No C 356/46 Official Journal of the European Communities 31. 12. 87 
ning are therefore essential. Efficiency must of course 
take precedence and the impact of certain cut-backs 
Done at Brussels, 19 November 1987. 
1. Importance of the telecommunications sector 
Telecommunications play a fundamental and growing 
role at both Community and world level. The sector is 
important: 
1.1. In economic terms: according to the Com­
mission in 1985 world revenue from telecommuni­
cations services was almost ECU 300 billion, Com­
munity enterprises accounting for 62,5 billion. By 1986 
the world market for telecommunications equipment 
had reached ECU 90 billion, of which 17,5 billion was 
accounted for by the Community. Furthermore, the 
telecommunications sector has maintained its momen­
tum despite the unfavourable economic situation and 
spectacular growth is expected over the coming years: 
its present share of about 2% of Community gross 
domestic product (GDP) could rise to 7% by the end 
of the century. 
1.2. In social terms: the telecommunications sector 
provides several hundred thousand jobs in the Com­
munity and the Commission estimates that, via infor­
mation technology, more than 60% of Community 
employment may depend directly or indirectly on this 
sector by the end of the century. must be carefully assessed. Discipline is essential in 
both drafting and implementing the budget. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT 
1.3. As a service which enables people to contact 
each other: here it should be borne in mind that telecom­
munications are a public service and play an important 
role in society. Any Community telecommunications 
policy should safeguard this public service role; its 
principal objective should be to ensure that all Com­
munity citizens have access to good, modern communi­
cations services at reasonable prices wherever they live 
and whatever their income (e.g. farming zones, remote 
areas, small islands). 
1.4. Over recent years the telecommunications sector 
has been in a state of constant change due to: 
— the fusion of telecommunications technology with 
information and audio-visual technology, 
— the speed of technological diversification, 
— the expanding range of new forms of access to 
sources of information, 
— the explosive growth in communications require­
ments, 
— the major importance of scale effects on the pro­
duction of equipment. Opinion on the communication by the Commission entitled 'Towards a dynamic European 
economy — Green Paper on the development of the common market for telecommunications 
services and equipment' 
(87/C 356/12) 
On 22 July 1987 the Commission decided to consult the Economic and Social Committee on 
the abovementioned communication. 
The Section for Transport and Communications, which was responsible for preparing the 
Committee's work on the subject, adopted its Opinion on 11 November 1987. The rapporteur 
was Mr Rouzier. 
At its 250th plenary session (meeting of 18 November 1987) the Economic and Social 
Committee adopted the following Opinion by a large majority, with 2 votes against and one 
abstention: 
31. 12. 87 Official Journal of the European Communities No C 356/47 
2. Need for a Community telecommunications policy 
2.1. First of all, the importance of a Community 
telecommunications policy for the completion of the 
internal market by 1992 is clear: such a policy would 
have a beneficial impact on intra-Community trade in 
services; it would also help to eliminate barriers to trade 
and to reduce the cost of transactions. Hence it would 
benefit all Community citizens, including private users. 
2.2. Telecommunications policy is linked to other 
Community activities and policies in such fields as 
research, development and technology, the establish­
ment of a Community-wide information market and of 
a Community-wide audio-visual area. 
2.3. A Community telecommunications market will 
also have a highly beneficial impact on the compe­
titiveness of the European economy. It should be noted 
that at present, according to the Commission's esti­
mates, no Community country represents more than 
6% of the world telecommunications market, com­
pared with 35% for the US and 11% for Japan. The 
single Community market, on the other hand, already 
accounts for more than 20 % of the world market. 
2.4. A common telecommunications policy would 
help to strengthen Community infrastructure and 
cohesion, which is one of the main objectives of the 
Single Act. 
3. Previous Committee Opinions on telecommuni­
cations 
3.1. Over recent years the Committee has endorsed 
Community-wide harmonization in the field of telecom­
munications, coordination of development of the sector, 
and common infrastructure projects (*). More specifi­
cally it has supported the Commission's proposals on 
the coordinated introduction of the integrated services 
digital network (ISDN), the coordinated introduction 
of public pan-European digital mobile communications, 
the introduction of future broadband communications 
and the Commission's proposals on R Sc D in the field 
of advanced telecommunications technologies (RACE). 
In addition, the Committee has approved the Com­
munity programme for the development of certain less-
favoured regions of the Community by improving 
(!) See inter alia: ESC Opinion of 25 February 1981 (OJ No 
C 138, 9. 6. 1981, p. 26); Opinion of 17 September 1986 (OJ 
No C 328, 22. 12. 1986, p. 10); Opinion of 1 July 1987 (OJ 
No C 232, 31. 8. 1987, p. 13); Opinion of 30 May 1985 (OJ 
No C 188, 19. 7. 1985, p. 16). access to advanced telecommunications services (STAR 
programme) (2). 
4. General comments 
4.1. First we must express our dissatisfaction that 
the Committee was given such a short deadline to draw 
up an Opinion on such an important and vast subject. 
We reserve the right to reexamine specific problems 
when the Commission presents its proposals for 
attaining the objectives of the Green Paper. In the 
comments which follow we give our opinion on the 
most important points contained in the Green Paper. 
4.2. Setting the greatest store by the achievement of 
the internal market by 1992, we approve the overriding 
aim of the Commission proposal, which is 'to develop 
the conditions for the market to provide European users 
with a greater variety of telecommunications services, 
of better quality and at lower cost, affording Europe 
the full internal and external benefits of a strong tele­
communications sector', by the same token we approve 
the thrust of the policies proposed in the Green Paper. 
We share the Commission's conviction regarding the 
growing importance of telecommunications and their 
impact on the economy of each Member State and on 
the Community as a whole. 
4.3. We have, however, reservations on certain 
points and on the way in which the proposed objectives 
are to be achieved. 
5. Specific comments 
5.1. Firstly, we approve entirely the maintenance (or 
creation) of the current and future integrity of the basic 
network infrastructure, which should include cable and 
satellite TV networks, used for two-way communi­
cations, as recommended in the Green Paper. Similarly 
we support the continued exclusive or special rights of 
the telecommunications administrations to provide and 
operate the network infrastructure and to provide cer­
tain basic services; the aim being primarily to safeguard 
their public service role. 
5.2. The full opening of the terminal market to com­
petition must be phased, and short-term, transitional 
solutions found, since for the moment a large majority 
of Member States wish to maintain the monopoly on 
the first telephone set. The continuation of this mon­
opoly will ensure, among other things, that telecom­
munications services are provided on a uniform tariff 
base in the disadvantaged regions. 
(2) ESC Opinion of 3 July 1986 (OJ No C 263, 20. 10. 1986, 
p. 35). 
No C 356/48 Official Journal of the European Communities 31. 12. 87 
5.3. While agreeing that competition should be 
strengthened in the telecommunications services sector, 
we are concerned at the degree of trust which the 
Green Paper places in competition as a stimulus for 
the development of telecommunications. We wonder 
whether sufficient account has been taken of the right 
of the telecommunications administrations to compete 
on an equal footing in those areas open to competition. 
5.4. The financial viability of the telecommuni­
cations administrations is also very important if they are 
to maintain a reliable network and make the substantial 
investments needed for modernization of the network, 
without which the most technologically advanced ter­
minals and services would be pointless. The telecom­
munications administrations must also be in a sound 
financial position if they are to fulfil their public service 
mandate. 
5.5. The terms used in the Green Paper do not make 
a clear definition of basic services. Hence we consider 
that 'exclusive provision' of these services by the tele­
communications administrations, without fixing any 
time-limit at this stage, cannot be confined solely to 
voice telephony. It should include telegraph, telex, digi­
tal and data transmission, and all two-way transmission 
systems. 
5.6. Another proposal in the Green Paper is the 
acceptance by the telecommunications administrations 
of clear obligations to interconnect with and provide 
access to transfrontier service providers. This proposal 
is of major importance for the attainment of a Com­
munity telecommunications market. The opening-up of 
the network to service providers from other Member 
States should, however, take place under conditions of 
fair competition, subject to approval and authorization 
procedures. 
5.7. The financial aspects of meeting the objectives 
of the Green Paper, e.g. the provision of private capi­
tal (*) are not dealt with in sufficient depth. The ques-
(l) On the financing of major Community infrastructure projects, 
see the Committee's recent Opinion adopted on 22 October 
1987 (OJ No C 347, 22. 12. 1987). 
Done at Brussels, 18 November 1987. tion arises whether, for instance, the considerable sums 
needed to attain these objectives will jeopardize other 
activities, such as the public service mandate of the 
telecommunications administrations. 
5.8. There are grounds for doubting whether the 
proposals contained in the Green Paper will, as a whole, 
have the desired impact on employment policy. It is to 
be feared that the process of concentration among 
telecommunications equipment suppliers will only be 
intensified and that non-European firms will increase 
their penetration into the European market. Measures 
should be taken, in the R&D field especially, to enable 
small firms to meet such competition. 
5.9. On the other hand, the Commission's view on 
the need for an intensive dialogue with the social part­
ners—including with representatives of the users (hou­
seholds)—is welcome. If this is in fact the Commission's 
firm intention it should also examine the social reper­
cussions of its proposals, in particular on employment, 
working methods, qualifications, vocational training, 
and retraining. The Commission should then hold dis­
cussions with the social partners on how best to use its 
findings. 
5.10. We approve the Commission's proposal for 
setting up a European Telecommunications Standards 
Institute in which the European Conference of postal 
and telecommunications administrations (CEPT) 
should continue to play a major role. Standards and 
specifications must be drawn up in accordance with the 
requirements of the networks provided by the adminis­
trations and must apply to all Western European 
countries. 
5.11. The telecommunications administrations of the 
Member States should start right now to work more 
closely together to bring about the objectives of the 
Green Paper. 
5.12. It is to be hoped that when the Commission 
has finished its consultations it will be in a position to 
put forward a precise timetable — lacking in the Green 
Paper — for the attainment of its objectives. 
The Chairman 
of the Economic and Social Committee 
Alfons MARGOT