COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 513 final 
Brussels, 29.11.1994 
COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
PRESENT STATUS AND FUTURE APPROACH 
FOR 
OPEN ACCESS TO TELECOMMUNICATIONS NETWORKS AND SERVICES 
(OPEN NETWORK PROVISION) 
TABLE OF CONTENTS 
Page 
SUMMARY 3 
1. INTRODUCTION 5 
2. THE FRAMEWORK IN PLACE FOR OPEN NETWORK PROVISION 5 
2.1 The open network provision (ONP) framework Directive 
2.2 Application of ONP to leased lines 
2.3 Application of ONP to voice telephony 
2.4 Application of ONP to packet switched data services (PSDS) 
2.5 Application of ONP to integrated services digital network (ISDN) 
2.6 Application of ONP to intelligent networks, network management, 
access to the local loop 
3. FUTURE APPROACH TO OPEN NETWORK PROVISION 10 
3.1 Transition to a fully competitive environment / Changes required 
3.2 Applicability - the entities covered by Open Network Provision 
3.3 The Interconnection Framework 
3.4 Standards 
4. CONCLUSION 15 
SUMMARY 
Access to advanced telecommunications and information technology networks and 
services is at the heart of the future information society, as set forth in the Report on 
Europe and the Global Information Society endorsed by the European Council 
meeting in Corfu in June 1994. Open access and interconnection are fundamental 
issues in moving the European Community to a liberalised telecommunications 
environment by 1st January 1998 in accordance with the time schedule laid down in 
Council Resolution 93/C213 of 22 July 1993, and have been made a major priority of 
the Commission's Action Plan 'Europe's Way to the Information Society', 
(COM(94)347) as adopted on 19 July 1994. 
Basic principles for open and efficient access to public telecommunications networks 
and services were first established at the European level in Council Directive 
90/387/EEC of 28 June 1990 on the establishment of the internal market for 
telecommunications services through the implementation of Open Network 
Provision. These principles govern technical interfaces and service features, supply 
and usage conditions and tariff principles. 
Since 1990, the Council has adopted several measures specifying further how the 
principles of Open Network Provision should apply to core areas of 
telecommunications. In particular, Council Directive 92/44/EEC specifies open 
network provision principles for leased lines, Council Recommendation 92/382/EEC 
specifies open network provision principles for Packet Switched Data Services, and 
Council Recommendation 92/383/EEC specifies open network provision principles 
for Integrated Services Digital Networks. In the case of the proposal for a Directive 
specifying open network provision principles to voice telephony published by the 
Commission, the European Parliament and the Council were not able to agree on 
adoption of the Directive and the European Parliament rejected the Council text. 
Council Resolution 93/C 213, which sets the date of 1st January 1998 for the 
liberalisation of public voice telephony service, calls on the Commission to introduce 
the necessary proposals for legislation by 1st January 1996. In preparing this 
package of legislation, it is appropriate to consider how to adjust the Open Network 
Provision framework to the future developments. 
Therefore, in addition to completing the current legislative programme, three main 
future issues must be addressed: 
• Applicability 
The concept of special and exclusive rights has been used up to the present as 
the major criteria for applying Open Network Provision conditions. With the 
future abolition of special and exclusive rights for telecommunications services, 
the issue of the entities to be covered by Open Network Provision must be re­
visited. 
• Limiting regulation to core issues 
The emphasis of Title XII of the Treaty of European Union on interconnection 
and interoperability, and the central importance of interconnection and 
interoperability in a competitive environment, require re-focusing of Open 
Network Provision on these issues. 
• Standards 
The proliferation of networks and services in the future competitive 
environment, and the need for interconnection and interoperability between 
them, requires renewed emphasis on the development of market-led interface 
standards in order to ensure that markets are open and users' interests are well 
served. 
As regards completion of the current programme in relation to the area of voice 
telephony, following non-adoption by the European Parliament on 19 July 1994 of 
the proposed Directive on the application of open network provision to Voice 
Telephony, the Commission will in the near future submit a revised proposal to the 
EP and the Council based on the consensus achieved to date during the conciliation 
procedure. 
1. INTRODUCTION 
Access to advanced telecommunications and information technology networks and 
services is at the heart of the future information society, as set forth in the Report on 
Europe and the Global Information Society endorsed by the European Council 
meeting in Corfu in June 1994. Open access and interconnection are fundamental 
issues in moving the European Community to a liberalised telecommunications 
environment by 1st January 1998 in accordance with the time schedule laid down in 
Council Resolution 93/C213 of 22 July 19931. 
Basic principles for open and efficient access to public telecommunications networks 
and services were first established at the European level in Council Directive 
90/387/EEC of 28 June 1990 on the establishment of the internal market for 
telecommunications services through the implementation of Open Network 
Provision2. These principles govern technical interfaces and service features, supply 
and usage conditions and tariff principles. 
Directive 90/387/EEC also identified key areas for the further specification of Open 
Network Provision principles, and set out a programme of legislative action. The 
Commission has undertaken action in all the areas identified, and the initial legislative 
programme is now almost completed. The main outstanding issue is the subject of 
voice telephony, following the decision by the European Parliament on 19 July 1994 
to reject the Council text of the proposed Directive. Disagreement centred on the 
horizontal issue of comitology. 
Follow-up action is now required to build on the consensus already achieved by the 
European Parliament and the Council on applying the general principles of Open 
Network Provision to this very important area of voice telephony. 
Preparation also needs to be made for liberalisation of public voice telephony 
services on 1st January 1998 by refining the present regulatory framework. The time 
is now right for taking stock of the achievements to date and developing the 
approach further in order to put in place a comprehensive and stable regulatory 
framework designed to encourage rapid development of the sector towards a fully 
competitive market. 
2. THE FRAMEWORK IN PLACE FOR OPEN NETWQRK PROVISION 
The existing regulatory framework for Open Network Provision (ONP) is laid down 
in Directive 90/387/EEC of 28 June 1990, and in a number of specific Directives 
and Recommendations as described below. 
1 OJ C213, 06.8.1993, p. 1. 
2 OJ L 192, 24.7.1994, p. 1. 
2.1 The ONP Framework (Directive 90/387/EEC) 
The Directive concerns the harmonisation of conditions for open and efficient access 
to and use of public telecommunications networks and, where applicable, public 
telecommunications services. 
This Directive sets out the basic principles of Open Network Provision, describes the 
areas to which ONP applies, and identifies the networks/services for which specific 
ONP application Directives/Recommendations should be adopted. 
Basic Principles of Open Network Provision 
ONP conditions must: 
- be based on objective criteria 
- be transparent and published in an appropriate manner 
- guarantee equality of access and be non-discriminatory in accordance with 
Community law. 
ONP conditions must not restrict access to or use of public telecommunications 
networks or public telecommunications services, except for reasons based on 
essential requirements within the framework of Community law. 
In addition to these general principles, the Directive identifies (in its Annex II) three 
areas for drawing up ONP conditions: 
- harmonised technical interfaces and/or service features 
- harmonised supply and usage conditions 
- harmonised tariff principles. 
Networks and Services for the application of Open Network Provision 
The Directive explicitly identifies (in its Annex I) a number of networks/services to 
which Open Network Provision conditions apply: 
1. Leased lines 
2. Packet and circuit switched data services 
3. ISDN 
4. Voice telephony service 
5. Telex service 
6 Mobile services, as applicable 
subject to further study 
7. New types of access to the network 
8. Access to broadband networks 
Specific Directives and Recommendations 
Annex III of Directive 90/387/EEC identifies areas for which the application of Open 
Network Provision should be further specified beyond the general principles outlined 
above, and sets out priorities and the appropriate type of regulatory measure for each 
area. These measures are:- a Directive specifying the application of Open Network 
Provision principles to leased lines, a Directive specifying the application of Open 
Network Provision to voice telephony, a Council Recommendation specifying the 
application of Open Network Provision to Packet Switched Data Services (PSDS), 
and a Council Recommendation specifying the application of Open Network 
Provision to Integrated Services Digital Networks (ISDN). 
Action taken pursuant to the requirements of the ONP framework Directive include: 
- adoption by Council, on 5 June 1992, of a Directive 92/44/EEC on the 
application of Open Network Provision to leased lines3. 
- adoption by Council, on 5 June 1992, of a Recommendation on the 
harmonised provision of a minimum set of packet-switched data services 
(PSDS) in accordance with Open Network Provision (ONP) principles4 
- adoption by Council, on 5 June 1992, of a Recommendation on the 
provision of harmonised Integrated Service Digital Network (ISDN) access 
arrangements and a minimum set of ISDN offerings in accordance with 
Open Network Provision (ONP) principles5 
- submission by the Commission of a proposal for a Directive on the 
application of ONP to Voice Telephony6, and subsequent adoption by the 
Council of a Common Position7. 
As regards the latter, issues of comitology prevented the European Parliament and 
the Council from reaching agreement on the final text of a Directive on the 
application of ONP to voice telephony (see section 2.3 below). 
In addition, in accordance with Directive 90/387/EEC, the Commission has published 
in the Official Journal of the European Communities a List of Standards suitable for 
Open Network Provision8, and has given mandates to the European 
3 OJL 165, 19.6.1994, p.27. 
4 OJ L 200, 18.7.1992, p. 1. 
5 OJL 200, 18.7.1992, p. 10. 
6 COM (92) 247, 27.08.92. 
7 Common Position confirmed by Council on 20 June 1994, in accordance with Article 189b(6) of the 
Treaty. 
8 OJ C 219, 13.8.1993, p.2. 
10 Telecommunications Standards Institute (ETSI) to develop European 
Telecommunications Standards (ETSs) suitable for open network provision in 
specific areas. 
2.2 Application of Open Network Provision principles to leased lines 
(Council Directive 92/44/EEC) 
Directive 92/44/EEC on the application of Open Network Provision to leased lines 
was adopted by the Council on 5 June 1992. 
The Directive specifies the application of Open Network Provision principles to 
leased line offerings, and in addition identifies in its Annex II a minimum set of leased 
lines to be made available in all Member States. Annex II of the Directive has 
recently been amended by a Commission Decision,9 in accordance with a regulatory 
Committee procedure set up by the Directive. The amendment involved the 
inclusion of European Telecommunications Standards developed under a mandate to 
the European Telecommunications Standards Institute in accordance with the 
procedure set out in the ONP framework Directive. 
2.3 Application of Open Network Provision principles to Voice Telephony 
As already mentioned, Directive 90/387/EEC stipulates that, as for leased lines, the 
application of Open Network Provision principles to voice telephony should be 
further specified in a Directive. 
The Commission submitted its proposal to the Council and the European Parliament 
on 27 August 1992, under the Co-operation procedure. The Council adopted a 
Common position on 30 June 1993. Following the entry into force of the Treaty of 
European Union on 1 November 1993, the Directive:JW&S_formally re-submitted 
under the Co-decision procedure: ¥he EP and the Council were^înâbier-to^ agree a 
final joint text for this Directive, largely owing to .the horizontal issue 6F 
comitology10. 
The Commission will in the near future submit a revised proposal to the EP and the 
Council based on the consensus achieved to date. 
9 Commission Decision of 15 June 1994 on amendment of Council Directive 92/44/EEC 
OJL 181, 15:7.1994, p.4(). 
The European Parliament passed a Resolution on 19.07.94 to reject the final Council text of an EP 
and Council Directive on the application of ONP to Voice Telephony. The European Parliament and 
the Council were unable to agree a joint text during Conciliation meetings held on 29.03.94 and 
26.04.94. Lack of agreement centred on the issue of Comitology. The Commission has now 
proposed a draft inter-institutional agreement on comitology (SEC(94)645). 
2.4 The Application of ONP principles to Packet Switched Data Services 
(PSDS) - Council Recommendation 92/382/EEC 
Council Recommendation 92/382/EEC on the harmonised provision of a minimum 
set of packet-switched data services (PSDS) in accordance with Open Network 
Provision (ONP) principles was adopted on 5 June 1992. 
The Recommendation calls upon Member States to ensure that on their territory a 
minimum set of packet switched data service with harmonised technical 
characteristics is provided, taking into account market demand. 
The Recommendation also deals with transparency of information, harmonised tariff 
principles, and quality of service issues 
2.5 The Application of ONP principles to Integrated Service Digital Networks 
(ISDN) - Council Recommendation 92/383/EEC 
Council Recommendation 92/383/EEC on the provision of harmonised Integrated 
Service digital network (ISDN) access arrangements and a minimum set of ISDN 
offerings in accordance with Open Network Provision (ONP) principles was adopted 
on 5 June 1992. 
The Recommendation calls upon Member States to ensure that on their territory an 
ISDN with harmonised access arrangements and a minimum set of offerings 
according to ETSI standards is provided, together with adequate and efficient 
interoperability between ISDNs in order to allow for Community-wide operation. 
As for Packet Switched Data Services, this, Recommendation also deals with 
transparency of information, harmonised tariff principles, quality of service issues 
and, in addition, numbering.. 
2.6 The application of Open Network Provision principles to Intelligent 
Networks / Network management / Access to the Local Loop 
The Commission has published for public comment an Analysis Report drawn up in 
accordance with Article 4 of Directive 90/387/EEC concerning the application of 
Open Network Provision principles to Intelligent Networks / Network management 
/ Access to the Local Loop. 
A notice drawing attention to the availability of this Analysis Report is published in 
the Official Journal of the European Communities11. 
11 OJC 215, 5.8.1994, p. 18. 
3. FUTURE APPROACH TO OPEN NETWORK PROVISION 
With the legislative programme of Directive 90/387/EEC now implemented, or in the 
process of implementation, attention should now also turn towards adjustment of the 
regulatory framework for the future competitive market. 
3.1 Transition To A Fully Competitive Environment / Changes required 
A fully competitive market in telecommunications services will develop in phases. 
According to Council Resolution 93/C213 and the public consultation on the Review 
of the situation in the Telecommunications sector, two stages are to be distinguished. 
The first stage comprises full implementation of the existing package of regulatory 
measures. As set out, this includes full application of the ONP framework Directive, 
the ONP Leased Lines Directive, together with implementation as appropriate of the 
Council Recommendations on ISDN and PSDS. 
It would also cover adoption, in due course, by the European Parliament and the 
Council of the re-submitted Directive on the application of Open Network Provision 
to voice telephony. 
This phase also covers publication for public comment of the Commission's Analysis 
Report on the application of Open Network Provision principles to the areas of 
Intelligent Networks / Network management / Access to the Local Loop. 
Full implementation of these measures is vital for providing legal certainty for the 
period up to 1st January 1998. 
The second stage concerns the changes necessary to meet the requirements of the 
fully competitive market which will be in place from 1st January 1998. In keeping 
with the timetable laid down in Council Resolution 93/C213, the necessary legislative 
measures are to be proposed by the Commission by 1st January 1996. 
Three main issues must be addressed: 
• Applicability 
The concept of special and exclusive rights has been used up to the present as 
the major criteria for applying Open Network Provision conditions. With the 
future abolition of special and exclusive rights for telecommunications services, 
the issue of the entities to be covered by Open Network Provision must be re­
visited. 
• Limiting regulation to core issues 
The emphasis of Title XII of the Treaty of European Union on interconnection 
and interoperability, and the central importance of interconnection and 
10 
interoperability in a competitive environment, require re-focusing of Open 
Network Provision on these issues. 
• Standards 
The proliferation of networks and services in the future competitive 
environment, and the need for interconnection and interoperability between 
them, requires renewed emphasis on the development of market-led interface 
standards in order to ensure that markets are open and users' interests are well 
served. 
The approach should be based on the principles of Council Resolution 93/C213 on 
the Review of the Situation in the Telecommunications Sector and the need for 
further developments in that market, and Council Resolution 94/C48 on Universal 
Service Principles in the Telecommunications Sector. The approach must also take 
account of the need for a high level of consumer protection in accordance with 
Article 129a of the Treaty. 
3.2 Applicability (ie the entities covered by Open Network Provision) 
In the future, exclusive or special rights can no longer serve as the main criterion for 
the applicability of Open Network Provision conditions. However, this is a horizontal 
issue which has wider implications than just Open Network Provision measures; it 
may also concern other areas, in particular Directives 90/531/EEC and 
92/13/EEC,12 and Directive 93/38/EEC13 on procurement, and Directive 
91/263/EEC on the approximation of the laws of the Member States concerning 
telecommunications terminal equipment, including the mutual recognition of their 
conformity14. 
The future orientation of Open Network Provision should be consistent with the 
principles set forth by Council in Resolution 93/C213. 
The starting point for considering the issue has been set out by a number of 
statements and declarations15. 
12 Council Directive 90/531/EEC of 17.9.90 on procurement procedures of entities operating in the 
water, energy, transport and telecommunications sectors. OJ L297, 29.10.1990, p.l. 
Council Directive 92/13/EEC of 25.2.92 co-ordinating the laws regulations and administrative 
procedures relating to the application of Community rules on the procurement procedures of entities 
operating in the water, energy, transport and telecommunications sectors. OJ L 76, 23.03.1992, 
p. 14. 
13 Council Directive 93/38/EEC of 14.6.93 co-ordinating the procurement procedures of entities 
operating in the water, energy, transport and telecommunications sector. OJ L199, 09.08.1993, p.84. 
14 OJL 128, 23.5.1991, p.l. 
15 a) Declaration made by Germany, the Netherlands and the UK in relation to the ONP Voice 
Telephony Directive. 
11 
The statements point to the need to work towards a solution which should: 
- be consistent, as far as possible, with the basic orientation to date 
- take proper account of the market position of the actors, once exclusive and 
special rights for telecommunications services have been abolished 
- ensure that obligations are reasonably equal and that actors share public 
service responsibilities to a reasonable extent, where, however, care will 
have to be taken that the principle of proportionality is safeguarded and 
market entrants are not loaded disproportionately with regulation16. 
- clarify the relationship between open network provision conditions and trade 
regulations relating to conditions of permanence, availability and quality of 
service 
The issue will need in-depth discussion taking into account the impact on other 
Directives. The approach chosen must be clear and unambiguous to apply in 
practice. 
Proposals to amend the existing measures to reflect the approach chosen will be 
made as part of the package of legislative proposals planned for 1st January 1996. 
3.3 The Interconnection Framework 
b) Position of the Commission: 
"The Commission has indicated in its Communication of April 1993 that Open Network Provision 
must develop in order to take account of future developments in the market. 
This must be done in the context of the timetable laid down by the Council for the liberalisation of 
telecommunications services and in particular the necessary changes in the European regulatory 
framework which the Commission must present before 1st January 1996. 
The Commission continues to believe that the application of Open Network Provision conditions will 
in the future depend on the market position of the entities concerned." 
c) Recommendations from the High-level Group on the Information Society ('Europe and the 
Global Information Society', 26.5.94, Chapter 2, pp.12, 13) 
"In future, all licensed public operators should assume their share of public service responsibilities 
(eg universal service obligations and the provision of equal access to networks and services). 
The [regulatory] authority will need to address .... a single regulatory environment valid for all 
operators, which would imply principles of transparency and non-discrimination, complemented by 
practical rules for dispute resolution and speedy remedy against abuse dominance." 
16 Council Resolution 94/C/48 of 7 February 1994 on Universal service principles in the 
telecommunications sector states inter alia that due account should be taken "of the principles of 
transparency, non-discrimination and proportionality, while ensuring compliance with competition 
rules in order to make a fair contribution to the burden which the provision of universal service 
represents" (emphasis added). 
12 
The main future orientation should be an open interconnected environment. This has 
been emphasised by the report on 'Europe and the global information society', and by 
the subsequent Action Plan of the Commission17. 
Three key orientations should be followed: 
- commercial negotiation should be the basis for interconnection agreements, with 
full application of the competition rules of the Treaty, 
- the national regulatory authorities must have a role in laying down principles for 
the negotiation 
- there must be common principles for interconnection charges. 
As regards interconnection charges, the charge for interconnection should be 
analysed with regard to three main elements: 
- re-imbursement for one-off costs associated with providing the 
interconnection requested 
- conveyance costs related to the volume of traffic carried and the number of 
interconnection circuits employed 
- a contribution to any cost burden associated with the provision of universal 
service, within the terms of Council Resolution 94/C48. ('Access charges') 
The current Open Network Provision framework Directive establishes the principle 
of cost orientation for the first two items. Some costing principles related to the last 
item were agreed in general terms by the European Parliament and the Council 
during the recent negotiations over the application of Open Network Provision 
principles to Voice Telephony (see section 2.3 above). 
The current consultation indicates the need to lay down the general approach for 
promoting interconnection in a transparent and stable regulatory framework. 
The Commission considers that the most appropriate regulatory approach for setting 
out in clear terms the principles and the framework for promoting interconnection is 
to fully apply the competition rules of the Treaty and to adopt in parallel an Open 
Network Provision Interconnection Directive. 
Areas to be addressed by such measures would be : 
Chapter 1. General principles for interconnection 
17 'Europe's way to the Information Society, An Action Plan1. Communication from the Commission to 
the Council the European Parliament, the Economic and Social Committee and the Committee of the 
Regions. COM (94) 347, 19 July 1994. 
13 
These principles relate to the Open Network Provision framework directive 
and should be: 
- based on objective criteria 
- transparent and published in an appropriate manner 
- guarantee equality of access and must be non-discriminatory, in accordance 
with EU law. 
Chapter 2. Framework for negotiation 
A negotiating framework should be set ensuring that commercial negotiations 
result in a fair and timely agreement. Regulatory authorities should have a 
responsibility for ensuring a balance between the bargaining power of the 
parties concerned, the provision of adequate information, cost-oriented 
structuring of the offering, and for issues such as unbundling and collocation. 
Chapter 3. A common approach and ceilings on that part of the 
interconnection charge which relates to sharing any burden of 
universal service. 
This approach should be based on the current consultations being carried out 
in the context of Council Resolution 94/C48 on Universal Service principles in 
the telecommunications sector18. 
It should establish clear, European-wide rules for the setting of access charges, 
including ceilings on access charges. 
Chapter 4. A mechanism for dispute resolution. 
A mechanism for dispute resolution between the interconnecting parties must 
be established, with defined roles for the national regulatory authorities and the 
Commission. 
Two comprehensive studies are currently being carried out for the Commission on 
accounting and interconnection (by Arthur Andersen*9 and WIK20 respectively). The 
18 The Commission is consulting with Member Stales on the issues raised by the definition of universal 
service and its means of financing, on tariff principles, accounting principles and transfers, and on 
access charge principles, and will report to the European Parliament and the Council by 1 January 
1996. 
19 'Cost allocation and the general accounting principles to be used in the establishment of access 
charges in the context of telephone liberalisation in the EC" - a study for the EC/DGXIII being 
undertaken by Arthur Andersen & Co, Turin, Italy. 
14 
studies will be submitted to a broad public consultation following their publication in 
November 1994. 
3.4 Standards 
In a competitive environment, more attention must be given to the interfaces of 
networks and services. The approach is to emphasise the role of voluntary standards 
in Open Network Provision and interconnection, since in general conformance to 
harmonised interface specifications is in the interest of all parties and should be left as 
a voluntary process as far as possible. At the same time, safeguards must be 
provided whereby, according to clear criteria based on user needs, the provision of 
standardised services could be made compulsory in exceptional circumstances. 
Article 5(3) of the Open Network Provision Framework Directive provides an 
appropriate base for this process, but the procedure needs to be clarified in order to 
gives legal certainty regarding the criteria for its application, and to include the 
necessary mechanisms of transparency and public consultation. 
4. CONCLUSION 
The European Union policy of Open Network Provision has substantially contributed 
to date to the development of an open access environment in the telecommunications 
sector. Open Network Provision measures are beginning to have their full impact in 
the European market. 
It is now important to reach rapid implementation by Member States of the last 
outstanding measure concerning voice telephony, by means of adoption of a revised 
proposal for a European Parliament and Council Directive specifying the application 
of Open Network Provision principles to Voice Telephony, based on the consensus 
achieved to date. 
As regards future development of the telecommunications regulatory framework, and 
particularly with a view to full liberalisation of voice telephony services by 1st 
January 1998 in accordance with Council Resolution 93/C213, it is now also 
necessary to agree basic principles for further adjusting open network provision 
principles to a fully competitive environment. 
It is with these considerations in mind that the Commission transmits this 
Communication to the European Parliament and the Council. 
20 'Interconnection in the context of Open Network Provision' - a study for the EC/DGXIII being 
undertaken by Wissenschaftliches Institut fur Kommunikationsdienste GmbH, Bad Honnef, 
Germany. 
15 
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