Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION on a series of guidelines for trans-European telecommunications networks (presented by the Commission)
Date: 1995-05-31
Institutions: European Commission
Subjects: EU aid, access to information, action programme, project of common interest, trans-European network, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  31.05.1995 
COM(95) 224 final 

95/0124 (COD) 

TOWARDS THE INFORMATION SOCIETY 

COMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

on a 

Methodology  for 
the  implementation  of  information  society 
applications 

Proposal  for  a 

EUROPEAN  PARLIAMENT  AND  COUNCIL  DECISION 

on  a  series  of  guidelines  for  trans-European  telecommunications 
networks 
(presented  by  the  Commission) 

The following  Communication presents  an approach and measures to stimulate the 
development  of the Information  Society in Europe. 

It is composed of two documents: 

The first  document describes the ways in which the Community can make the most 
efficient  use of its resources to stimulate the deployment of Information  Society 
applications 

The second document is a proposal  for a decision of the European  Parliament and the 
Council concerning a series of guidelines for  trans-European  telecommunications 
networks in accordance  with Title XII of the Treaty. 

These two documents are complementary.  Whereas the first  document presents  a 
methodology for  applications,  the second presents an instrument for  implementing that 
methodology,  using the framework of the trans-European telecommunications networks. 

4  CL 

P A R TI 

COMMUNICATION FRQM THE.  Ç,QMMI$gIQN 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE  OF THE REGIONS 

on a 

Methodology  for 
the implementation  of information  society 
applications 

A  METHODOLOGY  FOR THE IMPLEMENTATION  OF 

INFORMATION  SOCIETY  APPLICATIONS1 

ft. 

The joint  Council  of  Industry  and  Telecommunication  Ministers  of  28  September  1994 
called  upon  the  Commission  to  submit  a document  setting  out  its  proposed  methodology 
for  coordinating  action  to  develop  new  services and  new  applications,  in  particular  in  the 
context  of the RTD framework  programme and the trans-European  networks  programme. 
This document  is submitted  in response to that  request. 

The  following  methodological  framework  aims  to  optimise  the  use  of  Community 
instruments  and  financial  resources.  This  general  objective  will  be  met  by  raising 
awareness  of  potential  private  and  public  partnerships,  improving  the  access  to 
possible support  and  ensuring  synergy  between  all  existing  Community  instruments 
and financial  resources. 

Overview 

The  convergence  of  the  information  and  telecommunication  technologies  and  the  related 
industries  as well  as the evolving  regulatory  environment  which  is leading  to  liberalisation 
of  the  telecommunication  sector  are  creating  opportunities  for  the  emergence  of  new 
networks,  applications  and  services  using  information  as  a  resource. 
In  particular,  the 
rapid  liberalisation  of  local  infrastructures  will  encourage  the  take-off  of  experimental 
projects.  Market  mechanisms have been  recognised  as the driving forces  for  the advent  of 
this  information  era.  Indeed,  it  is primarily  up  to  the  private  sector  to  take  the  necessary 
initiatives  for  the  development  of  information  and  communication  infrastructures,  in 
particular in the area of financing. 

The  European  Council  nevertheless  considered  that  the  Community  and  the  Member 
States,  besides  their  responsibilities  in the  field  of  competition  and  in  the  implementation 
of  a  new  regulatory  framework,  have  an  important  role  to  play  in  supporting  this 
development  by  giving  a  strong  political  impetus  and  stimulating  if  necessary  the 
implementation  of application  projects. 

In most  areas,  the  commercial  viability  of the  new  services  and  applications  is  sufficiently 
attractive  to  render  public action  unnecessary or  to  restrict  it  to  a  minimum  to  cover,  for 
example,  part  of  the  risks  involved  in  the  development  of  new  technologies.  In  certain 
application  fields  where,  despite  evident  socio-economic  benefits,  the  prospects  for 
commercial  viability are judged  by private investors  to be uncertain  or  long term,  catalytic 
actions can be envisaged  under  the  umbrella  of public  authorities,  in  particular  in areas of 

1 

In  this  Communication,  the  term  "application"  refers  to all  aspects of a  particular  use of  information 
and  communication  technologies. It docs not refer  to information  content. 

collective  interest.  Lack  of  immediate  commercial  viability  for  certain  applications  is also 
partly  due  to  the  innovative  character  of  the  applications,  requiring  rapid  integration  of 
new technologies and organisational  adaptation. 

The  Community,  in  conformity  with  the  principle  of  subsidiarity,  can  play  a 
catalytic role by helping generate the critical  mass that will attract  private investors, 
thus allowing markets to take off more rapidly. 

Delays in investing  in information  infrastructures  will have negative  impacts  on the  socio 
economic  development  of  the  Community,  growth  and  employment  The  creation  of  a 
wide  range  of  business  opportunities  in  new  growth  areas  (e.g.  multimedia)  of  the 
economy  depends  on  the  availability  of  new  integrated  information  and  communications 
systems. 

The  services  and  applications  carried  by these  systems  in  all  sectors  of  the  economy  are 
likely to  give rise to  and  support  new economic  and  social  activities.  These  new  activities 
will  boost  job  creation,  in  particular  in  SMEs.  They  will  also  contribute  to  improving 
social and regional  cohesion. 

THE  ROLE OF THE  UNION 

The Union  can  help  stimulate  the  launch  of  project  initiatives  and,  in  certain  cases, 
financial 
can  support  the 
contribution. 

implementation  of  these  projects  by  making  a 

1.  The Stimulation  of Project  Initiatives 

In  conjunction  with  Member  State  actions,  the  Union  can  help  stimulate  the  launch  of 
project  initiatives involving the development  or  supply of Information  Society  applications 
and services 

To  advise  the  Commission  in  these  activities,  two  new  advisory  structures  have  been 
created,  the  Information  Society  Forum,  which  brings  together  all  the  actors  concerned, 
and  the  High  Level  Social  Experts  Groups  whose  members  will  examine  the  social  and 
societal  aspects.  In addition, a specialised  Task  Force within the Commission  has been  set 
up to examine ways in which to develop  European  educational  multimedia  software. 

These  stimulation  activities  will  aim  to  satisfy  the  needs  of  actors  from  different  sectors 
who  may  have  an  interest  in  supplying  or  using  services  and  applications.  These  actors, 
both  suppliers  and  users,  include  industry,  network  operators,  service  providers,  content 

industries,  financial  institutions,  SMEs,  national  administrations,  regional  and  city 
authorities. Particular attention will be paid to the needs of all citizens. 

In this context the Union  can fulfill  three main roles: 

•  An Information  and awareness role, notably: 

- in maintaining an updated inventory of projects that are planned  or underway 
at national, European  and international  level (this task is one of the  11 projects 
identified  by the G7), and ensuring they are carried  out; 

- on existing technologies, and the ways to access them, in particular the 
technologies developed  in the framework  of the RTD programmes managed at 
Union level; 

- on the regulatory environment  and its evolution. 

•  A Role of Brokerage: 

- in bringing together actors from  different  sectors who may have a common 
interest  in certain initiatives; 

- in encouraging, by means of such action, the formation  of partnerships, in 
particular between private and  public actors. 

A Role of guidance towards the sources of financial  support: 

- when interested  partners are in the process of organising themselves for the 
realisation of a project,  orient them towards the appropriate Commission  services 
which manage Community  support  instruments,  so that the partners can evaluate 
the  nature and the potential  of support  available within the Union. 

The  Information  Society  Project  Office  (ISPO)  was  created  by  the  Commission  in 
December  1994 to provide a one-stop-shop  interface  to access such activities. 

2.  Community  financial  support for the realisation  of projects 

The Community  has at  its disposal  a certain  number  of financial  intervention  instruments, 
which may be used, in addition to private or public resources,  to create the critical  mass of 
investment  necessary for the launch of a project. 

These instruments, which must be used  each according its own rules, are: 

• 

the trans-European  networks support  mechanism 

• 

• 

• 

• 

the  framework  RTD programme 

the Structural Funds, and the Cohesion Fund. 

the European Investment Bank and the European Investment Fund. 

the programmes dedicated  to education and training 

Annex  1 describes these instruments in detail. 

In the  case where the  commercial  characteristics  of a project  are  sufficiently  attractive  to 
directly trigger a private initiative, Community intervention  will not be necessary. 

Some  projects, whilst  having  clear socio-economic  benefits,  may  not  be  immediately 
commercially  viable. This  is often  the case for  projects  of collective  interest.  In such 
instances, the Community  has the scone to use the combination  of these  instruments 
in a coordinated  way, taking  advantage  of their complementarity  and  ensuring  their 
synergy. 

In  order  to  respect  both  the  competition  rules  which  apply  to  the  telecommunications 
sector  which  is  being  progressively  liberalised,  and  the  specific  needs  of  each  of  the 
projects  for which Community  support  is justified,  a number of principles  will have to be 
applied in the management  of any financial  support given to a project: 

a) The choice of the project  should  be made following  a demand-driven  approach,  and 
use  public  calls  for  proposals  procedures,  in  order  to  give  equal  chances  to  all  the 
potential  proposers.  The  amount  of  support  requested  will  be  a  criteria  for  project 
selection, taking into account  the need to respect the Community's competition rules. 

b)  Each  instrument  shall  be  used  in  accordance  with  its  own  rules:  and  specificities 
this means that the type of support  requirements of a project will  be analysed  in order 
to  apply  the  Community  instruments  which  best  satisfy  these  different  needs.  For 
instance,  RTD  support  will  address  the  need  for  supporting  the  eventual  research-
development  and  demonstration  phase  of  a  project,  Structural  Funds  for  the  deployment 
of  the  projects  in  certain  regions,  trans-European  networks  resources  for  feasibility 
studies, interest  rebates, loan guarantees, etc. 

c)  A  problem  to  be  solved  is  the  coordination  over  time  of  the  availability  of  the 
different  financial  supports.  To  solve  it  in the  case  where  access  to  several  instruments 
is governed  by a call for  proposals (as for  RTD programmes and trans-European  networks 
projects),  a coordination  in the time of the calls can be managed. 

The  Commission  will  have to  set  up  and  operate  a  coordination  framework  to  manage 
these  aspects.  The  management  framework  of  the  Decision  on  trans-European 
telecommunications  networks  guidelines,  the  proposal  of  which  is  introduced  in  the 
second  document  of 
this  Communication,  can  be  one  of  these  coordination 
frameworks2. 

3. 

Concluding  remarks 

There will be cases where it will not be possible to  support  an initiative, either because  of 
lack  of funds  or because  it  lies outside the  scope  or the  rules of the  available  instruments 
Within a year the Commission  will present  to the European  Parliament  and  to the Council 
a  report  covering  the  progress  of  the  initial  actions,  their  impacts,  and  identifying 
difficulties  encountered,  including the case where support  could  not be given. 

Groups  of  Commissioners  have  been  established  to  deal  respectively  vviih  information  society  and 
audiovisual, trans-European  networks, and  cohesion. 

ANNEX 1 

THE COMMUNITY  FINANCIAL  INSTRUMENTS 

a) 

The trans-European  networks support  mechanism  (Title XII) 

This  instrument  is intended  to  support  the  development  of  transport,  energy  and 
telecommunications  networks  provided  for  in  Title  XII,  Article  129c,  of  the  EC 
Treaty.  For the trans-European  telecommunications  networks the Commission has 
earmarked  an  indicative  amount  of ECU  450  million  for  the  period  1995-99, just 
under ECU  300 million of which  is to  support  projects  of common  interest  set  out 
in the guidelines  adopted  by the Council.  This support  will be granted  to  projects 
the potential  economic benefit  of which  is established  but  the financial  profitability 
of  which  is  uncertain  or  inadequate. 
It  may  take  the  form  of joint  financing  of 
feasibility  studies, including preparatory  studies, and  other  technical  measures,  and 
interest-rate subsidies and contributions to loan guarantee premiums. 

A proposal  for  a  Regulation  laying  down  the  conditions  for  granting  Community 
is  being 
support  for  trans-European  network  projects  of  common 
negotiated  at  the  Council  and  the  European  Parliament.  The  Council  adopted  a 
common  position  on 31  March  1995. This Regulation  also  authorizes the granting 
of direct  subsidies in duly substantiated  exceptional  cases. 

interest 

b) 

The fourth  RTD framework  programme 

The  Community's  total  contribution  to  the  fourth  framework  programme  at 
present  stands  at  ECU  13  161 million  for 
the  period  1994-98,  of  which 
ECU 3 620 million  for  information  and  communication  technologies,  under  the 
following  three  headings:  telematics  applications  (TELEMATICS  applications 
programme:  ECU 902 million),  advanced  communications  technologies  (ACTS 
programme:  ECU 674 million) 
(ESPRIT 
programme:  ECU 2 044 million).  RTD  projects  in  these  three  areas  will  help  to 
establish  the  Information  Society  as  a  result  of  their  development  and  especially 
their demonstration  activities: 

technologies 

information 

and 

collective  interest  applications  under  the  TELEMATICS  applications 
programme  most  of  the  funds  of  which  are  earmarked  for  demonstration 
projects; 

chiefly  basic technology  under the ACTS  programme; 

basic  technologies,  applications  and  industrial  best  practice  under  the 
ESPRIT  programme. 

To  this  should  be  added  the  horizontal  activities  in  the  area  of  dissemination  and 
exploitation  of research. 

c) 

The Structural  Funds 

items,  under 

The  Structural  Funds3  represent  a  considerable  financing  potential,4  but  they  do 
not  contain  any  specific 
telecommunications 
programmes, to support the development  of the Information  Society.  They are an 
instrument  of  economic  and  social  cohesion  policy,  an  expression  of 
intra-Community  solidarity,  in  particular  between  regions. 
In  this  connection, 
Community  assistance  to  the  Objective  1 regions  (those  lagging  behind  in  their 
development) for which 70% of the aid is earmarked  (some ECU 96 billion) comes 
from  three sources: 

the  heading  of 

the  Community  Support  Frameworks  (CSFs)  drawn  up  by  the  Member 
States.  On the basis of the CSFs  already  approved,  the amount  devoted  to 
telecommunications  investments  is  estimated  at  about  ECU  1.4 billion,  or 
1.3% of the Community aid.  For most of the Member  States with access to 
the resources  of the  Structural  Funds, the telecommunications  sector  is not 
a priority in the allocation  of Community aid; 

the Community  initiatives,  subdivided  into  seven  topics,5 receive  9%  of the 
amounts  allocated  to  the  structural  policies,  i.e.  ECU  13.45 billion.  This 
includes  a reserve  of  ECU  1.6 billion  for  one  or  more  initiatives  still  to  be 
defined. 
It  can  be  considered  that  two  of  the  seven  topics  have  a  more 
obvious  potential  link  with  the  development  of  the  Information  Society  in 
the  regions, 
internal  and  external  trans-frontier  cooperation,  with  the 
INTERREG  II  initiative,  with  a  budget  of  ECU 2.9 billion,  and  industrial 
change, with the  SME initiatives aimed  at improving  the competitiveness  of 
SMEs,  with  a budget  of  ECU  1  billion,  and  ADAPT,  aimed  at  facilitating 
the  adaptation  of  workers  to 
industrial  change,  with  a  budget  of 
ECU  1.4  billion; 

The  Community's  Structural  Funds arc as  follows:  the  ERDF  (European  Regional  Development 
in  development  between  the  various 
Fund)  the  aim  of  which  is  to  reduce  the  differences 
Community  regions; 
the  ESF  (European  Social  Fund)  which  is  responsible  for  improving 
employment  possibilities  within  the  Community;  the  EAGGF  (European  Agricultural  Guidance 
and  Guarantee  Fund)  which  contributes  towards  the  national  agricultural  aid  schemes  and  the 
development  and  diversification  of  rural  areas  in  the  Community;  and  the  F1FG  (Financial 
Instrument  for  Fisheries Guidance) which  supports the restructuring  of the fisheries sector. 

ECU  141 billion  for  the period  1994-99. i.e. one-third  of the total  Community  budget. 

Internal  and  external  trans-frontier  cooperation,  rural  development,  the  most  remote  regions, 
employment  and  development  of  human  resources,  industrial  change,  urban  policies,  and 
initiatives  for areas dependent  on  fishing. 

under  Article  10  of  the  ERDF  Regulation  (regional  development  in  the 
Community),  the  Commission  has  a  financial  mechanism  limited  to  1% of 
the ERDF's annual  allocation  to contribute to innovative  actions in regional 
development  through  pilot  schemes  which  encourage  the  pooling  of 
experience  and 
the  development  of  cooperation  between  different 
Community  regions,  and innovative measures.  These  pilot  schemes  should 
have  an  innovative  character,  a  European  networking  dimension  and  a 
strong potential for demonstration  effects  in other regions. 

To  ensure  consistency  for  the  possible  information  society  measures,  the 
Commission is preparing a framework  for  such support under Article 10. 

test  new  hypotheses  concerning 

Pursuant  to  Article  6  of  the  European  Social  Fund  Regulation  (technical 
assistance,  pilot  and  demonstration  projects),  innovative  projects  designed 
the  content,  methodology  and 
to 
organization  of vocational  training and the development  of employment  and 
studies  and  pilot  projects  may be  funded.  Applications  concerning  training 
and the development  of employment  could be funded  under this article. 

d) 

The Cohesion  Fund 

Four  Member  States,  in addition  to  the  Structural  Funds,  benefit  from  a  cohesion 
financial  instrument  intended  to  speed  up their  convergence.  The areas  concerned 
are transport  and  the  environment.  It  is not  excluded  that  the  actions  co-financed 
could  contain an element  of telematics applications. 

e) 

The European  Investment  Bank 

for  15%  of 

The  EIB  actively  contributes  to  the  financing  of  telecommunications  networks, 
financed 
which  account 
telecommunications  projects  to  the  tune  of  approximately  ECU 2.1 billion.  The 
temporary  Edinburgh  mechanism  was  set  up  in  1992 to  speed  up  the  financing  of 
trans-European  networks.  As  of  today,  it  has  been  fully  utilised  of  which  641 
MECUS on telecommunications  projects. 

loan  portfolio. 

In  1994 

its 

it 

The  EIB  loans  finance  projects  which  contribute  to  the  Community  objectives  of 
strengthening  the  internal  market  and  economic  and  social  cohesion.  These 
projects  must be financially  viable.  The ceiling is 50% of the total  investment  cost. 

f) 

The European  Investment  Fund 

The  EIF  supports  large  infrastructure  projects  by  granting  guarantees  not 
exceeding  50% of the  amount  of the  loan.  EIF  assistance  is coordinated  with  the 
other forms  of Community assistance, in particular  EIB loans. 

g) 

The SOCRATES and LEONARDO programmes 

The overall aim of the SOCRATES programme (850 MEcu from  1995 to  1999) is 
to help improve the quality and relevance of education  for children, young people 
and  adults,  to  increase  access  to  the  range  of  learning  opportunities  available 
across the Community, and to give more young people the chance to gain personal 
experience of other European countries as their prepare for their future career. 

The  LEONARDO  DA  VINCI  programme  (714  MEcu  from  1995  to  1999)  will 
support  and  complement  actions  in the Member  states  to  improve  the  quality  of 
training policy and practice and its capacity to find new ways of learning. 

The  promotion  of  open  and  distance  learning  actions  is  a  common  objective  to 
these programmes. 

1o 

PART II 

Proposal for a 

EUROPEAN PARLIAMENT and COUNCIL  DECISION 

on a series of guidelines  for 

trans-European  telecommunications  networks 

1. Introduction  : The Infrastructure  for the Information  Society 

CONTENTS 

m 

a) 

b) 

c) 

The trends 

Advanced  communications 

The role of the Union 

2.  The Basis for Action 

3.  The  Objectives 

4.  The Priorities 

5.  The Broad  Lines of Measures 

6.  Projects of Common  Interest 

a) 

b) 

c) 

Domains 

Procedure for  Identification 

Follow-up of the Procedure 

7.  Conclusions 

PROPOSAL FOR A EUROPEAN  PARLIAMENT AND COUNCIL  DECISION  ON 
A SERIES OF GUIDELINES  FOR  TRANS-EUROPEAN 
TELECOMMUNICATIONS  NETWORKS 

Annex  1 : Domains for Projects of Common  Interest 

Annex  2 : Identification  criteria 

ne 

1. 

Introduction  :  The Infrastructure  for the Information  Society 

To...  stimulate  the  creation  of  new  markets,  the  Commission  proposes  to  identify 
strategic  trans-European projects....  The strategic projects  would  be carried  out  at 
each  of  three  interdependent  "levels"  that  make  up  the 
telecommunications 
networks: the carrier networks for  transmission of information, generic services and 
telematics  applications. 

With  regard  to  the  networks  which  serve  to  carry  the  information  (voice,  data, 
images) the objective would be to consolidate the integrated services digital network 
and  to install  the high speed communications  network using advanced  transmission 
and  switching  techniques  (asynchronous  transfer  mode:  ATM),  which  will  help 
digitized multi-media services to make a breakthrough. 

a) 

The Trends 

White  Paper  -  "Growth,  Competitiveness, 
Employment:  The  Challenges  and  Ways 
Forward  into the 21st Century" 

Trans-European  Telecommunications  Networks  should  follow  an  overall 
evolution  scenario  whereby  Europe  will  advance  from  its  present  situation  to 
the deployment  of an advanced  communications by the year 2010-2020. 

This  evolution  will  be  triggered  by  users  demand.  In  order  to  satisfy 
increasingly  sophisticated  needs,  they  will  require  advanced  services  and 
applications which  can be offered  only on highly advanced  networks. 

Two main trends, commercial  and technological,  which  will form  the European 
communications  environment  over  the  planning  period,  can  already  be 
discerned. 

These  two  trends,  under  favourable  conditions,  will  give  rise  to  new  growth 
areas  of  activity  which  will  be  supported  by  advanced  communication 
infrastructure  and  services.  As  these  activities  expand,  and  foster  new  and 
diverse  market  opportunities,  new  jobs  will  be  created  in  a  wide  range  of 
sectors. 

The  commercial  trend  will  be  towards  an  ever  closer  integration  and 
consolidation  of  European  network  operations,  driven  by  the  increasing 
internationalization  of  European  commercial  and  indeed  social  life  inspired  by 
the  Single  Market.  This  will  be  marked  by  increased  co-operation  of 
telecommunications  operators  in joint  business  operations  combined  possibly 
with financial  partnerships or take-overs between  operators. 

Ai 

At  the  same  time  liberalisation  will  open  the  way  for  alternative  network 
and service provision  further  increasing the need for  attention  of interworking 
and  transparency  of  service  provision.  The  public  network  operators  will  be 
placed  under  further  pressure  by  new  foreign  competitors  who  will  come  into 
the market riding on innovative technologies such as digital mobile and  satellite 
communications,  and interactive television. 

The  main  technological  trend  will  be  for  the  integration  into  the  initial 
simple  broadband  network 
intelligence  and 
mobility.  Additionally,  new  applications  will  develop, taking  advantage  of the 
increased  transport  capacity  and  flexibility  of  the  network  (e.g.  video-on-
demand, tele-presence). 

increasing  features  of 

b) 

Advanced  Communications 

The  commercial  and  technology  trends  point  to  the  integration  of  all  kinds  of 
communications  means, offering  a variety  of telecommunication  services,  from 
narrowband  to  broadband,  the  ultimate  goal  being  Integrated  Broadband 
Communications  (ÏBC), which include three key  features: 

"Integrated" points to  "integrity"  of the whole  network,  and  therefore 
to  the  proper  interworking  of  all  its  essential  constituent  parts, 
including  the  existing  and  emerging  ones:  voice  telephony;  Integrated 
Service  Digital  Networks  (ISDN),  broadband,  satellite  and  mobile.  It 
the  integration  of  services  (at  the  user  and  the 
also  signifies 
appropriate  network levels). 

"Broadband"  designates  the  total  mix  of  services  to  be  considered, 
starting  from  ISDN,  up  to  what  will  be  required  by  a  realistic 
introduction  of video (interactive and distributive) services. 

includes 

switching, 
the 
"Communication" 
transmission,  and  Customer  Premises  Network  functions,  but  also 
advanced  features  to  make service  provision  user-friendly,  performing 
and economically  sound. 

"conventional" 

These networks will: 

o 

o 

o 

o 

Provide  a  seamless  access  to  information,  including  in  rural  and 
peripheral  areas. 

Provide  high  bandwidth,  multi-party, 

interactive 

services  on 

acceptable economic terms. 

Cover progressively the whole territory  of the Community. 

Allow for the extension  to other  networks. 

o 

Provide  easy  and  efficient  access  to  information  and  transfer  of 
information  among citizens. 

implementation  of  these  networks  can  be  schematised 

The 
overlapping phases: 

into 

four 

1990-2000: Implementation  and increasing use of EURO-ISDN. 

1995-2010: Implementation of Integrated  Broadband  Communication,  with the 
completion  of  customer  access,  initially  for  business  customers.  Offer  of  a 
number of advanced  services, in particular multimedia services. 

2000-2010:  Integration  of  intelligence  and  mobility  in  the  networks,  allowing 
full  "follow  me"mobility throughout  these networks. 

2005-2020:  Implementation  of  the  "photonic  network",  where  all  network 
functions  are  realised  through  optic  devices,  allowing 
the  offer  of  very 
broadband  switched  services to 50% of the customers. 

c) 

The Role of the Union 

The  importance  of  the  role  of  trans-European  telecommunications  networks 
within  the  Union  has  been  recognized  within  Title  XII  of  the  Maastricht 
Treaty,  Articles  129b  and  129c.  These  Articles  of  the  Treaty  provide  an 
instrument  for  supporting,  in combination  with  other  Community  instruments, 
the 
implementation  of  the  networks,  services  and  applications  of  the 
information  society.  The  following  points  introduce  a  Proposal  for  an 
European  Parliament  and  Council  Decision  on  a  series  of guidelines  for  trans-
European  Telecommunications Networks. 

2.  The Basis for Action 

Article  129b stipulates: 

1. ...the  Community shall contribute  to the establishment  and development  of  trans-
European  networks in the areas of ...telecommunications...  infrastructures. 

2.  Within the framework  of a system of open and competitive  markets, action  by the 
Community  shall  aim  at  promoting  the  interconnection  and  interoperability  of 
national  networks  as  well  as  access  to  such  networks.  It  shall  take  account  in 
particular  of  the  need  to  link  island, landlocked  and  peripheral  regions  with  the 
central regions of the Community. 

-is 

Article  129c indicates: 

I.  In order to achieve  the objectives referred to in Article  J29b, the Community: 

shall  establish  a  series  of  guidelines  covering  the  objectives,  priorities  and 
broad lines of measures envisaged in the sphere  of  trans-European networks; 
these guidelines  shall identify projects  of common interest. 

The  following  sections  propose  a  series  of  guidelines  as defined  in  Article  129c  for 
the trans-European  Telecommunications Networks. 

3.  The Overall  Objectives 

The  White  Paper  has  linked  the  creation  of  trans-European  telecommunication 
It  paves  the 
networks  to  the  goals  of  Growth,  Competitiveness  and  Employment. 
way  to  the information  society  by  providing  target  areas  for  strategic  projects  up  to 
the  year  2000  in  the  field  of  interconnected  advanced  communication  networks, 
generic services and telematic applications. 

The  Bangemann  Report  prepared  by  a  high  level  group  of  industrialists  has  also 
emphasised  the  need  to  accelerate  the  creation  of  the  building  blocks  of  the 
information  society.  Particular  attention  is given  to  "blazing  the trail" by  supporting 
the  launch  of  targeted  applications  in  10  areas  which  directly  respond  to  essential 
economic and  social needs1. 

The  necessary  actions  to  develop  trans-European  telecommunication  networks  will 
be  based  on  the  promotion  of  access,  interconnection  and  interoperability  with  a 
view  to  satisfying  the  diversity  of  users'  needs.  These  actions  shall  contribute  to 
achieving the following  overall  objectives: 

facilitating  the evolution  towards the information  society  by promoting the 
increased  use  of  and  improved  access  to 
advanced  technologies,  notably 
through  adapted  education  and  training  facilities,  to  encourage  new  working 
arrangements  (e.g.  telework)  and  develop  new  information  applications  and 
services,  particularly 
in  areas  of  collective  interest  such  as  healthcare, 
education  and  training,  and  cultural  activities  which  contribute  to  improving 
the quality of life and the environment, 

improving  the  competitiveness  of  European  industry  and  strengthening 
the  internal  market  by  encouraging  the  development  of 
pan-European 
networks,  applications  and  generic  services  which  will  support  the  growth  of 
trans-European  electronic  commerce  and  new  commercial  applications,  and 

"Europe and  the global  information  society  - Recommendations  to the European  Council" 26.05.1994 

ne 

enable citizens of the Union to  access and transfer  information  freely  within an 
area without  internal  frontiers, 

reinforcing  economic  and  social  cohesion  by  reducing  disparities  between 
the  regions  concerning  both 
the  general  availability  of  and  access  to 
telecommunications infrastructure,services,  and  applications 

accelerating 
the  development  of  new  growth  area  activities  (e.g. 
multimedia  and  electronic  information  services)  leading  to  job  creation, 
by  creating  a  favourable  environment  to  obtain  critical  mass  of  demand  and 
investment. 

An appropriate  on-going  monitoring  mechanism  will be set  up to  assess how  effectively 
all  the  trans-European  telecommunication  network  projects  are  responding  to  these 
objectives.  Such  a  mechanism  will  track  progress  towards  the  achievement  of  TENs  as 
well  as  provide  social  and  economic  evaluation  of  projects  on  the  basis  of  indicators 
related to the specific character of the projects and their  objectives 

Regular  reports will  be  submitted  to  the  European  Council,  the  European  Parliament,  the 
Council  of  Ministers,  the  Economic  and  Social  Committee,  and  the  Committee  of  the 
Regions. 

4.  The  Priorities 

Within these objectives,  the Commission  proposes  priorities  for  Community  action in 
trans-European 
the 
relation 
telecommunications  networks. 

layers  which 

the  model 

three 

form 

for 

to 

applications,  which  provide  logical  access  to 
Applications may require to be interoperable between themselves ; 

information  by  its  user. 

generic  services,  which,  through  support  for  their  common  requirements, 
complement  the specific  applications whilst aiding their interoperability ; 

basic networks,  which provide physical  access, transport,  and  connectivity. 

The  Community  must  make  optimal  use  of  its  limited  financial  resources  .  In  this 
context,  priorities have to be carefully  defined.  User driven applications  are the most 
important  because they underpin  the deployment  of the information  society. They will 
create the demand  for  new  investments  in advanced  telecommunications  services and 
networks. However,  whilst,  some applications  can  already  be  supplied  using  existing 
infrastructures  their  overall  development  is  limited  by  uncertainty  in  the  market  and 
by the hesitancy of users to adapt  to new services. 

stimulating  the  development  of 
The  priority  has  therefore  to  be  put  on 
applications  which  will  allow  every  kind  of  user  to  access  the  information  it  needs, 
in the  framework  of  the  objectives  aimed  at  by  Community  action.  The  priorities  to 

be  assigned  to  generic  services  will  derive  from  their  support  to  allowing  the 
availability of these applications, as well as from their role of service whiqh has to be 
directly  accessible  to  users.  For  basic  networks,  the  priorities  will  resujlt  from  the 
necessity  for  them to  assure a cheap and efficient  transport  of information,  to  allow 
the  rapid  introduction  of  new  applications  and generic  services  and to  offer  rapidly 
the newest  and most appropriate transport technologies.  Particular attention must be 
paid to the needs of the SMEs. 

Applications 

The following priorities relate to applications : 

the  creation  of  applications  that  stimulate  and  support  thetransition 
towards  the  knowledge  based  information  society,  particularly  those 
applications  which  respond  to  needs  of  collective  interest  and help to 
change the general  culture of all citizens by introducing familiarity with 
the environment and tools of the information society, 
the development  of applications that contribute  to  social  and economic 
cohesion,  both  by improving  information  access  throughout  the  Union 
and by exploiting the potential afforded  by the diversity of the European 
cultures, 
the  development  of  accessible  and  interoperable  applications  that 
strengthen  the  competitivity  of  European  companies  as  well  as  the 
internal  market,  and  in  particular  those  applications  that  will  provide 
SMEs  with  the  tools  that  they  require  in  order  to  gain  and  maintain 
competitiveness. 

Generic Services 

The following priorities relate to generic services : 

the  establishment,  within  an  evolving  context  of  universal  service2,  of 
interconnected  and  interoperable  trans-European  generic  services,  as 
well as the definition of common standards 
the world-wide interoperability of trans-European generic services. 

Basic Networks 

The following priorities relate to digital basic networks : 

the  promotion  of  the  existing  Euro-ISDN  network  as  an  immediately 
available digital platform for the support of new applications, 

The principle of Universal Service is an essenlial clcmenl of ihc rcgulalory framework  pul forward  in 
the  Green  Paper  on  the  liberalisalion  of  lelecommunicalions  infrastructure  and  cable  television 
networks. See COM(95  158  final 

4* 

the  rapid  development  of  efficient  and  cost  effective  broadband 
networks  in  Europe  having  the  network  federating  characteristics  of 
Integrated Broadband  Communications, 
trans-European 
the 
telecommunications  networks to world-wide networks and the adoption 
of appropriate standards. 

interconnection 

interoperability 

and 

of 

5.  The Broad Lines of Measures 

In order to reach these objectives, there is a need for action by the Community.  Many 
measures  are  already  being  taken  within  other  frameworks  such  as  the 
fourth 
Framework RTD Programme, the regulatory field, etc... 

In  addition,  direct  action  is  needed  to  stimulate  the  development  of  the  trans-
European  networks.  These  actions, which  must  build  on  the  existence  of  expressed 
or  potentiel  needs,  should  aim  on  the  one  hand  at  favour  the  concrete  expression  of 
the needs,  on  the  other  hand  to  encourage  and  support  the initiatives to  be taken  by 
the  providers  to  offer  the  services  and  applications  responding  to  these  needs.  The 
first  document  presented  in  this  Communication  spells  out  the  methods  of  action 
which should be used. 

These methods can be summarised  as follows: 

identification  of projects  of common  interest. 

action to  increase public awareness of the existence of,  and benefits  offered  by, 
new means of communication, 

support  for  the  confirmation  of  the  feasibility,  and  for  the  deployment  of 
applications,  in  particular  those  of  collective 
interest,  through  the  means 
provided  for  in the Treaties,  and  through  the development  of new  partnerships 
between  public and  private interests, 

action  to  stimulate  the  provision  and  use  of  telematic  services  for  SMEs  and 
professionals,  a  measure  which  should  act  as  a  main  engine  for  growth  and 
employment  in Europe, 

action  which  encourages  the  rapid  development  of  trans-European  broad-band 
networks, 

Whenever  appropriate,  co-operation  with  third  countries  will  be  facilitated  with 
respect  to  the  implementation  of  measures  under  the  present  guidelines,  in 
particular  when  these  are  deemed  to  be  of  mutual  interest  and  to  ensure  the 
interconnection  of  basic  networks  and  the  interoperability  of  the  services  that  are 
supported  by these networks. 

6.  Projects of Common  Interest 

a)  Domains  of Projects of Common Interest 

A<% 

The  development  of  trans-European  telecommunications  networks  will  be 
assured  through  the  implementation  of Projects  of  Common  Interest.  Taking 
into  consideration  the  specific  characters  of  the  sector,  it  appears  that  it  is 
not  possible  to  define  a  priori  specific  Projects  of  Common  Interest  like 
for  instance  in  the  transport  sector.  The  telecommunications  sector  is 
effectively  characterised  by  a  very  fast  technological  change  and  is  being 
progressively  liberalised:  the  combination  of  these  two  factors  leads  to  the 
conclusion that the initiatives for  Projects: 

have  to  come  from  the  private  sector  (or  from  a  partnership  between 
public  and  private  sector  in  the  case  the  services  to  be  promoted  are 
used  by  a  public  authority  for  the  execution  of  its  public  service 
mission), 

must  answer expressed  user needs. 

Specific  Projects  of  Common  Interest  can  therefore  only  be  identified 
through  a  demand  driven  approach,  using  a  procedure  of  Call  for 
Proposals  in  chosen  domains  to  collect  the  initiatives  which  should  stem 
from  recognised  users  needs.  The  broad  domains  in  which  proposals  for 
specific  projects  may be requested  are those  which  appear  to  be main building 
blocks of the information  society: 

in  the  field  of  applications,  the  applications  of  collective  interest 
identified  in the Bangemann's report  are of particular  importance3, 

in  the field of generic  services,  the  services  which  support  the  offer  of 
most of the applications have to be strongly  encouraged, 

the 

field  of  basic  networks,  projects 

improving  network 
in 
interconnection,  promoting 
the 
development  of  applications  and  services,  and  the  deployment  of 
introduction  of  broadband 
advanced  network 
communication,  should  be supported  where appropriate. 

infrastructures 

features, 

required 

like 

the 

the 

for 

The  list  of  domains for  Projects  of Common  Interest  covering  the three  parts 
of  the  trans-European  telecommunications  networks  is  presented  in  Annex  1 
to  the  draft  Proposal  which  follows  this  Communication.  Annex  1  includes 

3  Where appropriate,  projects  will  be closely  coordinated  with  content  related  inialives  (INFO2000)  in 

specific  applications  domains  to achieve possible synergy  effects 

also  a number  of horizontal  support  and  coordination  actions,  with  a view  to 
strengthening  the  interconnection  and  interoperability  of  networks  and 
services. 

b) 

The procedure for  Identification  of the Specific Projects of Common Interest 

A  Work  programme  will  be  set  up  and  updated  as  necessary  by  the 
Commission,  in  consultation  with  the  sector  actors,  to  individualize,  in  the 
broad  domains  choosen,  more  specific  areas  in  which  proposals  will  be 
requested.  A  Call  for  Proposals  will  then  be  established  and  launched  in  the 
areas retained  in the Work programme. 

The  identification  of  Projects  of  Common  Interest  among  the  proposals 
received  will then take  place on the basis of their compliance to the  objectives 
and  priorities  adopted,  as  well  as  to  criteria  regarding  their  financial 
soundness.  At the end  of the process,  a list  of  Projects  of  Common  Interest 
will be available 

this  procedure  of  identification  of  Projects,  the 
In  the  management  of 
Commission  will  be  assisted  by  a  Committee  of  representatives  of  the 
Member States. 

c) 

Follow-up of this procedure 

The  implementation  of  this  Decision  allows  to  identify  a  list  of  Projects  of 
Common  Interest. 

Projects,  taken  from  this  list,  which  will  benefit  from  the  Community 
financial  support  under  art.l29C.l,  third  indent,  will  be  selected  in  a 
further  sequence  within  the  framework  of  the  "Regulation  laying  down 
general  principles  for  the  granting  of  Community  financial  aid  in  the 
field of trans-European  networks". 

This form  of Community financial support  will  be mainly  focussed  on the 
applications  domains,  in  particular  on  the  applications  of  collective 
interest. 

The projects  belonging to the basic networks and generic services layers, being 
much  closer  to  commercial  profitability,  should  be  eligible  only  to  limited 
Community  support  under the Regulation  rules. 

Eut the recourse to the other sources^ of Community financing  remains open 
for  all  the  Projects  of  Common  Interest  identified  within  the  financing  rules 
governing  each  instrument.  In  addition,  their  recognition  as  Projects  of 
Common  Interest  gives  them  a  political  visibility,  which  should  facilitate 
obtaining financial  support from other public and private sources. 

. -? n 

7.  CONCLUSIONS 

On the basis of Articles  129b and  129c of the Treaty,  and within the context  of the 
present  Communication  on an overall  framework  and guidelines  for  trans-European 
telecommunications  networks,  the  Commission  hereby  submits  for  adoption  to  the 
European Parliament and the Council the attached proposal for a Decision on a series 
of guidelines for trans-European telecommunications networks. 

These  other  sources  arc:  Fourth  Framework  RDT  programme,  Structural  Funds,  Cohesion  Fund, 
European Investment Bank, European  Investment Fund. These inslrumenls are described in details in 
Annex  1  to the document "Methodology for the implementation of information  society applications". 

z< 

PROPOSAL FOR A  EUROPEAN  PARLIAMENT AND  COUNCIL 

DECISION 

on a Series of Guidelines 

for Trans-European  Telecommunications  Networks. 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN 
UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular  the 
first paragraph  of the Article  129D thereof, 

Having regard to the proposal from  the Commission, 
Having regard  to the opinion of the Economic and  Social  Committee5; 
Having regard  to the opinion  of the Committee of the Regions6; 

Whereas  the  implementation  and  the  development  of  trans-European  telecommunications 
networks  aim  at  ensuring  the  circulation  and  the  exchange  of  information  across  the 
Union;  whereas  this  is  a  pre-condition  to  make  possible  the  establishment  of  the 
"Information  Society", which will result  from  the availability,  for  each  citizen,  company  or 
public  authority  everywhere  in  the  Union,  of  any  kind  and  quantity  of  information  they 
need; 

Whereas,  in  its  White  Paper  on  "Growth,  Competitiveness  and  Employment",  the 
Commission  stressed  the  importance  of  establishing  the  Information  Society,  which,  by 
introducing  new  forms  of  economic,  political  and  social  relations,  will  help  the  Union  to 
face  the  new  challenges  of  the  next  century,  including  the  challenge  of  employment 
creation  ;  whereas  this  has  been  recognised  by  the  Brussel's  European  Council  of 
December  1993; 

Whereas  the  internal  market  establishes  an  area  without  borders,  within  which  the  free 
circulation  of  goods,  persons,  capital  and  services  has  to  be  ensured,  and  where  already 
adopted  Community  measures,  and  other  measures  still  to  be  adopted,  imply  significant 
exchange  of  information  between  individuals,  organisations  and  administrations;  whereas 
efficient  means  of  exchanging  information  are  vital  for  the  improvement  of  industrial 
competitiveness;  whereas  these  exchanges  of  information  can  be  assured  by  trans-
European  telecommunications  networks;  whereas  the  availability  of  trans-European 
networks will strengthen  social  and economic cohesion  at the Union level; 

<?s 

Whereas the  implementation  and the development  of trans European  telecommunications 
networks  should  ensure  that  information  is  freely  exchanged  between  individuals, 
organisations  and  administrations,  while  respecting  the  privacy  rights  of  individuals  and 
intellectual and industrial property rights. 
Whereas,  in June  1994,  in their report  on  "Europe  and  the  global  information  society"7, 
the  members  of  a group  of  prominent  representatives  of  industry  recommended  to  the 
Council  to  implement  trans-European  telecommunications  networks  and  to  secure  their 
interconnectivity  with  the  whole  of  European  networks;  whereas  the  June  1994  Corfu 
European Council gave its general approval to this recommendation; 

Whereas  the  Communication  of  the  Commission  to  the  Council  and  the  European 
Parliament  "Europe's  way  to  the  Information  Society:  an  Action  Plan"8,  follows  these 
recommendations;  whereas  the  conclusions  of  the  Industry-Telecommunications  Council 
meeting  on  September  28th,  1994  on  this  action  plan,  stressed  the  fact  that  the  fast 
development  of  performant 
(networks,  services  and 
applications),  is  essential  for  Europe  on  the  basis  of  a  global,  coherent  and  balanced 
approach; 

infrastructures 

information 

Whereas Article  129c of the Treaty requires that the Community  shall establish a series of 
guidelines  covering  the  objectives,  priorities  and  broad  lines  of  measures  to  be 
implemented  in  the  sphere  of  trans-European  networks;  whereas  these  guidelines  shall 
identify Projects of Common Interest; 

Whereas the  Information  Society  cannot  develop  without  the  availability  of applications, 
and especially applications of collective interest, answering optimally to user needs, taking 
into  account,  where  appropriate,  the  needs  of  the  elderly  and  disabled;  whereas 
applications will thus form an important part of the Projects of Common Interest; 

Whereas Projects  of  Common  Interest  can,  in many cases  already  be  implemented  in the 
present  telecommunications  networks,  in  order  to  offer  trans-European  applications; 
whereas  guidelines  have  to  be  drawn  up,  in order  to  identify  these  Projects  of  Common 
Interest 

Whereas in the selection  and implementation  of such  projects account  should  be taken of 
both  infrastructures  offered  by  telecommunications  organisations  as  well  as  alternative 
infrastructures offered by other providers; 

Whereas the Commission  has transmitted  to the Council  a series of guidelines concerning 
the  development  of  Integrated  Services  Digital  Network  (ISDN)  as  a  trans-European 
Network9; whereas the Council  has reached a common position on this proposal; 

7  Report  prepared  for  the  Council  Meeting  on  June  24-25.  1994.  in  Corfu,  on  "Europe  and  ihc  global 

information  society - Recommendations to the European  Council" 

8  COM(94) 347,  19.07.1994 

9  COM(93) 347,  1.09.1993 

z7 

Whereas  the  present  networks,  which  include  existing  ISDN,  are  evolving  towards 
advanced  networks  offering  a  variable  data  flow  rate  up  to  broadband  capabilities, 
adaptable  to  different  needs,  in  particular  to  the  offer  of  multimedia  services  and 
applications; whereas  the implementation  of Integrated  Broadband  Communication  (IBC) 
Networks  will be the outcome  of this evolution;  whereas  IBC will  constitute  the  optimal 
platform  on which applications of the Information  Society can be built; 
Whereas  the  results  of the  specific  research  and  technological  development  programme10 
in  the  field  of  communication  technologies  (RACE)  have  prepared  the  ground  and  the 
technology base for the introduction  of IBC networks in Europe; 

Whereas  the  results  of  specific  research  and  technological  development  programme  in 
information  technologies  (ESPRIT)  has  prepared  the  ground  and  the  technological  base 
for the introduction  of applications of information  technologies. 

Whereas the results of the specific  research  and technological  development  programmes in 
the field of telematics systems of general  interest  (91-94)11  and Telematics Applications of 
Common  Interest  (94-98)12  prepare  the  ground  for  the  introduction  of  interoperable 
applications of common  interest  across Europe; 

Whereas  effective  coordination  needs  to  be  ensured  between  the  different  Community 
programmes,  and  in  particular  as  appropriate,  with  programs  in  favour  of  SMEs13  and 
with  information  content  oriented  programmes  (such  as INFO 2000, MEDIA 2) and  other 
Information  Society activities. 
Whereas  in  its  Communication14  on  "Preparatory  actions  in  the  field  of  Trans-European 
Networks-Integrated  Broadband  Communications 
the  Commission 
identified  the  need  to  carry  out  preparatory  actions  with  the  sector  actors  to  draw  up 
appropriate  Guidelines;  whereas  the  result  of  these  actions  form  the  basis  for  the 
guidelines related to IBC networks in this Decision; 

(TEN-IBC)", 

Whereas  the  telecommunications  sector  is  being  progressively  liberalised;  whereas  the 
development  of  trans-European  applications,  services  and  networks  relies  mainly  on 
private  initiative;  whereas  these  trans-European  developments  must  respond  to  market 
needs;  whereas,  taking  this  into  account,  the  interested  sector  actors  will  be  requested  to 
propose,  through  appropriate  procedures  giving  them  equal  chances,  specific  Projects  of 
Common  Interest  in choosen domains; whereas these procedures  have to  be defined  and a 

10  Council  Decision 91/352/EEC (OJ.  L  192.  16.7.1991, p. 8) 

11  Council  Decision  91/353/EEC (O.J.  L  192.  16.7.1991. p.  18) 

12  Council  Decision  94/801/EC (O.J.  L334. 22.12.1994.  p.l) 

13  Communication  from  the  Commission  :  "Integrated  programme  in  favour  of  SMEs  and  the  craft 

sector"  COM  94 207 du  3/06/1994 

14  COM(93) 372 of 22.07.1993  (O.J. N° C200. 24.07.1993. p. 22) 

2 S 

list  of  the  choosen  domains  has  to  be  adopted;  whereas  a  Committee  shall  assist  the 
Commission  for the identification  of the specific  Projects  of Common  Interest; 

Whereas  the  Community financial support  to  the  implementation  of  Projects  of  Common 
Interest  identified  within  this  Decision  has  to  be  considered  in  the  framework  of  the 
Regulation  laying  down  general  principles  for  the  granting  of  Community  financial  aid  in 
the  field  of  trans-European  networks;  whereas  following  this  Regulation,  the  concerned 
Member states shall give a certain degree of support to the Projects of Common  Interest; 

Whereas  the  Commission  shall  undertake  actions  to  assure  interoperability  of  the 
networks,  and  to  coordinate  the  activities  of  the  Member  States  aiming  at  the 
implementation  of trans-European  telecommunications  networks; 

Whereas  it  is  important,  for  the  optimum  development  of  the  Information  Society, 
to 
assure  an  efficient  exchange  of  information  between  the  Community  and  the  third 
countries,  in particular  the states  members  of the European  Economic  Area;  whereas  it is 
thus  necessary  to  promote  networks  interconnection  and  interoperability  at  European 
scale; 

Whereas,  however,  activities  undertaken  in  the  context  of these  guidelines  are  subject  to 
the  full  application  of  the  competition  rules  set  out  in  the  Treaty  and  implementing 
legislation 

HAS ADOPTED  THIS  DECISION 

Article I 

This  Decision  establishes  guidelines  covering  objectives,  priorities  and  broad  lines  of 
measures  in  the  field  of  trans-European  telecommunications  networks.  These  guidelines 
set  out  the  domains  for  Projects  of  Common  Interest,  and  a  procedure  for  the 
identification  of specific  Projects  of Common  Interest  in these domains. 

Article 2 

The  Community  will  support  the  interconnection  of  telecommunications  networks,  in 
particular  Integrated  Broadband  Communication  (IBC)  networks,  the  setting-up  and  the 
deployment  of  interoperable  services  and  applications  and  required  infrastructure  as  well 
as the access to them, with the general  objectives  of: 

Facilitating  the  transition  towards  the  information  society,  in  particular  to 
promote the satisfaction  of social needs and to improve the quality of life. 
Improving  competitiveness  of European  industry  and  strengthening  the  internal 
market. 

• 

•  Strengthening the economic and  social  cohesion. 

Accelerating  the  development  of  new  growth  area  activities  leading  to  job 
creation. 

The priorities for the realisation  of the objectives  mentioned  in article 2 will be: 

Article  3 

' 

•  The confirmation  of the feasibility,  followed  by the  deployment  of  applications 
supporting  the  development  of  a  European  Information  Society,  in  particular 
applications of collective interest. 

•  The confirmation  of the feasibility,  followed  by the  deployment  of  applications 
contributing  to  the  economic  and  social  cohesion,  by  improving  access  to 
information  across  the  whole  Union  building  on  the  European  cultural 
diversity. 

•  Actions  aiming  at  the  stimulation  of  interregional  initiatives,  associating  less 
favoured  regions  for  the  launch  of  trans-European  telecom  services  and 
applications. 
The confirmation  of the feasibility,  followed  by the  deployment  of  applications 
and  services  contributing  to  the  strengthening  of  the  internal  market  and  job 
creation,  in  particular  those  offering 
to  SMEs  means  to  improve  their 
competitiveness  in the European  Union and at world level. 
the  confirmation  of  the  feasibility,  followed  by  the 
The  identification, 
deployment  of trans-European  generic  services  providing  a seamless  access  to 
all  kind  of 
in  rural  and  peripheral  areas,  and 
interoperable with equivalent  services at world level. 

information, 

including 

•  The  confirmation  of the  feasibility  of  new  high-bandwith  fibre  optic  backbone 
networks,  where  required  for  such  applications  and  services,  and 
the 
promotion  of the interconnectivity  of such networks. 
The  identification  and  removal  of  gaps  and  missing  links  for  an  effective 
interconnection 
of 
telecommunications  networks  in  Europe  and  at  world  level,  with  a  particular 
emphasis on IBC networks. 

interoperability 

components 

their 

and 

all 

in 

The  broad  lines  of  measures  to  be  implemented  for  reaching  the  objectives  defined  in 
article 2 will  cover: 

Article 4 

Identification  of Projects  of Common  Interest. 
Actions  aiming  at  increasing  the  awareness  of  citizens,  economic  actors  and 
administrations  on  the  benefits  they  can  draw  from  the  new  advanced  trans-
European  telecommunications  services and applications. 

•  Actions aiming at the stimulation  of combined  initiatives from  the users and the 
trans-European 

providers  for 
telecommunications  networks, in particular  IBC networks. 

launch  of  projects 

the  field  of 

the 

in 

•  Support,  in  the  framework  of  the  means  defined  by  the  Treaty,  to  the 
confirmation  of  the  feasibility,  followed  by  the  deployment  of  applications,  in 
to  the 
particular  applications  of  collective  interest,  and  encouragement 
establishment  of public-private  partnerships. 

^7 

•  Stimulation  of the offer  and  the use of services and  applications  for  SMEs and 

professional  users, which constitute a source of employment  and growth. 

•  Promotion  of  the  interconnectivity  of  networks,  of  the  interoperability  of 
broadband  services  and  applications  and  of  the  infrastructure  they  require,  in 
particular  for  multimedia,  and  of  the  interoperability  between  existing  and 
broadband  services and applications. 

Article 5 

The  development  of  trans-European  telecommunications  networks  is  made  under  this 
Decision  by  the  implementation  of  Projects  of  Common  Interest.  The  domains  within 
which Projects  of Common Interest  shall be identified  are listed in Annex 1. 

Article 6 

The  following  Articles  7 to  9  describe  the  procedure  for  identifying  specific  Projects  of 
Common  Interest  in  the  domains  indicated  in  annex  1,  using  the  identification  criteria 
listed in annex 2.  The identified  projects  are eligible for Community  support  in compliance 
with  the  Council  Regulation  laying  down  general  rules  for  the  granting  of  Community 
financial  aid in the field of trans-European  networks. 

Article 7 

1.  A  Work  Programme  shall  be  drawn  up  by  the  Commission,  in  conformity  with  the 
other trans-European  network  policies, in consultation  with  sector  actors,for  selecting 
the areas  in which  specific  Projects  of  Common  Interest  can  be  proposed,  within  the 
domains  of  Projects  of Common  Interest  set  out  in  annex  1.  The  Work  Programme 
shall be updated  as necessary. 

2.  The Work  Programme  shall  be  the  basis  for  the  establishment  of  Calls  for  Proposals 

for Projects  of Common  Interest  by the Commission 

Article 8 

1.  The Commission  shall be responsible for  the  implementation  of the  procedure  defined 

in articles 7 to 9. 

2.  For  the  cases  specified  in  Article  9  (I),  the  Commission  shall  be  assisted  by  a 
Committee  composed  of  representatives  of  the  Member  States  and  chaired  by  the 
representative  of the Commission. 

The Commission  representative  shall  submit  to the Committee  a draft  of the measures 
to  be  taken.  The  Committee  shall  deliver  its  opinion  on  the  draft  within  a  time  limit 
which  the  chairman  may  lay  down  according  to  the  urgency  of  the  matter.  The 
opinion  shall be delivered  by the majority  provided  for  in Article  148(2) of the Treaty 
in the case of decisions which the Council  is required  to adopt  on a proposal  from  the 
Commission.  The votes  of the  Member  States'  representatives  within  the  Committee 
shall be weighted  in the manner set  out  in that  Article. The Chairman  shall not vote. 

z% 

The  Commission  shall  adopt  the  measures  envisaged  where  they  are  in  accordance 
with the opinion of the Committee. 

If the  measures  envisaged  are  not  in accordance  with  the  Committee's  opinion,  or if 
no  opinion  is delivered,  the  Commission  shall  without  delay  submit  to  the  Council  a 
proposal  relating  to  the  measures  to  be  taken.  The  Council  shall  act  by  qualified 
majority. 

If on  expiry  of a period  of one  month  from  referral  of the  matter  to  the  Council,  the 
latter has not acted, the proposed  measure shall be adopted  by the Commission. 

Article 9 

1.  The procedure laid down in Article 8 shall apply to: 

• 

• 
• 

the preparation  and updating of the Work Programme referred  to in Article 7; 
the  identification  of  Projects  of  Common  Interest  as  a  result  of  a  Call  for 
Proposals; 
the definition  of complementary  support  and coordination  actions; 
the  measures  to  be  taken 
Programme. 

to  evaluate  the  implementation  of  the  Work 

2.  For the particular  case of the domain  of projects  of common  interest  related  to  ISDN 
(referenced  in annex  1, pt  3,  1st  par.), the  applicable  guidelines  are  those  adopted  by 
the Council 

15. 

3.  The Commission  shall  inform  the Committee,  at  each  of  its meetings,  of the  progress 

of the Work  Programme  implementation. 

Article 10 

Member  States  shall  take  all measures  required  at  national,  regional  or  local  level  to 
facilitate  and accelerate the implementation  of the projects  of Common  Interest,  in the 
respect  of  Community  rules.  The  authorisation  procedures  which  may  be  necessary 
shall be achieved  in the shortest delays. 

This Decision  shall not  prejudice  anyfinancial  commitment  by  a Member  State or  the 
Community. 

Article 11 

'*  The  common  position  adopted  by the  Council  on  the draft  decision  arc  referenced  : (CE)  NT47/94 of 

22 decembcr  1994 (JO C384 of 31 dcccmbcr  1994, p29). 

Article 12 

23 

The participation of third countries,  in particular those being parties to the agreement 
on European Economic Area, or having concluded an association agreement with the 
Community,  can be authorised  by the Council  on a case by case basis,  following  the 
procedure laid down in Article 228 of the Treaty, in order to allow their contribution 
to  the  implementation  of  Projects  of  Common  Interest,  and  to  promote  the 
interconnection and the interoperability of the telecommunications networks. 

Article 13 

The Commission shall present every two years a report on the implementation of this 
Decision  to  the  European  Parliament,  the  Council,  the  Economic  and  Social 
Committee and the Committee of the Regions. 

The  report  shall  contain  an  evaluation  of  the  results  achieved  with  Community 
support in different  project fields, in relation to the overall objectives. 

This Decision enters into force on the seventh  day following the day of its publication 
in the Official  Journal of the European Communities. 

Article 14 

This Decision is addressed to the Member States. 

Article 15 

Done at Brussels, 

For the European Parliament 

The President 

For the Council 

The President 

3o 

Annex l:  DOMAINS FOR PROJECTS OF COMMON INTEREST 

The trans-European  telecommunications  networks will  open  the European  market to  the 
new  applications  and  services  which  are  the  ground  upon  which  the  information  society 
should  develop. They are essential to realise the objectives  of safeguarding  and promoting 
Europe's  future  prosperity  and  creating  new  jobs,  as  well  as  enhancing  economic  and 
social cohesion. . 

A three  layer  model  has  generally  been  accepted  as  the  most  appropriate  framework  for 
describing trans-European telecommunications networks.  These layers are: 

The Applications  layer,  through  which users interact with generic  services 
and  basic  networks  for  meeting  their  professional,  educational  and  social  needs. 
Applications require to be interoperable between themselves to bring the maximum 
benefit  to the users across the Community. 

The Generic Services  layer,  made of compatible  generic  services  and  their 
management.  Through  support  of  the  applications  common  requirements,  these 
services complement  he applications whilst aiding their  interoperability. 

The Basic  networks  layer,  that  provides  the physical  access, transport  and 
switching  elements  of  the  networks,  including  their  management  and  signalling. 
These elements are providing the trans-European  network  interconnectivity. 

These  three  layers  form  a  consistent  structure,  where  applications  are  supported  by  the 
two  lower  layers  : generic  services  and  basic  networks.  In  particular,  applications  cannot 
be  offered  in  the  absence  of  one  or  the  other  two  layers  ; however,  each  layer  should  be 
sufficiently  open as to support  any element  of the layer immediately  above.  In this context, 
Projects  of  Common  Interest  should  be  identified  on  the  basis  of  their  operational 
capability to support  the objectives  set forth  in this Decision. 

This  Decision  aims  at  identifying  a list  of  Projects  of Common  Interest, from  which 
Projects which will benefit  from  the Community  financial  support  under  art.l29C.l, 
third  indent,  will  be  selected.  This  selection  is  made  within  the  framework  of  the 
"Regulation laying down general  principles for the granting  of Community  financial 
aid  in the field  of trans-European  networks". 

The  recourse  to  the  other  sources^  of  Community  financing  remains  open,  within  the 
financing  rules  governing  each  instrument  for  all  the  Projects  of  Common  Interest 

16  These  other  sources  arc:  Fourth  Framework  RDT  programme.  Structural  Funds.  Cohesion  Fund, 
European  Investment Bank, European  Investment  Fund.  These  instruments  are described  in details 
in  Annex  1  to  the  document  "Methodology  for  the  implementation  of  information  society 
applications". 

identified.  Community  financial  support  are  granted  in  accordance  with  the  competition 
policy rules, notably those dealing with the financial support  of R&D and the state aids. 

The following  sections are defining  the domains in which Projects  of common  interest  will 
be  identified. 

I. 

Applications. 

The domains in which applications projects will be identified  are the following : 

31 

• 
A  Network  for  universities  and  research  centres  :  An  advanced  trans-
European  network,  carrying multimedia  applications,  should be established,  linking 
universities and research  centres across Europe, with open access to their libraries. 

• 
Distance  education  and  training  :  Advanced  distance  education  and 
training  services  should  be  made  accessible  for  all  citizens,  schools,  colleges  and 
businesses.  Centers  should  be set  up and  made remotely  accessible  across  Europe 
in  order  to  provide  courseware  and  training  services  for  SMEs,  large  companies, 
education  systems,  and  public  administrations.  New  approaches  to  professional 
training for the information  society should be developed  and  promoted. 

• 
Health  Telematics  :  Trans-European  networks  and  applications  based  on 
common  standards  should  be deployed,  which  would  link  on  a European  scale all 
the  partners  of the  health  system,  in  particular  general  practitioners,  hospitals  and 
social centres. 

• 
Transport  Telematics  : Full advantage  should  be taken  of  trans-European 
telecommunications  networks  to  improve  transport  network  management  and 
logistical  support  for  transport  industries  and  the  development  of  value-added 
services. Telematic  systems and  services, wherever  applicable,  should  also serve as 
a tool  for  implementing  Common  Transport  Policy; the necessary  complementarity 
with  and  interoperability  of  the  trans-European  Transport  Network  will  be 
ensured. 

• 
Telematics  for  environment  :  Trans-European  networks  can  bring  an 
important  contribution  to  the  monitoring  and  the  management  of the  environment, 
including emergency  management. 

• 
Televvorking  :  The  development  of  teleworking  (in  homes  and  satellite 
offices)  supported  by advance communication  systems will help provide new  forms 
of flexibility  in terms of the place of work  and the way work  is organised.  Through 
the decentralisation  of professional  activities, teleworking  can  also  help reduce  the 
environmental  consequences of daily commuting to population  centers. 

Telematic  services  for  SMEs  : Projects  of  common  interest  will  support 
• 
the  use  of  trans-European 
telecommunications  applications  and  services  by 
European  SMEs,  with  links  to  public  authorities,  trade  associations,  consumers, 
information  services  and  electronic 
customers  and  suppliers  and 

including 

3<2 

commerce. The awareness of telematics based  solutions in general  should be raised 
among SMEs. 

• 
Trans-European  Network  for  Public  Administrations  :  Interconnected 
in  Europe  should  be 
networks  between  public  administrations  networks 
established,  aiming  at  facilitating  interchange  of  data  between  adminstrations,  in 
particular  when  implementing  European  Union  regulations  providing  an  effective 
and  less  expensive  information  interchange.  It  should  be  further  extended  to  link 
public administrations and European citizens. 

• 
Electronic  tendering  :  A  trans-European  Electronic  Tendering  Network 
should  be  set  up, based  on  electronic  procedures  for  public  procurement  between 
public administrations and suppliers in Europe. 

• 
City  information  highways  : Networks  and  services  should  be  promoted 
interconnecting  households,  businesses,  social  organisations  and  administrations 
and  providing  access  to  on-line  multi-media  information,  education,  cultural, 
entertainment  and  tourism  services  on  a  local,  regional,  national  and  European 
basis. Links between  city and regional  networks should  be promoted. 

• 
Library  services  :  trans-European  advanced  nerworked  library  services 
involving all types of libraries (National,  University/research,  public etc.)  should be 
deployed  to  provide  effective  access to both  the reservoir  of  organised  knowledge 
and the cultural  wealth  held  in libraries across Europe,  in support  of the economic, 
social, educational  and cultural  life of the EU. 

• 
Telematic  services  for  the job  market.  Networked  services,  such  as job 
information  databases,  should  be developed  to  support  the changing  labour  market 
in Europe and to help tackle unemployment. 

• 
Cultural  and  linguistic  heritage.  Initiatives  should  be  launched  to  foster 
the  preservation  of  and  access  to  the  European  cultural  heritage,  and  to 
demonstrate  the  potential  of  the  information 
the 
development  of local content  in local languages. 

infrastructure 

to  support 

Citizens'  access to services.  Applications demonstrating  citizens' access to 
• 
services  of  collective 
interest  should  be  set  up.  Examples  might  include  the 
establishment  of  kiosks  and  access  points  in  public  areas,  and  the  use  of  smart 
cards and electronic wallets. 

2. 

Generic  Services 

The  domains  in  which  projects  of  common  interest  for  generic  services  networks  will  be 
identified  are the following : 

• 
Implementation  of operational  trans-European  generic  services,  which 
should  include  in particular  electronic  mail, file transfer  systems,  on-line  access  to 
electronic  data  bases,  and  video  services.  As  there  is  an  urgent  need  for  these 
trans-European  generic  services,  they  will  use  existing  switched  basic  networks 
and user access. They should  include service elements operating  at  European  scale, 

33 

protection  and 
navigational  aids, etc. 

information  security, 

trans-European  "kiosk"  and  network 

Progressive  extension  of  the  generic  services  toward  a  multimedia 
• 
environment..  These  services  will  offer  end-users  access  to  multimedia  services, 
and  might  cover,  but  should  not  be  limited  to,  multi-media  mail,  high  speed  file 
transfer  and  video  services, including  Video-on-Demand.  Use  of these  multimedia 
services  by  business  and  residential  users  should  be  encouraged,  as  well  as  the 
integration  of  new  service  elements  such  as  automatic  translation,  speech 
recognition, graphical user  interfaces. 

• 
Introduction  of  non-proprietary  digital  signature  as  a  basis  for  open 
service  provision  and  mobility  of  use  :  Generic  services  will  rely  on  a  large 
number  of  complementary  and  competing  services  providers.  Open  Service 
Provision  and  mobility  of  use  will  be  of  key  importance  and  require  electronic 
names (digital  signatures) to be generally available and  supported. 

3. 

Basic networks 

The domains in which projects  of common interest  for basic networks will be identified  are 
the following : 

Euro-integrated  Services  Digital  Networks 

: for  reasons  of  immediate 
• 
commercial  and  technical  trans-European  availability,  ISDN  is  today 
the  most 
appropriate  and  efficient  digital  switched  basic  network  that  can  support  new 
services  and  applications.  Its  present  development  makes  it  an  opportunity  for 
Europe,  and  its  market  and  geographical  extension  will  be  justified  by  the 
implementation  of  these  new  services  and  applications  at  pan-European  scale. 
However,  it  should  be  borne  in  mind  that  ISDN  is only  a  first  step,  and  that  it  is 
going  to  evolve  toward  becoming  merely  a  user  access  to  broadband  basic 
services. 

• 
Commercial  introduction  of  managed  Asynchroneous  Transfer  Mode 
(ATM)  and  other  broadband  networks  :  this  domain  must  be  considered  as 
being of utmost common  European  interest. 

• 
Interoperation  of  existing  and  broadband  communication  networks  : 
satellite  services)  should  be 
existing  networks  (for  fixed,  mobile  and 
interconnected  and  intemperate  between  themselves  and  with  ATM-based  high 
speed  networks,  in  order  to  offer  the  most  appropriate  economic  solutions  to  the 
various situations which will occur during the setting up of the information  society. 
This  issue  is  at  the  core  of  the  development  of  the  Integrated  Broadband 
Communications  network,  and  is particularly  relevant  for  SMEs, as well  as for  the 
professional  and residential  markets. 

4. 

Support  and Coordination Actions 

In  addition  to  its  support  to  projects  of  common  interest,  the  Community  should  initiate 
actions  aiming  at  providing  the  appropriate  environment.  They  will  contribute  to 

consensus development  and concertation  of national  and  regional  activities for  stimulation 
and  promotion  of new applications  and  services  in conformity  with  the  implementation  of 
programs  in other  areas,  as well  as the  development  of broadband  basic  networks.  They 
will  involve  concertation  with  European  standardisation  and  strategic  planning  bodies *', 
co-ordination  with  actions funded  by the different  Community  financial  instruments.  This 
includes : 

^ 

Development  of  target  specifications,  and  transition  towards  these 
• 
targets.  These  specifications  will  support  sector  actors  to  make  sound  economic 
investment  decisions.  This  will  be  done  in  consultation  with  all  sector  actors, 
including  telecommunication  operators,  cable  operators,  emerging  operators, 
service providers, trade associations and consumer associations  for: 

identifying  the missing elements and the bottlenecks  in the  Trans-European 

- 
telecommunications  networks 

-  developing  the  target  networks  specifications  for  the  three  identified 
network  layers.  This  includes  terrestrial,  satellite,  mobile,  as  well  as 
management  and  operation  on  a European  scale.  Sector  actors  will  build  on 
the RACE  and Telematics Programme Common  Functional  Specifications,  the 
EURESCOM  work  and other technical  bodies set-up by sector actors, and  the 
results of broadband  trials underway  as well  as the  results  of the  ESPRIT  and 
IT programmes. 

-  developing the network  evolution  towards the target  networks, and 

-  encouraging  the  development  of  open,  interoperable  and  user  friendly 
systems. 

Definition  of  means  to  access  broadband  networks,  at  the  three 

• 
specified  layers. 

Establishment  of  common  specifications,  based  on  European  and  world 

• 
standards. 

Furthering  the  cooperation  among  sector  actors,  in  particular  the 
• 
emerging  and  fragmented  operators,  such  as  cable  television  networks,  as  well  as 
with users. 

Cooperation  and  co-ordination  with  Community,  European  and 

• 
national  programmes. 

17  ETSI, CEN/CENELEC.  EURESCOM  and  ETNO 

Is 

Annex 2 

Identification  criteria. 

The  identification  of  Projects  of  Common  Interest  among  the  projects  presented  by 
interested  sector  actors  in  response  to  a  Call  for  Proposal  as  mentioned  in  Article  7  is 
made  on  the  basis  of  their  compliance  with  the  objectives  and  priorities  laid  down  in 
Articles  2  and  3 respectively.  These  projects  shall  be  transnational  with  special  emphasis 
on projects of an interregional nature. 

In  addition,  the  economic  and  financial  criteria  spelt  out  in  the  "Regulation  laying  down 
the general rules for the granting of Community financial  aid in the field of trans-European 
networks"  shall be taken  into account.  These criteria,  which  will be used  in the  framework 
of this Regulation  to decide on the granting of a financial support  to a specific  project,  are: 

- the potential  economic viability of the project,  which should  be assured 

- the maturity of the project 

- the stimulative effect  of Community  intervention  on public and private  financing 

- the effectiveness  of the financial package 

- the direct  or indirect  socio-economic  effects,  in particular on employment 

- the consequences for  environment. 

-  specially  for  transborder  projects,  coordination  of  the  timing  of  the  different  parts  of a 
project. 

BACKGROUND NOTE ON THE IMPACT ON SMEs AND  EMPLOYMENT 

6<£ 

PROPOSAL FOR A DECISION OF THE EUROPEAN PARLIAMENT AND THE COUNCIL ON A 
SERIES OF GUIDELINES FOR TRANS-EUROPEAN  TELECOMMUNICATIONS  NETWORKS 

The  draft  Decision  sets  out  to  stimulate the implementation  of the  new  services  and  new 
applications  of  the  information  society,  and  in  particular  those  which  are  of  collective 
interest,  in  accordance  with  the  procedures  stipulated  in  Title  XII  of  the  Treaty  for 
supporting  the  development  of trans-European  telecommunications  networks.  The  draft 
Decision defines the guidelines for the constitution  of a list of projects  of common  interest 
which  could  potentially  benefit  from  Community  financial  support  provided  through  the 
various instruments available. 

1. 

2. 

3. 

4. 

5. 

6. 

Small  and  Medium-sized  Enterprises  (SMEs)  which  make  proposals  of  a 
transnational  nature  and  request  financial  assistance  within  this  context  should 
demonstrate  the  economic  viability  of  the  project  in  a business  plan.  Companies 
will also have to  show the direct  and  indirect  effects  of their projects,  in particular 
in terms of employment  and the environment. 

trans-European 

Economic  development,  especially  at the local  and  regional  levels, depends  on the 
rapid  deployment  of  high  performance 
telecommunications 
networks.  They will foster  the creation  of new markets comprising  of services and 
applications of the information  society,  whose  development  will largely depend  on 
the  dynamism  of  SMEs  who 
the 
communications  sector.  The  draft  Decision  includes  coordination  and  support 
actions  encouraging  the  participation  of  SMEs.  Included  among  the  application 
fields  eligible  for  Community  support  are  the  implementation  of  telematic  links 
between  SMEs, but  also  the  launch  of  distance  professional  training  services  and 
teleworking facilities  of particular interest  to SMEs. 

to  be  particularly 

innovative 

tend 

in 

The draft  Decision will have no negative impacts on SMEs. 

The  stimulation  of  new  activities  gives  rise  to  the  direct  creation  of jobs,  notably 
within  such firms as electronic  service  providers  and  software  suppliers  which  are 
often  SMEs. 
Jobs  will  also  be  created  indirectly  within  other  sectors  of  the 
economy depending on rates of diffusion  of productivity  and revenue gains. 

The  principle  of  the  draft  Decision  was  announced  in  the  Communication  of  the 
Commission  "Europe's  Way  to  the  Information  Society:  an  Action  Plan" 
(COM(94)  347).  This  document  is  and  has  been  the  subject  of  a  number  of 
different  reports produced  by other  parliamentary  institutions  (EP, ECOSOC), and 
representative  organisations. 

The chosen approach  is based  on the establishment  of an overall framework  for the 
possible  allocation  of  Community  support.  Community  action  is  guided  by  the 
desire  for  transparency  and  aims to  encourage  those  companies  and  organisations 
which  are  interested  to  develop  activities  in  the  field  of  the  applications  and 
services of the European  information  society. 

3} 
ISSN 0254-1475 

COM(95) 224  final 

DOCUMENTS 

EN 

16 

Catalogue number  :  CB-CO-95-252-EN-C 

ISBN 92-77-89396-6 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg