COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 09.12.1998 
COM(1998) 596 final 
GREEN PAPER ON RADIO SPECTRUM POLICY 
in the context of European Community policies such as telecommunications, 
broadcasting, transport, and R&D 
(presented by the Commission) 

Green Paper on Radio Spectrum Policy Executive summary 
GREEN PAPER RADIO SPECTRUM POLICY 
in the context of European Community policies such as telecommunications, 
broadcasting, transport, and R&D 
EXECUTIVE SUMMARY 
THE BACKGROUND: ECONOMIC AND POLITICAL IMPORTANCE OF RADIO SPECTRUM 
Radio spectrum is the backbone for a wide range of industrial activities in sectors including 
telecommunications, broadcasting, transport, R&D and services of general interest. It is 
therefore of considerable economic importance both in terms of market values and 
employment. Since many of these areas are covered by Community policies, the European 
Community has a substantial interest in the development of a consistent radio spectrum 
policy. 
Although the direct contribution of spectrum to the activities mentioned above may vary, radio 
spectrum is an essential and increasingly scarce resource. In economic terms, the value 
of radio spectrum is determined by the value of the services which can be provided over it. 
However, the value of radio spectrum is not a predominant factor commonly taken into 
account in spectrum management today. 
The means by which decisions are made and priorities established in respect of usage and 
users of radio spectrum is a key issue for the European Community for three main reasons: 
• The success of a number of important sector specific policies pursued by the 
European Community (telecommunications, broadcasting, transport, R&D, etc.) 
depends on radio spectrum being made available and adequately safeguarded. 
• Decisions on radio spectrum access must comply with a certain number of 
horizontal policies at Community level, notably with respect to supporting the 
development of the Internal Market, ensuring competition, and developing and 
preserving social standards and public interest at Community level. 
• With radio spectrum being increasingly used for commercial activities, the rules and 
commitments governing trade at international level of related goods and services 
need to be taken into account. These obligations are of relevance to the international 
commitments of the European Community and its Member States. 
OBJECTIVES AND KEY ISSUES: INTERESTS OF THE EUROPEAN COMMUNITY IN THE 
CONTEXT OF RADIO SPECTRUM 
From a European Community perspective, policy objectives associated with the 
availability of and access to radio spectrum include 
• to allow the development of new services to meet consumer and governmental 
demands for radio services; 
• to foster the development of the internal market for and competition in 
radiocommunications equipment and services, in particular in the context of the 
deployment and operation of pan-European and global systems and services; 
• to meef public policy objectives with regard to considerations such as safety, 
cultural and social aspects etc; 
• to safeguard the Community's interests in multilateral and bilateral negotiations 
where radio spectrum is discussed; 
1^ 
Green Paper on Radio Spectrum Policy Executive summary 
• to stimulate technological innovation and support European competitiveness 
• more broadly to develop economic growth, create employment, and promote 
general welfare. 
Bearing these general objectives in mind, certain key issues need to be considered in 
relation to the way in which radio spectrum is made available: 
s to secure radio spectrum availability for pan-European radio systems, services and 
equipment; 
s to ensure the appropriate balancing of commercial and public interest in radio 
spectrum policy; 
s to reflect the economic value of radio spectrum as a scarce commodity; 
s to provide legal certainty as regards radio spectrum availability and use; 
s to ensure open, transparent, objective, and non-discriminatory procedures in 
support of the competitive provision of radio services and equipment; 
s to ensure the efficient use of radio frequencies; 
s to ensure that radio spectrum regulation encourages competition and 
technological innovation; 
s to support the development of economies of scale for the introduction of new 
equipment which matches the needs of users; 
s to ensure coherence between radio spectrum and standardisation policies. 
THE FACTORS FOR CHANGE: 
THE EVOLVING CONTEXT FOR RADIO SPECTRUM POLICY 
Technological developments, market trends and the evolution of policy / regulation - all 
interrelated - have a substantial impact on the availability of radio spectrum and make both 
the search for radio spectrum for new applications and the harmonisation of radio spectrum 
usage increasingly complex. Many of these trends are still developing but already trigger the 
following changes: 
s The convergence of different services using radio spectrum and the development of 
new systems which aggregate ranges of different services call into question the traditional 
classification of spectrum users and the resulting conditions for spectrum access. 
s The globalisation of services and of market players (through alliances or world-wide 
business deployment) has introduced a new dimension to radio spectrum policy. 
s The growing share of commercial applications using spectrum, partly as a result of 
liberalisation, means that commercial applications now compete with non­
commercial ones (including with those resulting from public interest considerations) for 
radio spectrum access; applications from different sectors compete with each other 
for radio spectrum access. 
s Decisions on radio spectrum have a wide-ranging impact on the relative strength of 
market players, between players which use radio spectrum, but also between users of 
radio-based and non-radio based infrastructures. In the latter case the impact of spectrum 
decisions may go beyond spectrum access and cause major structural changes in 
markets. 
•s Decisions on radio spectrum usage influence the performance of societies not only in 
economic terms, but also increasingly with respect to industrial competitiveness and the 
capacity for innovation. 
ik 
Green Paper on Radio Spectrum Policy Executive summary 
THE CHALLENGE: ACHIEVING A CONSISTENT COMMUNITY RADIO SPECTRUM POLICY 
At Community level, several of the factors for change suggest that it is time to verify whether 
the present environment governing radio spectrum issues is suitable to preserve the 
European Community's interests and to reflect the need for a Community approach to radio 
spectrum policy. They include: 
s Coherence of radio spectrum access conditions for like services at Community 
level: In particular the globalisation of radio systems, i.e. the introduction of pan-European 
or global systems relying on radio spectrum, require an efficient spectrum management 
policy in order to avoid delay or unnecessary hurdles in the introduction and deployment 
of such systems resulting from unharmonised radio spectrum allocation throughout the 
Community. 
s Preserving the coherence of the existing Community regulatory environment: Some 
of the main sectors using radio spectrum are subject to Community regulations, as in 
telecommunications but also in some aspects of broadcasting. A fragmentation of 
planning, access and usage of radio spectrum makes it difficult to preserve a coherent 
regulatory framework at Community level. In the case of global systems using radio 
spectrum a coherent approach at Community level would strengthen the position of the 
European Community in international co-ordination and negotiation exercises. 
s A coherent and balanced approach across all sectors: Radio spectrum policy at 
Community level has to date evolved out of separate sector-specific consideration and, 
with the exception of telecommunications, as an issue not necessarily requiring specific 
regulation. A coherent and balanced approach across all sectors concerned needs to be 
considered so as to minimise conflict between radio spectrum aspirations of different 
sector-specific activities, notably where Community policies apply. 
s Radio spectrum in the context of the internal market: Existing radio spectrum 
management in CEPT has been traditionally pursued mainly on the basis of technical 
considerations. Given the increasing importance of commercial applications, market 
considerations need to be taken further into account. In the context of a growing market 
integration, radio spectrum policy, for example, on access conditions inevitably has a 
Community dimension, especially where spectrum users are global market players. 
Besides internal market considerations, issues such as the competitiveness of 
Community industry are at stake. 
s Radio spectrum in the global trade context: Increasingly, the European Community 
within the context of its responsibility for external trade matters is being approached by its 
main trading partners on the issue of radio spectrum. In order for it to be able to respond, 
the Community position on radio spectrum must be clearly defined, so as to be able to 
defend it, both in bilateral contacts and in the global organisations. 
io 
Green Paper on Radio Spectrum Policy Executive summary 
ISSUES FOR COMMENTS: KEY QUESTIONS 
Issues1 on which the present Green Paper requests comments are structured according to 
the different layers which are identified as key ones in the context of spectrum policy: 
1. Strategic planning of the use of radio frequencies 
The European Commission would welcome views on the strategic planning of the use of 
radio spectrum in the European Community, particularly as regards: the scope of and 
information needed for planning exercises; whether a political and legal commitment to 
plan radio spectrum for pan-European services is needed; and to what extent a 
harmonised Community approach is needed to develop and implement re-farming and 
substitution policies as part of the planning of frequency. 
2. Harmonisation of radio spectrum allocation 
The European Commission would welcome views on radio spectrum harmonisation in the 
European Community and the wider context; whether a priori Community agreement is 
required as regards the need for harmonisation measures and on the basis of what 
criteria this can be determined; and the level of legal certainty required with respect to the 
implementation of such measures by Member States. 
3. Radio spectrum assignment and licensing 
The European Commission would welcome views on radio spectrum assignment and 
licensing, particularly as concerns which mechanism is most suitable to secure the 
efficient use of radio spectrum and the harmonised introduction of pan-European services; 
the extent to which a common Community approach is required on the valuation and 
possible trading of radio spectrum as well as the possible costs of relocating existing radio 
spectrum users; and the level of legal certainty needed in the Community context. 
4. Radio equipment and standards 
The European Commission would welcome views on the link between Community policy 
on radio equipment, standards, and radio spectrum, with particular regard to the co­
operation between standards and radio spectrum management bodies and measures at 
the operational level of radio spectrum management. 
5. The institutional framework for radio spectrum co-ordination 
The European Commission would welcome views on whether the present institutional 
arrangements for radio spectrum co-ordination are appropriate to meet the Community's 
policy objectives on radio spectrum, i.e. to contribute to economic growth, employment, 
and welfare, to stimulate technological innovation and the development of new services, 
to foster competition in the internal market, and to strengthen European competitiveness 
in the establishment of pan-European and global radio systems. 
See detailed questions under these headings in chapter 4 of the Green Paper. 
IV 
id 
Green Paper on Radio Spectrum Policy Executive summary 
THE GENERAL CONTEXT OF THE GREEN PAPER: RELATED DEBATES 
The objective pursued with the proposed Green Paper is to identify how best to 
approach and implement Spectrum Policy at Community level. At the same time, the 
results from the Green Paper will also feed into several specific debates which are currently 
under way. 
The Green Paper on Convergence between telecommunications, media and information 
technologies already covered certain radio spectrum issues in respect of specific sectors. 
These findings will need to be put in context with respect to the overall approach for radio 
spectrum policy to be discussed in the present Green Paper. In return, the spectrum policy 
debate will profit from the convergence debate, e.g. when discussing the evolving category of 
uses and users or the definition of public interest in the areas subject to convergence. These 
results will be important in order to be able to recommend suitable modalities of accessing 
radio spectrum. 
For the telecommunications sector, the review of the effectiveness of the 
telecommunications regulatory framework ("99 Review") which is under preparation will use 
the findings of the radio spectrum debate to identify where existing regulation needs to be 
complemented or revised to help the implementation of a Community radio spectrum policy. 
In the transport sector, the Community is currently considering re-enforcing the European 
presence in the area of global navigation satellite systems (GNSS) which both enable the 
provision of services of public interest (navigation, positioning, timing) and which have 
considerable market potential. Potentially, these systems will also form the basis for a wide 
range of industrial / commercial activities. The allocation and protection of radio spectrum will 
need to be ensured in European and international negotiations in order to implement such an 
initiative. In the medium term, the Green Paper on Radio Spectrum Policy will help to identify 
how to accommodate in a practical way the specific needs of this sector in terms of co­
ordination modalities and protection of radio spectrum within the overall framework of a 
generic approach to radio spectrum policy, i.e. covering all sectors. 
The reflection of the issues raised by the present Green Paper will also help preparing in an 
optimal way for international negotiations on radio frequencies at the forthcoming World 
Radiocommunications Conference WRC-2000 The Commission has in an earlier 
Communication presented the major agenda items of this conference and indicated in detail 
how these relate to Community policies. The findings of the consultation on the present Green 
Paper will be used to help define Community positions on the critical issues of the conference. 
re 
Green Paper on Radio Spectrum Policy Table of Content 
TABLE OF CONTENT 
EXECUTIVE SUMMARY pages l-V 
1. INTRODUCTION 
THE ECONOMIC AND POLITICAL IMPORTANCE OF RADIO SPECTRUM 4 
2.1 The radio communications market 4 
2.2 Community policies involving radio spectrum 8 
2.3 Factors for change 10 
EU POLICY ON RADIO SPECTRUM: PRESENT SITUATION 
3.1 Defining EL) policy on radio spectrum 
3.2 Present practice of Community involvement in radio spectrum policy 
EU POLICY ON RADIO SPECTRUM: ISSUES FOR COMMENTS 
(1) Strategic planning of the use of radio spectrum 
(2) Harmonisation of radio spectrum allocation 
(3) Radio spectrum assignment and licensing 
(4) Radio equipment and standards 
(5) The institutional framework for radio spectrum co-ordination 12 
12 
13 
16 
16 
17 
18 
20 
21 
CONCLUSIONS 23 
ANNEX I European Community policies involving radio spectrum 
ANNEX II EU policy on radio spectrum 
ANNEX III List of Abbreviations pages l-VI 
pages l-IX 
pages l-ll 
V 
Chapter! Introduction 
1. INTRODUCTION 
The essential backbone for activities in European Community policy areas such as 
mobile and satellite communications, broadcasting, transport, R&D is the radio 
spectrum. These areas have developed over recent years into a key area of growth in the 
European Community. In view of the requirement of the Information Society for instantaneous 
access to and dissemination of information, irrespective of time or location, radio spectrum is 
becoming of increased importance for the development of the European economy. 
Demand for radio spectrum is increasing steadily due to technological, market, and 
regulatory developments. This is not counter-balanced by additional radio spectrum becoming 
available through the introduction of new and more efficient technologies (e.g. digital radio 
systems in the areas of broadcasting and mobile/personal communications). The 
consequence is that the scarcity of radio spectrum is increasing. Where the radio spectrum is 
congested, choices need to be made to balance the demand and supply for radio 
spectrum. 
The use of the radio spectrum is regulated. Since radio waves do not stop at borders, 
countries historically co-ordinate the use of the radio spectrum in the framework of the 
International Telecommunication Union (ITU), a specialised body of the United Nations. In 
World Radiocommunications Conferences (WRC) of ITU, 186 countries biannually adopt 
measures in order to achieve the international harmonisation of the use of the radio spectrum. 
This is necessary in order to achieve economies of scale for the production of radio 
equipment, to facilitate the global availability of services, and to avoid that that the 
transmissions by one user do not cause unacceptable interference to use by another. Further 
detailed co-ordination takes place at the regional and national level. 
In Europe, 43 countries, including the Member States, co-ordinate the use of the radio 
spectrum in the framework of the European Conference of Postal and 
Telecommunications administrations (CEPT). Also CEPT adopts harmonisation measures 
which its member countries implement on a voluntary basis. Both ITU/WRC and CEPT cover 
all uses of the radio spectrum, including for telecommunications, broadcasting, transport, and 
R&D. 
With the exception of radio spectrum availability for mobile and personal communications, in 
which areas Community legislation exists, the European Community mainly relies on the 
work undertaken in ITU/WRC and CEPT to achieve the harmonisation of radio spectrum 
necessary for the pan-European and global provision of services and equipment. The 
assignment of radio spectrum to individual users is done at the national level, subject to 
certain conditions agreed in the World Trade Organisation (WTO) and in the European 
Community. 
As demand for radio spectrum has increased, the co-ordination and management tasks 
have grown more complex as compared to the past. Previously, countries co-ordinated 
the use of the radio spectrum on behalf of a relatively limited number of radio users and on the 
basis of technical considerations, i.e. for the defence sector and for public telecommunications 
and broadcasting organisations, which were mainly active at the national level. 
The environment for radio spectrum policy has changed significantly. Radio services 
and equipment are developed for global rather than national markets. The traditional users 
of radio spectrum providing public services at the national level are now in competition for 
radio spectrum use with increasing numbers of global commercial players, particularly in 
the areas of telecommunications and broadcasting. Radio spectrum availability is emerging as 
a key issue in trade negotiations.. All these developments point to the need for international 
co-operation on radio spectrum policy issues in order to facilitate the international 
introduction and provision of services and equipment. It is therefore essential to ensure 
> 
Chapter I Introduction 
that the interests of the European Community and all off Member States are fully taken into 
account where radio spectrum availability is discussed. 
As a result of the changing environment for radio spectrum policy, the main challenges the 
European Community is facing include the following: 
> The strategic planning of the use of the radio spectrum now needs to take into 
account the varying interests and requirements of an increased number of new 
systems and commercial and non-commercial players acting at the global level. 
> Due to globalisation, the allocation and harmonisation of the use of the radio 
spectrum increasingly requires international co-operation but countries and radio 
spectrum users attach different priorities as for which services harmonised 
radio spectrum should be internationally available. The balancing of the various 
interests between commercial and non-commercial uses as well as between the 
priorities of individual countries goes beyond the technical management of radio 
spectrum. Recent experience at ITU/WRC negotiations has shown that where the 
European Community is not united and where the proposals are not politically 
supported, common objectives are difficult to be pursued. 
> The assignment of radio spectrum to individual users should be done under 
reasonable conditions. However, demand for radio spectrum has increased to such 
an extent that administrations increasingly require users to pay a price for the 
use of the radio spectrum so as to reflect the market value and the actual need for 
the service to be provided. This approach is criticised since it may hamper 
technological innovation and competition and may possibly lead to increased 
consumer prices. The introduction and international provision of services might be 
hindered since licenses need to be obtained in individual countries which in 
addition may deploy different radio spectrum award mechanisms and conditions. 
> The availability and use of radio equipment across borders is subject to the extent to 
which radio spectrum is harmonised and common standards are available so as to 
ensure interoperability. The importance of monitoring the use of radio equipment 
and the surveillance of markets is increasing and will require a considerable effort 
from the part of administrations in co-operation with industry and radio spectrum 
users. 
> The institutional arrangements for the co-ordination, planning, and harmonisation of 
the use of radio spectrum were set up to deal with the requirements of a limited 
number of players. With the liberalisation and globalisation of the radio market, these 
institutional arrangements have come under pressure from commercial 
interests which pursue interests which not necessarily coincide with those of the 
administrations representing them in the organisations concerned. Furthermore, the 
balancing of the various national interests renders the achievement of radio 
spectrum harmonisation difficult and may result in a legally uncertain situation 
regarding radio spectrum availability and harmonisation. 
This Green Paper is aimed to initiate a public debate on the question whether the present 
practice of radio spectrum policy can deal with the described challenges or whether change is 
needed in order to meet the European Community's policy objectives: 
> to facilitate technological innovation and competition through flexible but firm 
planning of the use of radio spectrum and through the appropriate assignment of radio 
spectrum by administrations; 
Chapter! Introduction 
> to establish a predictable and legally certain regulatory framework for the co­
ordination of the use of radio spectrum which is transparent and which responds to 
the needs of commercial and non-commercial interests across sectors, inter alia as 
concerns telecommunications, broadcasting, transport, and R&D; 
> to ensure an appropriate representation and balancing of interests of the 
individual Member States and of the European Community in the decisions to be 
taken in the area of radio spectrum; and 
> to strengthen the position of the European Community in the global market for 
radio services and equipment by combining the necessary technical and political 
strengths of the Member States and the European Community. 
All concerned parties - radio spectrum users, services providers using radio spectrum, 
equipment manufacturers, public authorities, sector-specific organisations, consumers - are 
invited to contribute their comments and views. On the basis of the comments received, the 
Commission intends to produce a Communication to report and to draw first conclusions. 
All interested parties are invited to contribute to the debate by responding to the issues raised 
in this Green Paper and by making any submission they wish on the subject 15 April 1999. 
Submissions may be sent preferably via E-mail in HTML format to2: 
European Commission, DGXIII/A 
Attn. Mr. R. Niepold 
200 rue de la Loi, BU31 2/52 
B-1049 BRUSSELS 
Belgium 
e-mail: spectrum.greenpaper@bxl.dg13.cec.be 
Fax: (+32 2) 29 68 395 
Unless explicitly specified by their authors, all submissions will be considered public documents and will be 
made available through Spectrum Green Paper Web-page (http:// ). While electronic submission in HTML 
format are strongly encouraged, fax or ordinary mail contributions can alternatively be accepted (4 copies 
please). 
Chapter 2 The economic and political importance of radio spectrum 
2. THE ECONOMIC AND POLITICAL IMPORTANCE OF RADIO SPECTRUM 
The aim of chapter 2 is to highlight the economic and political importance of radio 
spectrum and to provide the basic elements governing the European Community approach to 
radio spectrum policy. 
This chapter gives an overview of the growing number of applications and sectors relying on 
the availability of radio spectrum and highlights the economic importance of radio spectrum 
activities (section 2.1). Technological, market, and regulatory developments are changing the 
ways radio spectrum is used as well as the context for radio spectrum policy making (section 
2.2). The implementation of a number of sector-specific Community policies depends on radio 
spectrum availability but their radio spectrum requirements are addressed in different policy 
frameworks; in addition, horizontal European Community legislation applies (section 2.3). 
2.1 The radiocommunications market 
Radio spectrum3 is the wireless infrastructure for a large number of activities. Each 
radio application, for example garage door openers, baby monitors, cellular telephones, 
global positioning systems, has its own frequency band within the radio spectrum 
although much of it is used on a shared basis. The location and amount of radio 
spectrum allocated for each service may differ significantly between countries, 
depending on the national need for and importance given to the various radio-based services. 
Only a relatively small amount of the actual use of the radio spectrum is harmonised among 
countries. The international availability of the same service depends on the extent to 
which the use of the radio spectrum is harmonised. 
Certain frequency bands are better suited for particular radiocommunications services than 
others and are relatively easy to exploit using existing technologies. Actual use and demand 
for certain frequency bands has created or will soon create a situation of congestion: demand 
for frequencies is greater than what is available. Therefore, choices need to be made. 
Other frequency bands are currently less valuable because they are useful for fewer services, 
or because they can only be exploited at increased cost or following technological innovation. 
The issue of congestion might not present itself in these frequency bands. 
Like for all scarce resources, trade-offs have to be made when deciding which uses and 
users should be awarded radio spectrum. In radio spectrum policy, such trade-offs may 
include the following: 
s New entrants are awarded frequencies on the condition that they share the 
frequencies with existing users. However, sharing may require the deployment of 
more costly techniques for both parties as compared to the case where radio 
spectrum is made available to users on a primary/exclusive basis. 
A radio wave is an electromagnetic wave propagating between a transmitting and a receiving antenna. Radio 
waves are characterised by their frequency, and by tuning a radio receiver to a specific frequency one can 
pick up a specific signal. Regulatory authcrities decide who is able to use what frequency band for what 
purpose, and issue licenses for specific services. Frequency bands define the specific location of services in 
the radio spectrum. 
Chapter 2 The economic and political importance of radio spectrum 
s The incumbent radio spectrum user is moved to less congested parts of the radio 
spectrum in order to make room for new users. This is known as 're-farming' of 
radio spectrum and is associated with a relocation of the incumbent user. 
Obviously, the incumbent user is forced in this situation to replace or adapt existing 
equipment in order to comply with the different characteristics of the frequency bands 
he is moved to. In some countries, the new entrant may be requested to pay a 
financial contribution in this respect. 
s The incumbent radio spectrum user has to move out of the radio spectrum altogether. 
In the latter case, an option could be to use alternative transmission media (i.e. 
'substitution' of transmission technology). Also in this case, the incumbent user has 
to invest in alternative transmission equipment. 
S Where sharing with, or re-farming/relocation and substitution of incumbent users is 
technically not possible or politically not desirable, access to frequencies by new 
entrants may not be granted. 
Although not exhaustive in its scope of the use of radio frequencies, the following table 
provides an overview of the various types of radio applications which, for the main part, are 
subject to some kind of authorisation to use radio equipment or to provide radio-based 
services. 
Table 1 : Radio-based sectors and activities4 
I I > Telephony (GSM, DCS, DECT, S-PCS, IMT2000/UMTS, WLL, CB) 
> Paging (ERMES, Pocsag, FLEX) 
Telecommunications ^ Wireless multi-media/Internet (UMTS, satellite broadband, LMDS, 
MMDS) 
> Data transmission (GSM, IMT2000 / UMTS, satellite broadband, FS) 
> Private business radio (PMR, TETRA) 
> Terrestrial TV (analogue/digital - free to air, pay TV) 
> Satellite TV (analogue/digital - free to air, pay TV, NVOD) 
Broadcasting ^ Ancillary services (Teletext and home banking, Teleshopping, for 
.digital TV) 
> Radio (analogue/digital) 
> Airtransport (traffic control, navigation) 
Transport > Maritime transport (GMDSS, VTMIS) 
> Road transport (RTT systems) 
> Rail transport and inland waterways (localisation) 
~> Defence (communication & control, radar) 
> Emergency (police, fire departments) 
Government ^ Law enforcement (TETRA; earth observation) 
> Space science (e.g. Earth observation, radio astronomy, radio 
navigation) 
> Applications deriving from Commitments under international I 
conventions (navigation aids, positioning and timing; environment) J 
See Annex I for a detailed description of European Community policies in these areas. 
Chapter 2 The economic and political importance of radio spectrum 
R&D > Earth observation 
> Radio astronomy 
There is no comprehensive information available for the European Community as a whole on 
which radio services are located in the various parts of the radio spectrum and which amounts 
of frequencies these services have at their disposal. Insofar as it is available, such information 
can only be found at the national level, as can be illustrated by the following example. 
Table 2: Allocation of radio spectrum by services (United Kingdom)5 
Telecommunications 
> Mobile and cellular communications 
> Fixed services (PTO and private fixed 
services) 
> Fixed links 
> Satellite 
Broadcasting 
(incl. services ancillary to broadcasting) 
Transport 
> Civil Aviation/aeronautical 
> Maritime 
Government 
> Defense 
> Emergency services 
> Space observation 
Other 9 kHz to 1 
GHz 
23% 
— 
„ 
.. 
40% 
3% 
~ 
29% 
2% 
~ 
3% 
100% 1 GHz to 3 
GHz 
7% 
26% 
„ 
„_ 
12% 
14% 
2% 
31% 
3% 
2% 
3% 
100% 3 GHz to 30 
GHz 
-
~ 
38% 
5% 
3% 
4% 
-
38% 
~ 
~ 
12% 
100% 
The economic contribution of radio-based services and equipment to the EU economy is 
difficult to determine in a comprehensive manner. For example, the provision of mobile and 
audio-visual services entirely depend on radio spectrum availability. The economic 
output of these sectors may. therefore be used as indicators for the economic relevance of 
radio spectrum in European and global markets, while taking account of the non-economic 
benefits to society resulting from the strategic, public, and cultural use that is made of radio 
5 Source: Approaches to the allocation and assignment of the radio spectrum resource, Report for the European 
Commission, NERA, Smith System Engineering, KPMG, November 1997. 
Chapter 2 The economic and political importance of radio spectrum 
spectrum for non-commercial purposes such as defence, emergency services, and for 
universal services in the areas of telecommunications and broadcasting. 
Table 3: Estimated market and market forecasts (BECU): telecommunications, mobile 
and satellite communications, broadcasting (and audio-visual), and radio navigation 
I Estimated market Market forecast 
Telecommunications 150.7 162.2(1998) 
(EEA, 1997)6, of which 
(172.3 (1999) 
~> Fixed service 98Tl 101.0(1998) 
. 103.9(1999) 
__ ______ __ 29.7 (1998) ~~ 
33.6(1999) 
_ ________ __ 31.4(1998) 
34.8 (1999) 
Satellite communications 62 
(world, 2005)7 . 
> Mobile Satellite Service (MSS) (world)8 1 (2000) 
7.2 (2005) 
24.1 (2010) 
Audio-visual services 41.5 46.8(2000) 
(EU, 1995)9, of which 59.0 (2005) 
/ ; [ 71.4(2010) 
> Content provider revenues (EU, 1995)10 8.9 16.1 (2005) 
> Annual pay TV revenues (Europe, 1997)11 5 22 (2005) 
> Public broadcasting revenues (revenues from TV 14 
licence fees, advertising and sponsoring) (EU, 1996)12 
> Radio sector (license fees and advertising revenue) (5 
Radionavigation services and equipment13 4 (2000, Europe) 
40 (2005, world) 
10 
u 
12 
13 European Information Technology Observatory 98, Yearbook for the Information and Communications 
Technology (ICT) industry in Europe, 1998, page 350. 
Via Satellite, September 1998. Global Satellite Telecommunications Review. Joe N. Pelton and the Global 
Satellite Communications Review Panel, page, 19. 
Global Mobile, Volume 5, Baskerville Communications Corporation, 9 July 1998, page 12. 
Market developments of telecommunications and integrated communications services to the year 2010, IDATE, 
December 1997, pages 14 and 175. 
Norcontel, Economic Implications of New Communication Technologies on the Audio-Visual Markets. April 
1997, page 6. 
N. Bertolotti for JP Morgan Securities Ltd, The European Pay-TV Industry, January 1998. See Commission Staff 
Working Paper on WRC-99, page 7. 
Source: EUROSTAT 
Communication by the Commission :* Towards a Trans-European Positioning and Navigation Network, including 
a European Strategy for Global Navigation Satellite Systems (GNSS) COM(98)29,final, 21.1.1998, page 15. 
Chapter 2 The economic and political importance of radio spectrum 
2.2 Community policies related to radio spectrum 
A number of sector-specific Community policies rely on the availability of radio 
spectrum, particularly in the areas of telecommunications, broadcasting, transport and 
R&D (see Annex I for an outline of the main policies). However, the political context in 
which radio spectrum availability for such policies are addressed differs significantly 
from sector to sector. 
s In the telecommunications sector, especially where pan-European or global systems are 
concerned (e.g. mobile and mobile-satellite services), political and legislative agreement 
is established in, the European Community as concerns the harmonised availability of 
radio spectrum.14 Furthermore, the provision of services is governed by Community rules 
on licensing which aim to promote technological innovation and competition. The number 
of telecommunications applicants seeking radio spectrum has increased significantly due 
to technological innovation and the global liberalisation of telecommunications markets. 
This trend is reflected in the growing importance of international negotiations on frequency 
harmonisation.15 
s In contrast, radio spectrum availability for broadcasting has so far not been addressed in 
the European Community as an issue requiring political or legislative action, partly 
because sufficient radio spectrum was made available by Member States before 
broadcasting began to take on an increasingly commercial orientation. However, the 
interrelation between radio spectrum availability and the Community policy on the free 
movement of radio and TV programmes has been manifest since the arrival of 
transfrontier satellite TV, which prompted the Television without Frontiers Directive. Apart 
from the general growth of broadcasting and audio-visual markets, the boundaries 
between telecommunications and broadcasting are converging and challenge the 
historical availability of radio spectrum for these activities.16 Competition for scarce and 
valuable radio spectrum between broadcasters and other potential users is likely to 
intensify. 
14 Communication to the Council and for information to the European Parliament, the Economic and Social 
Committee and the Committee of the Regions on the implementation and functioning of the mobile 
communications frequency Directives, COM(1998)559, 09.10.1998. 
15 Communication from the Commission to the European Parliament and the Council on radio frequency 
requirements for Community policies in the context of the World Radiocommunications Conference 1999 (WRC-
99), COM(1998)298, 13.05.1998. Commission Staff Working Paper on issues at the World 
Radiocommunications Conference 1999 (WRC-99) in the context of Community policies, SEC(1998)839, 
12.05.1998. It should be noted that, after the publication of these documents, it was decided to hold the next 
WRC in the year 2000; this has, however, no effect upon the substance of the documents. 
16 Green Paper on the convergence of the telecommunications, media and information technology sectors, and 
the implications for regulation - towards an Information Society approach, COM(97)623, 03.12.1997. See in 
particular: Summary of the results of the public consultation on the Green Paper on the convergence of the 
telecommunications, media and information technology sectors: areas for further reflection, SEC(98)1284, 
29.07.1998. The comments showed widespread concerns about the possible auctioning of radio spectrum, 
accompanied by assertions that this would raise market entry barriers and lead to increased prices for 
consumers. Others pointed out the risk of discrimination either by favouring incumbents or by treating sectors 
differently. The issue of whether dates should be set or co-ordinated at a European level for the switching-off of 
analogue broadcast services attracted considerable comment from broadcasters, equipment manufacturers, 
consumer groups and Member States. Opinion was split between those who saw any transition from analogue 
to digital broadcasting as market-led, and not requiring government or EU level intervention, and those who 
considered that a deadline set at a' national level would be a useful stimulus to the development of digital 
broadcasting in the EU. Further details will be dealt with in chapter 4 of this Green Paper. 
Chapter 2 The economic and political importance of radio spectrum 
s The European Community has so far not adopted specific measures to secure radio 
spectrum availability for the implementation of its transport policies (i.e. air and maritime 
transport, radio navigation and positioning). These policies benefit from radio spectrum 
being available on an almost exclusive and international basis to ensure safety-of-life 
communications of air and maritime transport. However, this situation has come under 
pressure as a result of the increased demand for radio spectrum. For instance, providers 
of commercial mobile satellite services have proposed to share radio spectrum reserved 
for navigation and positioning applications. It was decided, however, that the need to 
ensure the interference-free operation of such applications should prevail. The possibility 
of developing a European component to the global navigation satellite system means that 
full account need to be taken of the need to secure and protect radio spectrum, and this 
has been endorsed by the Council. 
s In the area of R&D (e.g. Earth observation and radio-astronomy), radio spectrum 
availability has not been addressed as a matter requiring legislative or political action. 
However, radio spectrum which historically has been available for such applications has 
come under pressure, either because new entrants wish to use the radio spectrum 
available for R&D or because interference from other services has increased to such an 
extent that the performance of R&D activities becomes technically difficult. 
Considering that demand for certain frequency bands exceeds supply, the implementation 
of the EU policies mentioned above is faced with the situation where radio spectrum 
availability can no longer be taken for granted. Therefore, radio spectrum availability 
needs to be addressed as a key issue in the EU decision-making process. Furthermore, 
where trade-offs need to be made as regards which services should receive priority in 
accessing and using radio spectrum, the various interests involved need to be carefully 
balanced in a coherent manner. 
Irrespective of the specific use of radio spectrum, horizontal EU policies and legislation 
are relevant (e.g. competition, internal market, standardisation/certification of radio equipment, 
consumer protection). 
s The aim of the Community's competition rules is to ensure that choices with regard to 
the attribution of radio spectrum do not privilege technical solutions at the expense of 
competing technologies, which could better match user needs, and do not limit 
production, output or technical development in the sense of Article 86 of the Treaty. 
Competition rules have to be considered also in relation to the use of radio spectrum, 
notably when public interests are involved in the context of Article 90. In the areas of 
broadcasting and transport, for instance, it is becoming increasingly difficult to define the 
boundary between public and commercial services. 
s As regards internal market considerations, radio spectrum availability affects the scope 
for the pan-European provision and free movement of services and equipment. The 
harmonisation of the use of radio spectrum is particularly important in this context to 
facilitate the introduction of pan-European and global systems and to realise the 
economies of scale necessary to make European industry competitive in world markets. 
With regard to the latter point, standardisation and type approval policies need to be taken 
into account. 
s The Community's consumer policy should be seen as a flanking policy to the 
establishment of the internal market and stresses the benefit to all consumers of greater 
choice and diversity, including as regards the availability of radio services and products 
which meet consumer demand and needs. Consumer * health protection against 
electromagnetic radiation is also becoming an important issue which is undergoing 
extensive research and requires a transparent and harmonised approach in order to 
secure safe use of radio services and to avoid conflicting national policies in this regard. 
Chapter 2 The economic and political importance of radio spectrum 
Action has been initiated in the European Community in the context of health and R&D 
policies to examine the possible health effects related to the use of the radio spectrum so 
as to ensure consumer confidence in radio services and products. 
Radio spectrum has been addressed as an important issue in international negotiations 
on the liberalisation of trade in telecommunications. 
s In accordance with the agreements established in the World Trade Organisation (WTO), 
member countries have to manage radio spectrum in a manner which is objective, 
transparent, non-discriminatory and no more burdensome than necessary. Furthermore, 
they are committed to make publicly available the current state of allocated frequency 
bands. It follows that any regional or national radio spectrum management measure 
which has the purpose or effect of blocking, or unreasonably limiting, market 
access for operators from other WTO member countries in a discriminatory manner 
would violate the agreement established in WTO since discriminatory, anti-competitive 
or arbitrary frequency management decisions are outlawed. These international 
commitments need to be taken into account where third-country operators seek 
access to the European Community market and where Europe's industry seeks 
access to the global market. 
In conclusion, the establishment of agreement on the EU policies to be pursued on 
telecommunications, broadcasting, transport, and R&D needs to carefully balance 
economic, political, social, and cultural interests. It is therefore important to ensure 
that the trade-offs to be made at a technical level take full account of this. This is 
particularly important considering that radio spectrum availability cannot be taken for granted 
due to the increase of applications vying for the use of the radio spectrum. 
2.3 Factors for change 
Radio spectrum policy has become more complex due to rapid technological 
developments, the introduction of new services (e.g. broadband multimedia), the evolution of 
markets, and policy and regulatory changes. These trends are often interrelated and their 
relative weight is taken into account to varying degrees when trade-offs are made in deciding 
to which uses and users radio spectrum should be put. 
The major factors which have transformed perceptions of radio spectrum policy are 
described below. 
Technological developments 
s Services using spectrum are in many cases converging (fixed-mobile 
telecommunications, broadcasting with telecommunications and IT-sector). This has 
several consequences: (a) traditional radio systems offer new types of services (e.g. 
broadcasters offering Internet-services, telecommunications operators offering video 
services, military using civil radiocommunications applications); (b) the traditional 
definitions on the basis of which radio spectrum is distributed are called into question as is 
the current distribution of radio spectrum among service categories and users (e.g. the 
mobile telephony service traditionally regulated as a telecommunications service is 
evolving towards a mobile multi-media service with a greater focus on content). 
* Technological developments lead to the development of new services which require 
certainty as regards the future availability of radio spectrum in order for investment 
decisions to be made. Furthermore, substitution phenomena are encountered (e.g. 
cable/satellite broadcasting offers a wider choice of service than terrestrial broadcasting) 
10 
Chapter 2 The economic and political importance of radio spectrum 
which could result in a different use of radio spectrum by new or more spectrally 
efficient systems and services. 
s New systems are proposed which aggregate a range of services. For example, 
mobile and satellite broadband communications systems, as planned to be introduced in 
the near future, combine traditional services such as telephony, data transmission, 
internet distribution, and positioning. 
Market developments 
s The increasing demand for radio spectrum is not counter-balanced by additional 
radio spectrum becoming available as new technology can stretch-up the availability of 
usable radio spectrum. In order to distribute the limited radio spectrum available for 
certain applications in a transparent manner on the basis of objective criteria, some 
regulatory authorities deploy pricing mechanisms with the aim to reflect the market value 
of radio spectrum. The valuation of radio spectrum therefore becomes relevant in 
decisions on radio spectrum, although experience with such approaches is still rather 
limited. 
s The trend is towards global systems which require the formation of global alliances of 
players to cope with the significant investment and operational demands (e.g. obtaining 
access to frequencies and national licences, provision of services). Radio spectrum policy 
will need to take account of this trend and .regulatory action should support the 
harmonised introduction of such systems and ensure appropriate involvement in their 
development and deployment. 
Policy and regulatory developments 
v The share of commercial applications using radio spectrum is growing following in 
particular the liberalisation of telecommunications markets. This puts pressure on the 
availability of radio spectrum for other applications of importance to the public 
interest (emergency services, transport). Setting priorities as to who should be allowed 
access to spectrum can no longer be taken solely on the basis of technical information but 
requires careful balancing of interests taking economic and political factors into account. 
s Decisions on radio spectrum availability and use may impact on the relative strength 
of market players and on the level of competition in markets. This is not only the case 
with respect to radio services (similar services or services of a different nature) competing 
for access to radio spectrum. Decisions on spectrum access may also significantly impact 
on the relative market strength of players offering comparable services albeit through 
competing radio and non-radio infrastructures (e.g. fibre vs. satellite communication; wired 
local loop vs. wireless local loop). 
s Radio spectrum is relevant to trade since market access for radio activities cannot be 
realised without access to radio spectrum. Trade aspects in the context of radio 
spectrum are gaining momentum with the general trend towards thé liberalisation of 
international trade in goods and services, which, for a large part, relies on the availability 
of radio spectrum. 
s A significant number of spectrum users do not operate in a commercial environment, but 
have to compete with commercial users when obtaining spectrum. A key regulatory task is 
to find the balance between certain well-defined public/non-commercial uses of 
radio of radio spectrum and the need for radio spectrum as an essential resource 
for doing business. 
s Radio spectrum use represents a significant and growing economic activity. The impact of 
radio spectrum availability on the performance of society in terms of employment, 
industrial competitiveness and capacity for innovation has significantly increased as 
compared to the past. 
11 
Chapter 3 EU policy on radio spectrum: present situation 
3. EU POLICY ON RADIO SPECTRUM: PRESENT SITUATION 
The aim of chapter 3 is to describe the European Community's policy objectives with 
regard to radio spectrum (section 3.1) and to explain the present practice of Community 
involvement in radio spectrum matters with regard to the strategic planning of radio 
spectrum availability, radio spectrum harmonisation, the assignment and use of radio 
spectrum, radio equipment and standards, and the institutional framework for the co­
ordination of radio spectrum (section 3.2). 
A detailed description of the present practice of EU policy on radio spectrum, including as 
regards its political and legal base, is given in Annex II. 
3.1 Defining EU policy on radio spectrum 
The economic, social, or political value of radio spectrum depends on the actual use 
that is made of this bottleneck facility and on how it is managed. EU policy on radio 
spectrum is concerned with both dimensions. 
Irrespective of whether radio spectrum is used for Community policies on telecommunications, 
broadcasting, transport, or R&D, the main objectives to be achieved with radio spectrum 
are the following. 
• to allow the development of new services to meet consumer and governmental 
demands for radio services; 
• to foster the development of the internal market for and competition in 
radiocommunications equipment and services, in particular in the context of the 
deployment and operation of pan-European and global systems and services; 
• to meet public policy objectives with regard to considerations such as safety, 
cultural and social aspects etc; 
• to safeguard the Community's interests in multilateral and bilateral negotiations 
where radio spectrum is discussed; 
• to stimulate technological innovation and support European competitiveness, 
• more broadly to develop economic growth, create employment, and promote 
general welfare. 
Wthin this context, the European Community has specific responsibilities to ensure that 
the management of radio spectrum is done in accordance with vested legal principles, 
such as openness, transparency, objectivity, and non-discrimination, as well as with the 
Community's competition rules. 
Bearing these general objectives in mind, certain key issues need to be considered in 
relation to the way in which spectrum is made available: 
s to secure radio spectrum availability for pan-European radio systems, services and 
equipment; 
s to ensure the appropriate balancing of commercial and public interest in radio 
spectrum policy; 
12 
Chapter 3 ' EU policy on radio spectrum: present situation 
s to reflect the economic value of radio spectrum, 
s to provide legal certainty as regards radio spectrum availability and use; 
s to ensure open, transparent, objective, and non-discriminatory procedures in 
support of the competitive provision of radio services and equipment; 
s to ensure the efficient use of radio frequencies; 
s to ensure that radio spectrum policy encourages competition and technological 
innovation, 
S to support the development of economies of scale for the introduction of new 
equipment which matches the needs of users; 
s to ensure coherence between radio spectrum and standardisation policies. 
3.2 Present practice of Community involvement in radio spectrum policy 
In 1987, the European Community for the first time acknowledged the need for the 
harmonisation of radio spectrum for the provision of pan-European mobile services. Since 
then, a number of initiatives have been taken to implement the aims of EU radio spectrum 
policy in the following areas: 
1. The strategic planning of the use of radio spectrum: when will radio spectrum be 
available? 
2. The availability and harmonisation of radio spectrum: how much radio spectrum 
will be available and will its use be harmonised? 
3. The assignment of radio spectrum: how is radio spectrum assigned, how can it be 
obtained, and under what conditions? 
4. Radio equipment and standards: what are the rules and conditions for the 
marketing and use of radio equipment, including as regards standards? 
5. Institutional framework: where are the decisions made and what is the role of the 
European Community? 
The political and legal base for the involvement of the European Community vary in these 
areas, as shown in the following table. The present practice of Community involvement in 
these areas is summarised below (see Annex II for a detailed description of EU policy on 
radio spectrum). 
13 
Chapter 3 EU policy on radio spectrum: present situation 
Table 4: Political and legal base for Community involvement in radio spectrum policy 
Political base Legal base 
Planning of the use > Councif Resolution 90/C 166/02 > Directive 87/372/EEC (GSM) 
of radio spectrum > Directive 90/544/EEC (ERMES) 
> Commission Directive 96/2/EC 
Harmonisation of > Council Resolution 90/C 166/02 > Directive 87/372/EEC (GSM) 
radio spectrum > Council Resolution 92/C 318/01 > Directive 90/544/EEC (ERMES) 
allocation > Directive 91/287/EEC (DECT) 
> EP and Council Decision on S-
PCS 
> Proposal for an EP and Council 
- Decision on UMTS 
Radio spectrum - > ONP Framework Directive 
assignment 97/51/EC 
J > Commission Directive 96/2/EC 
^ > Licensing Directive 97/13/EC 
Radio equipment and > Council Resolution 90/C 166/02 > Proposal for an EP and Council 
standards Directive on radio and 
| telecommunications terminal 
equipment (RTTE) 
Framework for radio > Council Resolution 90/C 166/02 
spectrum co- > Council Resolution 92/C 318/01 
ordination > Council Conclusions of 3 
February 1992 
> Council Conclusions of 7 
December 1993 
> Council Conclusions of 22 
September 1997 
The strategic planning of radio spectrum availability 
s The longer-term planning, development, and marketing of pan-European radio services 
and products depends on the availability of radio spectrum. Under European Community 
Directives, Member States are obliged to plan and publish radio spectrum 
availability, particularly for mobile and personal communications services. 
Furthermore, by means of Council Resolutions, the European Conference of 
Telecommunications administrations (CEPT) is requested to recommend to regulatory 
authorities or to the Community long-term requirements for the radio spectrum and to 
achieve a better-balanced allocation of radio spectrum between its various uses. 
The strategic planning of radio spectrum availability in the context of Community policies 
is particularly needed in the areas of mobile and satellite communications (mobile and 
satellite broadband systems), broadcasting (the switch from analogue to digital 
transmission), and transport (the establishment of a global navigation satellite system, 
GNSS). 
Securing the harmonised availability of radio spectrum 
s Radio spectrum harmonisation is achieved by means of frequency allocation measures, 
i.e. measures which identify frequencies for the provision of defined services as well as 
the technical conditions to be taken into account. Frequency harmonisation has been 
achieved in the European Community through the adoption of Directives on GSM, DECT, 
and ERMES. The harmonised availability of radio spectrum for S-PCS and (in future) 
14 
Chapter 3 EU policy on radio spectrum: present situation 
UMTS is achieved through the adoption of Council and European Parliament 
Decisions which refer to the Member State co-ordination in the CEPT framework. In case 
work in CEPT or the implementation by Member States is not satisfactory, further action 
at Community level can be taken. In other cases, and as requested in Council 
Resolutions, radio spectrum harmonisation should be achieved at the initiative of 
CEPT. Where this happens, Member States are not obliged to implement the 
harmonisation measures adopted in CEPT. 
The establishment of Community rules to assign and use radio spectrum 
s Frequency assignment is the process where administrations authorise individual users 
to use radio stations or to provide radio services within identified frequency bands. In 
certain cases, frequency assignment is linked to the licensing of users, including as 
regards the collection of fees (i.e. administrative costs and charges) for the use of radio 
spectrum. Radio spectrum assignment is governed by European Community 
Directives and is subject to competition law. They aim to establish a level playing field 
for all users of radio spectrum which is based on open, objective, non-discriminatory, and 
transparent grounds. 
The establishment of Community rules as regards radio equipment and standards 
s Common frequency bands are required in order to permit the use of radio equipment in 
different countries, to minimise co-ordination problems at frontiers and to facilitate the 
large production runs for equipment necessary to make European industry competitive at 
world markets. The marketing and use of radio equipment is governed by a 
(proposal for a) European Community Directive. Community policy with respect to 
standards is aimed at allowing non-discriminatory and technology-neutral access to radio 
spectrum while ensuring interoperability and pan-European provision of services. 
The institutional framework for the co-ordination of radio spectrum 
s Taking into account that radio spectrum does not stop at the Community borders, the 
Council of Telecommunications Ministers found it appropriate in the early 1990s to 
achieve the Community's policy objectives on radio spectrum through international 
agreements rather than via internal instruments. For this reason, a number of Council 
Resolutions and Council Conclusions were adopted which refer to the International 
Telecommunication Union (ITU, 186 member countries) and its World 
Radiocommunications Conferences (WRC) to achieve international frequency 
harmonisation and to the European Conference of Postal and Telecommunications 
organisations (CEPT, 43 member) to achieve radio spectrum harmonisation in Europe 
and to develop corresponding European positions for ITU/WRC. 
In accordance with these Council Resolutions and Council Conclusions, the European 
Commission and CEPT entered into a formal relationship in the form of a Memorandum of 
Understanding (1994). In its role as observer in ITU/WRC and counsellor to CEPT, 
the European Community seeks to ensure that its interests are appropriately 
represented in these bodies. 
15 
Chapter 4 EU policy on radio spectrum: issues for comments 
4. EU POLICY ON RADIO SPECTRUM: ISSUES FOR COMMENTS 
The aim of chapter 4 is to invite comments from all interested parties so as to stimulate 
debate on whether the present political and legal base as well as the practical 
implementation of Community radio spectrum policy requires adaptation in the light of 
technological, market, and regulatory developments. 
The issues presented are not exhaustive but are meant to focus discussion as to where 
Community policies currently apply and where adaptation may be required. Comments on 
additional issues which require further consideration in the Community context will be taken 
into account in a further Communication reporting on the results of the public consultation on 
the Green Paper. 
(1) Strategic planning of the use of radio spectrum 
The European Commission would welcome views on the strategic planning of the use 
of radio spectrum in the European Community, particularly as regards: the scope of 
and information needed for planning exercises; whether a political and legal 
commitment to plan radio spectrum for pan-European services is needed; and to what 
extent a harmonised Community approach is needed to develop and implement re-
farming and substitution policies as part of the planning of radio spectrum, including 
as regards the phasing-out of analogue services in the areas of broadcasting and 
mobile telephony. _^ 
1 (a) Does the strategic planning of the use of radio spectrum respond to the 
needs of commercial and non-commercial uses, in particular in the areas 
of mobile and personal communications, broadcasting, transport, and 
R&D? „ 
There are no specific Community requirements for the planning of the use of radio spectrum 
for services other than telecommunications, although the obligation to publish national 
frequency allocation tables should also comprise information on radio spectrum availability for 
broadcasting, transport, and R&D applications. CEPT's detailed spectrum investigations 
covers all uses of radio spectrum, but, due to its voluntary nature, divergences may persist 
between the radio spectrum planning of Member States. The result may be that the 
development and implementation of Community policies which depend on radio spectrum 
availability, as weil as the general business planning of radiocommunications interests, is 
hampered due to a lack of information. 
1(b) What information on radio spectrum allocation, radio spectrum 
assignment, and licensing should be publicly available for industry and 
policy makers? Where should this information be collected and how 
should it be presented in the European Community? 
Radiocommunications players not only need regulatory certainty as regards the availability of 
radio spectrum for the provision of services, they also need to know the procedures for, and 
conditions for use of radio spectrum. Information of this kind is generally not included in 
frequency allocation tables and this information is not available at the Community level. 
1 (c) Should re-farming and substitution policies form part of the strategic 
planning of radio spectrum for pan-European services, what could be the 
modalities for this (e.g. actors to be involved, timing), and to what extent is 
a common Community approach required, for instance with regard to the 
phasing-out of analogue broadcasting and analogue mobile telephony 
services? 
16 
Chapter 4 EU policy on radio spectrum: issues for comments 
The strategic planning of the use of radio spectrum also requires regulatory certainty with 
regard to any foreseen measures to move existing users to less congested frequency bands 
(re-farming or re-location within the radio spectrum) or to encourage them to use alternative 
transmission infrastructure (substitution), taking also into consideration existing competition 
rules. Information of this kind is generally not available. A specific issue is whether regulatory 
intervention is needed to support the introduction of spectrally efficient technologies, e.g. is a 
common Community approach needed to support the transition from analogue transmission of 
mobile telephony and broadcast signals to digital forms of transmission.17 
(2) Harmonisation of radio spectrum allocation 
ISSUE 2 
The European Commission would welcome views on radio spectrum harmonisation in 
the European Community and the wider context; whether a priori Community 
agreement is required as regards the need for harmonisation measures and on the 
basis of what criteria this can be determined; and the level of legal certainty required 
with respect to the implementation of such measures by Member States. 
2(a) Are specific Community measures necessary to ensure radio spectrum 
availability for pan-European applications in the areas of 
telecommunications, broadcasting, transport, and R&D, or should criteria 
be established which determine when radio spectrum harmonisation is 
required? 
Currently, no pre-defined regulatory criteria exist which determine when radio spectrum 
harmonisation is needed. Applicants for radio spectrum seek political support from the 
European Commission in order to enforce decisions to be taken by CEPT. At the same time, 
the technical proposals in CEPT and ITUA/VRC are increasingly influenced by commercial and 
political lobbies. Pre-defined criteria appear to be lacking which would comprise both technical 
and socio-economic elements, on the basis of which objective and transparent decisions on 
the need for radio spectrum harmonisation can be taken. 
2 (b) Where and on the basis of what criteria should priorities be set and 
arbitration take place where radio spectrum requirements for Community 
policies on telecommunications, broadcasting, transport, and R&D are in 
conflict? How can it be ensured that commercial and public interests are 
defined and appropriately balanced in this process? 
Pre-defined criteria are also lacking when determining which services should receive priority 
in accessing (harmonised) frequency bands. This fact causes problems where there are 
17 The comments received following the publication of the Commission's Green Paper on convergence on the 
issue of the switch-off of analogue services were not conclusive and showed a split between those who saw any 
transition from analogue to digital broadcasting as being market-led, and not requiring governmental or EU level 
intervention, and those who considered that a deadline set at a national level would be a useful stimulus to the 
development of digital broadcasting in the EU. Many of the commentators saw the role of the EU as one of co­
ordination of switch-off dates rather than setting a single date for all Member States. A number of mobile 
operators and equipment manufacturers saw some merit in dates being set for shutting down analogue mobile 
communications systems, in order to free spectrum for further digital communications; Most commentators 
considered that radio spectrum would continue to be a scarce resource for the foreseeable future, 
notwithstanding the efficiency gains flowing from the use of digital communications and the analogue radio 
spectrum made available. In particular broadcasters pointed out that, for a lengthy period of time, broadcasting 
would be simultaneously transmitted via digital and analogue frequencies, thereby occupying additional 
frequencies. For further details, see COM(98)1284, 29.07.1998, p.29,30. 
17 
Chapter 4 EU policy on radio spectrum: Issues for comments 
conflicting radio spectrum requirements, i.e. where radio sectors compete for access to (the 
same) radio spectrum on different economic, political, or social, grounds, and where there are 
differences in radio spectrum usage in neighbouring countries. 
2(c) Can the implementation of radio spectrum harmonisation measures, 
necessary for the provision of pan-European services, be left to voluntary 
decisions by Member States or is there a need for legal obligation in that 
respect? Should the European Community collect and publish relevant 
information in both cases? 
Where there is no Community requirement for the harmonisation of frequency bands, the 
implementation of CEPT measures by Member States takes ,place on a voluntary basis. 
Currently, no comprehensive information is available as to which Member States have 
implemented CEPT harmonisation measures according to which national transposition 
measures.18 The availability of such information is important for commercial decisions to be 
taken. 
(3) Radio spectrum assignment and licensing 
ISSUE 3 
The European Commission would welcome views on radio spectrum assignment and 
licensing, particularly as concerns which mechanism is most suitable to secure the 
efficient use of radio spectrum and the harmonised Introduction of pan-European 
services; the extent to which a common Community approach Is required on the 
valuation and possible trading of radio spectrum as well as the possible costs of 
relocating existing radio spectrum users; and the level of legal certainty needed in the 
Community context. 
3 (a) Where there are differences in Member States as regards radio spectrum 
availability for pan-European services, what is the overall impact on 
competition? 
The Commission Communication on the implementation and functioning of the frequency 
Directives has found that in general there are large differences in the amount of spectrum 
assigned to operators in different countries and even to operators within the same country for 
reasons which are not always clear. Diverging licensing conditions, including duration of 
licenses, can make Community-wide harmonisation of radio spectrum allocation and 
assignment difficult. It may also have an effect on competition, particularly where it concerns 
pan-European services. 
18 In order to ensure clear regulatory arrangements in this respect, the Commission proposed to make the 
implementation of CEPT measures obligatory by a specified deadline and to oblige Member States to inform the 
Commission so as to publish national implementation measures. See: A new approach to the co-ordination of 
radio frequencies in the Community, Communication from the Commission concerning a proposal for a Council 
Decision on the implementation by the Member States of measures concerning radio frequencies, COM(93)382, 
10.09.93. In this document, the Commission furthermore proposed that: Commission shall ensure Community 
involvement in organisations dealing with radiocommunications; Council shall draw up guidelines on the 
positions to be adopted by Member States in ERC and ERO; and a representative committee shall be created to 
deliver opinions on the measures to be taken. 
18 
Chapter 4 EU policy on radio spectrum: issues for comments 
3(b) Is there a need to agree in the European Community on which radio 
spectrum assignment mechanism leads to the most efficient use of radio 
spectrum for the different types of services? , 
Where radio spectrum is scarce and the number of available licences therefore limited, 
Member States have several mechanisms at their disposal to assign radio spectrum (e.g. first 
come-first served procedure, comparative bidding, auctions) while taking into account the 
requirement to ensure efficient use of radio spectrum. However, since different interpretations 
exist as regards what constitutes efficient use of radio spectrum, no consensus exists as to 
which mechanism is best in which cases.19 
3 (c) What is the impact on pan-European services of diverging national 
mechanisms to assign radio spectrum, which mechanism is most suitable 
to support pan-European services, and to what extent is a Community 
approach required in this regard? 
Since the availability of radio spectrum for pan-European services is expected to continue to 
be limited, a number of Member States are considering and introducing the use of auctions to 
award the licenses available, e.g. in case of UMTS. Also in this context, no consensus exists 
as to which mechanism is best to support the provision of pan-European services or what the 
impact will be of diverging national approaches in this regard. 
3 (d) What is the impact of charges and fees, including relocation costs, 
associated with the use of radio spectrum on the development of services 
and on the competitive situation? 
Member States may impose non-discriminatory charges in addition to administrative costs in 
order to ensure that optimal use is made of radio spectrum and to foster the development of 
innovative services and competition. Opinions diverge on the impact of radio spectrum 
charges. Where licenses have already been granted, it has been argued that auctions tend to 
strengthen the dominance of the incumbent players by increasing the costs for the new 
entrants.20 Some telecommunications operators argue that the costs involved with auctions 
will reduce the readiness to invest in networks and lead to higher consumer prices. Others 
argue that potential users are bidding, in effect, a part of their future profits, without any 
significant impact on prices to the consumer. 
Some operators have also expressed reservations with the requirement, where applicable, to 
pay for the relocation costs of existing users, particularly where their competitors are not 
bound by such obligations. Other issues concern the extent to which the revenue raised is 
19 The comments received on the Green Paper on convergence show agreement on the overall need for greater 
efficiency in radio spectrum use, although there are widespread concerns about the possible auctioning of radio 
spectrum. Some commentators recognised that by placing a commercial value on frequencies, greater 
efficiency might be promoted and that civil users of frequencies might be encouraged to release some of their 
existing radio spectrum. Other pointed out the risk of discrimination where later market entrants were required to 
pay a market value, whilst existing users had much lower fees. However, for a large majority of broadcasters, 
telecommunications operators and equipment manufacturers, current mechanisms such as so-called "beauty 
contests" or comparative bidding provided the most effective way of balancing the need to ensure efficient use 
of frequencies and the need to avoid excessive charges for the players involved, as ultimately those charges 
would be passed on to the consumer. Such high charges were felt to often be motivated by national budgetary 
considerations rather than by the concern of radio spectrum efficiency. At the same time, a number of 
broadcasters, including those representing community and local radio, made the point that where higher values 
were attached to radio spectrum, provision should be made to ensure that certain public service broadcasters 
could still obtain frequencies at an affordable price. For further details, see COM(98)1284, 29.07.1998, p.29,30. 
20 The Commission is currently dealing with complaints regarding the effects of auctions. 
19 
Chapter 4 EU policy on radio spectrum: issues for comments 
used for radio spectrum policy and frequency management, e.g. to make further radio 
spectrum available (for pan-European services). 
3 (e) Should the awarding of radio spectrum be separated from the granting of 
service authorisations or licences? What would be the impact of creating a 
secondary market for radio spectrum for the provision of similar or 
different services, and which safeguards are needed in this regard? 
It is argued that the efficient use of radio spectrum would be best served by separating service 
authorisations and licenses from radio spectrum assignments. It is claimed that the 
advantages of spectrum trading would be that single assignments could be transferred (for a 
price) from one user to another with no change of use of the spectrum. Alternatively, 
assignments may be subdivided or combined and, where appropriate, used to provide a 
different radio service for which there is market demand. Since radio spectrum is a bottleneck 
facility, consideration should be given to the potential impact of secondary trading on anti­
competitive behaviour and on abuses of dominant positions. Also, the possible risk of a further 
fragmentation of radio spectrum use should be taken into account. For the European 
Community, a particular issue to be addressed in this regard is whether diverging national 
approaches or the absence of a common Community approach to such matters will affect 
pan-European service provision and the efficient use of radio spectrum. 
(4) Radio equipment and standards 
The European Commission would welcome views on the link between Community 
policy on radio equipment, standards, and radio spectrum, with particular regard to the 
co-operation between bodies responsible for standards and radio spectrum and the 
measures needed at the operational level of radio spectrum management 
4 (a) Is there a need to improve the link between the elaboration of standards 
and the harmonisation of radio spectrum allocation for pan-European 
services in the areas of telecommunications, broadcasting, transport, and 
R&D? 
The implementation of a number of Community policies, for instance in the areas of radio 
navigation and road transport telematics, depends on standards developed in fora other than 
ETSI, which is mainly concerned with the elaboration of telecommunications standards. 
4 (b) Which practical arrangements are needed to ensure that the full potential 
of Community policy on radio equipment is supported by appropriate 
action at the level of radio spectrum management? 
The RTTE Directive will remove many regulatory barriers for the placing on the market and 
free movement and putting into service in the Community of novel and innovative radio and 
telecommunications terminal equipment, rt- will ease the marketing of such equipment 
throughout the Community, and will avoid the need for ad hoc mutual recognition 
arrangements between Member States (e.g. such as those developed by CEPT in recent 
years). However, if consumers and industry are to benefit from this, the timely availability of 
harmonised spectrum is a prerequisite and close consultation is required between policy 
makers, manufacturers, and users to address the following issues: the establishment of a 
database of national regulations- for the use of the radio spectrum, one-stop notification 
procedures, and arrangements in support of market surveillance. 
20 
Chapter 4 EU policy on radio spectrum: issues for comments 
(5) The institutional framework for radio spectrum co-ordination 
/SS(y£ 5 
The European Commission would welcome views on whether the present institutional 
arrangements for the co-ordination of radio spectrum are appropriate to meet the 
Community's policy objectives, i.e. to contribute to economic growth, employment, and 
welfare, to stimulate technological innovation and the development of new services, to 
foster competition in the internal market, and to strengthen European competitiveness 
in the establishment of pan-European and global radio systems. 
5 (a) In view of the need to have a predictable environment in the European 
Community for the use of radio spectrum, is the framework for the co­
ordination of radio spectrum sufficiently open, transparent, and legally 
certain? Is it clear where and on the basis of which principles the need for 
radio spectrum harmonisation or for Community positions is established? 
Both new and existing users of radio spectrum are likely to benefit from a high level of 
openness in the regulatory framework and should therefore be more involved in the decision­
making process. Certain parts of the radio spectrum are congested and, in order for new 
telecommunications, broadcasting, transport, and R&D applications to be introduced, radio 
spectrum might need to be shared or existing users might need to give up their occupancy of 
frequency bands or limit their expansion. In this context, Community competition rules need to 
be fully applied. Any change in the use of radio spectrum will affect new and existing users 
alike and they therefore need to be consulted in order to assess the appropriateness of the 
decisions to be taken. 
Particularly where applicants for radio spectrum in various economic sectors compete on 
different economic, political, or social grounds, priorities in radio spectrum use are difficult to 
set where no objective principles (whether technical, economic, political, and social) exist on 
the basis of which priorities to spectrum access can be set. The result of this situation is also 
that (both European and third country) applicants for radio spectrum address their 
requirements in parallel at the level of the Member States, CEPT, and the Community, which 
is inefficient, and which in turn may trigger European operators to seek governmental support 
in other parts of the world for the introduction of new systems, both in terms of radio spectrum 
allocation and assignment. 
5 (b) Is the establishment of a priori Community agreement necessary to 
achieve radio spectrum harmonisation or is it sufficient to co-ordinate the 
positions of the Member States in CEPT on an ad hoc and technical basis? 
Common Community positions in CEPT can only be ensured where political and legal 
agreement is reached in the Community context. In all other cases, experience has shown 
that it is difficult to assess whether the economic and general interests of the Community are 
safeguarded on the basis of technical information provided during the development of 
harmonisation measures or of European positions in CEPT. This points to the need to 
substantiate the technical information available with economic, political, and social elements 
in order to establish whether and at which stage of the development of positions a common 
Community approach in CEPT and ITUAA/RC is needed. 
5 (c) In which fora should Community positions be developed where needed in 
discussions on radio spectrum between the European Community and its 
trading partners? 
Radio spectrum is increasingly being raised as a market access issue in discussions between 
the European Community and its trading partners. Availability of and access to radio spectrum 
is a key condition for organisations to provide radio services and products abroad and for 
21 
Chapter 4 EU policy on radio spectrum: issues for comments 
internal and external communications. However, the European Community does not have the 
information to discuss current or future availability of radio spectrum for the Community as a 
whole. According to the current regulatory arrangements, CEPT should develop such 
common European positions when needed. However, the process by which CEPT arrives at 
such positions can be lengthy and does not always reflect the Community position. 
5(d) Should procedures be introduced to ensure that the Member States 
support CEPT positions for ITU/WRC, particularly in view of the need to 
uphold Community interests in the international arena? 
The Member States in CEPT are not obliged to comply with the European positions worked 
out for ITUAA/RC.21 In practice, the European Commission is not in a position to secure a 
common Community approach in ITUAWRC nor is it able to arbitrate in case Member States in 
CEPT disagree on the positions to be taken. 
21 European Common Proposals (ECP) are proposals adopted by the Conference Preparatory Group (CPG) of 
CEPT in preparation for ITU meetings which reflect the position of the CEPT members who have expressed 
their intention to co-sign the ECP. ECP approval requires the support of at least 10 CEPT members, and not 
more than 6 members opposing. Those who have opposed are expected to co-operate with all CEPT members 
in WRC on a consensus basis and refrain from defending separate individual or multilateral proposals, but there 
is no strict legal obligation for them to do so. 
22 
Chapter 5 Conclusions 
5. CONCLUSIONS 
Major technological, market, and regulatory developments have an impact on the way radio 
spectrum policy is made in the European Community and at the international level. 
Furthermore, the availability of radio spectrum has become a key issue for the implementation 
of Community policies on telecommunications, broadcasting, transport, and R&D. Considering 
that radio spectrum is a bottleneck facility, it is appropriate to discuss radio spectrum policy 
issues with all interested parties in the light of these changes so as to ensure that the best 
possible use is made of the radio spectrum resource. 
. Against the background of the Community policy objectives with regard to radio spectrum and 
in the context of the political and legal base and practical reality for Community involvement 
with regard to the European framework for the co-ordination of radio spectrum, the strategic 
planning of the use of radio spectrum, the harmonisation of radio spectrum allocation, radio 
spectrum assignment and licensing, and radio equipment and standards, this Green Paper 
invites interested parties to give views on a number of issues pertinent in the Community 
context. 
The issues require a wide public debate so as to determine whether further Community action 
is required. 
The Commission will report on the findings of the consultation period and propose Community 
measures to the European Parliament and the Council, where appropriate. 
23 
Annex I European Community policies involving radio spectrum 
ANNEX I 
EUROPEAN COMMUNITY POLICIES INVOLVING RADIO SPECTRUM 
The implementation of a number of sector-specific Community policies depends critically on 
the availability of radio spectrum. An overview of these policies is outlined in this Annex22; 
horizontal Community policies are referred to in the main body of the text of the Green Paper. 
Telecommunications policy 
With the introduction of the digital generation of public mobile communications systems (GSM, 
DECT, ERMES) at the end of the eighties through spectrum co-ordination as well as through 
liberalisation measures from the regulatory point of view, the European Community helped to 
create a pan European service range which has now been successfully implemented and is 
recognised as responding to a user demand as well as being an important industrial activity in 
itself. In view of the future demand for public mobile communication both in volume and 
service enhancement and diversity, Community action is currently undertaken to support the 
development and deployment of a European proposal for the 3rd generation mobile system 
(IMT2000), UMTS (Universal Mobile Telecommunications System), for which spectrum 
availability is a crucial element to be discussed at the forthcoming World Radiocommu­
nications Conference (WRC-2000). Wireless communication is also considered in the context 
of the convergence between mobile and fixed services. In this context the usage of wireless 
local loop (WLL) is potentially an important means to achieve the necessary competition in 
telecommunications. 
The development of mobile terrestrial communication has been subject to intensive R&D 
.activities at European Community level through the RACE and the ACTS programmes. 
Projects have been funded with approximately 176 MECU during the period 1986-98. 
Satellite Communication has equally been recognised as a necessary component in view of 
realising the Information Society. Besides the liberalisation of the satellite sector through 
Community measures in the early nineties, action is undertaken to support the synergy of the 
players involved through the Satellite Action Plan. Furthermore, the European Community 
actively contributes to efforts to co-ordinate the introduction of global S-PCS systems. This 
includes the harmonisation of radio spectrum bands. 
European Community funding for satellite communications projects from RTD-programmes 
has been 85 MECU in 1987-97. The 5th Framework Programme for RTD foresees a funding 
of Information Society technologies of 3.3 billion ECU in the period 1998-2002. The share of 
the satellite communications is expected to be around 15 million ECU per year.23 
At the level of trans-European networks, initial projects to stimulate the usage of satellite 
system-based infrastructure as a communication backbone are under preparation. 
22 A detailed description on spectrum aspects related to these policies can be found in the in the Commission Staff 
Working Paper: "Issues at the World Radiocommunications Conference 1999 (WRC-99)", SEC(1998)839, 
12.5.98 
23 The Space Co-ordination Group, The Fifth Framework Programme and Space Applications, SEC(1998)1055. 
& 
Annex I European Community policies involving radio spectrum 
Broadcasting policy 
The Television Without Frontiers Directive establishes the free movement of TV broadcasts 
within the European Community and is therefore essentially a single market measure to 
ensure the free movement of services. The Directive has recently been amended by Directive 
EC/97/36 to take account of changes of the market, in particular arising from technological 
developments. The MEDIA programme (Community budget: 310 MECU 1996-2000) aims at 
promoting and developing the European audio-visual industry. 
Digitisation and the development of new services such as specialist channels and Video-on-
Demand will create increased demand for audio-visual content. Community policy is to 
ensure, for cultural, industrial and employment reasons, that this demand is met by European 
audio-visual production. 
European Community policy on advanced television and digital broadcasting aims at 
facilitating the market-led introduction of digital and wide-screen television24. It has both a 
regulatory and a promotional strand. The Directive on the use of television transmission 
standards25 set up a light regulatory framework to support the launch of digital television 
services, providing certainty for investors, and ensuring that public interest requirements are 
met. 
On the promotional front, the Commission has supported the activities of the Digital Video 
Broadcasting (DVB) group26. The group has defined the European digital broadcasting 
standards for cable, satellite and terrestrial television which are increasingly being used all 
over the world. In addition, the Union launched a four-year Action Plan in 199327 to overcome 
the market failure that had prevented the introduction of wide-screen television in the 16 :9 
format. Wide-screen is now an established part of the broadcast services and TV set markets, 
ready for an increasing role in digital TV markets. 
The Commission also follows the activity of the World Digital Audio Broadcasting (DAB) 
Forum . The aim of this forum, which has more than 100 member organisations world-wide, is 
to speed up the introduction of Digital Audio Broadcasting in Europe. DAB was created by a 
consortium of European manufacturers, research institutes, network operators and 
broadcasters under the umbrella of the Eureka technology programme and with Community 
support. This system has received ITU recognition as a world standard. 
Today, one Member State has launched digital terrestrial broadcasting and several other 
Member States are looking to do the same. What the effect of a general cut-off date for 
analogue terrestrial broadcasting would be on the market overall is a complicated matter in 
24 See Council Decision on an Action Plan for the Introduction of Advanced Television Services in Europe, 
93/424/EEC, OJ No L196/48 5.8.93. This Action Plan has facilitated the market introduction of the 16:9 wide-
screen format ready for digital TV. 
25 European Parliament and Council Directive 95/47/EC of 24 October 1995 on the use of television transmission 
standards OJ 95/L28/51, 23.11.1995. 
26 The Digital Video Broadcasting group (DVB) is an association of broadcasters, transmission companies as well 
as consumer and professional electronics manufacturers. The group comprises over 200 organisations in more 
than 30 countries. The DVB group has developed a complete family of interrelated television systems for all 
transmission media (including terrestrial, cable, satellite) and at all quality levels (standard definition through to 
high definition) and with the possibility to offer new convergent services like Internet access. DVB systems have 
been standardised by ETSI and are recognised by the ITU at the global level. 
27 Council Decision 93/424/EEC of 93/424 of 22 July 1993 on an Action Plan for the Introduction of Advanced 
Television Services in Europe, OJ L-281, 23.11.1995. The Council Decision made available up to 228 MECU 
over 4 years, ending on June 30th 1997 
à) / 
Annex I European Community policies involving radio spectrum 
view of the widely differing characteristics of the television markets in each of the Member 
States. This issue is currently subject to a political debate which touches upon several issues, 
only one of which is spectrum policy. 
The digitalisation of terrestrial broadcasting would potentially allow for reduced radio spectrum 
occupancy for existing broadcast services, thereby freeing up radio spectrum. However, it is 
very likely that in many countries, a lengthy transition period to digital will be needed. 
Consumers will need time to replace their radio sets. They will also need to purchase one or 
more decoders to upgrade their analogue TV sets or to buy one or more new integrated 
digital TV sets. A period of "simulcasting" will therefore be necessary (of anything up to 15 
years) and this will in fact put additional strains on the availability of radio spectrum. Moreover, 
the range of broadcast services is already increasing rapidly, with more NVOD, thematic 
channels and interactive TV becoming available. On the other hand, as TV broadcasting 
develops from its origins (a few public terrestrial channels) towards pay TV and transactional, 
retail style delivery of programmes "on demand", and as wireless communications evolves 
towards multimedia, the terms for access to spectrum which terrestrial broadcasters currently 
enjoy are increasingly being called into question by economic actors in other sectors. 28 
As far as the introduction of digital radio is concerned, it has to be outlined that DAB 
operational services have already been launched in various Member States like Sweden 
(covering 80% of the population), UK (a public and a commercial service have already been 
licensed), France and Italy. Other Member States are planning to start soon regular DAB 
services (i.e. Germany in Spring 1999). 
Transport policy 
The European Community has become active in several sectors related to transport such as 
aeronautical service sector, satellite navigation and positioning, maritime navigation and 
communication sector as well as the development of inter-modal transport telematics 
applications. 
As a result of the efforts undertaken to establish as single air transport market based on the 
free market access, the air transport sector has been considerably stimulated leading to a 
strong demand for the improvement and further development as well innovation of 
aeronautical communication and navigation support29, all typically based on 
radiocommunications techniques and thereby requiring spectrum allocation. Having radio 
spectrum available becomes thereby an essential pre-requisite for the successful 
implementation of an air transport policy. 
Maritime communications remains an important sector, especially given its specific 
requirements for safety and security30, and is defined as such in the trans-European 
Transport Network Guidelines31. The European Community has therefore supported the 
28 The Commission is currently dealing with complaints involving non-transparent and potentially discriminatory 
attribution of radio spectrum in this sector. 
29 Communication from the Commission on congestion and crisis in air traffic, COM(95)318 final, 5.7.1995. 
30 Green Paper on Sea Ports and Maritime Infrastructure, COM(97)678 ,10.12.97 
31 Decision 1692/96/EC of the European Parliament and of the Council of 23 July 1996, which specifies that the 
trans-European shipping management and information network is composed of coastal and port shipping 
management systems, vessel positioning systems, reporting systems for vessels transporting dangerous or 
polluting goods, communication systems for distress and safety at sea. 
U, 
Annex I European Community policies involving radio spectrum 
development of maritime systems through research actions under the TELEMATICS 
programme of the Fourth Framework Programme. 
Satellite positioning, navigation and timing systems such as GPS and GLONASS, originally 
developed for military applications, are expected to allow for widely varying usagé including 
aeronautical and maritime navigation, fleet management and tracking, provision of precise 
time references, and positioning in the consumer sector, etc. The European Community is 
currently assessing its role in the development of the next generation global satellite 
positioning and navigation system and, particularly, the scope for cooperation with the US and 
the Russian Federation. The availability, planning and protection of spectrum for GNSS is 
seen as a priority and the Council has confirmed that adequate protection of radio spectrum 
for GNSS needs to be recognised in the relevant international fora.32 
Total investments in the European augmentation of GNSS are estimated to 570-4000 MECU 
depending on which alternative is chosen. The European Community funding for GNSS in 
1998 is 21 MECU which is expected to substantially increase beyond 2000.33 
A growing number of additional transport telematics systems are emerging, many resulting 
from related R&D projects in Community programmes such as the TELEMATICS programme 
where approximately 220 MECUs have been spent during the period 1984-1998 on transport 
R&D activities New proposals such as comprehensive transport information systems or a 
European wide "GSM for Railways" service are being developed. For road transport, 
Dedicated Short Range Communications (DSRC) systems are already used for Electronic 
Fee Collection and will increasingly support driver information and various other systems that 
depend on vehicle to vehicle/infrastructure communications. It is expected that these 
applications will increase the overall demand for spectrum.34 
Earth observation 
Earth observation has considerable importance as a basic tool for a certain number of specific 
policies such as global scale measurements35, implementation of environmental and civil 
protection policies36, and agricultural policies37. Consequently Europe has developed a 
technological basis in co-operation with the Member States represented in ESA (European 
Space Agency) as well as through national programmes. Examples of application are the 
32 Communication by the Commission: Towards a Trans-European Positioning and Navigation Network, including 
a European Strategy for Global Navigation Satellite Systems (GNSS), COM(98)29 final, 21.1.1998 and Council 
conclusions of 17 March 1998. 
33 Communication by the Commission: Towards a Trans-European Positioning and Navigation Network, including 
a European Strategy for Global Navigation Satellite Systems (GNSS), COM(98)29 final, 21.1.1998. 
34 Designation of further frequency bandwidth for road transport and traffic telematics within Dedicated Short 
Range Communication Systems, study commissioned by the Commission, January 1998 
35 Earth observation (EO) aiming at global scale measurements of parameters such as ocean colour, sea surface 
temperature, weather forecasts, continental land cover and biomass burning, vital for initiating and validating 
models of global change, heavily rely on satellite EO. Earth system science entails a global partnership in which 
Europe has clear obligations. 
36 EO can be a cost-effective tool for the implementation of environmental and civil protection policies. EO is 
already used pre-operationally for monitoring changes in land cover for the Natura 2000 network as part of the 
Habitats Directive, and for detecting oil spills in the context of the Bonn Convention. The information offered 
from space can help in the management and even prediction of natural hazards such as floods, storms and 
forest fires. Particularly if the frequency and magnitude of these events increase with a changing climate or 
effects such as the "El Nino", the contribution of EO to their mitigation can have considerable economic impact. 
37 EO is already used in the EU to check claims for agricultural subsidy, and for gathering statistics. EO will also 
play a role in the context of an evolving Common Agricultural Policy, particularly with an increasing emphasis on 
environmental impact. 
IV 
& 
Annex I European Community policies involving radio spectrum 
weather satellites for European meteorological services operated through EUMETSAT. More 
recently, the demand for new environmental monitoring services has increased in the context 
of binding international agreements such as the as the Montreal Protocol, The Kyoto Protocol, 
the Biodiversity Convention and the Framework Convention on Climate Change. 
The European Commission pursues efforts to stimulate the Earth observation technological 
background through R&D programmes. Under the Fourth Framework Programme (1995-98) 
around 275 MECU were dedicated on Earth observation related research. The Commission's 
proposal for the Fifth Framework Programme of the European Communities for Research and 
Development Activities (1998-2002)38 includes research activities on the development of 
generic Earth observation technologies, notably satellite technologies for environmental 
monitoring and resources. RTD activities on Earth observation are also considered in the 
Communication on space applications and their market perspective39. 
Radio Astronomy 
Radio-astronomy has been recognised as an activity in which the European Community has a 
general interest in participating. However, substantial investment in suitable infrastructures is 
required and large-scale installations are increasingly operated on a shared and global basis. 
Currently, Community activities are implemented through Action 4 of the Framework 
Programmes on RTD, in particular Research Networks and Access to Large-Scale 
Facilities.40 Both activities are foreseen to be continued under Framework Programme 5.41 
The involvement of the Community on an international level is organised through the 
participation at the OECD Megascience Forum (Working Group on Radio-astronomy). The 
financial contributions for the period of 1994-98 are estimated at 7.3 MECU. Besides co­
ordination of R&D activities, radio-astronomers have identified a need to take action at a 
global level to tackle the rapidly increasing problem of radio interference which results from 
the heavy utilisation of radio spectrum and related phenomena, such as out-of-band 
emissions by satellites. Because of the extreme sensitivities required to carry out radio-
astronomical experiments, such radio interference could inhibit most ground based (on Earth) 
observations in future. 
38 COM(97)142 final, The Commission proposal for the Fifth Framework Programme of the European Community 
for Research and Development Activities (1998-2002), 30.4.1997. 
39 COM(96)617 final, Communication from the Commission the European Parliament and the Council on the 
European Union and Space: Fostering Applications, Markets and Industrial Competitiveness, 4.12.1996. 
40 Council Decision on the specific programme on "training and mobility of researchers" (TMR), OJ No. L361/90, 
31.12.94. 
41 Proposal for a Council Decision on the specific programme on "improving the human research potential and the 
socio-economic knowledge base, COM(98)305. 
J$ 
Annex II EU policy on radio spectrum 
ANNEX II 
EU POLICY ON RADIO SPECTRUM 
The aim of this annex is to explain the political and legal base for, and present practice of 
Community involvement in radio spectrum policy in the following areas: (1) the strategic 
planning of the use of radio spectrum; (2) the making available of harmonised radio spectrum 
for pan-European and global radio services; (3) the application of the rules for the distribution 
and use of radio spectrum; (4) the marketing and use of radio equipment; (5) the institutional 
framework for the co-ordination of radio spectrum. 
Strategic planning of the use of radio spectrum 
Main objective: creating a predictable environment for current and future use of radio 
spectrum 
In order to create an environment for radio spectrum which allows for the longer-term 
planning and development of pan-European radio services and products, particularly in 
the telecommunications area, the use of radio spectrum should be strategically planned. 
Where necessary, action should be taken where technological, market, or regulatory 
developments require an adjustment in the distribution of radio spectrum among its 
various uses. 
Political and legal base 
IStrategic planning of the use of radio spectrum I 
Directive 87/372/EEC • Member States shall prepare plans for GSM to fully occupy the reserved 
(GSM) frequency bands according to commercial demand 
Directive 90/544/EEC • Member States shall prepare plans for ERMES to fully occupy the reserved 
(ERMES) frequency bands according to commercial demand 
Council Resolution • CEPT to recommend to regulatory authorities or to the Community long-term 
90/C 166/02 requirements for the radio spectrum J 
Council Resolution • CEPT to achieve a better-balanced allocation of the frequency spectrum 
95/C 18870242 between its various uses 
• In the context of ERC, to provide for frequencies for mobile and personal 
communications complying with European standards 
Commission Directive • Member States shall publish the frequency plans and the procedures for the 
96/2/EC43 designation of frequencies for specific services 
• Member States shall publish every year, make available on request, and 
communicate to the Commission the allocation scheme of frequencies 
reserved for mobile and personal communications services, including the plan 
for future extension of such frequencies 
• Current frequency allocation shall be reviewed at regular intervals; detailed 
knowledge of the actual state of allocation and use of radio spectrum is also 
required 
• Where the number of licenses is limited due to spectrum scarcity, Member 
States will review whether advances in technology would allow spectrum to be 
made available for additional licenses _^^^_____________ 
4^ Council Resolution of 29 June 1995 on the further development of mobile and personal communications in the 
European Union, 95/C 188/02, OJ C188/3, 22.07.95. 
43 Commission Directive 96/2/EC of 1& January 1996 amending Directive 90/388/EEC with regard to mobile and 
personal communications, L20/59, 26.01.96. 
tà 
Annex II EU policy on radio spectrum 
Present practice 
The strategic planning of the use of radio spectrum is dealt with in the Community context 
in the following ways: 
• Community requirements for the planning of the use of radio spectrum for mobile 
and personal communications are monitored 
The Commission Communication on the implementation and functioning of the mobile 
frequency Directives44 has found that only a limited number of Member States have so far 
notified the Commission about their plans as regards radio spectrum availability for mobile 
and personal communications. However, in particular in the area of mobile and satellite 
communications (GSM, UMTS, S-PCS), market players seek clarity as regards future 
availability of radio spectrum for such applications. This is also true for activities other 
than telecommunications. For example, common European frequency bands are needed 
to in support of Community policies on transport, broadcasting, and R&D. 
• The European Community contributes to the establishment of an European table of 
frequency allocation 
The Community partly funds the CEPT process of detailed spectrum investigations (DSI), 
which should contribute to the establishment of a harmonised European table of 
frequency allocation and utilisation (planned to be finalised by CEPT by the year 2008). In 
addition, external studies carried out on behalf of the Commission on market 
developments of radiocommunications services have been made available to CEPT. 
Q Member States are not obliged in their planning of radio spectrum to comply with 
the provisional European table of frequency allocation of CEPT 
No information is publicly available as regards the extent to which Member States' 
national planning of the use of radio spectrum complies with the preliminary version of 
CEPT's European table of frequency allocation since its implementation occurs on a 
voluntary basis. Member States increasingly make available national frequency allocation 
tables. However, significant national divergences exist as regards the format and 
presentation of such tables. Information as regards the situation of radio spectrum 
allocation for the Community as a whole is not available. 
• No specific recommendations are made to the European Community as regards 
long-term requirements for the radio spectrum 
The Commission has so far neither been informed about any national reviews of current 
radio spectrum allocation, nor whether advances in technology would allow for additional 
licenses to be made available. CEPT has so far not recommended to the Community 
long-term requirements for the radio spectrum, nor has it taken concrete steps to achieve 
a better-balanced allocation of the radio spectrum between its various uses. 
44 See footnote 17. 
Jo 
Annex II EU policy on radio spectrum 
2. Harmonisation of radio spectrum allocation 
Main objective: securing the harmonised availability of radio spectrum for pan-
European services 
The establishment of EU and international-wide frequency bands is critical to the free 
movement of goods, persons and to the free provision of services. The co-ordination of 
radio spectrum therefore falls within the core area of EC internal market competence. 
Radio spectrum harmonisation is achieved by means of frequency allocation measures, 
i.e. measures which identify frequency bands for the provision of defined services as well 
as the technical conditions to be taken into account. 
Political and legal base 
Harmonisation of radio spectrum allocation 
Directive 87/372/EEC • Member States shall reserve specific frequency bands for GSM 
(GSM)45 
Directive 90/544/EEC • Member States shall reserve specific frequency bands for ERMES 
(ERMES)46 
Directive 91/287/EEC • Member States shall reserve specific frequency bands for DECT 
(DECT)47 
Council Resolution 90/C • CEPT to recommend to regulatory authorities or to the Community suitable 
166/02 frequencies for pan-European sen/ices 
Council Resolution-92/C • Member States should participate in the development of ERC decisions 
318/01 • Member States should commit themselves to implementing the ERC 
decisions on TFTS and RTT, according to ERC procedures 
EP and Council Decision • CEPT is tasked to harmonise frequencies and authorisation conditions for 
on S-PCS48 S-PCS 
• In case work by CEPT or the implementation by Member States is not 
satisfactory, further action at Community level shall be taken 
Proposal for an EP and • CEPT is tasked to harmonise frequencies and authorisation conditions for 
Council Decision on UMTS 
UMTS49 * m case wor'< Dv CEPT or the implementation by Member States is not 
satisfactory, further action at Community level shall be taken 
45 
46 
47 
48 
49 Council Directive 87/372/EEC on the frequency bands to be reserved for the co-ordinated introduction of public 
pan-European cellular digital land-based mobile communications in the European Community, OJ L196/85, 
17.07.87. This Directive was adopted in parallel with: Council Recommendation 87/371/EEC of 25 June 1987 on 
the co-ordinated introduction of public pan-European cellular digital land-based mobile communications in the 
European Community, OJ L196/81,17.07.87. 
Council Directive 90/544/EEC of 9 October 1993 on the frequency bands designated for the co-ordinated 
introduction of pan-European land-based public radio paging in the Community, OJ L310/28, 09.11.90. This 
Directive was adopted in parallel with: Council Recommendation 90/543/EEC of 9 October 1990 on the co­
ordinated introduction of public pan-European land-based public radio paging in the Community, OJ L310/23, 
09.11.90. 
Council Directive 91/287/EEC of 7 June 1991 on the frequency bands to be designated for the co-ordinated 
introduction of digital European cordless telecommunications (DECT) into the Community, OJ L 144/45, 
08.06.91. This Directive was adopted in parallel with: Council Recommendation 91/288/EEC of 3 June 1991 on 
the co-ordinated introduction of digital European cordless telecommunications into the Community, OJ 
L144/476, 08.06.91. 
Decision 710/97/EC of the European Parliament and of the Council on a co-ordinated authorisation approach in 
the field of satellite personal communications services in the Community, OJ L105, 23.04.1997. 
Proposal for a Decision of the European Parliament and the Council on the co-ordinated introduction of a third-
generation mobile and wireless communications system (UMTS) in the Community, COM(1998)58, OJ C131, 
29.04.98. 
Ill 
21 
Annex II EU policy on radio spectrum 
Present practice 
At operational level, the availability in the European Community of harmonised 
frequency bands is ensured in one of the following ways: 
• The European Community adopts specific legal measures which require harmonised 
frequency bands to be made available by the Member States 
This approach has been used in the past in case of GSM, ERMES, and DECT. Where 
Member States dp not implement these measures, appropriate action at Community level 
can be taken. 
• The Community adopts legal measures for the harmonised introduction of systems 
and refers to CEPT for the harmonisation of required frequency bands 
This new methodology is being used for S-PCS and UMTS and allows for Community 
action to be taken where Member States do not comply with the measures taken. 
• The Community partly funds CEPT to carry out the technical work necessary for the 
harmonisation of radio spectrum allocation 
By means of the MoU and framework agreement with CEPT ERC/ERO, the Commission 
may entrust technical work to ERC/ERO with the aim of harmonising radio spectrum 
allocation. However, under this approach, the members of CEPT, including the Member 
States, decide whether to follow-up on the work carried out by ERC/ERO, i.e. by adopting 
radio spectrum harmonisation measures. Furthermore, individual CEPT members decide 
individually whether or not to implement the measures adopted by CEPT. 
• CEPT decides on its own initiative whether to develop, adopt, and implement 
harmonisation measures 
For all other cases than described above, CEPT itself takes the initiative to achieve radio 
spectrum harmonisation. CEPT recommendations are always proposed to its 43 member 
countries, not to the Community specifically. Where CEPT develops measures not 
formally requested by the Community, adoption and implementation by Member States 
occurs on a voluntary basis. Even where Community funding is used to identify radio 
spectrum availability and the scope for harmonisation for pan-European services, no 
formal or legal mechanism exist to ensure adoption of appropriate measures by CEPT or 
their implementation by the Member States. 
3. Radio spectrum assignment and licensing 
Main objective: application of the rules according to which users obtain and 
regulatory authorities assign radio spectrum 
Frequency assignment is the process where administrations authorise individual users 
to use radio stations or to provide radio services within identified frequency bands. The 
assignment of radio spectrum to individual users and the licensing of 
radiocommunications operators are governed by European Community legal principles, 
including competition law. They aim to establish a regulatory level playing field for all 
users of radio spectrum which is based on open, objective, non-discriminatory, and 
transparent grounds and which supports technological innovation and competition. 
IV 
3Z 
Annex II EU policy on radio spectrum 
Legal base 
Radio spectrum assignment and licensing 
ONP Framework •Conditions regarding access to and usage of frequencies should be objective, I 
Directive50 non-discriminatory, transparent, and proportionate to the objective sought 
• In order to ensure effective use of frequencies and to avoid harmful 
interference. Member States may restrict access to frequencies 
Commission Directive • Limiting the number of licenses for mobile and personal communications 
96/2/EC systems only allowed where radio frequencies are scarce and to ensure 
fulfilment of essential requirements (i.e. security of network operation, 
maintenance of network integrity, interoperability of services, data protection, 
protection of the environment, town and country planning) 
• As soon as frequencies become available, Member States shall award licenses 
and available frequencies shall be assigned in an open, transparent, and non­
discriminatory manner 
• Efficient use of radio spectrum and effective competition to be ensured 
• Member States shall not restrict the combination of mobile technologies or 
systems, in particular where multi-standard equipment is available, and adopt, 
where required, measures to ensure effective competition among competitors 
Licensing Directive51 • Access to frequencies to be secured pursuant to strictly defined procedures 
and deadlines 
I» Frequency licenses can be separated from service authorisations 
• The number of licenses may be limited only to ensure the efficient use of radio 
frequencies and maximise user benefits, develop competition, publish and 
review the limitation decision, invite license applications 
• Individual license conditions shall be published and granted through open, non­
discriminatory and transparent procedures within reasonable time limits 
• Non-discriminatory charges may be imposed in the granting of individual 
licenses but this may not negatively affect the development of services and 
competition 
Present practice 
Radio spectrum assignment and licensing in the European Community takes place as 
follows: 
a The licensing of individual operators is done at Member State level but subject to 
European Community legal principles, notably the competition rules and the 
modalities established by the Licensing Directive 
Member States in principle have the choice to use individual licences or to accept general 
authorisations, but normally impose an individual licence for radio communication 
systems and related services. Licensing conditions and assignment methods may vary 
from Member State to Member State. This applies to the assignment procedures as well 
as to the licensing conditions imposed on applicants. Pan-European or global systems are 
equally subject to such differences. 
5^ Directive 97/51/EC of the European Parliament and of the Council of 6 October 1997 amending Council 
Directives 90/387/EEC and 92/44/EEC for the purpose of adaptation to a competitive environment in 
telecommunications, OJ L 295/23, 29.10.1997. 
51 Directive 97/13/EC of the European Parliament and of the Council of 10 April 1997 on a common framework for 
general authorisations and individual licenses in the field of telecommunications services, OJ L117/15, 05.05.97. 
73 
Annex II EU policy on radio spectrum 
• In most cases, a licence to provide a service is coupled to the authorisation to use 
radio spectrum 
Although legally possible according to the Licensing Directive, the separation of service 
licenses and spectrum usage authorisation is not a common practice. 
• Where radio spectrum is available, it has to be assigned upon request 
This means that, where radio spectrum allocation measures have been adopted and 
implemented, Member States should deal with requests for radio spectrum use in a 
responsive and timely 'manner. 
a The assignment and use of radio spectrum should facilitate the development of 
competition and maximise the benefits for users 
Within the specific national context and in view of market and societal needs, radio 
spectrum assignment mechanisms should lead to the most efficient use of the radio 
spectrum through the competitive provision of services so as to maximise the benefits for 
users. 
4. Radio equipment and standards 
Main objective: application of the rules according to which radio equipment can be 
marketed and used 
Common frequency bands are required in order to permit the use of radio equipment in 
different countries, to minimise co-ordination problems at frontiers and to facilitate the 
large production runs for equipment necessary to make European industry competitive at 
world markets. Community policy with respect to standards is aimed at allowing non­
discriminatory and technology-neutral access to radio spectrum while ensuring 
interoperability and pan-European provision of services. 
Political and legal base 
IRadio equipment and standards 
Council Resolution 90/C • Common frequency bands are required in order to permit the use of 
166/02 equipment in different countries, to minimise co-ordination problems at 
frontiers and to facilitate the large production runs for equipment necessary 
to make European industry competitive on the world market 
• CEPT to interact closely with ETSI in order to ensure the vital link between 
frequency planning and standards 
Proposal for an EP and • Radio equipment can move freely in the European Community 
Council Directive on radio • The introduction of a general framework for the authorisation of use of radio 
and telecommunications equipment 
Iterminal equipment # Tne aDO|jtjon of a prion market access controls (3rcJ party certification); 4 
(RTTE)52 week advance notification period before putting on the market of equipment 
using non-harmonised frequencies 
• Member States are required to plan the use of radio spectrum in a 
transparent manner 52 COM(97)257, OJ C248, 14.8.1997. A Common Position has been established: Common Position (EC) No. 
39/980 of the Council of 08.06.98, OJ C227/37, 20.07.98. The proposed Directive will replace Directive 
98/13/EC of the European Parliament and of the Council of 12 February 1998 relating to telecommunications 
terminal equipment and satellite earth station equipment, including the mutual recognition of their conformity, OJ 
L074, 12.03.1998. 
VI 
_74 
Annex II EU policy on radio spectrum 
Present practice 
The relation between radio spectrum harmonisation and standards is governed in the 
following ways: 
• Common European standards for telecommunications are elaborated in the context 
of ETSI 
The elaboration of common European telecommunications standards is achieved in ETSI 
(European Telecommunications Standards Institute). Where required, e.g. when a 
Community regulation requires a common technical basis, the European Community may 
support ETSI to develop such standards and may request CEPT to identify and 
harmonise the necessary radio spectrum. 
a CEPT and ETSI have established working arrangements 
As regards the relationship of radio spectrum with standards, a memorandum of 
understanding governs the co-ordination between CEPT/ERC and ETSI. ETSI and CEPT 
representatives are mutually involved in the respective work programmes. 
The free movement and putting into service of radio equipment is governed at 
Community level in the following way: 
• Community legislation will govern the free movement and use of radio equipment 
Radio equipment is covered by the proposed RTTE Directive which will remove regulatory 
barriers to the free movement and use of equipment, whilst providing safeguards for 
Member States to protect the radio spectrum. The Directive will abolish a priori market 
access controls and rely on the responsibility and liability of manufacturers and suppliers, 
whilst Member States will have an increased responsibility for surveillance. Under the new 
regime, the rendering of mandatory standards or national specifications, common in the 
regimes it replaces, will be abolished. 
5. The institutional framework for frequency co-ordination 
Main objective: ensuring that the framework for the co-ordination of radio spectrum 
complies with Community interests and international obligations 
The main principle governing Community action in this area has been to pay particular 
attention to the possibility in certain cases of achieving the objectives set out in the Treaty 
through international agreements, rather than via internal instruments. In other words, 
when appropriate and effective action is already taken at international level, the 
Community may abstain from adopting specific Community measures. Following the 
adoption in the early 1990s of a number of Council Resolutions and Council Conclusions, 
the European Community seeks to ensure that the Member State co-ordination of the use 
of radio spectrum in the European Conference of Postal and Telecommunications 
administrations (CEPT) and in the World Radiocommunications Conferences (WRC) of 
the International Telecommunication Union (ITU) comply with Community interests. 
VII 
>( 
Annex II EU policy on radio spectrum 
Political base 
Framework for frequency co-ordination in Europe 
I Council Resolution 90/C • Commission and Member States should support the CEPT framework, 
166/0253 including the setting up of ERO (European Radiocommunications Office) 
• CEPT should take account of the opinions of national frequency experts, 
telecommunications organisations, and other service providers, industry, 
and users 
• CEPT to recommend to regulatory authorities or to the Community suitable 
frequencies for pan-European services 
• CEPT to recommend to regulatory authorities or to the Community long-
term requirements for the frequency spectrum 
Council Resolution 92/C • Commission to give full consideration to the mechanism of ERC (European 
318/0154 Radiocommunications Committee) decisions as the primary method of 
ensuring the provision of the necessary frequencies for new Europe-wide 
radio services 
Council Conclusions of 7 • Confirmation of Council Resolution 92/C 318/01 
December 1993 • ERC decision mechanism should be implemented, and 
• Commission shall sign a memorandum cf understanding and a framework 
agreement with ERC/ERO to this end 
European co-ordination towards ITU/WRC 
Resolution 90/C 166/02 « CEPT to develop common European positions for ITU/WRC 
Council Conclusions of 3 • Community co-ordination at WRC will take place only if CEPT co-ordination 
IFebruary 1992 does not arrive at the agreements necessary in order to uphold the interests 
of the Community and the Member States 
• The Community alone is able to enter into external commitments at WRC 
as far as the frequency Directives (GSM, DECT, ERMES) are concerned 
Council Conclusions of 22 • Confirmation of the Council Conclusions of 3 February 1992 
September 1997 • Commission to participate closely in and with CEPT/CPG, including as 
regards bilateral contacts with third countries and regional 
telecommunications organisations 
• Commission to set up industry consultation mechanism 
Present practice 
With regard to the European co-ordination framework, the European Community seeks to 
ensure compliance of the positions of the Member States in CEPT and ITU/WRC with legal 
obligations and agreed policies in the following ways: 
a The positions of the Member States in CEPT and ITU/WRC are subject to specific 
political and legal objectives to be achieved in the European Community 
This procedure is followed in the case of mobile and satellite communications (i.e. GSM, 
DECT, ERMES, S-PCS and UMTS). Where the work of CEPT or the implementation of 
harmonisation measures by Member States is not satisfactory, appropriate action at 
Community level can be taken. 
53 
54 Council Resolution of 28 June 1990 on the strengthening of Europe-wide co-operation on radio frequencies, in 
particular with regard to services with a pan-European dimension, OJ C166/4, 07.07.90. 
Council Resolution of 19 November 1992 on the implementation in the Community of the European 
Radiocommunications Committee decisions, OJ C318//1, 04.12.92. 
VIII 
5fc 
Annex II EU policy on radio spectrum 
• In the absence of specific Community objectives to be achieved, the European 
Commission assesses on the basis of technical information available in CEPT and 
ITU/WRC whether the political and economic interests of the Community are 
safeguarded 
The Commission is counsellor to CEPT and represents the Community as observer in 
ITU/WRC. These bodies address the need for the harmonisation of radio spectrum on the 
basis of technical information. In this process, the Member States' positions are not 
subject to any form of Community co-ordination and CEPT and Member States have the 
final say over whether or not to support the adoption and implementation of radio 
spectrum harmonisation measures. The Member States' positions are generally not 
subject to any form of Community co-ordination in this process. 
• The Community contributes to the development by CEPT of radio spectrum 
harmonisation measures or of European positions for ITU/WRC 
Through the memorandum of understanding and framework agreement with ERC/ERO, 
the Community can financially contribute to the development of appropriate measures and 
positions although it does not have the legal means to enforce decisions to be taken or to 
be implemented. The Member States' positions are generally not subject to any form of 
Community co-ordination in this process. 
IX 
J/-
Annex III List of abbreviations 
ANNEX III 
ACTS 
CEPT 
CPG 
DECT 
DSI 
DVB 
EBU 
ECP 
ECTEL 
ECTRA 
EEA 
EO 
ERC 
ERMES 
ERO 
ESA 
ETNO 
ETSI 
EC 
EU 
EUMETSAT 
GATS 
GLONASS 
GNSS 
GMPCS MoU 
GPCS LIST OF ABBREVIATIONS 
Advance Communications Technology Systems 
European Conference of Postal and Telecommunications 
Administrations 
Conference Preparatory Group of the CEPT 
Digital Enhanced Cordless Communications 
Detailed Spectrum Investigation 
Digital Video Broadcasting 
European Broadcasting union 
European Common Proposals 
Association of the European Telecommunications and Professional 
Electronics Industry 
European Authorities for Telecommunications Regulation ? 
European Economic Area 
Earth Observation 
European Radiocommunications Committee of CEPT 
European Radio Messaging system 
European Radiocommunications Office of CEPT 
European Space Agency 
European Telecommunication Network Operators Association 
European Telecommunications Standardisation Institute 
European Commission 
European Union 
European Meteorological Satellite 
General Agreement of Trade in Services 
Global Orbiting Navigation Satellite System of the Russian 
Federation 
Global Navigation for Satellite Systems 
Global Mobile Personal Communications Services Memorandum of 
understanding 
Global System for Mobile communications 
?Z 
Annex III List of abbreviations 
ICAO 
IMT 
IMO 
IT 
ITA 
ITU 
ITURR 
MoU 
MRA 
MRC 
MSS 
NTFA 
OECD 
ONP 
RACE 
RR 
RTD 
RTTE 
S-PCS 
TENs 
WLL 
WRC 
WTO 
UMTS International Civil Aviation Organisation 
International mobile Telecommunications 
International Maritime Organisation 
Information Technology 
International Technology Agreement 
International Telecommunications Union 
International Telecommunications Union Radio Regulations 
Memorandum of Understanding 
Mutual Recognition Agreement 
Milestone Review Committee 
Mobile Satellite Services 
National Tables of Frequency Allocation 
Organisation of Economic Co-operation and Development 
Open network Provision 
Research and technology development in advanced communications 
in Europe 
Radio Regulations of the ITU 
Research and Technological Development 
Radio and Telecommunications Terminal Equipment (Directive) 
Satellite Personal Communications Services 
Trans European networks 
Wireless Local Loop 
World Radiocommunications Conference 
World Trade Organisation 
Universal Mobile Telecommunications System 
^ 
ISSN 0254-1475 
COM(98) 596 final 
DOCUMENTS 
EN 15 10 16 
Catalogue number : CB-CO-98-759-EN-C 
Office for Official Publications of the European Communities 
L-2985 Luxembourg