A4-0017/96

Proposal for a European Parliament 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) (COM(95)0379 - C4-0365/95 - 95/0207(COD))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 1

>Original text>

1. Whereas from 1 January 1998 (with transition periods for certain Member States) the provision of telecommunications services and infrastructure in the Community will be liberalized; whereas the Council's resolution of 7 February 1994 on universal service principles in the telecommunications sector(1) recognizes that in order to promote Community-wide telecommunications services there is a need to ensure interconnection of public networks and, in the future competitive environment, interconnection between different national and Community operators; whereas Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision (ONP)(2) lays down harmonized principles for open and efficient access to, and use of, public telecommunications networks and, where applicable, services; whereas the Council's Resolution of 22 July 1993 on the

>Text following EP vote>

1. Whereas from 1 January 1998 (with, subject to certain conditions, the possibility of transition periods in some Member States) the provision of telecommunications services and infrastructure in the Community will be liberalized; whereas, in order to promote Community-wide telecommunications services there is a need to ensure interconnection of networks between different national and Community operators; whereas Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision (ONP)(2) lays down harmonized principles for open and efficient access to, and use of, public telecommunications networks and, where applicable, services; whereas the Council's Resolution of 22 July 1993 on the review of the situation in the telecommunications sector and the need for further development in that market(3) recognizes that open network provision measures

>Original text>

review of the situation in the telecommunications sector and the need for further development in that market(3) recognizes that open network provision measures provide an appropriate framework for harmonizing interconnection conditions;

>Text following EP vote>

provide an appropriate framework for harmonizing interconnection conditions;

>Original text>

(1) OJ C 48, 16.2.1994, p. 1.

(2) OJ L 192, 24.7.1990, p. 1.

(3) OJ C 213, 6.8.1993, p. 1.

>Text following EP vote>

(2) OJ L 192, 24.7.1990, p. 1.

(3) OJ C 213, 6.8.1993, p. 1.

(Amendment 2)

Recital 4

>Original text>

4. Whereas, following the removal of special and exclusive rights for telecommunications services and infrastructure in the Community, the provision of telecommunications networks or services may require some form of authorization by Member States; whereas all organizations authorized to provide public telecommunications networks or public telecommunications services in all or part of the Community should be free to negotiate interconnection agreements on a commercial basis in accordance with Community law, subject to supervision and intervention by national regulatory authorities; whereas it is necessary to ensure adequate interconnection within the Community of certain networks and services essential for the social and economic well-being of Community users, notably public telephone networks and services, and leased lines;

>Text following EP vote>

4. Whereas, following the removal of special and exclusive rights for telecommunications services and infrastructure in the Community, the provision of telecommunications networks or services may require some form of authorization by the relevant regulatory authority, in accordance with the subsidiarity principle; whereas all organizations authorized to provide public telecommunications networks or public telecommunications services in all or part of the Community should be free to negotiate interconnection agreements on a commercial basis in accordance with Community law, subject to supervision and intervention by the relevant authorities; whereas it is necessary to ensure adequate interconnection within the Community of certain networks and services essential for the social and economic well-being of Community users, notably public telephone networks and services, and leased lines;

(Amendment 3)

Recital 6

>Original text>

6. Whereas the resolution of 7 February 1994 sets out conditions for financing a universal voice telephony service; whereas obligations for the provision of universal service contribute to the Community objective of socio- economical cohesion and territorial equity; whereas there may be more than one organization in a Member State with universal service obligations; whereas the calculation of the net cost of universal service should take due account of costs and revenues, as well as economic externalities and the intangible benefits resulting from providing universal service but, in order not to hinder the on-going process of tariff rebalancing, should not include elements which are due to historic tariff imbalances; whereas costs of universal service obligations should be calculated on the basis of transparent procedures; whereas financial contributions related to the sharing of universal service obligations should be unbundled from charges for interconnection;

>Text following EP vote>

6. Whereas obligations for the provision of universal service contribute to the Community objective of socio-economical cohesion and territorial equity; whereas the aim should be to introduce new technologies like the integrated digital services network (ISDN) as soon as possible and on as broad a basis as possible in the Member States; whereas there may be more than one organization in a Member State with obligations of providing universal service; whereas the calculation of the net cost of universal service should take due account of costs and revenues, as well as economic externalities and the intangible benefits resulting from providing universal service but, in order not to hinder the on-going process of tariff rebalancing, should not include elements which are due to historic tariff imbalances, given that the fixed costs associated with the existing network are at present partly taken into account in the tariff shared by all users of that network; whereas costs of universal service obligations should be calculated on the basis of transparent procedures; whereas financial contributions related to the sharing of the cost of universal service between all operators should be unbundled from charges for interconnection;

(Amendment 4)

Recital 7

>Original text>

7. Whereas it is important to lay down principles to guarantee transparency, access to information, non-discrimination and equality of access, in particular for organizations with significant market power; whereas the market power of an organization depends on a number of factors including its share of the relevant product or service market in the relevant geographical market, its turnover relative to the size of the market, its ability to influence market conditions, its control of the means of access to end- users, its access to financial resources, its experience providing products and services in the market; whereas, for the purpose of this Directive, an organization with a share of more than 25% of a particular telecommunications market in the geographical area in a Member State within which it is authorized to operate would be presumed to enjoy significant market power, unless its national regulatory authority determined that this was not the case; whereas, for an organization falling below this threshold market share, the national regulatory authority may nevertheless determine that the organization enjoyed significant market power;

>Text following EP vote>

7. Whereas it is important to lay down principles to guarantee transparency, access to information, non-discrimination and equality of access, in particular for organizations with significant market power; whereas the market power of an organization depends on a number of factors including its share of the relevant product or service market, its turnover relative to the size of the market, its ability to influence market conditions, its control of the means of access to end-users and its international links; whereas, for the purpose of this Directive, an organization with a share of more than 25% of a particular telecommunications market in the geographical area in a Member State within which it is authorized to operate would be presumed to enjoy significant market power, unless the relevant regulatory authority determined that this was not the case; whereas, for an organization falling below this threshold market share, the relevant regulatory authority may nevertheless determine that the organization enjoyed significant market power; whereas, where alternative, competitive means of access to the market exist, this presumption of power may be reversed;

(Amendment 5)

Recital 8

>Original text>

8. Whereas pricing for interconnection is a key factor to determine the structure and the intensity of competition in the transformation process towards a liberalized market; whereas organizations with significant market power must be able to demonstrate that their interconnection charges are set on the basis of objective criteria and follow the principles of transparency and cost orientation, and are sufficiently unbundled in terms of network and service elements offered; whereas publication of a list of interconnection services and charges enhances the necessary transparency and non- discrimination; whereas flexibility in the methods of charging for interconnection traffic should be possible, including capacity-based charging; whereas the level of charges should promote productivity and encourage efficient and sustainable market entry, and should not be below a limit calculated by the use of long-run incremental cost and cost allocation and attribution methods based on actual cost causation, nor above a limit set by the stand-alone cost of providing the interconnection in question;

>Text following EP vote>

8. Whereas pricing for interconnection is a key factor to determine the structure and the intensity of competition in the transformation process towards a liberalized market; whereas organizations with significant market power must be able to demonstrate that their interconnection charges are set on the basis of objective criteria and follow the principles of transparency and cost orientation, and are sufficiently unbundled in terms of network and service elements offered; whereas publication of a list of interconnection services, charges, terms and conditions enhances the necessary transparency and non-discrimination; whereas flexibility in the methods of charging for interconnection traffic should be possible, including capacity-based charging; whereas the level of charges should promote productivity and encourage efficient and sustainable market entry, and should not be below a limit calculated by the use of long-run incremental cost and cost allocation and attribution methods based on actual cost causation, nor above a limit set by the stand-alone cost of providing the interconnection in question;

(Amendment 6)

Recital 9

>Original text>

9. Whereas appropriate accounting separation between interconnection activities and other activities ensures transparency of internal cost-transfers; whereas, where an organization with special or exclusive rights in a non- telecommunications field also provides telecommunications services, accounting separation is an appropriate means to discourage unfair cross- subsidies;

>Text following EP vote>

9. Whereas, where an organization enjoys significant market power, accounting transparency between interconnection activities and other activities must be ensured; whereas appropriate accounting separation between interconnection activities and other activities ensures transparency of internal cost-transfers; whereas, where an organization with special or exclusive rights in a non-telecommunications field also provides telecommunications services, a clear breakdown of all costs and revenues is the appropriate means to discourage unfair cross-subsidies;

(Amendment 7)

Recital 10

>Original text>

10. Whereas national regulatory authorities shall have an important role in encouraging the development of a competitive market in the interests of Community users, and of securing adequate interconnection of networks and services; whereas negotiation of interconnection agreements can be facilitated by national regulatory authorities setting down certain conditions in advance, and identifying other areas to be covered in interconnection agreements; whereas in the event of a dispute over interconnection between parties in the same Member State, an aggrieved party must be able to call on the national regulatory authority to resolve the dispute; whereas national regulatory authorities must be able to require organizations to interconnect their facilities, where it can be demonstrated that this is in the users' interests; whereas the task of national regulatory authorities could be facilitated by the publication of non- binding guidelines in these areas;

>Text following EP vote>

10. Whereas national regulatory authorities shall have an important role in encouraging the de4velopment of a competitive market in the interests of Community users, and of securing adequate interconnection of networks and services; whereas negotiation of interconnection agreements can be facilitated by national regulatory authorities setting down certain conditions in advance according to common guidelines defined by the Commission so as to facilitate the development of a seamless harmonized European home market, and identifying other areas to be covered in interconnection agreements; whereas each operator must be responsible for carrying calls and invoicing its subscribers up to the interconnection point of its choice; whereas in the event of a dispute over interconnection between parties in the same Member State, an aggrieved party must be able to call on the national regulatory authority to resolve the dispute; whereas national regulatory authorities must be able to require organizations to interconnect their facilities, where it can be demonstrated that this is in the users' interests; whereas the task of national regulatory authorities could be facilitated by the publication of non-binding guidelines in these areas;

(Amendment 8)

Recital 11

>Original text>

11. Whereas, in accordance with Directive 90/387/EEC, the essential requirements upon which restrictions on access to and usage of public telecommunications networks or services are justified are limited to security of network operations, maintenance of network integrity, interoperability of services in justified cases, and protection of data as appropriate;

>Text following EP vote>

11. Whereas, in accordance with Directive 90/387/EEC, the essential requirements upon which restrictions on access to and usage of public telecommunications networks or services are justified are limited to security of network operations, maintenance of network integrity, interoperability of services in justified cases, and protection of data as appropriate; whereas the reasons for these restrictions must be made public;

(Amendment 9)

Recital 12

>Original text>

12. Whereas facility-sharing can be of benefit for town planning, environmental, economic or other reasons, and should be encouraged by national regulatory authorities on the basis of voluntary agreements; whereas compulsory facility-sharing may be appropriate in some circumstances, but should be imposed on organizations only after full public consultation; whereas virtual collocation may provide a satisfactory alternative to physical collocation of telecommunications equipment;

>Text following EP vote>

12. Whereas facility-sharing can be of benefit for economic or other reasons, and should be encouraged by national regulatory authorities on the basis of voluntary agreements; whereas compulsory sharing of essential facilities is necessary in some circumstances, especially for town planning or environmental reasons and should be charged for at marginal cost in these circumstances; whereas virtual collocation may in normal circumstances provide a satisfactory alternative to physical collocation of telecommunications equipment;

(Amendment 10)

Recital 21

>Original text>

21. Whereas the functioning of this Directive should be reviewed after three years; whereas at the same time the situation with regard to interconnection with third countries should also be reviewed, to allow appropriate action to be taken;

>Text following EP vote>

21. Whereas the functioning of this Directive should be reviewed after three years; whereas at the same time the situation with regard to interconnection with third countries should also be reviewed, to allow appropriate action to be taken; whereas, if necessary, the Directive should be brought into line with commitments on the liberalization of telecommunications services entered into under a multilateral agreement;

(Amendment 11)

Recital 22

>Original text>

22. Whereas the essential goal of interconnection of networks and services throughout the Community and the provision of trans-European networks and services cannot be realized satisfactorily at Member State level, and is better achieved at Community level by this Directive;

>Text following EP vote>

22. Whereas the essential goal of interconnection of networks and services throughout the Community and the provision of trans-European networks and services cannot be realized satisfactorily at Member State level, and is better achieved at Community level by this Directive; whereas it may appear desirable, when this Directive is reviewed, to envisage the possibility of establishing a European regulatory authority to be responsible for those tasks carried out by the Commission or the national regulatory authority under this Directive, which would be more efficiently carried out by such a European regulatory authority;

(Amendment 12)

Article 1, 1st paragraph

>Original text>

This Directive establishes a regulatory framework for securing the interconnection and interoperability of telecommunications networks and services in the Community, in an environment of open and competitive markets.

>Text following EP vote>

This Directive establishes a regulatory framework for securing the interconnection and interoperability of telecommunications networks and services in the Community and ensuring a universal service, in an environment of open markets for as long as there is no effective competition on such markets.

(Amendment 68)

Article 1, 2nd paragraph

>Original text>

It concerns the harmonization of conditions for open and efficient interconnection to public telecommunications networks and public telecommunication services.

>Text following EP vote>

It concerns the harmonization of conditions for open and efficient interconnection to public telecommunications networks and public telecommunication services. It also concerns the need to secure a universal service which (as defined in Council Resolution 94/C/48) permits access to a defined minimum service of a specified quality to all users everywhere at an affordable price.

(Amendment 13)

Article 2(1)(a)

>Original text>

(a) 'interconnection' means the physical and logical linking of the facilities of organizations providing telecommunications networks and/or telecommunications services, in order to allow the users of one organization to communicate with users of another organization, or to access services provided by another organization;

>Text following EP vote>

(a) 'interconnection' means the physical and logical linking of the facilities of organizations providing telecommunications networks and/or telecommunications services for the public, in order to allow the users of one organization to communicate with users of another organization of the same type, or to access services provided by another organization of the same type;

(Amendment 14)

Article 3(1)

>Original text>

1. Member States shall take all necessary measures to remove any restrictions which prevent organizations authorized by Member States to provide telecommunications networks and telecommunications services from negotiating interconnection agreements between themselves in accordance with Community law. The organizations concerned may be in the same Member State or in different Member States. Technical and commercial arrangements for interconnection shall be a matter for agreement between the parties involved, subject to the provisions of this Directive and the competition rules of the Treaty.

>Text following EP vote>

1. Member States shall take all necessary measures to remove any restrictions which prevent organizations authorized in Member States to provide telecommunications networks and telecommunications services from negotiating interconnection agreements between themselves in accordance with Community law. The organizations concerned may be in the same Member State or in different Member States. Technical and commercial arrangements for interconnection shall be a matter for agreement between the parties involved, subject to the provisions of this Directive and the competition rules of the Treaty.

(Amendment 15)

Article 3(3)

>Original text>

3. Member States shall ensure that organizations who interconnect their facilities to public telecommunications networks and/or public telecommunications services respect at all times the confidentiality of information transmitted or stored.

>Text following EP vote>

3. Member States shall ensure that organizations who interconnect their facilities respect at all times the confidentiality of information transmitted or stored except when required by law for the protection of public order.

(Amendment 16)

Article 4(1)

>Original text>

1. Organizations authorized to provide public telecommunications networks and/or public telecommunications services as identified in Annex II shall have a right and, when requested by organizations in that category, an obligation to negotiate interconnection with each other for the purpose of providing the services in question, in order to ensure provision of these networks and services throughout the Community. On a case-by-case basis, the national regulatory authority may agree to limit this obligation on the grounds that there are technically and commercially viable alternatives to the interconnection requested, and that the requested interconnection is inappropriate in relation to the resources available to meet the request. Any such limitation imposed by a national regulatory authority shall be fully reasoned and made public in accordance with Article 14(2).

>Text following EP vote>

1. Organizations authorized to provide public telecommunications networks and/or public telecommunications services as identified in Annex II shall have a right and, when requested by organizations in that category, an obligation to negotiate interconnection with each other for the purpose of providing the services in question, in order to ensure provision of these networks and services throughout the Community. On a case-by-case basis, the national regulatory authority may agree either to limit this obligation on the grounds that there are technically and commercially viable alternatives to the interconnection requested, and that the requested interconnection is inappropriate in relation to the resources available to meet the request or to extend this obligation to organizations not belonging to that category. Any such limitation or extension imposed by a national regulatory authority shall be fully reasoned and made public in accordance with Article 14(2).

(Amendment 17)

Article 5(1)

>Original text>

1. Where a Member State determines, in accordance with the provisions of this Article, that universal service obligations represent an unfair burden for an organization, it may establish mechanisms for sharing the net cost of the universal service obligations with other organizations operating public telecommunications networks. Member States shall take due account of the principles of transparency, non-discrimination and proportionality in setting the contributions to be made. Only the public telecommunications networks and public telecommunications services identified in Annex I, Part 1, may be financed in this way.

>Text following EP vote>

1. Where a Member State determines, in accordance with the provisions of this Article, that universal service obligations represent an unfair burden for an organization, it shall establish a mechanism for sharing the net cost of the universal service obligations with other organizations operating telecommunications networks. Member States shall take due account of the principles of transparency, non-discrimination and proportionality in setting the contributions to be made. Only the public telecommunications networks and public telecommunications services identified in Annex I, Part 1, may be financed in this way.

(Amendment 18)

Article 5(2)

>Original text>

2. Contributions to the cost of universal service obligations may be based on a mechanism specifically established for the purpose and administered by a body independent of the beneficiaries, or may take the form of a supplementary charge added to the interconnection charge.

>Text following EP vote>

2. Contributions to the cost of universal service obligations shall be based on a mechanism specifically established for the purpose and administered by a body independent of the beneficiaries.

(Amendment 19)

Article 5(4)

>Original text>

4. Where justified on the basis of the net cost calculation referred to in paragraph 3, and taking into account the market benefit which accrues to an organization that offers universal service, national regulatory authorities shall determine whether a mechanism for sharing the net cost of universal service obligations is justified.

>Text following EP vote>

4. Where justified on the basis of the net cost calculation referred to in paragraph 3, national regulatory authorities shall determine whether sharing the net cost of universal service obligations is justified.

(Amendment 20)

Article 5(5), 1st subparagraph

>Original text>

5. Where the mechanisms referred to in paragraph 4 are established, national regulatory authorities shall ensure that the principles for cost sharing, and details of the mechanism used, are open to public inspection in accordance with Article 14(2).

>Text following EP vote>

5. Where a mechanism for sharing the net cost of universal service obligations as referred to in paragraph 4 is established, national regulatory authorities shall ensure that the principles for cost sharing, and details of the mechanism used, are open to public inspection in accordance with Article 14(2).

(Amendment 21)

Article 5(7)

>Original text>

7. Where appropriate, the Commission may, acting in accordance with the procedure laid down in Article 15, draw up guidelines on the costing and financing of universal service.

>Text following EP vote>

7. The Commission shall, before 30 September 1996, draw up a proposal for a European Parliament and Council Directive on the costing and financing of universal service.

(Amendment 22)

Article 6, introductory phrase

>Original text>

For interconnection to the public telecommunications networks and public telecommunications services identified in Annex I provided by organizations which have been notified by national regulatory authorities as having significant market power, Member States shall ensure that:

>Text following EP vote>

For interconnection to the public telecommunications networks and public telecommunications services identified in Annex I provided by organizations which have significant market power, Member States shall ensure that:

(Amendment 23)

Article 6(d)

>Original text>

(d) interconnection agreements are open to public inspection, in accordance with Article 14(2), with the exception of those parts which deal with the commercial strategy of the parties. In every case, details of interconnection charges and any contributions to universal service obligations shall be published.

>Text following EP vote>

(d) interconnection agreements and changes to them are communicated to the relevant national regulatory authorities and the Commission. Third parties may request the relevant national regulatory authority to allow them to inspect a specific agreement. The national regulatory authority may authorize such an inspection, with the exception of those parts which deal with the commercial strategy of the parties or restrict it to the details of interconnection charges, terms and conditions. In every case, details of interconnection charges and any contributions to universal service obligations shall be published;

(Amendment 24)

Article 6(da) (new)

>Text following EP vote>

(da) information received from an organisation seeking interconnection is used only for the purpose for which it was supplied. It shall not be passed on to other departments, subsidiaries or partners for whom such information could provide a competitive advantage.

(Amendment 25)

Article 7(2)

>Original text>

2. Charges for interconnection shall follow the principles of transparency and cost orientation, and promote economic efficiency and sustainable market entry. The burden of proof that charges are cost-oriented shall lie with the organization providing interconnection to its facilities. National regulatory authorities may request an organization to provide full justification for its interconnection charges, and where appropriate shall require charges to be adjusted.

>Text following EP vote>

2. Charges for interconnection shall follow the principles of transparency and cost orientation, and promote economic efficiency and sustainable market entry. The burden of proof that charges are cost-oriented shall lie with the organization providing interconnection to its facilities. National regulatory authorities may request an organization to provide full justification for its interconnection charges, and where appropriate shall require charges to be adjusted. In this latter case, charges shall be adjusted retrospectively, without prejudice to damages which other organizations concerned may claim to compensate for the consequences of excessive interconnection charges on their ability to enter the market or other distortions of competition.

(Amendment 26)

Article 7(3), 1st and 2nd subparagraphs

>Original text>

3. Charges for interconnection shall be based on the costs of providing the interconnection services requested, and shall normally contain the following elements, each of which should be itemized separately:

>Text following EP vote>

3. Charges for interconnection shall be based on the costs of providing the interconnection services requested, and shall normally contain the following components, each of which should be itemized separately:

>Original text>

- a charge to cover reimbursement of the one-time costs incurred in providing the specific elements of the interconnection requested; (i.e. the initial cost of any engineering work needed to provide the interconnection facilities requested);

>Text following EP vote>

- a charge to cover reimbursement of the one-time costs incurred in providing the specific elements of the interconnection requested; (i.e. the initial and subsequent costs of any engineering work needed to provide the interconnection facilities requested);

>Original text>

- usage charges related to the utilization of the network elements and resources requested. These may include capacity-based charges and/or traffic related charges;

>Text following EP vote>

- usage charges related to the utilization of the network elements and resources requested. These may include capacity-based charges and/or traffic related charges;

>Text following EP vote>

- a contribution to the net fixed costs of the local network where this is objectively justified.

>Original text>

Annex IV indicates, for information only, the types of costs that may be included in each of these tariff elements. Where other tariff elements are applied, these must be transparent and based on objective criteria, and approved by the national regulatory authority.

>Text following EP vote>

Annex IV indicates the types of costs that may be included in each of these tariff components. Where other tariff components are applied, these must be transparent and based on objective criteria, and approved by the national regulatory authority.

(Amendment 27)

Article 7(4)

>Original text>

4. Charges for interconnection shall, in accordance with Community law, be sufficiently unbundled, so that the person making the request is not required to pay for network components or facilities which are not required for the service demanded.

>Text following EP vote>

4. Charges for interconnection shall, in accordance with Community law, be sufficiently broken down into components, so that the person making the request is not required to pay for network components or facilities which are not required for the service demanded.

(Amendment 28)

Article 7(5)

>Original text>

5. National regulatory authorities shall ensure the publication, in accordance with Article 14(1), of a list of interconnection services and associated tariffs broken down into components, according to market needs.

>Text following EP vote>

5. National regulatory authorities shall ensure the publication, in accordance with Article 14(1), of terms and conditions for interconnection. This shall include a list of interconnection services and relevant tariffs broken down into components, according to market needs.

(Amendment 29)

Article 7(5a)(new)

>Text following EP vote>

5a. In order to provide a common basis for the derivation of interconnection charges, the Commission shall, acting in accordance with the procedure laid down in Article 15, draw up guidelines on cost accounting systems in relation to interconnection.

(Amendment 30)

Article 7(6)

>Original text>

6. National regulatory authorities shall ensure that the cost accounting systems used by the organizations concerned are suitable for implementation of the requirements of this Article, and are documented to a sufficient level of detail. Part or all of the documentation approved by the national regulatory authority, giving details of the information identified in Annex V, shall be open to public inspection in accordance with Article 14(2). Compliance with the cost accounting system shall be verified by a competent independent body. A statement concerning compliance shall be published annually.

>Text following EP vote>

6. National regulatory authorities shall ensure that the cost accounting systems used by the organizations concerned comply with these guidelines, that they are suitable for implementation of the requirements of this Article, and are documented to a sufficient level of detail. Part or all of the documentation approved by the national regulatory authority, giving details of the information identified in Annex V, shall be open to public inspection in accordance with Article 14(2). Compliance with the cost accounting system shall be verified by a competent independent body. A statement concerning compliance shall be published annually.

(Amendment 31)

Article 7(7)

>Original text>

7. Where they exist, charges related to the sharing of the cost of universal service obligations, as described in Article 5, shall be unbundled and identified separately.

>Text following EP vote>

Deleted

(Amendment 32)

Article 7(8)

>Original text>

8. Member States shall ensure that published interconnection charges and charges related to the sharing of the cost of universal service obligations are made available to the ONP Committee at the request of the Commission.

>Text following EP vote>

8. Member States shall ensure that published interconnection charges, terms and conditions are made available to the ONP Committee at the request of the Commission.

(Amendment 33)

Article 7(9)

>Original text>

9. In order to provide a common basis for the derivation of interconnection charges, the Commission shall, if necessary, draw up, acting in accordance with the procedure laid down in Article 15, recommendations on cost accounting systems in relation to interconnection.

>Text following EP vote>

Deleted

(Amendment 34)

Article 8(1)

>Original text>

1. Member States shall require organizations who provide public telecommunications networks and/or public telecommunications services and who have special or exclusive rights for the provision of services in other sectors in the same or another Member State, to keep separate accounts for the different activities, to the extent that would be required if the activities in question were carried out by legally independent companies.

>Text following EP vote>

1. Member States shall require organizations who provide public telecommunications networks and/or public telecommunications services and who have special or exclusive rights for the provision of services in other sectors in the same or another Member State, to keep transparent accounts for their different activities, so as to identify all elements of cost and revenue related to their telecommunications activities and among these to their interconnection activity, including an itemized breakdown of fixed asset and structural costs.

(Amendment 35)

Article 8(2)

>Original text>

2. Member States shall require organizations notified by national regulatory authorities as having significant market power who provide public telecommunications networks and/or public telecommunications services for end- users and who offer interconnection services to other organizations, to keep separate accounts for, on the one hand, their activities related to interconnection - covering both interconnection services provided internally and interconnection services provided to others - and, on the other hand, other activities, to the extent that would be required if the two types of activities were carried out by legally independent companies.

>Text following EP vote>

2. Member States shall require organizations notified by national regulatory authorities as having significant market power who provide public telecommunications networks and/or public telecommunications services for end- users and who offer interconnection services to other organizations, to keep transparent accounts for, on the one hand, their activities related to interconnection - covering both interconnection services provided internally and interconnection services provided to others - and, on the other hand, other activities so as to identify all elements of cost and revenue related to their interconnection activity, including an itemized breakdown of fixed asset and structural costs.

(Amendment 36)

Article 8(3a) (new)

>Text following EP vote>

3a. The Commission shall, acting in accordance with the procedure laid down in Article 15, draw up guidelines on accounting separation in relation to interconnection. Member States shall ensure that the transparent accounts referred to in paragraphs 1 and 2 comply with these guidelines.

(Amendment 37)

Article 8(4)

>Original text>

4. The financial accounts of organizations providing public telecommunications networks or public telecommunications services shall be drawn up, published and submitted to independent audit. The audit shall be carried out in accordance with the relevant rules of national legislation.

>Text following EP vote>

4. The financial accounts of organizations providing public telecommunications networks or public telecommunications services shall be submitted to independent audit. The audit shall be carried out in accordance with the relevant rules of national legislation and its result shall be made public.

>Original text>

The first subparagraph shall also apply to the separate accounts required in paragraphs 1 and 2.

>Text following EP vote>

The first subparagraph shall also apply to the accounts established as required in paragraphs 1 and 2 and to the accounting system used for the corresponding breakdown of costs and revenues.

(Amendment 38)

Article 8(5)

>Original text>

5. The provisions of paragraphs 1 and 2 shall not apply to organizations where the annual turnover in telecommunications activities in the Community is less than the threshold set in Annex VI.

>Text following EP vote>

5. The provisions of paragraphs 1 and 2 shall not apply to organizations where the telecommunications activities in the Community are less than the thresholds set in Annex VI.

(Amendment 39)

Article 8(6)

>Original text>

6. Where appropriate, the Commission shall, acting in accordance with the procedure laid down in Article 15, draw up guidelines on accounting separation in relation to interconnection.

>Text following EP vote>

Deleted

(Amendment 40)

Article 9(1), 2nd subparagraph, indent 2a (new)

>Text following EP vote>

- the need to ensure the fair and proper development of a seamless harmonized European telecommunications home market, thus coordinate their policies, guidelines and actions with their counterparts in other Member States and with the Commission,

(Amendment 41)

Article 9(2), 3rd subparagraph a, b and c (new)

>Text following EP vote>

The independence of the national regulatory authorities shall be guaranteed by the Member States.

>Text following EP vote>

The national regulatory authorities must be legally separate from, and functionally independent of, all organizations supplying telecommunications networks, equipment and/or services.

>Text following EP vote>

Member States which maintain ownership of, or a significant degree of control over, organizations which supply telecommunications networks, equipment or services shall ensure that there is an effective structural separation between the regulatory functions and the activities associated with exercising rights of ownership and of control.

(Amendment 42)

Article 9(5), 2nd subparagraph, 1st indent a (new)

>Text following EP vote>

- the need to maintain a universal service,

(Amendment 43)

Article 9(6a) (new)

>Text following EP vote>

6a. National regulatory authorities shall provide help and assistance to their counterparts in other Member States whenever required in order to implement this Directive. The Commission may at any time request a national regulatory authority to intervene on specific issues. National regulatory authorities shall take due account of the Commission's request and inform the Commission in detail and without undue delay of the steps taken.

(Amendment 44)

Article 10(da) (new)

>Text following EP vote>

(da) Protection of environment: Member States may impose conditions in interconnection agreements in order to ensure the protection of the environment or comply with objectives of town planning, and may especially impose physical collocation of lines and ducts. The need to protect the environment shall not constitute a valid reason for refusal to negotiate terms for interconnection.

(Amendment 45)

Article 11

>Original text>

Where an organization is granted a general right under national legislation to install facilities for telecommunications purposes on, over or under public or private land, or may take advantage of a procedure for the expropriation or use of property for telecommunications purposes, national regulatory authorities shall encourage the sharing of such facilities and property with other organizations providing public telecommunications services.

Agreements for collocation or facility sharing shall normally be a matter for commercial and technical agreement between the parties concerned. The national regulatory authority may intervene to resolve disputes, as provided for in Article 9.

>Text following EP vote>

Where an organization is granted a general right under national legislation to install facilities for telecommunications purposes on, over or under public or private land, or may take advantage of a procedure for the expropriation or use of property for telecommunications purposes, national regulatory authorities shall encourage and, where essential requirements deprive other organizations from accessing viable alternatives, impose sharing of lines and ducts at marginal costs. Except in this latter case, the sharing of such facilities and property with other organizations providing public telecommunications networks and services shall be a matter for commercial and technical agreement between the parties concerned, through agreements for collocation or facility sharing. The national regulatory authority may intervene to resolve disputes, as provided for in Article 9.

>Original text>

In particular, Member States may impose facility sharing arrangements (including physical collocation) only after an appropriate period of public consultation during which all interested parties must be given an opportunity to express their views. Such arrangements may include rules for apportioning the costs of facility sharing.

>Text following EP vote>

Member States may impose facility sharing arrangements (including physical collocation) only after an appropriate period of public consultation during which all interested parties must be given an opportunity to express their views. Such arrangements may include rules for apportioning the costs of facility sharing.

(Amendment 46)

Article 12(2)

>Original text>

2. In order to ensure full interoperability of European-wide networks and services, Member States shall take all necessary steps to ensure the coordination of their national positions in international organizations and fora where numbering decisions are taken, taking into account possible future developments in numbering at a European level.

>Text following EP vote>

2. In order to ensure full interoperability of European-wide networks and services, Member States shall ensure the coordination of their national positions in international organizations and fora where numbering decisions are taken, taking into account possible future developments in numbering at a European level.

(Amendment 47)

Article 12(3)

>Original text>

3. Member States shall ensure that national telecommunications numbering plans are controlled by the national regulatory authority, in order to guarantee independence from organizations providing public telecommunications networks or public telecommunications services. In order to ensure effective competition, national regulatory authorities shall ensure that the procedures for allocating individual numbers and/or numbering ranges are transparent, equitable and timely and the allocation is carried out in an objective, transparent and non- discriminatory manner. National regulatory authorities may lay down conditions for the use of certain prefixes or certain short codes, in particular where these are used for services of general public interest (e.g. freephone services, kiosk billed services, directory services, emergency services), or to ensure equal access.

>Text following EP vote>

3. Member States shall ensure that national telecommunications numbering plans are controlled by the national regulatory authority, in order to guarantee independence from organizations providing public telecommunications networks or public telecommunications services and facilitate number portability. In order to ensure effective competition, national regulatory authorities shall ensure that the procedures for allocating individual numbers and/or numbering ranges are transparent, equitable and timely and the allocation is carried out in an objective, transparent and non-discriminatory manner. National regulatory authorities may lay down conditions for the use of certain prefixes or certain short codes, in particular where these are used for services of general public interest (e.g. freephone services, kiosk billed services, directory services, emergency services), or to ensure equal access.

(Amendment 48)

Article 12(5)

>Original text>

5. National regulatory authorities shall encourage the earliest possible introduction of the facility whereby end-users who so request can retain their national number at a specific location independent of the organization providing service, and shall ensure that this facility is available at least in all major centres of population before 1 January 2003.

>Text following EP vote>

5. National regulatory authorities shall encourage the earliest possible introduction of the facility whereby end-users who so request can retain against a reasonable contribution their national number at a specific location independent of the organization providing service, and shall ensure that this facility is available at least in all major centres of population before 1 January 2003. If this facility is not yet in use, national regulatory authorities shall ensure that, once a user has changed supplier, a telephone call to his old number is rerouted to the user, or that during a reasonable period callers are given an indication of the new number.

(Amendment 49)

Article 16(2)

>Original text>

2. Any party may refer the dispute to the national regulatory authorities concerned. The national regulatory authorities shall coordinate their efforts in order to bring about a resolution of the dispute, in accordance with the principles set out in Article 9(1).

>Text following EP vote>

2. Any party may refer the dispute to the national regulatory authorities concerned. The national regulatory authorities shall coordinate their efforts and shall inform the Commission in order to bring about a resolution of the dispute.

(Amendment 50)

Article 16(3)

>Original text>

3. If the dispute is not resolved within two months of its referral to the national regulatory authorities concerned, either party may, with the agreement of all parties, invoke the procedure provided for in paragraphs 4 and 5, by way of a notification to the Commission, with copies to all parties involved. In so doing, the parties renounce any further action under national law.

>Text following EP vote>

3. If the dispute is not resolved within two months of its referral to the national regulatory authorities concerned, either party may invoke the procedure provided for in paragraphs 4 and 5, by way of a notification to the Commission, with copies to all parties involved.

(Amendment 51)

Article 16(5)

>Original text>

5. The position agreed in accordance with the procedure referred to in paragraph 4 shall form the basis of a solution to be implemented at a national level without delay. If an agreed position is not reached, or if an agreed position is not implemented within a reasonable time which shall not, except in justified cases, exceed two months, the appropriate solution shall be adopted by the Commission in accordance with the procedure laid down in Article 15.

>Text following EP vote>

5. The position agreed in accordance with the procedure referred to in paragraph 4 shall form the basis of a solution to be implemented at a national level without delay. If an agreed position is not reached, or if an agreed position is not implemented within a reasonable time which shall not, except in justified cases, exceed two months, the appropriate solution shall be adopted by the Commission in accordance with the procedure laid down in Article 15. This solution does not prejudice the possibility for one party to claim in the relevant courts for the granting of damages if it appears that the behaviour of another party has led to financial losses due to distortions of competition.

(Amendment 52)

Article 17(2), 2nd subparagraph

>Original text>

The Commission may request national regulatory authorities to provide their reasons for classifying an organization as having significant market power.

>Text following EP vote>

The Commission may request national regulatory authorities to provide their reasons for classifying an organization as having significant market power or for not classifying an organization as such.

(Amendment 53)

Article 19

>Original text>

1. Deferment from the obligations under Article 3(1) and 9(3) may be requested by those Member States identified in the Council's resolution of 22 July 1993 who benefit from an additional transition period for the liberalization of telecommunications services. Deferments granted on these grounds shall not exceed the transition periods set out in the said resolution.

>Text following EP vote>

1. Member States with less developed networks may request an additional period of up to five years in which to implement all or some of the obligations under Article 3(1) and 9(3), to the extent justified by the need to achieve the necessary structural adjustments.

>Original text>

2. Deferment from the obligations under Article 12(5) may be requested where the Member State concerned can prove that they would impose an excessive burden on certain organizations or classes of organization.

>Text following EP vote>

2. Deferment from the obligations under Article 12(5) may be requested where the Member State concerned can prove that they would impose an excessive burden on certain organizations or classes of organization.

>Original text>

The Member States shall inform the Commission of the reasons for requesting a deferment, the date by which the requirements can be met, and the measures envisaged in order to meet this deadline. The Commission shall consider the request taking into account the particular situation in that Member State and the need to ensure a coherent regulatory environment at a Community level, and shall inform the Member Sate whether it deems that the particular situation in that Member State justifies a deferment and, if so, until which date such deferment is justified.

>Text following EP vote>

The Member States shall inform the Commission of the reasons for requesting a deferment, the date by which the requirements can be met, and the measures envisaged in order to meet this deadline. The Commission shall consider the request taking into account the existing possibilities of otherwise meeting the requirements and shall inform the Member Sate whether it deems that the particular situation in that Member State justifies a deferment and, if so, until which date such deferment is justified.

(Amendment 54)

Article 20(2)

>Original text>

2. Whenever the Commission establishes that a third country is not providing Community organizations with effective rights to interconnect which are comparable to those which the Community grants to organizations from a third country, the Commission will, if necessary, submit proposals to the Council for an appropriate mandate for negotiation or other appropriate measures to ensure comparable rights for Community organizations in these third countries. The Council shall decide by a qualified majority.

>Text following EP vote>

2. Whenever the Commission establishes that a third country is not providing Community organizations with effective rights to interconnect which are comparable to those which the Community grants to organizations from a third country, the Commission will, if necessary, submit proposals to the Council for an appropriate mandate for negotiation or other appropriate measures to ensure comparable rights for Community organizations in these third countries. Should no such agreement be reached, steps shall be taken to ensure that providers of services from the third country concerned do not receive more favourable treatment in the Community than that granted to providers of services from the Community on the market of that third country. The Council shall decide by a qualified majority.

(Amendment 55)

Article 20(3a) (new)

>Text following EP vote>

3a. The Commission shall, when establishing relations with third countries, take account of the particular needs of developing countries, especially in instances where it maintains relations with such countries based on treaties.

(Amendment 56)

Article 21(2)

>Original text>

2. The Commission shall examine and report to the European Parliament and to the Council on the functioning of this Directive, on the first occasion not later than 31 December 2000. For this purpose, the Commission may request information from the Member States. Where necessary, further measures can be proposed in the report for the full implementation of the aims of this Directive.

>Text following EP vote>

2. The Commission shall examine and report to the European Parliament and to the Council on the functioning of this Directive, on the first occasion not later than 31 December 1999. For this purpose, the Commission may request information from the Member States. Where necessary, the report shall examine what provisions of this Directive should be adapted in the light of the developments in the market. Further measures can be proposed in the report for the full implementation of the aims of this Directive; in particular, the report shall examine the possibility of establishing a European regulatory authority to be responsible for those tasks carried out by the Commission or the national regulatory authority according to this Directive, which would be more efficiently fulfilled through such a European regulatory authority.

(Amendment 69)

Article 21a (new)

>Text following EP vote>

Article 21a

ersal service definition and review of application

The Commission shall come forward with a Communication forming the basis of a definition of universal service at the latest by 31 December 1996.

>Text following EP vote>

The Commission shall include in its biennial review an assessment of the application of the universal service definition taking into account technological developments and changes to the market and consumer demand. Where necessary, further measures shall be proposed to ensure that the universal service provision is met.

(Amendment 57)

Annex I, part 1

>Original text>

The fixed public telephone network

The fixed public telephone network means the public switched telecommunications network which supports the transfer between network termination points at fixed locations of speech and 3.1 kHz bandwidth audio information, to support inter alia:

>Text following EP vote>

The fixed public telephone network

The fixed public telephone network means the public switched telecommunications network which supports the transfer between network termination points at fixed locations of speech and 3.1 kHz bandwidth audio information, to support inter alia:

>Original text>

- voice telephony;

- facsimile Group I, II and III communications, in accordance with ITU-T Recommendations in the 'T-series';

- voice band data transmission via modems at a rate of at least 2400 bit/s, in accordance with ITU-T Recommendations in the 'V-series'.

Access to the end-user's network termination point is via a number or numbers in the national numbering plan.

>Text following EP vote>

- voice telephony;

- facsimile Group I, II and III communications, in accordance with ITU-T Recommendations in the 'T-series';

- voice band data transmission via modems at a rate of at least 14,400 bit/s, in accordance with ITU-T Recommendations in the 'V-series'.

Access to the end-user's network termination point is via a number or numbers in the national numbering plan.

>Text following EP vote>

The integrated digital services network (ISDN)

The ISDN means the public switched telecommunications network for the digital data as defined in the ISDN standards drawn up by the European Telecommunications Standardization Institute and the Memorandum of Understanding (ISDN-MOU) concerning the implementation of a European ISDN service supported, inter alia by:

- 7 kHz bandwidth voice telephony including the ISDN-MOU core and ancillary services;

- facsimile Group IV;

- 64 kbit/s data transmission.

>Original text>

The fixed public telephone service

The fixed public telephone service means the provision to end-users at fixed locations of a service for the originating and receiving of national and international calls, and may include access to emergency (112) services, the provision of operator assistance, directory information services, provision of public pay phones, provision of service under special terms and/or provision of special facilities for customers with disabilities.

>Text following EP vote>

The fixed public telephone service

The fixed public telephone service means the provision to end-users at fixed locations of a service for the originating and receiving of national and international calls, and includes access to emergency (112) services, the provision of operator assistance, directory information services, provision of public pay phones, provision of service under special terms and/or provision of special facilities for customers with disabilities.

>Original text>

Access to the end-user is via a number or numbers in the national numbering plan.

>Text following EP vote>

Access to the end-user is via a number or numbers in the national numbering plan.

(Amendment 58)

Annex II, second paragraph (4)

>Original text>

4. Organizations included in this category at their own request, under relevant national licensing or authorization schemes.

>Text following EP vote>

4. Organizations providing telecommunications services which are included in this category at their own request, under relevant national licensing or authorization schemes.

(Amendment 59)

Annex IV, Usage charges, second paragraph

>Original text>

In addition, interconnection charges may include a fair share, according to the principle of proportionality, of the costs incurred in providing equal access (e.g. the support of identical end-user access procedures), and number portability, and costs of ensuring essential requirements (maintenance of the network integrity; network security in cases of emergency situation; interoperability of services, and protection of data).

>Text following EP vote>

In addition, interconnection charges may include a fair share, according to the principle of proportionality, of the costs incurred in providing equal access (e.g. the support of identical end-user access procedures), and number portability, and costs of ensuring essential requirements (maintenance of the network integrity; network security in cases of emergency situation; interoperability of services, and protection of data), and an equitable contribution to the net fixed costs of the local network where this is objectively justified.

(Amendment 60)

Annex VI

>Original text>

THRESHOLD IN TELECOMMUNICATIONS TURNOVER - ARTICLE 8(5)

The threshold for annual turnover in telecommunications activities referred to in Article 8(5) shall be ECU 50 million.

>Text following EP vote>

THRESHOLDS IN TELECOMMUNICATIONS ACTIVITIES - ARTICLE 8(5)

The thresholds for telecommunications activities referred to in Article 8(5) shall be:

- ECU 50 million of annual turnover in telecommunications in the Community and,

- telecommunications activities less than 5% of total annual turnover in the Community.

(Amendment 61)

Annex VII, part 1, title

>Original text>

Ex-Ante conditions to be set by the national regulatory authority

>Text following EP vote>

Ex-Ante conditions to be set by the national regulatory authority according to guidelines set by the Commission

(Amendment 62)

Annex VII, part 1(h)

>Original text>

(h) Where applicable, determination of the unbundled part of the interconnection charge which represents a contribution to the net cost of universal service obligations.

>Text following EP vote>

Deleted

(Amendment 63)

Annex VII, part 2(ca) (new)

>Text following EP vote>

(ca) Provision of facility sharing.

(Amendment 64)

Annex VII, part 2(cb) (new)

>Text following EP vote>

(cb) Maintenance and quality of interconnection services.

(Amendment 65)

Annex VII, part 2(ea) (new)

>Text following EP vote>

(ea) Protection of confidential information.

(Amendment 66)

Annex VII, part 3(b)

>Original text>

(b) Provision of facility sharing.

>Text following EP vote>

Deleted

(Amendment 67)

Annex VII, part 3(e)

>Original text>

(e) Maintenance and quality of interconnection services.

>Text following EP vote>

Deleted

Legislative resolution embodying Parliament's opinion on the proposal for a European Parliament 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) (COM(95)0379 - C4-0365/95 - 95/0207(COD))

(Codecision procedure: first reading)

The European Parliament,

- having regard to the Commission proposal to Parliament and the Council COM(95)0379 - 95/0207(COD)( ((OJ C 313, 24.11.1995, p. 7.))),

- having regard to Articles 189b(2) and 100a of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C4-0365/95),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Research, Technological Development and Energy, the Committee on External Economic Relations, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Culture, Youth, Education and the Media (A4- 0017/96),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to incorporate Parliament's amendments in the common position that it adopts in accordance with Article 189b(2) of the EC Treaty;

4. Should the Council intend to depart from the text approved by Parliament, calls on the Council to notify Parliament and requests that the conciliation procedure be initiated;

5. Points out that the Commission is required to submit to Parliament any modification it may intend to make to its proposal as amended by Parliament;

6. Instructs its President to forward this opinion to the Council and Commission.