if' ^feCgfr-COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 543 final 
Brussels, 15 November 1993 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL. THE EUROPEAN PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE 
Developing universal service for telecommunications in a competitive environment 
wm Proposal for a 
COUNCIL RESOLUTION 
on universal service principles in the telecommunications sector 
(presented by the Commission) 
TABLE OF CONTENTS 
— Communication from the Commission 
Introduction 3 
The concept of universal service 4 
The need for universal service principles 5 
Main elements of universal service 7 
Financing universal service 8 
The framework for adjustment 10 
Conclusions 11 
PROPOSAL FOR A COUNCIL RESOLUTION ON UNIVERSAL SERVICE 
PRINCIPLES IN THE FIELD OF TELECOMMUNICATIONS 
\ 
4 
S INTRODUCTION 
On 28 April 1993 the Commission adopted a Communication to the Council and the 
liuropcan Parliament on the consultation on the review of the situation in the 
telecommunications services sector1. This Communication presented the outcome of the 
wide-ranging public consultation launched by the Commission as part of the 1992 
Telecommunications Review2. 
In the context of the Review the Commission had organised public hearings for the 
Telecommunications Organisations (TOs), Users, Service Providers, Equipment 
Manufacturers and the Trade Unions. The Joint Telecommunications Committee also gave 
its opinion on the Review3. More than 130 organisations and associations participated in the 
hearings and the Commission received more than 80 written contributions on the Review. 
The Commission worked closely with the High Level Committee of National Regulatory 
Authorities established by the Council of Ministers in its Resolution of 17 December 19924. 
A key theme in the consultation and in the Commission's subsequent Communication was the 
priority attached to the maintenance and further development of universal service throughout 
the Community, as a cornerstone of a more liberalised environment. 
On 22 July 1993 the Council adopted Resolution 93/C2I3/0P which confirmed the results of 
the consultation and the conclusions of the Commission's Communication. 
Communication to the Council am) the I'uropean I'ailiamcnl on tlu- consultation on tlu" review of tlu- situation in the telecommunications services sector, 
COM(9"*)l W. 2« April IW1 
Communication of the Commission to the Com in I ami the I-.UM>|H-.HI l'ai I lament on the .situation in the maikcl loi telecommunications scivices. 
SI*.C{«2)I'»4X, 21 October W2 
Opinion of the Joint Telecommunications Committee on the Commission Communication to the Council an J the 1'ioposal tor a Council Resolution on 
the Review of the Situation in the Télécommunications Sccloi. Id June l')'M 
Council Résolution 9VCX/0I ni* 17 I fcccmltei 1992 on the assessment ol the situation in the C.immunity Telecommunications Sector. ( )J C2. ». 1 '**t. 
Council Resolution 9.VC2I1/01 of 22 July on the Review o| the situation in the telecommunications secloi and the need tor furthei development in that 
market. OJ C2I VI. (. X'H 
THE CONCEPT OF UNIVERSAL SERVICE 
In the Communication of 28 April 1993, the political goal of universal service was identified 
as: 
"making available a defined minimum service of specified quality to all users at an 
affordable price". 
As was broadly recognised during Uic consultation on the Review, the main elements for a 
Community-wide definition of universal service principles6 have been developed within the 
framework of the Open Network Provision (ONP) Rules. 
ONP is concerned with ensuring both fair, non-discriminatory access to networks and 
services, as well as ensuring that a defined minimum set of telecommunications services is 
available on a Community-wide basis, in particular the basic voice telephony offering. 
ONP is not, however, exclusively focused on the provision of a basic service. ONP also 
requires the development of certain advanced services (such as direct dialling- in, call-
forwarding and Community-wide 'Green Numbers') and the non-mandatory application of 
ONP principles to certain services such as data communications and to ISDN (integrated 
services digital networks). 
The provision of such additional services, as well as the mandatory provision of a minimum 
set of leased line offerings, is a key element in reinforcing the international competitiveness of 
business in the Community, as well as promoting the development of new services, such as 
cross-border direct marketing and audiotex services and meeting market demands for 
innovation in service offerings. 
Such additional services are generally provided according to commercial criteria to meet 
demand from specific groups of customers, in contrast to the basic voice telephony offering 
which must be generally provided, on the basis of a uniform charge not directly linked in 
every case to the actual cost incurred, to all customers reasonably requesting it. 
Universal service obligations imposed by national legislation or authorisation regimes 
generally oblige market participants to provide a certain basic service to customers whom 
they may otherwise have insufficient economic incentive to serve. Such operators may in 
certain cases therefore be required to act differently to the way that normal commercial 
practice would dictate. The so-called 'economic cost' of universal service results from any 
6 These are set out in the annex to the attached proposal for a Council Resolution 
additional expense incurred in serving such customers, where the needs of those customers 
would not be met by market forces alone. 
THE NEED FOR UNIVERSAL SERVICE PRINCIPLES 
Within the Community all Member States place a variety of obligations on TOs and service 
providers which arc aimed at ensuring the provision of a minimum level of service in their 
territory. 
All Member States but one have in the past, in conformity with Commission Directive 
388/90/TvF,C ("the Services Directive"7), allowed monopoly rights over the establishment and 
operation of a network to be extended to the provision by the TOs of the basic voice telephony 
service. This situation has allowed the TOs to finance the provision of universal service out 
of internal revenue transfers, without it being necessary to define either the precise scope or 
cost of such universal service. 
As indicated above, action at a Community level has been confined to harmonisation within 
the ONP rules. 
These initiatives have now been given new impetus by the Telecommunications Council of 16 
June 1993, which has established the timetable for the future development of the 
telecommunications sector. 
In Council Resolution 93/C2I3/OI agreed at that meeting, and formally adopted on 22 July 
1993, the Council identified as one of the principal objectives of Community 
Telecommunications Policy, the liberalisation of all voice telephony services "whilst 
maintaining universal service". 
The Council set the overall date of I January 1998 for the full liberalisation of voice 
telephony services, with additional transition periods of up to five years for Member States 
with less developed networks (i.e. Spain, Ireland, Greece, and Portugal) and a possible period 
of up to two years for very small networks (i.e. Luxembourg). 
In a parallel development, the European Court of Justice has recently held that the 
maintenance of exclusive rights is only justified to the extent that the resulting restrictions on 
competition, or even the complete exclusion of competition, are necessary to ensure the 
Commis'tion I Jiici.livc 9ti/tKX/KI-'( " ol .'X June I'l'Xi, ,,„lii i tin- nuikcl loi tele, .minium, alu.iis -..-i vi.es. Ol I l'/.V|ll. 2-1 / '"' 
performance of a task of general economic interest which has been entrusted to the 
undertaking enjoying those exclusive rights*. 
It is clear that the creation of a fully competitive environment now makes it essential to 
provide for a common definition of universal service principles, as well as the mechanism to 
be put in place to ensure its continuation and development. Such a step, aimed in the first 
place at ensuring that liberalisation does not lead to a fall in the quality of services which 
users receive, is necessary for the following reasons: 
-> As long as telecommunications services were provided under direct State authority 
and as long as the TO, in dealing with users, benefited from certain legal 
immunities under national law, a definition in general terms, even though 
imprecise, of the notion of universal service could appear to have been sufficient. 
As the traditional operators become increasingly independent and once the market 
is opened on the basis of free competition to new operators, it is necessary to 
determine the principles according to which the cost of universal service 
obligations can be shared amongst market participants. A clearer definition of 
universal service principles is vital to this process. 
-> The introduction of competition is one of the preconditions to the creation of an 
open Community-wide market for telecommunications services The creation of 
an environment in which operators can compete on an equal basis presupposes a 
comparable level of universal service obligations throughout the Community. All 
the same, consistent with the principle of subsidiarity, this does not prejudge the 
possibility of Member States imposing complementary obligations on the basis of 
their specific national situations, as long as such obligations do not create barriers 
to market entry. 
Council Resolution 93/C2I3/0I recognised that "the application of ONP measures 
...constitutes the basis for the definition of universal service" and emphasised "the importance. 
for the individual consumer, and for the competitiveness of Community industry and 
commercial users, of a Community telecommunications system offering to all users, including 
specific social groups, reasonable and affordable charges for access and use. high qualitv oi' 
service and technological innovation". It also called for, "where necessary, the adaptation, in 
the light of further liberalisation, of ONP principles in respect of the entities covered and of 
such issues as universal service.." 
( a-..- Ct.'tl/'M. Cm l»;„i y. H.yu- tl,s /V;.\/e.v. Jinlf.cmci.l ..I |'( May f'M 
At this stage, the Commission docs not envisage further measures beyond those set out in 
Council Resolution 93/C213/01 in relation to the provision of universal service. 
It is, however, appropriate for the Commission to assist through this Communication in 
establishing a political consensus around certain universal service principles. These 
principles will provide guidance to the Member States in maintaining and developing 
universal service; firstly, by bringing together basic elements of universal service provision 
found in Community legislation and current proposals, and, secondly, by addressing the 
financing of universal service. In particular, it should assist them in carrying out at a national 
level the progressive rebalancing of tariffs called for in Council Resolution 93/C213/01. 
In the absence of such common principles, divergent national measures, (for example, in the 
form of divergent licence obligations or access charge regimes), taken to ensure the provision 
and financing of universal service would be likely to create real barriers to the provision of 
telecommunications services both nationally and on a pan-European basis, and distort 
competition between market participants. Additionally, there would be a real risk of 
consumers and other users of telecommunications services being unaware of the extent of 
universal service which they can expect under Community law. 
MAIN ELEMENTS OF UNIVERSAL SERVICE 
On the basis of ONP, the universal service concept includes: 
-> the basic provision of service; 
-> quality of service ; 
-> tariff principles i.e. cost-orientation of tariffs, combined with tariff flexibility 
(which allows, for example, specially targeted tariff schemes for low income 
groups) ; 
-> dispute resolution mechanisms ; 
-> special public service features (for example, operator assistance and emergency 
services) ; 
-> certain Community-wide service features. 
Universal service obligations must be developed in line with the basic principles of ONP. in 
particular the principles of transparency, non-discrimination and proportionality, as well as 
being fully compatible with Community law, in particular the competition rules. Such 
obligations must also promote social and economic cohesion of the Community. The balance 
between the definition of such obligations at a Community level and their practical application 
at a national level must be consistent with the principle of subsidiarity 
As a first step, the major elements of universal service in telecommunications whose provision 
each Member State must ensure, either through binding obligations or by the operation of 
market forces, have to be defined. 
In this respect, the Commission considers that the principles provided for in the context of 
ONP are sufficient at this stage to form the basis of universal service conditions, whilst being 
open to further evolution on the basis of technological and market developments, as well as in 
the light of practical experience. 
The first major objective of this Communication is therefoie to diaw togethei from the 
various ONP measures these elements, in order to present them as one coherent set, and thus 
facilitate their implementation. 
FINANCING UNIVERSAL SERVICE 
In developing universal service in the context of services liberalisation, a number of principles 
with regard to financing universal service must be agreed with both National Regulator) 
Authorities and operators on the basis of consultation. 
Initiating this process is the second major objective of this Communication. 
The introduction of liberalisation in the telecommunications sector will move tariff structures 
towards underlying costs. 
The maintenance and development of universal service must go hand in hand with this process 
of tariff adjustment. This requires re-examination of the current methods of financing 
universal service and, in particular, the establishment of clear guidelines to manage the 
transition from a monopoly to a competitive environment. 
A number of factors should, to the extent necessary, help to define this process : 
-> the identification of the cost of meeting universal service obligations in relation to 
those customers whose demand would not be fully met if normal commercial 
principles were followed ; 
-> the capacity should be retained, subject to compliance with Community law9, to 
finance those activities with an identifiable need - in particular in local access, (in 
those eases where deficit is unavoidable) - via transfers from more profitable long 
distance and international telephony ; 
-> the gradual rebalancing of tariff structures must be permitted so that direct 
subscriber revenue from connections and local calls makes a greater contribution 
to the cost of universal service, whilst bearing in mind the needs of more 
vulnerable or disadvantaged subscriber groups, (such as low income groups and 
handicapped users) ; 
-> new entrants should make an appropriate contribution to the provision of universal 
service and to the transfers required to finance the basic elements of universal 
service (in cases where deficit is unavoidable) via a system of access charges, 
provided such systems and any universal service obligations placed on such 
entrants are transparent, non-discriminatory and proportional and that they fully 
respect the Community's competition rules ; 
-> sufficient flexibility is maintained to take account of national situations, in line 
with the principle of subsidiarity whilst at the same time providing guidelines for 
convergence ; 
-> the requirement for social and economic cohesion is taken into account, as well as 
the maintenance of an adequate investment capability for rapid development in the 
peripheral regions with less developed networks. 
The interplay between tariff rebalancing, transfers from more profitable service areas and 
access charges will determine the speed with which Member States and operators can adjust 
in preparation for full liberalisation. 
At the same time, internal transfers and access charges cannot be seen as an alternative to 
tariff rebalancing, which remains a fundamental requirement within the time frame envisaged 
by Council Resolution 93/C2I3/1, nor should access charges be used as a means of 
controlling a competitor's cost structures. 
See Communication horn the Commission "Towauls cost oncntalnui and the a<l|uslmcnl ot piuitif siiu.iuics - I cle. ..milium, allons tant!-, in the 
Community" (SKC(<>;>)|(iSij, |S ?'>?). 
10 
Internal transfers and access charges must also be appropriately structured, so as to prevent 
their use to delay necessary improvements in cost efficiency or productivity gains by shifting 
the burden of inefficiency onto new market entrants 
In the case of the Community's peripheral regions with less developed networks, network 
investment required to maintain and develop universal service may also attract Community 
funding, alongside national financial resources, from the Community's support framework. 
In preparing for liberalisation account must be taken of the fact that tariff structures, tariff 
levels, cost structures, the scale of internal transfers and the level of network development all 
differ currently between Member States. 
In the limited period leading up to full liberalisation of voice telephony services, National 
Regulatory Authorities and national operators will rapidly have to establish and subsequently 
implement and monitor the necessary programmes for adjustment, in order to attain a new 
equilibrium with regard to financing universal service from direct subscriber revenues and 
from transfers 
In establishing such a balance. Menibei States should, where necessary, establish the 
principles and basis for determining a fair system of access charges. Such a system must 
build on the elements provided by ONP, be in line with a competitive market environment 
and be compatible with both the maintenance and further development of universal service. 
THE FRAMEWORK FOR ADJUSTMENT 
As the balance between revenues and costs will continue to vary in Member States, 
adjustment programmes - as called for in Council Resolution 93/C2 13/01 - will have to be 
worked out by the National Regulatory Authorities and the operators, building on agreed 
principles The attached proposal for a Council Resolution should establish the basis for this 
work and provide for a common framework. 
The main objectives of these adjustment programmes should be : 
-> the establishment of transparent accounting principles and cost allocation 
procedures for operators, in order to establish real costs of maintaining and 
developing universal service ; 
-> the development, on the basis of recognised common principles governing the 
future balance between direct subscriber revenue and revenue from transfers, of 
adjustment targets for tariff structures. 
-> in develo|)ing adjustment targets, tariffs must be based on the principle of cost 
orientation, whilst ensuring affordable and reasonable charges for all users anil 
promoting an open competitive environment. Such an environment to be founded 
on the principles of transparency, non-discrimination and proportionality ; 
-> on this basis, to determine access charges, according to common principles. 
The Commission will work closely with each Member State in assisting in the preparation and 
implementation of these adjustment programmes, as requested by Council Resolution 
93/C213/01, and in the establishment of common principles concerning accounting, cost 
allocation and transfers. As called for in that Council Resolution, special attention will be 
given to those Member States with less developed networks or very small networks in order to 
achieve such adjustments as soon as possible and in the best possible way. 
Finally, as called for in the Council Resolution 93/C213/01. the Commission will proceed in 
close consultation with the Hit»h Level Committee of National Regulators* Authorities 
CONCLUSIONS 
Council Resolution 93/C213/01 of 22 July 1993 on the Review of the situation in the 
telecommunications sector emphasises the need to maintain and expand universal service 
The Commission fully supports this goal as an essential condition for maximising the 
contribution of the telecommunications sector to overall economic growth, social well being 
and cohesion in the Community. It will pay the utmost attention to this objective in 
facilitating the adjustment of the sector to a competitive environment. 
The Member States have given in that Council Resolution an active commitment to 
progressive structural adjustment and to the continued development of universal service in the 
field of telecommunications 
Adjustment should be based on common principles governing the appropriate balance 
between direct revenue, transfers from profitable activities, and access charge systems, 
through svhich market participants can make a fair contribution to the transfers required to 
fund universal service. Such access charge systems should be based on the principles of 
transparency, non-discrimination and proportionality. 
The progressive adjustment of the télécommunications sector to a competitive environment 
will provide a unique opportunity for the further development of universal service and trans­
itu ropcan networks, if the appropriate regulatory environment can be established 
12 
The attached proposal for a Council Resolution drasvs together the basic principles of 
univcisal service in the Community. 
These principles provide a firm framework for the future evolution of universal service at 
both a Community and national level, as svell as providing an appropriate basis for the 
process of adjustment of tariffs 
The Commission transmits this Communication and proposal foi a Council Resolution to the 
Council, and to the European Parliament and the Economic and Social Committee. 
PROPOSAL FOR A COUNCIL RESOLUTION 
ON UNIVERSAL SERVICE PRINCIPLES IN THE TELECOMMUNICATIONS SECTOR 
II IE COUNCIL OF Tl IE EUROPEAN COMMUNITIES 
I laving regard to the Treaty establishing the European Economic Community. 
I laving regard to the proposal of the Commission. 
Whereas Council Resolution 93/C213/0110 on the review of the situation in the telecommunications 
sector and the need for further development in that market has established as a major goal for the 
Community's telecommunications policy the liberalisation of all public voice telephony services, 
whilst maintaining universal service. 
Whereas Council Resolution 93/C213/01 has established a firm time schedule for the transition to 
a liberalised environment and called for the initiation of necessary structural adjustments, in 
particular, of tariffs. 
Whereas the importance of universal service war, recognised in the Resolution of the European 
Parliament of 20 April 199311 and the Opinion of the Economic and Social Committee of... 1993 
on the 1992 Telecommunications Services Review. 
Whereas Council Resolution 93/C213/01 identified the application of universal service as a major 
goal. 
Council Resolution 9VC2I3/1 of 22 July 1991 on the Review of the situation in the telecommunications sector and the need for further development in 
that market, OJ C2H. 6 X 91 
Resolution ol the Kuropcan Parliament on the Commission Communication ol 21 st October |"W2 concerning the P'Ç Review of the situation in the 
telecommunications sciviccs sectoi (SKC(92)I04X) 20 April 19V? and Resolution of the Kuiopean I'ailiament on the Communication liom the 
Commission "Towards cost orientation and the adjustment of pricing structures - Telecommunications tarills in the Community" (SI-.< V92)l(>St>), 20 
April 1991 
nn 
Whereas this Resolution provides assistance in achieving this goal in a competitive environment, as 
well as to the progressive rebalancing of tariff structures, by identifying the major elements 
constituting universal service at a Community level and by providing guidance as to the principles 
to be applied to the financing of universal service. 
Whereas Council Resolution 93/C213/01 recognised as a key factor in the development of future 
regulatory policy the importance, for the individual consumer, for the competitiveness of 
Community and commercial users, of a Community telecommunications system offering to all 
users including specific social groups, reasonable and affordable charges for access and use, high 
quality of service arid technological innovation. 
Whereas Council Resolution 93/C213/01 recognised that the application of Open Netsvork 
Provision (ONP) measures constitutes the basis, at a Community level, for the definition of 
universal service and whereas ONP concerns both fair, non-discriminatory and open access to and 
use of public telecommunications networks and services, and also the provision of a defined 
minimum set of offerings to be made available on a Community-wide basis. 
Whereas the principles established by ONP concern both the provision of basic elements of 
universal service, as well as the provision of additional services and the mandatory provision of a 
minimum set of leased line offerings. 
Whereas in determining how best to ensure universal service offerings national regulatory 
authorities shall take full account of the fact that in most cases market forces would be expected to 
guarantee such offerings on a commercial basis without further intervention. 
Whereas in other cases this may result in obligations on market participants to provide a basic 
service to customers whom they would otherwise have insufficient economic incentive to serve. 
Whereas this concerns, in particular, the provision of a basic voice telephony offering at an 
affordable price to all customers reasonably requesting it. 
Whereas in this case market participants should make an appropriate contribution to the provision 
of universal service and share in the financial transfers where required. 
Whereas National Regulatory Authorities may impose, to the extent consistent with Community 
law, other obligations which may be required to adapt universal service to specific national 
situations, and in particular, planning policies aimed at ensuring cohesion within a Member State, 
provided such the fulfilment of such obligations is technically feasible at a reasonable cost. 
Whereas the development of Trans-European Networks and Services will contribute at a 
Community level towards universal service; Whereas the application of harmonised standards is 
essential for Community-wide interconncctivity and interoperability. 
Whereas the concept of universal service must evolve to keep pace with technological and market 
progress, in particular, in relation to digitisation and the trend towards broad band technologies. 
RECOGNISES 
a) the importance for the future development of telecommunications in the Community of the 
maintenance and further development of universal service, based on the objectives of 
universality, equality and continuity. 
b) that on the basis of these objectives the essence of universal service is access to and the 
provision of a defined minimum service of specified quality to all users at an affordable 
price, irrespective of their geographical location. 
c) that common principles for the provision of universal service are useful and necessary in 
order to achieve a balanced and fair regulatory environment throughout the Community, as 
ne 
well as being in the interests of consumers by establishing basic minimum service levels for 
both national and pan-European services. 
d) that common principles for the provision of universal service, have been defined in the 
Open Network Provision measures and that these can form the basis for the definition of 
universal service; that these elements should, where necessary, be further developed to take 
account of the future competitive environment and on the basis of practical experience. 
These agreed elements of universal service are set out in the Annex to this Resolution. 
e) that special and targeted provision for socially desirable purposes, such as low tariff 
schemes for low income groups and the handicapped should be possible. 
f) that in the implementation of these basic elements market participants must make a fair 
contribution to the burden of providing universal service and that due account must be 
taken of the principles of transparency, non-discrimination, and proportionality, as well as 
ensuring compliance with the competition rules. 
g) that in order to promote a Community-wide telecommunications systems, there is need for 
adequate interconnection of public nctsvorks . 
NOTES ' ^ 
a) that adequate financial provision is a key factor in the maintenance and further 
development of universal service principles. 
b) that Member States must take steps to ensure the establishment and maintenance of an 
adequate financial base for operators by allowing them pricing flexibility and encouraging 
tariff adjustment. 
c) that where the provision of certain elements of universal service at an affordable price can 
only be delivered at a loss, operators may, in certain circumstances, finance those services 
through internal transfers from revenue derived from other telecommunications services. 
d) that market participants should make an appropriate contribution to the provision of the 
basic elements of universal service and share in the financial transfers, where required and 
in cases where deficit is unavoidable, subject to the principles of transparency, non­
discrimination and proportionality; that such contributions may take the form of access 
charges, where justified and subject to Community law, in particular the competition rules. 
e) that in pursuing these objectives account is taken of the specific circumstances of the 
peripheral regions with less developed networks and of very small networks, and the role 
which the Community support framework may play in this process. 
f) that the concept of universal service must evolve to keep pace with advances in technology 
and changes in user demand, in particular, in the light of the development of Integrated 
Services Digital Networks and broad band technologies. 
WELCOMES THE INTENTION OF COMMISSION TO ° 
take full account of the requirement for universal service in preparing the future adjustment of the 
regulatory framework for the telecommunications sector, in particular in applying and adapting the 
Open Network Provision principles. 
CALLS UPON THE MEMBER STATES 
to establish and maintain an appropriate regulatory framework and set appropriate targets, 
according to the objectives and principles set out in this Resolution and in conformity with 
Community law, in particular with the competition rules, in order to ensure universal service 
throughout their territory 
INVITES THE COMMISSION 
a) to study and consult on the issues raised by universal service and its means of financing 
and, in particular, the appropriate balance to be achieved between direct revenue and 
internal transfers from other profitable telecommunications services. Specific account 
should be taken of the need for adjustment in peripheral regions with less developed 
networks ; 
b) to work closely with Member States in assisting the preparation and monitoring of national 
adjustment programmes, particularly with regard to tariffs, accounting principles, 
transfers, and to elaborate common access charge principles, in close consultation with the 
High Level Committee of National Regulatory Authorities ; 
c) to report to the Council and the European Parliament on this issue by 1 January 1996. 
1Z> 
PUBLIC SERVICE TARGETS 
("CAHIER DES CHARGES") 
FOR UNIVERSAL SERVICE OFFERINGS IN THE FIELD OF m 
TELECOMMUNICATIONS 
1. GENERAL OBJECTIVES 
Universal service means making available a defined minimum service of specified quality to 
all users at an affordable price. 
The fundamental objectives of a public service policy are: 
universality i.e. access for all at an affordable price 
equality i.e. access independent of geographical location 
continuity i.e. continuous provision, at a defined quality. 
2. SERVICE ELEMENTS 
According to 
Council Directive of 28 June 1990 on the establishment of die internal market for 
telecommunications services through the implementation of open network 
provision12. 
Council Directive of 5 June 1992 on the application of open network provision to 
leased lines13. 
Council Directive of |..] on the application of open network provision to voice 
telephony14 
12 Directive 90/387/EEC ; OJ L 192/1 
13 Directive 92/44/EEC ; OJ L 165/10 
14 OIL 
Vo 
Council Recommendation of 5 June 1992 on the harmonised provision of a minimum 
set of packet-switched data services (PSDS) in accordance with open network 
provision (ONP) principles'* ; 
Council Recommendation of 5 June 1992 on the provision of harmonised integrated 
services digital network (ISDN) access arrangements and a minimum set of ISDN 
offerings in accordance with open network provision (ONP) principles'6. 
the following provisions apply: 
2.1 Basic elements 
The setting of appropriate targets and their implementation are to be ensured through the 
National Regulatory Authorities for the following : 
• Provision of the basic public telecommunications network and voice telephony 
service 
i.e. the provision throughout the territory of the specified service(s). Target deliver) 
periods (waiting time for initial provision) and achieved deliver) periods should be 
published. 
Users should have a right of access to and use of the service Users should have a 
contract specifying the service to be provided. 
Withdrawal of a service offering should only be made with the agreement of the 
national regulatory authority and after public consultation. 
Quality of service 
the publication of quality targets for users and the monitoring and publication of 
quality levels achieved by service providers/network operators. 
|S 92/.W2/Iil•:< ' , OJ I. JIM)/1 
"' <>2/IX</I-:I-:C .oj i, 2IKI/IO 
?1 
Pricing Policy 
Alongside the principle of cost-orientation, there should be reasonable and affordable 
prices throughout the territory for initial connection, subscription, periodic rental, 
access and use of the service. 
There should also be tariff flexibility i.e. the possibility of special and targeted 
provision for socially desirable purposes (in particular, for low income groups and 
handicapped users). 
Tariffs should be sufficiently unbundled to ensure that u.sers are not required to pay 
for facilities which are not required for the service demanded. 
Publication of information about the service 
Adequate information should be made readily available to users concerning: supply 
and usage conditions, tariffs, technical characteristics, licensing, terminal attachment. 
Dispute resolution procedures for users 
Provision of accessible and in principle inexpensive procedures to resolve disputes 
between users and telecommunications organisations, through an independent body 
Subscriber directories 
Provision of up-to-date directories of subscribers to be made available to subscribers 
and other users. Subscribers should have the right to have or not to have an entry in 
public directories. Public directory information should be available on published 
terms. 
Operator assistance and directory enquiry services ^ Zs 
Operator assistance and directory enquiry services provided as part of the voice 
telephony service. Access for users in other Member Stales to be encouraged. 
Public pay-telephones 
Sufficient public pay-telephones to be provided to meet the reasonable needs of 
users, including card-phones. 
Access to emergency services 
Access to emergency services using, inter alia, the single European emergency call 
number *•"! 12'- to be provided free of charge. 
• Specific conditions for disabled users and people with special needs 
Special conditions where appropriate to aid disabled users or other people who have 
special needs in relation to their use of the telephone network and/or service. 
2.2 Additional elements 
The setting of appropriate targets and their implementation are to be ensured through the 
National Regulatory Authorities for the following : 
• Advanced features 
For the public telecommunications network and voice telephonv service the following 
advanced features should be provided : 
itemised billing ; 
DTMF tone dialling ("touch tone") ; <^ 3 
direct-dialling-in ; 
call forwarding ; 
calling line identification ; 
standard connector ('socket') for ISDN network access. 
Additionally, the provision of the following features is encouraged as part of a 
Community-wide voice telephony service : 
"(jreen number" ("freephone") services; 
kiosk billing ; 
call transfer ; 
reverse charging ; 
access to directory services in other Member States : 
access to operator services in other Member States. 
2.3 Leased lines 
The following mandator)' minimum set of leased lines must be offered: 
voice quality analogue lines 
Special quality analogue lines 
64 kbit/s digital lines 
2 Mbit/s digital lines, both structured and unstructured 
2.4 Recommended Offerings 
The provision of the following offerings within ISDN and packet switched data services 
(PSDS) is recommended : 
• ISDN (Integrated Services Digital Network) 
basic rate and primary rate access 
minimum set of bearer services, teleserviees, supplementary services 
"Green number" (freephone) services, kiosk billing, 
user contracts, common ordering and billing procedures, itemised billing. e v 
• PSDS (Packet Switched Data Services) 
minimum set of X.25 core offerings and user options 
"Green number" ("freephone") services, kiosk billing, 
common ordering and billing procedures 
3. ADJUSTMENT TO TECHNOLOGICAL DEVELOPMENT 
Provision for modifications necessary to adapt the provisions of ONP directives and 
recommendations to new technological developments or changes in market demand 
The Directives and Recommendations also make provision for I European and/or 
international standards to be used where available. 
Zb 
ISSN 0254-1475 
COM(93) 543 final 
DOCUMENTS 
EN 10 15 
Catalogue number : CB-CO-93-579-EN-C 
ISBN 92-77-60656-8 
Office for Official Publications of the Eurcrn^r c^rr-