it can  
be concluded that:
It will be possible as of 1986 to link all the countries of the 
Community by a broadband network made up of terrestrial or satellite  
links at 2 Mb/s depending on the equipment available in each  
country. Fran 1988 it will be possible for all countries to choose -  
on either technical or economic criteria - between the use of  
terrestrial and satellite links.
However, this initial solution has to operate on the basis of prior  
(up to two days) reservation for a videoconference. For a rapid  
availability service - link between two studios established in less  
than 15 minutes - only four solutions appear satisfactory:
. full-time lease of terrestrial or satellite (on ECS 1 or Telecan 1)  
circuits;
. use of the call-by-call mode that Telecom 1 will eventually offer,
. the build-up, on the basis of permanently leased terrestrial links  
at 2 Mb/s and with dedicated equipment, of an intergovernmental  
switchboard broadband network,
. the use of a broadband integrated services digital network (ISDN)  
which will only be available in the long term.
The opening of a multilateral videoconference service, which is  
governed by the availability of special "multiconference" switching  
equipment, should be possible from 1986: multi-conference units will  
be available at the end of 1985.

The results of the economic study, set out below, are of course heavily  
dependant on the hypotheses concerning tariffs (see section 2 and in  
particular 2.3):
For a service with advance reservation, it is clear that for low  
utilization satellite links are most economic. With increasing use  
terrestrial links become more advantageous for short distances,  
while for longer distances satellite systems remain the most  
attractive. Since in the initial development phase utilization may  
be expected to be comparatively low, the following optins may be  
recommended:
in 1986, scenario 1: network composed of satellite links wherever  
ground segment equipment is available,
in 1987, scenario 4: network composed of satellite links wherever  
ground segment equipment is available,
in 1988, scenario 7 (all satellite network) or scenario 8 (a core of  
terrestrial links with satellite links fro more distant capitals:  
Dublin, Copenhagen, Rome and Athens) if the use of the system  
increases.
For the initial phase, which should consist of using satellite links  
wherever ground segment equipment is available, the pay-back period  
for such equipment is generally fairly short, especially if the  
equipment is used for services other than videoconferencing and by  
networks other than the European intergovernmental  
videocommunications network.
Should a rapid availability service be set up, until such time as  
the European broadband ISDN is operational only the call-by-call  
mode on Telecom 1 would give reasonable user costs. An  
intergovernmental switched network consisting of terrestrial links  
would be available at an earlier date, the initial investment would  
be low but the average hourly cost of a videoconference would be  
very high, especially with a low level of use.

As far as charges and tariffs for the use of the European  
intergovernmental videocommunications network are concerned, a  
distinction has to be drawn between the national and international  
parts:
at international level the hourly cost for use of the network, with  
a system requiring prior reservation, will be of the order of 1  100  
,  ECU (up to 2 000 ECU at the outset in 1986 with a very low level of  
use). For rapid availability, the cost would rise to 1 200 ECU using  
Telecom 1 or, according to use, between 2 000 and 6 000 ECU for a  
system using permanent terrestrial links or satellite links with  
-permanent terrestrial connections. These costs must be viewed with 
caution in view of the hypotheses made on tariffs.
However, two factors indicate that utilization costs might be lower:
the importance of the studies on the coding of animated images which  
should lead to throughputs two to four times lower with an equal  
quality and hence an equivalent reduction in transmission costs.
in view of the scope of the project, lower grouped costs could be  
negotiated.
For the national sections, the charges will depend on the  
infrastructure set up by each country. The equipment installed could  
range from an ordinary videophone to several videoconference  
studios.