No C 68/22 Official Journal of the European Communities 16. 3. 87 
Opinion on the proposal for a Council Regulation on a Community action in the field 
of telecommunications technologies (RACE) (') 
(87/C 68/11) 
On 17 November 1986 the Council decided to consult the Economic and Social Committee, under 
Article 198 of the EEC Treaty, on the proposal for a Council Regulation on a Community action in the 
field of telecommunications technologies (RACE). 
The Section for Industry, Commerce, Crafts and Services, was instructed to prepare the Committee's 
work on the subject. In the further course of the proceedings the Committee appointed Mr Nierhaus 
rapporteur-general. 
At its 242nd plenary session (meeting of 17 December 1986), the Economic and Social Committee 
unanimously adopted the following opinion: 
I. Introduction 
1. The Community's R&D policy in the field of 
telecommunications dates back roughly to mid-1983. The 
aim of the present proposal is to expand this policy and 
embody it in an extensive programme. The ESC has 
commented on several occasions on individual policy aspects 
and projects. The last occasion it did so was in its opinion of 
17 September 1986 on the proposal for a Council 
recommendation on the coordinated introduction of the 
integrated services digital network (ISDN) in the European 
Community (2). 
In March 1985 (COM(85) 145) the Commission reported on 
an extensive longer-term plan for an R & D programme in 
the field of telecommunications technologies (RACE). At the 
same time it submitted a proposal for a Council Decision on a 
preparatory action (RACE definition phase COM(85) 113). 
The ESC commented on both documents last year (3): in so 
doing it gave its basic stamp of approval to the plan. 
The new thrust which is to be provided by the present 
proposal is meant to establish a strong position on the world 
market for the manufacturers of telecommunications 
equipment and the users of this equipment in the service 
sector. An important prerequisite — and, at the same time, a 
tremendous political, technological and financial challenge 
— will be the gradual introduction by the mid-1990s 
of integrated broadband communications with 
Community-wide services. The Community will provide 800 
million ECU from its budget for this purpose. 
II. General comments 
In giving its express approval to the Commission's plan and 
proposal, the Committee has been guided in the main by the 
following facts and considerations: 1. Telecommunications are crucial for the Community's 
economic development. The industrial production of 
network components (LSI circuits, communications 
software, terminals) has a direct influence on the 
development of office communications and information 
services, which are the key areas of economic growth in the 
Community with rates of 8—10%. 
2. The Community is still in a good position to compete in 
telecommunications exports with the USA and Japan on the 
export front but if it does not succeed in maintaining this 
position the employment in the Community dependent 
thereon will not be able to be safeguarded and expanded. The 
number of new jobs created in the EEC by the 500 000 
million ECU which will probably be invested in the next 
decade in telecommunications infrastructure (including 
services and terminals) will depend on the extent to which the 
Community succeeds in holding its own on the international 
market. If the Community loses ground new jobs will not be 
created and existing jobs will be lost as hi-tech imports force 
firms to rationalize. 
3. In tomorrow's information society the ability to 
compete internationally will depend in almost all sectors on 
the ability to keep costs down with the aid of modern 
information and communication technologies. 
4. The division of the Community telecommunications 
industry into national markets, with all the stifling effects this 
has on supply and demand, will have to be overcome if the 
Community is to be able to manufacture cheaply and 
compete strongly with its international rivals. RACE can 
make a major contribution here if the funds are earmarked 
for developments which are likely to bring about the greatest 
measure of integration. 
III. Specific comments 
(!) OJ No C 304, 28. 11. 1986, p. 2. 
(2) OJ No C 328, 26. 12. 1986. 
(3) OJ No C 188, 29. 7. 1985. 1. RACE fits in well with the ESPRIT programme. 
Whereas ESPRIT concentrates on promoting the 
development of basis microelectronic technology and its 
16. 3. 87 Official Journal of the European Communities No C 68/23 
application in the office and manufacturing, RACE focuses 
on communications technology R&D and its aim is to assist 
the establishment of a high-performance Community-wide 
integrated broadband network. However, there are R&D 
sectors in the programmes where some overlapping is feasible 
(e.g. projects in Part II of the definition phase). Therefore, a 
clear description of the various projects' aims and tasks is 
considered by the Committee to be necessary. In this 
connection it welcomes the planned exchange of information 
between experts working on the different projects; this will 
enable them to benefit directly from the results of associated 
projects. 
2. The Committee would refer in particular to the 
problem of the enormous funds which network operators 
and the providers of services will have to invest initially in the 
construction of an integrated broadband network. Here 
special consideration should be given to how to progress 
at the same pace throughout the Community without 
burdening the taxpayer or the end user unduly with the 
costs. 
3. Some thought should also be given to the question of 
whether it will already be possible at this stage to step up the 
advertising and information campaigns about the new and 
improved services which the integrated broadband networks 
will provide. This concerns both the private and business 
sectors, for the costs will be largely determined by the 
services' acceptance (i.e. the number of users). 
4. The Committee would also point out once again that 
the foreseeable social consequences of integrated broadband 
networks should be studied alongside the technology and 
that remedies should be discussed by the Commission even 
though they are bound to be rather hazy at the moment 
because of the complicated nature of the technological 
changes. The points to be considered are: 
— the quantitative and qualitative impact on individual jobs 
and the employment market as a whole in the 
Community; 
— the need to train the requisite personnel in time; 
— the protection of personal data and intellectual property, 
e.g. software; 
— the need for new private services (viewdata, cable 
television, video telephone) and their possible 
repercussions on society. 
Done at Brussels, 17 December 1986. 4.1. Existing and future programmes should be 
constantly checked in order to ensure that the development of 
new technology and the mastering of its social repercussions 
are closely linked. 
5. The Committee stresses the need to pay special 
attention to the problems resulting from the gradual 
switchover from analogue transmission techniques to 
narrowband digital networks and, eventually, to the general 
introduction of broadband networks. Not unless priority is 
given to the problems of high-performance transmission 
software and the corresponding interface standards will it be 
possible, according to the Committee, to keep to the planned 
1995 deadline. 
6. The Commitee deplores the fact that the last Council 
meeting of the ministers responsible for the internal market 
failed to agree on plans for common standards for 
information and telecommunications technologies. It urges 
the Council to create this long overdue sine qua non for a 
successful Community technology policy at the earliest 
possible opportunity. 
7. The Committee underlines the need to bear in mind 
small businesses and universities when orders are placed. The 
less developed regions of the Community should also receive 
assistance wherever possible in order to avoid disparities 
when Community-wide services are established. The STAR 
programme should be continued on a larger scale in this 
connection. 
8. National telecommunications operators, which are 
mainly State-controlled, have a key role to play in ensuring 
the success of the ambitious programme. Community 
projects such as RACE can merely prompt Member States to 
integrate their activities. The decisive factor, however, is that 
all Member State Governments have the political will to do 
everything in their powers to achieve the goal, which is to 
establish an operational Community-wide integrated 
services broadband network by 1995 and to mobilize all 
available human and financial resources to this end. 
9. The Committee trusts that in addition to the Council 
and the Parliament it, too, will receive the reports provided 
for in Article 9 of the proposal. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT