Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP)
Date: 1996-03-20
Institutions: European Commission
Subjects: competition law, liberalisation of trade, systems interconnection, telecommunications, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,20.03.1996 
COM(%) 121 final 

95/0207 (COD) 

Amended  proposal  for  a 

EUROPEAN  PARLIAMENT  AND  COUNCIL  DIRECTIVE 

on interconnection  in telecommunications with regard to ensuring universal  service 

and interoperability through application of the principles of Open  Network 

Provision  (ONP) 

(presented  by  the  Commission  pursuant  to  Article  189 a (2) 
of  the  EC-Treaty) 

EXPLANATORY  MEMORANDUM 

The  Commission  hereby  presents  a  modified  proposal  for  a  European  Parliament 
and  Council  Directive  on  Interconnection  in  Telecommunications  with  regard  to 
ensuring  universal  service  and  interoperability  through  application  of the  principles 
of  Open  Network  Provision  (ONP).  The  modified  proposal  incorporates  those 
amendments  proposed  by  the  European  Parliament  at  First  Reading  which  were 
accepted  by the Commission. 

1. 

Introduction 

a) 

Background 

The Commission  adopted  its proposal  on  19.07.95,  and  it was  formally  transmitted 
to the EP and the Council on  12.09.951. 

The Economic  and  Social  Committee gave a favourable  Opinion  on  28.02.962. The 
European  Parliament  adopted  a  favourable  Resolution  at  its  First  Reading  on 
14.02.96, and  proposed  69 amendments to the Commission  proposal3. 

b) 

Purpose  of the  Directive 

This Directive is an essential  component  of the regulatory  framework  for  the  future 
liberalised telecommunications  sector, to be in place by  1.1.98. 

It  will  enable  new  market  entrants  to  access  existing  business  and  residential 
customers, on a basis which will encourage increased  investment  and market  growth 
in the telecommunications  services sector,  within a predictable  and  stable  regulatory 
environment.  At  the  same  time,  it  will  put  in  place  safeguards 
to  ensure 
interconnection  and  interoperability  of  networks  and  services  so  that  users  may 
of  universal 
from 
increasingly  benefit 
telecommunications  services. 

the  European  wide  provision 

The  Directive 
to  be 
implemented  at  a  national  level,  under  supervision  of  the  national  regulatory 
authorities,  in accordance with the principle of subsidiarity. 

lays  down  harmonized  principles  for 

interconnection 

1 
2 
3 

OJ C 313, 24.11.1995, p.7 
TRA/301  ,28.02.1996 
A4-0017/96, PV  14-02-96 

- 2-

2. 

EP  amendments  accepted  by  the  Commission 

Of the  69  amendments  adopted  by the  European  Parliament  at First  Reading,  the 
Commission  accepted  28  in full,  13 in part,  and  4  in principle  (ie with  some 
reformulation  of the  text),  making  a total  of  45. 

Amendments  accepted  in full 

Amendments  accepted  in part 
Amendments  accepted  in principle 

: 

: 
: 

1, 2, 5, 8,  11,  14, 20, 22, 24, 28, 29, 33, 39, 40, 42, 
43, 44, 46, 47, 48, 52, 56, 58, 63, 64, 65, 66, 67 
3, 4, 6, 9, 12, 15,  26, 32, 36, 37, 45, 49,  57, 
23, 51, 53, 68 

The  Commission  accepted  those  amendments  which: 

-  re-inforce  the 

importance  of  ensuring  universal  service,  and  a  single  European 

telecommunications  market; 

-  concern  number  portability; 

-  emphasise  the  need  for  protection  of the  environment; 

- 

increase  transparency  and  ensure  reasonable  confidentiality; 

-  call  for 

increased  coordination  between  national  regulatory  authorities  and 

between  national  regulatory  authorities  and  the  Commission; 

-  clarity  the  text  in a manner  consistent  with  the  aims  of the  Directive; 

-  call  for  an  examination  of  the  possibility  of  a  European  regulator)'  authority  for 

telecommunications,  as  part  of the  review  of the  Directive  during  1999; 

-  are  consistent  with  other  EU  legislation. 

3. 

Amendments  not  accepted  by  the  Commission 

The Commission  has  not  accepted  24  of the  69  amendments  proposed  by the  European 
Parliament.  The reasons  are  given  below,  where  the  amendments  are  grouped  into  11 
broad  categories. 

Scope  of  the  Directive 
(Amendments  13,  15 (part),  55) 

The  Directive  concerns  interconnection  to  public  telecommunications  networks  and 
services.  Amendment  13 would  restrict  the  scope  of the  Directive  to  interconnection 
between  public  networks  of the  same  type,  and  is inconsistent  with  part  of amendment  1 
On  the  other  hand,  amendment  15 (first  part)  would  expand  the  scope  of the  Directive 
too  far  by  extending  the  requirement  for  confidentiality  to  al]  telecommunications 
networks  (public  and  private). 
The  Directive  concerns  interconnection  within  the  Community,  as  set  out  in  Article  1. 
Amendment  55  is therefore  outside  the  scope  of the  Directive. 

- 3-

World  Trade  Organisation  (WTO)  negotiations  on  basic  telecommunications 
services 
(Amendments  10,  54) 

Negotiations  on  multilateral  agreements  for  comparable  and  effective  access  to  third 
country  markets  are  currently  underway  in the  context  of the  World  Trade  Organisation 
negotiations  in Geneva.  Amendment  10 is inappropriate  as the Directive  is due  to  be 
adopted  after  the  conclusion  of the  WTO  negotiations  scheduled  for  April  1996. 
Amendment  54  would  place  inappropriate  constraints  on  the  action  to  be taken  in  the 
case  of a lack  of agreement  at  a multilateral  level. 

Accounting  separation 
(Amendments  6(part),  34, 35, 37, 38,  60) 

Amendments  6 (second  part),  34,  35, 37  (second  part)  would  replace  the  requirement 
for  full  accounting  separation  in Article  8 by  a weaker  requirement  for  transparent  cost 
accounting  systems.  The  Commission  proposal  represents  a careful  balance  between  the 
differing  needs  of the  existing  operators,  the  new  entrants  and  the  national  regulatory 
authorities;  this  amendment  would  tip that  balance  in favour  of the  existing  operators, 
while  also  adding  to  the  supervisory  load  of the  national  regulatory  authorities. 
Amendments  38  and  60  could  lead  to  inconsistency  with  Commission  Directive 
95/51/EC4  on  the  use  of cable  television  networks  for  the  provision  of already  liberalised 
telecommunications  services,  by  proposing  an  additional  threshold  for  accounting 
separation 

National  regulatory  authorities 
(Amendments  16,  41) 

The  need  for  independence  of the  national  regulatory  authorities  as  expressed  in 
amendment  41  is being  dealt  with  elsewhere,  in the  proposed  adaptation  of the  ONP 
framework  Directive  (see  COM(95)  543). 
The  possibility  for  the  national  regulatory  authority  to  extend  obligations  for 
interconnection,  as  referred  to  in  Amendment  16, is already  foreseen  in Article  9.6. 

Universal  service 
(Amendments  3(parts),  17,  18,  19, 26(part),  31, 32(part),  57(parts),  59,  62,  69) 

Services  which  cannot  at  present  be  made  available  to  all  users  everywhere  cannot  be 
accepted  as part  of a universal  service  obligation,  at  least  for  the  time  being..  Hence 
amendments  3 (second  part)  and  57  (first  and  second  parts)  are  not  accepted. 
Amendments  17 (first  part)  and  18 are  not  accepted  because  they  would  reduce  the 
flexibility  in  the  financing  of  universal  service,  by  requiring  Member  States  to  set  up a 
universal  service  fund. 

OJ  L  256,  26.10.1995,  p.49 

4-

Amendments  3 (last  part)  and  17 (second  part)  would  provide  for  contributions  to  the 
cost  of the  universal  service  obligations  to  be  shared  between  all operators  of 
telecommunications  networks  (instead  of only  public  networks).  This would  be unfair  on 
those  networks  which  already  contribute  to  the  cost  of the  universal  service  through 
payment  of standard  tariffs. 
Amendment  19 would  suppress  the  reference  to  market  benefit  for  organisations  with 
universal  service  obligations.  This  is an  important  factor  to  be  taken  into  account  when 
assessing  the  net  burden*of universal  service  obligations. 
Amendments  26  (third  part),  31,  32  (second  part)  and  59  could  increase  the  cost  of 
market  entry  to  new  players  and  decrease  incentives  to  remove  tariff  imbalances  between 
local  and  long  distance  calls.  They would  have the  effect  of reducing  the  clear  distinction 
between  interconnection  charges  and  contributions  to  universal  service  obligations. 
Amendment  62  would  reduce  the  role  of the national  regulatory  authority  in  overseeing 
contributions  to  universal  service  costs. 
The  Commission's  forthcoming  Communication  on Universal  Service  For 
Telecommunications  means  that  amendment  69  is  notappropriate. 

Dispute  resolution 
(Amendments  25, 49(part),  50) 

Amendment  25  was  not  accepted  because  amendment  51,  accepted  in principle,  already 
covers  the  question  of damages  in the  context  of dispute  resolution,  and  retrospective 
adjustments  in charges  are  already  foreseen  in  9(2)  of the  Directive. 
Amendment  49  (second  part)  cannot  be  accepted  as the  principles  in Article  9(1)  are  an 
important  reference  for  dispute  resolution. 
Amendment  50 would  allow  a dispute  to  be  pursued  simultaneously  in  national  courts 
and  at  EU  level,  and  could  result  in two  different  outcomes.  This  does  not  provide  legal 
certainty. 

Review  of  the  Directive 
(Amendment  12  (part)) 

There  are  provisions  in the Directive  which  will  need  to  remain  even  after  achievement  of 
full  competition,  in particular  those  concerning  universal  service  and  dispute  resolution. 
The  second  part  of Amendment  12 is therefore  not  accepted. 

Commission  guidelines 
(Amendments  7(part),  21, 30, 36(part),  61) 

Guidelines  are  considered  the  most  appropriate  tool  for  addressing  complex  financial 
issues,  in that  they  are  flexible  and  more  easily  updated  than  Directives.  The  committee 
procedure  proposed  will  ensure  that  the  guidelines  have  the  backing  of Member  States. 
Amendments  7 (first  part),  21, 30,  36  (second  part),  61  would  change  the  nature  of  the 
guidelines  and/or  extend  their  scope. 

5-

Definition  of significant  market  power 
(Amendment  4 (parts)) 

The deletions proposed  in Amendment 4 cannot be accepted  as they are important 
factors  for  assessing if an organisation  has significant  market power.  The existence of 
alternative means of access to the market does not justify  immediate removal of 
obligations on those with significant  market  power. 

Collocation  and facility  sharing 
(Amendments  9 (parts) and 45 (parts)) 

Amendments 9 and 45 would result in too rigid a framework  for collocation and  facility 
sharing, in particular in the area of costing.  These are  issues which demand  a certain 
flexibility  of approach in order to decide where the public interest lies.  Amendment  45 
would  remove the requirement  for public consultation. 

Other  amendments 
(Amendment  7(part), 26(part), 27) 

Amendments  26 (first  part) and 27 would result in inconsistent terminology with other 
ONP Directives. 
Amendment  7 (second  part) cannot be accepted  as the interconnection  point is not 
always the choice of the organisation  providing  interconnection. 

4.  Conclusion 

The Commission  has accepted  45 of the 69 amendments proposed  by the European 
Parliament  at First Reading either in whole, in part or in principle. 

In accordance with Article  189a paragraph  2 of the EC Treaty, the Commission  amends 
its initial  proposal, incorporating these amendments. 

Amended  Proposal  for  a  European  Parliament  and  Council  Directive 
on  interconnection  in  telecommunications  with  regard  to  ensuring 
universal  service  and  interoperability  through  application  of 
the  principles  of  Open  Network  Provision  (ONP) 

Original  text 

Amended 

text 

Recital  1 

in 

to 

that 

service 

different 

principles 

recognizes 

Whereas  from  1  January  1998  (with  transition 
periods  for  certain  Member  States)  the provision  of 
telecommunications  services  and  infrastructure  in 
the  Community  will  be 
liberalized;  whereas  the 
Council's  Resolution  of  7  February  1994  on 
the 
universal 
telecommunications  sector^ 
in 
order 
Community-wide 
promote 
telecommunications  services  there  is  a  need  to 
ensure  interconnection  of  public  networks  and,  in 
the  future  competitive  environment,  interconnection 
between 
and  Community 
national 
operators;  whereas  Council  Directive  90/387/EEC 
of 28 June  1990 on the establishment  of the internal 
market  for  telecommunications  services through  the 
implementation  of open  network  provision  (ONP)(4) 
lays  down  harmonized  principles  for  open  and 
public 
efficient 
of, 
and, 
telecommunications 
where 
applicable, 
the  Council's 
Resolution  of  22  July  1993  on  the  review  of  the 
situation  in  the  telecommunications  sector  and  the 
in  that  markct(5) 
need  for  further  development 
recognizes  that  open  network  provision  measures 
provide  an  appropriate  framework  for  harmonizing 
interconnection  conditions; 

and 
networks 
services;  whereas 

access 

use 

to, 

promote 

interconnection  of  networks 

Whereas  from  1  January  1998  (with,  subject  to 
certain  conditions,  the  possibility  of 
transition 
periods  in  some  Member  States)  the  provision  of 
telecommunications  services  and  infrastructure  in 
liberalized;  whereas  in 
the  Community  will  be 
Community-wide 
to 
order 
telecommunications  services  there  is  a  need  to 
ensure 
between 
different  national  and  Community  operators; 
whereas  Council  Directive  90/387/EEC  of  28  June 
1990 on the establishment  of the internal  market  for 
telecommunications 
the 
implementation  of open  network  provision  (ONP)(4) 
lays  down  harmonized  principles  for  open  and 
public 
efficient 
of, 
and, 
telecommunications 
where 
applicable, 
the  Council's 
Resolution  of  22  July  1993  on  the  review  of  the 
situation  in  the  telecommunications  sector  and  the 
in  that  market(5) 
need  for  further  development 
recognizes  that  open  network  provision  measures 
provide  an  appropriate  framework  for  harmonizing 
interconnection  conditions; 

and 
networks 
services;  whereas 

services 

through 

access 

use 

to, 

7-

Recital  4 

Whereas,  following  the  removal  of  special  and 
exclusive  rights  for  telecommunications  services 
and  infrastructure  in  the  Community,  the  provision 
of  telecommunications  networks  or  services  may 
require  some  form  of  authorization  by  Member 
States;  whereas  all  organizations  authorized  to 
provide  public  telecommunications  networks  or 
public telecommunications  services  in all  or part  of 
the  Community  should  be 
to  negotiate 
interconnection  agreements  on  a  commercial  basis 
in  accordance  with  Community  law,  subject  to 
supervision  and  intervention  by  national  regulatory 
authorities;  whereas 
to  ensure 
adequate  interconnection  within  the  Community  of 
certain  networks  and  services  essential  for  the 
social  and  economic  well-being  of  Community 
users,  notably  public 
telephone  networks  and 
services, and  leased lines; 

is  necessary 

free 

it 

Whereas,  following  the  removal  of  special  and 
exclusive  rights  for  telecommunications  services 
and  infrastructure  in the  Community,  the  provision 
of  telecommunications  networks  or  services  may 
require  some  form  of  authorization  by  the  relevant 
public authority, in accordance with the  subsidiarity 
principle;  whereas  all  organizations  authorized  to 
provide  public  telecommunications  networks  or 
public telecommunications  services  in all  or  part  of 
the  Community  should  be 
to  negotiate 
interconnection  agreements  on  a  commercial  basis 
in  accordance  with  Community  law,  subject  to 
relevant 
supervision  and 
authorities;  whereas 
to  ensure 
adequate  interconnection  within  the  Community  of 
certain  networks  and  services  essential  for  the 
social  and  economic  well-being  of  Community 
users,  notably  public 
telephone  networks  and 
services, and  leased lines; 

intervention  by 

it  is  necessary 

free 

the 

Recital  6 

service 

obligations;  whereas 

Whereas  the  Resolution  of  7  February  1994  sets 
voice 
out  conditions  for  financing  a  universal 
telephony  service;  whereas  obligations  for 
the 
provision  of  universal  service  contribute  to  the 
Community  objective  of  socio-economical  cohesion 
and  territorial  equity;  whereas  there  may  be  more 
than  one  organization  in  a  Member  State  with 
the 
universal 
calculation  of  the  net  cost  of  universal  service 
should  take  due  account  of  costs  and  revenues,  as 
well  as  economic  externalities  and  the  intangible 
benefits  resulting  from  providing  universal  service 
but,  in  order  not  to  hinder  the  on-going  process  of 
tariff  rebalancing,  should  not 
include  elements 
which are due to historic tariff  imbalances; whereas 
costs  of  universal  service  obligations  should  be 
calculated  on  the  basis  of  transparent  procedures; 
whereas 
the 
sharing  of  universal  service  obligations  should  be 
unbundled  from  charges for  interconnection; 

financial  contributions 

related 

to 

Whereas  obligations  for  the  provision  of  universal 
service  contribute  to  the  Community  objective  of 
socio-economical  cohesion  and  territorial  equity; 
introduce  new 
whereas  the  aim  should  be  to 
technologies 
like  the  integrated  services  digital 
network  (ISDN)  as  soon  as  possible  and  on  as 
broad  a  basis  as  possible  in  the  Member  States; 
whereas the current  level of deployment  of ISDN in 
Member  States  means  that  it  cannot  be  made 
available  to  all  users  everywhere  and  therefore  it 
cannot  at  present  be  subject  to  a  universal  service 
obligation;  whereas  there  may  be  more  than  one 
organization  in a  Member  State with  obligations  of 
providing universal  service; whereas the  calculation 
of the net  cost  of  universal  service  should  take  due 
account  of costs  and  revenues,  as  well  as  economic 
externalities  and  the  intangible  benefits  resulting 
from  providing universal  service but,  in order not to 
hinder  the  on-going  process  of  tariff  rebalancing, 
should  not  include  elements  which  arc  due  to 
historic  tariff  imbalances,  given  that  the  fixed  costs 
associated  with  the  existing  network  are  at  present 
partly  taken  into  account  in the  tariff  shared  by  all 
users  of  that  network;  whereas  costs  of  universal 
service obligations should  be calculated  on the basis 
of 
financial 
contributions  related  to  the  sharing  of  the  cost  of 
universal  service  obligations  should  be  unbundled 
from  charges  for  interconnection; 

transparent  procedures;  whereas 

Recital 7 

to  end-users, 

Whereas  it  is  important  to  lay  down  principles  to 
guarantee  transparency,  access  to  information,  non 
discrimination  and  equality  of  access,  in  particular 
for  organizations  with  significant  market  power; 
the  market  power  of  an  organization 
whereas 
depends  on  a  number  of  factors  including  its  share 
of  the  relevant  product  or  service  market  in  the 
relevant  geographical  market,  its  turnover  relative 
to  the  size  of  the  market, 
its  ability  to  influence 
its  control  of  the  means  of 
market  conditions, 
access 
financial 
resources,  its  experience  providing  products  and 
services  in  the  market;  whereas,  for  the  purpose  of 
this  Directive,  an  organization  with  a  share  of  more 
than  2 5%  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  that  this 
was  not  the  case;  whereas,  for  an  organization 
foiling  below 
the 
national 
regulator^'  authority  may  nevertheless 
determine  that  the  organization  enjoyed  significant 
market  power; 

threshold  market  share, 

its  access 

this 

to 

Whereas  it  is  important  to  lay  down  principles  to 
guarantee  transparency,  access  to  information,  non 
discrimination  and  equality  of  access,  in  particular 
for  organizations  with  significant  market  power; 
whereas 
the  market  power  of  an  organization 
depends  on  a  number  of  factors  including  its  share 
of  the  relevant  product  or  service  market  in  the 
relevant  geographical  market,  its  turnover  relative 
to  the  size  of  the  market, 
its  ability  to  influence 
its  control  of  the  means  of 
market  conditions, 
links, 
its  international 
access  to  end-users, 
its 
experience 
its 
resources, 
financial 
to 
access 
providing  products  and  services 
in  the  market; 
whereas,  for 
the  purpose  of  this  Directive,  an 
organization  with  a  share  of  more  than  2 5%  of  a 
the 
telecommunications  market 
particular 
geographical  area  in  a  Member  State  within  which 
it  is  authorized  to  operate  would  be  presumed  to 
enjoy  significant  market  power,  unless  the  relevant 
regulatory  authority  determined  that  this  was  not 
the  case;  whereas,  for  an  organization  falling  below 
this  threshold  market  share,  the  relevant  regulatory 
authority  may  nevertheless  determine 
the 
that 
organization  enjoyed  significant  market  power; 

in 

Recital  8 

be 

the 

able 

power  must 

the  structure  and 

Whereas  pricing  for  interconnection  is  a  key  factor 
to  determine 
intensity  of 
competition  in  the  transformation  process  towards  a 
liberalized  market;  whereas  organizations  with 
significant  market 
to 
demonstrate  that  their  interconnection  charges  are 
set  on  the  basis  of  objective  criteria  and  follow  the 
principles  of  transparency  and  cost  orientation,  and 
arc  sufficiently  unbundled  in  ternis  of  network  and 
service  elements  offered;  whereas  publication  of  a 
list  of 
charges 
and 
services 
transparency  and  non 
enhances 
discrimination;  whereas  flexibility  in  the  methods  of 
should  be 
charging 
charging; 
possible, 
whereas 
level  of  charges  should  promote 
productivity  and  encourage  efficient  and  sustainable 
market  entry,  and  should  not  be  below  a  limit 
calculated  by  the  use  of  long-run  incremental  cost 
and  cost  allocation  and  attribution  methods  based 
on  actual  cost  causation,  nor  above  a  limit  set  by 
the 
the 
interconnection  m  question; 

interconnection 
the  necessary 

traffic 
capacity-based 

interconnection 

stand-alone 

providing 

including 

cost 

the 

for 

of 

be 

the 

able 

power  must 

the  stmcture  and 

Whereas  pricing  for  interconnection  is  a  key  factor 
to  determine 
intensity  of 
competition  in  the  transformation  process  towards  a 
liberalized  market;  whereas  organizations  with 
significant  market 
to 
demonstrate  that  their  interconnection  charges  are 
set  on  the  basis  of  objective  criteria  and  follow  the 
principles  of  transparency  and  cost  orientation,  and 
arc  sufficiently  unbundled  in  terms  of  network  and 
service  elements  offered;  whereas  publication  of  a 
list  of  interconnection  services,  charges,  terms  and 
conditions  enhances  the  necessary  transparency  and 
the 
non-discrimination;  whereas 
methods  of  charging 
traffic 
should 
capacity-based 
be  possible, 
charging;  whereas  the  level  of  charges  should 
promote  productivity  and  encourage  efficient  and 
sustainable  market  entry,  and  should  not  be  below  a 
limit  calculated  by  the  use  of  long-run  incremental 
cost  and  cost  allocation  and  attribution  methods 
based  on  actual  cost  causation,  nor  above  a  limit 
set  by 
the 
interconnection  m  question; 

the  stand-alone  cost  of  providing 

flexibility 
interconnection 

including 

for 

in 

Recital  9 

accounting 
activities 

appropriate 
interconnection 

separation 
Whereas 
between 
and  other 
activities  ensures  transparency  of  internal  cost-
transfers;  whereas,  where  an  organization  with 
a 
special 
non-
telecommunications 
provides 
field 
telecommunications  services,  accounting  separation 
is an appropriate  means to discourage  unfair  cross-
subsidies; 

exclusive 

rights 

also 

or 

in 

activities 

interconnection 

Whereas  where  an  organization  enjoys  significant 
market  power,  appropriate  accounting  separation 
between 
and  other 
activities  ensures  transparency  of  internal  cost-
transfers;  whereas,  where  an  organization  with 
a 
special 
non-
telecommunications 
provides 
field 
telecommunications  services,  accounting  separation 
is an appropriate  means to discourage  unfair  cross-
subsidies; 

exclusive 

rights 

also 

or 

in 

Recital  11 

in 

accordance  with 

Whereas, 
Directive 
90/387/EEC, the essential  requirements  upon which 
restrictions  on  access  to  and  usage  of  public 
telecommunications  networks  or 
services  are 
to  security  of  network 
justified  are 
limited 
integrity, 
operations,  maintenance  of  network 
interoperability  of  services  in  justified  cases,  and 
protection  of data as appropriate; 

in 

accordance  with 

Whereas, 
Directive 
90/387/EEC, the essential  requirements  upon  which 
restrictions  on  access  to  and  usage  of  public 
telecommunications  networks  or 
services  are 
to  security  of  network 
justified  are 
limited 
integrity, 
operations,  maintenance  of  network 
interoperability  of  services  in  justified  cases,  and 
protection  of  data  as  appropriate;  whereas  the 
reasons for these restrictions must be made public; 

Recital  12 

Whereas  facility-sharing  can  be of  benefit  for  town 
planning, environmental, economic or other reasons, 
and  should  be  encouraged  by  national  regulatory 
authorities  on  the  basis  of  voluntary  agreements; 
whereas  compulsory 
facility-sharing  may  be 
appropriate  in  some  circumstances,  but  should  be 
imposed  on  organizations  only  after  full  public 
consultation;  whereas  virtual  collocation  may 
to  physical 
provide  a  satisfactory  alternative 
collocation  of telecommunications  equipment; 

Whereas  facility-sharing  can  be of benefit  for  town 
planning, environmental, economic or other reasons, 
and  should  be  encouraged  by  national  regulatory 
authorities  on  the  basis  of  voluntary  agreements; 
whereas  compulsory 
facility-sharing  may  be 
appropriate  in  some  circumstances,  but  should  be 
imposed  on  organizations  only  after  full  public 
consultation;  whereas  virtual  collocation  may  in 
satisfactory 
normal  circumstances  provide  a 
of 
to 
alternative 
telecommunications  equipment; 

collocation 

physical 

Recital  22 

Whereas  the  essential  goal  of  interconnection  of 
networks  and  services  throughout  the  Community 
and  the  provision  of  trans-European  networks  and 
services cannot  be realized  satisfactorily  at  Member 
State  level,  and  is  better  achieved  at  Community 
level by this  Directive; 

Whereas  the  essential  goal  of  interconnection  of 
networks  and  services  throughout  the  Community 
and  the  provision  of  trans-European  networks  and 
services cannot  be realized  satisfactorily  at  Member 
State  level,  and  is  better  achieved  at  Community 
level  by  this  Directive;  whereas  it  may  appear 
io 
desirable,  when  this  Directive 
envisage  the  possibility  of  establishing  a  European 
Regulatory  Authority  to  ensure  those  tasks  carried 
out  by  the  Commission  or  the  National  Regulatory 
Authority  according  to this  Directive,  which  would 
be  more  efficiently 
through  such  a 
fulfilled 
European  Regulatory  Authority; 

is  reviewed, 

10 

Article  1  par.  1 

This  Directive  establishes  a  regulatory  framework 
for  securing  the  interconnection  and  interoperability 
of  telecommunications  networks  and  services  in  the 
Community, 
in  an  environment  of  open  and 
competitive  markets. 

This  Directive  establishes  a  regulatory  framework 
for  securing  the  interconnection  and  interoperability 
of  telecommunications  networks  and  services  in  the 
Community  and  ensuring  universal  service,  in  an 
environment  of open  and  competitive  markets. 

Article  2  par.  1(h)  (new) 

"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 
an 
national 
affordable  price. 

conditions, 

specific 

at 

Article  3  par.  1 

to 

by  Member 

States 
networks 
from 

Member  States  shall  take  all  necessary  measures  to 
remove  any  restrictions  which  prevent  organizations 
provide 
authorized 
and 
telecommunications 
telecommunications 
negotiating 
services 
interconnection  agreements  between  themselves  in 
The 
accordance  with  Community 
organizations  concerned  may  be 
the  same 
in  different  Member  States. 
Member  State  or 
for 
Technical 
interconnection  shall  be  a  matter  for  agreement 
between 
the 
provisions  of  this  Directive  and  the  competition 
rules  of the  Treaty. 

arrangements 

the  parties 

commercial 

law. 
in 

involved, 

subject 

and 

to 

to 

in  Member 

States 
networks 
from 

Member  States  shall  take  all  necessary  measures  to 
remove  any  restrictions  which  prevent  organizations 
provide 
authorized 
and 
telecommunications 
telecommunications 
negotiating 
services 
interconnection  agreements  between  themselves  in 
The 
accordance  with 
organizations  concerned  may  be 
same 
in  different  Member  States. 
Member  State  or 
for 
Technical 
interconnection  shall  be  a  matter  for  agreement 
between 
the 
provisions  of  this  Directive  and  the  competition 
rules  of the  Treaty. 

arrangements 

the  parties 

Community 

commercial 

law. 
in 

involved, 

subject 

and 

the 

to 

Article  3  par.  3 

their 

Member  States  shall  ensure  that  organizations  who 
public 
interconnect 
telecommunications 
public 
telecommunications  services  respect  at  all  times  the 
confidentiality  of  information  transmitted  or  stored. 

to 
and/or 

networks 

facilities 

their 

facilities 

Member  States  shall  ensure  that  organizations  who 
public 
interconnect 
telecommunications 
public 
telecommunications  services  respect  at  all  times  the 
confidentiality  of  information  transmitted  or  storedi 
except  when  required  by  their  national  law  for  the 
protection  of public  order. 

to 
and/or 

networks 

Article  5  par.  5 

Where  the  mechanisms  referred  to  in  paragraph  4 
are  established,  national  regulator}' authorities  shall 
ensure  that  the  principles  for  cost  sharing,  and 
details  of  the  mechanism  used,  are  open  to  public 
inspection  in accordance  with  Article  14(2). 

11 -

is  established,  national 

Where  a  mechanism  for  sharing  the  net  cost  of 
in 
to 
universal  service  obligations  as 
paragraph  4 
regulatory 
authorities  shall  ensure  that  the  principles  for  cost 
sharing,  and  details  of  the  mechanism  used,  are 
open  to  public  inspection  in  accordance  with  Article 
14(2). 

referred 

Article 6 par. 1 

to 

networks 

the 
and 

interconnection 

public 
For 
telecommunications 
public 
telecommunications  services  identified  in  Annex  I 
provided  by organizations  which  have been  notified 
by  national 
regulatory  authorities  as  having 
significant  market  power,  Member  States  shall 
ensure that: 

to 

interconnection 

public 
For 
telecommunications 
public 
telecommunications  services  identified  in  Annex  I 
provided  by  organizations  which  have  significant 
market power,  Member  States shall ensure that: 

the 
and 

networks 

Article 6(d) 

interconnection  agreements  are  open  to  public 
inspection,  in  accordance  with  Article  14(2),  with 
the  exception  of  those  parts  which  deal  with  the 
commercial  strategy  of  the  parties.  In  every  case, 
details  of 
and  any 
contributions  to  universal  service  obligations  shall 
be published. 

interconnection 

charges 

interconnection  agreements and changes to them are 
communicated  to  the  relevant  national  regulatory 
authorities and the Commission, and made available 
on  request  to  interested  parties,  in  accordance  with 
Article  14(2),  with  the  exception  of  those  parts 
which  deal  with  the  commercial  strategy  of  the 
parties.  The  national  regulatory  authority  shall 
decide  which  parts  deal  with 
the  commercial 
strategy  of  the  parties. 
In  every  case,  details  of 
interconnection  charges,  terms  and  conditions  and 
any  contributions  to  universal  service  obligations 
shall  be  made  available  on  request  to  interested 
parties. 

Article  6(e)  (new) 

Information  received  from  an  organization  seeking 
interconnection  shall  be  used  only  for  the  purpose 
for  which  it was supplied.  It shall  not be passed on 
to  other  departments,  subsidiaries  or  partners  for 
whom such  information  could  provide a competitive 
advantage. 

Article  7  par.  3 

Charges  for  interconnection  shall  be  based  on  the 
costs  of  providing  the  interconnection  services 
requested,  and  shall  normally  contain  the  following 
elements,  each  of  which  should  be 
itemized 
separately: 

Charges  for  interconnection  shall  be  based  on  the 
costs  of  providing  the  interconnection  services 
requested,  and  shall  normally  contain  the  following 
itemized 
elements,  each  of  which  should  be 
separately: 

-  a  charge  to  cover  re-imbursement  of  the  one 
time  costs  incurred  in  providing  the  specific 
elements  of  the  interconnection  requested;  (i.e. 
the initial  cost of any engineering work needed to 
provide the interconnection  facilities  requested); 

-  a  charge  to  cover  re-imbursement  of  the  one 
time  costs  incurred  in  providing  the  specific 
elements  of  the  interconnection  requested;  (i.e. 
cost  of  any 
the 
the 
engineering  work  needed 
interconnection  facilities  requested); 

to  provide 

initial  and 

subsequent 

usage  charges  related  to  the  utilisation  of  the 
requested. 
resources 
network  elements  and 
These  may 
include  capacity-based  charges 
and/or traffic  related  charges; 

-  usage  charges  related  to  the  utilisation  of  the 
requested. 
resources 
include  capacity-based  charges 

network  elements  and 
These  may 
and/or traffic  related  charges; 

12 

Annex  IV  indicates,  for  information  only, the  types 
of costs that  may  be included  in each  of these  tariff 
elements.  Where  other  tariff  elements  are  applied, 
these  must  be  transparent  and  based  on  objective 
criteria,  and  approved  by  the  national  regulatory 
authority. 

Annex  IV  indicates  the  types  of  costs  that  may  be 
included  in  each  of  these  tariff  elements.  Where 
other  tariff  elements  are  applied,  these  must  be 
transparent  and  based  on  objective  criteria,  and 
approved by the national  regulatory  authority. 

interconnection  may 

include  bulk 
Charges  for 
In  some  cases,  these  may  be 
discount  schemes. 
available  only  to  organizations  identified  in  Annex 
II.  Such  schemes  shall  be  based  on  objective 
criteria and applied  in a non-discriminatory  manner. 

interconnection  may 

include  bulk 
Charges  for 
In  some  cases,  these  may  be 
discount  schemes. 
available  only  to  organizations  identified  in  Annex 
II.  Such  schemes  shall  be  based  on  objective 
criteria and applied  in a non-discriminatory  manner. 

Article  7 par.  5 

National  regulatory  authorities  shall  ensure  the 
publication,  in  accordance  with  Article  14(1),  of  a 
list of interconnection  services and associated  tariffs 
broken  down  into  components,  according  to  market 
needs. 

National  regulatory  authorities  shall  ensure  the 
publication,  in  accordance  with  Article  14(1),  of 
terms and conditions for  interconnection.  This shall 
include  a 
interconnection  services  and 
relevant  tariffs  broken  down  into  components, 
according to market needs. 

list  of 

Article  7 par.  5a  (new) 

of 

In  order  to  provide  a  common  basis  for  the 
derivation 
the 
interconnection 
Commission  shall  draw  up.  acting  in  accordance 
with the procedure  in  Article  15,  guidelines  on cost 
accounting  systems  in relation to  interconnection. 

charges. 

Article  7  par.  8 

Member  States 
that  published 
shall  ensure 
interconnection  charges  and  charges  related  to  the 
sharing  of  the  cost  of  universal  service  obligations 
arc  made  available  to  the  ONP  Committee  at  the 
request of the  Commission. 

Member  States 
that  published 
shall  ensure 
interconnection  charges,  terms  and  conditions,  and 
charges  related  to  the  sharing  of  the  cost  of 
universal  service  obligations  are  made  available  to 
the  ONP  Committee  at 
the 
Commission. 

request  of 

the 

Article  7  par.  9 

In  order  to  provide  a  common  basis  for  the 
the 
interconnection 
derivation  of 
Commission  shall,  if necessary,  draw  up,  acting in 
accordance  with  the  procedure  laid  dowTi in  Article 
15, recommendations  on cost  accounting  systems in 
relation to  interconnection. 

charges, 

(deleted) 

13 

Article  8 par.  3a  (new) 

The  Commission  shall,  acting  in  accordance  with 
the  procedure  laid  down  in  Article  15.  draw  up 
guidelines  on  accounting  separation  in  relation  to 
interconnection. 

Article  8 par.  4 

The  financial  accounts  of  organizations  providing 
public 
telecommunications  networks  or  public 
telecommunications  services  shall  be  drawn  upa 
published  and  submitted  to  independent  audit.  The 
audit  shall  be  carried  out  in  accordance  with  the 
relevant  rules of national  legislation. 

The  first  subparagraph  shall  also  apply  to  the 
separate accounts  required in paragraphs  1  and 2. 

The  financial  accounts  of  organizations  providing 
public 
telecommunications  networks  or  public 
telecommunications  services  shall  be  drawn  up, 
submitted  to independent  audit  and  published.  The 
audit  shall  be  carried  out  in  accordance  with  the 
relevant  rules  of national  legislation,  and  its  results 
shall be made public. 

The  first  subparagraph  shall  also  apply  to  the 
separate  accounts  established  as 
in 
paragraphs  1  and 2. 

required 

Article  8 par.  6 

Where appropriate,  the  Commission  shall,  acting in 
accordance  with  the  procedure  laid  down  in  Article 
15. draw  up  guidelines  on  accounting  separation  in 
relation to  interconnection. 

(deleted) 

Article  9 par. 1 

National  regulatory'  authorities  shall  encourage  and 
secure  adequate  interconnection  in  the  interests  of 
all  users,  exercising  their  responsibility  in  a  way 
that  provides  maximum  economic  efficiency  and 
gives the maximum  benefit  to end-users. 

National  regulatory  authorities  shall  encourage  and 
secure  adequate  interconnection  in  the  interests  of 
all  users,  exercising  their  responsibility  in  a  way 
that  provides  maximum  economic  efficiency  and 
gives the maximum benefit  to end-users. 

In  particular,  national  regulatory  authorities  shall 
take into account: 

In  particular,  national  regulatory  authorities  shall 
take into account: 

the  need 
communications  for  users; 

to  ensure  satisfactory  end-to-end 

the  need 
communications  for users; 

to  ensure  satisfactory  end-to-end 

the need to stimulate a competitive  market; 

the need to stimulate a competitive market; 

the 
seamless 

to  ensure 
a 
of 

fair  and  proper 
_the  need 
development 
harmonious 
European  telecommunication  home  market,  thus 
coordinate  their  policies,  guidelines  and  actions 
with  their  counterparts  in  other  Member  States 
and .with the Commission; 

14 

the  need  to  promote  the  establishment  and 
development  of  trans-European  networks  and 
and 
interconnection 
the 
services, 
interoperability  of  national  networks 
and 
services, as  well as access  to such  networks  and 
services; 

and 

the  need  to  promote  the  establishment"  and 
development  of  trans-European  networks  and 
and 
interconnection 
the 
services, 
interoperability  of  national  networks 
and 
services, as well  as access to such  networks  and 
services; 

and 

the  principles  of  non-discrimination  (including 
equal access) and  proportionality; 

the  principles  of  non-discrimination  (including 
equal access) and proportionality; 

the need to maintain the universal service. 

the need to maintain the universal service. 

Article  9  par.  5 

operating 

In the  event  of  an  interconnection  dispute  between 
organizations 
authorizations 
granted  by  the  same  Member  State,  the  national 
regulatory  authority  of that  Member  State  shall, on 
request  of  either  party,  take  steps  with  a  view  to 
resolving the dispute. 

under 

operating 

In  the  event  of  an  interconnection  dispute  between 
organizations 
authorizations 
granted  by  the  same  Member  State,  the  national 
regulatory  authority  of that  Member  State  shall, on 
request  of  either  party,  take  steps  with  a  view  to 
resolving the dispute. 

under 

In  so  doing,  the  national  regulatory  authority  shall 
take into account, inter alia: 

In  so  doing,  the  national  regulatory  authority  shall 
take into account, inter alia: 

the user  interest, 

- 

the user interest, 

- 

the need to maintain  a universal  service, 

regulatory  obligations  or constraints  imposed on 
any of the parties, 

the  desirability  of  stimulating  innovative  market 
offerings,  and  of  providing  users  with  a  wide 
range  of 
telecommunications  services  at  a 
national  and at a Community level, 

the  availability  of  technically  and  commercially 
viable 
interconnection 
to 
requested, 

alternatives 

the 

the  desirability  of  ensuring  equal  access 
arrangements, 

the  need  to  maintain  the  integrity  of  the  public 
telecommunications 
the 
interoperability  of services, 

network 

and 

the  nature  of  the  request  in  relation  to  the 
resources available to meet the request, 

- 

- 

- 

- 

- 

- 

regulatory  obligations  or constraints  imposed  on 
any of the parties, 

the desirability  of  stimulating  innovative  market 
offerings,  and  of  providing  users  with  a  wide 
range  of 
telecommunications  services  at  a 
national and at a Community level, 

the  availability  of  technically  and  commercially 
viable 
interconnection 
to 
requested, 

alternatives 

the 

the  desirability  of  ensuring  equal  access 
arrangements, 

the  need  to  maintain  the  integrity  of  the  public 
telecommunications 
the 
interoperability  of services, 

network 

and 

the  nature  of  the  request  in  relation  to  the 
resources available to.meet the request, 

the relative market  positions of the parties, 

- 

the relative market positions of the parties, 

the  public  interest  (e.g.  the  protection  of  the 
environment). 

- 

the  public  interest  (e.g.  the  protection  of  the 
environment). 

- 1 5-

Article  9 par.  6a  (new) 

their  counterparts 

National  regulatory  authorities  shall  provide  help 
in  other 
and  assistance 
to 
in  order  to 
Member  States  whenever  required 
implement  this  Directive.  The  Commission  may  at 
any time  request  a National  regulatory  authority  to 
intervene  on  specific  issues.  National  Regulatory 
the 
Authorities 
Commission's  request  and  inform  the  Commission 
in detail and without undue delay of the steps taken. 

take  due  account  of 

shall 

Article  10(e)  (new) 

Protection  of the environment  : Member  States  may 
impose conditions  in interconnection  agreements  in 
order  to  ensure  the  protection  of  environment  or 
comply  with  objectives  of  town  planning,  and  in 
particular  to  impose  physical  collocation  of  lines 
and  ducts.  The  need  to  protect  the  environment 
does  not  constitute  a  valid  reason  for  refusal_to 
negotiate terms of  interconnection. 

Article  11  par. 1 

Where  an  organization  is  granted  a  general  right 
under  national  legislation  to  install  facilities  for 
telecommunications  purposes  on,  over  or  under 
public  or  private  land,  or  may  take  advantage  of  a 
procedure  for  the  expropriation  or  use  of  property 
national 
for 
regulatory authorities shall encourage the sharing of 
such  facilities  and property  with other  organizations 
providing public telecommunications  services. 

telecommunications 

purposes, 

Where  an  organization  is  granted  a  general  right 
under  national  legislation  to  install  facilities  for 
télécommunications  purposes  on,  over  or  under 
public  or  private  land,  or  may  take  advantage  of  a 
procedure  for  the  expropriation  or  use  of  property 
national 
for 
regulatory authorities shall  encourage the sharing of 
such facilities  and property  with other  organizations 
providing  public  telecommunications  networks  and 
services. 

telecommunications 

puq^oses, 

Article  12  par.  2 

In order to ensure full  interoperability  of  European-
wide  networks  and  services,  Member  States  shall 
ensure the coordination  of their national  positions in 
fora  where 
international 
numbering  decisions  are  taken,  taking  into  account 
possible  future  developments  in  numbering  at  a 
European  level. 

organizations 

and 

In order  to ensure  full  interoperability  of  European-
wide  networks  and  services,  Member  States  shall 
take  all  necessary  steps  to  ensure  the  coordination 
international 
of 
organizations  and  fora  where  numbering  decisions 
are  taken,  taking 
future 
developments  in numbering at a European  level. 

their  national  positions 

into  account  possible 

in 

16 

Article  12  par.  3 

shall 

from 

ensure 

independence 

that  national 
Member  States 
telecommunications  numbering  plans  are  controlled 
by  the  national  regulatory  authority,  in  order  to 
organizations 
guarantee 
providing  public  telecommunications  networks  or 
public  telecommunications  services. 
In  order  to 
ensure  effective  competition,  national  regulatory 
authorities  shall  ensure  that  the  procedures  for 
allocating  individual  numbers  and/or  numbering 
ranges are transparent,  equitable and timely and the 
allocation  is carried  out  in an objective,  transparent 
National 
and 
regulatory  authorities  may  lay  down  conditions  for 
the use of certain  prefixes  or certain  short codes, in 
particular  where  these  are  used  for  services  of 
general  public  interest  (e.g.  freephone  services, 
kiosk  billed  services,  directory  services,  emergency 
services), or to ensure equal access. 

non-discriminatory  manner. 

that 

shall 

from 

ensure 

independence 

national 
Member  States 
telecommunications  numbering  plans  are  controlled 
by  the  national  regulatory  authority,  in  order  to 
organizations 
guarantee 
providing  public  telecommunications  networks  or 
public  telecommunications  services  and  facilitate 
number  portability. 
In  order  to  ensure  effective 
competition,  national  regulatory  authorities  shall 
ensure  that  the  procedures  for  allocating  individual 
numbers  and/or  numbering  ranges  are  transparent, 
equitable  and  timely  and  the  allocation  is  carried 
and  non 
in  an  objective, 
out 
discriminatory  manner. 
regulatory 
authorities  may  lay  down  conditions  for  the  use  of 
certain  prefixes  or certain  short  codes,  in  particular 
where these  are  used  for  services  of  general  public 
interest 
services,  kiosk  billed 
services, directory  services,  emergency  services), or 
to ensure equal  access. 

transparent 
National 

freephone 

(e.g. 

Article  12  par.  5 

National  regulatory  authorities  shall  encourage  the 
earliest  possible  introduction  of the facility  whereby 
end-users  who  so  request  can  retain  their  national 
number  at  a  specific  location  independent  of  the 
organization  providing service, and shall ensure that 
this  facility  is available  at  least  in all  major  centers 
of population  before  1  January  2003. 

National  regulatory  authorities  shall  encourage  the 
earliest possible  introduction  of the facility  whereby 
end-users  who  so  request  can  retain,  against  a 
reasonable  contribution,  their  national  number  at  a 
specific  location  independent  of  the  organization 
providing  service,  and  shall  ensure that  this  facility 
is  available  at 
in  all  major  centers  of 
population before  1 January  2003.  If this facility  is 
not  yet  in  use,  national  regulatory  authorities  shall 
ensure  that,  once  a  user  has  changed  supplier,  a 
telephone  call  to  his  old  number  is  rerouted  to  the 
user,  or that  during  a  reasonable  period  callers  are 
given an indication of the new number. 

least 

Article  16  par.  2 

Any  party  may  refer  the  dispute  to  the  national 
regulatory  authorities  concerned. 
The  national 
regulatory  authorities  shall  coordinate  their  efforts 
in  order  to  bring  about  a  resolution  of  the  dispute, 
in  accordance  with  the  principles  set  out  in  Article 
9(1). 

Any  party  may  refer  the  dispute  to  the  national 
regulatory  authorities  concerned. 
The  national 
regulatory  authorities  shall  coordinate  their  efforts 
and  shall  inform  the  Commission  in  order  to  bring 
about  a  resolution  of  the  dispute,  in  accordance 
with the principles  set out in Article 9(1). 

-17 

Article  16  par.  5 

in  accordance  with 

The  position  agreed 
the 
procedure  referred  to  in paragraph  4 shall  form  the 
basis  of  a  solution  to  be  implemented  at  a  national 
If  an  agreed  position  is  not 
level  without  delay. 
reached, or if an agreed  position  is not  implemented 
within  a  reasonable  time  which  shall  not,  except  in 
justified  cases,  exceed  two  months,  the  appropriate 
solution  shall  be  adopted  by  the  Commission  in 
accordance  with  the  procedure  laid  down  in  Article 
15. 

in  accordance  with 

The  position  agreed 
the 
procedure  referred  to  in paragraph  4  shall  form  the 
basis  of  a  solution  to  be  implemented  at  a  national 
If  an  agreed  position  is  not 
level  without  delay. 
reached, or if an agreed  position  is not  implemented 
within  a  reasonable  time  which  shall  not,  except  in 
justified  cases, exceed  two  months,  the  appropriate 
solution  shall  be  adopted  by  the  Commission  in 
accordance  with the  procedure  laid  down  in  Article 
15. 
the 
This  solution  does  not  prejudice 
possibilities  which  exist  in  national  legislation  for 
one  party  to  claim  in  the  relevant  courts  for  the 
granting of damages  if it appears that the behaviour 
of  another  party  has  led  to  financial  losses  due  to 
distortion  of  competition.  However,  issues  which 
level  cannot  be 
have  been  settled  at  EU 
questioned  under  these  claims. 

Article  17  par.  2 

National  regulatory  authorities  shall  notify  to  the 
Commission  by  31  January  1997, and  immediately 
thereafter  in the  event  of  any  change,  the  names  of 
those organizations  which: 

National  regulatory  authorities  shall  notify  to  the 
Commission  by  31  January  1997,  and  immediately 
thereafter  in the  event  of  any  change,  the  names  of 
those organizations which: 

have  universal  service  obligations 
the 
telecommunications 
provision  of 
networks and services  identified  in Annex I,  Part 

the  public 

for 

have  universal  service  obligations 
the 
telecommunications 
provision  of 
networks and services  identified  in Annex I,  Part 

the  public 

for 

are  subject  to  the  provisions  of  this  Directive 
concerning organizations  with significant  market 
power; 

are  subject  to  the  provisions  of  this  Directive 
concerning  organizations  with significant  market 
power; 

are covered  by Annex II. 

are covered by Annex II. 

The  Commission  may  request  national  regulatory 
authorities  to  provide  their  reasons  for  classifying 
an organization  as having significant  market power. 

The  Commission  may  request  national  regulatory 
authorities  to  provide  their  reasons  for  classifying 
an  organization  as  having  significant  market  power 
or for  not classifying  an organization  as such. 

Article  19  par.  I 

Deferment  from  the  obligations  under  Articles  3(1) 
and  9(3)  may be  requested  by those  Member  States 
identified  in  the  Council's  Resolution  of  22  July 
1993  who  benefit  from  an  additional  transition 
period  for  the  liberalization  of  telecommunications 
services.  Deferments  granted  on  these  grounds 
shall  not exceed  the transition  periods  set out  in the 
said  Resolution. 

Member  States  with  less developed  networks  which 
are  granted  an  additional  period  of  up  to five years 
in which to implement all or some of the obligations 
a 
under  Directive 
request 
corresponding  deferment  of  some  or  all 
the 
requirements  of Articles  3(1) and  9(3). to the extent 
justified  by  any  special  or  exclusive  rights  for 
telecommunications 
infrastructure 
allowed  under Community  law. 

96/.../EC  may 

services  and 

Article  19  par.  2 

requested  where 

Deferment  from  the obligations  under  Article  12(5) 
may  be 
the  Member  State 
concerned  can  prove  that  they  would  impose  an 
excessive burden on certain  organizations  or classes 
of organization. 

Deferment  from  the  obligations  under  Article  12(5) 
may  be  requested  where 
the  Member  State 
concerned  can  prove  that  they  would  impose  an 
excessive burden on certain  organizations  or classes 
of organization. 

the  requirements  can  be  met,  and 

The  Member  State  shall  inform  the  Commission  of 
the  reasons  for  requesting  a  deferment,  the  date  by 
which 
the 
measures  envisaged  in  order  to  meet  this  deadline. 
The  Commission  shall  consider  the  request  taking 
into account the particular  situation  in that  Member 
State  and  the  need  to  ensure  a  coherent  regulatory 
environment at a Community  level, and shall  info mi 
the 
the  Member  State  whether 
particular  situation  in that  Member  State justifies  a 
deferment  and, 
if  so,  until  which  date  such 
deferment  is justified. 

it  deems  that 

The Member  State  shall  inform  the  Commission  of 
the  reasons  for  requesting  a  deferment,  the  date  by 
which  the  requirements  can  be  met,  and 
the 
measures  envisaged  in  order  to  meet  this  deadline. 
The  Commission  shall  consider  the  request  taking 
into account the particular  situation  in that  Member 
State  and  the  existing  possibilities  of  otherwise 
meeting  the  requirements,  and  shall  inform  the 
Member  State  whether  it  deems  that  the  particular 
situation  in that  Member  State justifies  a  deferment 
and,  if  so,  until  which  date  such  deferment  is 
justified. 

Article  21  par.  2 

The  Commission  shall  examine  and  report  to  the 
European  Parliament  and  to  the  Council  on  the 
functioning  of  this  Directive,  on  the  first  occasion 
not later than  31 December 2000.  For this purpose, 
the  Commission  may  request  information  from  the 
Member States.  Where necessary, further  measures 
can  be  proposed 
full 
in 
implementation  of the aims of this Directive. 

the  report 

the 

for 

The  Commission  shall  examine  and  report  to  the 
European  Parliament  and  to  the  Council  on  the 
functioning  of  this  Directive,  on  the  first  occasion 
not later than 31 December  1999.  For this  purpose, 
the  Commission  may  request  information  from  the 
Member  States.  Where  necessary,  the  report  shall 
examine what provisions  of this Directive  should be 
adapted  in  the  light  of  the  developments  in  the 
market.  Further  measures  can  be  proposed  in  the 
report  for the full  implementation  of the aims of this 
Directive; 
in  particular,  the  report  shall  examine 
the possibility  of establishing a European  regulatory 
authority  to  ensure  those  tasks  carried  out  by  the 
Commission  or  the  national  regulatory  authorities 
according  to  this  Directive,  which  would  be  more 
efficiently 
through  such  a  European 
Regulatory Authority. 

fulfilled 

19 

The fixed public telephone service 

The fixed  public telephone  service 

Annex  I, Part  1 

The  fixed  public  telephone  service  means  the 
provision to end-users at fixed locations of a service 
for  the  originating  and  receiving  of  national  and 
international  calls,  and  may  include  access  to 
emergency  (112) services, the provision  of operator 
assistance, directory  information  services, provision 
of  public  pay  phones,  provision  of  service  under 
special  terms  and/or  provision  of  special  facilities 
for customers with disabilities. 

calls, 

The  fixed  public  telephone  service  means  the 
provision to end-users at fixed locations of a service 
for  the  originating  and  receiving  of  national  and 
international 
to 
and 
emergency  (112) services, the provision  of  operator 
assistance, directory  information  services, provision 
of  public  pay  phones,  provision  of  service  under 
special  terms  and/or  provision  of  special  facilities 
for customers with disabilities. 

includes 

access 

Annex  II par.  4 

Organizations  included  in this category at their own 
licensing  or 
relevant  national 
request,  under 
authorization  schemes. 

providing 

Organizations 
telecommunication 
services which  are included  in this  category  at their 
own  request,  under  relevant  national  licensing  or 
authorization schemes. 

Annex  VII, Part  2.  (n)  (new) 

Provision  of facility  sharing. 

Annex  VII, Part  2.  (o)  (new) 

Maintenance 
services. 

and  quality  of 

interconnection 

Annex  VII,  Part  2.  (p)  (new) 

Protection  of confidential  information. 

Annex  VII,  Part  3.  (b) 

Provision  of facility  sharing. 

(deleted) 

Annex  VII, Part  3.  (e) 

Maintenance 
services. 

and  quality  of 

interconnection 

(deleted) 

20-

ISSN 0254-1475 

COM(96) 121 final 

DOCUMENTS 

EN 

15 

Catalogue number  :  CB-CO-96-131-EN-C 

ISBN 92-78-01831-7 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

IX