COMMON POSITION (EC) No 34/96 adopted by the Council on 18 June 1996 with a view to adopting Directive 96/.../EC of the European Parliament and of the Council of ... on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of open network provision (ONP)
Date: 1996-06-18
Institutions: Council of the European Union
Subjects: communications systems, public service, systems interconnection, technical standard, telecommunications, transmission network













EUR-Lex - 51996AG0729(03) - EN






Avis juridique important




|



51996AG0729(03)

COMMON POSITION (EC) No 34/96 adopted by the Council on 18 June 1996 with a view to adopting Directive 96/.../EC of the European Parliament and of the Council of ... on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of open network provision (ONP)  


Official Journal C 220 , 29/07/1996 P. 0013 





COMMON  POSITION (EC) No 34/96adopted by the Council on 18 June 1996with a view to adopting Directive  96/. . ./EC of the European Parliament and of the Council of . . . on interconnection in  telecommunications with regard to ensuring universal service and interoperability through  application of the principles of open network provision (ONP)(96/C 220/03)THE  EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100a  thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the Economic and Social Committee (2), Acting in accordance with the procedure laid down in Article 189b of the Treaty (3), 1. 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 Resolution of 7 February 1994 on universal service principles in the telecommunications  sector (4) recognizes that in order to promote Community-wide telecommunications services there is  a need to ensure interconnection of public networks and, in the future competitive environment,  interconnection 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  services through the implementation of open network provision (5) lays down harmonized principles  for open and efficient access to, and use of, public telecommunications networks and, where  applicable, publicly available services; 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 (6) recognizes that open network provision measures provide an appropriate framework  for harmonizing interconnection conditions; whereas this harmonization is essential for the  establishment and proper functioning of the internal market for telecommunications services;  whereas the Council Resolution of 18 September 1995 on the implementation of the future regulatory  framework for telecommunications (7) recognizes as key factors of this future regulatory framework  the maintenance and development of a universal service as well as a specific regulation on  interconnection, and sets out some guidelines on these subjects; 2. Whereas a general framework for interconnection to public telecommunications networks and  publicly available telecommunications services, irrespective of the supporting technologies  employed, is needed in order to provide end-to-end interoperability of services for Community  users; whereas fair, proportionate and non-discriminatory conditions for interconnection and  interoperability are key factors in fostering the development of open and competitive markets; 3. Whereas the abolition of special and exclusive rights in telecommunications means that certain  existing definitions need to be revised; whereas for the purposes of this Directive,  telecommunications services do not include radio and television broadcasting services; whereas the  technical conditions, tariffs, usage and supply conditions that apply to interconnection may be  different from the conditions that apply at end-user/network interfaces; 4. Whereas the regulatory framework for interconnection covers those situations where the  interconnected networks are used for the commercial provision of publicly available  telecommunications services; whereas the regulatory framework for interconnection does not cover  cases where a telecommunications network is used for the provision of telecommunications services  available only to a specific end-user or to a closed user group, but covers only cases where a  telecommunications network is used for the provision of publicly available services; whereas  telecommunications networks which are interconnected may be owned by the parties involved or may be  based on leased lines and/or transmission capacity not owned by the parties involved; 5. 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 organizations authorized to provide  public telecommunications networks or publicly available telecommunications services in all or part  of the Community should be free to negotiate interconnection agreements on a commercial basis in  accordance with Community law, subject to supervision and, if necessary, intervention by national  regulatory authorities; whereas it is necessary to ensure adequate interconnection within the  Community of certain networks and interoperability of services essential for the social and  economic well-being of Community users, notably fixed and mobile public telephone networks and  services, and leased lines; whereas, for the purpose of this Directive 'public` does not refer to  ownership, nor does it refer to a limited set of offerings designated as 'public networks` or  'public services`, but means any network or service that is made publicly available for use by  third parties; 6. Whereas it is necessary to define those organizations which have rights and obligations for  interconnection; whereas in order to stimulate development of new types of telecommunications  services, it is important to encourage new forms of interconnection and special network access at  points other than the network termination points offered to the majority of end-users; 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 market conditions, its control of the means of access to  end-users, its international links, its access to financial resources and its experience in  providing products and services in the market; whereas, the determination of which organizations  have significant market power should be undertaken by national regulatory authorities taking into  account the situation in the relevant market; 7. Whereas the concept of universal service must evolve to keep pace with advances in technology,  market development and changes in user demand; whereas the new conditions for the provision of  universal service should be assessed in the future review of this Directive; 8. Whereas the Council Resolution of 7 February 1994 sets out conditions for financing a universal  voice telephony service; whereas obligations for the provision of universal service contribute to  the Community objective of economic and social cohesion and territorial equity; whereas there may  be more than one organization in a Member State with universal service obligations; 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 should not hinder the on-going process of tariff rebalancing; whereas costs of  universal service obligations should be calculated on the basis of transparent procedures; whereas  financial contributions related to the sharing of universal service obligations should be unbundled  from charges for interconnection; whereas, when a universal service obligation represents an unfair  burden on an organization, it is appropriate to allow Member States to establish mechanisms for  sharing the net cost of universal provision of a fixed public telephone network and a fixed public  telephone service with other organizations operating public telecommunications networks and/or  publicly available voice telephony services; whereas this should respect the principles of  Community law, in particular those of non-discrimination and proportionality and should be without  prejudice to Article 100a (2) of the Treaty; 9. 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; 10. Whereas pricing for interconnection is a key factor in determining the structure and the  intensity of competition in the transformation process towards a liberalized market; whereas  organizations with significant market power must be able to demonstrate that their interconnection  charges are set on the basis of objective criteria and follow the principles of transparency and  cost orientation, and are 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 non-discrimination; whereas flexibility in the methods of charging  for interconnection traffic should be possible, including capacity-based 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  stand-alone cost of providing the interconnection in question; whereas charges for interconnection  based on a price level closely linked to the long-run incremental cost for providing access to  interconnection are appropriate for encouraging the rapid development of an open and competitive  market; 11. Whereas, when an organization enjoys significant market power, appropriate accounting  separation between interconnection activities and other activities ensures transparency of internal  cost transfers; whereas, where an organization with special or exclusive rights in a  non-telecommunications field also provides telecommunications services, accounting separation or  structural separation are appropriate means to discourage unfair cross-subsidies at least above a  certain turnover in telecommunications activities; 12. Whereas national regulatory authorities have an important role in encouraging the development  of a competitive market in the interests of Community users, and of securing adequate  interconnection of networks and interoperability of services; whereas negotiation of  interconnection agreements can be facilitated by national regulatory authorities setting down  certain conditions in advance, and identifying other areas to be covered in interconnection  agreements; whereas in the event of a dispute over interconnection between parties in the same  Member State, an aggrieved party must be able to call on the national regulatory authority to  resolve the dispute; whereas national regulatory authorities must be able to require organizations  to interconnect their facilities, where it can be demonstrated that this is in the users'  interests; 13. Whereas, in accordance with Directive 90/387/EEC, the essential requirements justifying  restrictions on access to and use of public telecommunications networks or services are limited to  security of network operations, maintenance of network integrity, interoperability of services in  justified cases, and protection of data as appropriate; whereas the reasons for these restrictions  must be made public; whereas the provisions of this Directive do not prevent a Member State from  taking measures justified on grounds set out in Articles 36 and 56 of the Treaty, and in particular  on grounds of public security, public policy and public morality; 14. 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; 15. Whereas numbering is a key element for equal access; whereas national regulatory authorities  should have the responsibility for administering and controlling national numbering plans, and  those naming and addressing aspects of telecommunications services where coordination at a national  level is required, so as to ensure effective competition; whereas in exercising this  responsibility, national regulatory authorities must have regard to the principle of  proportionality, particularly as to the effect of any measures on network operators, resellers and  consumers; whereas number portability is an important facility for users, and should be implemented  as soon as practicable; whereas numbering schemes should be developed in full consultation with all  the parties involved and in harmony with a long-term Europe-wide numbering framework and  international numbering schemes as being considered in the European conference of postal and  telecommunications administrations (CEPT); whereas numbering requirements in Europe, the need for  the provision of pan-European and new services and the globalization and synergy of the  telecommunications market make the coordination of national positions in international  organizations and fora desirable where numbering decisions are taken; 16. Whereas, in accordance with Directive 90/387/EEC, the harmonization of technical interfaces and  access conditions must be based on common technical specifications which take account of  international standardization; whereas the development of new European standards for  interconnection may be needed; whereas in accordance with Council Directive 83/189/EEC of 28 March  1983 laying down a procedure for the provision of information in the field of technical standards  and regulations (1), new national standards must not be developed in areas where harmonized  European standards are under development; 17. Whereas, in accordance with Directive 90/387/EEC, open network provision conditions must be  transparent and published in an appropriate manner; whereas that Directive set up a committee (the  ONP committee) to assist the Commission, and provides a procedure for consultation with  telecommunications organizations, users, consumers, manufacturers and service providers; 18. Whereas in addition to the rights of recourse granted under national or Community law, there is  a need for conciliation procedures for cross-border disputes which lie outside the competence of a  single national regulatory authority; whereas these procedures, to be initiated by any of the  national regulatory authorities concerned, should be responsive, inexpensive and transparent, and  should involve all the parties concerned; 19. Whereas, to enable the Commission to monitor effectively the application of this Directive, it  is necessary that Member States notify to the Commission the national regulatory authorities which  will be responsible for the functions created by this Directive and the organizations covered by  its provisions; 20. Whereas given the dynamic development in this sector, a responsive procedure for adjustment of  some Annexes to this Directive should be established which takes full account of the views of  Member States and should involve the ONP committee; 21. Whereas an agreement on a modus vivendi between the European Parliament, the Council and the  Commission concerning the implementing measures for acts adopted in accordance with the procedure  laid down in Article 189b of the EC Treaty (1) was reached on 20 December 1994; 22. Whereas the implementation of certain obligations must be linked to the date of liberalization  of telecommunications services and infrastructure and, in particular in regard to the relevant  Member States, take full account of the transition periods granted in 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 and the Council Resolution of 22 December 1994 on the principles and  timetable for the liberalization of telecommunications infrastructures (2), including the retention  of special or exclusive rights in relation to direct interconnection between the mobile networks of  those Member States and the fixed or mobile networks of other Member States; whereas deferment of  the obligation to provide number portability may be granted where the Commission agrees that the  obligation would impose an excessive burden on certain organizations; 23. Whereas this Directive does not, in the case of undertakings which are not established in the  Community, prevent the adoption of measures in accordance with both Community law and existing  international obligations designed to ensure that nationals of the Member States enjoy similar  treatment in third countries; whereas Community undertakings should benefit in third countries from  treatment and effective access that is comparable to the treatment and access to the market which  is conferred on nationals of the countries concerned within the Community context; whereas in  negotiations on telecommunications the Community will have to seek a balanced multilateral  agreement which provides Community operators with effective and comparable access in third  countries; 24. Whereas the functioning of this Directive should be reviewed by 31 December 1999, in particular  to examine the scope of universal service and the timetable for number portability; whereas the  situation with regard to interconnection with third countries should also be periodically reviewed,  to allow appropriate action to be taken; 25. Whereas the essential goal of interconnection of networks and interoperability of services  throughout the Community cannot be sufficiently achieved at Member State level, and can therefore  be better achieved at Community level by this Directive; 26. Whereas this Directive is without prejudice to the application of the competition rules of the  Treaty, HAVE ADOPTED THIS DIRECTIVE: Article 1Scope and aim This Directive establishes a regulatory framework for  securing in the Community the interconnection of telecommunications networks and in particular the  interoperability of services, and with regard to ensuring provision of universal service in an  environment of open and competitive markets. It concerns the harmonization of conditions for open and efficient interconnection of and access to  public telecommunications networks and publicitly available telecommunications services. Article 2Definitions 1. For the purposes of this Directive: (a) interconnection means the physical and logical linking of telecommunications networks used by  the same or a different organization in order to allow the users of one organization to communicate  with uses of the same or another organization, or to access services provided by another  organization; (b) public telecommunications network means a telecommunications network used, in all or in part,  for the provision of publicly available telecommunications services; (c) telecommunications network means transmission systems and, where applicable, switching  equipment and other resources which permit the conveyance of signals between defined termination  points by wire, by radio, by optical or by other electromagnetic means; (d) telecommunications services means services whose provision consists wholly or partly in the  transmission and routing of signals on telecommunications networks, with the exception of radio and  television broadcasting; (e) users means individuals, including consumers, or organizations using or requesting publicly  available telecommunications services; (f) special rights means rights that are granted by a Member State to a limited number of  undertakings through any legislative, regulatory or administrative instrument which, within a given  geographical area, limits to two or more the number of such undertakings authorized to provide a  service or undertake an activity, otherwise than according to objective, proportionate and  non-discriminatory criteria, or designates, otherwise than according to such criteria, several  competing undertakings as being authorized to provide a service or undertake an activity, or  confers on any undertaking or undertakings, otherwise than according to such criteria, legal or  regulatory advantages which substantially affect the ability of any other undertaking to provide  the same service or to undertake the same activity in the same geographical area under  substantially the same conditions; (g) universal service means a defined minimum set of services of specified quality which is  available to all users independent of their geographical location and, in the light of specific  national conditions, at an affordable price. 2. Further definitions given in Directive 90/387/EEC shall apply, where relevant. Article 3Interconnection at national and Community level 1. Member States shall take all  necessary measures to remove any restrictions which prevent organizations authorized by Member  States to provide public telecommunications networks and publicly available telecommunications  services from negotiating interconnection agreements between themselves in accordance with  Community law. The organizations concerned may be in the same Member State or in different Member  States. Technical and commercial arrangements for interconnection shall be a matter for agreement  between the parties involved, subject to the provisions of this Directive and the competition rules  of the Treaty. 2. Member States shall ensure the adequate and efficient interconnection of the public  telecommunications networks set out in Annex I, to the extent necessary to ensure interoperability  of these services for all users within the Community. 3. Member States shall ensure that organizations which interconnect their facilities to public  telecommunications networks and/or publicly available telecommunications services respect at all  times the confidentiality of information transmitted or stored. Article 4Rights and obligations for interconnection 1. Organizations authorized to provide  public telecommunications networks and/or publicly available telecommunications services as set out  in Annex II shall have a right and, when requested by organizations in that category, an obligation  to negotiate interconnection with each other for the purpose of providing the services in question,  in order to ensure provision of these networks and services throughout the Community. On a  case-by-case basis, the national regulatory authority may agree to limit this obligation on a  temporary basis and on the grounds that there are technically and commercially viable alternatives  to the interconnection requested, and that the requested interconnection is inappropriate in  relation to the resources available to meet the request. Any such limitation imposed by a national  regulatory authority shall be fully reasoned and made public in accordance with Article 14 (2). 2. Organizations authorized to provide public telecommunications networks and publicly available  telecommunications services as set out in Annex I which have significant market power shall meet  all reasonable requests for access to the network including access at points other than the network  termination points offered to the majority of end-users. 3. An organization shall be presumed to have significant market power when it has 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. National regulatory authorities may nevertheless determine that an organization with a market share  of less than 25 % in the relevant market has significant market power. They may also determine that  an organization with a market share of more than 25 % in the relevant market does not have  significant market power. In either case, the determination shall take into account the  organization's ability to influence market conditions, its turnover relative to the size of the  market, 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. Article 5Interconnection and universal service contributions 1. Where a Member State  determines, in accordance with the provisions of this Article, that universal service obligations  represent a unfair burden on an organization, it may establish mechanisms for sharing the net cost  of the universal service obligations with other organizations operating public telecommunications  networks and/or publicly available voice telephony services. Member States shall take due account  of the principles of transparency, non-discrimination and proportionality in setting the  contributions to be made. Only public telecommunications networks and publicly available  telecommunications services as set out in Part 1 of Annex I may be financed in this way. 2. Contributions to the cost of universal service obligations if any may be based on a mechanism  specifically established for the purpose and administered by a body independent of the  beneficiaries, and/or may take the form of a supplementary charge added to the interconnection  charge. 3. In order to determine the burden if any which the provision of universal service represents,  organizations with universal service obligations shall, at the request of their national regulatory  authority, calculate the net cost of such obligations in accordance with Annex III. The calculation  of the net cost of universal service obligations shall be audited by the national regulatory  authority or another competent body, independent of the telecommunications organization, and  approved by the national regulatory authority. The results of the cost calculation and the  conclusions of the audit shall be open to the public in accordance with Article 14 (2). 4. Where justified on the basis of the net cost calculation referred to in paragraph 3, and taking  into account the market benefit if any which accrues to an organization that offers universal  service, national regulatory authorities shall determine whether a mechanism for sharing the net  cost of universal service obligations is justified. 5. Where the mechanisms referred to in paragraph 4 are established, national regulatory authorities  shall ensure that the principles for cost sharing, and details of the mechanism used, are open to  the public in accordance with Article 14 (2). National regulatory authorities shall ensure that an annual report is published giving the  calculated cost of universal service obligations, and identifying the contributions made by all the  parties involved. 6. Until such time as the procedure described in paragraphs 3, 4 and 5 is implemented, any charges  payable by an interconnected party which include or serve as a contribution to the cost of  universal service obligations shall be notified, prior to their introduction, to the national  regulatory authority. Where the national regulatory authority finds on its own initiative, or after  a substantiated request by an interested party, that such charges are excessive, the organization  concerned shall be required to reduce the relevant charges. Such reductions shall be applied  retrospectively, from the date of introduction of the charges, but not before 1 January 1998. Article 6Non-discrimination and transparency For interconnections to public telecommunications  networks and publicly available telecommunications services as set out in Annex I provided by  organizations which have been notified by national regulatory authorities as having significant  market power, Member States shall ensure that: (a) the organizations concerned adhere to the principle of non-discrimination with regard to  interconnection offered to others. They shall apply similar conditions in similar circumstances to  interconnected organizations providing similar services, and shall provide interconnection  facilities and information to others under the same conditions and of the same quality as they  provide for their own services, or those of their subsidiaries or partners; (b) all necessary information and specifications are made available on request to organizations  considering interconnection, in order to facilitate conclusion of an agreement; the information  provided should include changes planned for implementation within the next six months, unless  agreed otherwise by the national regulatory authority; (c) interconnection agreements are communicated to the relevant national regulatory authorities,  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 determine 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; (d) information received from an organization seeking interconnection is 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 7Principles for interconnection charges and cost accounting systems 1. Member States  shall ensure that the provisions of paragraphs 2 to 6 apply to organizations operating the public  telecommunications networks and/or publicly available telecommunications services as set out in  Parts 1 and 2 of Annex I, which have been notified by national regulatory authorities as having  significant market power. 2. Charges for interconnection shall follow the principles of transparency and cost orientation.  The burden of proof that charges are derived from actual costs including a reasonable rate of  return shall lie with the organization providing interconnection to its facilities. National  regulatory authorities may request an organization to provide full justification for its  interconnection charges, and where appropriate shall require charges to be adjusted. This paragraph  shall also apply to organizations set out in Part 3 of Annex I which have significant market  power. 3. National regulatory authorities shall ensure the publication, in accordance with Article 14 (1),  of a reference interconnection offer. The reference interconnection offer shall include a  description of the interconnection offerings broken down into components according to market needs,  and the associated terms and conditions including tariffs. Different tariffs, terms and conditions for interconnection may be set for different categories of  organizations, where such differences can be objectively justified on the basis of the type of  interconnection provided and/or the relevant national licensing conditions. National regulatory  authorities shall ensure that such differences do not result in distortion of competition, and in  particular that the organization applies the appropriate interconnection tariffs, terms and  conditions when providing interconnection for its own services or those of its subsidiaries or  partners, in accordance with Article 6 (a). The national regulatory authority shall have the ability to impose changes in the reference  interconnection offer, where justified. Annex IV provides a list of examples of elements for further elaboration of interconnection  charges, tariff structures and tariff elements. Where an organization makes changes to the  published reference interconnection offer, adjustments required by the national regulatory  authority may be retrospective in effect, from the date of introduction of the change. 4. Charges for interconnection shall, in accordance with Community law, be sufficiently unbundled,  so that the applicant is not required to pay for anything not strictly related to the service  requested. 5. National regulatory authorities shall ensure that the cost accounting systems used by the  organizations concerned are suitable for implementation of the requirements of this Article, and  are documented to a sufficient level of detail, as indicated in Annex V. National regulatory authorities shall ensure that a description of the cost accounting system,  showing the main categories under which costs are grouped and the rules used for the allocation of  costs to interconnection, is made available on request. Compliance with the cost accounting system  shall be verified by the national regulatory authority or another competent body, independent of  the telecommunications organization and approved by the national regulatory authority. A statement  concerning compliance shall be published annually. 6. Where they exist, charges related to the sharing of the cost of universal service obligations,  as described in Article 5, shall be unbundled and identified separately. Article 8Accounting separation and financial reports 1. Member States shall require  organizations providing public telecommunications networks and/or publicly available  telecommunications services which have special or exclusive rights for the provision of services in  other sectors in the same or another Member State to keep separate accounts for the  telecommunications activities, to the extent that would be required if the telecommunications  activities in question were carried out by legally independent companies, or to have structural  separation for the telecommunications activities. Member States may choose not to apply the requirements referred to in the first subparagraph to  these organizations where their annual turnover in telecommunications activities in the Community  is less than the limit set in Part 1 of Annex VI. 2. Member States shall require organizations operating public telecommunications networks and/or  publicly available telecommunications services as set out in Parts 1 and 2 of Annex I and notified  by national regulatory authorities as organizations having significant market power which provide  public telecommunications networks and/or telecommunications services available for users and which  offer interconnection services to other organizations, to keep separate accounts for, on the one  hand, their activities related to interconnection - covering both interconnection services provided  internally and interconnection services provided to others - and, on the other hand, other  activities. Member States may choose not to apply the requirements referred to in the first subparagraph to  organizations where their annual turnover in telecommunications activities in the Member States is  less than the limit set in Part 2 of Annex VI. 3. Organizations providing public telecommunications networks and/or publicly available  telecommunications services shall provide financial information to their national regulatory  authority promptly on request and to the level of detail required. National regulatory authorities  may publish such information as would contribute to an open and competitive market, while taking  account of considerations of commercial confidentiality. 4. The financial reports of organizations providing public telecommunications networks or publicly  available telecommunications services shall be drawn up and submitted to independent audit and  published. 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. Article 9General responsibilities of the national regulatory authorities 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. In particular, national regulatory authorities shall take into  account: - the need to ensure satisfactory end-to-end communications for users, - the need to stimulate a competitive market, - the need to promote the establishment and development of trans-European networks and services,  and the interconnection of national networks and interoperability of services, as well as access to  such networks and services, - the principles of non-discrimination (including equal access) and proportionality, - the need to maintain and develop universal service. 2. General conditions set down in advance by the national regulatory authority shall be published  in accordance with Article 14 (1). In particular, in relation to interconnection between organizations set out in Annex II, national  regulatory authorities: - may set ex ante conditions in the areas listed in Part 1 of Annex VII, - shall encourage coverage in interconnection agreements of the issues listed in Part 2 of Annex  VII. 3. In pursuit of the aims stated in paragraph 1, national regulatory authorities may intervene on  their own initiative at any time, and shall do so if requested by either party, in order to specify  issues which must be covered in an interconnection agreement, or to lay down specific conditions to  be observed by one or more parties to such an agreement. National regulatory authorities may, in  exceptional cases, require changes to be made to interconnection agreements already concluded,  where justified to ensure effective competition and/or interoperability of services for users. Conditions set by the national regulatory authority may include inter alia conditions designed to  ensure effective competition, technical conditions, tariffs, supply and usage conditions,  conditions as to compliance with relevant standards, compliance with essential requirements,  protection of the environment, and/or the maintenance of end-to-end quality of service. The national regulatory authority may, on its own initiative at any time or if requested by either  party, also set time limits within which negotiations on interconnection are to be completed. If  agreement is not reached within the time allowed, the national regulatory authority shall take  steps to bring about an agreement under procedures laid down by that authority. The procedures  shall be open to the public in accordance with Article 14 (2). 4. Where an organization authorized to provide public telecommunications networks or publicly  available telecommunications services enters into interconnection agreements with others, the  national regulatory authority shall have the right to inspect all such interconnection agreements  in their entirety. 5. In the event of an interconnection dispute between organizations in a Member State, the national  regulatory authority of that Member State shall, at the request of either party, take steps to  resolve the dispute within six months of this request. The resolution of the dispute shall  represent a fair balance between the legitimate interests of both parties. In so doing, the national regulatory authority shall take into account, inter alia: - the user interest, - 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 alternatives to the interconnection  requested, - the desirability of ensuring equal access arrangements, - the need to maintain the integrity of the public telecommunications network and the  interoperability of services, - the nature of the request in relation to the resources available to meet the request, - the relative market positions of the parties, - the public interest (e.g. the protection of the environment), - the promotion of competition, - the need to maintain a universal service. A decision on the matter by a national regulatory authority shall be made available to the public  in accordance with national procedures. The parties concerned shall be given a full statement of  the reasons on which it is based. 6. In cases where organizations which are authorized to provide public telecommunications networks  and/or publicly available telecommunications services have not interconnected their facilities,  national regulatory authorities, in compliance with the principle of proportionality and in the  interest of users, shall be able, as a last resort, to require the organizations concerned to  interconnect their facilities in order to protect essential public interests and, where  appropriate, shall be able to set terms of interconnection. Article 10Essential requirements Without prejudice to action which may be taken in accordance  with Articles 3 (5) and 5 (3) of Directive 90/387/EEC, the essential requirements as specified in  Article 3 (2) of Directive 90/387/EEC shall for the purpose of this Directive apply to  interconnection to public telecommunications networks and/or publicly available telecommunications  services as set out in points (a) to (d) of this Article. Where the national regulatory authority imposes conditions based on essential requirements in  interconnection agreements, these conditions shall be published in the manner laid down in Article  14 (1). (a) Security of network operations: Member States shall take all necessary steps to ensure that the  availability of public telecommunications networks and publicly available telecommunications  services is maintained in the event of catastrophic network breakdown or in exceptional cases of  force majeure, such as extreme weather, earthquakes, flood, lightning or fire. In the event of the circumstances referred to in the first subparagraph, the bodies concerned shall  make every endeavour to maintain the highest level of service to meet any priorities laid down by  the competent national authorities. The need to meet these requirements shall not constitute a valid reason for refusal to negotiate  terms for interconnection. Furthermore, the national regulatory authority shall ensure that any conditions for interconnection  related to the security of networks as regards risk of accidents are proportionate and  non-discriminatory in nature, and are based on objective criteria identified in advance. (b) Maintenance of network integrity: Member States shall take all necessary steps to ensure that  the integrity of public telecommunications networks is maintained. The need to maintain network  integrity does not constitute a valid reason for refusal to negotiate terms for interconnection.  The national regulatory authority shall ensure that any conditions for interconnection related to  protection of network integrity are proportionate and non-discriminatory in nature, and are based  on objective criteria identified in advance. (c) Interoperability of services: Member States may impose conditions in interconnection agreements  in order to ensure interoperability of services, including conditions designed to ensure  satisfactory end-to-end quality. Such conditions may include implementation of specific technical  standards, or specifications, or codes of conduct agreed by the market players. (d) Protection of data: Member States may impose conditions in interconnection agreements in order  to ensure the protection of data, to the extent necessary to ensure compliance with relevant  regulatory provisions on the protection of data including protection of personal data, the  confidentiality of information processed, transmitted or stored, and the protection of privacy,  compatible with Community law. Article 11Collocation and facility sharing Where an organization providing public  telecommunications networks and/or publicly available telecommunications services has the right  under national legislation to install facilities on, over or under public or private land, or may  take advantage of a procedure for the expropriation or use of property, national regulatory  authorities shall encourage the sharing of such facilities and/or property with other organizations  providing telecommunications networks and publicly available services. Agreements for collocation or facility sharing shall normally be a matter for commercial and  technical agreement between the parties concerned. The national regulatory authority may intervene  to resolve disputes, as provided for in Article 9. In particular, Member States may impose facility and/or property sharing arrangements (including  physical collocation) only after an appropriate period of public consultation during which all  interested parties must be given an opportunity to express their views. Such arrangements may  include rules for apportioning the costs of facility and/or property sharing. Article 12Numbering 1. Member States shall ensure the provision of adequate numbers and  numbering ranges for all publicly available telecommunications services. 2. In order to ensure full interoperability of Europe-wide networks and services, Member States  shall take all necessary steps to ensure the coordination of their national positions in  international organizations and fora where numbering decisions are taken, taking into account  possible future developmens in numbering in Europe. 3. Member States shall ensure that national telecommunications numbering plans are controlled by  the national regulatory authority, in order to guarantee independence from organizations providing  telecommunications networks or 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 and non-discriminatory manner. National 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. 4. National regulatory authorities shall ensure that the main elements of the national numbering  plans, and all subsequent additions or amendments to them, are published in accordance with Article  14 (1), subject only to limitations imposed on the grounds of national security. 5. National regulatory authorities shall encourage the earliest possible introduction of the number  portability facility whereby end-users who so request can retain their number(s) on the fixed  public telephone network at a specific location independent of the organization providing service,  and shall ensure that this facility is available at least in all major centres of population before  1 January 2003. 6. National regulatory authorities shall ensure that numbering plans and procedures are applied in  a manner that gives fair and equal treatment to all providers of publicly available  telecommunications services. In particular, Member States shall ensure that an organization  allocated a range of numbers shall avoid undue discrimination in the number sequences used to give  access to the services of other telecommunications operators. Article 13Technical standards 1. Without prejudice to Article 5 (3) of Directive 90/387/EEC  whereby the implementation of specified European standards may be made compulsory, national  regulatory authorities shall ensure that organizations providing public telecommunications networks  or publicly available telecommunications services take full account of standards listed in the  Official Journal of the European Communities as being suitable for the purpose of interconnection. In the absence of such standards, national regulatory authorities shall encourage the provision of  technical interfaces for interconnection according to the standards or specifications listed  below: - standards adopted by European standardization bodies such as the European Telecommunications  Standards Institute (ETSI) or the European Committee for Standardization/European Committee for  Electrotechnical Standardization (CEN/Cenelec), or, in the absence of such standards, - international standards or recommendations adopted by the International Telecommunications Union  (ITU), the International Organization for Standardization (ISO) or the International  Electrotechnical Committee (IEC), or, in the absence of such standards, - national standards. 2. The Commission may, acting in accordance with the procedure laid down in Article 15, request  standards for interconnection and access to be drawn up, where appropriate, by European  standardization bodies. Reference to standards for interconnection and access may be published in  the Official Journal of the European Communities in accordance with Article 5 of Directive  90/387/EEC. Article 14Publication of and access to information 1. With regard to the information  identified in Article 7 (3), Article 9 (2), Article 10 and Article 12 (4), national regulatory  authorities shall ensure that up-to-date information is published in an appropriate manner in order  to provide easy access to that information for interested parties. Reference shall be made in the  national Official Gazette of the Member State concerned to the manner in which this information is  published. 2. With regard to the information identified in Article 4 (1), Article 5 (3), Article 5 (5),  Article 6 (c) and Article 9 (3), national regulatory authorities shall ensure that up-to-date  specific information referred to in those Articles is made available on request to interested  parties, free of charge, during normal working hours. Reference shall be made in the national  Official Gazette of the Member State concerned to the times and location(s) at which the  information is available. 3. Member States shall notify to the Commission before 1 January 1998 - and immediately thereafter  in case of any change - the manner in which the information referred to in paragraphs 1 and 2 is  made available. The Commission shall regularly publish a corresponding reference to such  notifications in the Official Journal of the European Communities. Article 15Advisory committee procedure 1. The Commission shall be assisted by the committee  set up by Article 9 (1) of Directive 90/387/EEC, hereinafter referred to as the 'ONP committee`. 2. 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. 3. 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. Article 16Regulatory committee procedure 1. Notwithstanding the provisions of Article 15, the  following procedure shall apply in respect of the matters covered by Article 19. 2. 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. The opinion shall be delivered by the majority  laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required  to adopt on a proposal from the Commission. The votes of the representatives of the Member States  within the committee shall be weighted in the manner set out in that Article. The chairman shall  not vote. 3. The Commission shall adopt the measures envisaged if they are in accordance with the opinion of  the committee. 4. If the measures envisaged are not in accordance with the opinion of the committee, or if no  opinion is delivered, the Commission shall, without delay, submit to the Council a proposal  relating to the measures to be taken. The Council shall act by a qualified majority. If on the expiry of a period of three months from the date of referral to the Council, the Council  has not acted, the proposed measures shall be adopted by the Commission. Article 17Conciliation procedure for disputes between organizations operating under  authorizations provided by different Member States 1. Without prejudice to: (a) any action that the Commission or any Member State may take pursuant to the Treaty; (b) the rights of the party invoking the procedure in paragraphs 2 and 3, of the organizations  concerned or of any other party under applicable national law; the procedure set out in paragraphs 2, 3 and 4 shall be available in the event of an  interconnection dispute between organizations operating under authorizations granted by different  Member States, where such dispute does not fall within the responsibility of a single national  regulatory authority exercising its power in accordance with Article 9. 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). 3. If the national regulatory authorities concerned do not agree between themselves on a solution  within six months of referral, the procedure provided for in paragraph 4 may be invoked by one of  them by way of a notification to the Commission, with copies to all the parties and national  regulatory authorities concerned. The solution shall have binding effect only if all parties are  agreed. 4. Following a notification to the Commission based on paragraph 3, the Commission shall refer the  matter to the chairman of the ONP committee. The chairman of the ONP committee shall convene as soon as possible a working group including at  least two members of the ONP committee and one representative of each of the national regulatory  authorities concerned and the chairman of the ONP committee or another official of the Commission  appointed by him. The working group shall normally meet within 10 days of the meeting being  convened. The chairman may decide, upon proposal of any of the members of the working group, to  invite a maximum of two other persons as experts to advise it. The working group shall give the party invoking the procedure, the national regulatory authorities  of the Member States and the organizations involved the opportunity to present their opinions in  oral or written form. The working group shall endeavour to reach agreement between the parties involved. The chairman  shall inform the ONP committee of the results of this procedure. Article 18Notification 1. Member States shall ensure that national regulatory authorities have  the necessary means for carrying out the tasks identified in this Directive, and shall notify to  the Commission by 31 January 1997 the national regulatory authorities responsible for those tasks. 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: - have universal service obligations for the provision of the public telecommunications networks  and publicly available telecommunications services set out in Part 1 of Annex I and which are  authorized to collect directly a contribution to the net cost of universal service under the  procedure in Article 5 (2), - are subject to the provisions of this Directive concerning organizations with significant market  power, - are covered by Annex II. The Commission may request national regulatory authorities to provide their reasons for classifying  an organization as having or not having significant market power. 3. The Commission shall publish the names referred to in paragraph 2 in the Official Journal of the  European Communities. Article 19Technical adjustment Modifications necessary to adapt Annexes IV, V and VII to the  Directive to new technological developments or to changes in market and consumer demand shall be  determined by the Commission in accordance with the procedure laid down in Article 16. Article 20Deferment 1. Deferment of the obligations under Articles 3 (1), 3 (2), 4 (1), 4 (2),  9 (1) and 9 (3) insofar as those obligations concern direct interconnection between the mobile  networks of that Member State and the fixed or mobile networks of other Member States, and under  Article 5, shall be granted to those Member States identified in the Council Resolutions of 22 July  1993 and 22 December 1994 which benefit from an additional transition period for the liberalization  of telecommunications services for as long as and to the extent that they avail themselves of such  transition periods. Member States shall inform the Commission of their intention to make use of  them. 2. Deferment of 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 organizations. 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 need to ensure a coherent regulatory environment at a  Community level, 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 21Interconnection with third-country organizations 1. Member States may inform the  Commission of any general difficulties encountered, de jure or de facto, by Community organizations  in interconnecting with organizations in third countries, which have been brought to their  attention. 2. Whenever the Commission is informed of the existence of such difficulties, the Commission may,  if necessary, submit proposals to the Council for an appropriate mandate for negotiation of  comparable rights for Community organizations in these third countries. The Council shall decide by  qualified majority. 3. Measures taken pursuant to paragraph 2 shall be without prejudice to the Community's and Member  States' obligations under relevant international agreements. Article 22Review 1. The Commission shall report to the European Parliament and to the Council  by 31 December 1997, and periodically thereafter, on the availability of rights to interconnect in  third countries for the benefit of Community organizations. 2. The Commission shall examine and report periodically 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. The report shall examine what provisions of this Directive should be adapted in the light of the  developments in the market, the evolution of technology and the changes in user demand, in  particular: (a) for the provisions under Article 5; (b) to confirm the timetable laid down in Article 12 (5). Article 23Transposition 1. Member States shall bring into force the laws, regulations and  administrative provisions necessary to comply with this Directive by 31 December 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 communicate to the Commission the texts of the main provisions of national  law which they adopt in the field covered by this Directive. Article 24Entry 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. Article 25Addressees This Directive is addressed to the Member States. Done at . . . For the European ParliamentThe PresidentFor the CouncilThe President(1) OJ  No C 313, 24. 11. 1995, p. 7. (2) Opinion delivered on 29 February 1996 (OJ No C 153, 28. 5. 1996, p. 21). (3) Opinion of the European Parliament of . . . (not yet published in the Official Journal),  Council common position of . . . (not yet published in the Official Journal) and Decision of the  European Parliament of . . . (not yet published in the Official Journal). (4) OJ No C 48, 16. 2. 1994, p. 1. (5) OJ No L 192, 24. 7. 1990, p. 1. (6) OJ No C 213, 6. 8. 1993, p. 1. (7) OJ No C 258, 3. 10. 1995, p. 1. (1) OJ No L 109, 26. 4. 1983, p. 8. Directive as last amended by Commission Decision 96/139/EC (OJ  No L 32, 10. 2. 1996, p. 31). (1) OJ No C 102, 4. 4. 1996, p. 1. (2) OJ No C 379, 31. 12. 1994, p. 4. ANNEX I SPECIFIC PUBLIC TELECOMMUNICATIONS NETWORKS AND PUBLICLY AVAILABLE  TELECOMMUNICATIONS SERVICES referred to in Article 3 (2)The following public telecommunications  networks and publicly available telecommunications services are considered of major importance at  European level. Organizations providing the public telecommunications networks and/or publicly available services  identified below which have significant market power are subject to specific obligations with  regard to interconnection and access, as specified in Articles 4 (2), 6 and 7. PART 1The fixed public telephone networkThe fixed public telephone network means the public  switched telecommunications network which supports the transfer between network termination points  at fixed locations of speech and 3,1 kHz bandwidth audio information, to support inter alia: - voice telephony, - facsimile group III communications, in accordance with ITU-T recommendations in the 'T-series`, - voice-band data transmission via modems at a rate of at least 2 400 bit/s, in accordance with  ITU-T recommendations in the 'V-series`. Access to the end-user's network termination point is via a number or numbers in the national  numbering plan. The fixed public telephone service according to Directive 95/62/EC of the European Parliament and  of the Council of 13 December 1995 on the application of open network provision (ONP) to voice  telephony (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  services, provision of public pay phones, provision of service under special terms and/or provision  of special facilities for customers with disabilities or with special social needs. Access to the end-user is via a number or numbers in the national numbering plan. PART 2The leased lines serviceLeased lines means the telecommunications facilities which provide  for transparent transmission capacity between network termination points, and which do not include  on-demand switching (switching functions which the user can control as part of the leased line  provision). They may include systems which allow flexible use of the leased line bandwidth,  including certain routing and management capabilities. PART 3Public mobile telephone networksA public mobile telephony network is a public telephone  network where the network termination points are not at fixed locations. Public mobile telephone servicesA public mobile telephone service is a telephony service whose  provision consists, wholly or partly, in the establishment of radiocommunications to one mobile  user, and makes use wholly or partly of a public mobile telephone network. (1) OJ No L 321, 30. 12. 1995, p. 6.  ANNEX II ORGANIZATIONS WITH RIGHTS AND OBLIGATIONS TO NEGOTIATE INTERCONNECTION WITH  EACH OTHER IN ORDER TO ENSURE COMMUNITY-WIDE SERVICES referred to in Article 4 (1)This Annex  covers those organizations which provide switched and unswitched bearer capabilities to users upon  which other telecommunications services depend. Organizations in the following categories have both rights and obligations to interconnect with  each other, in accordance with Article 4 (1). Interconnection between these organizations is  subject to additional supervision by national regulatory authorities, in accordance with Article 9  (3). Special interconnection charges, terms and conditions may exist for these categories of  organizations in accordance with Article 7 (3). 1. Organizations which provide fixed and/or mobile public switched telecommunications networks  and/or publicly available telecommunications services, and in so doing control the means of access  to one or more network termination points identified by one or more unique numbers in the national  numbering plan (see notes below). 2. Organizations which provide leased lines to users' premises. 3. Organizations which are authorized in a Member State to provide international telecommunications  circuits between the Community and third countries, for which purpose they have exclusive or  special rights. 4. Organizations providing telecommunications services which are permitted in this category to  interconnect in accordance with relevant national licensing or authorization schemes. NotesControl of the means of access to a network termination point means the ability to control  the telecommunications services available to the end-user at that network termination point and/or  the ability to deny other service providers access to the end-user at that network termination  point. Control of the means of access may entail ownership or control of the physical link to the end-user  (whether wire or wireless), and/or the ability to change or withdraw the national number or numbers  needed to access an end-user's network termination point. ANNEX III CALCULATING THE COST OF UNIVERSAL SERVICE OBLIGATIONS FOR VOICE TELEPHONY  referred to in Article 5 (3)Universal service obligations refer to those obligations placed upon  an organization by a Member State which concern the provision of a network and service throughout a  specified geographical area, including - where required - averaged prices in that geographical area  for the provision of that service. The cost of universal service obligations shall be calculated as the difference between the net  cost for an organization of operating with the universal service obligations and operating without  the universal service obligations. This applies whether the network in a particular Member State is fully developed or is still  undergoing development and expansion. The calculation shall be based upon the costs attributable to: (i) elements of the identified services which can only be provided at a loss or provided under cost  conditions falling outside normal commercial standards. This category may include service elements such as access to emergency telephone services,  provision of certain public pay telephones, provision of certain services or equipment for disabled  people, etc.; (ii) specific end-users or groups of end-users who, taking into account the cost of providing the  specified network and service, the revenue generated and any geographical averaging of prices  imposed by the Member State, can only be served at a loss or under cost conditions falling outside  normal commercial standards. This category includes those end-users or groups of end-users which would not be served by a  commercial operator which did not have an obligation to provide universal service. In peripheral regions with expanding networks, the cost calculation should be based on the  additional cost of serving those end-users or groups of end-users which an operator applying the  normal commercial principles of a competitive environment would choose not to serve. Revenues shall be taken into account in calculating the net costs. Costs and revenues should be  forward-looking. ANNEX IV LIST OF EXAMPLES OF ELEMENTS FOR INTERCONNECTION CHARGES referred to in  Article 7 (3)Interconnection charges refer to the actual charges payable by interconnected  parties. The tariff structure refers to the broad categories into which interconnection charges are divided,  e.g. - charges to cover initial implementation of the physical interconnection, based on the costs of  providing the specific interconnection requested (e.g. specific equipment and resources,  compatibility testing), - rental charges to cover the on-going use of equipment and resources (connection maintenance,  etc.), - variable charges for ancillary and supplementary services (e.g. access to directory services,  operator assistance, data collection, charging, billing, switch-based and advanced services,  etc.), - traffic related charges, for the conveyance of traffic to and from the interconnected network  (e.g. the costs of switching and transmission), which may be on a per minute basis, and/or on the  basis of additional network capacity required. Tariff elements refer to the individual prices set for each network component or facility provided  to the interconnected party. Tariffs and charges for interconnection must follow the principles of cost orientation and  transparency, in accordance with Article 7 (2). Interconnection charges may include a fair share, according to the principle of proportionality, of  joint and common costs and the costs incurred in providing equal access, and number portability,  and the costs of ensuring essential requirements (maintenance of the network integrity, network  security in cases of emergency, interoperability of services, and protection of data). ANNEX V COST ACCOUNTING SYSTEMS FOR INTERCONNECTION referred to in Article 7  (5)Article 7 (5) calls for details of the cost accounting system; the list below indicates, by way  of example, some elements which may be included in such accounting systems. The purpose of publishing this information is to provide transparency in the calculation of  interconnection charges, so that other market players are in a position to ascertain that the  charges have been fairly and properly calculated. This objective should be taken into account by the national regulatory authority and the  organizations affected when determining the level of detail in the information published. The list below indicates the elements to be included in the information published. 1. The cost standard usedFor example, fully distributed costs, long-run average incremental costs,  marginal costs, stand-alone costs, embedded direct costs, etc., including the cost base(s) used, i.e. historic costs (based on actual expenditure incurred for equipment and systems) or  forward-looking costs (based on estimated replacement costs of equipment or systems). 2. The cost elements included in the interconnection tariffIdentification of all the individual  cost components which together make up the interconnection charge, including the profit element. 3. The degrees and methods of cost allocation, in particular the treatment of joint and common  costsDetails of the degree to which direct costs are analysed, and the degree and method by which  joint and common costs are included in interconnection charges. 4. Accounting conventionsi.e. the accounting conventions used for the treatment of costs  covering: - the timescale for depreciation of major categories of fixed asset (e.g. land, buildings,  equipment, etc.)- the treatment, in terms of revenue versus capital cost, of other major  expenditure items (e.g. computer software and systems, research and development, new business  development, direct and indirect construction, repairs and maintenance, finance charges, etc.)The  information on cost accounting systems, as identified in this Annex, may be amended in accordance  with the procedure referred to in Article 19. ANNEX VI THRESHOLDS FOR TELECOMMUNICATIONS TURNOVER referred to in Article 8 (1) and 8  (2)Part 1 - The threshold for annual turnover in telecommunications activities referred to in  Article 8 (1) shall be ECU 50 million. Part 2 - The threshold for annual turnover in telecommunications activities referred to in Article  8 (2) shall be ECU 20 million. ANNEX VII FRAMEWORK FOR NEGOTIATION OF INTERCONNECTION AGREEMENTS referred to in  Article 9 (2)PART 1Areas where the national regulatory authority may set ex ante conditions(a)  Dispute resolution procedure(b) Requirements for publication/access to interconnection agreements  and other periodic publication duties(c) Requirements for the provision of equal access and number  portability(d) Requirements to provide facility sharing, including collocation(e) Requirements to  ensure the maintenance of essential requirements(f) Requirements for allocation and use of  numbering resources (including access to directory services, emergency services and pan-European  numbers)(g) Requirements concerning the maintenance of end-to-end quality of service(h) Where  applicable, determination of the unbundled part of the interconnection charge which represents a  contribution to the net cost of universal service obligations. PART 2Other issues the coverage of which in interconnection agreements is to be encouraged(a)  Description of interconnection services to be provided(b) Terms of payment, including billing  procedures(c) Locations of the points of interconnection(d) Technical standards for  interconnection(e) Interoperability tests(f) Measures to comply with essential requirements(g)  Intellectual property rights(h) Definition and limitation of liability and indemnity(i)  Definition of interconnection charges and their evolution over time(j) Dispute resolution  procedure between parties before requesting national regulatory authority intervention(k) Duration  and renegotiation of agreements(l) Procedures in the event of alterations being proposed to the  network or service offerings of one of the parties(m) Achievement of equal access(n) Provision of  facility sharing(o) Access to ancillary, supplementary and advanced services(p) Traffic/network  management(q) Maintenance and quality of interconnection services(r) Confidentiality of  non-public parts of the agreements(s) Training of staff  STATEMENT OF THE COUNCIL'S REASONS I. INTRODUCTION 1. On 31 August 1995, the Commission  submitted a proposal on interconnection in telecommunications with a view to ensuring universal  service and interoperability through application of the principles of open network provision  (ONP). The proposal is based on Article 100a of the EC Treaty. 2. The European Parliament delivered its first-reading opinion on 14 February 1996. The Economic and Social Committee delivered its opinion on 28 February 1996. In the light of those opinions, the Commission submitted an amended proposal on 20 March 1996. 3. The Council adopted its common position, under Article 189b of the Treaty, on 17 June 1996. II. OBJECTIVE With an entirely open market in prospect for 1998, the proposal sets out to  establish in a harmonized manner the interconnection principles to be applied in the Member States  in order to ensure free access to telecommunications networks and services for new entrants to the  market and for customers as well as more generally for all actual and potential users. III. THE COMMON POSITION 1. General commentsThe Council considers that the compromise underlying  its common position is in line with the objectives of the Commission proposal and in particular  provides an appropriate harmonized environment for interconnection. With particular regard to the amendments put forward by the European Parliament the Council has in  very many cases followed the line taken by the Commission as reflected in its amended proposal. Where it has been prompted to make changes to the Commission proposal as well as in its attitude  towards the European Parliament amendments, the Council has chiefly been concerned to: - ensure consistency with other relevant Community provisions, in particular the Directives on the  application of open network provision (ONP) (e.g. as regards the procedure applicable for the  committee), - clarify the scope of certain provisions (e.g. by extending universal service cost-sharing to  organizations providing voice telephony services available to the public), - simplify the drafting of the Directive or introduce greater flexibility in the planned  provisions. 2. Specific comments(i) The Council has included in its common position the following European  Parliament amendments: - 12, first part, 24, 28, 42, 45, second part, 52, 56, first and second parts, 58 and 68. The Council has also accepted the following amendments either in spirit but with a different  wording or for part only of their content: - 15, second part (covered by the 13th recital), 23, 26, second and fourth parts (covered by Annex  IV), 37, 63, 64, 65, 66 and 67. (ii) On the other hand, the Council was unable to go along with the Commission on the following  amendments proposed by the European Parliament: Amendment 14 (Article 3 (1))The Council took the view that this amendment does not reflect the  spirit of the proposal for a Directive of the European Parliament and of the Council on a common  framework for general authorizations and individual licences in the field of telecommunications  services, submitted by the Commission in January 1996.Amendments 20 (Article 5 (5)) and 22 (Article 6, first paragraph)The differences between the  wording of these amendments and that of the common position are mainly a matter of drafting. Amendment 29 (Article 7 (5a))This amendment was omitted mainly in order to simplify the text of  the Directive, as the Council took the view that the Commission in any event continues to be vested  with powers of its own, as conferred on it by the Treaty and by secondary legislation. Amendment 32 (Article 7 (8))The Council deleted Article 7 (8) in the interests of simplification.  It took the view that, under the powers of its own conferred on it by the Treaty to watch over the  implementation of this Directive, the Commission in any event retains the right to request that  published interconnection charges, terms and conditions as well as charges related to the sharing  of the cost of universal service obligations be made available to the ONP committee. Amendment 36 (Article 8 (3a))The Council took the same attitude towards this amendment as towards  amendment 29. Amendment 40 (Article 9 (1)) and 43 (Article 9 (6a))The Council felt that the responsibilities to  be assigned to national regulatory authorities under these amendments were inappropriate in this  Directive. Amendment 44 (Article 10 (da))The Council did not accept this amendment since environmental  protection is not regarded as an essential requirement under Directive 90/387/EEC on open network  provision in telecommunications. However, the Council felt that the European Parliament's concern  in this respect was to a large extent accommodated in Article 11 of the common position, concerning  collocation and facility sharing. Amendment 46 (Article 12 (2))The Council took the view that it was very hard for Member States to  ensure that national positions were in fact coordinated in international organizations and forums;  all Member States could do was to take the necessary steps to arrive at such coordination. Amendment 47 (Article 12 (3))The Council was unable to go along with the European Parliament's  suggestion that a link be established between having national telecommunications numbering plans  controlled by national regulatory authorities and facilitating telephone number 'portability`. Amendments 48 (Article 12 (5)) and 53, second part (former Article 19, new Article 20)The issue of  portability of telephone numbers gave rise to detailed discussion in the Council on account of the  high cost that the introduction of this service could impose on operators. Following those discussions, the following course was taken: - the aim remains to have the service in question available in all major centres of population by 1  January 2003 (Article 12 (5)), with the Commission being able to allow deferment at the request of  Member States if they can prove that an excessive burden would be imposed on certain organizations  (Article 20 (2)), - that timetable is open to amendment, under the procedure in Article 100a, in the light of the  report to be submitted to the European Parliament and the Council by the Commission before 31  December 1999 (Article 22 (2)). In the Council's view, this course strikes a balance between the interests of users and the costs  generated by this service. Amendments 49 and 51 (former Article 16 (2) and (5), new Article 17 (2), (3) and (4))With regard  to cross-border disputes, the Council thought it wise to make provision at Community level for a  conciliation procedure similar to that already established under Directives 92/44/EEC and 95/62/EC  on the application of ONP principles to leased lines and to voice telephony respectively, on the  grounds that such a procedure safeguards the interests of each of the parties to a dispute. Amendment 53 (former Article 19, new Article 20)Although differently worded from the amended  Commission proposal, Article 20 in essence reflects the European Parliament's concern since it  establishes a direct link between the additional transitional period allowed for some Member States  to liberalize telecommunications services and the deferment for those States of certain obligations  under the Directive. Amendment 56, third part (former Article 21 (2), new Article 22 (2))The Council took the view that  the reference to the possibility of establishing a European regulatory authority was inappropriate  in this Directive. (iii) It should also be noted that the Council has included in its common position a number of new  provisions as compared with the Commission proposal and European Parliament's amendments. The main points in question are as follows: Article 2 (1): definitionsThe definitions of interconnection in (a) and telecommunications  services in (d) have been redrafted in more precise terms. Article 3 (2): interconnection principlesThe scope of this Article has been extended to include  public mobile telephone networks. Article 4 (2): rights and obligations for interconnectionThe common position stipulates that  organizations deemed to have significant market power must meet 'all reasonable requests for access  to the network`. Article 4 (3): definition of an organization having significant market powerFor reasons of legal  certainty, the Council considered that what was meant by an organization having significant market  power should be defined in an Article and not merely in a recital. This wording, making for more  flexible application, does not, however, fundamentally alter the Commission's original proposal. Article 5 (1): universal serviceThe Council thought it appropriate to include organizations  providing voice telephony services available to the public among the potential contributors to the  cost of universal service obligations. Article 7: principles for interconnection charges and cost accounting systemsIn paragraph 2 the  principles of transparency and cost orientation have also been extended to organizations providing  public mobile telephone networks and services which have significant market power. Paragraph 3, as amended, allows a number of different tariffs, terms and conditions for  interconnection to be set for different categories of organizations. Paragraph 5 has been reworded to bring it into line with the Directive on ONP in voice telephony  (Article 13 (2)). Article 8: accounting separation and financial accountsParagraph 1 allows Member States to require  structural separation for telecommunications activities in the case of organizations which in  addition have special or exclusive rights for the provisions of other services in other sectors. The provisions of paragraph 2 have been confined to organizations referred to in Annex I, Parts 1  and 2, which have significant market power. Article 9 (2): general responsibilities of the national regulatory authoritiesFor interconnection  between organizations identified in Annex II, paragraph 2 allows national regulatory authorities to  set ex ante conditions in the areas listed in Annex VII. Article 10 (a) and (b): essential requirementsThe reference to specific compensation conditions  has been deleted. Article 13 (1): technical standardsThe reference to specifications having a wide acceptance within  industry and developed by international industry bodies has been deleted. Article 14 (2): publication of and access to informationParagraph 2 stipulates (for the  information determined in Articles 4 (1), 5 (5), 6, 7 (3) and 9 (3)) that up-to-date information  must be made available on request to interested parties without chargeArticle 16: regulatory  committeeFor the adaptation to technical progress of Annexes IV, V and VII, the Council has laid  down a type-III(a) regulatory committee procedure in order to be consistent with the other ONP  Directives already providing for that procedure. Article 19: technical adjustmentArticle 19 applies only to Annexes IV, V and VII as the Council  considered that amendments to the other Annexes, given their link with the scope of the Directive,  could not be made under a committee procedure. Article 22: review of implementationThe common position stipulates that such review is to consider  in particular two important provisions of the Directive, in order to ascertain whether they should  be adapted in the light of market developments, technological progress and changes in user demand. The provisions in question are those on universal service (Article 5) and the date of 1 January  2003 for the introduction of the number portability service in major population centres (Article 12  (5)). Annex I, Part 1: fixed public telephone networkThe definition of the fixed public telephone  service has been extended to include the provision of special facilities to meet specific social  needs. Annex II: organizations with rights and obligations to negotiate interconnectionFurther details  have been included as regards the description of categories 3 and 4.