COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 29.05.1997 
COM(97) 236 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
on the implementation of the telecommunications regulatory package 

Communication from the Commission to the Council, the European Parliament, the 
Economic and Social Committee and the Committee of the Regions on the 
implementation of the telecommunications regulatory package 
1. Background 
The Community telecommunications regulatory framework, which has as its objective the 
creation of a liberalised and harmonised European market on the basis of Articles 90 and 
100a of the Treaty, is now nearing completion. A relatively small number of directives, 
already in a more or less finalised state, remains to be adopted formally. The date for full 
liberalisation, set for 1 January 1998, is little more than six months away, and indeed many of 
the intermediate deadlines laid down in the framework are approaching or have passed. 
In its Resolution of 21 November 19961, the Council recognised that the "liberalisation of 
telecommunications markets, within the agreed timetable, will stimulate (the) private and 
public investment necessary for the development of the information society in Europe". This 
would in turn "support the promotion of high level employment and the raising of living 
standards and quality of life in the Community". 
In this context, the Council stressed that 
"rapid adoption and effective implementation of the regulatory framework ... is 
crucial for ensuring the development of competition for the benefit of all users". 
and urged the Member States to 
"ensure the consistent and effective transposition of the ... package within the 
agreed time scales". 
The importance of the 1 January 1998 deadline was reinforced by the conclusion of the 
agreement in the World Trade Organisation on basic telecommunications services on 15 
February 1997. Under the agreement, GATS general obligations will apply to the supply of all 
public and private telecommunications services. The Community's commitment to open its 
télécoms market in most EC Member States by 1 January 1998 will therefore be subject to 
WTO dispute settlement rules and procedures, including telecoms-specific disciplines. 
This Communication reviews briefly the current status of the legislation involved and the 
progress made to date in implementing it, assesses some of the problems remaining to be 
surmounted, and, finally, indicates how the Commission intends to continue its efforts to 
ensure full implementation by 1 January 1998. 
1 Council Resolution of 21 November 1996 on new policy priorities regarding the information society, OJ No C 
376, 12.12.1996, p. 1 
This Communication deals exclusively with the state of implementation of EC legislation on 
telecommunications liberalisation and regulatory disciplines by the EC Members States. It 
does not deal with the implementation of the commitments made by the EC and its Member 
States in the framework of WTO. 
2. The regulatory package 
The Community regulatory framework has evolved out of three basic principles, first set out 
in the 1987 Green Paper on the development of a common market for telecommunications 
services and equipment. These are: 
(a) Liberalisation of areas under monopoly 
The supply of terminal equipment was liberalised in 1988, followed by the supply of value-
added services, data communications and voice and data services for corporate networks and 
closed user groups in 1990 ("Services Directive"2). The process was completed by the 
adoption of four directives3 amending the latter measure, liberalising 
the provision of satellite services and equipment ("Satellite Directive); 
the use of cable TV networks for the provision of liberalised services ("Cable 
Directive"); 
the provision of mobile communications services and infrastructure ("Mobile 
Directive"); 
the provision of voice telephony and infrastructure ("Full Competition Directive"). 
The latter directive leaves open the possibility of additional implementation periods for full 
liberalisation of up to five years for Member States with less-developed networks or up to two 
years for those with small networks, provided they are needed to achieve the necessary 
structural adjustments. 
(b) Harmonisation of the European market 
The harmonisation legislation lays down a body of rules for the creation of a European market 
based on common principles for access to public telecommunications networks and services 
2 Commission Directive 90/388/EEC of 28 June 1990 on competition in the markets for telecommunications 
services, OJ No 192, 24.7.1990, p. 10. 
3 Commission Directive 94/46/EC of 13 October 1994 with regard to satellite communications, OJ No L 268, 
19.10.1994, p. 15; Commission Directive 95/51/EC of 18 October 1995 with regard to the abolition of 
restrictions on the use of cable television networks for the provision of already liberalised 
telecommunications services, OJ No L 256, 26.10.1995, p. 49; Commission Directive 96/2/EC of 16 
January 1996 witif regard to mobile and personal communications, OJ No 20, 26.1.1996, p. 59; Commission 
Directive 96/19/EC of 13 March 1996 with regard to the implementation of full competition in 
telecommunications markets, OJ No L 74, 22.3.1996, p. 13. 
("open network provision" - "ONP"), a common regulatory environment and harmonised 
standards for services and technologies. 
A framework for access, laying down rules for technical interfaces, tariffing principles and 
usage conditions, was adopted in 1990 ("ONP Framework Directive"). In 1992, a Council 
Directive was adopted concerning the harmonised provision of leased lines. The 1995 Voice 
Telephony Directive extends the rules on access and use, in particular to the fixed public 
telephone network and the voice telephony service, and thereby defines the basic elements of 
a universal service. Proposals have been tabled to amend, first, the Framework Directive to 
include in particular a requirement concerning the independence of national regulatory 
authorities, and second, the Leased Lines and Voice Telephony Directives to adjust them to a 
liberalised environment. The adaptation of the Leased Lines and Framework Directives is 
expected to be agreed in mid 1997; a Common Position on the adaptation of the Voice 
Telephony Directive was agreed by the Council in March 1997. 
The final text has been agreed of an Interconnection Directive, which lays down rules 
governing access for new entrants to existing telecommunications networks for the provision 
of public telecommunications services, on the basis of ONP principles. A Licensing Directive 
adopted on 10 April 1997 provides for a Community licensing framework based on a 'light' 
regulatory approach designed to encourage the entry of service providers and operators. A 
decision concerning a licensing system for satellite-based Personal Communications Systems 
using harmonised licensing conditions has also been adopted. A conciliation will shortly be 
initiated on a directive on data protection and privacy, laying down principles, on the basis of 
common rules and agreed standards, governing the confidentiality of communications over 
public networks or involving the use of publicly available services. 
Three directives were adopted between 1987 and 1991 on the reservation of frequency band 
for the provision of GSM and DECT (Digital Cordless Telephone) services and of channels 
for ERMES (European Radio Messaging System) services. 
As regards terminal equipment, a directive was adopted in 1991 on the mutual recognition of 
conformity with Community essential requirements, and amended in 1993. These rules were 
also extended to satellite earth station equipment in 1993. A replacement directive based on 
self-declaration of conformity with non-mandatory standards will be proposed before the end 
of the second quarter of this year. 
(c) Application of competition rules 
In 1991 the Commission published guidelines on the full application of EC competition rules 
(Articles 85, 86, and the Merger Regulation) to the emerging liberalised Community 
telecommunications market. In addition the Commission issued in 1996 a notice on the 
application of the competition rules to access to telecommunications networks. 
Despite the fact that the liberalisation and harmonisation directives are based on different 
Treaty provisions, Articles 90 and 100a respectively, it should be clear that market opening 
and Community regulatory reform are two aspects of the same process. It is therefore 
inevitable that there will be a very tight interlinkage between the directives adopted under 
each of these legal bases. 
Annex I gives an overview of the competition and harmonisation legislation, including 
the main elements remaining to be adopted, and sets out the principal provisions of 
each, including key indicators, with deadlines for implementation. 
3. The Commission's approach 
The adoption and implementation of the telecommunications regulatory package have 
presented, and continue to present, considerable challenges. The Commission has, therefore, 
taken great care to employ an approach which is flexible but which maintains as its sole 
objective the effective implementation of a body of uniform liberalisation and harmonisation 
rules throughout the Union. It has, in consequence, and subject to the constraints on the 
resources available, attempted a 'twin-track' approach to ensuring compliance using 
informal channels to support the Member States' efforts to implement, involving bi­
lateral meetings (see below), bilateral contacts in committees (ACTE, ONP) and 
national capitals, and a series of workshops/conferences, 
backed up if necessary by rapid recourse to 
the formal procedures laid down in the Treaty (Article 169 - infringement proceed­
ings, and Article 171 - enforcement of Court of Justice judgements). 
This approach has been endorsed inter alia by the High Level Group of national regulators 
meeting on 25 October 1996. 
As far as informal measures are concerned, the Commission's services have in particular 
carried out a programme of bilateral meetings with the authorities in each of the Member 
States responsible for the transposition of the legislation into national law. In some cases the 
National Regulatory Authority or ministerial department constituting the embryo regulator has 
been involved. The object of these meetings was, first, to assist Member States in the 
implementation process; second, to carry out an assessment of the state of implementation 
of the regulatory package; and third, to examine the prospects for full implementation by 1 
January 1998. 
4. State of implementation 
In arriving at an assessment of the state of implementation, the Commission has taken into 
account a number of factors: 
(i) Member States with less-developed networks or very small networks have requested 
additional implementation periods for certain of the deadlines laid down in the Mobile and 
Full Competition Directives. The Commission has decided to grant additional implementation 
periods to Ireland, Luxembourg and Portugal. Decisions regarding Greece and Spain are 
pending. These derogations relate only to certain provisions of the competition directives, 
however, and are without prejudice to the obligation on the part of the Member States 
concerned to implement on time all other provisions of the regulatory package. 
(ii) The first priority for the Commission is to ensure the full and correct transposition of 
the legislation into national law. Given that a number of the deadlines for transposition and 
notification to the Commission under the package have not yet passed, the process of 
monitoring this process will continue at least until the deadlines for implementation laid down 
in the directives, which in most cases is the end of 1997, and beyond for those Member States 
granted additional implementation periods. 
* 
(iii) Full and effective implementation requires, moreover, an effort on the part of the 
Member States to ensure that the measures transposed into law are correctly applied. 
Monitoring of full implementation calls for a corresponding judgement on the part of the 
Commission as to whether the measures concerned have had the desired effect on the 
operation of the market. For.example, the Interconnection Directive will require cost-
orientated interconnection rates, which can be regarded as a key element on the opening up of 
the market. The Full Competition Directive, in accordance with the logic of the liberalisation 
process, requires that tariff rebalancing be carried out by 1 January 1998 to remove the 
distortions previously set up by the cross-subsidisation of certain areas of activity by others. 
Pending the adoption of the whole package, the Commission has begun testing the state of the 
market against these and other key indicators. Work on this aspect will naturally increase 
in importance as 1 January 1998 approaches, and beyond. 
(iv) The Commission has identified a series of regulatory issues such as carrier pre­
selection, and carrier selection (see in particular the Communication on Numbering4), 
unbundled access to the local loop and number portability. National measures addressing 
these and similar matters are evidence of the carrying forward of the liberalisation and 
harmonisation processes in advance of any Community initiatives. 
The Commission is currently assessing, in the light of these factors, the legislation and 
draft legislation communicated to it by the Member States; further verification will be 
necessary. On this basis, the Commission's assessment of the current state of 
implementation of the framework and the prospects for 1 January 1998 is as follows. A 
breakdown of the Commission's view of Member States' performance as measured 
against the transposition of certain key indicators is given at Annex II. A country-by-
country analysis is given in Annex III. 
As far as the objectives of the directives are concerned, the Commission's view is that there is 
a full commitment on the part of all of the Member States to give effect to the principles laid 
down in the package, and indeed, a considerable degree of progress appears to have been 
made throughout the Community in translating that commitment into legislative action. 
4 COM 97/203. 
As far as the transposition of the package into national law is concerned, the Member 
States can in the Commission's view be divided into the following broad categories: 
those (Denmark, Finland, Sweden, UK) which have introduced a wide measure 
of liberalisation and harmonisation. Apart from minor points remaining to be clarified and in 
certain cases the need for formal transposition of particular aspects of the directives remaining 
to be adopted, these countries can be regarded as having transposed virtually the entire 
package and, in all four cases, to have taken account of some of the additional regulatory 
issues referred to above; 
those (France, Germany, The Netherlands) where wide-ranging measures have 
recently been, or are in the process of being, adoptee}, and where transposition of the package 
can be expected by end 1997. In addition, Germany and France have taken account in their 
legislation of certain of the additional regulatory issues; 
those (Austria, Ireland, Italy, Luxembourg) where, subject to the derogations 
referred to above for Luxembourg and Ireland, significant steps to transpose have been taken. 
In the case of these countries, the main principles of the package will have been transposed, 
but the national legislative timetable is tight, and considerable efforts will be required by these 
Member States to enable the adoption of all the secondary legislation necessary to ensure 
complete transposition by end 1997; 
those where transposition is less advanced for other reasons (Belgium, Greece, 
Portugal and Spain). 
To be taken into account are those where full liberalisation is likely to be deferred as a result 
of circumstances of the kind for which additional implementation periods pursuant to 
Directives 96/2/EC and 96/19/EC have been requested (Greece, Ireland, Luxembourg, 
Portugal and Spain having submitted their request, the Commission has so far granted 
derogations to Ireland, Luxembourg and Portugal). 
This assessment together with that in the annexes is of necessity a synthesis of widely 
diverging factors and conditions in the Member States and of starting points in the 
liberalisation process. 
5. Future action 
During the period leading up to 1 January 1998, the Commission will continue its efforts to 
ensure full implementation of the regulatory package, on the basis of the twin-track approach 
outlined above, with expedited recourse to infringement proceedings in the event of 
failure to implement in correct and timely fashion: 
Effective application of national transposition measures 
As the transposition process is completed, the Commission will turn its attention to providing 
an "operational" assessment of whether the national rules in place are being applied 
effectively. In order to do so, it will 
monitor the effectiveness of transposition on the basis of the key 
indicators identified in Annex II; 
monitor the extent to which new operators and services are appearing on 
the market; 
invite market players to keep it informed of areas where the rules are not 
being applied correctly. Any substantiated complaints will naturally be 
followed up as appropriate in the context of the infringement procedure; 
monitor the adoption of advanced regulation supplementary to that contained 
in the package. 
Transparency 
The Commission will continue to provide the European Parliament and Council with 
assessments of the ongoing implementation process, and will forward these to the Economic 
and Social Committee. It also proposes to provide information on its web site, to keep a wider 
public informed of progress.. 
Assessment of national licensing schemes 
Under the Full Competition Directive the Member States must notify by 1 January 1997 their 
draft licensing schemes. The Commission is required to take à formal position on these 
schemes before 1 July 1997. 
High Level Meeting of National Regulators and other committees 
The High Level Meeting, the ONP and ACTE Committees and, once set up, the Licensing 
Committee, are also appropriate fora for fostering exchanges of information. 
Bilaterals 
Further such meetings will be held at the initiative of the Commission or Member States. 
Internal Commission measures 
The Commission has taken a number of internal organisational measures to ensure an 
integrated approach, in particular the setting up of a joint team involving the relevant services. 
These measures will if necessary be strengthened in the period leading up to 1 January 1998. 
:;:i&II!t$&*Sll;;:;: 
This annex lists the main provisions of the regulatory package, with the 
deadlines set in the Directives for the communication of the national 
measures adopted, and highlights certain key indicators of progress in 
implementation, the status of which is analysed in Annex II. 
TELECOMMUNICATIONS REGULATORY FRAMEWORK 
MAIN PROVISIONS 
ADOPTED MEASURES 
LIBERALISATION 
Directive 
Services 
90/388/EC 
Satellites 
94/46/EC 
Cable TV 
95/51/EC 
Mobile 
communications 
96/2/EC 
Full competition 
96/19/EC Date of 
Adoption 
28.06.1990 
13.10.1994 
18.10.1995 
16.01.1996 
13.03.1996 Main provisions 
Liberalised provision of value added services and of data and voice 
services to corporate network and closed groups of users 
Liberalised provision of data communications 
Separation between regulatory and operational activities 
Liberalisation of satellite services and terminals 
Liberalisation of the use of Cable TV for the provision of liberalised 
services 
Liberalisation of mobile communications 
All restrictions on direct interconnection wim PSTN abroad and between 
mobile networks to be lifted 
Mobile operators to be allowed to build their own fixed infrastructure and 
to use that of third parties 
Full liberalisation of voice telephony and infrastructure 
Alternative infrastructure can be used for the provision of liberalised 
services 
Member States to co*nœuntcate draft licensing or declaration procedures 
regarding voice telephony and the provision of public télécommunications 
networks 
Member States to decide that a national scheme is necessary to share the 
net cast of providing. Universal Service 
Member States to publish licensing or declaration procedures for voice 
telephony and public telecommunications networks 
Member States to ensure availability of adequate numbers for telecom­
munications services 
Telecommunications organisations (TOs) to publish standard terms and 
conditions for interconnection 
Member States to ensure that tariff rebalancing is completed Deadlines for 
communication 
of measures 
adopted 
31 December 1990 
31 December 1992 
1 July 1991 
August 1995 
1 November 1996 
15 November 1996 
15 November 1996 
15 November 1996 
(operators allowed 
since 15.02.1996) 
1 January 1998 
1 July 1996 
1 January 1997 
1 January 1997 
1 July 1997 
1 July 1997 
1 July 1997 
1 January 1998 
10 
«WWWWWWWWWWW 
HARMONISATION 
Directive 
ONP Framework 
90/387/EEC 
ONP leased lines 
92/44/EEC 
ONP Voice 
Telephony 
95/62/EEC Date of 
Adoption 
28.06.1990 
5.06.1992 
13.12.1995 Main provisions 
Harmonised conditions of access to public networks and services not yet 
opened to competition (harmonisation concerning technical interfaces, 
tariffing principles, usage conditions) 
Provision of minimum set of leased lines 
Member States to make available information on leased lines 
Member States to ensure that offerings continue for a reasonable period of 
time 
Member States to ensure that, when access and usage of leased lines is 
restricted, this is only at ensuring compliance with essential requirements 
Member States to ensure cost orientation and transparency of tariffs 
Member States to ensure that télécoms organisations establish a cost 
accounting system 
NRAs (National Regulatory Authorities) establish procedures to authorise 
TOs to refuse/interrupt the provision of leased lines 
NRAs to ensure that TOs adhere to the principle of non discrimination 
NRAs to establish procedures to authorise télécoms organisations to vary 
tariffs and supply conditions 
Member States to notify its NRAs 
Member State to ensure that the TOs provide a fixed public telephone 
network and a voice telephony service 
TOs to establish a cost accounting system which is suitable for cost 
oriented tariffs 
TOs to respond to user connection request with estimate date 
TOs to respond to reasonable request for interconnection from other TOs 
and mobile operators, and to reasonable user requests for special access 
NRAs to establish procedures to authorise the TOs to refuse/interrupt 
connection 
NRAs to ensure supervision on interconnection agreements 
Right to appeal to NRAs Deadlinesfor 
communication 
of measures 
adopted 
31 December 1990 
5 June 1993 
1 January 1993 
5 June 1993 
5 June 1993 
5 June 1993 
31 December 1993 
5 June 1993 
5 June 1993 
5 June 1993 
13 December 1996 
11 
Directive 
Licensing 
Satellite - PCS 
(Decision) Date of 
adoption 
10.04.1997 
24.03.1997 
(entry into 
force on the 
20th day 
after 
publication) Main provisions 
Conditions and procedure for general authorisation / individual licences to 
be published 
Appeal procedures to be established 
Gênerai authorisations to be used as mush as possible and to include only 
conditions to line with EC law 
Individual licences 
- scape limited; 
- can only include conditions in line with EC law 
No limitation to the number of individual licences except for frequencies 
or for the time necessary to make available sufficient numbers in 
accordance with EC law (see Directive 96/19/EC) 
Fees to cover only the administrative costs (except for scarce resources) 
Authorisation to be granted for new services 
Member States to ensure that any national licensing regime for the 
provision of S-PCS services is "organised in frequency bands" which are 
harmonised by the CEPT 
Member States allowed to attach to authorisations the same conditions as 
those defined by the Licensing Directive 
Member States to support a one-stop-shopping procedure for licensing 
Member States to co-ordinate their authorisation procedures in some case Deadlinesfor 
communication 
of measures 
adopted 
31 December 1997 
FREQUENCIES 
Directive 
GSM 
87/372/EEC 
ERMES 
90/544/EEC 
DECT 
91/287/EEC Date of 
Adoption 
25.06.1987 
9.10.1990 
3.06.1991 Main provisions 
Reservation of frequency band for the provision of the service 
Reservation of channels for the provision of the service 
Reservation of frequency band for the provision of the service Deadlinesfor 
communication 
of measures 
adopted 
1 January 1991 
31 December 1992 
1 January 1992 
12 
TMEcoMmmcATiam TERMINAI SQu&mNT 
Directive 
Terminal 
equipment 
91/263/EEC 
as amended by 
93/68/EEC 
Satellite earth 
station 
equipment 
93/97/EEC Date of 
Adoption 
29.04.1991 
29.10.1993 Main provisions 
Mutual recognition of conformity regarding terminal equipment intended 
for connection to public telecommunications networks 
EC type approval procedures based on CTRs (binding) and harmonised 
standards (voluntary) 
CE marking 
Extension of the same rules to satellite earth station equipment Deadlinesfor 
communication 
of measures 
adopted 
6 November 1992 
1 May 1995 
EUROPEANWIDBNUMBERS 
Decision 
Emergency call 
number (112) 
91/396/EEC 
International 
access code 
92/264/EEC Date of 
Adoption 
29.07.1991 
11.05.1992 Main provisions 
Introduction of a single European emergency call number (112) 
Introduction of a standard international telephone access code in the 
Community Deadlinesfor 
communication 
of measures 
adopted 
31 December 1992 
31 December 1992 
13 
FUTURE MEASURES 
HARMONISATION 
Directive 
Interconnection 
Amendment of 
Directives ONP 
framework and 
ONP leased lines Current 
status 
Joint text 
approved by 
the 
Conciliation 
Committee on 
20.03.1997 
Common 
Position: 
12.09.1996 
Conciliation 
procedure to 
start formally 
by end 
May/early 
June Main provisions 
All restrictions on interconnection between organisations authorised to 
provide public telecommunication networks and publicly available 
telecommunication services to be lifted 
Organisations having a significant market power: 
* to meet all reasonable request for access to the network 
- to maintain separated and transparent cost accounting systems* and to 
offer cost-oriented tariffs 
- to publish an adequate reference interconnection o£fer 
Dispute resolution procedures to be put in place 
NRAs to ensure ootHàiscrimination and to inspect «U roterconnection 
agreements m their entirety 
NRAs to; . 
- ensure adequate availability of numbers; 
- control/publish numbering plans; 
- ensure .numbering portability between networks in all major centres of 
population ï?y \ January 2#33 
Member States to establish a mechanism to share; the net cost of 
universal service (if universal services obligations -GSOs- represent an 
unfair burden) 
Costing of USOs to be subject to transparency and accounting 
requirements 
(Amendment to existing directives to adjust them to a competitive 
environment) 
Independence of NRAs: 
' NRAs to be iegaliy distinct from and functionally independent of all 
organisations operating in télécoms markets; 
- effective structural separation to be ensured in case Member States 
retain ownership or control of organisation providing: network or 
services 
NRAs may decide not to apply transparency and cqjsfrprjenfatip, n: 
- to organisations which do not have sipifirant market power 
- where sufficient competition is in place in. the relevant market 
Member States to encourages the provision of additional types of leased 
lines Adoption 
expected 
end of second 
quarter 1997 
end of second 
quarter 1997 
14 
Directive 
Amendment of 
Directive ONP 
Voice Telephony 
Data protection 
and privacy for 
digital services Current 
status 
political 
agreement 
reached on 
6.03.1997 
Common 
Position: 
12.09.1996 
Conciliation 
procedure to 
start formally 
by end May Main provisions 
Member States to ensure afaftahftfttf ^ affôrdàbi|ity ofc 
- fixed tetepaone network connection and access to telephone services 
- directories services 
- public pay phones 
+ operator assistance 
- emergency services 
Member States to ensure that operators (including mobile) provide users 
with contracts and publish or give access to information 
Member States to promote quality of service, and availability of 
itemised billing, tone dialling and selective call barring 
Member States to ensure that telecommunication organisations having a 
significant market power do not deny negotiations for special network 
access 
Requirement for cost accounting to be imposed only on some telecom­
munications organisations 
Consultative mechanism with users to be in place 
Member State to ensure security of services and network and 
confidentiality of communications 
Operators providing a telecommunications services to take appropriate 
measures to safeguard securirv of its services and right to privacy of its 
customers Adoptioh/CP 
expected 
common position 
expected by end 
of second quarter 
1997 
end of second 
quarter 1997 
15 
This annex analyses the Commission's view of the status of certain key 
indicators of progress by the Member States in transposing the regulatory 
package as a whole. 
Nothing in the Annex should be construed as representing a definitive legal 
assessment by the Commission of conformity with Community law. 
16 
ilil PACKAGE - STATES OF KEY ÏŒBÏCATOR$ 
Existing directives 
Alternative infrastructure for 
liberalised services by 1.7.96 
(by 15.11.96 for mobile 
infrastructure) 
(96/2/EC ; 96/19/EC) 
Direct interconnection of 
mobile networks with mobile 
and PSTN in other MSs by 
15.11.96 
(96/2/EC) 
Full competition by 1.1.98 
(measures notified by 11.1.97) 
(96/19/EC) 
• voice telephony 
• infrastructure for voice 
services 
• international services 
• infrastructure for 
international services 
Availability of numbers by 
1.7.97 
- fixed 
- mobile 
(96/19/EC; I/C dir.) 
Funding mechanism for USO, if 
any, notified to the Commission 
by 1.7.97 
(96/19/EC; I/C dir.) 
Terms and conditions for 
interconnection published by 
télécoms organisations by 1.7.97 
(96/19/EC; L/C dir.) 
Cost accounting system for 
pricing interconnection in place 
(96/19/EC; I/C dir.) 
Tariff rebalancing 
-by 1.1.98 
- if not, plans for phasing out 
(96/19/EC) B 
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procedures notified to the 
Commission by 1.1.97 (96/19/EC) Y Y d d D D => => D • Y Y 
Forthcoming directives 
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(new leased lines dir.) 
with powers on: 
-I/C 
- licensing 
-numbers 
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- dispute resolution 
(Licensing dir. ;I/C dir. ; new leased 
lines dir.; new voice telephony dir) 
Universal service obligations 
defined 
Affordability defined 
(I/C dir.;new voice telephony dir.) 
Funding mechanism for USO, if 
any, in place 
(I/C dir.) 
Cost accounting system verified 
and approved by NRA 
- for I/C 
- for leased lines 
- for voice telephony 
(I/C dir.; new leased lines dir.; new 
voice telephony dir) 
Tariff principles 
- for I/C 
- for leased lines 
- for voice telephony 
(I/C dir. ; new leased lines dir. ; new 
voice telephony dir) 
Procedures for allocating 
numbers 
(I/C dir.) 
Provisions on licensing 
(Licensing dir.) B 
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• = some provisions in place D = derogation granted 
=> = draft measures communicated to the Commission d = derogation requested 
18 
Legenda 
96/2/EC: Commission Directive amending Directive 90/388/EC with regard to personal and mobile communications. 
96/19/EC: Commission Directive amending Directive 90/388/EC with regard to the implementation of full competition in 
telecommunications markets. 
Licensing directive: EP and Council Directive on a common framework for general authorisation and individual licences in the field of 
telecommunications services. 
I/C directive: proposed EP and Council Directive on Interconnection in telecommunications with regard to ensuring universal service 
and interoperability through application of the principles of open network provision (ONP). 
New leased lines directive: proposed EP and Council Directive amending Council Directives 90/387/EEC and 92/44/EEC for the 
purpose of adaptation to a competitive environment in telecommunications. 
New voice telephony directive: proposed EP and Council Directive on the application of ONP to voice telephony and on universal 
service for telecommunications in a competitive environment (replacing directive 95/62/EEC). 
19 
This annex gives a short assessment for each Member State of the 
Commission's view of the state of transposition of the regulatory 
framework. 
Nothing in the Annex should be construed as representing a definitive legal 
assessment by the Commission of conformity with Community law. 
20 
BELGIUM 
Transposition 
The current framework is based on the Law of 21 March 1991, as amended by the Law of 
20 December 1995. Three Royal Decrees were adopted on 28 October 1996, under which 
a system for authorising alternative infrastructures for the provision of non-reserved 
services is established. The general principles for the provision of universal service are 
also laid down. Further Royal Decrees are expected in the coming months. 
Outstanding matters 
The regulatory framework is largely incomplete (with, as stated above, only three of the 
39 Royal Decrees envisaged having been adopted so far). Essential further secondary 
legislation is needed to complete the reform of the regulatory framework 
(interconnection, universal service financing scheme, new numbering plan). On 
interconnection, in particular, no implementing measure is available nor is it possible to 
foresee whether the incumbent will publish its interconnection conditions by 1 July 1997. 
The Commission also considers the transposition of the existing Leased Lines Directive 
to be incomplete. 
Some concern exists regarding Belgium's approach to the regime for new infrastructure 
(only existing alternative infrastructure is liberalised and can be licensed). 
Another outstanding problem concerns the National Regulatory Authority (IBPT/BIPT), 
the legislation for which would not appear to endow it with the powers and independence 
necessary to carry out the range of tasks laid down in the package. 
DENMARK 
Transposition 
Denmark began work relatively early on restructuring the market and the 
corresponding legal framework, with basic legislation being adopted in 1990. The main 
liberalisation framework is in place although some provisions will not come into force 
before 1 January 1998. The body of harmonisation legislation also appears to have 
been transposed. An independent regulatory authority (Telestyrelsen) has been 
established, the rules governing which state explicitly the NRA's independence of both 
operators and the Ministry. 
Outstanding matters 
A detailed Interconnection Bill was released for public comment in April 1997. Apart 
from the fact that the Commission has been consulted on the interpretation of a 
particular aspect of the Interconnection Directive, there would appear to be no 
difficulties. 
Other regulation 
Carrier selection for national long-distance and international calls is implemented. 
21 
GERMANY 
Transposition 
A Law on Telecommunications (TKG) was adopted in July 1996, coming partly into 
force on 1 August 1996. This provides a broad framework for the transposition of the 
whole telecommunications package. From 1 January 1998 onwards, the voice 
telephony market will be liberalised, removing the remaining exclusive rights of 
Deutsche Telekom AG. The TKG establishes a national regulatory authority 
(Regulierungsbehorde) from 1 January 1998 which in formal terms is independent in 
relation to the telecommunications operators and also to a certain extent to the Ministry 
for Economic Affairs. Possible problems in regards of the independence of the NRA 
may be caused through the influence of the advisory council, which in certain areas has 
certain rights of co-decision. Planned licence fees of up to DM 40 million do not 
reflect the obligation in the Licensing Directive of cost-orientation, and could have the 
effect of deterring new entrants. 
Outstanding matters 
The secondary legislation necessary to implement a number of important areas of the 
package have not yet been adopted (e.g. ordinances concerning fees for licences and 
numbers, numbering and frequency plans). However, these acts are in preparation and 
a detailed timetable for adoption laid down. 
Other regulation 
The obligation to provide unbundled access to the local loop is laid down in the decree 
on access to networks (NetzzugangsVO), although doubts remain as to the technical 
feasibility of such access. 
GREECE 
Transposition 
In October 1994, Greece adopted a new telecommunications law (Law n° 2246/94) 
establishing the National Telecommunications Committee ("EET") as the regulatory 
authority. EET began to operate in,July 1995. The Presidential Decree defining EET's 
internal rules has not yet been adopted. On 6 February 1997 the Law was amended to 
bring into general use a declaration procedure for the provision of already liberalised 
services. A licence is still required in cases where there is a need for access to radio 
frequencies, numbers or satellites. Certain of the provisions are not, however, in 
conformity with the Licensing Directive. 
The Greek Authorities requested additional implementation periods on the basis of 
Directive 96/19/EC, and in particular until 1 January 2003 (instead of 1 January 1998) as 
regards the abolition of the exclusive rights currently granted to OTE for the provision of 
22 
voice telephony and the underlying network infrastructure; and until 1 July 2001 (instead 
of 1 July 1996) for the liberalisation of alternative infrastructure. The Commission 
Decision is expected for the end of May 1997. 
Outstanding matters 
Despite recent initiatives by the Greek Government, Greece has accumulated 
considerable delay in transposing. In particular, Directives 93/97/EEC, 94/46/EEC, 
95/51/EC, 95/47/EC, 95/62/EC and 96/2/EC are not yet transposed in Greece. The 
Commission also regards the transposition of the Leased Lines Directive as being 
incomplete. In addition, the granting of a third mobile licence to OTE raises problems 
concerning its conformity with Community legislation (in particular as regards the 
procedure). A time-table has been transmitted to the Commission on the implementation 
of these directives. 
As far as the Commission is aware, there are no drafts on the implementation of the 
forthcoming directives. 
SPAIN 
Transposition 
Basic provisions are set up in the 1987 Law on Telecommunications as amended in 1992. 
By Royal Law-Decree 6/1996 adopted on 7 June 1996, the Spanish Government created 
a new regulatory body, the structure and functions of which were laid down in Royal 
Decree 1994/1996. A second operator was created by Royal Law Decree 6/1996 and a 
licence granted. A provision is included in the Budget Law of 1997 concerning the 
liberalisation of the provision of telecommunications services using alternative 
infrastructures from 1 January 1997. Newly-established networks are not yet liberalised. 
The Spanish Authorities are drafting a new basic bill (to replace the 1987 Law). The 
adoption of the bill is expected by the end of 1997.. 
Outstanding matters 
A considerable quantity of the package remains to be transposed, in particular the ONP 
Voice Telephony Directive. In addition, the Spanish Government requested derogations 
on the basis of Community Directive 96/19/EC. Additional periods were requested until 
1 January 1998 (instead of 1 January 1997) as regards notification of licensing schemes 
for the provision of voice telephony and the establishment of public telecommunications 
networks; until 1 August 1998 (instead of 1 July 1997) as regards publication and the 
entry into force of declaration and licensing procedures for the provision of voice 
telephony and the establishment of public telecommunications networks; and until 30 
November 1998 (instead of 1 July 1997) to ensure that adequate numbers are available 
for all operators of telecommunications services 
23 
FRANCE 
Transposition 
In July 1996 the French Parliament adopted a new framework law ("Loi de régulation des 
télécommunications", N° 96-659). The main objective of the new legislation, which is to 
be supplemented by a series of Decrees, is to liberalise the telecommunications market 
before 1 January 1998. The Law establishes a new regulatory body, the ART ("Autorité 
Réglementaire des Télécommunications") and secures a minimum level of independence 
for ART's board members. ART is charged with the implementation of legislation and 
the control of the effective application of regulation. However, in spite of the transfer of a 
number of significant competences to the new body, key regulatory powers remain with 
the Telecommunications Minister (granting of individual licences, establishment of 
tariffs for universal service). 
Outstanding matters 
The Law is generally in conformity with the Community regulatory framework. However 
some aspects are clearly not in line, in particular the obligation on licensees to spend at 
least 5% of their annual turnover on research and development. Most of the individual 
decrees implementing the most important provisions of the Law were adopted recently; 
their conformity is under examination, although the drafts previously submitted appear 
largely to implement the framework. 
Other regulation 
France has introduced a system of carrier selection based on digit codes. 
IRELAND 
Transposition 
A National Regulatory Authority (the post of Director of Telecommunications) was 
formally established in December 1996, but is not yet operational. Ireland has 
implemented the Frequencies Directives as well as the main principles of the Framework 
Directive and the Leased Lines Directive. 
Ireland requested additional implementation periods for certain obligations under 
Directive 96/2/EC and 96/19/EC, and the Commission decided on 22 November 1996 to 
grant certain of them. These were: 1) for the liberalisation of voice telephony and 
underlying networks: until 1 January 2000, 2) for the liberalisation of the provision of 
already liberalised services on own/alternative networks: until 1 July 1997 and 3) for 
direct international interconnection of mobile networks with other networks (mobile or 
fixed): until 1 January 1999. 
No drafts are available of legislation transposing the forthcoming Directives. 
Outstanding matters 
24 
The ONP Voice Telephony Directive has not been transposed, although legislation is 
currently under preparation, but without a set date for adoption. For the Terminal 
Directives, there are still no formal notifications (although the Irish authorities have 
notified informally transposing measures for the Terminal Directive (Directive 91/263) 
and its amending directive 93/68). 
ITALY 
Transposition 
Italy is currently engaged in an effort to remove its past implementational deficit and to 
bring its legislation in line with Community law. Two Bills have been submitted to the 
Parliament to review thoroughly the regulatory framework and to establish a National 
Regulatory Authority for the telecommunications and TV sectors. In parallel, the Italian 
government is in the process of adopting a ministerial regulation, based on a mandate by 
the Parliament, with the aim of transposing those directives which are not yet 
implemented (Cable TV, Mobile Communications, Full Competition, ONP Voice 
Telephony), together with forthcoming Community legislation. 
The draft regulation is expected to cover the basic principles of the "1998 package", 
including interconnection, universal service, licensing, data protection. 
Outstanding matters 
The Bill on the new Authority is expected to be adopted by end May; adoption of the 
draft regulation is envisaged in June 1997. However, a number of detailed implementing 
measures will remain to be enacted afterwards (including licensing procedures, universal 
service scheme) to render the new framework operational. There is also some concern 
regarding the licensing of the third mobile operator (DCS 1800) and the allocation of 
frequency (extension band) to GSM services pursuant to Directive 87/372/EEC, although 
solutions appear to be in view following adoption of Decree-Law n. 115 on 30 April 
1997. 
LUXEMBOURG 
Transposition 
The Frequencies Directives (Directives 87/372, 90/544 and 91/287) have been 
implemented. Further progress in implementation has been made with the adoption of a 
new framework law on 21 March 1997, which provides a basis for the transposition of 
the package of EC Directives. In addition, two regulations have been adopted on 
terminals (including satellite earth station equipment) and mobile services. 
Outstanding matters 
The Luxembourg authorities have been granted additional implementation periods for 
certain obligations under Directive 96/19/EC: 1) for the abolition of exclusive rights for 
the provision of voice telephony and the underlying network structure, until 1 July 1998, 
25 
and 2) for the lifting of restrictions on the provision of already liberalised 
telecommunications services on own and alternative infrastructure, until 1 July 1997. 
Regulations are being drafted on licences, universal^service and spectrum management 
and fees. The Commission's assessment is that a small number of key issues have not 
been addressed in the new law. Concern also exists over the use of tendering in the issue 
of licences, and possible lack of powers on the part of the NRA to settle interconnection 
disputes. 
THE NETHERLANDS 
Transposition 
The Netherlands is in the process of reforming thoroughly the current regulatory 
framework, based on the 1988 "Telecommunications Act" n. 520 and on the June 1996 
"Interim Law", which was adopted to establish a new licensing regime for 
telecommunications infrastructure. A new Telecommunications Law has been drafted 
and is expected to be adopted before end 1997. The new Law should transpose the basic 
principles of existing and forthcoming Community legislation and introduce a liberal 
approach, by removing all limitations to market entry (no licensing requirement) and 
simplifying access to resources. A new National Numbering Plan has been recently 
approved by the Minister and will be updated regularly. Two national infrastructure 
licences have been granted. 
Outstanding matters 
Secondary legislation is in the pipeline to implement specific aspects such as 
Interconnection and Universal service, and is due to be adopted by end 1997. Another 
Bill is currently under discussion in Parliament concerning establishment of an 
independent NRA. The NRA will be created by detaching a division within the Ministry 
and could be in place before summer. The new law will also define the divisions of tasks 
between the NRA and the Ministry. Moreover, a law regarding the granting of further 
mobile licences which could be implemented via auction procedures has been 
communicated to the Commission for examination. Otherwise, the only outstanding 
matter would appear to be certain minor problems relating to the Leased Lines Directive. 
AUSTRIA 
Transposition 
A number of EC issues were covered in the 1994 Telecommunications Act and in 
secondary legislation on services as well as terminal equipment. It is intended to 
complete formal transposition with the adoption of the draft Telekommunikationsgesetz 
(TKG), which provides a framework covering the outstanding matters, including those 
contained in the forthcoming directives, and which is now out for consultation. 
Outstanding matters 
26 
The structure of the future NRA is excluded from the TKG and will be the subject of 
future legislation, although its powers will be laid down in the new law. A current 
concern is ensuring that the NRA is endowed with resources sufficient for its tasks. 
Allocation of frequencies for DCS 1800 is problematic. Although the transposition of 
the Voice Telephony Directive appears to address most of the issues in the Directive, a 
review will be needed on the basis of the legislation adopted under the TKG. As far as 
the Directive on satellite earth station equipment is concerned, valid transposition 
would appear to require an explicit legal act referring to the Directive. 
Other regulation 
Issues such as carrier selection are in the process of evolving. As regards number 
portability, it is intended to make available a suitable block of numbers in the near future. 
PORTUGAL 
Transposition 
The "Basic Law on the Establishment, Management and Exploitation of 
Telecommunications Infrastructures and Services" (Law 88/89, adopted on 11 September 
1989), remains the main legal instrument covering telecommunications. Decree Law 
283/89 establishes the Institute for Communications of Portugal ("ICP") as the National 
Regulatory Authority. The ICP began operations in November 1989. 
Portugal requested additional implementation periods on the basis of Commission 
Directives 96/2/EEC and 96/19/EC. By Decision adopted on 12 February 1997, Portugal 
was authorised to postpone until V January 1999 the lifting of restrictions on the direct 
interconnection of mobile telecommunications networks with foreign networks; until 1 
January 2000 for the abolition of the exclusive rights currently granted to Portugal 
Telecom as regards the provision of voice telephony and the establishment and provision 
of public telecommunications networks; and until 1 July 1997 for the lifting of 
restrictions on the provision of already liberalised telecommunications services on 
alternative infrastructures. 
Outstanding matters 
The Portuguese Authorities notified to the Commission Decree-Law 198/94 and 
Ministerial Decision ("portaria") n° 1318/95 as transposition measures for the Leased 
Lines Directive (92/44/EEC ). The Commission considers that this transposition is 
incomplete. By Ministerial Decision ("portaria") n°477/96, Portugal formally liberalised 
the provision of voice telephony services to closed user groups. The Commission is of 
the view that the licensing requirements imposed by this Decision are not in conformity 
with Community law. 
FINLAND 
Transposition 
27 
Finnish legislation appears to comply broadly with existing EC Directives. A completely 
new Telecommunications Act has been proposed which is intended to replace the 
Telecommunications Act of 1987 in its amended version. The new Act will be adopted 
soon and is planned to enter into force in June 1997. The complete overhaul of the law 
was considered necessary in order inter alia to meet the EU's harmonisation 
requirements. The law also brings Finnish legislation in line with the EU legislation 
remaining to be adopted. The draft law takes into account in particular the main 
principles of the Interconnection Directive. 
Outstanding matters 
Most outstanding problems appear to be resolved by the new draft law, and the 
subsequent decisions/regulations that will be issued under it. 
Other regulation 
Finnish legislation has addressed certain regulatory issues in advance of EU legislation. 
In particular, automatic operator pre-selection has been introduced, as well as selection 
on a call-by-call basis as referred to in the Communication of the Commission on 
Numbering. 
SWEDEN 
Transposition 
All the EC Directives currently in force have been transposed on time. The legislation 
appears to be broadly in conformity with the Directives, and the key issues have in the 
main been transposed correctly, subject to verification of certain details. Many of these 
are settled in draft amendments to the Telecommunications Act and secondary 
legislation currently before the Swedish Parliament. The draft also takes into account the 
principles of the recently-finalised Directives, in particular the Interconnection and 
Licensing Directives. 
Outstanding matters 
An outstanding problem concerns the re-allocation of frequencies to enable GSM to 
occupy the whole band allocated to it in accordance with commercial demand as required 
in the GSM frequencies Directive 87/372/EEC. A solution to the problem is expected in 
the near future. 
Other regulation 
Work is ongoing on a numbering policy which would introduce number portability and a 
competitively neutral way of gaining access to operators. The new draft law introduces 
accounting separation for the local loop. 
UNITED KINGDOM 
Transposition 
28 
The United Kingdom has transposed a large majority of the existing EC Directives. The 
United Kingdom is also well ahead with regard to transposition of forthcoming 
Directives. The main principles of the forthcoming Interconnection Directive are already 
in place in BT's licence conditions, even though some further changes appear necessary. 
A Statutory Instrument is expected in the early autumn. The transposition of the other 
forthcoming Directives (the Licensing Directive, the Directive amending the Leased 
Lines Directive and the Framework Directive, and the Directive amending the Voice 
Telephony Directive) appears to require some minor legislative changes, but no major 
problems are expected. 
29 
Outstanding matters 
The UK government has requested and been granted a deferment of certain of its 
obligations under the ONP Leased Lines Directive: 1) for 3 years of the obligation to 
provide a minimum set of leased lines under Article 7.1 as regards BT and Kingston; and 
2) for 5 years for the tariff and cost-accounting obligations under Article 10.1 and 10.2 
as regards Mercury. Furthermore, the UK authorities have not formally notified any 
transposing measures for the Voice Telephony Directive. However, draft regulations 
implementing the Voice Telephony Directive were recently sent for consultation, and the 
intention is that the regulations will be in force in the summer. 
Other regulation 
The UK authorities have often defended "easy access" (i.e. the use of 'smart phones' with 
stored digits) rather than equal access, as proposed in the Communication on Numbering, 
since that represents a balance between encouraging network competition and 
encouraging competition in services. A cost-benefit analysis carried out by OFTEL in 
1994 showed that the additional benefits of dialling parity and presubscription would not 
outweigh the costs of introducing it. The UK authorities also claim that the introduction 
of access to the copper loop (i.e. direct access to each subscriber) would not do anything 
to promote local competition in the UK, and could jeopardise the development of 
competition already under way (alternative infrastructure). 
30 
ISSN 0254-1475 
COM(97) 236 final 
DOCUMENTS 
EN 15 08 
Catalogue number : CB-CO-97-262-EN-C 
ISBN 92-78-20769-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg