Amended proposal for a COUNCIL DIRECTIVE on the adoption of standards for satellite broadcasting of television signals
Date: 1991-12-05
Institutions: European Commission
Subjects: European standard, harmonisation of standards, high-definition television, satellite communications

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(91)530  final - SYN 350 

Brussels, 5  December 1991 

Amended proposal for a 

COUNCIL DIRECTIVE 

on the adoption of standards for satellite broadcasting 
of television signals 

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(presented by the Commission pursuant to Article 149(3) 
of the EEC-Treaty) 

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EXPLANATORY MEMORANDUM 

On 9 July 1991 the commission presented its initial proposal for a 
council Directive on the adûptloa of standards for the satellite 
.broadcasting of television signals (C0H(91)242 final-S3N 350). 

«rh«» European Parliament expressed its Opinion, at first reading on 20 
Jtovember 1991, In the Light Of that Opinion the Cdmmiccien hereby 
^*xr,*<:  i±j£  init? nl  proposal. 

This ^TTW*ndprt proposal follows the ling announced by the Commission at 
the plenary session, of Parliament and incorporates all the amendments 
which the Commission had accepted, including those accented subject to 
revision of the taxfc-

The resulting- —•—»*+* proposal represents a broadly consistent solution 
to the text, takes account of toe point of view of the suropoan 
Parliament as regards certain spécifie aspects (such as the duration of 
the Directive, financial support from, the Cmamttnlty and the relaxation 
of a number of obligations} and solves certain specific problems raised 
by the Members in their amendments. The Commission consider?* that this 
new proposal takes better account of the foreseeable development of the 
market and its needs while at the same time ensuring- genuine 
convergence towards ED-K&G via the intermediate standard M.—K&e>16rS. 

only amendments 15 and 18 were not accepted by the Commission - the 
former because the Commission cannot accept subordination of the entry 
Into farce of the Directive to an act of private law such as the HOU<. 
and the latter because it provides for excessively broad derogations 
for certain cable operators. 

- 4-

Amended  p r o p o s al 

f or  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 from 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);and 
whereas  this  should  be avoided  in  the  future  in order  to prevent.a  split  in  the  satellite 
market. 

1  OJ  NoL311,  6.11.1986,  p. 28. 

2  OJ  No L 142,  25.5.1989,  p. I. 

3  OJ  No L 363,  13.12.1989,  p. 30. 

Whereas  in order  to reach  Community  goals as set out  in the Council  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  for  satellite  television  broadcasting  using  4:3  aspect  ratio  format  should 
not be  forced  to a compulsory stop or change so as not to jeopardize the present  market  or 
inconvenience  users;  however,  incentives  may  be  provided,  through  a  parallel  legal 
instrument,  in  order  to support, in addition, the use of the D2-MAC standard,  in  particular 
in  16:9 format,  inter alia through simultaneous transmissions  ("simulcast"); 

Whereas it  is vital  to  ensure  that  audiovisual  programmes  adapted  to  the  new  16:9  format 
are  available  in  sufficient  quantity  and  quality  and  that  it  therefore  is  appropriate  to 
provide, through  a parallel legal instrument, for Community  financial  incentives; 

Whereas  in the  medium  term  the capacity of satellite systems  is limited  and  as a  result  the 
scope for  the simulcast  transmissions  of  programmes  in different  standards  is also  limited, 
it will be necessary to make a selection of programmes for such  transmissions; 

Whereas  in the  interests of the consumer  it  is necessary to  establish a common  conditional 
access  system  compatible  with  D2-MAC  and  HD-MAC,  without  hampering 
the 
technological  development  of  these  systems;  whereas,  therefore,  the  best  solution  is  a 
system consisting of a common access unit  to which one or more smart cards can be  added; 

Whereas cable TV  networks  are a  relevant  feature  in the  television  infrastructure  of  many 
Member  States and will be 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  the  Commission,  the 
Member  States and  the European  Industry; 

Whereas  it  is  essential  that  there  should  be  complete  agreement  between  broadcasters, 
satellite  operators,  manufacturers  and  cable  operators  about  the  introduction,  as  soon  as 
possible,  of  16:9  D2-MAC  services  in  conformity  with  the  objectives  set  out  in  Decision 
89/337/EEC  and  whereas such agreement  might be  reached  by means of a  Memorandum 
of  Understanding; 

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 and  in the framework  of EC 
research programmes; 

Whereas a strategy for the introduction of High Definition Television has been laid down 
at  Community  level  and  European  undertakings  have  made  significant  investments 
involving many jobs; 

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: 

ARTICLE 1 

Member  States  shall  take  all  measures  to  promote  and  support  the  introduction  and 
development of  advanced sateUite broadcasting services for television programmes, using 
the HD-MAC standard for not completely digital High Definition Television transmission 
and the D2-MAC standard for other not completely digital transmission in the 16 :9 aspect 
ratio format. 

ARTICLE 2 

1.  For  any transmission  of  a television  service in  the high definition  television  format 

that is not completely digital 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; 

in respect  of  any service  in the  16 : 9 aspect  ratio format  only the D2-MAC 
standard may be used. Financial support will be provided by the Community; 

in  respect  of  any  other  service  starting  after  1 January  1995,  the  D2-MAC 
standard must be used. Financial  support will be provided by the Community. 
These services may also be transmitted simultaneously  in PAL, SECAM or ID-
MAC; 

in respect of services in existence prior to  1 January 1995, PAL, SECAM or D-
MAC may continue to be used as long as the service provider wishes. From 1 
January  1995  ,  these  services  must  also  be  transmitted  using  the  D2-MAC 
standard. Financial support will be provided by the Community. 

5-

ARTICLE3 

DELETED 

ARTICLE 4 

Member  States  shall  take  all  measures  to  ensure  that  as  from  1 January  1994, all  new 
television sets and all new domestic satellite receivers for sale or rent in the Community: 

-  in respect to all television sets with  16:9 format possess a D2 MAC decoder; 

-  in respect of all other such equipment, possess at least a standardized socket by means of 
which  a  D2-MAC  decoder  may  be  connected  to  the  equipment  permitting  an  open 
interface standard. 

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; 

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

-6 

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 1 January 1993 is used. 

ARTICLE 7 

1.  This Directive shall apply until 31 December 1999. 

2.  Before 1 January 1994 and every two years thereafter, 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, the evolution of the market and the use 
of  the  Community  funding.  If  necessary,  the  Commission  shall  make  proposals  to 
adapt this  Directive  to  these  developments,  in particular  in  order  to confirm  or  to 
amend the obligations set out in Article 2, paragraph 2,3rd indent. 

3.  Before the date when this Directive expires the Commission shall submit, if necessary, 
proposals to the Council on a policy of standardization £>r HDTV, in accordance with 
the  objective  of  achieving  total  harmonization  of  all  television  broadcasting media, 
whether  analogue  or  digital,  by  satellite,  cable  or  terrestrial  redistribution.  These 
proposals should take into account the results of European collaboration  in research 
and development and the work of the relevant standardizing organisations in Europe. 

Article 7 a 

The  rules  laid  down  in  this  Directive  shall  be  accompanied  by  simultaneous  financial 
measures designed  to support the creation of a  European market  for the  D2-MAC, 16:9 
and  HD-MAC  standards  and commercial  measures  based on  the .signing,  by the parties 
concerned, of  a  Memorandum  of  Understanding coordinating  the actions of  the various 
signatories. 

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 governed by this Directive. 

ARTICLE 9 

This Directive is addressed to the Member States. 

Done at Brussels, 

For the Council 

The President 

ISSN 0254-1475 

COM(91) 530 final 

DOCUMENTS 

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Catalogue number : CB-CO-91-583-EN-C 

ISBN 92-77-78791-0 

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