Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on a regulatory framework for radio spectrum policy in the European Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Introduction

Purpose

This proposal for a Decision is intended to ensure the harmonised availability and efficient use of radio spectrum, where required to implement Community policies in areas such as communications, transport, broadcasting and Research and Development (R&D).

Better account should be taken within the institutional arrangements for radio spectrum management, both of the Community interests and of the needs of EU business and users. This is needed, taking into account that the extent to which radio spectrum is available, licensed and used has major policy implications for the introduction and provision in the Community of pan-European communications services, GALILEO (radionavigation by satellites), air traffic control, digital TV and radio and Earth observation services.

Basis

The proposal draws upon on the experience gained with Community Decisions in the areas of Satellite Personal Communications Services (S-PCS) and Universal Mobile Telecommunications System (UMTS). Under these Decisions, political agreement was established as regards the policy objectives to be achieved in these areas and legal provisions allow for the harmonisation of radio spectrum for these communications systems by the European Conference of Postal and Telecommunications administrations (CEPT) and ensure the implementation by the Member States of harmonisation measures adopted.

The public consultation on the Green Paper on radio spectrum policy in the Community showed support for addressing certain radio spectrum policy issues at Community level, to establish a framework in order to ensure the harmonised use of radio spectrum to implement Community policies, provided due account is given to the current institutional arrangements for radio spectrum management, and to safeguard Community interests at international level.

Currently, the harmonisation of the use of radio spectrum is achieved, at global level, in the International Telecommunication Union (ITU - 189 member countries) and its World Radiocommunications Conferences (WRC) and, at European level, in the CEPT (43 member countries). Taking the globalisation of radio markets into account, harmonisation at the highest level possible should allow for economies of scale (i.e. lower equipment costs) and pan-European and global availability of services (i.e. international roaming) since harmonisation efforts will reach beyond the Community borders.

The present proposal seeks to complement, rather than to replace, the spectrum management activities of ITU/WRC and CEPT and of the Member States. Spectrum management activities are of a highly technical nature and are best carried out as close to the market as possible (subsidiarity and proportionality). It is necessary, however, to complement the spectrum management activities with policy discussions on the need to achieve common objectives with regard to the harmonisation of the use of radio spectrum in relevant areas. Where harmonisation is required, legal certainty and appropriate procedures are also necessary for the granting of mandates to the CEPT in order to develop spectrum harmonisation measures for Europe and corresponding proposals for ITU/WRC. Legal certainty is also required to ensure implementation by Member States of agreed harmonisation measures.

Coverage

Economic, technological and regulatory developments in the area of radiocommunications have led to a sharp increase in demand for spectrum, particularly by the communications sector where spectrum is needed to establish the Information Society. Several Community measures have been adopted in order to ensure spectrum availability for the communications sector.

To date, the radio spectrum requirements of other Community policies (such as: terrestrial and satellite TV and radio broadcasting; road-, rail-, air- and maritime transport; positioning, navigation and precision timing; Earth observation; and radio astronomy) have not been addressed in Community legislation. The present proposal seeks to establish the political and legal basis necessary to ensure that radio spectrum is and will be available to implement Community policies in all these areas.

2. Aims and objectives

The aim of the present proposal is to establish a policy and legal framework in the Community through which the harmonisation of the use of the radio spectrum in the policy areas of communications, broadcasting, transport and R&D relevant to Community policy objectives can be achieved while taking full advantage of the experience and expertise in the CEPT and ITU/WRC.

The main objectives of the proposal are to:

set into place a policy platform which is responsive to technological, market and regulatory developments in the area of radiocommunications and which appropriately allows for consultation of all relevant radio spectrum user communities. This policy platform, to be called Senior Official Spectrum Policy Group, comprising representatives of Member States, should advise the Commission on the need to harmonise the use of the radio spectrum in relevant Community policy areas. In addition to spectrum allocation matters, the policy platform will be invited to exchange views on radio spectrum assignment matters, i.e. how spectrum is best distributed within and across different user communities and countries;

establish a legal framework for harmonisation of spectrum where necessary; this will allow the Commission to grant mandates to the CEPT with the assistance of a Spectrum Committee on the basis of the advise from the policy platform and, where required, to legally ensure the implementation of the solutions worked out by CEPT in response to the Commission mandates ;

ensure coordinated and timely provision of information on radio spectrum use and availability in the EC;

ensure that appropriate Community and European positions are developed in view of international negotiations relating to spectrum (e.g. ITU/WRC) where issues at stake are covered by Community policies.

3. Proposed remedies

Addressing policy issues in the Community context rather than in third bodies

The proper implementation of Community policies which require radio spectrum may be put at risk if spectrum availability has not been fully considered. This cannot be decided at a technical level or in entities which are external to the Community such as CEPT or ITU/WRC. Spectrum requirements and availability issues should be settled where Community policy agreements are reached so that harmonised spectrum is available for Community policies.

The present proposal intends to ensure that radio spectrum requirements for Community policies are duly taken into account.

Balancing spectrum requirements of various sectors on the basis of comprehensive information

With the number of claims for the use of radio spectrum increasing, the potential for conflicts arises where spectrum is scarce. Currently, no policy platform exists where the requirements of the various policies can be appropriately discussed and balanced on the basis of comprehensive economic, technological and social data. Certain commercial spectrum user communities seek to ensure spectrum availability within the mainly technical bodies of CEPT and ITU/WRC, at times at the expense of non-commercial user communities, which are represented to a lesser extent in these bodies. This situation requires public policy Decisions in order to allow a proper balance of requirements where commercial and non-commercial interests compete for access to and use of the same portion of spectrum.

The proposal seeks to ensure that spectrum requirements of the various Community policies are appropriately balanced so that justified choices can be made with regard to the distribution of the scarce resource.

A framework Decision rather than sector-specific measures

Where required, the use of spectrum for Community policies can be and has been harmonised on the basis of particular decisions specific to each individual sector. This has a number of draw-backs, however, the most important one being the heavy and lengthy institutional procedure involved which risks to delay the introduction of new technologies and services. This proposal for a Decision aims at reaching an agreement on general objectives to be achieved, i.e. harmonisation of the use of radio spectrum, and on the applicable procedures which would be applicable to all Community policy areas involved.

The present proposal would ensure that the use of radio spectrum is harmonised according to agreed procedures.

Ensuring availability of information of use of spectrum

Availability of information on spectrum use will be a critical factor in the work of the Senior Official Spectrum Policy Group to determine where harmonisation of the use of the radio spectrum is required.

Essential information should therefore be provided by Member States on the use of radio spectrum pursuant to a common Community format.

Compulsory implementation rather than voluntary commitments

Taking into account the international trade obligations of the European Union and its Member States, and in order to have effect, measures aimed at the harmonised use of radio spectrum should be appropriately implemented. Currently, this aim is only partly met through CEPT measures, which its 43 member countries, including the Member States, are invited to implement on a voluntary basis. This situation does not provide potential investors with sufficient certainty. Where Member States agree on the need to harmonise the use of radio spectrum for a particular purpose, they should also take the necessary steps to implement such agreement in accordance with the provisions of the Decision.

Where policy agreement is reached to harmonise the use of radio spectrum necessary to implement relevant Community policies, legal provisions should ensure the appropriate implementation of measures by the Member States.

Community positions rather than national positions for international negotiations

Decisions on radio spectrum availability impact on trade and the European Union and its Member States have taken a number of commitments in the WTO as regards spectrum policy. On spectrum management issues which are within the exclusive competence of the Community, the Community alone is able to enter into external commitments in the framework of international fora in charge of spectrum management such as the International Telecommunications Union, in which framework the Commission is authorised to negotiate.

Despite its role in trade matters, the Community is not directly involved in international spectrum management negotiations. As a consequence, the positions of Member States with regard to spectrum availability are not systematically coordinated for international negotiations. The Community should make sure to adopt common positions in advance of such negotiations with regard to the objectives to be achieved. If it is not possible for the Community under the rules of such international fora to put forward the Community position, the Presidency of the Council should put forward the same.

The proposal seeks to ensure that, where required, common Community positions are agreed upon for international negotiations where radio spectrum is discussed in order to safeguard Community interests in the international arena.

4. Description of proposed Articles

Article 1 - Purpose

Article 1 describes the purposes of the decision ; this decision applies to all uses of spectrum - and not only communications - and aims at creating a policy and regulatory framework so as to ensure the harmonised availability and efficient use of radio spectrum where required to implement Community policies, and to strike a balance between the various types of spectrum uses affecting Community policies. At the same time, it is to ensure the coordinated and timely provision of information on radio spectrum use and availability in the Community, and the safeguard of Community interest at international level where radio spectrum use affects Community policies.

Article 2 - Definitions

Article 2 provides for the definition of radio spectrum, as well as allocation and assignment of spectrum.

Article 3 - Senior Official radio spectrum policy Group

Article 3 creates the Senior Official Radio Spectrum Policy Group which comprises representatives of Member States and which may consult spectrum users communities.

Article 4 - Function of the Senior Official Radio Spectrum Policy Group

Article 4 defines the function of the Group which is to contribute to the elaboration of a general cross-sectoral spectrum policy in view of the fulfilment of Community policy objectives.

Article 5 - Committee

Article 5 creates, as part of the establishment of a regulatory framework for the harmonisation of spectrum, a Radio Spectrum Committee to assist the Commission. It defines the regulatory and advisory procedures of the Committee.

Article 6 - Harmonisation measures

Article 6 describes the regulatory framework which will ensure the effective implementation of harmonisation measures in the Community taking account of the general policy orientations of the Group. This includes the possibility for the Commission to grant harmonisation mandates to the CEPT and to make the results of such mandates obligatory for the Member States or to take alternative measures where CEPT does not deliver.

Article 7 - Availability of information on spectrum allocation and assignment

Article 7 requires Member States to make available information on the availability and use of spectrum on their territory. The Annex to the Decision further describes such information. Harmonisation of the presentation of such information will also be required.

Article 8 - Relations with third countries and international organisations

Article 8 spells out the responsibilities of the Commission and the Member States with regard to relations with third countries and international organisations where spectrum policies and issues are being discussed as the main issue or as a part of wider negotiations. Where necessary, Member States are required to coordinate their positions in international negotiations to reach the objectives pursued under the Decision.

Article 9 - Notification

Article 9 requires Member States to provide the Commission with any information required for the verification of the implementation of their obligations under the Decision.

Article 10 - Confidentiality

Article 10 imposes confidentiality obligations in certain cases.

Article 11 - Report

Article 11 requires the Commission to annually report to the Council and the European Parliament on the implementation of the Decision.

Article 12 - Implementation

Article 12 requires Member States to take all measures necessary to implement their obligations under the Decision.

Article 13 - Entry into force

Article 13 regulates the entry into force of the Decision.

Article 14 - Addressees

Article 14 determines that the addressees of the Decision are the Member States.

(presented by the Commission)

2000/0187 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on a regulatory framework for radio spectrum policy in the European Community

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof ,

Having regard to the proposal from the Commission [1],

[1] OJ C

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C

Having regard to the opinion of the Committee of the Regions [3],

[3] OJ C.

Acting in accordance with the procedure laid down in Article 251 of the Treaty [4],

[4] OJ C

Whereas:

(1) On 10 November 1999 the Commission presented a Communication [5] to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions proposing the next steps in radio spectrum policy on the basis of the results of the Public Consultation on the Green Paper on Radio Spectrum Policy in the context of European Community policies such as telecommunications, broadcasting, transport and R&D [6]. This Communication received the support of the European Parliament in a Resolution of 18 May 2000 [7]. It underlined the need for action at Community level to achieve a harmonised and balanced approach on the use of radio spectrum in the Community in order to fulfil internal market principles and to protect Community interests at international level.

[5] COM(1999) 538.

[6] COM(1998) 596.

[7] A5-0122/2000.

(2) Where necessary, policy principles on the use of radio spectrum need to be defined at Community level with a view to meeting Community policy objectives, in particular in the areas of communications, broadcasting, transport, research which all require, to various extents, the use of radio spectrum, while maintaining a high standard of citizen's health. On the basis of these principles, the use of radio spectrum should be coordinated and harmonised at Community level, where necessary to fulfill these Community objectives. Community coordination and harmonisation may also help achieving harmonisation and coordination of the use of the spectrum at global level in certain cases. At the same time, appropriate technical support can be provided at national level.

(3) Spectrum policy cannot be based only on technical parameters but also needs to take into account economic, political, cultural, health and social considerations. Moreover, the ever increasing scarcity of available radio spectrum may increase the sources of conflicts between the various groups of radio spectrum users in sectors such as communications, broadcasting, transport, law enforcement, military and the scientific community. Therefore, spectrum policy should take into account all sectors and balance the respective needs. This Decision should not affect the right of Member States to impose restrictions necessary for public order and public security purposes.

(4) In order to define general policy objectives regarding the use of spectrum, an appropriate consultative body should be created which will gather together, under the chairmanship of the Member State holding the Presidency of the Council, senior Member States representatives responsible for the various sectors using or affected by the use of radio spectrum, such as communications, broadcasting, audio-visual, transport, research and development as well as of security policy, military defence and police sectors, which may be indirectly affected. This group should provide guidance to the Commission, both on its own initiative and at the request of the Commission, on the need for harmonisation of the use of radio spectrum in the general context of Community policy and on regulatory and other issues related to the use of radio spectrum which impact on Community policies, including, for example, methods for granting rights to use spectrum, information availability, availability of spectrum, refarming, relocation, valuation and efficient use of radio spectrum as well as protection of human health. For that purpose, each national delegation should have a coordinated view of all policy aspects affecting spectrum use in its Member State in relation with the issues to be discussed in the group.

(5) The group will take into account the views of the industry and of all users involved, both commercial and non-commercial, as well as of other interested parties on technological, market and regulatory developments which may affect the use of radio spectrum. Spectrum users should be free to provide all input they believe is necessary. The group may decide to hear representatives of the spectrum users communities at group meetings where necessary to illustrate the situation in a particular sector.

(6) The Commission should report on a regular basis to the European Parliament and the Council on the results achieved under this Decision, on policy objectives for radio spectrum in the Community as well as on planned future actions. This will allow for the provision of the appropriate political support for the policy objectives.

(7) Radio spectrum technical management includes the harmonisation and allocation of radio spectrum. Such harmonisation should reflect the requirements of general policy principles identified at Community level. Coordinated introduction in the Community of systems using radio spectrum is dependent on the various national approaches to assignment and licensing including with regard to spectrum pricing and license fees. These issues should therefore be discussed and where appropriate be harmonised at Community level.

(8) The Community approach should also benefit from cooperation with radio spectrum experts from national authorities responsible for radio spectrum management. Building on the experience of mandating procedures gained in specific sectors, for example as a result of the application of Decision No 710/97/EC of the European Parliament and of the Council of 24 March 1997 on a coordinated authorization approach in the field of satellite personal-communication services in the Community [8] (the S-PCS Decision) as amended by Decision No 1215/2000/EC [9] and Decision No 128/1999/EC of the European Parliament and of the Council of 14 December 1998 on the coordinated introduction of a third generation mobile and wireless communications system (UMTS) in the Community [10] (the UMTS Decision), a permanent, stable and uniform framework needs to be created at Community level to ensure harmonised availability of radio spectrum use and to provide adequate legal certainty. Harmonisation measures should be adopted as a result of mandates to national experts acting in appropriate spectrum management bodies including the European Conference of Postal and Telecommunications administration (CEPT). Where necessary, the Commission should be able to make the results of such mandates compulsory for Member States, and where the results of such mandates are not acceptable, to take appropriate alternative action. This will in particular provide for the harmonisation of frequency spectrum necessary for the implementation of Directive .../... /EC of the European Parliament and Council Directive [on the authorisation of electronic communications networks and services] [11].

[8] OJ L 105, 23.4.1997, p. 4.

[9] OJ L 139, 10.6.2000, p. 1.

[10] OJ L 17, 22.1.1999, p. 1.

[11] OJ L

(9) Appropriate information on present and future planning, allocation and assignment of radio spectrum, as well as conditions for access to and use of the whole radio spectrum are essential elements for investments and policy making. So are technological developments which will give rise to new spectrum allocation and management techniques and frequency assignment methods. Development of long term strategic aspects require proper understanding of the implications of how technology evolves. Such information should therefore be made accessible in the Community, without prejudice to confidential business and personal information protection under Directive 97/66/EC of the European Parliament and of the Council of 15 December 1997 concerning the processing of personal data and the protection of privacy in the telecommunications sector [12]. The implementation of a cross-sectoral spectrum policy makes the availability of information on the whole radio spectrum necessary. In view of the general purpose of harmonising spectrum use in the Community and in Europe, such information needs to be aggregated at a European level in a user-friendly manner.

[12] OJ L 24, 30. 1.1998, p. 1.

(10) It is therefore necessary to complement existing Community and international requirements for publication of information on use of radio spectrum. At international level, the Reference Paper on Regulatory Principles negotiated in the context of the World Trade Organisation by the Group on Basic Telecommunications also requires that the existing state of allocated frequency bands be made publicly available. Commission Directive 96/2/EC of 16 January 1996 amending Directive 90/388/EEC with regard to mobile and personal communications [13] ("the Mobile Directive") requires Member States to publish every year or make available on request the allocation scheme of frequencies, including plans for future extension of such frequencies, but only covers mobile and personal communications services. Moreover, Directive 1999/5/EC of the European Parliament and of the Council of 9 March 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity [14], as well as Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information in the field of technical standards and regulations and of rules on Information Society services [15], as amended by Directive 98/48/EC [16], require Member States to notify to the Commission the interfaces which they have regulated so as to assess their compatibility with Community law.

[13] OJ L 20, 26.1.1996, p. 59.

[14] OJ L 91, 7.4.1999, p. 10.

[15] OJ L 204, 21.7.1998, p. 37.

[16] OJ L 217, 5.8.1998, p. 18.

(11) The Mobile Directive was at the origin of the adoption of a first set of measures by CEPT such as European Radiocommunications Committee Decision (ERC/DEC/(97)01) [17] on the publication of national tables of radio spectrum allocations. It is necessary to ensure that CEPT solutions reflect the needs of Community policy and are given the appropriate legal basis so as to be implemented in the Community. For that purpose, specific measures have to be adopted in the Community both on procedure and substance.

[17] www.ero.dk.

(12) Community undertakings should obtain fair and non-discriminatory treatment on access to spectrum in third countries. As access to radio spectrum is a key factor for business development and public interest activities, it is also necessary to ensure that Community requirements for radio spectrum are reflected in international planning.

(13) Implementation of Community policies may require coordination of radio spectrum use, in particular the provision of communications services including Community-wide roaming facilities. Moreover, certain types of spectrum use entail a geographical coverage which goes beyond the borders of a Member State and allow for transborder services without requiring the movement of persons, such as satellite communications services. It is therefore necessary that the Community be adequately represented in the activities of all relevant international organisations and conferences related to radio spectrum management matters, such as within the International Telecommunications Union and its World Radiocommunications Conferences [18]. In international negotiations, Member States and the Community should develop a common action and closely cooperate during the whole negotiations process so as to safeguard the unity of the international representation of the Community. As a consequence, Member States should support the request by the Community in view of involvement in such negotiations, based in particular on the procedures which had been agreed in the Council conclusions of 3 February 1992 for the World Administrative Radio Conference and as confirmed by the Council conclusions of 22 September 1997 and 2 May 2000. For such international negotiations, the Commission sets out the objectives to be achieved in the context of Community policies, in view of obtaining endorsement by Council on the positions to be taken by Member States at international level. Member States accompany any act of acceptance of any agreement or regulation within international fora in charge of or concerned with spectrum management by a joint declaration stating that they will apply such agreement or regulation in accordance with their obligations under the Treaty.

[18] The Commission reported on the Community issues at stake in WRC in COM(1997) 304, COM(1998) 298 and COM(2000) 86.

(14) The inherent international nature of spectrum issues may require the adoption of a number of agreements with third countries which also affect frequency bands usage and sharing plans, in view in particular of trade and market access, including in the World Trade Organisation framework, free circulation and use of equipment, communications systems of regional or global coverage such as satellites, safety and distress operations, transportation systems, broadcasting technologies, and research applications such as radio-astronomy and earth observation.

(15) It is necessary, due to the potential commercial sensitivity of information which may be obtained by national authorities in the course of their action relating to spectrum policy and management, to establish common principles applicable to these national regulatory authorities in the field of confidentiality.

(16) Taking into account international trade obligations of the Community and its Member States, Member States should implement this common framework for spectrum policy, in particular through their national authorities and provide all information required to the Commission to assess the proper implementation throughout the Community.

(17) The existing UMTS and S-PCS Decisions should remain in force until they reach their date of expiry as they provide for a legal basis for ongoing harmonisation measures and specific solutions for UMTS and S-PCS.

(18) In accordance with Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [19], measures for the implementation of this Decision should be adopted by use of the advisory procedure provided for in Article 3 of that Decision or the regulatory procedure provided for in Article 5 of that Decision, as appropriate,

[19] OJ L 184, 17.7.1999, p. 23.

HAVE ADOPTED THIS DECISION:

Article 1

Aim

The aim of this Decision is to:

(a) create a policy framework to address the strategic planning and harmonisation of the use of radio spectrum in the Community taking into consideration in particular economic, health, public policy, cultural, scientific, social and technical aspects of Community policies as well as the various interests of radio spectrum users communities with the aim of optimising the use of spectrum and of avoiding harmful interference;

(b) establish a procedural framework to ensure the effective implementation of radio spectrum policy in the Community, and in particular establish a general methodology for harmonisation of the use of radio spectrum;

(c) ensure the coordinated and timely provision of information on radio spectrum use and availability in the Community;

(d) safeguard Community interests in international negotiations where radio spectrum use affects Community policies.

This Decision is without prejudice to the specific rules adopted by Member States or the Community governing the content of audio-visual programmes intended for the general public, to the provisions of Directive 1999/5/EC and to the right of Member States to organise their radio spectrum for public order and public security purposes.

Article 2

Definitions

For the purposes of this Decision:

(a) "Radio spectrum" includes at least radio waves in frequencies between 9 KHz and 3000 GHz; radio waves are electromagnetic waves propagated in space without artificial guide;

(a) "Allocation of a radio frequency band" means the entry of a radio frequency band in a table of radio frequency allocations for the purpose of its use by one or more types of services under specified conditions;

(a) "Assignment of a radio frequency" means the authorisation given by an authority to use a radio frequency under specified conditions.

Article 3

Senior Official Radio Spectrum Policy Group

With a view to the strategic planning and harmonisation of use of radio spectrum in the Community, the Commission shall be assisted by a consultative group to be called the Senior Official Radio Spectrum Policy Group.

The Group shall be composed of senior representatives from the Member States and a representative of the Commission, and shall meet at least twice a year under the chairmanship of the representative of the Member State holding the Council Presidency. The Group's secretariat shall be provided by the Commission.

The Group shall consult, as it may deem appropriate, representatives from the various sectors of activities and citizen representatives affected by or requiring the use of radio spectrum in the Community and in the rest of Europe.

Article 4

Function of the Senior Official Radio Spectrum Policy Group

The Senior Official Radio Spectrum Policy Group shall contribute to the formulation, preparation and implementation of a radio spectrum policy by delivering opinions to the Commission either at the Commission's request or on its own initiative, and shall contribute to the preparation of the Commission's report referred to in Article 11.

The Group shall in particular:

(a) monitor the evolution of the use of and access to radio spectrum in the Community as well as at national, regional, and global levels;

(b) review current needs and anticipate future needs for radio spectrum for commercial as well as non-commercial applications in the Community, based in particular on strategic, economic, technological, political, health, social and cultural aspects of radio spectrum use, in view of the fulfilment of Community policy objectives; advise the Commission on strategic planning of radio spectrum use, and where necessary, balance the various requirements for radio spectrum of different users;

(c) advise the Commission on regulatory, international, technical, economic and political developments affecting the use of spectrum, as well as on the need for harmonisation measures at Community level for radio spectrum use to implement Community policies;

(d) assess the need for European common proposals to be developed in view of international negotiations;

(e) assist in the preparation of the Commission annual report on the developments impacting on existing and future use of radio spectrum in the Community;

(f) encourage the exchange of information among Member States on the evolution of the use of radio spectrum in the Community.

Article 5

Committee

1. The Commission shall be assisted by a committee composed of representatives of the Member States and chaired by the representative of the Commission ("the Radio Spectrum Committee").

2. Where reference is made to this paragraph, the advisory procedure laid down in Article 3 of Decision 1999/468/EC shall apply, in compliance with Articles 7 and Article 8 thereof.

3. Where reference is made to this paragraph, the regulatory procedure laid down in Article 5 of Decision 1999/468/EC shall apply, in compliance with Articles 7 and Article 8 thereof.

The period provided for in Article 5(6) of Decision 1999/468/EC shall be three months.

Article 6

Harmonisation measures

1. Where appropriate, and taking into account where possible the advice of the Senior Official Radio Spectrum Policy Group, the Commission shall propose measures to harmonise the use of radio spectrum, assignment methods, conditions for such use, as well as the availability of information related to the use of radio spectrum.

2. For these purposes, the Commission shall give mandates to the CEPT, setting out the tasks to be performed and the timetable therefor. The Commission shall act in accordance with the procedure referred to in Article 5(2).

3. On the basis of the work completed pursuant to paragraph 2, the Commission shall decide whether the results of the mandate are acceptable and, if so, may decide to make such results mandatory for the Member States, which shall implement them in a deadline to be determined. These Decisions shall be published in the Official Journal of the European Communities. For the purpose of this paragraph, the Commission shall act in accordance with the procedure referred to in Article 5(3).

4. Notwithstanding paragraph 3, if the Commission or any Member State considers that the work done on the basis of a mandate granted pursuant to paragraph 2 is not progressing satisfactorily having regard to the set timetable or if the results of the mandate are not acceptable, the Commission may adopt measures to achieve the objectives of the mandate, acting in accordance with the procedure referred to in Article 5(3).

Article 7

Availability of information on spectrum allocation and assignment

Member States shall publish without delay the information as defined in the Annex and shall keep this information up-to-date.

Moreover, Member States shall take measures to develop an appropriate data base in order to make such information available to the public in a harmonised way.

Article 8

Relations with third countries and international organisations

1. The Commission shall monitor developments regarding radio spectrum in third countries and in international organisations, which may have implications for the implementation of this Decision.

2. The Member States shall inform the Commission of any difficulties created, de jure or de facto, by third countries or international organisations for the implementation of this Decision.

3. The Commission shall report regularly on the results of the application of paragraphs 1 and 2 to the European Parliament and the Council and may propose measures with the aim of securing the implementation of the principles and objectives of this Decision, where appropriate. Whenever necessary, common positions shall be agreed to ensure Community coordination among Member States.

4. Measures taken pursuant to this Article shall be without prejudice to the Community's and Member States' rights and obligations under relevant international agreements.

Article 9

Notification

Member States shall give the Commission such information as it may require for the purpose of verifying the implementation of this Decision. In particular, Member States shall immediately inform the Commission about the implementation of the results of the mandates pursuant to Article 6(3).

Article 10

Confidentiality

1. Member States shall not disclose information covered by the obligation of professional secrecy, in particular information about undertakings, their business relations or their cost components.

2. Paragraph 1 shall be without prejudice to the right of national authorities to undertake disclosure where it is essential for the purposes of fulfilling their duties, in which case such disclosure shall be proportionate and shall have regard to the legitimate interests of undertakings in the protection of their business secrets.

3. Paragraph 1 shall not preclude publication of information on conditions linked to the granting of rights to use spectrum which does not include information of a confidential nature.

Article 11

Report

The Commission shall report on an annual basis to the European Parliament and the Council on the activities developed and the measures adopted pursuant to this Decision, on the results of the work done by the Senior Official Radio Spectrum Policy Group as well as on future actions envisaged pursuant to this Decision.

Article 12

Implementation

Member States shall take all measures necessary, by law or administrative action, for the implementation of this Decision and all resulting measures.

Article 13

Entry into Force

This Decision shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities.

Article 14

Addressees

This Decision is addressed to the Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX

Pursuant to Article 7, and without prejudice to notification obligations under Directives 1999/5/EC and 98/34/EC, the following information shall be published:

1. Information regarding frequency allocation and assignment includes the following:

-existing allocations and assignments of radio spectrum as well as conditions for the use of radio spectrum, including where practicable, operating power, emission and any other technical constraints;

-plans for changes to existing allocations for the next two years at least, including relocation plans and review date of allocation;

-locations and geographical coverage linked to allocation plans;

-service actually operated, if different from allocated, and effective use of spectrum;

-reserved bands for new services.

2. Without prejudice to the provisions of specific legislation relating to communications networks and services, publication shall include procedures for granting rights to use spectrum , and planned changes to spectrum use conditions. These shall include all types of obligations, charges and financial costs related to the use of radio spectrum, including administrative charges, usage fees and procedures for assignment of spectrum (including auctions).

FINANCIAL STATEMENT

1. Title of operation

Proposal for a European Parliament and Council Decision on a regulatory framework for radio spectrum policy in the European Community

2. Budget heading(s) involved

B5-302

3. Legal basis

Article 95 of the EC Treaty

4. Description of operation

4.1 General objective

The purpose is to create a policy framework to advise the Commission on market, technological and international developments impacting on the use of radio spectrum in the areas of communications, broadcasting, transport and R&D Community policies; to create a Senior Official Spectrum Policy Group; to provide for a legal Community framework to ensure effective implementation of radio spectrum policy in the Community and to allow harmonisation of the use of radio spectrum with the assistance of a Radio Spectrum Committee; to ensure coordinated and timely provision of information on radio spectrum use and availability in the Community; and to safeguard Community interest in international trade and radiocommunications negotiations.

4.2 Period covered and arrangements for renewal

There is no limit in time in the application of this Decision.

5. Classification of expenditure or revenue

5.1 Non-compulsory expenditure

5.2 Differentiated appropriations

6. Type of expenditure or revenue

Service contracts for studies

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

Studies will be required to be conducted by independent external experts on general policy aspects of spectrum use as well as technical aspects of spectrum harmonisation and on information gathering. The cost of studies will depend on the degree of details required and extension of their scope.

7.2 Itemised breakdown of cost

Commitment appropriations EUR million (at current prices)

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7.3 Operational expenditure for studies, experts etc. included in Part B of the budget

Commitment appropriations EUR million (at current prices)

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7.4 Schedule of commitment and payment appropriations

EUR million

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8. Fraud prevention measures

-Before paying its contribution, the Commission shall control the payment of any service, preparatory study, feasibility or evaluation study, taking into account applicable contractual obligations, economic principles and good financing or management practices. All agreements and contracts entered into between the Commission and the beneficiaries of payments shall include anti-fraud provisions (monitoring, reporting obligations, etc.).

-In addition, internal audits or external audits may be carried out by the Commission services or the Court of Auditors in accordance with the Treaty establishing the European Community.

9. Elements of cost-effectiveness analysis

9.1 Specific and quantified objectives; target population

-This Proposal for a Decision aims at ensuring the harmonised availability and efficient use of radio spectrum, where required to implement Community policies in areas such as communications, transport, broadcasting and Research and Development (R&D).

-Target population: distinguish for any individual objectives; indicate the end-beneficiaries of the Community's financial contribution and the intermediaries involved. Studies will be conducted by independent experts hired upon selection. Meetings will be attended by national Officials and experts.

9.2 Grounds for the operation

Community financial aid is required for four major purposes: the setting up and functioning of a High Official Spectrum Policy Group and of a Spectrum Committee, for information harmonisation and for international negotiations. This may also require conducting particular studies on specific harmonisation issues.

In order to define policy objectives on the use of spectrum in view of Community policy objectives, including coordination and harmonisation at Community level, a Senior Official Spectrum Policy Group should be created. The group will take into account the views of the industry and of all interested parties on technological, market and regulatory developments related to radio spectrum.

Cooperation with national radio spectrum experts will build on the experience of mandating procedures gained in specific sectors, such as S-PCS [20] and UMTS [21], to create a permanent, stable and uniform framework at Community level so as to ensure harmonised availability and use of radio spectrum. A Spectrum Committee of national experts would therefore assist the Commission on the technical aspects of spectrum harmonisation. This would result in particular in harmonisation mandates being granted to appropriate spectrum management bodies such as CEPT.

[20] European Parliament and Council Decision 710/97/EC of 24 March 1997 on a coordinated authorisation approach in the field of satellite personal-communication services in the Community (OJ L 105, 23.4.1997, p. 4).

[21] European Parliament and Council Decision 128/1999/EC of 14 December 1998 on the coordinated introduction of a third generation mobile and wireless communications system (UMTS) in the Community (OJ L 17, 22.1.1999, p. 1).

Appropriate information on planning, allocation and assignment of radio spectrum, as well as conditions for access to and use of the whole radio spectrum are essential elements for investments and policy making. Such information therefore has to be made accessible in the Community, on a harmonised basis, where appropriate with the assistance of the Commission.

It is also necessary that common positions be adequately promoted in all international organisations and conferences related to radio spectrum matters, notably within ITU and World Radiocommunications Conferences.

In international negotiations, Member States and the Community should develop a common action and closely cooperate during the whole negotiations process so as to safeguard the unity of the international representation of the Community and allow the Commission to negotiate in the name of both the Community and the Member States where applicable

After proper evaluation over several years in specific cases, it appears that the solution chosen is based on proven experience in certain fields of spectrum use, and fully respects the principle of subsidiarity. Efforts from Member States and CEPT are also required through mandates to CEPT. This proposal for a decision builds on the experience of mandating procedures gained in specific sectors, such as S-PCS [22] and UMTS [23] based on national input; harmonisation sought through this decision feeds into national experience and on-going efforts.

[22] European Parliament and Council Decision 710/97/EC of 24 March 1997 on a coordinated authorisation approach in the field of satellite personal-communication services in the Community (OJ L 105, 23.4.1997, p. 4).

[23] European Parliament and Council Decision 128/1999/EC of 14 December 1998 on the coordinated introduction of a third generation mobile and wireless communications system (UMTS) in the Community (OJ L 17, 22.1.1999, p. 1).

Uncertainty lies with the level of effectiveness of the harmonisation efforts which will result from the mechanism to be put in place. Specific experience gained in particular sectors shows that results are usually very positive without creating high financial risks for the Community.

9.3 Monitoring and evaluation of the operation

Each year, a report will be presented by the Commission to the European Parliament and to the Council evaluating the results achieved following implementation of the Decision. The results of the evaluation will be an important input for follow-up actions on spectrum harmonisation.

10. Administrative expenditure (Section III, Part A of the budget)

Actual mobilization of the necessary administrative resources will depend on the Commission's annual decision on the allocation of resources, taking into account the number of staff and additional amounts authorized by the budgetary authority.

10.1 Effect on the number of posts

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10.2 Overall financial impact of additional human resources

EUR

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10.3 Increase in other administrative expenditure as a result of the operation

EUR

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IMPACT ASSESSMENT FORM THE IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES( SMEs)

Title of proposal

Proposal for a European Parliament and Council Decision on a regulatory framework for radio spectrum policy in the European Community.

Document reference number

COM(2000) yyy final

The proposal

1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and what are its main aims-

Community legislation is necessary to ensure that policy principles on the use of radio spectrum are defined at Community level in view of meeting Community policy objectives, in particular in the areas of communications, broadcasting, transport, research which all require, to various extents, the use of radio spectrum.

On the basis of these principles, the use of radio spectrum has to be coordinated and harmonised at Community level, where necessary, to fulfil these Community objectives. Community coordination and harmonisation may also help achieving harmonisation and coordination of the use of the spectrum at global level in certain cases. At the same time, appropriate technical support can be provided at national level.

The impact on business

2. Who will be affected by the proposal-

-which sectors of business - Radio spectrum is used in many sectors, in particular communications, broadcasting, transport, research.

-which sizes of business (what is the concentration of small and medium-sized firms)- Concentration depends on the type of sector. While communications in particular mobile communications is a concentrated sector, transport, broadcasting and R&D has a large number of small and middle size entities and enterprises.

-are there particular geographical areas of the Community where these businesses are found - Radio spectrum is used throughout the Community without particular geographical concentrations.

3. What will business have to do to comply with the proposal-

Businesses will not be the addressees of the Decision but will indirectly benefit from the creation of a general forum for discussion of spectrum policy issues and from increased certainty as to the harmonisation of spectrum use in the Community.

4. What economic effects is the proposal likely to have-

-on employment: spectrum use in particular in communications is an important source of employment;

-on investment and the creation of new businesses: activities linked to the use of spectrum are developing at a high pace; more certainty in the use of spectrum should facilitate even further investments;

-on the competitiveness of businesses: efficient use of spectrum should benefit to businesses; they benefit from improved communications, including mobile and wireless communications, as well as from improved transport facilities, R&D and broadcasting.

5. Does the proposal contain measures to take account of the specific situation of small and medium-sized firms (reduced or different requirements, etc.)-

Yes. Community spectrum policy will have to take into account specific requirements of Community policies; the broadcasting sector for example has a large number of SME which use frequency spectrum the needs of which will have to be assessed at general level to ensure a proper balance in the use of spectrum.

Consultation

6. List the organisations which have been consulted about the proposal and outline their main views.

Public consultation was organised on the basis of the Green Paper on Radio spectrum Policy COM (1998)596. More than 140 entities have submitted comments as a result of the consultation. Their names are listed in the Results of the Consultation (COM(1999)538).