A4-0328/98

Resolution on the communication from the Commission: Green Paper on the convergence of the telecommunications, media and information technology sectors, and the implications for regulation (COM(97)0623 - C4-0664/97)

The European Parliament,

- having regard to the Commission communication, COM(97)0623 - C4-0664/97,

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Research, Technological Development and Energy, the Committee on Legal Affairs and Citizens' Rights, the Committee on Employment and Social Affairs and the Committee on Culture, Youth, Education and the Media (A4-0328/98),

A. whereas the emergence of the information society challenges the traditional forms of organization of our societies and requires that adequate structures support the continued implementation of their goals, democratic values, cultures, and provide opportunities for employment, equality, better integration for disabled or older people, and wealth creation,

B. whereas the technological changes make it not only possible but also necessary in a society relying principally on the exchange of information through electronic networks to overcome the traditional specialization of the various networks and transport the various kinds of communication or information over several infrastructures,

C. whereas the phenomenon of convergence does not imply necessarily that the different sectors become one, but rather that new cross-sector activities and services with partial overlaps will co-exist provided the regulatory framework does not prevent these new ways to organize,

D. whereas technological developments present challenges to the application of the existing regulatory framework, and contradict the principles on which traditional regulation is based, namely the dual assumption of scarcity and specialization of network resources,

E. whereas the regulatory framework must be adapted according to a new paradigm of wide availability, interchangeability, multi-functionality and global reach of the networks, and to the corresponding needs for new economic strategies, company synergies and redefinition of the nature of the various sectors involved, taking into account the rapid pace of new developments and the need for a predictable, flexible and accommodating framework,

F. whereas, however, convergence must not be taken as a pretext for vertical integration or market control strategies; whereas the public institutions must ensure that such developments are not used to restrict the consumers' choices or the competitors' ability to obtain access to the markets,

G. whereas any one-sided attempt to control critical resources or services should be consistently opposed by the public institutions, the objective of creating a 'critical mass' of users for the development of new services not being an acceptable reason for such restrictive practices,

H. whereas open standards and platforms and generic or interoperable services, which are more efficient tools for achieving a significant user base, should be encouraged; whereas, in particular, much of the innovation in new services stems from SMEs, which need even more than the big players that the technical specifications used are openly available and that the cost of access to the market is not artificially inflated,

I. whereas there is no linear relationship between technological convergence and user behaviour, and it follows from this that the development of new services will, at least for the predictable time period for which it is possible to imagine the new regulatory needs, complement the traditional media and services rather than replace them, and whereas the transition will be a gradual one,

J. whereas it can therefore justifiably be assumed that for the foreseeable future traditional television will remain the most important medium and, in particular, the less-favoured members of the population will be more dependent on traditional media and services and for a longer time than the average citizen,

K. whereas it is the responsibility of the public institutions in a democratic society to ensure citizens access to, and general availability of, quality content and diverse information, whatever the infrastructure, through public and private broadcasting, as well as a wide variety of media services (including community media services), a universal service in telecommunications extended to cover Internet access and systematic publishing of public information free of charge on the Internet, and to foster the development of democracy through electronic means in such a way that new services are not a tool for manipulation and disinformation and that they meet the requirements of protecting privacy and security,

L. whereas an essential component of public service provision resides in community media services such as community radio, open TV channels and Internet-based community information networks, which are not operated with a view to private profit and are accountable to local communities or communities of interest, and which increase and improve citizens' and local communities' access to means of communication,

M. whereas the Commission has recognised that cultural products, in particular TV film programmes, cannot be dealt with in the same way as other products,

N. having regard to the case law of the Court of Justice which sees compelling reasons of public interest in the Member States' rules intended to guarantee cultural policy and pluralism of opinion which justify restrictions to the free movement of services,

O. whereas there is already an appropriate legal framework for the audiovisual sector at Community level, and whereas there is therefore no need to consider major new regulatory initiatives at this stage, but on the contrary the emphasis should be on the proper transposition and strict application of the directives so as to provide operators with the legal certainty and stability they need in order to develop,

P. whereas the global nature of developments require that any European regulation be formulated in a way that is compatible with the principle of subsidiarity and with the international commitments of the European Union, but also that this regulation can be proposed as a basis for international cooperation and for the foundation of an international legal framework,

Q. whereas, owing to the liberalisation of the market in telecommunications and the phenomenon of convergence, there is a growing need for harmonisation of national legislation between Member States, which may be achieved if the Commission encourages optimum coordination between the national regulatory bodies,

1. Welcomes the issuing of the Green Paper of the Commission, as a catalyst for the anticipated (and therefore timely, given the fast pace of developments) reflection on the future regulatory model for the converging sectors;

2. Recalls that the issue, before being a technical, legal or economic one, addresses the needs and concerns of citizens and consumers, whose interests in, inter alia, civil rights, employment, cultural diversity or consumer protection are not necessarily the same as those of merchants;

3. Considers it advisable that 'convergence' be defined precisely as the growing together or interchangeability of network platforms and technological transmission channels for electronic communication and the harmonisation of technological components of terminal equipment, and calls on the Commission to clarify the definitions applicable to phenomena associated with convergence, to adduce empirically proven facts in support of them, and to submit an analysis of the media equipment which households have and of media use, providing European and international comparisons;

4. Demands that an evaluation of the consequences of convergence for employment and the evolution of work forms be part of the process of preparing the introduction of any new regulation or the adaptation of the existing one;

5. Considers that the transport of information through the different networks is basically the same activity, which should therefore be regulated under a single framework, rather than having specific frameworks for the different networks, the only exception being those needed for the management of radio frequency spectrum, which should not be subject to auctioning, and other scarce resources;

6. Considers that adequate regulation, reflecting a balance in the law on the media, telecommunications and competition, will ensure security for investors and legal certainty on the basis of a consistent legal order;

7. Is of the opinion that mobile communications will play a major role in the future range of uses for telecommunications but also of all kinds of information society services and recommends that this aspect is specifically taken into account when preparing new regulations, so that mobile communications do not appear as an exception diverging from the horizontal framework to be put in place;

8. Takes the view that to facilitate the translation of technological convergence in information technologies into convergence products, special attention should be given to generic capabilities that pertain to the integration of separate technologies such as systems architecture, embedded software and user interfaces;

9. Takes the view that the convergence of the telecommunications, media and information technology sectors must be reflected in European rule-making in such a way that interoperability of various technologies is not hampered; straightforward and user-friendly interfaces must be developed, which calls for a strong commitment and support by the European Union for open standards and platforms, the development of generic services and interoperable applications, 'free software¨ endeavours and for economic cooperation and collaborative alliances based on such standards and endeavours;

10. Requests that the process for establishing technical standards be as fast as possible while basing on industry recommendations, as it is presently in the areas covered by ETSI, and that consumer representatives take an active part in it;

11. Calls for a strict implementation of European Community competition law, aimed at impeding the creation of bottlenecks which might restrict the consumers' choices and at avoiding that dominant players or first offerers or a given service limit the ability of all competitors to access markets;

12. Calls for the providers of conditional access and pay-TV services to be obliged to offer all technical and customer services (e.g. encryption, subscriber management, smart card distribution) separately where requested by the consumer or the programme provider, and for consumers not to be forced to subscribe to an unreasonably large number of pay-TV channels if they only want to watch a limited selection;

13. Considers that in the European democracies television as referred to in the Directive on Television without Frontiers will remain the principal medium of primary information provision and processing for the foreseeable future and that it is therefore of the first importance in helping people in our pluralist societies to arrive at opinions and decisions and in the functioning of democracy, the preservation of cultural diversity and conveying social values; considers that this applies irrespective of the type of financing (charges, advertising, subscriptions, pay per view) and the method of transmission;

14. Recommends that the effectiveness of the instruments of European Community competition policy for dealing with the convergence environment be thoroughly reassessed, so that any necessary changes could be suggested in due course and that the application of the European Union's legal instruments take account of the need to promote the creation of powerful European operators in each of the sectors in question;

15. Calls on the Commission, since the convergence problem raises once again the issue of concentration in the media sector, finally to submit a proposal for a Directive on the subject of media ownership and pluralism, taking account of all forms of electronic communication relevant to opinion formation and acknowledging that one of the key issues will be access to viewers and programme rights;

16. Calls for 'must carry' obligations to be instituted for network operators, under the terms of their licence, in respect of the programmes of public service programme providers, which should also apply to digital broadcasting (digital networks and terminal equipment/decoder boxes) and to user guide systems;

17. Considers it necessary to broaden the ONP-type open provision rules whenever there is a risk that bottlenecks will hamper the proper application of competition law, and recommends, to this end, that the Commission contemplate applying it to network interconnection in the audiovisual sector, service interoperability, conditional access and decoders, subscription management and network navigation systems;

18. Calls on the Commission to draw up a draft directive to close the remaining loopholes, notably in the protection accorded by consumer law to consumers of goods or services offered via new technologies but calls for a cautious attitude towards regulating new services: regulation should only be introduced where and when it proves necessary for the safeguard of the interests of consumers and the general public, according to principles announced in advance, basing on actual consumer and industry behaviour, and if self-regulation by the industry based on these principles appears not to be efficient enough;

19. Considers:

- that, despite convergence of transmission platforms, distinct political goals will continue to exist, for which there must be an appropriate regulatory level or authority; that what is needed is not a general levelling off but greater differentiation, and not amalgamation but better coordination of regulatory authorities,

- that sector-specific political objectives will continue to exist, which cannot be attained purely by applying European competition law, as the latter is designed to correct cartels and abuses of dominant positions retrospectively and case by case,

- that in the future too it will remain worthwhile and appropriate to separate regulation of the electronic communications infrastructure from regulation of the content conveyed, and that the same should apply in international agreements,

- that even with technological convergence, there must still be a clear relationship between ends and means, so that the disappearance of the shortage of frequencies will not render obsolete the pursuit of such political goals as pluralism, protection of minors, promotion of cultural diversity and the production and distribution of high-quality programmes;

20. Notes that Article 128 of the EC Treaty (now Article 151 of the Amsterdam Treaty) lays down that the Community¨s contribution to the flowering of the cultures of the Member States shall respect their national and regional diversity and sees the Community's action - including in the audiovisual field - as being designed to encourage, support and 'if necessary' supplement their action, and that paragraph 4 of the same Article requires action under the provisions of the Treaty to take cultural aspects into account;

21. Calls on the Commission to make proposals for definitions of regulated activities and services which are as clear as possible, so as, inter alia, to rule out diverging definitions in national provisions transposing Community Directives;

22. Given that consultations on the Green Paper have emphasised, according to the Commission's working document, that the demand for quality content will continue to rise, calls on the Commission to propose, in the context of the forthcoming Action Plan, the reinforcement of the MEDIA II programme, particularly in the light of the conclusions of the Birmingham Conference;

23. Considers that content regulation should be compatible with the principle of subsidiarity and with the international commitments of the European Union and should be graduated according to the needs and objectives of public policy and to the audience covered, taking into account in particular the requirements concerning the pluralism in public opinion formation and calls on the Member States to make sure that the preferential treatment accorded to public service broadcasting, pursuant to Protocol No. 9 annexed to the Treaty of Amsterdam on the system of public broadcasting in the Member States, is at all times subject to particularly demanding conditions with regard to programme content and quality and notes that convergence changes the environments in which TV and radio operate, thereby simplifying production and creating opportunities for a broader output; notes, however, that countries should be able to finance and support programmes made with public service in mind;

24. Considers that there is a need for better coordination among the relevant regulatory bodies responsible for this sector;

25. Considers that there will continue to be sector-specific objectives, not all of which can be achieved by the application of European competition law;

26. Considers that the development of electronic shopping will have a powerful influence on the extent and development of convergence;

27. Considers that the European regulators must be aware of the various regulatory traditions of our trading partners, particularly the USA, to prevent the emergence of competitive disadvantages for European businesses in comparable sectors;

28. Considers that the review, scheduled for 1999, provided for in the ONP directives ((Directive 98/10/EC of the European Parliament and of the Council of 26 February 1998 on the application of open network provision (ONP) to voice telephony and on universal service for telecommunications in a competitive environment - OJ L 101, 1.4.1998, p. 24.

Directive 97/33/EC of the European Parliament and of the Council of 30 June 1997 on interconnection in Telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP) - OJ L 199, 26.7.1997, p. 32.

Directive 95/62/EC of the European Parliament and of the Council of 13 December 1995 on the application of open network provision (ONP) to voice telephony - OJ L 321, 30.12.1995, p. 6.

Council Directive 92/44/EEC of 5 June 1992 on the application of open network provision to leased lines - OJ L 165, 19.6.1992, p. 27.

Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision - OJ L 192, 24.7.1990, p. 1.)), of the implementation of the directives' specifications, should contain a summary and a recommendation as to whether the existing sector-specific regulations should in future either remain sector-specific or become supra-sectoral;

29. Instructs its President to forward this resolution to the Council, Commission, CEN, CENELEC, ETSI and the parliaments of the Member States.