COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.10.1997 
COM(97) 531 final 
96/ 0226 (COD) 
OPINION OF THE COMMISSION 
pursuant to Article 189 b (2) (d) of the EC Treaty, 
on the European Parliament's amendments 
to the Council's common position regarding the 
proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
on the application of open network provision (ONP) to voice telephony 
and on universal service for telecommunications in a competitive environment 
(replacing European Parliament and Council Directive 95/62/EC) 
AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 189 a (2) of the EC Treaty 

EXPLANATORY MEMORANDUM 
Article 189b(2)(d) requests the Commission to express its opinion on the amendments 
proposed by the European Parliament in its second reading. 
The Commission hereby presents its opinion on these amendments to the Council's 
Common Position regarding the proposal for a European Parliament and Council Directive 
on the application of open network provision (ONP) to voice telephony and on universal 
service for telecommunications in a competitive environment (replacing European 
Parliament and Council Directive 95/62/EC). 
The amended proposal incorporates those amendments proposed by the European 
Parliament at Second Reading which were accepted by the Commission. 
L. Introduction 
a) Background 
The Commission adopted its proposal on 11.9.19961, and it was formally transmitted to 
the EP and the Council on 5.11.1996. 
The Economic and Social Committee gave a favourable Opinion on 15 January 19972. 
The European Parliament adopted a favourable Resolution at its First Reading on 
20.2.1997, and proposed 34 amendments to the Commission proposal3. 
The Council adopted its Common Position4 on 9 June 1997, 
The European Parliament adopted a Decision5 at its Second Reading on 17.9.1997, putting 
forward 17 amendments to the Council Common Position. 
b) Purpose of the Directive 
The aim of the Commission proposal is to replace the existing European Parliament and 
Council Directive 95/62/EC on the application of open network provision (ONP) to voice 
telephony6. 
The adaptation is being made in view of the liberalisation of public voice telephony 
services by 1st January 1998 (with transition periods for certain Member States), in 
accordance with Commission Directive 96/19/EC7. 
The purpose of the adaptation is two-fold: firstly it is necessary to adapt the Directive to a 
competitive environment and, in particular, to be more specific as to whom the provisions 
of the Directive will apply in a market with many players; secondly the Directive is being 
1 COM(96) 419, OJ C 371, 9.12.1996, p. 22 
2 .COM(96) 73 final, CdR 371/96 fin E-PES/jg 
3 A4-0049/97, PV 20.2.1997 
4 OJC 234, 1.8.97, p.87 
5 A4 0263/97 PV 17.9.1997 
6 OJL 321, 30.12.1995, p. 6 
7 OJL 74, 22.3.1996, p. 13 
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strengthened in the area of universal service, in line with the position expressed in the 
Commission Communication on universal service for telecommunications8. 
The adaptation is consistent with the European Parliament and Council Directive 
97/33/EC on interconnection in telecommunication9, which lays down that only the 
provision of a fixed public telephone network and fixed public telephone service can be 
financed by a universal service financing scheme. 
11. EP amendments accepted by the Commission 
Of the 17 amendments adopted by the European Parliament at Second Reading, the 
Commission accepted 14 in full, in part or in principle (i.e. with some reformulation of the 
text). 
Amendments accepted in full, in part or in principle: 
2, 3, 5, 6, 7,10, 11, 15, 17, 19, 20, 21, 22, 26 
The Commission accepted as drafted those amendments which: 
• improve consumer protection provided they were in line with other directive [accepted 
in full amendment 5, and in part amendments 15: first and last parts, 17: two last parts 
and 26 first part], 
• improve the clarity of the text on rides on the provision, costing and financing of 
universal service [first and last part of amendment 2], 
• are in line with Commission position on Comitology [accepted in full 21, 22], 
• clarify special network access [accepted in full 20]. 
In addition, the Commission agreed with the EP on the principles underlying the following 
amendments: 
• Amendment 2 (secondpart) : concerns operators who may provide universal service, 
• Amendment 3 (Last part): which improves disabled users access to telecommunication 
services, 
• Amendment 19: transition measure to be provided until number portability is 
introduced, 
• Amendment 7: includes text-telephones in the definition of public pay-phone, 
• Amendment 17: itemised billing to be provided in alternative format for blind and 
partially sighted users, 
• Amendment 11: Allows Member States to requires additional services to be provided, if 
they are not financed through contributions from market players. 
In its modified proposal, the Commission has taken over amendments 7, 17 in the relevant 
recitals rather than as changes to the Articles. In addition, amendments 2 (second part), 3 
(last part), 19 and 11 have been taken over with some textual changes. 
8 COM(96) 73, 13.3.1996 
9 OJL199/32, 26.7.97, 
3. Amendments not accepted by the Commission 
The reasons which led the Commission not to accept a number of the amendments (or 
parts of them) proposed by the European Parliament are given below, grouped into 3 
categories. 
Users' and consumers' rights 
In amendment 3 to recital 8 the term "does include" instead of "could include" is too 
binding for a recital. 
In the second part of amendment 15, the Commission believes that requests by users for 
alteration of contracts can be handled under the procedure in Article 26 (1). 
In the third part of amendment 15 concerning the basis for alteration of contracts the 
common position already limits alteration by stating: "insofar as they concern the 
provisions of this directive order to protect the rights of users". The Commission prefers 
the text of the Common Position. 
The second part of amendment 26 which requests the Commission to review the quality of 
services biannually is not necessary since the Commission is already doing this, and will 
be producing a report on universal service at the end of 1997 as foreseen in the 
Commission Communication of 13 March 1996 on Universal Service for 
telecommunications in the perspective of a fully liberalised environment, COM(96) 73. 
Rules on the provision, costing and financing of universal service [Amendments 8, 10] 
Amendment 8 proposes a change to the existing definition of universal service (in the 
Directive 97/33/EC on interconnection]. This change is not accepted. 
Amendment 10 to Article 3 deletes reference to "in the light of specific national 
conditions". As the agreed definition of universal service include this reference, this 
deletion cannot be accepted. 
European guidelines for affordability [amendments 1, 9] 
This Directive does not seek to change the existing situation, whereby Member States are 
free to have or not to have uniform prices throughout their territory. Therefore the first 
part of amendment 1 is not accepted. 
In accordance with the principle of subsidiarity, the criteria to calculate affordability are to 
be determined at a national level. Considering the very different national or regional 
conditions throughout the Union, it does not seem appropriate to aim at guidelines on 
affordability (amendment 1 and 9). 
4. Conclusion 
The Commission has accepted 14 of the 17 amendments proposed by the European 
Parliament at Second Reading either in whole, in part or in principle. 
In accordance with Article 189a paragraph 2 of the EC Treaty, the Commission's modified 
proposal incorporates these amendments. 
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AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL 
DIRECTIVE ON THE APPLICATION OF OPEN NETWORK PROVISION (ONP) 
TO VOICE TELEPHONY AND ON UNIVERSAL SERVICE FOR 
TELECOMMUNICATIONS IN A COMPETITIVE ENVIRONMENT 
(REPLACING EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 95/62/EC) 
Common Position Amended text 
Recital 6 
(based on EP amendment 2) 
Whereas the importance of the fixed public 
telephone network and service is such that the 
latter should be available to anyone reasonably 
requesting it; whereas, in accordance with the 
principle of subsidiarity, it is for Member States to 
decide which organizations have the responsibility 
for providing the universal service for 
telecommunications as defined in this Directive, 
taking into account the ability of organizations to 
provide it; whereas corresponding obligations 
could be included as conditions in authorizations 
to provide publicly available telephone services; 
whereas, in accordance with Article 5(1) of 
Directive 97/. ./EC of the European Parliament and 
of the Council on interconnection in 
telecommunications with regard to ensuring 
universal service and interoperability through 
application of the principles of Open Network 
Provision (ONP), Member States may establish 
mechanisms for sharing the net cost of the 
universal service obligations with other 
organizations operating public 
telecommunications networks and/or publicly 
available voice telephony services; whereas public 
telecommunications networks include both public 
fixed networks and public mobile networks; 
whereas national regulatory authorities should 
satisfy themselves that those organizations 
benefiting from universal service funding provide 
sufficient level of detail of the specific elements 
requiring such funding in order to justify their 
request; whereas the Commission has adopted 
guidelines on the costing and financing of 
universal service indicating the level of detail to be 
provided in such declarations bv operators; Whereas the importance of the fixed public 
telephone network and service is such that the 
latter should be available to anyone reasonably 
requesting it; whereas, in accordance with the 
principle of subsidiarity, it is for Member States to 
decide on the basis of objective and non­
discriminatory criteria which organizations have 
the responsibility for providing the universal 
service for telecommunications as defined in this 
Directive, taking into account the ability and, 
where appropriate the willingness of organizations 
to provide all or part of its element: whereas 
corresponding obligations could be included as 
conditions in authorizations to provide publicly 
available telephone services; whereas, in 
accordance with Article 5(1) of Directive 
97/33/EC of the European Parliament and of the 
Council on interconnection in telecommunications 
with regard to ensuring universal service and 
interoperability through application of the 
principles of Open Network Provision (ONP), 
Member States may establish mechanisms for 
sharing the net cost of the universal service 
obligations with other organizations operating 
public telecommunications networks and/or 
publicly available voice telephony services; 
whereas public telecommunications networks 
include both public fixed networks and public 
mobile networks; whereas national regulatory 
authorities should satisfy themselves that those 
organizations benefiting from universal service 
funding provide sufficient level of detail of the 
specific elements requiring such funding in order 
to justify their request; whereas the accounting 
methods and the level of detail to be used for the 
costing and financing of the universal service shall 
be monitored by the Commission in conformity 
with the applicable competition law and sector 
specific directives. 
Council Common Position Revised Proposal 
Recital 8 
(based on EP amendments 3,7 and 17) 
Whereas Member States shall, where appropriate, 
take suitable measures in order to guarantee the 
access to and affordability of fixed public 
telephone services for disabled users and users 
with special social needs; whereas this could 
include, where.appropriate, specific measures for 
blind, partially sighted, deaf or hearing-impaired 
people; Whereas Member States shall, where appropriate, 
take suitable measures in order to guarantee the 
access to and affordability of all fixed public 
telephone services for disabled users and users 
with special social needs; whereas this could 
include, where appropriate, specific measures for 
blind, partially sighted, deaf or hearing-impaired 
people; Whereas public pay telephone may include 
public pav text telephones for deaf or speech-
impaired people, whereas free access to directory 
enquiry services for disabled users, especially 
blind or partially sighted, is essential to guarantee 
their equal access to information available to the 
general public: whereas itemised "billing in 
alternative format should be available on request 
for blind and partially sighted people. 
Recital 14 
(based on EP amendment 5) 
Whereas price transparency should ensure that 
residential subscribers do not subsidize discounts 
to business customers; whereas certain obligations 
concerning tariffs and cost accounting systems 
will no longer be appropriate once competition is 
introduced and whereas others can be relaxed by 
the competent national regulatory authority as 
soon as competition achieves the desired 
objectives; whereas in all cases the 
non-discrimination requirements of the 
competition rules of Community law apply; 
whereas the requirement for unbundling does not 
prevent facilities from being combined in a tariff 
package; Whereas price transparency should ensure that 
residential subscribers do not subsidize discounts 
to business customers; whereas certain obligations 
concerning tariffs and cost accounting systems 
will no longer be appropriate once competition is 
introduced and whereas others can be relaxed by 
the competent national regulatory authority as 
soon as competition achieves the desired 
objectives; whereas in all cases the 
non-discrimination requirements of the 
competition rules of Community law apply; 
whereas the requirement for unbundling does not 
prevent facilities from being combined in a tariff 
package, provided this practice is not used to 
unduly restrict the users' freedom of choosing their 
suppliers for the different services they may wish 
to use: 
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Coined Common Position Revised Proposal 
Article 1(1) second subparagraph 
(based on EP amendment 6) 
The aims are to ensure the availability throughout 
the Community of good quality fixed public 
telephone services and to define the set of services 
to which all users, including consumers, should 
have access in the context of universal serviceJn 
the light of specific national conditions, at an 
affordable price. The aims are to ensure the availability throughout 
the Community of good quality fixed public 
telephone services and to define the set of sen-ices 
to which all users, including consumers, should 
have access in the context of universal service. 
Article 3(1), first subparagraph 
(based on EP amendment 10) 
Member States shall ensure that the services set 
out in this Chapter are made available to all users 
in their territory, independent of geographical 
location, and, in light of specific national 
conditions, at an affordable price as determined by 
them. Member States shall ensure that the services set 
out in this Chapter are made available to all users 
in their territory, indépendant of the geographical 
location, and, in light of specific national 
conditions, and at an affordable price. 
Article 4, second paragraph a (new) 
(based on EP amendment 11) 
2a. Member States may impose additional 
requirements concerning the provision of 
telecommunication services in accordance with 
Community law. Such additional requirements 
may not, under any circumstances whatever, have 
an impact on the costing of universal service 
provision as laid down at EU level and mav not be 
financed from a mandatory contribution bv market 
players, 
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Council Common Position Revised Proposal 
Article 10 
(based on EP amendment 15) 
National regulatory authorities shall ensure that 
organizations providing access to fixed public 
telephone networks and mobile public telephone 
networks provide a contract. The contract shall 
specify the service to be provided or shall make 
reference to publicly available terms and 
conditions. The contract or the publicly available 
terms and conditions shall at least specify the 
supply time for initial connection and the types of 
maintenance service offered, the compensation 
and/or refund arrangements for subscribers which 
apply if the contracted service is not met and a 
summary of the method of initiating procedures 
for the settlement of disputes in accordance with 
Article 26. 
National regulatory authorities or other competent 
bodies according to national legislation shall be 
able to require the alteration of the conditions of 
contracts referred to in paragraph 1 and the 
conditions of any compensation and/or refund 
schemes used insofar as they concern the 
provisions of this Directive in order to protect the 
rights of users and/or subscribers. National regulatory authorities shall ensure that 
organizations providing access to fixed public 
telephone networks and mobile public telephone 
networks provide a contract. The contract shall 
specify the service to be provided or shall make 
reference to publicly available terms and 
conditions. The contract or the publicly available 
terms and conditions shall at least specify the 
supply time for initial connection, the types of 
maintenance service and the level of quality of 
service offered, the compensation and/or refund 
arrangements for subscribers which apply if the 
contracted service is not met and a summary of the 
method of initiating procedures for the'settlement 
of disputes in accordance with Article 26. 
National regulatory authorities or other competent 
bodies according to national legislation shall be 
able to require the alteration of the conditions of 
contracts referred to in paragraph 1 and the 
conditions of any compensation and/or refund 
schemes used insofar as they concern the 
provisions of this Directive in order to protect the 
rights of users and/or subscribers. 
The Commission shall ensure that the alterations 
called for do not interfere with fair competition on 
the market, 
Article 12(1), first subparagraph 
(based on EP amendment 26) 
1. Member States shall be able, where they deem it 
necessary, to set the quality of services identified 
in this Directive for organizations providing fixed 
public telephone networks and/or fixed public 
telephone services. 1. Member States shall take the necessary 
steps to ensure the quality of services 
identified in this Directive for organizations 
providing fixed public telephone networks 
and/or fixed public telephone services. 
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Council Common Position Revised Proposal 
Article 14(1) first subparagraph 
(based on EP amendment 17) 
1. In order to ensure that users have access over 
fixed public telephone networks as early as 
possible to the facilities of: 
- tone dialling 
- itemized billing and selective call barring as 
facilities available on request, 
Member States may designate one or more 
operators to provide these facilities to most 
telephone users before 31 December 1998 and to 
ensure that they are generally available before 31 
December 2002. 1. In order to ensure that users have access over 
fixed public telephone networks as early as 
possible to the facilities of: 
- tone dialling 
- itemized billing and selective call barring as 
facilities available on request, 
national regulatory authorities may designate one 
or more operators to provide these facilities to 
most telephone users before 31 December 1998 
and to ensure that they are generally available 
before 31 December 2001. 
Article 15(4) 
(based on EP amendment 19) 
Where the facility of number portability, as 
referred to in Article 12(5) of Directive 97/ /EC 
on Interconnection, is not yet in use, national 
regulatory authorities shall ensure that, for a 
reasonable period after a subscriber has changed 
supplier, either a telephone call to his old number 
can be re-routed to his new number or callers are 
given an indication of the new number. 
National regulatory authorities shall ensure that 
any fees for the above facilities are reasonable. Where the facility of number portability, as 
referred to in Article 12(5) of Directive 97/33/EC 
on Interconnection, is not yet in use, national 
regulatory authorities shall ensure that, for a 
reasonable period after a subscriber has changed 
supplier, either a telephone call to his old number 
can be re-routed to his new number or callers are 
given an indication of the new number, without 
charging the user or the callers for this service. 
National regulatory authorities shall ensure that 
any fees for the above facilities are reasonable. 
10 
Council Common Position Revised Proposal 
Article 16(1) 
(based on EP amendment 20) 
Special network access 
1. National regulatory authorities shall ensure that 
the organizations with significant market power in 
the provision of fixed public telephone networks 
deal with reasonable requests from organizations 
providing telecommunications services for access 
to the fixed public telephone network at network 
termination points other that the commonly 
provided network termination points referred to in 
Annex II, part 1. Special network access 
1. National regulatory authorities shall ensure that 
the organizations with significant market power in 
the provision of fixed public telephone networks 
deal with reasonable requests from organizations 
providing telecommunications services for access 
to the fixed public telephone network at network 
termination points other that the commonly 
provided network termination points referred to in 
Annex II, part 1. This obligation may only be 
limited if there are technically and commercially 
viable alternatives to the special access requested. 
and that the requested access is inappropriate in 
relation to the resources available to meet the 
request, 
Article 28 
(based on EP amendment 21) 
Modifications necessary to adapt Annexes I, II 
and III to this Directive to technological 
developments or to changes in market demand 
shall be determined in accordance with the 
procedure laid down in Article 1Q. Modifications necessary to adapt Annexes I, II 
and III to this Directive to technological 
developments or to changes in market demand 
shall be determined in accordance with the 
procedure laid down in Article 22 
11 
Council Common Position Revised Proposal 
Article 30 
(based on EP amendment 22) 
Notwithstanding the provisions of Article 29. the 
following procedure shall apply in respect of the 
matters covered by Article 28. 
2. The representative of the Commission shall 
submit to the Committee a draft of the measures to 
be taken. The Committee shall deliver its opinion 
on the draft within a time limit which the 
Chairman may lay down according to the urgency 
of the matter. The opinion shall be 'delivered by 
the majority laid down in Article 148(2) of the 
Treaty in the case of decisions which the Council 
is required to adopt on a proposal from the 
Commission. The votes of the representatives of 
the Member States within the Committee shall be 
weighted in the manner set out in that Article. The 
Chairman shall not vote. 
3. The Commission shall adopt the measures 
envisaged if they are in accordance with the 
opinion of the Committee. 
If the measures envisaged are not in accordance 
with the opinion of the Committee, or if no 
opinion is delivered, the Commission shall, 
without delay, submit to the Council a proposal 
relating to the measures to be taken. The Council 
shall act by a qualified majority. 
If. on expiry of a period of three months from the 
date of referral to the Council, the Council has not 
acted, the proposed measures shall be adopted by 
the Commission, Deleted 
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ISSN 0254-1475 
COM(97) 531 final 
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ISBN 92-78-26066-5 
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