15.12.  75 Official  Journal  of the  European  Communities No C 286/23 
1.3. The  Committee  draws  attention  to the  fact 
that,  in many  Member  States,  legislation  may  be 
more  effective  in ensuring  adequate  provision  for the 
welfare  of  animals  during  transportation  and 
emphasizes  that  the  approval  in principle  of the 
provisions  outlined  in the  Convention  should  not 
prejudice  efforts  to improve  intra-Community  and 
national  standards. 
1.4. Furthermore,  the  Committee  sees  a need  for 
the Community  to initiate  action  to improve  the 
provisions  of the  Convention. 
1.5. The  Committee  wishes  to stress  that  the 
liberalization  of trade  in live  animals  should  not 
infringe  or  impede  the  provision  for  animals' 
welfare. 
Done  at Brussels,  24 September  1975. 1.6. The  Committee  believes  that  animals  intended 
for slaughter  should  be killed  as near  as possible  to 
the point  of  production  and  in  an  approved 
slaughter  house. 
2. Specific  observations 
2.1. The  Committee  strongly  supports  Articles  7 
and 9 of the  accession  decision  as a means  of 
harmonizing  and  improving  intra-Community 
standards. 
2.2. The  Committee  requests  that  it be consulted 
on any  further  legislation  concerned  with  animal 
welfare. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  application  of telecommunications  facilities,  and  the  interrelationships 
between  transport  and  telecommunications 
The Opinion  of the Committee  does  not  relate  to any  particular  text. 
A. LEGAL  BASIS  FOR  THE  OPINION 
At its 131st  plenary  session  held  on 25 and  26 June  1975  the  Committee  decided  to 
deliver  an Opinion  on the  abovementioned  subject  on its own  initiative. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 133rd  plenary  session, 
held in Brussels  on 24 and  25 September  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  study  on the  application  of 
telecommunications  facilities  and  the  inter-
relationships  between  transport  and  telecommuni-
cations  which  the  Committee  adopted  at its meeting 
on 26 June  1975  (131st  plenary  session  of 25 and 
26 June  1975); Having  regard  to the fourth  paragraph  of Article  20 
of the Rules  of Procedure; 
Having  regard  to  the  decision  taken  by  the 
Committee  at its plenary  session  on 26 June  1975  to 
deliver  on its own  initiative  an Opinion  based  on the 
study; 
No C 286/24 Official  Journal  of the  European  Communities 15.12.  75 
Having  regard  to the  information  reports  on  the 
financial  resources  for  regional  development  and  on 
regional  aids  which  the  sub-committee  for  Regional 
Policy  adopted  on 14 September  1971  and  19 June 
1972  respectively; 
Having  regard  to the  discussion  at its 133rd  plenary 
session,  held  on 24 and  25 September  1975, 
considering  the  following: 
1. The  Committee's  aim  is  to  make  the 
Commission  and  the  Council  alive  to the  important 
problems  raised  by  telecommunications,  while 
stressing  specific  angles  and  proposing  priority  areas 
for developing  communications. 
2. Telecommunications  will  increasingly  constitute 
a vital  part  of our  society  and  will  play  a crucial  role 
as a catalyst  and  instigator  of economic  and  social 
change. 
3. The  influence  of  telecommunications 
technology  on society,  due  in particular  to its fusion 
with  computer  technology  and  other  technologies 
(microfilms,  films,  video  recording),  lies  essentially  in 
the services  which  it makes  possible. 
4. Teleprocessing  (computer  usage  mediated  by 
the telecommunications)  is of importance  to  an 
immense  range  of sundry  services,  including  means 
of mass  communications.  In  other  words,  the 
anticipated  progress  will  afford  society  important 
instruments  of innovation,  notably  in the  service 
sector  in connection  with  medical  treatment,  goods 
and passenger  transport  safety  as well  as educational 
services  (including  the  services  already  planned  as 
part of continuous  adult  education). 
5. This  era  has  been  described  as that  of the 
'Second  Industrial  Revolution'  because  of the  new 
information-based  technologies.  It is with  the  help  of 
telecommunications  that  the  raw  material  for 
information-based  advancement  can  be made  freely 
and universally  available. 
6. The  telecommunication  area  is one  for  which  a 
common  policy  for  the  Community  has  still  to be 
framed.  This  arises  largely  because  the  rapid  growth and importance  of telecommunications  activities  in 
the economic  sectors  covered  by the  Treaty  of Rome 
have  only  recently  begun  to be recognized  by the 
various  interested  parties.  The  Committee  is of the 
opinion  that  telecommunication  is an  important 
instrument  and  area  of interest  for  the  Community, 
and feels  that  a coherent  common  policy  should  be 
framed  in this  field.  The  Treaty  of Rome  contains  in 
its preamble  and  in Articles  3 and  235  an adequate 
legal  basis  for Community  actions  in this  field. 
7. To  understand  the  social  and  economic 
significance  of  telecommunication  and  its 
interrelationship  with  transport,  the  declining 
relative  cost  of telecommunication  is a significant 
factor.  The  ratio  of the  effectiveness  or capacity  of a 
given  item  of electronics  is doubling  in relation  to 
each  unit  of real  cost  every  three  years  and  is likely 
to continue  to  do  so  for  some  years.  As 
telecommunication  is essentially  based  on electronics 
and is becoming  increasingly  automatic,  it is tending 
to reduce  in cost  relative  to transport, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote  and  11 abstentions: 
I. THE  SIGNIFICANCE  OF TELECOMMUNICATIONS 
1.1. General  aims 
1.1.1.  In  the  Committee's  view,  Community 
policies  should  enable  the  following  objectives  to be 
attained: 
1.1.1.1.  to  ensure  by  a  greater  degree  of 
integration  the  competitivity  of the  EEC,  vis-a-vis  the 
highly  industrialized  non-member  countries; 
1.1.1.2.  to  assist  underprivileged  and  imbalanced 
regions  to  accede  to  the  average  standard  of 
economic  and  social  development  of the EEC; 
1.1.1.3.  to  assist  all individuals  and  groups  within 
the EEC  to attain  the  normal  living  standards  of the 
EEC,  together  with  the  necessary  expansion  of all 
activities  that  this  implies; 
15.12.  75 Official  Journal  of the  European  Communities No C 286/25 
1.1.2.  The  Committee  believes  that  effective 
telecommunications  are essential  for the achievement 
of these  goals. 
1.2. The  social  and  cultural  significance  of telecom-
munications 
1.2.1.  The  Committee  believes  that  European 
society  in the 1980's  must  reflect  the human  face  of 
Europe,  an aim  of the  European  Community  which 
places  the  individual  person  at the  focal  point  of 
concern. 
1.2.2.  The  areas  of social  concern  in which 
telecommunications  will  play  an  important  part 
cover  so many  aspects  of Community  policies  that  it 
will be possible  to indicate  only  a few  of them  here. 
The Committee  believes  that  the  Community  can 
contribute  to the economic  and  social  progress  of the 
rest of the world  by way  of: 
1.2.2.1.  know-how  and  the  growing  volume  of 
information  that  goes  with  it; and 
1.2.2.2.  valuable  basic  social  principles  and 
practices,  together  with  the  implementing  facilities 
these  require. 
1.2.3.  Implementation  of this  policy  will  change 
our way  of life  in society  by providing  individuals, 
groups  and  communities  with  new  resources  which, 
in turn,  will  involve  new  obligations  for  public 
services,  especially  as regards  the dissemination  and 
processing  of data  and  information,  research  and 
development,  cultural  activities,  continuous  basic  and 
advanced  training,  socio-medical  services,  agriculture 
services,  services  for the elderly,  the organization  of 
leisure  activities  and  applications  in the home. 
1.2.4.  In  the face  of the  more  rapid  development 
and change  in the modern  economy,  the Committee 
stresses  the importance  and  implications  of the social 
impact  of the  proper  use  of telecommunications 
technology  for  workers  in all sectors.  Community 
policy  will  be needed  as a matter  of urgency,  in 
particular  for  teaching,  basic  and  advanced 
vocational  training,  the  problems  connected  with 
changes  in job  availability  and  location,  the quality 
and quantity  of jobs  and  retraining  aids. 
1.2.5.  Current  developments  in data  processing 
and in the  harnessing  of telecommunications  in the 
services  of computer  uses  can  be seen  as having 
both  negative  and  positive  aspects.  In particular  the present  Opinion  does  not  deal  with  the  possible 
dangers  to individual  privacy  and  civil  rights  which 
may arise  from  the development  and  integration  of 
telecommunication  and  computer  technologies.  This 
remains,  however,  an area  of great  and  growing 
concern  in the  Community  and  elsewhere.  The 
Committee  invites  the Commission  to ensure  action 
on these  matters,  so  as  to  institute  effective 
safeguards. 
1.3. The  economic  significance  of telecommunications 
1.3.1.  Efficiency  of telecommunications 
1.3.1.1.  Speed  of communication  is an essential 
aspect  of efficiency  in current  industrial  and  business 
activities.  Growing  emphasis  is, therefore,  placed  on 
telecommunications: 
1.3.1.1.1.  as  a means  of increasing  the  speed  of 
operations; 
1.3.1.1.2.  as  a substitute  for  certain  forms  of 
travel; 
1.3.1.1.3.  to  allow  decentralization  of activities. 
1.3.1.2.  Increasing  volumes  of  business 
information  are  being  handled  in machine-readable 
form.  By means  of telecommunications  it is possible 
to share  computing  facilities  amongst  users  at 
different  locations  and  to transmit  data  without  the 
need  for expensive  transcription. 
1.3.2.  Regional  development  and  telecommunications 
1.3.2.1.  Because  they  allow  decentralization, 
telecommunications  facilities  are  an important  part 
of the  infrastructure  which  is a prerequisite  for 
regional  development. 
1.3.2.2.  The  Council  of Ministers,  in recently 
approving  the  Regulations  for  the  Regional 
Development  Fund  (*), acknowledged  the importance 
of investment  in infrastructure  as a prerequisite  for 
industrial  development  and  substantial  loans  have 
already  been  made  by the European  Investment  Bank 
for telecommunications  infrastructure. 
1.3.2.3.  On  a personal  and  social  level,  it seems 
that good  telecommunications  help  to break  down 
(x) OJ No L 73, 21. 3. 1975,  p. 75. 
No C 286/26 Official  Journal  of the  European  Communities 15.12.  75 
the remoteness  of under-developed  or developing 
regions  in that  they  not  only  stimulate  the expansion 
and setting  up  of undertakings,  but  also  induce 
people  to move  and  settle  down  there. 
2. COMPETITIVENESS  OF  THE  EEC 
2.1. There  is a certain  correlation  between  the 
extent  of telecommunications  facilities  (especially 
telephones)  and  the  per  capita  GDP  of countries  in 
many  parts  of the world.  Moreover,  it is illuminating 
to note  that  the  gap  in this  field  between  countries 
whose  GDP  exceeds  the  threshold  of $ 4 000  per 
capita  (USA,  Sweden,  Switzerland,  etc.)  and  the EEC 
Member  States  is in the ratio  of approximately  2 to 
1 as regards  the telephone  and  4 to 1 as regards  data 
terminals. 
2.2. Given  the  importance  of telecommunications 
to industry  and  commerce,  it is clear  that  the costs  of 
telecommunications  facilities  bear  upon  the  prices 
charged  by industry  for its products.  In addition,  the 
effect  of pricing  policies  pursued  in the  post  and 
telecommunications  field  sometimes  inhibits 
consumer  demand,  because  the prices  are objectively 
felt to be partly  unjustified.  In so far as this  is the 
case,  it is clear  that  the  current  telecommunication 
situation  must  have  an  adverse  effect  upon  the 
competitiveness  and  efficiency  of the  European 
Community. 
2.3. Computers  are  assuming  increasing 
significance  in the  life  of Europe.  Data  transmission 
has become  an important  and  integral  aspect  of the 
utilization  of  computers.  It  is  clear  that 
telecommunications  are  of  importance  in  the 
attainment  of those  economic  objectives  which  are 
dependent  upon  the use of computers. 
2.4. There  is no evidence  that  Europe's  present 
message  systems  are  technically  inadequate  as 
compared  with  those  in wealthier  areas.  It is, 
however,  in the  Committee's  opinion  undeniable 
that they  are too expensive. 
2.5. The  disparities  that  exist  between  the  various 
Member  States  as  regards  pricing  induce  the 
Committee  to urge  that  tariffs  for frontier-crossing 
services  be levelled  down  so that  the  unit  price  for 
the foreign  part  of the service  is no longer  a multiple 
of the unit  price  for the domestic  part. 
2.6. Data  transmission  is beset  with  still  further 
difficulties: 2.6.1.  the  costs  of data  transmission  in Europe  are 
at present  considerably  higher  than  in the  USA, 
where  in  addition  the  recent  introduction  of 
domestic  satellites  appears  to allow  further  reduction 
of existing  rates.  The  higher  costs  in Europe  are 
caused  by 'frontier-crossing  penalties',  inability  to 
take advantage  of possible  economies  of scale  and,  in 
general,  by the  fact  that  common  policies  and  rates 
have  not yet been  adopted; 
2.6.2.  for  frontier-crossing  networks,  information 
has to be obtained,  orders  have  to be placed  and 
types  have  to be approved  country  by country; 
2.6.3.  although  the  Committee  is aware  of the 
work  now  going  on in the CCITT  and  CEPT  to this 
end, it feels  obliged  to emphasize  the  necessity  for 
compatibility  between  the  public  data  networks 
being  established  in individual  Member  States. 
2.7. High-speed  facsimile  transmission  (30—15 
seconds  per  A4  sheet)  tends  to  be  digital. 
Standardization  permitting  significant  networks 
seems  rather  far away. 
2.8. Most  of the problems  stem  from  one  or more 
of the following  'historical'  disadvantages: 
2.8.1.  in  most  of the Member  States,  in contrast  to 
the situation  in  Sweden  and  the  USA, 
telecommunications  are  obliged  to subsidize  labour-
intensive  mail  services; 
2.8.2.  existing  transmission  facilities  have  been 
designed  for  voice  (they  are  rated  by  voice 
equivalent)  and  have  to be adapted  to data  traffic, 
just as  existing  computing  facilities  have  been 
designed  for  batch-mode  processing  and  have  to be 
adapted  for  interactive  processing  (by  means  of 
monitors  and  front-ends); 
2.8.3.  because  of their  dependence  on fluctuating 
political  masters,  most  PTT  administrations  are  not 
assured  of sufficiently  long  and  stable  planning 
periods; 
2.8.4.  most  Member  State  governments  still  regard 
their  country  as the prime  unit,  not  the  Community 
or its regions. 
3. TELECOMMUNICATIONS  IN  THE  EEC 
3.1. Both  national  telecommunications  policies 
and the  development  of the  telecommunications 
industry  in the EEC  are of importance  in the context 
of current  Community  programmes  of action. 
15. 12. 75 Official  Journal  of the  European  Communities No C 286/27 
3.1.1.  Barriers  to trade 
3.1.1.1.  The  telecommunications  systems  adopted 
by individual  countries  and  the  tariff  structures 
which  the  national  administrations  apply,  can  be of 
significance  in the  restriction  of free  competition. 
Most  frequently  the  impediment  is probably  an 
unintended  by-product  of policies  adopted  for  other 
reasons,  but  it remains  nonetheless  true  that  so long 
as communications  across  national  boundaries  are 
priced  as at present,  and  so long  as the availability  of 
lines  is so restricted,  there  will  be an economic  and 
practical  barrier  to  competition  from  beyond 
national  frontiers. 
3.1.1.2.  Contracts  to  the  telecommunications 
industry  are  effectively  restricted  by  the  need  for 
compatibility  with  the  equipment  already  in the 
telecommunications  network  of the  administration  in 
question.  Only  by  harmonization  of  technical 
requirements  and  standards  will  it be possible  for 
genuine  Europe-wide  competition  to develop  in this 
market. 
3.1.2.  Regional  development 
3.1.2.1.  There  is  little  likelihood  of  effective 
regional  development  without  a  suitable 
infrastructure,  part  of  which  is undoubtedly  a 
telecommunications  system  which  is at least  equal  to 
that of metropolitan  regions. 
3.1.2.2.  In  fact,  telecommunications  infrastructure 
is a  prerequisite  for  industrial  and  service 
development,  at least  as far  as basic  telephone  and 
telex  exchange  and  network  facilities  are  concerned. 
One of  the  striking  facts  about  the  European 
Community  is the  difference  of level  between  the 
telecommunications  services  provided  to  the 
population  of the  large  urban  concentrations  and 
those  available  to the  inhabitants  of remote  and 
rural  areas.  This  comment  is valid,  not  only  for 
telecommunications  services  such  as telephone  or 
telex,  but  also  for  a range  of telecommunications 
broadcasting  facilities  such  as radio,  television  and 
cable  TV.  For  many  years  it has  been  observed 
that means  of  communication  as  well  as 
telecommunications  are  'space  structuring'  and  this 
leads  to a kind  of vicious  circle.  Communications 
are, to  a  great  extent,  available  in  urban 
concentrations  because  of  their  high  population 
density,  and  people  leave  the  low  density  areas 
because  of a lack  of opportunities.  This  speeds  up 
the process  of  concentration.  High  connection 
charges  act  as a deterrent  to expansion  in less-
developed  regions.  Telecommunication  tariffs  should 
not strongly  disadvantage  long-distance  calls  (e.g. 
flat rate  over  50 km)  and  not  be excessively  high  for cross-border  links.  This  is justified  for social  reasons, 
in order  to encourage  investments,  to decentralize 
facilities  and  to help  the  tourist  industry.  It should 
be noted  that  the  major  cost  of  telephone 
communication  is not  the  long-distance  transmission 
equipment  (e.g.  cable)  but  the switching  equipment. 
3.1.3.  Regional  harmonization 
3.1.3.1.  The  European  ideal  is concerned  with 
promoting  a true  community  life  and  with  ensuring 
equal  rights  for  all citizens.  It has  often  been  stated 
that the  Community  should  not  be inward  looking 
and that  it should  be kept  wide  open  to the  outside 
world.  A few  years  ago,  the six Member  States  of the 
Community,  acting  within  the  CEPT,  agreed  for 
instance  on  a single  postal  rate  equivalent  to the 
national  inland  rate  for  all letters  from  any  of the 
Six, not  exceeding  a maximum  weight  of  20 
grammes.  In the  enlarged  Community  this  is still 
restricted  to the  Six.  But  letters  are  not  the  only  way 
to communicate.  At present,  international  telephone 
calls  are  more  expensive  than  corresponding  calls 
within  a country.  The  reasons  for  this  are  partly 
historical  and  partly  because  of the  high  costs  of 
communication  between  different  technological 
systems. 
3.1.3.2.  However,  it can  be  questioned  whether 
the private  international  calls,  which  are  generated 
because  of  the  movements  of  migrant  workers, 
international  marriages  or any  other  reason,  should 
be penalized  in this  way.  The  situation  is not  very 
different  for  business  calls.  Moving  goods  involves 
the transfer  of  information  which  is  often 
telecommunicated.  It  is,  therefore,  difficult  to 
understand  why  information  related  to  the 
movement  of products  for  which  customs  duties  are 
no longer  paid,  has  to be so financially  loaded  with 
surcharges.  It is possible  to conclude  that  if in some 
areas  of Community  construction  a certain  amount 
of progress  has  been  made,  in  the  area  of 
telecommunications  progress  so  far  has  been 
disappointing.  The  Committee  trusts  that  every 
effort  will  be  made  to introduce  a basic  intra-
Community  tariff  for telephone  communications. 
4. ESTIMATION  OF  TELECOMMUNICATIONS 
NEEDS 
4.1. Adequate  estimates  of the  future  demand  for 
telecommunications  facilities  are  required  in order 
that the  investment  priorities  be determined  and  the 
necessary  development  plans  initiated  at the  right 
time.  The  period  of time  needed  to develop  new 
communications  networks  or to introduce  technical 
> 
No C 286/28  Official  Journal  of the  European  Communities  15.  12. 75 
advances  into  existing  networks,  tends  to  be 
relatively  long.  Failure  to initiate  the right  plans  now 
will have  consequences  upon  the  adequacy  of the 
networks  in existence  in 1985  and  beyond.  It is, 
therefore,  of  crucial  importance  that  adequate 
estimates  of the  demand  for  telecommunications  be 
available. 
4.2. It  must  be  admitted,  however,  that  past 
experience  suggests  that  predictions  of demand  have 
almost  in all cases  been  seriously  wrong  — demand 
is almost  always  underestimated. 
4.3. The  problem  of defining  needs  is a broader 
one than  the  problem  of  estimating  demands. 
Particularly  in the  case  of new  technologies,  it may 
be important  to stimulate  demand  for  facilities.  The 
decision  to stimulate  demand  in this  way  must  be 
based  on some  assessment  of the  benefits  which  will 
arise  if the  demand  is satisfied.  This  goes  beyond  the 
realm  of statistics  and  predictions,  and  requires  a 
political  judgement  as well  as an estimate  of the 
spontaneously  arising  demand. 
4.4. Needs  can  be  extrapolated  from  past 
experience  in the  growth  of demand  for  particular 
facilities.  Alternatively,  a deductive  approach  can  be 
adopted,  whereby  the  likely  demand  is inferred  from 
a consideration  of a model  of society  at some  point 
in the  future,  or derived  from  estimates  of a number 
of parameters  which  are  known  to influence  demand. 
Whichever  approach  is  taken,  it still  remains 
necessary  to decide  on  the  relative  priorities  of 
different  fields  of development. 
4.5. It  is clear  that  national  estimates  of demand 
and national  decisions  on priorities  affect  the extent 
to which  telecommunications  networks  can  function 
effectively  on an international  scale.  If it is decided 
that current  users  in one  country  must  pay  at a rate 
which  will  finance  future  developments,  while  in 
another  country  the  developments  are  centrally 
financed,  it usually  follows  that  the  density  of the 
network  is lower  in the  first  country;  this  means  that 
on an  international  scale  the  network  is uneven, 
being  dense  in one  country  and  sparse  in another.  A 
possible  consequence  of this  is that  potential  users 
prefer  alternative  channels  of communication.  A 
variety  of  such  effects  can  follow  when  the 
development  of different  parts  of a network  takes 
place  in an uncoordinated  fashion. 
5. THE  PREREQUISITE  FOR  ADVANCE  IN TELE-
COMMUNICATIONS 
5.1. A  number  of conclusions  have  emerged  from 
the Committee  consideration  of possible  barriers  to 
advancement  in the  development  of telecommuni-
cations  facilities. 5.1.1.  Technological  conclusions 
5.1.1.1.  Uniformity  between  national  tele-
communications  systems  would  bring  benefits  to 
all the  Member  States  of the  Community  because  of 
ecohomies  of scale  and  simplicity  of interfacing. 
5.1.1.2.  The  European  telecommunications 
industry  and  administrations  have  made  a major 
effort  to keep  pace  with  technological  progress. 
Technological  successes  have  been  registered  in 
high-frequency  links,  multiplexing  systems,  electronic 
switching,  etc.  Problems  of volume  and  development 
costs  have  had  a  strong  influence  on  the 
technological  aspects  and  some  European-based 
companies  were  led  to  establish  links  with 
multinational  companies  for  reasons  which  were 
both  financial  and  technological.  The 
implementation  of new  technologies  presents  a real 
challenge  to  the  European  companies  and 
administrations.  The  Committee  is of the  opinion 
that European  based  companies  require  markets  of 
European  scale  if they  are  to achieve  the  dimensions 
and capabilities  to improve  their  position  in world 
markets. 
5.1.1.3.  There  appear  to  be  no  major 
technological  barriers  to the  introduction  of a wide 
range  of new  telecommunications  facilities.  Similarly, 
extension  of the  coverage,  and  improvements  in the 
efficiency  of existing  systems  are  also  possible  using 
known  technology. 
5.1.2.  Short-term  economic  conclusions 
Some  means  whereby  investment  programmes  can  be 
shielded  against  short-term  changes  in economic 
policy  would  greatly  improve  the  orderliness  and 
efficiency  of  telecommunications  development 
programmes. 
5.1.3.  Pricing  and  financing  conclusions 
5.1.3.1.  During  past  years,  some  telecommunications 
surpluses  have  been  used  to compensate  for  mail 
service  deficits.  This  caused  a reduction  of investment 
and then  a loss  of potential  income  or a sharp 
increase  in tariffs. 
5.1.3.2.  Investments  in  telecommunications 
equipment  can  bring  major  economic  returns.  For 
example,  the  systematic  extension  of  automatic 
15.12.  75 Official  Journal  of the European  Communities No C 286/29 
dialling  is expensive  but labour  costs  have  increased 
so fast  in Europe  that  the investment  can  be very 
beneficial.  The  same  can  be said  about  semi-
conductor  switching  and  pulse-coded  modulation 
which  will  cause  a sharp  decrease  in maintenance 
costs  but which  will  be cheap  only  if the equipment 
is mass-produced  and widely  installed. 
5.1.3.3.  When  current  users  are required  to pay 
for facilities  they  use  at rates  intended  to finance 
investment  in facilities  for use many  years  later,  the 
effect  is likely  to inhibit  demand  in the short  term. 
Variations  in policy  on  this  point  — whether 
between  different  administrations  or over  time  — 
can lead  to uneven  density  of networks  or to 
apparently  violent  fluctuations  in current  and 
extrapolated  demand. 
5.1.3.4.  In  some  cases  users  of  one 
telecommunications  facility  are  effectively 
subsidizing  users  of another,  and  in many  cases 
telecommunications  revenue  is used  to offset  such 
deficits.  This  offsetting  is in many  cases  unavoidable, 
but it should  not  be allowed  to slow  the pace  of 
development. 
5.1.4.  Political  conclusions 
5.1.4.1.  It  is necessary  that  the  administrations 
responsible  for  the  planning  and  development  of 
telecommunications  networks  be  responsive  to 
social  and  economic  priorities  as expressed  through 
the appropriate  political  channels.  This  is normally 
the case  at national  level.  There  should  similarly  be 
an input  of priorities  deriving  from  European 
Community  policies.  It does  not seem  that  machinery 
has yet developed  whereby  national  governments  can 
be confronted  directly  with  the  effects  of the 
telecommunications  policies  on  international 
programmes. 
5.1.4.2.  The  interrelationship  between  tele-
communications  and  other  forms  of commu-
nication,  such  as transport,  is recognized  from 
time to time,  but  it is rare  to find  an overall 
coordination  of communications  policies.  In the 
further  examination  of the  political  institutions 
appropriate  for  the  furtherance  of  tele-
communications  development,  it  would  be 
appropriate  to consider  trreans  of coordinating  all 
policies  with  a bearing  on communications.  In this 
way,  it becomes  clearer  that  the political  need  is for 
a coordination  of social  and  economic  policy  rather 
than for  any  detailed  consideration  of technical 
issues. 5.1.4.3.  While  the assessment  of future  needs  will 
remain  the  responsibility  of governments  and 
telecommunications  administrations,  it is important 
that users  be in a position  to express  their  views  and 
formulate  their  wishes.  Some  wishes  are at a level  of 
policy  making  which  would  make  it more 
appropriate  for them  to be presented  at Community 
level. 
5.1.4.4.  Generally  speaking,  the  administrations 
respond  to users'  needs  when  these  needs  are 
standard  needs  within  the scope  of the services  they 
usually  provide.  But,  even  in this  area  the response 
time can  be slow  if the infrastructure  is inadequate 
as in rural  areas.  The  new  applications  often  require 
a flexibility  which  is not easy  to accommodate  with 
administrative  or technical  regulations.  It can  be 
argued  that  the restrictions  which  are put on the use 
of telecommunications  facilities  do not  permit  the 
most  effective  use of them.  The  administrations  offer 
a public  service,  and  they  enjoy  in consequence  a 
monopoly  position.  They  lack  the competition  and 
in some  matters  the consequent  commercial  attitudes 
which  have  acted  as catalysts  in the development  of 
many  successful  companies.  Without  commenting  on 
monopoly  positions,  the Committee  feels  it would  be 
interesting  to study  the type  of dynamic  factors  it 
would  be possible  to encourage,  in order  to foster  a 
more  commercial  intensive  approach  in 
telecommunications  administrations. 
5.1.4.5.  The  creation  of means  for  taking  into 
consideration  expressions  of users'  wishes,  should 
therefore  be  part  of a further  study  of the 
administrative  structure  needed  for faster  advances  in 
the development  of telecommunications. 
6. COMMUNITY  POLICY  FOR  TELECOMMUNI-
CATIONS 
6.1. By  way  of summary,  the Committee  considers 
that the following  major  points  ought  to be included 
in a viable  European  telecommunications  policy: 
6.1.1.  agreement  on relative  priorities  of different 
modes  of comunication,  seen  in the light  of other 
European  policies  and  the  context  of Community 
wide  economic  development  on the one hand,  and the 
needs  of communications  users  on  the  other; 
agreement  on investment  to be made  for  social 
reasons  or in the context  of regional  policies,  and on 
the origin  of finance; 
No C 286/30 Official  Journal  of the  European  Communities 15.12.  75 
6.1.2.  agreement  on  the  types  of 
telecommunications  facilities  to be developed  with 
the highest  priority  and  the  timetable  for  stages  of 
network  development; 
6.1.3.  initiatives  regarding  development  in 
tendering  for supply  contracts; 
6.1.4.  initiatives  regarding  development  towards  a 
harmonization  of systems  specifications  for  better 
linking  of national  networks; 
6.1.5.  agreement  on  the  principles  of  pricing 
structure  in so far  as these  affect  the  ability  of 
administrations  to make  the  desired  investments  and 
the rate  of expansion  of the  networks  and  equality 
of access  to  the  networks;  such  agreement 
presupposes  studies  of the effects  of pricing  policies; 
6.1.6.  Measures  to  strengthen  the 
telecommunications  industry  in the  Community  and 
to allow  it to play  a major  role  in the European  and 
world  markets. 
7. TRANSPORT  AND  TELECOMMUNICATIONS 
7.1. General  comments 
7.1.1.  Present-day  and  future  transport  is no 
longer  feasible  without  telecommunications  facilities. 
The use  of such  facilities  is forever  on the  increase 
and ensures  that  means  of transport  are  safer,  more 
rational,  more  competitive  and  more  easily  and  more 
readily  accessible  to  users.  The  use  of 
telecommunication  for  air safety,  for  booking  seats 
on planes  and  in trains,  in taxi  services  and  in inland 
waterway  and  sea transport  are just  a few  examples. 
7.1.2.  It  is more  difficult  to make  a reliable 
assessment  of  the  net  effect  which  tele-
communications  have  on the  utilization  of transport. 
This  effect  depends  mainly  on  the  extent  to 
which  telecommunications  make  possible  contacts 
over  a long  distance,  which  subsequently  develop  to 
such  an extent  that  transport  of people  or of goods 
is a consequence. 
7.1.3.  It  is also  difficult  to state  to what  extent 
telecommunications  can  be used  as a substitute  for 
passenger  transport.  A large  number  of journeys, 
which  nominally  take  place  in order  to convey 
information,  also  permit  contacts.  This  function  is 
lost when  information  is transmitted  by  way  of 
present-day  telecommunications  systems.  On  the 
other  hand,  many  journeys  are  of course  already 
made  unnecessary  by  the  existence  of 
telecommunications  facilities  and  this  may  become 
even  more  the  case  in the  future  as a result  of 
technological  progress.  In view  of the  implications  of this situation  for transport  policies  and  activities,  the 
Committee  believes  that  the  Commission  should 
examine  the  whole  question  of the  extent  to which 
transport  and  telecommunications  in the Community 
are interchangeable  or perform  important  comple-
mentary  functions. 
7.1.4.  Before  any  attempt  can  be made  to assess 
the interrelationships  between  transport  and 
telecommunications,  a distinction  must  be  made 
between  conventional  forms  of transport  and  new 
transport  techniques.  Apart  from  the  fact  that 
conventional  forms  of transport  can  be used  more 
rationally,  more  safely  and  more  economically, 
thanks  to  telecommunications  (road  stations, 
container  transhipment  points,  enhanced  integration 
between  various  modes  of transport,  avoidance  of 
empty  runs,  remote  display  of traffic  congestion  and 
possible  diversions,  etc.)  the  implementation  of new 
transport  techniques  is  inconceivable  without 
telecommunications.  Public  transport  in 
conurbations  cannot  be improved  by new  transport 
techniques  (e.g.  taxibuses,  high-speed  commuter 
trains)  unless  telecommunications  facilities  are called 
on as well. 
7.1.5.  This  also  covers,  for  example,  the  more 
rational  utilization  of available  parking  areas  in city 
centres  during  business  hours  (local  display  of empty 
places  in car parks). 
7.2. Current  use of data  communications  in transport 
7.2.1.  Business  operations  are  speeded  up by the 
introduction  of teleprocessing  systems  and  thus  of 
data  communications.  Such  a speed-up  mostly  means 
that customer  services  will  be increased.  In addition, 
teleprocessing  reduces  costs  in many  cases. 
7.2.2.  As  regards  the  extent  to  which  data 
communications  are  used  in the  field  of transport,  a 
distinction  can  be made  between  the  air  transport 
sector  (large-scale  use  of data  communications)  and 
other  sectors  (relatively  little  use  of  data 
communications).  Both  groups  will  be  discussed 
separately. 
7.2.3.  Air  transport 
7.2.3.1.  It  goes  almost  without  saying  that,  since 
air transport  is such  a 'high-speed'  industry,  the 
services  which  help  to make  a flight  possible  must 
also be high-speed.  Even  when  teleprocessing  was 
still in its infancy,  the  air transport  industry  was  a 
major  user  of data  communications.  Apart  from 
computer-controlled  international  communications 
15.12.  75 Official  Journal  of the  European  Communities No C 286/31 
systems  which  link  up the  various  airlines  (such  as 
the SITA  network),  the  following  applications  for 
teleprocessing  in the  air  transport  sector  should  be 
mentioned: 
— administration, 
— booking  of seats, 
— freight  scheduling, 
— maintenance, 
— traffic  handling, 
— ticketing, 
— flight  planning. 
7.2.3.2.  The  most  important  applications,  from  the 
point  of view  of the  volume  of data  traffic,  are  the 
booking  of  seats  and  traffic  handling,  which 
currently  account  for  40 °/o and  35 % of the  data 
traffic  in the air transport  sector. 
7.2.3.3.  The  results  of the  Eurodata  study  indicate 
that these  are  also  the  applications  which  will 
expand  rapidly  in the  immediate  years  to come. 
Booking  systems  will  be responsible  for  an annual 
growth  rate  in data  traffic  of almost  20 °/o in the 
next  five  years,  whilst  over  the  same  period  flight 
planning  systems  are  likely  to grow  by 35 °/o each 
year. 
7.2.3.4.  Seat  booking  systems  include  a computer 
system  in which  flight  data  are stored.  Air  passengers 
can obtain  instant  information  about  vacant  seats 
from  the  terminals  in booking  offices  and  can  book 
straight  away  if they  wish.  It is estimated  that 
European  airlines  would  have  needed  an  extra 
22 000  office  staff  in 1971,  if bookings  had  not  been 
automated. 
7.2.3.5.  One  application  of  current  interest, 
especially  in the  light  of the  energy  crisis,  is the 
automation  of flight  planning. 
7.2.3.6.  A  distinction  is made  here  between  two 
different  applications,  one  dealing  with  overall  flight 
schedules  and  the  other  with  individual  flights.  To 
this end,  the  computer  system  is continuously  fed 
with  the  most  up-to-date  data  on length  of flight, 
loading,  weather  conditions,  route,  fuel 
consumption,  delays,  etc.  United  Airlines  (USA)  have 
calculated  that  $ 1-7  million  can  be saved  on fuel 
each  year  by using  such  a system. 
7.2.3.7.  Flight  planning  systems  are  linked  to seat 
booking  schemes,  whilst  extensive  use  is made  of, for 
example,  the  SITA  network  to obtain  data  from  the 
various  airports. 7.2.4.  Transport  by  ivater,  railways  and  road 
7.2.4.1.  Although  the  other  transport  sectors 
currently  make  much  less  use  of  data 
communications  than  air  transport,  data  traffic  is 
expected  to grow  by the highest  rate  in these  sectors. 
7.2.4.2.  Up  to  1980,  annual  growth  rates  of 
between  50 and  100  °/o are  expected,  depending  on 
the applications. 
7.2.4.3.  In  view  of the  functional  relationships 
between  the  various  transport  sectors,  it is not 
surprising  that  there  will  be  a strong  similarity 
between  the  teleprocessing  applications  in  each 
sector.  The  fields  of application  enumerated  for  air 
transport  apply,  mutatis  mutandis,  to  the  other 
transport  sectors  as well. 
7.2.4.4.  However,  the  volume  of data  traffic  is 
divided  up somewhat  differently  in the latter  sectors, 
where  administration,  seat  bookings  and  freight 
scheduling  each  account  for 30 % of the total  traffic. 
7.2.4.5.  Teleprocessing  for  freight  scheduling  is 
being  expanded,  in particular  by shipping  companies 
specialized  in container  transport.  This  is due  to the 
desire  to shorten  transhipment  procedures  as far  as 
possible,  as well  as to the  need  to make  optimal  use 
of the expensive  specialized  installations. 
7.2.4.6.  Seat  booking  systems  will  have  particular 
impact  on the  railways  sector.  In Western  Europe 
some  systems  are  already  in  operation,  whilst 
booking  systems  for  other  railway  companies  are  in 
the planning  stage.  One  major  way  in which  these 
systems  differ  from  airline  booking  systems  is their 
size;  they  cover  a considerably  larger  number  of 
terminals  and  seats. 
7.2.4.7.  Applications  are  not  kept  completely 
separate  and  there  is a growing  tendency  to integrate 
related  systems.  It is thus  possible  to  book  a 
complete  journey  in a matter  of minutes  in a travel 
agency;  that  is bookings  can  be made  for  any  travel 
combination  by air,  train  and  ship,  as well  as for 
hotels  and  self-drive  cars,  etc. 
7.3. Priority  possibilities  for Community  action  in the 
transport  field 
7.3.1.  The  Committee  considers  that  the 
Commission  should  initiate  an in-depth  investigation 
No C 286/32 Official  Journal  of the European  Communities 15.12.  75 
into the possible  applications  for telecommunications 
in the  transport  field,  including  their  possible 
employment  consequences.  The  Committee  considers 
that the  Commission  should  also  make  an 
examination  of the  question  of the  substitutability 
between  transport  and  telecommunications  in the 
Community. 
7.3.2.  The  Committee  is certain  that  if the 
Commission  were  to promote  telecommunications 
technology  more  strongly,  this  would  probably 
stimulate  faster  development  of  new  transport 
techniques.  In any  case,  however,  such  action  could 
provide  a further  contribution  towards  increased 
safety  in the transport  field. 
7.3.3.  The  use  of telecommunications  in  city 
centres  (organization  of limited  space,  charging  for 
infrastructure  costs,  traffic  control,  etc.)  should 
constitute,  in the  Committee's  view,  a further  field 
for in-depth,  urgent  study  by the Commission,  all the 
more  since  other  areas  of the  economy  should 
provide  sufficient  stimulus  in order  to create  the 
requisite  technical  infrastructure. 
8. FINAL  COMMENT 
8.1. As  has  been  outlined  above,  a common 
telecommunication  policy  is necessary.  This  policy 
Done  at Brussels,  25 September  1975. must  be based  on the  principles  which  were  used  in 
the framing  of  other  common  policies. 
Implementation  of this  policy  is conditional  on 
political  will  (which  on too  many  occasions  is absent 
from  other  common  policies),  a  coherent 
Community  concept  and  the  earmarking  of the 
appropriate  funds.  In order  to realize  a common 
telecommunication  policy,  the Commission  must: 
8.1.1.  submit  proposals  as soon  as possible  for 
implementing  a common  policy  in this  field; 
8.1.2.  work  out  various  Community  models  for 
Member  States'  medium-term  development  in order 
to assess  the  role  of  communications,  and 
particularly  telecommunications,  in the light  of these 
models; 
8.1.3.  study  telecommunications  systems  in the 
Member  States  and  take  every  step  to harmonize 
these  systems. 
8.2. The  Committee,  which  includes 
representatives  of the  users,  industrialists  and  trade 
unions  concerned,  expects  to be consulted  on all 
future  Commission  initiatives  in this  field.  For  its 
part,  the  Committee  is prepared  to provide  the 
Commission  with  all possible  assistance  in this  field. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the European  Community's  Generalized  Tariff  Preferences  Scheme  for 1976 
and on the  future  development  of the  European  Community's  Generalized  Tariff 
Preferences 
The text  referred  to the  Committee  has  not  been  published  in the Official  Journal  of 
the European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 26 June  1975,  the  Council  referred  the abovementioned  subject  to the  Economic 
and Social  Committee  under  Article  198  of the  Treaty  establishing  the  European 
Economic  Community.