COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 06.07.1995 
COM(95) 319 final - COD 476 
OPINION OF THE COMMISSION 
pursuant to Article 189 b (2) (d) of the EC Treaty, 
on the European Parliament's amendments 
to the Council's common position regarding the 
proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on the use of standards for the transmission 
of television signals 
(including repeal of Directive 92/38/EEC) 
AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 189 a (2) of the EC Treaty 

EXPLANATORY MEMORANDUM 
The proposed Directive of the European Parliament and Council comes under the 
co-decision procedure (Article 189b of the EC Treaty). 
Article 189b. 2(d) requires the Commission to express its Opinion on the 
amendments proposed by the European Parliament in its second reading. 
The Commission hereby presents its opinion on the six amendments proposed by the 
European Parliament. In accordance with Article 189a (second paragraph) the 
Commission also presents a modified proposal incorporating the amendments which 
the Commission has accepted 
1. BACKGROUND 
On 16 November 1993 the Commission presented to the European Parliament and to 
the Council a proposal1 for a Directive of the European Parliament and of the 
Council on the use of standards for the transmission of television signals based on 
Articles 57(2), 66 and 100a of the Treaty. 
The European Parliament delivered a favourable opinion in a first reading on 19 April 
19942. 
The Economic and Social Committee gave a favourable opinion on this proposal on 
23 March 19943 . 
On 25 October 1994 the Commission presented to the Council a Modified Proposal 
incorporating those European Parliament amendments4 accepted by the Commission. 
On 22 December 1994 the Council, acting in accordance with Article 189b of the 
Treaty adopted a Common Position on the Proposed Directive5. 
The European Parliament voted on the second reading on 13 June 1995, adopting a 
favourable resolution which included six amendments to the Common Position. 
2- PURPOSE OF THE DIRECTIVE 
The proposal for a Directive on the use of standards for the transmission of television 
signals has the objectives of: 
- creating a regulatory environment of standards for the transmission of advanced 
television broadcast signals; 
- facilitating the connection of peripherals to television sets in a harmonized manner 
throughout the Union; 
1 OJNo C 341, 18.12.1993, p. 18. 
2 OJNoC128, 9.5.1994, p. 54 
3 OJNo C148, 30.5.1994, p. 1 
4 COM (94) 455 FINAL - COD 476 
5 ECO 276, CODEC 80, 22.12.1994 
- creating a common framework throughout the Union for conditional access to 
digital Pay-TV services; 
- promoting the transmission of wide screen television services on cable television 
networks. 
3. POSITION OF THE COMMISSION ON THE EP AMENDMENTS 
In considering the amendments proposed by the European Parliament on second 
reading, the Commission can accept those which: 
i) are consistent with the Commission's initial proposal, and/or 
ii) are consistent with the Commission's position on the first reading of the 
European Parliament, and/or 
iii) clarify the text in a useful way. 
3.1 Amendments accepted by the Commission 
The European Parliament proposes six amendments following intensive consultation 
with the involved market parties. Since these amendments achieved a large majority 
in the Parliament and since they are consistent with the Commission's intentions 
expressed in its previous amended proposal, the Commission can accept all six 
amendments. The rational for this position is set out in detail below. 
3.1.1 The Commission can accept the value of affirming the importance of 
encouraging entrepreneurs to invest in conditional access services provision 
and can accept that such an idea is expressed in a recital as part of amendment 
5. 
3.1.2 The Commission agrees that reference to the threat of piracy and the necessity 
for appropriate anti-piracy legislation is appropriate and therefore accepts 
amendment 1 (a new recital). 
3.1.3 The Commission agrees that it is helpful to refer to the general principle of 
open access to networks and therefore accepts amendment 2 (a new recital). 
3.1.4 The Commission accepts that the facilitation of wide-screen television services 
on digital networks in a manner compatible with market and consumer 
interests is a desirable objective and therefore accepts amendment 3 (new text 
on Article 1) on the understanding that it is not intended to place Member 
States under binding obligations. 
3.1.5 The Commission can accept the definition of a wide-screen television service 
and the identification of the 16:9 aspect ratio as the standard in this 
connection. It also supports the concept of digital networks being capable of 
distributing wide-screen television services. It can therefore accept 
amendment 4 (new text in Article 2). 
3.1.6 In amendment 5 the European parliament adds new elements to Article 4 of 
the Common Position dealing with conditional access to digital television. 
These new elements, which result from consultation between the Parliament 
and the market parties, include: 
- the inclusion of provisions relating to television signals transmitted 'in the 
clear* i.e. unscrambled; 
- the requirement that commercial relations between conditional access 
service providers and broadcasters be conducted on fair, reasonable and 
non-discriminatory terms; 
- the requirement that separate accounts are kept for conditional access 
businesses; 
- the requirement that providers of digital television services publish a list of 
tariffs and ; 
- the availability in Member States of appropriate dispute resolution 
procedures. 
The Parliament made editorial changes to clarify the previous text in some 
instances. 
The Commission can accept this amendment as it adds new consensus 
elements of fairness, transparency and dispute resolution to the previous 
industry consensus on conditional access. 
3.1.7 The Commission can accept amendment 6 which makes drafting changes to 
the text of Article 6 of the Common Position as these changes add useful 
clarification. 
4. CONCLUSION 
4.1 In accordance of Article 189b, paragraph 2 of the EC Treaty, the Commission hereby 
gives its Opinion on the amendments adopted by the European Parliament on second 
reading. The Commission accepts all six amendments proposed by the Parliament as 
they are fully compatible with the goals of this Directive. The modified proposal 
(annex) incorporates these amendments. In accordance with Article 189a (second 
paragraph) the Commission hereby modifies its proposal. 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on the use of standards for the transmission 
of television signals 
(presented by the Commission in accordance with Article 189a, second paragraph, of 
the EC Treaty) 
EXPLANATORY MEMORANDUM 
The proposed Directive of the European Parliament and Council comes under the 
co-decision procedure (Article 189b of the EC Treaty). 
Article 189b. 2(d) requires the Commission to express its Opinion on the 
amendments proposed by the European Parliament in its second reading. 
The Commission hereby presents its opinion on the six amendments proposed by the 
European Parliament. In accordance with Article 189a (second paragraph) the 
Commission also presents a modified proposal incorporating the amendments which 
the Commission has accepted 
Common Position of the Council Amended Text 
Recital 15a (new) 
Whereas the operators of conditional 
access services should be entitled to earn a 
return on their investments and for the 
provision of services to broadcasters as an 
incentive to continue to invest: 
Recital 17a (new) 
Whereas in the European audiovisual 
digital environment, the scope for piracy 
will increase, with negative consequences 
for operators and programme providers, 
and whereas the introduction and 
enforcement of efficient anti-piracv 
legislation at the European level will 
become increasingly necessary. 
Recital 19a (new) 
Whereas the Presidencv's conclusions at 
the G7 Conference on the Information 
Society held in Brussels on 25-26 
February 1995 highlighted the need for a 
regulatory framework ensuring open 
access networks and respect for 
competition rules: 
Article 1, second paragraph (new) 
Member States shall facilitate the transfer 
of wide-screen television services already 
in operation to digital transmission 
networks open to the public, in particular 
pursuant to Directive 92/38/EEC and 
Decision 93/424/EEC. in order to protect 
the interests of operators and television 
viewers who have invested to produce or 
receive such services. 
Article 2 
All television services transmitted to All television services transmitted to 
viewers in the Community whether by viewers in the Community whether by 
cable, satellite or terrestrial means shall: cable, satellite or terrestrial means shall: 
(a) if they are in wide-screen format and (a) if they are in wide-screen format and 
625 lines, and are not fully digital, 
use the 16:9 D2-MAC transmission 
system, or a 16:9 transmission system 
which is fully compatible with Pal OR 
Secam: 
(b) if they are in high 
definition, and are not fully digital, 
use the HD-MAC transmission 
system; (b) 625 lines, and are not fully digital, 
use the 16:9 D2-MAC transmission 
system, or a 16:9 transmission system 
which is fully compatible with Pal OR 
Secam; 
a wide-screen television service 
consists of programmes produced 
and edited to be displayed on a wide-
screen format: 
the 16:9 format is the reference 
format for wide-format television 
services: 
if they are in high definition, and are 
not fully digital, use the HD-MAC 
transmission system; 
(c) if they are fully digital, use a 
transmission system which has been 
standardized by a recognized 
European standardization body. In 
this context, a transmission system 
comprises the following elements: 
formation of programme signals 
(source coding of audio signals, 
source coding of video signals, 
multiplexing of signals) and 
adaptation for transmission media 
(channel coding, modulation and, if 
appropriate, energy dispersal). (c) if they are fully digital, use a 
transmission system which has been 
standardized by a recognized 
European standardization body. In 
this context, a transmission system 
comprises the following elements: 
formation of programme signals 
(source coding of audio signals, 
source coding of video signals, 
multiplexing of signals) and 
adaptation for transmission media 
(channel coding, modulation and, if 
appropriate, energy dispersal); 
fully digital transmission networks 
open to the public for the distribution 
of television services must be capable 
of distributing wide-screen format 
services. 
Common Position of the Council Amended Text 
Article 4 
In relation to conditional access to digital 
Pay-TV services broadcast to viewers in 
the Community the following conditions 
shall apply: 
(a) all consumer equipment, for sale or 
rent or otherwise made available in 
the community, capable of 
descrambling digital television 
signals, shall possess capability to 
allow the descrambling of such 
signals according to the common 
European scrambling algorithm as 
administered by a recognized 
European standardization body; 
(b) conditional access systems 
operated on the market in the Community 
shall have the necessary technical 
capability for cost effective transcontrol at 
cable head-ends allowing the possibility 
for full control by cable television 
operators at local or regional level of the 
services using such conditional access 
systems; In relation to conditional access to digital 
television services broadcast to viewers in 
the Community, irrespective of the means 
of transmission, the following conditions 
shall apply: 
(a) all consumer equipment, for sale or 
rent or otherwise made available in the 
Community, capable of descrambling 
digital television signals, shall possess the 
capability: 
to allow the descrambling of such 
signals according to the common 
European scrambling algorithm 
administered by a recognized European 
standardization body; 
to display signals that have been 
transmitted in clear provided that, in the 
event that such equipment is rented, the 
rentee is in compliance with the relevant 
rental agreement: 
(b) conditional access systems operated 
on the market in the Community shall have 
the necessary technical capability for cost 
effective transcontrol at cable head-ends 
allowing the possibility for full control by 
cable television operators at local or 
regional level of the services using such 
conditional access systems; 
Common Position of the Council Amended Text 
Article 4 (contd.) 
(ba) Member States shall take all the 
necessary measures to ensure that the 
operators of conditional access services, 
irrespective of the means of transmission, 
who produce and market access services 
to digital television services: 
- offer to all broadcasters, on a fair, 
reasonable and non-discriminatorv basis, 
technical services enabling the 
broadcasters' digitally-transmitted services 
to be received by viewers authorized bv 
means of decoders administered by the 
service operators, and comply with 
Community competition law, in particular 
if a dominant position appears: 
keep separate financial accounts 
regarding their activity as conditional 
access providers: 
Broadcasters shall publish a list of tariffs 
for the viewer which takes into account 
whether associated equipment is supplied 
or not: 
A digital television service may only take 
advantage of these provisions if the 
services offered comply with the European 
legislation in force: 
10 
Common Position of the Council Amended Text 
(c) in connection with the inclusion by 
manufacturers of conditional access 
systems in consumer equipment: 
- where conditional access systems 
are licensed to manufacturers, this 
shall be done on fair, reasonable 
and non-discriminatory terms; 
- licensing or other provision of 
conditional access systems to 
manufacturers shall be done in 
such a way as not to prevent the 
inclusion of either another 
conditional access system or a 
common interface, provided that 
relevant security conditions 
relating to the conditional access 
system are met. (c) when granting licences to 
manufacturers of consumer equipment, 
holders of industrial property rights to 
conditional access products and systems 
shall ensure that this is done on fair, 
reasonable and non-discriminatory terms. 
Taking into account technical and 
commercial factors, holders of rights shall 
not subject the granting of licences to 
conditions prohibiting, deterring or 
discouraging the inclusion in the same 
product of 
- a common interface allowing connection 
with several other access systems: or 
- means specific to another access system, 
provided that the licensee complies with 
the relevant and reasonable conditions 
regarding the security of transactions of 
conditional access system operators: 
Where television sets contain an integrated 
digital decoder such sets should allow for 
the option of fitting at least one 
standardized socket permitting connection 
of conditional access and other elements 
of a digital television system to the digital 
decoder. 
(ca) without prejudice to any action that 
the Commission or any member State may 
take pursuant to the Treaty. Member 
States shall ensure that any party having 
an unresolved dispute concerning the 
application of the provisions under rules 
established in this Article shall have easy 
and, in principle inexpensive, access to 
appropriate dispute resolution procedures 
with the objective of resolving such 
disputes in a fair, timely and transparent 
manner. 
This procedure shall not preclude action 
for damages from either side. If the 
Commission is asked to give its opinion on 
the application of the Treaty, it shall do so 
as a matter of urgency. 
11 
Common Position of the Council Amended Text 
Article 6 
Before 1 July 1997 and every two years 
thereafter, the Commission shall review 
this Directive and submit a report to the 
European Parliament, to the Council and 
to the Economic and Social Committee on 
market and technological developments, in 
particular relating to developments in 
digital technology and also to market 
developments on conditional access to 
digital television services. If necessary, 
the Commission shall make proposals to 
the Council to adapt this Directive to these 
developments. Before 1 July 1997 and every two years 
thereafter, the Commission shall examine 
the implementation of this Directive and 
the development of the market for digital 
television services throughout the 
European Union and submit a report to 
the European Parliament, to the Council 
and to the Economic and Social 
Committee. This report shall cover 
market developments, in particular relating 
to developments in digital technology and 
services and also to technical and 
commercial market developments on 
conditional access to digital television 
services. If necessary the Commission 
shall make proposals to the Council to 
adapt this Directive to these 
developments. 
12 
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