PROPOSAL FOR A COUNCIL DIRECTIVE ON THE ADOPTION OF STANDARDS FOR SATELLITE BROADCASTING OF TELEVISION SIGNALS
Date: 1991-07-09
Institutions: European Commission
Subjects: European standard, harmonisation of standards, high-definition television, satellite communications

COMMISSION OF THE EUROPEAN COMMUNITIES 

C0M(91) 242 final  - SYN 350 

Brussels, 9  July 1991 

Proposal  for a 

COUNCIL  DIRECTIVE 

on the adoption of standards  for satellite  broadcasting 

of  television  signals 

(presented  by  the Commission) 

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-1  -

EXPLANATORY MEMORANDUM 

The current situation 

1.  Direct broadcasting by satellite of television programmes is currently regulated by 

Council  Directive  86/529/EEC  of  3  November  1986.1  This  lays  down  the 

obligation to use the MAC/Packet  system for broadcasts  transmitted  from high-

power satellites (BSS satellites). 

2.  The text of that directive is the result of a series of transformations of the original 

idea as it had been clearly expressed in the Communication from the Commission 

to  the  Council  of  24  May  1985.2 This  aimed  to  have  the  MAC/Packet  system 

adopted  as  the  exclusive  European  standard,  without  any  distinction  between 

different  satellites  and avoiding the  use,  even  for  a transitional  period,  of  other 

standards in the different Member States. 

3.  By  contrast,  the  legal  position  resulting  from  the  combined  application  of  the 

dispositions contained  in articles  1 and 2 of  the same Directive,  has produced a 

dual  regime  for  satellite  broadcasts:  one  regime  regulated  by  the  Directive  for 

high-power  satellites  and  another  regime,  with  no  restrictions,  for  the  other 

satellites which lie outside the field of application of the Directive. 

1  O J. n° L 311,6 November 1986, p. 28 ff. 

2  COM (85) 264,24 May 1985. 

Th» dual regime has led in turn to a double market. Technological development 

has created favourable conditions for medium-power satellites, which have started 

transmitting using the PAL and Secam standards. 

Substantial investments have been  made  in the different  systems over the same 

period On the one hand, the European industry has invested in the development 

of  MAC  wkh  HDTV  as  the  aim;  on  the  other  hand,  a  good  number  of 

feroajdeastcra  and  operators  have  invested  in  satellite  broadcast»!  using 

PXL/Seaan. 

I.  Gives  the  sftaatSo*  described  above,  it  has  become  very  difficult  for  the 

Community to achieve the objective it has set itself - the development  of HDTV 

using die European HD-MAC standard, passing through the intermediate step of 

the D2-MAC standard, following the approach of the EUREKA-95 pepiect. This 

afiows a transition to HDTV following the principle of compatibility with existing^ 

systems, a clear advantage for consumers. 

This  objective was  considered  as  being  of  strategic  interest  for  Europe  in  two 

decisions adopted unanimously by the Council, on 27 April  1989  (89/337/EEC) 

and 7 December 1989 (89/630/EEC).3 

5.  The concrete  problem  posed  now  is that  of  working  out  how  to  pass  from  the 

divergent evolution resulting from the 1986 Directive to a convergent evolution. 

»  OJ. *0L 142,25 May 19», p. 1 ft; OJ. L3S3, 13 December 1989, p. 30  ff. 

In the present situation, characterized by a double market with seriously  differing 

interests, it is not sufficient  to draft and to adopt a legislative decision which seeks 

on its own to replace the Directive which expires on 31 December  1991. That is 

certainly a necessary condition, but not a sufficient condition. 

It is necessary in parallel to work out and make a reality of a credible scenario for 

this  decade,  by  means  of  a  firm  commitment  by  all  the  economic  players 

concerned. 

6.  This overall strategy can end a period  of uncertainty which has had its effect  on 

the path towards European HDTV. Furthermore, it will allow the Community to 

carry out its regulatory duty in the area of norms and standards more effectively in 

market terms. 

As  stressed  in  the  Communication  from  the  Commission  to  the  Council  of  16 

November  1990  on  industrial  policy  in  an  open  and  competitive  environment,4 

standards promote competitiveness by: 

lowering costs for producers; 

shaping customer preferences for products by their familiarity; 

enabling  the  emergence  of  new  markets,  particularly  for  developing 

technologies,  where  they  are  becoming  a  pre-condition  for  industrial 

production or marketing. 

4  COM (90) 556,16 November 1990. 

7.  The  specific  characteristics  of 

the 

television  sector  display  very  strong 

interdependence between  the various players. 

On  the  one  hand,  the  market  for  TV  receivers  cannot  develop  without  an 

adequate  supply,  in both  quantitative  and  qualitative  terms,  of  programmes  using 

the  new  standards,  as  well  as  enough  hours  of  transmissions,  while  on  the  other 

hand  it  would  not  make  sense  to  start  up  transmissions  without  the  existence  of 

enough  receivers. Moreover,  neither  of these two operations can  take place  unless 

one can count  on sufficient  satellite capacity. 

8.  All  the  considerations  expressed  above  led  the  Commission  to  take  the  initiative 

of bringing together  around  a table the different  categories  of actor,  to solicit  their 

active  participation  in  the  development  of  an  overall  strategy.  This  strategy 

includes  both  the  legal  and  standards  aspects  (clear  definition  of  the  new  regime 

from  1 January  1992, with  a guarantee  to preserve  the  rights legitimately  acquired 

during the current  situation  of  a dual  regime), as well as  the aspects  more  directly 

relating  to  the  area  of  activity  of  enterprises  (essentially  a programme  setting  out 

dates  and  figures  with  the  aim  of progressively  developing  a  market  for  television 

in D2-MAC and  HD-MAC). 

9. 

In  order  to  implement  the  strategy  described  above,  the  Commission  has 

undertaken  consultations  of  the  parties  concerned:  industry,  private  and  public 

broadcasters,  satellite  and  cable  operators,  programme  producers.  Two  plenary 

meetings were held  on 28 February  and  27 March  1991, prepared  and  followed  up 

by many bilateral and multilateral contacts and  meetings. 

5-

The  instruments 

10.  On the basis of the above considerations, which h•-- 

"Vom the start  enjoyed  a wide 

consensus among the operators consulted, the Commission has identified  a  double 

instrument to reach these  objectives. 

This  double  instrument  consists  of  the  combination  of  the  new  Directive  with  a 

"Memorandum  of  Understanding"  (MOU).  Under  this  MOU,  the  operators 

concerned  take  on  reciprocal  commitments  in  the  framework  of  a  coordinated 

action  aimed  at  the development  and  promotion  on  the  market  of  equipment  and 

services in the D2-MAC standard  and with the  16:9  format. 

11.  The  inseparable  link  between  the  Directive  and  the  MOU  will  be  established  by 

the  insertion  into  the  recitals  of  the  Directive  of  an  explicit  reference  to  the 

existence of the MOU  and to its content. 

Additionally,  the participation  of the  Commission  in  the  MOU  and  the  projection 

of  incentives  from  the  Community  budget  will  make  it  possible  to  ensure 

consistency  between  the  standards-setting  dimension,  which  lies  within 

the 

competence  of  the  Community  institutions,  and  the  operational  dimension,  which 

pertains to the enterprises  concerned. 

12.  In the course of the many contacts between  the parties concerned,  major  elements 

of  consensus  have  emerged.  There  is  a  common  desire  concerning  the  basic 

content  of  the  MOU.  The  specific  points  which  are  still  open  can  be  resolved 

taking  into  account  the  common  interest  in  achieving  agreement  on  such  an 

important  matter. 

13.  The  Commission  presented 

the  main 

lines  of 

its 

strategy 

to 

the 

Telecommunications  Council  on  the  occasion  of  its  meeting  in  Luxembourg  on  3 

June  1991.  Though  in  the  presence  of  views  which  were  still  divergent,  the 

Commission was unanimously encouraged to carry on with its approach; stress was 

laid in particular on the great importance of and the intimate association between 

the two instruments - the Directive and the MOU. 

The conditions  therefore  exist  to  start  the  procedure  which  should  lead  to  the 

adoption  of  the  new  Directive  by Council  before  the  end  of  the  year  1991, in 

parallel with the formal completion of the MOU. 

The Directive 

14.  The draft Directive proposed for examination by the Commission is based on five 

key points: 

a. 

HD-MAC  is  defined  as  the  sole  European  standard  for  HDTV.  This 

objective will be reached by means of an intermediate standard, D2-MAC, 

especially in 16:9 format. 

b. 

All new services and all new satellites, which become operational after the 

date of implementation of this Directive, must use the D2-MAC standard 

exclusively. 

Services in PAL/Secam which are in operation by 3.1 December  1991 may 

c. 

continue, without  any date being set  directly  or  indirectly for  the  end of 

their transmission, and notwithstanding the points set out in item b. above. 

The  MOU,  at  the  same  time,  will  provide  for  incentives  for  the 

simultaneous  transmission  in  D2-MAC  of  the  services  in  question 

('simulcast'). 

d. 

Equipment (satellite receivers and TV sets above 52 cm) put on sale in the 

EC from  1 January  1993 onwards, will have the obligation to contain the 

mechanisms necessary to give them the capacity of receiving D2-MAC. 

e. 

The  duration  of  the  Directive  will  be  ten  years.  The  Commission  will 

provide an evaluation report every two years, to be sent to the Council and 

the European Parliament. 

The Memorandum of Understanding (MOU) 

15.  The  MOU  forms  the  indispensable  second  pillar  of  the  Commission's  present 

strategy. It originates from the Council Decision of 27 April 1989 (89/337/EEC)5 

which provides for an action plan in the area of HDTV. 

16.  Signature of the MOU is open to all interested parties (industrialists, private and 

public broadcasters, satellite and cable operators) as well as the Commission. The 

MOU  will  constitute  a  legally  binding  agreement  for  all  the  parties  involved, 

including to this end an arbitration clause to allow its interpretation and a choice 

of jurisdiction in case of disputes. 

17.  The MOU is based on five key points: 

a. 

A  coordinated  action  to  promote  the  D2-MAC  standard  in  16:9  format 

with a view to the introduction of HDTV. 

b. 

Reciprocal, quantified  and legally binding commitments of the signatories 

laying down, for example, the minimum number of TV sets of each type to 

be  produced,  the  number  of  hours  of  programmes  to  be  broadcast,  the 

availability  of  satellites.  (This  agreement  will  not  in  any  way  include 

5  O J. n° L142,25 May 1989, p. 1 ff. 

-8 

agreements concerning selling prices  or  market  shares  and,  in  any  case,  it 

is obliged to respect  the competition  rules laid down  in the  Treaty.) 

c. 

A  system  of incentives, financed  notably by the Community,  and  aiming in 

particular  to facilitate  'simulcast' and  to  support  the  start  of  broadcasts  in 

D2-MAC. 

d. 

The  creation  of  a  consortium  between 

the  signatories,  with 

the 

participation of the Commission realized  in the most appropriate way. 

The role of the consortium  will be to coordinate  the promotional  action,  to 

administer  the  Community  incentives  and  to  supervise  the  respect  of  the 

commitments undertaken  by the parties  involved. 

e. 

The duration of the MOU will be five years, renewable. 

Implementation 

18.  The  Commission  aims to  achieve, before  the  end  of  this year,  the  adoption  of  the 

Directive  and,  in  the  same  context,  the  signature  of  the  MOU,  the  text  of  v.h-«. 

will be communicated  to the European  Parliament  and the Council. 

19.  This  will  make  it  possible  to  achieve  a  double  result:  on  the  one  hand,  it  will 

definitively  confirm  the Community  strategy  aimed  at the  introduction  of  the  HD-

MAC standard  as a common European  standard; on the other hand, it will provide 

the  equipment  makers,  the  broadcasters,  the  satellite  and  cable  operators,  the 

programme  producers  as  well  as  consumers  with  a  reliable  basis  to  guide  their 

decisions on the  market. 

20.  Subsequently,  the  aspect  concerning the  financing  of  the  system  of  incentives  will 

be  addressed.  The  Commission  envisages  the  commitment  to  this  purpose  of  a 

sum  of  the  order  of  about  100  MECU  per  year  over  a  five-year  period.  The 

informal discussions around the MOU have taken this direction. As far as 1992 is 

concerned,  the  PDB  already  foresees  a  sum  of  this  order  of  magnitude  under 

several lines. 

21.  In  parallel  with  the  reinforcement  of  the  'broadcasting  standards'  side  of  the 

European HDTV strategy, implemented through the joint effect  of the MOU and 

the Directive, the development of the programmes side is also a priority both for 

promotion of the 16:9 format and for the effective introduction of HDTV services 

from  1995 onwards. 

-  10 -

Proposal  for a 

COUNCIL  DIRECTIVE 

on the adoption of standards for satellite broadcasting 

of  television signals 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to  the Treaty  establishing  the  European  Economic  Community, 

and  in particular  Article 100a thereof, 

Having  regard  to the proposal  fro» the Commission, 

In cooperation with  the European Parliament, 

Having  regard to the opinion of  the Economic and Social  Committee, 

Whereas Council  Directive 86/529/EEC1  made provision  for  review; 

Whereas  the  Community,  through  Council  Decision  89/337/EEC2  and  Council 

Decision  89/630/EEC3,  recognized  the  strategic  importance  of  High 

Definition Television  (HDTV) for  the European consumer  electronics  industry 

and  for  the  European  television  and  film  industries, and  established  the 

strategy  framework  for  the  introduction of European HDTV; 

Whereas  Council  Directive  86/529/EEC,  in  particular  in  Article  2, 

established  a  dual  regime  by  a  limitation  of  the  application  of  the 

Directive  to only one  type of satellite, and as a consequence  a dual  market 

appeared  with  the  use  of  MAC  standards  in Broadcasting  Satellite  Service 

(BSS) and mainly  PAL and SECAM  in Fixed Satellite Service  (FSS); 

1  OJ No L 311, 6.11.1986, p. 28. 
2 
3 

OJ No L 142, 25.5.1989, p. 1. 
OJ No L 363, 13.12.1989, p. 30. 

-  11 -

Whereas  in  order  to  reach  Community  goals  as  set  out  in  the  Decisions 

mentioned  above  and  in order  to contribute  to  the  achievement  of  a  single 

market  in satellite  broadcasting  of  television  signals  as  provided  for  in 

Article 8(a) of  the Treaty,  it  is necessary  to undertake  steps  to create a 

convergence of standards, using  in parallel  a regulatory  instrument, and an 

agreement  between major  actors  in the market; 

Whereas  it  is  in the best  interest  of  European  consumers  to  follow  a path 

towards HDTV based on the criteria of compatibility and evolution,  in order 

to avoid  discontinuities and duplication of  investments; 

Whereas HD-MAC has been developed  as the European transmission standard  for 

HDTV  services  based  on  those  criteria  of  compatibility  and  evolution  and 

D2-MAC offers  the best  available  path  towards  the development  of  HDTV with 

wide-screen  16  : 9 D2-MAC as the main step  in that direction; 

Whereas  there  is  a  need  to  establish  common  standards  for  satellite 

transmission  as  an  enabling  element  for  effective  free  market  competition 

taking  into  account  that  standards  promote  competitiveness  by  lowering 

costs  for  producers,  shaping  customer  preferences  for  products  by  their 

familiarity,  and  enabling  the  emergence  of  new  markets,  particularly  for 

developing  technologies,  where  they  are  becoming  a  pre-condition  for 

industrial  production or marketing*, 

Whereas services established  during  the period of  application of  Directive 

86/529/EEC according  to  its provisions should not be forced  to a compulsory 

stop or change; however,  incentives may be provided  in order  to support, in 

addition,  the  use  of  MAC  standards,  in  particular  through  simultaneous 

transmissions  ('simulcast'); 

Whereas  in  the  interests  of  the  consumer  it  is necessary  to  establish  a 

common  standard  for  conditional  access  systems  for  D2-MAC  and  HDTV 

services; 

-  12 -

Whereas  cable  TV  and  Small  Mister  Antenna  TV  ( S M A T V)  networks  ?ire  H 

reieva.it  feature  i.i the  television  infrastructure of  many  Member  Stater  r> 1 

will  bo  very  important  to the  future of  HDTV  services; 

Whereas  Decision  89/337/EEC  called  for  an action plan  for  the  Introduction 

of  HDTV  to be prepared  in close  coordination  at  Community  level  between  ths 

Commission,  the Member  States and the European  industry; 

Whereas  broadcasters,  satellite  operators,  equipment  manufacturers,  and 

cable  operators  are  fully  committed  to  the  earliest  possible  introduction 

of  16  : 9  D2-MAC  services,  in  conformity  with  the  objectives  set  out  in 

Decision  89/337/EEC  and,  accordingly,  have  declared  their  intention  to 

enter  into a Memorandum  of  Understanding  to which  the  Commission  will  also 

be a  party; 

Whereas  the Memorandum  of  Understanding  will  set  out  the obligations of  the 

respective  parties  for  the  development  and  promotion  of  16 

9  D2-MAC 

services  in  Europe  in  accordance  with  the  terms  and  provisions  of  this 

Directive  and  will  constitute  an  integral  part  of  the overall  strategy  for 

the  introduction of  HDTV; 

Whereas  European  research  efforts  must  stay  in  the  forefront  of  all  new 

significant  developments  such  as  a  trend  towards  digital  television 

broadcasting  emissions  and  Europe  has  to  consolidate  its  research  efforts 

through  collaboration; 

Whereas  in  view  of  the  foreseeable  technical  progress  in  this  sector, 

account  should  now  be  taken of  any  subsequent  developments  of  the  existing 

systems and  provision made  for  an eventual  review of  this  Directive; 

Whereas  it  is  in  the  general  interest  as  well  as  in  the  interest  of  the 

major  actors  in the market  that  this Directive  should  be  implemented  at  the 

earliest  possible  date, 

HAS ADOPTED THIS DIRECTIVE: 

-  13 -

ARTICLE 1 

Member  States  shall  take  all  measures  to  promote  and  support  the 

introduction  and  development  of  advanced  satellite  broadcasting  services 

for  television  programmes,  using  the  HD-MAC  standard  for  High  Definition 

Television  transmission  and  the  D2-MAC  standard  for  other  transmission  in 

the 16  : 9 aspect  ratio  format. 

ARTICLE 2 

1. 

For  any  transmission  of  a  television  service  in  the  High  Definition 

Television  format  only  the HD-MAC  standard may be used. 

2. 

For  any  transmission  of  a  625  line  satellite  television  service 

receivable  by  viewers  using  domestic  satellite  receiving  equipment, 

even  if such  transmissions  are  intended  to be  redistributed  by  cable 

networks, only  the D2-MAC  standard may be used: 

in respect  of any service  in 16  : 9 aspect  ratio  format; 

in  respect  of  any  service  carried  by  a satellite  using  the BSS 

frequency  band  (11.7 to 12.5 GHz ); 

in respect  of  any  satellite  transmission  of  a service,  starting 

after  the  date  of  implementation  of  this  Directive,  or  using a 

satellite 

brought 

into  operation 

after 

the 

date  of 

implementation of  this Directive. 

ARTICLE 3 

Satellite services  in operation on 31 December  1991  and using  D-MAC, PAL or 

SECAM  standards,  may  continue  to  use  the  same  standard  for  625  lines  4:3 

format  transmissions  after  the  date  of  implementation  of  this  Directive, 

notwithstanding  the provisions set out  in the third  indent of Article 2(2). 

-  14 -

ARTICLE 4 

dumber  States  sfr&ll  take  al!  measure."-  to  ensure  thzt  <-?  frrn  *! .!*?-;!;..* rv 

1993, ali  new  television sets with  a scroon size grea*^?' than  52cn a'id i!! 

new sateSNt©  receivers, for  sale within  the Community  have  jnefuded within 

them  the necessary means to receive D2-MAC signals. 

ARTICLE 5 

Member  States shall  take all measures  to ensure that 

any  new  terrestrial  redistribution  system,  or  any  existing 

terrestrial  redistribution  system  having  the  necessary  technical 

capability, shall  be configured  in such a way  that  HD-MAC  signals can 

be transmitted  through  the network  from head-end  to  individual  homes: 

in the  case  of  cable  TV  and  SMATV  systems  channels  in the  hyperband 

(300-450  MHz)  each  having  12  MHz  bandwidth  shall  be  allocated  for 

this  purpose; existing  terrestrial  redistribution  systems  not  having 

the  necessary  technical  capability, shall  be configured  as  indicated 

above  when  their  operators  decide  on  a  technical  upgrading  of  the 

network; 

if  cable  operators  decide  the  redistribution  by  cable  of  programmes 

received  by  them  in the 16  : 9 aspect  ratio  format  and  the D2-MAC or 

HD-MAC  standard,  operators  shall  redistribute  these  programmes  also 

in the 16  : 9 aspect  ratio format  and  the D2-MAC or  HD-MAC  standard. 

ARTICLE 6 

In the case of  all  services using  the D2-MAC  standard, which  are  encrypted 

and  employ  a  conditional  access  system,  Member  States  shall  take  all  the 

necessary  measures  to  ensure  that  only  a  conditional  access  system  fully 

compatible  with  D2-MAC  and  standardized  as  such  by  a  European 

standardization  organization  by  the  date  of  implementation  of  this 

Direct ive,  is used. 

-  15 -

ARTICLE 7 

This  Directive  shall  apply  until  31  December  2001.  Every  two  years,  the 

Commission  shall  submit  to  the  European  Parliament,  to  the  Council  and  to 

the  Economic  and  Social  Committee  a  report  on  the  application  of  this 

Directive  and,  if  necessary,  make  further  proposals  to  adapt  it  to 

developments  in the field of satellite television broadcasting. 

ARTICLE 8 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and 

administrative provisions  necessary  to comply  with  this Directive no 

later  than  three  months  after  the  date  of  its  notification.  They 

shall  forthwith  inform the Commission  thereof. 

When  Member  States  adopt  these  provisions,  these  shall  contain  a 

reference  to this Directive or shall  be accompanied  by such  reference 

at  the  time  of  their  official  publication.  The  procedure  for  such 

reference shall be adopted by Member States. 

2. 

Member  States  shall  communicate  to  the  Commission  the  texts  of  the 

provisions  of  national  law which  they  adopt  in the  field  covered  by 

this Direct ive. 

ARTICLE 9 

This Directive  is addressed  to the Member States. 

Done at Brussels, 

For  the Council 

The President 

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