Proposal for a European Parliament and Council Directive on a common framework for general authorizations and individual licences in the field of telecommunications services
Date: 1995-11-14
Institutions: European Commission
Subjects: competition, freedom to provide services, principle of subsidiarity, right of establishment, telecommunications, trade licence

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  14.11.1995 
COM(95)  545  final 

95/0282  (COD) 

Proposal  for  a 
EUROPEAN  PARLIAMENT  AND  COUNCIL  DIRECTIVE 

on  a common  framework  for  general  authorizations  and  individual  licences 
in  the  field  of  telecommunications  services 

(presented  by  the  Commission) 

LIST  OF  CONTENTS 

Explanatoiy  Memorandum 

Background 
Scope  and  aim 
Wide  scope  for  general  authorizations  as opposed  to  individual  licences 
A balanced  set  of  rights  and  obligations 
Limitation  in  the  number  of  licensees 
Harmonization 
Specific  procedures 
Summary  of  the  contents  of  the proposed  Directive 
Consultation  process 
Conclusion 

Proposal  for  a European  Parliament  and  Council  Directive  on  a common  framework  for 
general  authorizations  and  individual  licences  in  the  field  of  telecommunications  services 

Article 
Article 
Article 
Article 
Article 
Article 
Article 
Article  8 
Article  9 
Article  10 
Article  11 
Article  12 
Article  13 
Article  14 
Article  15 
Article  16 
Article  17 
Article  18 
Article  19 
Article  20 
Article  21 
Article  22 
Article  23 
Article  24 
Article  25 
Article  26 

Scope  and  aim 
Definitions 
Principles  governing  authorizations 
Conditions  attached  to  general  authorizations 
Procedures  for  general  authorizations 
Fees  for  general  authorizations 
Scope 
Conditions  attached  to  individual  licences 
Procedures  for  the  granting  of  individual  licences 
Limitation  on  the  number  of  individual  licences 
Fees  for  individual  licences 
Principle 
Coordination  of  authorization  procedures 
Harmonization 
One-stop-shopping  procedure  for  individual  licences 
Establishment  of  the EUTC 
Procedures  for  the  EUTC 
Third  countries 
Confidentiality 
Notification 
Authorizations  existing  at  the  date  of  entry  into  force  of  this  Directive 
Review  Procedures 
Deferment 
Implementation  of  the  Directive 
Entry  into  force 
Addressees 

~ 

Financial  statement 

EXPLANATORY  MEMORANDUM 

1. 

Background 

(a)  Council  Resolution 

This  proposal  for  a  directive  on  a  common  framework  for  general  authorizations  and 
individual licences in the field of telecommunications  services is an essential part of a general 
legislative  reform  package  for  the  telecommunications  sector. 

The  political  agreement  to  liberalize  telecommunication  services  and  telecommunications 
infrastructure  by  1st  January  1998(1)  has  been  reached  through  Council  Resolutions  of 
22  July  1993(2)  and  22 December  1994(3). 

As  far  as authorization  regimes  are  more particularly  concerned,  the  Council  Resolution  of 
18  September  1995  on  the  implementation  of  the  future  regulatory  framework 
for 
telecommunication^  "...recognizes  as  key  factors  in  drawing  up  the  future  regulatory 
framework for  telecommunications  in  the Union: 

(a) 

the extension  of  competition  to  the whole  sector through: 

the  establishment,  in  accordance  with  the  principle  of  subsidiarity,  of  common 
principles  for  general  authorizations  and  individual 
in  the 
Member  States,  based on  categories of  balanced rights and obligations; 

licensing  regimes 

the absence of any restrictions on market entry other than those justified  on the grounds 
of  objective,  transparent,  proportionate  and non-discriminatory  criteria relating to  the 
availability  of  scarce  resources; 

the implementation  by  the national regulatory authorities of  objective,  transparent and 
non-discriminatory  award procedures  and criteria; 

the efficient  management  of  essential resources, and particularly frequencies,  numbers 
and rights of way,  to ensure the equitable treatment of  the various market players,  under 
the supervision  of  the  competent  national authorities; 

the approximation  of general authorization and individual  licensing regimes  in order to 
promote  the development  of  trans-European  networks  and  services;..". 

( i) 

(2) 

(3) 

( • *) 

Greece, Ireland,  Portugal  and  Spain  have possible transition  periods of up to five years; 
Luxembourg  has  a possible  transition  period  of  up to  two  years. 
OJNo  C 213, 6.8.1993,  p.  1. 
OJ  No  C 379,  31.12.1994,  p. 4. 
OJ  No  C 258,  3.10.1995,  p.  1. 

3 

(b)  European Parliament  Resolutions 

its  Resolution  on 

liberalization  of 
the  Commission's  Green  Paper  on 
In 
telecommunications  infrastructures  and  cable television  networks(5), the European  Parliament 
"asks  that there should be no attempt  to limit  the number of  licences granted in the area of 
infrastructures and services. Licences should only be refused in cases where companies cannot 
demonstrate that they can meet objective  criteria on issues such as technical standards,  quality 
standards and universal service  obligations". 

the 

It is also  important to note that this Directive replaces the two former  Commission  proposals 
on mutual  recognition of licences. This Directive  continues the way already  laid out by these 
two  proposals  in  the  field  of  licensing,  whilst  taking  into  account  the  objective  of 
liberalization  of  the  provision  of  telecommunications  infrastructure  by  1 January  1998. 

In  its  Resolution  on  the  amended  proposal  on  the  mutual  recognition  of  licences(6),  the 
European  Parliament  expressed  in  particular  the  opinion  that  the  principle  of  mutual 
recognition  of national  licences and other authorizations  should be extended to cover  general 
regulatory  authorizations  such  as class  licences. It  also  outlined  that the  scope of  a  directive 
on  licensing  should  cover  voice  telephony,  telex  and  mobile  radio  services. 

2. 

Scope  and aim 

This  proposal  for  a  Directive  goes  beyond  the  objectives  of  ensuring  full,  Union-wide 
competition  and  harmonizing  national  legislation;  it  also  reflects  the  role  of  authorization 
regimes  in  imposing  rights  and  obligations  and  in  monitoring  markets. 

There  indeed  exists  a consensus  that, in  an open  environment,  telecommunications  operators 
have to comply with a number of requirements relating both to predominantly  technical  issues 
(essential requirements) as well as to public service objectives. Authorization  regimes provide 
an  appropriate  means  to  supervise  access to  the  market  and  to  monitor  compliance  with  the 
requirements  which  are imposed  on  operators.  At the  same time  it has become  clear  that  the 
development of competition will be served best by authorization regimes which do not impose 
undue  burdens  on  operators,  whether  through  conditions  or  through  procedures. 

By  1  January  1998  liberalization  will  extend  to  all  telecommunications  services  and 
infrastructure,  including  terrestrial  mobile  services  and public  voice telephony,  as well  as to 
infrastructure.  Rules  on  authorizations  must  therefore  be  in  place  to 
satellite  services  and 
cover  all 
the  use  of 
infrastructures, 
radiofrequencies  for  that  purpose.  In  this  context,  the  question  arises  whether  several  legal 
instruments  are  required.  For  reasons  of  transparency  and  simplicity  preference  should  be 
given  to  a  single  instrument  covering  the  full  scope  of  the  granting  of  authorizations  in 
telecommunications. 

telecommunications 

services  and 

including 

The  regulatory  framework  for  the  granting  of  authorizations  must  also  take  into  account  the 
changes  in the regulatory  landscape  in the Union  (interconnection,  universal  service), as well 
as  developments  in  relation  to  the  provision  of  services  to  and  from  third  countries. 

Furthermore  any  regime on authorizations  is required to defer  to the need to contribute to the 
establishment of trans-European telecommunications networks as envisaged in Title XII of the 
Treaty  establishing  the  European  Community. 

Finally  the regulatory  framework  which  applies to new audiovisual  services will be  reviewed 
at a later stage in the framework  of the green paper that the Commission  is preparing on these 
new  services. 

(5) 

(6) 

Resolution  A4-0111/95  of  19  May  1995  on  the  green  paper  on  the  liberalization  of 
telecommunications  infrastructure  and  cable  television  networks  (Part  II). 
Resolution  A4-0030/95  of  16 March  1995. 

3.  Wide  scope  for general  authorizations  as opposed to individual  licences 

The  definition  at  a  Union  level  of  a  regulatory  framework  for  authorizations  has  to  be 
consistent with legal requirements in relation to the principle of freedom  of establishment and 
freedom  to provide  services. Articles  52 and  59 of the Treaty  require that  any  restrictions  be 
justified  by  overriding  reasons relating  to the public interest  and that they  be proportional  to 
the objective being pursued. In addition the consultation  on the Commission's green paper on 
the  liberalization  of  telecommunications  infrastructure  has  confirmed  the  importance  of  the 
availability  of  the  lightest  possible  regimes,  in  order  to  ensure  the  efficient  development  of 
the  sector. 

As  a  result,  where  possible  preference  must  be  given  to  the  establishment  of  general  rules 
(general  authorizations)  to  give  effect  to  public  interest  requirements  rather  than  to  the 
application  of  an  a priori  control  (individual  licences).  Only  where  it  is  demonstrated  that 
these  general  rules  are insufficient,  should  a prior  individual  licensing regime be  introduced. 
Moreover,  there  should  be  no  obligation  for  Member  States  to  require  an  authorization 
(whether  a  general  authorization  or  an  individual  licence)  for  the  provision  of  some 
telecommunications  services  or  infrastructures. 

In  line  with  the  principle  of  subsidiarity,  the  granting  of  authorizations  will  be  the 
responsibility  of  Member  States,  in  compliance  with  the  principles  established  by  this 
Directive. 

As  used  in  this  text,  the  concept  of  authorization  includes  any  permit  required  for  the 
provision  of telecommunications  services and, where applicable, for the establishment  and/or 
operation  of  infrastructure  for  the  provision  of  these  services.  The  choice  of  whether  such 
permits  are  given 
through  one  or  more  documents,  or  given  by  one  or  more 
national/regional/local  authorities,  should  remain  a matter  for  Member  States. 

The  notion  of  general  authorization  covers  authorizations 
the  provision  of 
telecommunications  services  or  certain  infrastructures  which  allow  undertakings  to  start 
providing  such  services  or  infrastructures  under  the  conditions  set  out  in  the  general 
authorization  and  without  having  to  obtain  a prior  individual  permission. 

for 

Such  general  authorization  can  be  set  out  directly  in  legislation  or  implemented  through  a 
system  of  class  licences.  It  can  operate  without  any  notification  or  application  requirement; 
but  in  cases  where  closer  supervision  is  required,  it  can  be  accompanied  by  a  notification 
requirement. 

The  introduction  of  general  authorizations  in  Member  States  would  imply  that  service  or 
infrastructure  providers  do  not  have  to  go  through  individual  licensing  procedures  in  each 
Member  State in which they intend to provide a service or infrastructure  covered by a general 
authorization. 

Where  a  service  or  infrastructure  cannot  be  introduced  wholly  on  the  basis  of  the  general 
authorization  procedure  because  the  latter  is  insufficient  to  attain  the  stated  public  interest 
objectives,  an  additional  procedure  for  the granting  of  individual  licences, taking  account  of 
additional  requirements  in  conformity  with  Community  law,  can  be  applied. 

This  would  be  the  case  where  operators  require  individual  rights  over  localised  or  scarce 
resources, such as frequencies,  rights of way or rights to numbers, or where they require rights 
to  provide  public  telecommunications  infrastructure  from  or  to  a  third  country  or  where 
operators  need  to  comply  with  specific  obligations  on  account  of  their  market  power,  or 
because  they  have  an  obligation  of  mandatory  provision  of  public  telecommunications 
services. 

That  individual  licence  should  be  limited  to  ensuring  compliance  with  the  requirement(s) 
necessitating  the  individual  assessment  (e.g.  in  the  case of  use  of  frequencies). 

4. 

A  balanced  set of rights and obligations 

General  authorization  and  individual  licence  systems  will  enable  the  regulatory  authority  to 
impose conditions to safeguard  public interest objectives in conformity  with Community  law. 

These conditions should be objective, transparent, non-discriminatory  and in conformity  with 
the principle of proportionality. They should not in particular impose restrictions on operators 
which  are  out  of  proportion  with  the  objective  which  is being  pursued. 

These principles of objectivity, transparency, non-discrimination  and proportionality  apply also 
to  procedures. 

Thus  authorization  regimes  should  be  aimed  at  introducing  a differentiated  system  of  rights 
and  obligations,  depending  on  the  purposes  pursued  by  different 
telecommunications 
providers.  These  rights  and  obligations  should  constitute  balanced  sets  where  greater  rights 
are the counterparts for  more onerous obligations. Where an operator provides  services to the 
public,  this  is  likely  to  justify  greater  supervision  and  hence  a  more  comprehensive 
authorization  regime  than  the  provision  of  private  telecommunications  services.  Likewise, 
network  operators  which  require  access  to  public  land  or  to  radiofrequencies  should  accept 
public interest requirements which are not incurred by operators who do not need these  scarce 
resources. Conversely, smaller operators may benefit  from  an alleviated  authorization  regime. 

5. 

limitation  in the  number of  licensees 

As agreed  in the Resolutions  of the  Council  and Parliament  mentioned  above, the number  of 
authorizations  granted  in  a  Member  State  should  only  be  limited  in  relation  to  physical 
infrastructure,  as  opposed  to  service  provision,  on  the  basis  of  the  efficient  use  of  radio 
spectrum,  and  should  be  subject  to  review  at  reasonable  intervals. 

6. 

Harmonization 

The  definition,  at  a  Union  level,  of  principles  for  authorization  regimes  should  lead  to  a 
considerable  improvement  in  the  situation  of  operators  intending  to  provide  services  in 
different  Member  States. 

from 
Nevertheless,  the  obligations  set  out  in  authorizations  could  differ  significantly 
Member  State to  Member  State. Undertakings  could  therefore  still  be  faced  with  a  situation 
in  which  they  would  have  to  adapt  their  services  or  networks  to  different  regulatory 
obligations  if  they  wanted  to  provide  a  service  or  infrastructure 
in  more  than  one 
Member  State, thereby  hindering  the  establishment  of  trans-European  networks  or  services. 

In  order  to  overcome  barriers  to  the  creation  of  an  internal  market  for  telecommunications 
networks  and  services  and,  in  particular,  the  imposition  of  heavier  costs  or  more  onerous 
administrative  procedures  resulting  from  diverging  authorization  regimes  and  obligations 
attached to such authorizations, a procedure should be provided for the harmonization  of such 
conditions.  Such  a harmonization  procedure  would  be built  on  the procedure  already  set  out 
in the proposals on mutual recognition and allow for the possibility  of involving ECTRA/ETO 
and  ERC/ERO  in  the  technical  preparation  of  harmonized  conditions.  The  preparation  of 
harmonized  conditions  should  include  a Europe-wide  public  consultation;  their  adoption  by 
the  Commission  should  follow  standard  Committee  procedures. 

7. 

Specific  procedures 

The  provision  of  a  one-stop-shopping  procedure  (also  already  set  out  in  the  proposals  on 
mutual  recognition)  is  useful  to  facilitate  simultaneous  applications  for  and  granting  of 
individual  Member  State  licences. 

Operators intending to provide large trans-European  telecommunications  systems should  also 
benefit  from  a  mechanism  allowing  them  where  necessary  to  obtain  authorizations  on 
substantially  the  same  conditions  in  one  or  more  Member  States. 

establishes 

this  Directive 

the  European  Union 
Finally, 
Telecommunications  Committee.  On the  one  hand  this  Committee  should  deal  with  specific 
licensing  issues, in particular  with  regard  to the provisions  of  Articles  13, 14,  15, 20  and  22 
of the Directive; on the other hand, it would be the appropriate forum  for broader  discussions 
at  a high  level  on  telecommunications  policies. 

committee, 

called 

a 

8. 

Summary  of  the  contents  of  the  proposed  Directive 

Section  I contains  three  Articles  stating  general  provisions. 

Article  1 describes  the  basic  scope  and  aim  of  the  Directive. 

Article  2  contains  definitions  of  the  main  terms  used  in  the  Directive. 

Article  3  outlines  the  major  principles  governing  the  conditions  that  can  be  attached  to 
authorizations,  requiring  in  particular  that  any  conditions  attached  to  authorizations  shall  be 
objectively justified  and proportionate. It states precisely that authorizations may only  contain 
conditions justified  on the grounds of ensuring compliance with applicable requirements. This 
Article  also  expresses  the priority  to be given to regimes  either  requiring no  authorization  or 
relying  on  general  authorizations  and  states  that  Member  States  may  only  require  an 
individual  licence  to  the  extent  that  the  beneficiary  is  given  access  to  scarce  physical  and 
other  resources  or  is  subject  to  particular  obligations  or  benefits  from  particular  rights. 

Section  II (Articles  4 to  6)  contains  provisions  on  general  authorizations. 

Article  4  sets  out  transparency  requirements  concerning  the  conditions  attached  to  general 
authorizations and indicates that priority  should be given to the least onerous regime possible. 

Article  5  lays  down  the  principle  according  to  which  Member  States  shall  not  prevent  an 
undertaking  which  complies  with  the  conditions  set  out  in  a  general  authorization  from 
providing  the  intended  telecommunications  service.  Certain  limits  to  that  principle  may 
however be established: prior notification,  communication of relevant information,  observance 
of a waiting period before  starting providing the service. This Article also contains provisions 
applicable where an undertaking providing telecommunications  services does not comply with 
a  condition  set  out  in  a general  authorization. 

Article 6 allows the imposition  of fees to cover the administrative  costs in the case of general 
authorizations  and  requires  these  fees  to  be  published. 

Section  III (Articles  7 to  11)  contains  provisions  on  individual  licences. 

Article  7 lists the  situations justifying  the  imposition  of  a individual  licensing  regime.  These 
situations  are  linked  to  access  to  scarce  physical  or  other  resources  (radio  frequencies, 
numbering,  public  or  private  land)  or  to  the  provision  of  public  telecommunications 
infrastructure  to  and  from  third  countries; individual  licensing  regimes  may  also be  justified 
to  impose  obligations  on  licensees  with  regard  to  the  mandatory  provision  of  public 
telecommunications  services  and,  in  relation  to  the  provision  of  public  telecommunications 
networks and telecommunications  services, with regard to the market power of licensees. This 
Article  also  states  that  undertakings  wishing  to  provide  services  which  cannot  be  provided 

7 

without  authorization  and  which  are not yet  covered  by  a general  authorization  or to  benefit 
from  additional  rights  not  granted  by  general  authorizations  may,  in  addition,  apply  for  an 
individual  licence. 

Article  8  requires  that  the  conditions  attached  to  an  individual  licence  only  relate  to  the 
situations justifying  the grant of  such  a licence  and  that Member  States  shall  apply  balanced 
sets  of  rights  and  obligations  for  the  beneficiaries  of  individual  licences.  In  addition  this 
Article addresses the situation  where the terms of the applicable general authorizations  would 
be  incorporated  into  an  individual  licence. 

Article  9  contains  procedural  requirements  for  individual  licensing  regimes,  related  to 
transparency  (appropriate  publication),  the  setting  of  reasonable  time  limits,  the  granting 
procedures (which  must be open, non-discriminatory  and transparent)  and the situation  where 
the  benefit  of  an  individual  licence  is  refused,  withdrawn  or  suspended.  It  also  requires  the 
provision  of  appealing  procedures. 

Article  10  more  specifically  addresses  the  situation  where  a  Member  State  intends,  in 
accordance  with  Directive  .../.../EEC(7),  to  limit  a priori  the  number  of  individual  licences. 
Such  a  situation  shall  only  be  permitted  to  ensure  the  efficient  use  of  radio  frequencies.  In 
such a case, additional  requirements and principles are defined  by this Article: Member  States 
shall  in  particular  give  due  weight  to  the  need  to  facilitate  the  development  of  competition 
and to maximize benefits  for  users, and provide for additional transparency.  Selection  criteria 
must.be  objective,  detailed,  transparent,  proportionate  and  non-discriminatory. 

Article  11  addresses  the  issue  of  fees  for  individual  licences,  allowing  Member  States  to 
impose, in addition to administrative fees, fees related to the use of scarce resources. However 
such practices must comply with a number of requirements (non-discrimination, publication...). 

Section  IV  (Articles  12  to  15)  is  related  to  the  provision  of  telecommunications  services 
throughout  the European  Union. 

Article  12  sets  out  the  principle  according  to  which  Member  States  shall  facilitate  the 
provision  of  such  services. 

Article  13  gives  the  possibility  to  undertakings  intending  to  provide  telecommunications 
services or to establish telecommunications  infrastructures  in more than one Member  State to 
request the national  regulatory  authorities  concerned  to coordinate  their  procedures  in  order 
to  deliver  the  necessary  authorizations  on  substantially  the  same  conditions.  Where  the 
undertaking concerned is unable to obtain the necessary authorizations, the Directive provides 
for  a  procedure  involving  the  Member  States  concerned  and  the  Commission  through  the 
European  Union  Telecommunications  Committee  (see  Articles  16 and  17). 

Article  14  addresses  harmonization.  It  specifies  that  Member  States  must  ensure  that  the 
categories  of telecommunications  services  listed  in  Annex  II  can  be provided  either  without 
authorization,  or  on  the  basis  of  a  general  authorization.  It  sets  up  as  a goal  that  wherever 
necessary the conditions attached to authorizations for the provision of the telecommunications 
services  listed  in  Annex  II,  the  procedures  for  the  grant  of  general  authorizations  and 
individual  licensing  and  the  determination  of  the  level  of  fees  shall  be  harmonized.  This 
Article  also  provides  for  a  harmonization  mechanism  through  mandates  assigned  by  the 
Commission  to  relevant  harmonization  bodies.  The Directive  stresses that  the  harmonization 
of conditions and procedures shall aim to develop the least onerous regime possible  consistent 
with  ensuring  compliance  with  the  applicable  requirements  and to  elaborate  balanced  sets of 
rights  and  obligations  for  the  beneficiaries  of  authorizations. 

(7) 

Commission  Directive  amending  Commission  Directive  90/388/EEC  regarding  the 
implementation  of  full  competition  in  telecommunications  markets,  OJ  No  L  192, 
24.7.1990,  p.  10. 

8 

Article  15 sets  up  a one-stop-shopping  procedure  for  individual  licences. 

Section V (Articles  16 and 17) describes the European Union Telecommunications Committee. 

Articles  16 and 17 establish a committee  composed of representatives the Member  States and 
the  European  Union 
chaired  by 
Telecommunications  Committee  (EUTC).  This  Committee  will  assist  the  Commission  in 
giving  opinions  on  measures  to  be  taken,  in  particular  with  regard  to  the  provisions  o£ 
Articles  13,  14,  15, 20  and  22  of  the  Directive. 

the  Commission,  called 

representative  of 

a 

Section VI (Articles  18 to  25)  contains  final  provisions. 

Article  18 addresses  the application  of this Directive to  undertakings  from  third  countries. It 
provides for  a mechanism to ensure comparable and effective  access to third country  markets, 
where  it  appears  that  Community  undertakings  are  encountering  difficulties  in  obtaining 
authorizations  in  such  third  countries. 

Article  19  contains  standard  procedures  on  confidentiality. 

Aiticle  20  requires  Member  States  to  notify  the  Commission  of  general  information  on 
national  authorization  regimes.  It  contains  a  mechanism  where  upon  request  of  a 
Member  State  or  at  its  own  initiative,  the  Commission  will  assess  the  compliance  of  any 
conditions,  criteria  and  procedures  set  out  in  a  national  authorization  regime  with  the 
principles  of  the  Directive. 

Aiticle  21  concerns  authorizations  already  granted  at  the  date  of  entry  into  force  of  the 
Directive. 

Article  22  contains  a general  provision  on  the  review  of  implementation  of  the  Directive  in 
Member  States, a provision  for  future  adaptations of content of the Annexes of this  Directive 
in  the  light  of  new  technological  developments  and  a  specific  provision  related  to  access  to 
third  countries  telecommunications  markets  by  Community  undertakings. 

Article  23 allows  Member  States  with  less  developed  networks  or  with  very  small  networks 
to  request  additional  implementation  periods. 

Aiticle  24  contains  standard  provisions  on  the  transposition  of 
Member  States'  national  law,  providing  for  this  to  be  accomplished  by  1 July  1997. 

the  Directive 

into 

Aiticle  25  states  that  the  Directive  is  addressed  to  the  Member  States. 

Annex  I lists  the  conditions  that  may  be  attached  to  authorizations. 

Annex  II addresses  the  services  to  be  covered  by  general  authorizations. 

9. 

Consultation  process 

The  need  for  a  clear  and  effective  framework  for  the  granting  of  authorizations  within  the 
European  Union  was  a  central  issue  arising  out  of  the  public  consultations  on  both  the 
Green  Paper on a common approach in the field of mobile and personal communications1^ and 
the Green Paper on the liberalization of telecommunications infrastructure  and cable television 
networks(9).  These  consultations  involved  all  interested  parties  and,  in  particular,  national 
regulatory authorities, fixed and mobile operators, service providers, equipment  manufacturers, 
users,  consumer  organizations  and  the  trade  unions. 

(8) 
(9) 

COM(94)  145, 27.4.1994. 
COM(94)  682,  15.1.1995. 

The  Commission's  communications  on  the  results  of  these  consultations,  particularly  its 
Communication  on  the Infrastructure  Green  Paper(10),  showed  strong  support  for  the  general 
principles  set  out  in  this  proposal  for  a  Directive,  according  to  which  the  principle  of 
proportionality  should be the main determinant of the granting of authorizations in the Union, 
creating  a balanced  set of rights and obligations in relation to different  categories of  services. 
This  was  seen  to  be  likely  to  lead  to  the  lightest  possible  regulatory  burden,  with  the  use of 
general  authorizations  becoming  the  rule,  and  more  onerous  individual  licences  being  the 
exception  (reserved  primarily  for  situations  involving  the grant of  radio frequencies/rights  of 
way,  the  imposition  of  obligations  to  provide  public  telecommunications  services  and  the 
imposition of particular competitive safeguards given the particular operator's market position). 

It  was  also  felt  that  national  authorization  or  licensing  procedures  would  have  to  be  open, 
transparent and non-discriminatory. Refusals  would have to be justified  (and subject to appeal) 
and a priori  limitations  on  numbers  could  only  be  based  on physical  limitations,  i.e.  lack  of 
frequency  and  not  on  an  economic  assessment  of  the  market's  capacity  by  the  national 
regulator. 

The  draft  of  this  Directive  reflects  these  concepts.  The  principles  embodied  in  the  proposed 
Directive  have  been  discussed  in  the  Open  Network  Provision  Committee  with  national 
regulatory  authorities. 

10.  Conclusion 

This  proposal  for  a  Directive  on  a  common  framework  for  general  authorizations  and 
individual  licences in the field of telecommunications  services is an essential part of a general 
legislative  reform  package  for  the telecommunications  sector,  in the perspective  of  a balance 
liberalization.  The  current  proposal  will,  once  adopted, 
between  harmonization  and 
complement  the introduction  under Directive  .../.../EEC(n) of full  competition  in the  provision 
of  telecommunication  services  and  telecommunications  infrastructure  in  the  Community  by 
1  January  1998, subject  to possible  additional  transitional  periods for  certain  Member  States 
of  up  to  five  years. 

(,0)  COM(95)  158, 3.5.1995. 
(U) 

Commission  Directive  amending  Commission  Directive  90/388/EEC  regarding  the 
implementation  of  full  competition  in  telecommunications  markets,  OJ  No  L  192, 
24.7.1990,  p.  10. 

10 

Proposal  for  a 
EUROPEAN  PARLIAMENT  AND  COUNCIL  DIRECTIVE 

on  a common  framework  for  general  authorizations  and  individual  licences 
in  the  field  of  telecommunications  services 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  57(2),  66  and  100a thereof, 

Having  regard  to  the  proposal  from  the  Commission(,), 

Having  regard  to  the  opinion  of  the  Economic  and  Social  Committee(2), 

Acting  in  accordance  with  the  procedure  in  Article  189b  of  the  Treaty, 

1.  Whereas  the  Council  Resolution  of  22  July  1993 on  the  review  of  the  situation  in the 
telecommunications  sector  and  the  need  for  further  development  in  that  market(3), 
together  with  the  Council  Resolution  of  22  December  1994  on  the  principles  and 
timetable  for  the  liberalization  of  telecommunications  infrastructures^,  as well  as  the 
European  Parliament resolutions of 20  April  1993(5),7 April 1995(6) and 19 May  1995(7), 
have  supported  the  process  of  complete  liberalization  of  telecommunications  services 
and  infrastructures  by  1  January  1998,  with  possible  transition  periods  for  certain 
Member  States; 

transparent  and  non-discriminatory;  whereas 

2.  Whereas  the  Communication  on  the  consultation  on  the  green  paper  on  the 
liberalization  of  telecommunications  infrastructure  and  cable  television  networks  has 
confirmed  the need for rules at Union level, in order to ensure that general  authorization 
and  individual  licensing  regimes  are based  on  the  principle  of  proportionality  and  are 
open, 
the  Council  Resolution  of 
18  September  1995  on  the  implementation  of  the  future  regulatory  framework  for 
telecommunications^  recognizes  as  a key  factor  for  this  regulatory  framework  in  the 
Union  the  establishment,  in  accordance  with  the  principle  of  subsidiarity,  of  common 
principles  for  general  authorizations  and 
the 
Member  States, based  on  categories  of  balanced  rights  and obligations;  whereas  those 
principles  should  cover  all  authorizations  which  are  required  for  the provision  of  any 
telecommunications  services  and  for  the  establishment  and/or  operation  of  any 
infrastructure  for  the  provision  of  telecommunications  services; 

licensing  regimes 

individual 

in 

( i) 

(-) 

(3) 

(4) 

(?) 

(6) 

(7) 

(S) 

OJ 
OJ 
OJ No C 213, 6.8.1993, p. 1. 
OJ No C 379, 31.12.1994, p. 4. 
OJ No C 150, 31.5.1993, p. 39. 
OJ No C 109, 1.5.1995, p. 310. 
OJ No C 151, 19.6.1995, p. 479. 
OJ No C 258, 3.10.1995, p. 1. 

11 

granted 

licences 

by  Member 

3.  Whereas  a  common  framework  should  be  established  for  general  authorizations 
and  individual 
of 
telecommunications  services;  whereas  under  Community  law  and  in  particular  under 
Commission  Directive  90/388/EEC of 28  June  1990 on  competition  in the markets  for 
telecommunications  services(9),  as last  amended  by  Directive  96/.../EC(10),  market  entry 
should  only  be  restricted  on the basis of objective,  transparent,  proportionate  and  non 
discriminatory  selection  criteria  relating  to the  availability  of  scarce  resources,  or  else 
on  the  basis  of  the  implementation  by  national  regulatory  authorities  of  objective, 
transparent  and non-discriminatory  award procedures;  whereas  that Directive  also  sets 
out principles  regarding  inter  alia  fees  and  rights  of  way;  whereas  these  rules  should 
be supplemented  and enlarged  by this Directive to determine this common  framework; 

States 

field 

the 

in 

4.  Whereas  conditions  attached  to  authorizations  are  necessary  in  order  to  attain  public 
interest  objectives  to  the  benefit  of  telecommunications  users,  such  as  requirements 
relating to consumer protection;  whereas according to Articles  52 and  59 of the Treaty, 
the legislative  scheme in the field of telecommunications  should  be consistent  with  the 
principles of freedom  of establishment and freedom  to provide services and should take 
into  account  the  need  to  facilitate  the  introduction  of  new  services  as  well  as  the 
widespread  application  of  technological  improvements;  whereas  therefore  general 
authorization  and individual  licensing  rsystems should  provide  for  the lightest  possible 
regulation  compatible  with  the  fulfilment  of  applicable  requirements;  whereas 
Member  States should not be required to introduce or maintain  authorization  schemes, 
in particular  where  the  provision  of  telecommunications  services  or  the  establishment 
and/or  operation  of  telecommunications  infrastructure  is  not,  at  the  date  of  entry  into 
force  of  this  Directive,  subject  to  such  authorization  scheme; 

5.  Whereas  this  Directive  therefore  will  make  a  significant  contribution  to  the  entry  of 
new operators  into  the  market,  as part of  the  development  of  the Information  Society; 

6.  Whereas  Member  States  may  define  and  grant  different  categories  of  authorization; 
whereas this should not prevent  undertakings, in particular  those established  in  another 
Member  State, from  determining their own commercial  strategies and, in particular, the 
type of telecommunications  services or infrastructures  that they wish to provide,  subject 
to  compliance  with  relevant  regulatory  obligations; 

7.  Whereas  in  order  to  facilitate  the  Community-wide  provision  of  telecommunications 
services, priority should be given to market access schemes not requiring  authorizations 
or relying on general  authorizations, to be supplemented  where necessary  by  individual 
licences  setting  out  conditions  for  those  elements  which  cannot  be  suitably  dealt  with 
by  general  authorizations; 

8.  Whereas  any  conditions  attached  to  authorizations  should  be  objectively  justified  in 
relation  to the  service  concerned,  and  should be non-discriminatory, proportionate  and 
transparent;  whereas  authorizations  should  not  impose  obligations  unrelated  to 
telecommunications  on the beneficiaries  of such  authorizations;  whereas  authorizations 
may be the means for  applying  conditions required by  Community  law, in particular  in 
the  area  of  Open  Network  Provision; 

9.  Whereas the harmonization  of conditions attached to authorizations  should  significantly 
facilitate  the  free  provision  of  telecommunications  services  in  the  Community; 

10.  Whereas any  fees imposed  on undertakings  as part of authorization  procedures  must be 

based  on  objective,  transparent  and  non-discriminatory  criteria; 

(9) 

OJ  No  L  192, 24.7.1990,  p.  10. 

00)  OJ  No L 

12 

11.  Whereas the introduction  of individual  licensing systems should be restricted to limited, 
pre-defined  situations;  whereas  Member  States  should  not  a priori  limit the number  of 
individual licences for any category of telecommunications services, except to the extent 
required  to  ensure  the  efficient  use of  radio  frequencies; 

12.  Whereas  Member  States  should  be  allowed  to  impose  specific  conditions  on 
undertakings  providing  public  telecommunications  networks  and  telecommunications 
services  because  of  their  market  power;  whereas  the  market  power  of  an  undertaking 
depends  on  a  number  of  factors  including  its  share  of  the  relevant  product  market  or 
service  market  in  the  relevant  geographical  market,  its turnover  relative  to  the  size of 
the market, its ability  to influence  market conditions, its control of the means of  access 
to  end-users, its  access to  financial  resources, and its  experience  in providing  products 
and  services  in  the  market;  whereas,  for  the  purpose  of  this Directive,  an  undertaking 
with  a  share  of  more  than  25%  of  a  particular  telecommunications  market  in  the 
geographical  area in a Member  State within  which  it is authorized  to operate  would be 
presumed  to  enjoy  significant  market  power,  unless  its  national  regulatory  authority 
determined,  in  accordance  with the Community  competition rules, that this was not the 
case; whereas, for an undertaking falling below this threshold  market share, the national 
regulatory  authority  may  nevertheless,  albeit  only  for  the  purposes  of  applying  the 
provisions  of  European  Parliament  and  Council  Directive  ....  on  interconnection  to 
public  telecommunications  networks  and  public  telecommunications  services  in  the 
context  of  Open  Network  Provision  (ONP)(11),  determine  that  the  undertaking  enjoyed 
significant  market  power; 

13.  Whereas  telecommunications  services  have  a  role  to  play  in  strengthening  social  and 
economic  cohesion,  inter  alia  by  furthering  the  achievement  of  universal  service,  in 
particular  in  remote,  peripheral,  landlocked  and  rural  areas  and  islands;  whereas 
Member  States  should  therefore  be allowed  to impose  universal  service  obligations by 
means  of  individual  licences; 

14.  Whereas  in  order  to  facilitate  the  granting  of  individual  licences  to  undertakings 
applying  for  such  licences  in  more  than  one  Member  State,  a  "one-stop-shopping 
procedure"  should  be  established; 

15.  Whereas  any  authorization  systems  should  defer  to  the  need  to  contribute  to  the 
establishment of trans-European telecommunications networks as envisaged in Title XII 
of the Treaty; whereas to this end coordination of national authorization procedures may 
prove  useful  for  undertakings  intending  to provide, a telecommunications  service  or to 
establish  and/or  operate  a  telecommunications  infrastructure 
in  more  than  one 
Member  State; 

16.  Whereas Community  undertakings should benefit  from  effective  and comparable  access 
to third  countries  markets and  enjoy  a similar treatment in a third  country  as is  offered 
by  the  Community  framework  to  undertakings  owned  directly  or  through  majority 
ownership,  or  effectively  controlled,  by  nationals  from  the  third  country  concerned; 
whereas  World  Trade  Organization  negotiations  on  telecommunications,  scheduled  to 
be  finished  in  April  1996,  should  result  in  a  balanced  and  multilateral  agreement 
ensuring  effective  and  comparable  access  for  Community  operators  in  third  countries; 

17.  Whereas  an  advisory  committee  should be  established  to  assist  the  Commission; 

18.  Whereas,  without  prejudice  to  other  procedures  available  to  ensure  the  application  of 
Community  law,  it  is  appropriate  to  provide  for  a  specific  procedure  in  order  to 
facilitate  the  implementation  of  the  principles  set  out  in  this  Directive; 

(ID  OJNo  L 

13 

19.  Whereas the functioning  of this Directive should be reviewed in due course; in the light 
of  the development  of  the telecommunications  sector  and of  trans-European  networks, 
as  well  as 
the  harmonization  and 
one-stop-shopping  procedures  set  out  in  this  Directive; 

light  of  experience  gained  from 

the 

in 

20.  Whereas  on  the  basis  of  the  full  implementation  of  a  competitive  framework,  in 
particular  Directive  90/388/EEC, in order  to  achieve the  essential  goal  of  ensuring  the 
development  of the internal  market in the field of telecommunications  and  specifically 
the  free  provision  of  telecommunications  services  and  infrastructure  throughout  the 
Community, the adoption of this Directive will substantially contribute to the attainment 
of  this  goal;  whereas  Member  States  should,  in  particular  through  their  national 
regulatory  authorities,  implement  this  common  framework, 

HAVE  ADOPTED  THIS  DIRECTIVE: 

SECTION  L SCOPE, DEFINITIONS  AND  PRINCIPLES 

Article  1 
Scope  and  aim 

This Directive concerns the procedures  associated  with the granting of authorizations  and the 
conditions  attached  to  such  authorizations,  for  the purpose  of providing  telecommunications 
services. 

1. 

For the  purposes  of  this  Directive, 

Article 2 
Definitions 

(a) 

"Authorization"'  means  any  "general  authorization"  or  "individual  licence"  as 
defined  below: 

"general  authorization":  permission  regardless  of  whether  it  is regulated  by 
a  "class  licence"  or  under  general  law  and  regardless  of  whether  such 
regulation 
to  provide 
telecommunications  services  and,  where  applicable,  to  establish  and/or 
operate  infrastructure  for  the  provision  of  such  services; 

registration,  allowing  undertakings 

requires 

"individual  licence":  an  authorization  which  is  granted  by  a  national 
regulatory  authority  and  which  gives  an  undertaking  operating  under  a 
general  authorization  specific  rights,  or  which  subjects  that  undertaking's 
operations  to  specific  obligations,  where  the  undertaking  is  not  entitled  to 
exercise  the  rights  concerned  until  it  has  received  the  decision  by  the 
national  regulatory  authority; 

(b) 

"National  regulatory  authority"'  means  the  body  or  bodies,  legally  distinct  and 
functionally  independent  of  the  telecommunications  organizations,  charged  by  a 
Member  State  with  the  granting  of,  and  supervision  of  compliance  with, 
authorizations. 

(c) 

"One-stop-shopping  procedure"  means  an  arrangement  facilitating  the  obtaining 
of  individual  licences  from  more  than  one  national  regulatory  authority  in  a 
coordinated  procedure  and  at  a single  location. 

14 

(d) 

(e) 

(f) 

(g) 

telecommunications  networks  or 

"Essential  requirements"  means  the  non-economic  reasons  in  the  public  interest 
which  may  cause  a  Member  State  to  impose  conditions  on  the  establishment 
the  provision  of 
and/or  operation  of 
telecommunications  services.  Those  reasons  are  limited  to  security  of  network 
operations, maintenance of network integrity, and, where justified,  interoperability 
of  services,  data  protection,  the  protection  of  the  environment  and  town  and 
country  planning objectives as well as the effective  use of the frequency  spectrum 
and 
radio-based 
telecommunications  systems and other technical  systems, whether  space-based  or 
terrestrial.  Data  protection  may  include  the  protection  of  personal  data,  the 
confidentiality  of  information  transmitted  or  stored,  and  also  the  protection  of 
privacy. 

interference 

avoidance 

between 

harmful 

the 

of 

"Telecommunications  services"  means  services  whose  provision  consists  wholly 
or  partly  in  the  transmission  and/or  routing  of  signals  on  telecommunications 
networks. 

"Public 
available  to  the  public. 

telecommunications  service"  means  a  telecommunications  service 

"Universal  service'  means  a  defined  minimum  service  or  set  of  services  of 
specified  quality  which  is  accessible  to  all  users  everywhere  and,  in  the  light  of 
specific  national  conditions,  at  an  affordable  price. 

2. 

Other  definitions  given 
[on  interconnection]  shall  apply,  where  relevant,  to  this  Directive. 

in  Council  Directive  90/387/EEC(12)  and  Directive 

Aiticle  3 
Principles  governing  authorizations 

1.  Where  Member  States  make  the provision  of  a telecommunications  service  subject  to 
an  authorization,  the  grant  of  such  authorization  and  the  conditions  to  be  attached 
thereto  shall  comply  with  the  principles  set  out  in  paragraphs  2  and  3. 

2. 

Authorizations  may  contain  only  the  conditions  listed  in  Annex  I. 

Moreover,  such  conditions  shall  be  objectively  justified  in  relation  to  the  service 
concerned,  non-discriminatory,  proportionate  and  transparent. 

3.  Member  States  shall  ensure  that  telecommunications  services  can  be  provided  either 
without  authorization,  or  on  the  basis  of  general  authorizations,  to  be  supplemented 
where  necessary  by  rights  and  obligations  requiring  an  individual  assessment  of 
applications  and  giving  rise  to  one  or  more  individual  licences.  Member  States  may 
require  an  individual  licence  only  where  the  beneficiary  is  given  access  to  scarce 
physical  and other  resources, or is subject  to particular  obligations or enjoys  particular 
rights,  in  accordance  with  the  provisions  of  Section  III. 

( i 2) 

OJ  No  L  192, 24.7.1990,  p.  1. 

15 

SECTION  IL  GENERAL AUTHORIZATIONS 

Article 4 
Conditions  attached  to  general  authorizations 

1.  Where Member  States subject  the provision of telecommunications  services to general 
authorizations,  the  conditions  which  where  justified,  may  be  attached  to  such 
authorizations  as set out in Annex I, points 2 and 3. Such authorizations  shall  entail the 
least  oneroussystem  possible  consistent  with  enforcing 
the  relevant  essential 
requirements  and other public interest requirements  set out in Annex I, points  2 and 3. 

2.  Member  States  shall  ensure  that  the  conditions  attached  to  general  authorizations  are 
published in an appropriate manner so as to provide easy access to that information  for 
interested  parties. Reference  to the publication  of this information  shall be made in the 
national  official  gazette  of  the  Member  State  concerned. 

3.  When amending the conditions attached to a general authorization, Member States shall 
give  appropriate  notice  of  their  intention  to  do  so  and  enable  interested  parties  to 
express  their  views  on  the  proposed  amendments. 

Article  5 
Procedures  for  general  authorizations 

1.  Member  States  shall  not  prevent  an  undertaking  which  complies  with  the  applicable 
conditions  set  out  in  a  general  authorization  in  accordance  with  Article  4  from 
providing  the  intended  telecommunications  service. 

2.  Member  States may  require that, before  providing  the telecommunications  service, the 
undertaking  enjoying  the  general  authorization  shall  notify  the  national  regulatory 
authority  of its intention to do so, and shall communicate the information  relating to the 
service  concerned  which  is necessary  for  the purpose  of  ensuring  compliance  with  the 
applicable  conditions  set  out  in  accordance  with  Article  4.  The  undertaking  may  be 
required  to  observe  a  waiting  period  not  exceeding  two  weeks  before  it  may  start 
providing  the  services  covered  by  the  general  authorization. 

3.  Where  the  undertaking  enjoying  a  general  authorization  does  not  comply  with  a 
condition  set  out  in  a general  authorization  in  accordance  with  Article  4, the  national 
regulatory  authority may inform the undertaking concerned that it is not entitled to avail 
itself  of  the  general  authorization.  The  national  regulatory  authority  shall  give  the 
undertaking  concerned  a reasonable opportunity  to state its views on the application  of 
the  conditions  and  to  remedy  any  breaches.  If  the  undertaking  concerned  does  not 
remedy  the  breaches,  the  national  regulatory  authority  shall  confirm  its  decision  and 
state the reasons  for  its decision,  which  shall  be  communicated  within  one  week  of  its 
adoption  to the  undertaking  concerned.  Member  States  shall  lay  down  a procedure  for 
appealing against such a decision to an institution independent of the national  regulatory 
authority. 

4.  Member  States  shall  ensure  that  information  concerning  the  procedures  relating  to 
general  authorizations  is  published  in  an  appropriate  manner,  so  as  to  provide  easy 
access  to  that  information.  Reference  to  the  publication  of  this  information  shall  be 
made  in the  national  official  gazette  of  the Member  State  concerned. 

Article 6 
Fees  for  general  authorizations 

1.  Member  States  shall  ensure  that  any  fees  imposed  on  undertakings  as  part  of  the 
authorization  procedures  seek  only  to  cover  the  administrative  costs  incurred  in  the 
implementation  of  the  general  authorization  scheme. 

16 

2. 

Fees, the criteria upon which they are based and any changes thereto, shall be published 
in  an  appropriate  and  sufficiently  detailed  manner,  so  as to be  readily  accessible. 

SECTION  m.  INDIVIDUAL LICENCES 

Article 7 
Scope 

1.  Member  States may, in addition to conditions attached to general authorizations  for the 
telecommunications  services, including  those  services  mentioned  in  Annex II,  require 
individual  licences  imposing  conditions  as listed  in  Annex I, point  4, but only  for  the 
following  purposes: 

(a) 

to  allow the  licensee  access to  specific  radio  frequencies  or  numbers; 

(b) 

(c) 

(d) 

(e) 

to  give  the  licensee  particular  rights  with  regard  to  access  to  public  or  private 
land; 

to  grant  the  licensee  rights  to  provide  public  telecommunications  infrastructure 
between  the  Community  and third  countries; 

to  impose  obligations  on  the  licensee  relating  to  the  mandatory  provision  of 
public  telecommunications  services; 

to impose specific  obligations, in conformity  with Community  competition  rules, 
where  the  licensee  has  significant  market  power  in  relation  to  the  provision  of 
public  telecommunications  networks  and telecommunications- services. 

Undertakings  wishing  to  provide  services  which  are  not  yet  covered  by  a  general 
authorization  and which cannot be provided  without authorization, or wishing to  enjoy 
additional  rights not granted  by the  applicable general  authorization,  may  apply  for  an 
individual  licence. 

In  the  situations  addressed  in  paragraph  2 Member  States shall, as rapidly  as possible, 
either  consent  to  the  provision  of  the  service  concerned  or  the  establishment  and/or 
operation of infrastructure  concerned without authorization, or grant the relevant general 
authorizations  in  accordance  with  Section  II. 

2. 

3. 

Aiticle  8 
Conditions  attached  to  individual  licences 

1. 

The  conditions  which  may,  where justified,  be  attached  to  individual  licences  are  set 
out  in  Annex  I, point  4. 

Such conditions shall relate only  to the situations justifying  the grant of  such a licence, 
as defined  in  Article  7. 

However,  Member  States  may  incorporate  the  terms  of  the  applicable  general 
authorizations  in the  individual  licence. 

2. 

The  rights  given  under  and  the  conditions  attached  to  any  general  authorizations  must 
not  be  varied  by  the  granting  of  an  individual  licence,  except  in  objectively  justified 
cases  and  in  a proportionate  manner. 

3.  Member  States  shall  ensure  that  information  concerning  the  conditions  which  will  be 
attached  to  any  individual  licence  are  published  in  an  appropriate  manner,  so  as  to 
provide  easy  access to that  information.  Reference  to the publication  shall  be  made  in 
the  national  official  gazette  of  the Member  State  concerned. 

17 

Aiticle  9 
Procedures  for  the  granting  of  individual  licences 

1.  Where  a  Member  State  grants  individual  licences,  it  shall  ensure  that  information 
concerning the procedures for individual licences is published in an appropriate manner, 
so as to be readily accessible. Reference to the publication  shall be made in the national 
official  gazette  of the Member  State  concerned. 

2. 

In  the  situations  addressed  in  Article  7(2),  Member  States  shall  grant  an  individual 
licence  before  completing  the procedure  set out  in  paragraph  1 of  this  Article. 

3.  Where  a Member  State  intends  to  grant individual  licences: 

it  shall  grant  individual  licences  through  open,  non-discriminatory,  transparent 
procedures  and,  to  this  end,  shall  subject  all  applicants  to  the  same  procedures, 
unless there  is  an  objective  reason  for  differentiation;  and 

it shall  set reasonable time limits; inter  alia it shall  communicate to the  applicant 
a decision  on the application  as soon as possible but not later than  six weeks  after 
it has  received  the  application. 

4.  Without prejudice to Article  10(1), any undertaking which fulfils  the conditions  decided 
and  published  by  Member  States  in  accordance  with  the  relevant  provisions  of  this 
Directive  shall  be  entitled  to  receive  an  individual  licence. 

5.  Where the beneficiary  of an individual licence does not comply with a condition set out 
in the licence in accordance  with the relevant  provisions  of this Directive, the  national 
regulatory  authority  may  withdraw  or  suspend  the  individual  licence.  The  national 
regulatory  authority  shall  give  the  undertaking  concerned  a reasonable  opportunity  to 
state its views on the  application  of the  conditions  and to  remedy  any  breaches. If  the 
undertaking  concerned  does not  remedy the breaches, the national  regulatory  authority 
shall  confirm  its decision  and  state the reasons therefor,  which  shall  be  communicated 
within  one  week  of  its  adoption  to the  undertaking  concerned. 

6.  Member  States  refusing  to  grant,  or  withdrawing  or  suspending  an  individual  licence 
shall state the reasons therefor.  Member States shall lay  down an appropriate  procedure 
for  appealing  against  such  refusals,  withdrawals  or  suspensions  to  an  institution 
independent  of  the national  regulatory  authority. 

Article  10 
Limitation  on  the number  of  individual  licences 

1.  Member  States  may  a priori  limit  the  number  of  individual  licences  for  any  category 
of  telecommunications  services, only  to  the extent  required  to  ensure the  efficient  use 
of  radio  frequencies  and  in  conformity  with  Community  competition  rules. 

2.  Where  a Member  State  intends  to  limit  the  number  of  individual  licences  granted,  it 

shall: 

give  due  weight  to  the  need  to  facilitate  the  development  of  competition  and  to 
maximize  benefits  for  users; 

enable  interested  parties  to  express their  views  on  any  limitation; 

publish  its decision to limit the number of  individual  licences, stating the  reasons 
therefor; 

review  the  limitation  at  reasonable  intervals; 

invite  applications  for  licences. 

18 

3.  Member  States  shall  grant  such  individual  licences  on  the  basis  of  selection  criteria 
which  must  be  objective,  detailed,  transparent,  proportionate  and  non-discriminatory. 
Any  such  selection  must  give  due  weight  to  the need  to  facilitate  the  development  of 
competition  and  to  maximize  benefits  for  users. 

Member  States  shall  ensure  that  information  on  such  criteria  is  published  in  an 
appropriate  manner,  so  as  to  be  readily  accessible.  Reference  to  the  publication  shall 
be  made  in  the  national  official  gazette  of  the  Member  State  concerned. 

4.  Where  a Member  State  finds,  either  on  its own  initiative  or  following  a request by  an 
undertaking,  either  at  the  time  of  entry  into  force  of  this  Directive  or  at  a  later  time, 
that  the  number  of  individual  licences  can  be  increased,  it  shall  publish  this  fact  and 
invite  applications  for  additional  licences. 

Article  11 
Fees  for  individual  licences 

Member  States  shall  ensure  that  any  fees  imposed  on  undertakings  as  part  of  authorization 
procedures  seek  only  to  cover  the  administrative  costs incurred  in the implementation  of  the 
applicable  individual  licence.  Fees, the  criteria  upon  which  they  are based  and  any  changes 
thereto,  shall  be  published  in  an  appropriate  and  sufficiently  detailed  manner,  so  as  to  be 
readily  accessible. 

In  addition,  where  resources  are  scarce,  Member  States  may  allow  their  national  regulatory 
authorities to  impose, in  a non-discriminatory  manner,  a fee  for  the granting  of  an individual 
licence.  This  fee  shall  reflect  the  need  for  the optimal  use of this  resource  as well  as for  the 
introduction  and  the  development  of  innovative  services  and  competition. 

SECTION  IV.  PROVISION  OF TELECOMMUNICATIONS  SERVICES 
THROUGHOUT THE COMMUNITY 

Article  12 
Principle 

Member  States  shall,  in  the  formulation  and  application  of  their  authorization  systems, 
facilitate  the  provision  of  telecommunications  services  between  Member  States. 

Article  13 
Coordination  of  authorization  procedures 

1. 

An  undertaking  intending  to  provide  a  telecommunications  service  or  to  establish  a 
telecommunications  infrastructure  in  more  than  one  Member  State  may  request  the 
national  regulatory  authorities  concerned to coordinate their  authorizations  procedures 
in  order  to  issue  the necessary  authorizations  on  substantially  the  same  conditions. 

2.  Where the undertaking concerned is unable to obtain the necessary authorizations in one 
or  more  of  those  Member  States  within  the  time  periods  set  out  in  this  Directive,  or 
where  significant  variations  appear  between  the  authorization  conditions  in  these 
Member  States, the  procedure  described  in  paragraphs  3 and  4  shall  be  available. 

3. 

The  undertaking  concerned  may  refer  the  matter  to  the  committee  provided  for  in 
Article  16. 

19 

Where that committee finds that there is a case for further  examination, it shall  convene 
as soon  as possible a working  group  including  at least two members of that  committee 
and  one  representative of  the  national  regulatory  authorities  concerned.  The  working 
group  shall  set out  its position  within  three  months. 

4. 

The  position  agreed  according  to  the  procedure  set  out  in  paragraph  3  shall  form  the 
basis  of  a solution  to be  implemented  by  the Member  State concerned,, without  delay. 
If  no  agreed  position  is  reached,  or  if  an  agreed  position  is not  implemented  within  a 
reasonable time which shall not, except in justified  cases, exceed two months, measures 
to  resolve  the  issue  shall  be  taken  in  accordance  with  the  procedure  set  out  in 
Article  17. 

Article  14 
Harmonization 

1.  Without  prejudice  to  the  right  of  Member  States  to  authorize  additional  services, 
Member  States shall ensure that the categories of telecommunications  services listed in 
Annex  II  can  be  provided  either  without  authorization,  or  on  the  basis  of  a  general 
authorization. 

2.  Wherever necessary, the conditions attached to general  authorizations for the provision 
of  the  telecommunications  services  listed  in  Annex  II, the procedures  for  the  grant  of 
general  authorizations  and  individual  licences,  and  the  setting  of  fees  shall  be 
harmonized. 

The harmonization  of conditions  and procedures  shall  aim to develop the least  onerous 
system  possible  consistent  with  ensuring  compliance  with  the  relevant  essential 
requirements  and other public  interest  requirements  set out in Annex I, points  2 and 3. 

Harmonization  shall furthermore  aim to establish balanced sets of rights and obligations 
for  the  undertakings  enjoying  authorizations. 

3. 

The Commission shall, in accordance with the procedure laid down in Article  17, award 
mandates to  CEPT/ECTRA, CEPT/ERC or other  relevant harmonization  bodies.  These 
mandates  shall  define  the  tasks  to  be  performed  and  the  categories  of  general 
authorizations  to be  harmonized,  and  lay  down  a time  schedule  for  the preparation  of 
harmonized  conditions and procedures. A decision  shall be adopted in accordance  with 
the  procedure 
in  relation  to  Article  17,  stating  that  the  relevant 
telecommunications  services  can  be  provided  on  the  basis  of  a  harmonized  general 
authorization. 

laid  down 

4. 

The  provisions  of  paragraph  3  shall  lapse  on  1 January  2001, unless  the  Commission 
has  proposed  to  maintain  or  to  modify  it  in  the  report  referred  to  in  Article  22. 

Article  15 
One-stop-shopping  procedure  for  individual  licences 

1 . 

The  Commission  shall  undertake  the  necessary  steps to  provide  for  the  operation  of  a 
one-stop-shopping  procedure  for  individual  licences,  including  suitable  arrangements 
for  its  technical  administration,  in  accordance  with  the  procedure  laid  down  in 
Article  17. References  to  such  arrangements  will  be  published  in  the  Official  Journal 
of  the  European  Communities. 

2. 

The  one-stop-shopping  procedure  shall  conform  to  the  following  conditions: 

(a) 

It  shall  be  open  to  all  service  providers  wishing  to  operate  telecommunications 
services  in  the  Community. 

20 

(b)  The  submission  of  applications  and/or  declarations  at  a  single  location  in  the 
Community  shall be possible and one or more bodies shall be designated to which 
the  applications  and/or  declarations  can be  presented.  Applications  may  include, 
where required, requests for  frequency  coordination  and  site clearance  and/or  for 
allocation  and  registration  of  names, numbers  or  addresses. 

(c)  Within  seven days of formal  receipt, the application(s)  and/or declaration(s)  shall 
be supplied to the national regulatory  authorities concerned, by the body to which 
the  application  was  presented. 

(d)  The  national  regulatory  authorities  concerned  shall  take  a  decision  on  the  grant 
of the licence within six weeks after they have received the application; they  shall 
inform  both  the  applicant  and  the  body  to  which  the  relevant  application  was 
presented  of  that  decision  within  one  week  of  receipt  of  the  application. 

(e)  Where  possible,  national  regulatory  authorities  shall  endeavour  to  shorten  the 
period  of  six weeks indicated  in paragraph  (d)  for  certain  categories  of  services, 
in  response  to  commercial  needs. 

(f)  • Article 9 shall apply to applications for  individual  licences made by means of the 

one-stop-shopping  procedure. 

(g)  The  body  with  which  the  applications  and/or  declarations  may  be  filed  shall 
report  annually  to  the  Commission  on  the  operation  of  the  one-stop-shopping 
procedure, including information  on refusals  of applications  and objections  raised 
to  declarations. 

SECTION V.  EUROPEAN  UNION  TELECOMMUNICATIONS  COMMITTEE (EUTC) 

Article  16 
Estblishment  of  the  EUTC 

The  Commission  shall  be  assisted  by  a  committee  of  an  advisory  nature  composed  of 
representatives  of  the national  regulatory  authorities  of  the Member  States  and  chaired  by  a 
representative  of  the  Commission.  The  Committee  shall  be  called  the  European  Union 
Telecommunications  Committee  (hereinafter  referred  to  as  "the  Committee"). 

Article  17 
Procedures  for  the  EUTC 

1. 

The  representative  of  the  Commission  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, 
if  necessary  by  taking  a vote. 

The opinion  shall be recorded  in the minutes; in addition  each Member  State shall have 
the  right  to  ask  to  have  its position  recorded  in the  minutes. 

The  Commission  shall  take  the  utmost  account  of  the  opinion  delivered  by  the 
Committee.  It  shall  inform  the committee  of the manner  in  which  its opinion  has been 
taken  into  account. 

2. 

The  Commission  shall  where  necessary  inform  the  Committee  on  the  outcome  of 
regular  consultations  with  the  representatives  of  telecommunications  organizations, 
users,  consumers,  manufacturers,  service  providers  and  trade  unions. 

21 

addition, 

the  Committee 

the  Community's 
In 
telecommunications  policy, 
the 
Member  States  and  between  the Member  States  and the  Commission,  on the  situation 
and 
the  authorization  of 
telecommunications  services. 

the  development  of  regulatory  activities  regarding 

taking 
the  exchange  of 

information  between 

account  of 

foster 

shall, 

SECTION  VL  GENERAL AND  FINAL PROVISIONS 

Article  18 
Third  countries 

1.  With  a view to  ensuring  effective  and  comparable  access to third  countries  markets  to 
the benefit  of  Community  undertakings, Member  States  shall  inform  the  Commission 
of  any  general  difficulty  encountered,  de jure or de facto, by Community  undertakings 
in  obtaining  authorizations  and  in  operating  under  authorizations  in  third  countries, 
which  has  been  brought  to  their  attention.  Member  States  and  the  Commission  shall 
ensure  that  commercial  confidentiality  is  respected. 

2.  Whenever the Commission  establishes that a third country  is not providing  Community 
undertakings  with  rights  to  authorizations  which  are  comparable  to  those  which  the 
Community grants to undertakings from that third country, the Commission may submit 
proposals  to  the  Council  for  the  appropriate  mandate  to  negotiate  with  a  view  to 
obtaining  comparable  rights  for  Community  undertakings. The Council  shall  decide by 
qualified  majority. 

3. 

In  the  circumstances  set out  in paragraph  2, the  Commission  may  at  any  time  propose 
that the Council  exempt one or more Member States from  obligations laid down by this 
Directive  in  relation  to  undertakings  from  that  third  country.  The  Commission  may 
make  such  a  proposal  on  its  own  initiative  or  at the  request  of  a Member  State.  The 
Council  shall  act  by  qualified  majority  as soon  as possible. 

4.  Measures  taken  pursuant  to  paragraphs  1,  2  and  3  shall  be  without  prejudice  to 
Community  obligations  under  any  international  agreement  governing the  liberalization 
of  telecommunications  networks  and  services. 

Article  19 
Confidentiality 

The  Commission  and  the  national  regulatory  authorities  shall  not  disclose  any 
information  covered  by  the  duty  of  professional  secrecy. 

The provisions of paragraph  1 shall not prevent publication  of information  on licensing 
conditions  which  does  not  include  information  of  a confidential  nature. 

Article  20 
Notification 

In  addition 
Member  States  shall  supply  the  Commission  with  the  following  information: 

information  already  required  under  Directive  90/388/EEC, 

to  the 

1. 

2. 

1. 

the names  and addresses of the national  authorities and bodies  competent to issue 
national  authorizations; 

all  information  on  national  authorization  regimes,  including  conditions  and 
procedures,  in  particular  whether  and  for  which  services  individual  licences  are 
required,  and  the  criteria  on  the  basis  of  which  applications  are  assessed; 

general national provisions specifically  relevant in the area of telecommunications 
services. 

22 

2.  Member  States  shall  notify  any  changes  in  respect  of  the  information  supplied  under 

paragraph  1, within  two  weeks  of  their  entry  into  force. 

3. 

At the request of a Member  State or on its own initiative the Commission  shall  examine 
any  conditions,  criteria  and/or  procedures  set  out  in  a  national  authorization,  in 
particular with regard to the justifiability  of the measures and their compliance with the 
principle  of  proportionality.  The  Commission  shall,  within  one  month  of  receipt  of  a 
request  and  following  the  procedure  set  out  in  Article  17,  decide  whether  the 
Member  State may continue to apply the measure. The Commission  shall  communicate 
its  decision  to  the  Council  and  to the Member  States. 

Article 21 
Authorizations  existing  at the  date of  entry  into  force  of  this  Directive 

Member  States shall  make all necessary  efforts  to bring  authorizations  in force  at the  date of 
entry  into  force  of  this  Directive  into  line  with  its  provisions  before  1  January  1999. 
Obligations  which  have  not  been  brought  into  line  by  that  date  with  the  provisions  of  this 
Directive  shall  be  inoperative.  Where  justified,  Member  States  may  be  granted  by  the 
Commission,  upon  request,  a deferment  of  the provisions  of this  Article. 

Article  22 
Review  Procedures 

1. 

2. 

Any  amendments  necessary  to  adapt  the content  of  the  Annexes  to new  technological 
developments  and  appropriate  practical  procedures  shall  be  determined  in  accordance 
with  the procedure  laid  down  in  Article  17. 

Before  1  January  2000  the  Commission  will  review  whether  an  amendment  of  the 
provisions  of  this Directive  is necessary,  on the basis  of  a report  to  be  supplied  to  the 
European  Parliament  and Council. The report  shall include  an assessment,  on the  basis 
of  the  experience  gained,  of  the  need  for  further  development  of  the  regulatory 
structures  as  regards  authorizations,  in  particular  in  relation  to  harmonization  and  to 
trans-European  services  and  networks. 

3. 

Before  1  January  1999  the  Commission  shall  report  on  the  possibilities  of  access 
by  Community  undertakings 
in  third  countries. 
If  appropriate,  the  Commission  may  submit  proposals  as mentioned  in  Article  18. 

to  telecommunications  markets 

Article  23 
Deferment 

Where  Member  States  with  less  developed  networks  make  use  of  the  deferment  they  have 
been  granted  in  conformity  with  Directive  90/388/EEC  with  regard  to  the  obligation  to 
remove  special  or  exclusive  rights  in  relation to voice telephony  and the provision  of  public 
telecommunications  networks,  in order  to  achieve the necessary  structural  adjustments,  such 
Member  States  shall  be  granted  upon  request  a similar  deferment  for  the  application,  to  the 
provision  of  voice  telephony  and  public  telecommunications  networks,  of  the  provisions  of 
Articles  7(1),  10(1)  and  21  of  this  Directive. 

23 

Where  Member  States  with  very  small  networks  make  use  of the  deferment  they  have  been 
granted  in  conformity  with  Directive  90/388/EEC  with  regard  to  the  obligation  to  remove 
special  or  exclusive  rights  in  relation  to  voice  telephony  and  the  provision  of  public 
telecommunications  networks, in order to  achieve the necessary  structural  adjustments,  such 
Member  States  shall  be granted  upon  request  a  similar  deferment  for  the  application,  to  the 
provision  of  voice  telephony  and  public  telecommunications  networks,  of  the  provisions  of 
Articles  7(1),  10(1)  and  21  of  this  Directive. 

Article  24 
Implementation  of  the  Directive 

1.  Member  States shall bring into force the laws, regulations and administrative provisions 
necessary to comply with this Directive by  1 July  1997. They  shall immediately  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  notify  to  the  Commission  a  list  of  representatives  to  the 
European  Union  Telecommunications  Committee  not  later  than  two  months  after 
publication  of  this Directive. 

Article  25 
Entry  into  force 

This Directive  shall  enter into  force  on the twentieth  day  following  that  of  its publication  in 
the  Official  Journal  of  the European  Communities. 

This Directive  is  addressed  to  the  Member  States. 

Article  26 
Addressees 

Done  at Brussels, 

For  the  European  Parliament 
The  President 

For  the  Council 
The  President 

24 

CONDITIONS  THAT MAY  BE ATTACHED  TO AUTHORIZATIONS 

ANNEX  I 

1. 

that 

conditions 

Any 
comply  with 
to 
Commission  Directive  90/388/EEC(1)  and  its  amendments,  in  particular  the  amending 
Directive  94/46/EEC(2), 
amending 
Directive  95/.../EEC(4)  and  the  amending  Directive  95/.../EEC(5). 

amending  Directive  95/.../EEC(3), 

authorizations  must 

attached 

the 

the 

are 

2. 

Conditions that may be attached to all authorizations, where justified and subject to the 
principle  of  proportionality 

2.1.  Conditions  aiming  at  ensuring  compliance  with  relevant  essential  requirements. 

2.2.  The provision  of information  reasonably  required to verify  compliance with  applicable 

conditions. 

3. 

Specific  conditions  that may be attached to general authorizations  for the provision of 
public telecommunications services, and of infrastructure used for the provision of such 
services, where justified  and subject to the  principle  of  proportionality 

3.1.  Conditions  related  to  the  protection  of  users,  as  set  out  in  the  directive  on  the 
application of open network provision to voice telephony(6) and, subject to part  1 of this 
Annex,  to  the  protection  of  consumers,  in  particular  in  relation  to: 

prior  approval by national regulatory  authority of the standard consumer  contract, 

provision  of  detailed  and  accurate  billing, 

provision  of  a  dispute  settlement  procedure, 

publication  and  adequate notice of change of access  conditions, including  tariffs, 
quality  and  availability  of  service. 

(i) 

(2) 

(3) 

(4) 

(5) 

(6) 

in  particular  with  regard 

Commission  Directive 90/388/EEC regarding the implementation  of full  competition in 
telecommunications  markets,  OJ No  L  192,  24.7.1990,  p.  10. 
Commission  Directive  of  13  October  1994  amending  Directive  88/301/EEC  and 
Directive  90/388/EEC 
to  satellite  communications, 
OJ No  L  268,  19.10.1994, p.  15. 
Commission Directive of  18 October  1995 amending Directive 90/388/EEC with regard 
to  the  abolition  of  the  restrictions  on  the  use  of  cable  television  networks  for  the 
provision  of  already  liberalized  telecommunications  services,  C(95)  2422  final. 
Draft  Commission  Directive amending Commission  Directive  90/388/EEC  with  regard 
to  mobile  and  personal  communications,  OJ No  C  197,  1.8.1995, p. 5. 
Draft Commission Directive amending Commission Directive 90/388/EEC regarding the 
implementation  of  full  competition  in  telecommunications  markets,  OJ  No  C  263, 
10.10.1995, p. 6. 
Commission's  proposal  for  a  Directive  on  the  application  of  the  principles  of  open 
network  provision  to  voice  telephony,  COM(94)  689  final,  OJ  No  C  122,  18.5.1995, 
p.  4,  and  Council  common  position  of  12 July  1995  on  that  proposal. 

25 

3 2  Financial  contribution  to the provision  of  universal  service,  according to the  Directive 

' 

• 

(7) 
on  interconnection' '. 

3.3.  Communication  of  customer  database  information  necessary  for  the  provision  of 

universal  directory  information. 

3.4.  Provision  of  emergency  services. 

3.5.  Special  arrangements  for  disabled  people. 

3.6.  Conditions  relating  to  interconnection,  according  to  the  directive  on  interconnection^ 

and to  obligations  of  Community  law, 

3.7.  Conditions related to the achievement of public interest requirements recognized  by the 
EC Treaty  and, in particular,  Articles 36 and  56 of that  Treaty,  specifically  in  relation 
to public  morality  and  public  security. 

4. 

Specific  conditions  that  may  be  attached  to  individual  licences,  where  justified  and 
subject to  the  principle  of  proportionality 

4.1.  Specific  conditions  linked  to  the  allocation  of  numbering  rights  (compliance  with 

national  numbering  schemes...). 

4.2.  Specific  conditions  linked  to  the  allocation  of  specific  radio  frequencies. 

4.3.  Specific  environmental  and specific town  and country  planning requirements, linked to 

the  use  of  scarce  resources. 

4.4.  Maximum  duration,  only  in  order  to  ensure  the  efficient  use  of  radiofrequencies,  and 
without  prejudice  to  other  provisions  concerning  the  withdrawal  or  the  suspension  of 
licences. 

4.5.  Provision of universal service obligations according to the directives on  interconnection 
and on the application  of the principles of open network provision to voice telephony(9). 

4.6.  Conditions  applied  to  operators  having  a  significant  market  position,  as  notified  by 
the  directive  on  interconnection00*,  aiming  at  ensuring 

Member  States  under 
interconnection  or  specific  monitoring  requirements. 

(7) 

m 

(9) 

(10) 

Commission  proposal  for  a Directive on interconnection  to public  telecommunications 
networks  and  public  telecommunications  services  in  the  context  of  Open  Network 
Provision  (ONP),  adopted  by  the  Commission  on  19 July  1995, not yet  published. 
Commission  proposal  for  a Directive on interconnection  to public  telecommunications 
networks  and  public  telecommunications  services  in  the  context  of  Open  Network 
Provision  (ONP),  adopted  by  the  Commission  on  19 July  1995, not yet  published. 
Commission  proposal  for  a Directive  on interconnection  to public  telecommunications 
networks  and  public  telecommunications  services  in  the  context  of  Open  Network 
Provision  (ONP),  adopted  by  the  Commission  on  19  July  1995,  not  yet  published. 
Commission's  proposal  for  a  Directive  on  the  application  of  the  principles  of  open 
network  provision  to  voice  telephony,  COM(94)  689  final,  OJ No  C  122,  18.5.1995, 
,p.  4,  and  Council  common  position  of  12 July  1995  on  that  proposal. 
Commission  proposal  for  a Directive on  interconnection  to public  telecommunications 
networks  and  public  telecommunications  services  in  the  context  of  Open  Network 
Provision  (ONP),  adopted  by  the  Commission  on  19 July  1995, not yet  published. 

26 

4.7.  Provision of information on ownership in other companies, where the procedure set out 

in Article  18(3)  is in operation. 

4.8.  Requirements  related  to  quality,  availability  and  permanence  of  the  service  or  the 
network, including the financial,  managerial  and technical  competence of the applicant 
and conditions  setting  a minimum  period of operation. 

4.9.  Defence  related requirements. 

This  list  of  conditions  shall  be  without  prejudice  to  the  specific  rules  adopted  by 
Member  States in accordance with Community law and concerning the content of audio-visual 
programmes intended for the general public. 

27 

ANNEX  H 

SERVICES  TO BE COVERED  BY  GENERAL AUTHORIZATIONS 

1. 

2. 

3. 

4. 

Bearer  data  services,  including  fixed  packet-  or  circuit-switched  data  services  offered 
to  the  public. 

Other fixed telecommunications services other than voice telephony for the public, telex 
and  bearer  data  services,  including: 

value-added  data transmission  services,  such  as telefax  services,  X.400  services 
(message  handling  systems), X.500  services  (global  electronic  directory); 

value-added voice transmission  services, such as storage and voice-mail  services, 
E-mail  services, audiotex and télétex services, video-conferencing,  re-forwarding 
of  messages  via PSTN  (private  switching), video-phones,  enquiries; 

premium rate services, such as shared cost, shared revenue or freephone  services, 
calling  cards; 

voice  telephony  provided  to  closed  user  groups. 

Satellite  personal  communication  services  (S-PCS). 

Satellite  network  and  communication  services  other  than  S-PCS,  including  very  small 
aperture  terminal,  satellite  news  gathering  and  mobile  satellite  services. 

5.  Mobile  communications. 

6. 

7. 

Voice  telephony  for  the public. 

Leased  lines. 

The  general  authorizations  covered  by  this  list  of  services  shall  be  without  prejudice  to  the 
specific  rules adopted by Member  States in accordance  with Community  law and  concerning 
the  content  of  audiovisual  programmes  intended  for  the  general  public. 

28 

FINANCIAL  STATEMENT 

1. 

TITLE OF ACTION 

European  Parliament  and  Council  Directive  on  a  common  framework 
authorizations  and  individual  licences  in the field of  telecommunications  services. 

for  general 

2. 

BUDGET LINE 

A-2510 

Expenditures on meetings of Committees whose consultation is compulsory in the 
procedure  for  drafting  Community  legislation. 

3. 

LEGAL BASIS 

Articles  57(2),  66  and  100a of  the  Treaty  establishing  the European  Community. 

4. 

DESCRIPTION 

4.1  General  objective  of  the  action 

The Directive aims at establishing  a common framework  for the granting of authorizations in 
the  field  of  telecommunications  services,  both  for  national  applicable  procedures  and  for 
conditions  that  can  be  attached  to  such  authorizations. 

4.2  Duration  and  renewal 

The  duration  of  the  action  is,  in  principle,  not  limited.  However,  the  provisions  of 
paragraph  14(3)  of  the Directive  (dealing  with  the  possibility  for  the  Commission  to  assign 
harmonization  mandates  to  relevant  bodies)  will  lapse  on  1  January  2001,  unless  the 
Commission proposes to maintain or to modify  it in the report referred  to in Article  22 of the 
Directive. 

As  regards  the  annexes,  any  modifications  necessary  to  adapt  them  to  new  technological 
developments  shall  be  made  in  accordance  with  the  comitology  procedure  laid  down  in 
the 
Article  17  of  the  Directive,  involving 
European  Union  Telecommunications  Committee. 

the  Commission  with  the  assistance  of 

5. 

CLASSIFICATION  OF THE EXPENDITURE 

5.1  Non  Obligatory  Expenditure 

5.2  Dissociated  Credits 

6. 

NATURE OF OPERATIONAL  SPENDING 

No  intervention  credits. 

The  Community's  financial  contribution  will  cover  costs  incurred  by  participants  at  the 
meetings  of the  committee  established  by  the Directive  and  of  the  working  groups  involved 
in coordination  of  authorizations  procedures  (Article  13 of the Directive). It is not  envisaged 
to  recruit  additional  staff. 

The  Directive  establishes  a  committee,  called  the  European  Union  Telecommunication 
Committee  (EUTC)  in order to  assist the Commission- in the application  of the principles  set 
up  by  the Directive  for  market  access  and  for  the  granting  of  authorizations. 

29 

7. 

ANTI-FRAUD  PROVISIONS 

For  each  meeting  mentioned  in point  9.3, the  secretary  of the  meeting  will  complete  the  list 
of  participants  and  verify  the  travelling  documents  for  reimbursement. 

8. 

ELEMENTS  OF COST-EFFICIENCY  ANALYSIS 

8.1.  Specific  and  quantifiable  objectives,  population  aimed  at by  the  action 

The Directive establishes a common  framework  for the granting of authorizations  in the field 
of telecommunications services, both for national applicable procedures and for conditions that 
can be  attached to  such  authorizations. It will  ensure that wherever possible priority  is given 
to the  lightest  possible  regimes. 

The  Directive  directly  concerns  undertakings  providing  telecommunications  services  on  the 
territory  of  the  European  Union  or  establishing  and/or  operating  infrastructure  for  the 
provision  of  these  services. 

8.2  Justification  of  the  action 

With  the  full  liberalization  of  the  telecommunications  sector  in  1998  (with  possible 
transitional periods for  some Member  States), a framework  for  the granting of  authorizations 
in the field  of telecommunications  services is necessary.  This framework  will have to  ensure 
that authorizations, which in  most cases will be the appropriate means of monitoring  markets 
and  implementing  certain  public  service  objectives,  are  not  imposing  an  undue  burden  on 
operators and are proportionate, transparent  an non-discriminatory.  It is necessary  to build up 
such  a framework  at  a Union  level. 

In  order  to  assist  the  Commission,  it  is  also justified  to  establish  a  committee. 

8.3  Follow  up  and  evaluation  of  the  action 

The proposed Directive sets out in its Article 22 that the Commission, before  1  January  2000, 
will report to the European  Parliament  and to the Council on the functioning  of the Directive 
and  in particular  assess  the need  for  further  evolution  of  the  regulatory  structures  as  regards 
authorizations. 

In  addition,  Article  22  establishes  the  basis  to  adapt  the  Annexes  of  the proposed  Directive 
to  future  technological  developments  in  telecommunications. 

9. 

ADMINISTRATIVE  EXPENSES 

The  actual  utilisation  of  the required  administrative  resources  will  be the  result  of  an  annual 
decision  by  the  Commission  on  the  allocation  of  resources,  taking  due  account  of  the 
manpower  and  additional  budget  which  have been  allocated  by  the  budgetary  authorities. 

30 

9.1 

Impact  on  employment 

Employment 
type 

Affected  manpower 

of which 

duration 

Permanent 

Temporary 

Fonctionnaires 
or  temporary 

Other  resources 

A 
B 
C 

1 

1/2 

Total 

1  +  1/2 

Additional 
resources 

Existing 
resources 
1 

1/2 

1  +  1/2 

undeter 
mined 

9.2  Global  financial  impact  on  additional  human  resources 

None 

9.3 

Increase  of  other  costs  resulting  from  the  action 

Budget line (No and 
title) 
A 2510 
Meetings of Committees 
whose consultation  is 
compulsory 

Amounts 

Detail of calculation 

(in  Ecus) 

152 460 
per year 

The  specific  requirements  for  committee  meetings  can 
be  estimated  to  be  about  six  meetings  per  year  of  a 
Committee with 30 members specifically  constituted  for 
the  purpose  of  this  Directive.  The  estimated  costs  of 
meetings  will  be  about  ECU  138  600  (6  x  23  100) 
per year. The estimated costs of working group meetings 
will  be  about  ECU  13  860  per  year  (on  the  basis  of 
six meetings  per  year  involving  three  members  of  the 
Committee). 

Total  152 460 
per year 

The agenda for  adoption of the Directive is approximately  the end of  1996. Thus the first year 
where  the  abovementioned  expenses  will  occur  should  be  1997. 

It  must  be  noted  that  when  the  European  Union  Telecommunications  Committeee  has  been 
established  by  the  Directive,  it  is  anticipated  that  the  ad  hoc  high  level  Committee  of 
National  Regulators  referred  to in  Council Resolution  of  17 December  1992 will not have to 
meet  again.  However,  the  expenditures  related  to  this  ad  hoc  Committee  are  currently  paid 
for  by  the Member  States. 

31 

ISSN 0254-1475 

COM(95) 545  final 

DOCUMENTS 

EN 

15  08 

Catalogue number  :  CB-CO-95-603-EN-C 

ISBN 92-77-96214-3 

Office for Official Publications  of the European Communities 

L-2985  Luxembourg 

32