COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on "The Implications of the Information Society for European Union Policies - Preparing the next steps"
Date: 1996-07-24
Institutions: European Commission
Subjects: action programme, information policy, information technology, single market, telecommunications

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels, 24.07.1996 
C()M(%)  395  final 

COMMUNICATION  FROM THE  COMMISSION 

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

The Information Society: From Corfu to Dublin 
The new emerging priorities 

COMMUNICATION  FROM THE  COMMISSION 

TO THE  COUNCIL,  THE  EUROPEAN  PARLIAMENT, 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
AND THE  COMMITTEE  OF THE  REGIONS 
on 
"The Implications of the Information  Society 
for European Union Policies 

Preparing the next steps" 

COMMUNICATION  FROM THE COMMISSION 
to the Council, the European Parliament, the Economic 
and Social Committee and the Committee of the Regions. 
on 
The Information Society: From Corfu to Dublin 
The new emerging priorities 

1. 

The  principle  of  an  Information  Society  Council  was  established  by  the  Corfu 
Summit  24/25  June  1994  on  the basis  of  the conclusions  of  the Bangemann report 
"Europe  and  the  global  information  society".  The  Summit  considered  "that  the 
importance and complexity of the issues raised by the new information society justify 
the setting  up of  a permanent co-ordination instrument...with a  view  inter alia  to 
ensuring a  co-ordinated approach in the  Council. "  The  Corfu  Council  invited  the 
Commission  to set up an Action Plan covering  the  measures  needed  at Community 
level. 

The  Action  Plan  -  adopted  on  19  July  1994  and  entitled  "Europe's  way  to  the 
Information  Society" - was discussed  in the first  Information  Society  Council  on 28 
September  1994.  The  Council  invited  the  Commission  to  take  up  a  number  of 
measures  in  fields  outlined  in  the Action  Plan.  The guidance  given  by  the  Council 
liberalisation  of 
provided 
telecommunications. 

impulse  towards  the 

in  particular  an 

important 

The  Action  Plan  has  successfully  established  a  first  framework  for  the  European 
Union  information  society policy.  On this basis,  good progress has been  made over 
the past two years: 

As  regards  the  legislative  framework,  the  Commission  has  presented  a 
complete reform package leading  to full  liberalisation  in  telecommunications 
by  1st of January  1998.  The fourth  Framework  Programme on research and 
technological  development 
it 
information  and 
incorporates 
communication  technologies.  Several measures aimed at increased awareness 
building  have  been  launched.  The  G7  Conferences  held  in  Brussels  in 
February  1995 and in  South Africa  in  May  1996  also  contributed  to raising 
awareness. 

is  succesfully  being 
three  specific  programmes  related 

implemented  and 
to 

Most of the measures outlined in the Action Plan have either been realised or 
are being launched.  However,  some actions are pending  as their preparation 
takes more time than expected, e.g.  information  security. 

Valuable  experience  has been  gained  in  the process  of  the implemention  of 
the Action Plan. The Commission has now a more comprehensive picture of 
the  measures  necessary  to  achieve  the  objectives  of  its  information  society 

policy.  In  addition  new  questions  and  issues  have  emerged.  It  is  therefore 
time to review  the Action  Plan  in order to give the information  society  a new 
political  impetus.  This  is  the  objective  of  the  Information  Society  Council 
on  8 October  1996. 

2. 

Four  main policy lines have been identified  as priorities of equal  importance: 

(i) Improving the Business environment 
European  businesses have started  to adapt to the increasing  competitive pressure and 
to grasp the enormous opportunities of  the information  society.  But for  this  difficult 
exercise they  need  a  favourable  business  environment.  This  means  in particular  that 
full  telecommunication  liberalisation  must  be  effectively  implemented  throughout 
the  European  Union  by  the  1st  of  January  1998.  It  also  means  that  increased 
transparency  and  consistency  of  national  regulation  related  to  information  society 
services  is  needed  to  ensure  fair  competition  and  the  functioning  of  the  internal 
market.  Finally,  more  attention  needs  to  be  given  to  the  speedy  take-up  of 
information  and  communication  technologies  by  the various  sectors  of  the  economy 
including  SMEs. 

(ii) Investing in the  future 
The  information  society  means  a  knowledge-based  society.  In  order  to  enhance 
Europe's  knowledge-base,  information  society  related  research  should  have  a  key 
role  in  the  5th  Framework  Programme  as  stated  in  the  first  orientations  that  the 
Commission  adopted  on  10 July  1996.  The  Commission  will  elaborate  appropriate 
measures  to  respond  to  the  invitation  of  the  European  Summit  at  Florence  "to 
rapidly  work  out  an  action  plan  on  the  initiative  'Learning in  the Information 
Society". 

(iii) People at the centre 
Putting  people  at  the  centre  of  the  information  society  policy  is  a  Commission 
priority,  i.e.  to  respond  better  to  their  expectations  and  concerns  on  issues  such  as 
access  to a  wide  range  of  services  and  content.  In  practice  the  Commission  intends 
to  advance  towards  a  closer  integration  of  Structural  Funds  and  the  information 
society  policies  to  address  social  questions,  to  protect  consumer  interests  and  to 
improve the quality of public  sector services. 

(iv) Meeting the global  challenge 
Increasing  globalisation  means  effort  should  be  put  on  defining  global  rules.  The 
Commission  considers  the completion  of  the WTO  negotiations  highly  important  in 
this  respect.  An  information  society  of  a  truly  global  nature  means  increasing 
collaboration  with our neighbours and  helping  integrate the developing  world  to the 
information  society of the 21st century. 

3. 

The  Commission  hereby  submits  the  following  documents  to  begin  responding  to 
some of these new political priorities: 

(i)  A  Communication  on  "The  implications of  Information  Society  on European 
Union  Policies  -  Preparing  the  Next  Steps".  This  is  of  particular  political 
importance  as  it  lays  the  foundation  for  adapting 
the  Action  Plan  which  the 
Commission will carry out by the end of this year in order to take into account new 
strategic priorities. 

(ii) A Green Paper on  "Living and Working  in the Information Society: People  first" 
which is intended to deepen the political,  social and civil dialogue on the most 
important social and societal aspects of the information  society. 

(iii)  A  Communication  on  "Standardisation  in  the  Information  Society" examines 
how, 
in  the  light  of  the  characteristics  of  the  ICT  market  and  the  ICT 
standardisation  process,  the best possible conditions  can be created  for  the drawing 
up of the standards needed for the implementation of the information  society. 

(iv)  A  draft  directive  on  "Regulatory Transparency in  the  Internal  Market  for 
Information Society services " which sets up an information  mechanism on legislative 
initiatives of the Member States. 

The Commission  invites  the Council,  the European  Parliament,  the Economic and 
Social  Committee and the Committee of  the Regions to give  their opinion  on these 
key  policy  orientations  in  order  to  prepare  a  revised  Action  Plan  in  time  for  the 
Dublin European Council. 

COMMUNICATION  FROM  THE  COMMISSION 

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

on 
"The Implications of the Information  Society 
for European Union Policies 

Preparing the next steps" 

1. 

2. 

INTRODUCTION 

FUTURE POLITICAL PRIORITIES 

2.1. 

Improving the Business Environment 

a. Making a Success of 1998 
b. Making the Internal Market Real 

c. Facilitating Industrial Change 

2.2. 

Investing in the Future 

a. Enhancing our Knowledge Base 
b. Improving Education and Training 

c. Addressing Sustainable Development 

2.3. 

People at the Centre 

a. Enhancing European Integration 
b. Protecting Consumer Interests 
c. Improving Public Sector  Services 
d. Ensuring Cultural Diversity 
2.4.  Meeting the Global Challenge 

a. Defining Global Rules 
b. Collaborating with our Neighbours 
c. Improving Global Integration 

3. 

THE NEXT  STEPS 

1c 

The information  society  has in recent  years  moved  to  the top  of the  European  Union 
political  agenda. This development  is an explicit  recognition  of the important  role that 
new  applications  and  services  can  play  in  addressing  the  challenges  of  global 
competitiveness  and  employment.  The  information  and  communication  industries  are 
the fastest  growing of the world, growing at an annual rate of 7 to 8 % per year. Their 
contribution  of world gross domestic product  is expected  to  double by the year  2000 
to  approximately  10  %.  This  situation  is  matched  in  Europe  with  very  strong 
opportunities  for  broadcasting,  computers  software,  electronics,  publishing  and 
telephone companies. Whilst Europe is strong in some segments of the market, we are 
still lagging the United  States and Japan in several key areas. It  is absolutely  essential 
for  the future  of all  sectors  of the  economy  and for  Community  citizens  that  Europe 
succeeds in these sectors. 

A  comprehensive  European  Union  information  society  strategy  was  launched  in  July 
1994  with  the  submission  by  the  European  Commission  of  an  Action  Plan  entitled 
nEurope's Way towards  the  Information Society1". The  Action  Plan,  provides  the 
European  Union  with  an  integrated  information  society  framework  encompassing  a 
number  of  key European  Union  policy  areas,  including  telecommunications,  research 
and  development,  innovation,  competition,  SMEs,  economic  and  social  cohesion, 
audio-visual, international relations and culture. 

While the  goals  outlined  in the  Action  Plan  remain  valid,  the  pervasive  nature  of  the 
information  society  and  recent  global  developments  require  the  updating, 
the 
reinforcing  and  re-adjusting  of  actions  already  undertaken  and 
incorporation  of the  information  society  dimension  in  policy  areas  not  originally 
addressed  in the Action Plan. In addition, the multifaceted  nature of the  information 
society implies a need for greater policy co-ordination between the various Community 
policies and between the Communities different  instruments and funding  mechanisms. 

Against this background, the objective of this Communication  is to indicate the impact 
of  the  information  society  on  European  Union  policies,  thereby  highlighting  future 
priorities. 

2.1. IMPROVING THE BUSINESS ENVIRONMENT 

The information  society is rapidly and radically changing the business environment  and 
putting  additional  competitive  pressure  on European  industry.  Europe  must  not  miss 
the  chance  to  increase  its  competitiveness  and  therefore  improve  the  employment 
situation.  European  businesses  have  started  adapting  to  the  new  situation  and  have a 
good basis of workforce,  capital and technology.  Coping with the changes however is 
a complex issue where no pre-defined  solutions exist and therefore  it is highly risky. In 
order  to  undertake  the  necessary  adjustments,  European  businesses  need  a  clear  and 
predictable framework  that will enable them to take full  advantage  of the  new  market 
potential 

^ OM (94) 347 

a.  Making  a Success  of  1998 

The  establishment,  by  1st  January  1998,  of  a  new  regulatory  framework 
for 
telecommunications  based  on  full  liberalisation,  will  play  a vital  role  in unleashing  the 
private  investments  required  to  create  the  communication  infrastructure  necessary  for 
the  development  of  the  information  society  in  Europe.  Competition  is  necessary  to 
improve  the  quality  of  communication  services,  drastically  reduce  prices  and  trigger 
the emergence  of a plethora of new  services. 

The  European  Council  at Florence  underlined  the  importance  of  liberalisation  and  the 
creation  of  an  internal  market  for  telecommunications.  It  invited  the  Council  of 
Ministers to move further on the way towards liberalisation. 

The  Commission  and  Member  States  have  already  made  substantial  progress  in 
liberalising  a number  of  major  market  segments  ahead  of  1998.  These  include  mobile 
and satellite  communications,  use  of  cable television  networks  for  telecommunications 
as well  as  of  alternative  infrastructure  for  already  liberalised  services  as  of  1 st  of July 
1996. 

Certain Member  States  have  asked  for  derogations2  from  the  scheduled  timetable  for 
the introduction  of full  competition.  The Commission is considering these  requests and 
the  decisions  on  these  derogations,  will  be  taken  following  a  public  consultation 
process3. However,  given the importance of a liberalised telecommunications  sector for 
the  whole  economy,  those  Member  States  which  have  requested  derogations  are 
invited to shorten the period or where not justified, to renounce them. 

Making  a  success  of  1998  depends  not  only  on  the  timely  adoption  of  the  regulatory 
framework  but,  more and more,  on its effective  implementation.  Incomplete,  divergent 
or  late  transposition,  as  well  as  inefficient  application  of  the  regulatory  package  at 
Member  State  level,  could  lead  to  distortions  of both  competition  and  the  functioning 
of  the  internal  market.  National  Regulatory  Authorities  will  need  the  resources  and 
independent  authority to  assume their full  role in this respect.  The  changes to  be  faced 
parallel  in  many  ways  theses  faced  in  implementing  the  single  market.  Another 
important  element  is  the  assessment  under  competition  law  of  the  behaviour  of  the 
dominant  telecommunications  operators  in  the  run  up  to  the  1998  deadline.  This 
concerns,  in particular,  alliances, agreements and pricing strategies. 

Telecommunications  is by definition  a sector that  is trans-border,  so  in addition to  the 
minimum  harmonisation  measures,  additional  co-ordination  between  the  relevant 
regulatory  authorities  is  necessary.  Particularly  in  the  fields  of  licensing,  frequency 
allocation,  numbering  and  external  relations  (e.g.  with  respect  to  the  International 
Telecommunications  Union)  the  need  for  intensified  co-ordination  is already  becoming 
evident.  The  European  Union  should  be  prepared  to  assume  its  responsibility  in  this 
context.  The  Commission  is  also  examining  to  what  extent  it  may  be  necessary  to 
create a telecommunications  regulatory function  at European Union level. 

2  Greece, Ireland, Luxembourg and Portugal  have asked for derogations. 
3  This consultation will respect the usual Community principle of  confidentiality 

b. Making the Internal Market Real 

The  new  information  society  products  and  services  require  the  scale  of  the  Internal 
Market  to  develop to their  full  potential.  The Commission  must  therefore  continue  its 
efforts  in  safeguarding  and  improving  the  proper  functioning  of  the  Internal  Market. 
Remaining barriers should be removed by directly applying the principles of the Treaty, 
in particular the free circulation of goods (art.30), the free  provision of services(art.59) 
and the freedom  of establishment  (art. 52). The Commission's aim is to ensure that any 
possible  regulatory  response  to  the  new  services,  aimed  at  the  protection  of  general 
interest objectives4 is carried out in the framework  of the Internal Market. 

New  applications  and  services are developing very fast  and  it  is impossible to  predict 
which one will eventually find a market.  Over-hasty legislation  should be avoided until 
it is clear where and what type of intervention is required. In addition, it is important to 
remove  or  prevent  existing  or  emerging  obstacles  which  may  inhibit  businesses  from 
taking  new  initiatives  and  committing  investments  to  them.  To  this  end,  the 
Commission is analysing potential barriers for certain new information  society products 
and services, e.g. electronic commerce. 

inconsistent  national  legislation 

Member  States  are  currently  undertaking  to  update  their  legislative  framework  in 
response to  real,  sometimes politically heightened  pressure.  Such actions  could  result 
in 
thereby  hindering  the  transborder  provision  of 
goods and services. In this context, to counter any threat to the integrity of the Internal 
Market, the Commission is proposing a directive concerning a regulatory  transparency 
mechanism  to  cover  information  society  services.  This  is  aimed  at  ensuring  the 
coherence  and  flexibility  of  national  regulatory  measures  while  at  the  same  time 
minimising the risk of over-regulation  at Community level. 

In certain areas, it might be necessary to establish regulation  at Community level, with 
the  objective  of  ensuring  that  information  society  products  and  services  benefit  fully 
from the  advantages  offered  by  an  area  without  internal  frontiers.  Such  a  regulatory 
framework would  also protect  and  stimulate creativity and  innovation.  Certain  aspects 
of that regulatory framework  are already underway5.  The need for the establishment  of 
a  consolidated 
for 
the 
telecommunications is also currently being examined. 

society  and 

information 

framework 

legislative 

for 

An  additional  new  challenge  for  the  regulatory  framework  will  be  the  emerging 
information 
technological  convergence  between 
services  and  broadcasting.  The  Commission  is currently  analysing  the  problem  of  the 
lack of relevant consistency with respect to the existing legal  frameworks. 

telecommunications,  electronic 

User confidence  must  be ensured  in order to  achieve  a wider  use  of the new  services 
for  commercial  transactions  as well  as  for  the  transmission  of  official  documents.  At 
the  same time,  this  is  also  in  the  interest  of  the  business  world,  since  increased  user 
to  ensure  privacy, 
increased  demand.  Therefore,  means 
confidence  means 

4such  as  the  protection  of  privacy,  the  protection  of  minors,  consumer  protection,  morality  issues, 
public  health,  the  protection  of  intellectual  property  rights,  professional  ethics,  the  dissemination  of 
culture, the protection of pluralism, etc. 
5  Relevant  Green  Papers  adopted  by  the  Commission  are  "Copyright  and  related  rights  in  the 
information  society" (COM(95) 382 final), "The legal protection  of encrypted  services in the  Internal 
Market"  (COM(96)  76  final),  and  "The  Commercial  Communications  in  the  Internal  Market" 
(COM(96) 192 final ) 

4 

confidentiality  and  electronic  authentification  must  be  available.  The  Commission  is 
preparing appropriate proposals. 

c. Facilitating Industrial  Change 

technologies  (ICT)  are  critical  to  the  future 
Information  and  communication 
competitiveness  of  all  industries,  commerce  and  services(e.g.  in  the  design  and 
manufacture  of  products,  in  the  products  themselves  and  in  the  business  processes). 
Success  for  Europe  depends,  therefore,  on  the  speedy  take-up  of  ICT  by  European 
enterprises  in  general.  The  concept  of  distributing  good  practices  and  applying 
benchmarking should be promoted in this respect. This is important especially for small 
and  medium-sized  enterprises  (SMEs)  which  account  for  over  two  thirds  of  the 
European  workforce  and  therefore  play  a  central  role  in  the  creation  of  new  job 
opportunities6. 

SMEs are crucial  for  innovation.  The Green Paper on innovation  has shown that  there 
is a mismatch between Europe's scientific  and technological  potential  and  its record in 
innovation.  Removing  obstacles and the availability  of the  necessary  instruments  must 
be promoted (e.g. venture capital). 

SMEs  are  also  vital  to  development  and  diversity  of 
the  new  multimedia  content 
market.  This  market  demands flexibility and  cultural  proximity  for  the  provision  of 
tailor-made information  services and it is dominated  by newly created  SMEs. Member 
States and  the EU  should  provide the appropriate  environment  for  SMEs to  flourish. 
In particular they  should devote considerable effort  in order to  increase  understanding 
concerning  the  needs,  priorities  and  obstacles  (e.g.  bureaucratic  burdens),  hindering 
the creation and running of SMEs and their use of ICTs 

For consistent and fast market development,  "de facto" standards and publicly available 
specifications  drawn  up  by  market  groups  are  increasingly  important.  This  has 
significant  consequences:  avoiding  dominant  positions  or  monopolies;  guaranteeing 
public  interests  and  standards  in  public  procurement.  Standardization  also  plays  an 
important role in this respect and is being addressed by a separate communication. 

2.2. 

INVESTING IN THE  FUTURE 

The information  society is predominantly  a knowledge based  society.  Participating  in 
the  information  society  means more creativity,  communicating  faster,  developing  new 
ideas  and  learning  how  to  learn  throughout  life.  People  and  know-how  are  the  main 
capital of Europe. For this reason, we have to  strengthen  our investment  in enhancing 
our knowledge base and in improving education and training. 

Investing  in  the  future  also  means  that  we  preserve,  as  much  as  possible,  the 
environment  for  the future  generations.  Sustainable  development  can benefit  from  the 
information  society. The use of ICT offers  major  opportunities for  less scare resource-
intensive life styles. 

6The European  Social Fund, in particular objective 4 and ADAPT (Community  initiative) can be used 
to facilitate these changes. 

5 

a. Enhancing our Knowledge Base 

Budgetary  constraints  are  putting  increasing  pressure  on  funds  available  for  research 
and  technology  (R&D)  -  in  both  the  private  and  the  public  sectors.  This  may  bring 
short term budgetary relief, but at the cost of cutting Europe's future  ability to innovate 
and compete in the next century. There the stakes could not be higher. 

Community  R&D  policy  has  contributed  to  laying  the  foundations  of  today's 
information  society achievements in Europe. This is not a task with a finite horizon. On 
the contrary,  technology  is pushing the horizon  into unexpected  new frontiers.  This is 
why  information  society  related  research  must  have  a  central  place  in  the  5th 
Framework Programme of R&D. 

The  Commission  has  recently  adopted  a  Communication7  on  the  first  orientations  of 
the Fifth Framework Programme. It introduces  a clear concentration of effort  on three 
key fields - one  of which  is the  information  society.  Research  in this field will  aim at 
the  development  of  technology,  infrastructure,  services,  applications  and  content.  It 
will be designed to better meet the increasing demands of industry and society. 

Given the speed  of technological  change it is essential  to  match the time  scales of the 
programmes  to  the  new  realities.  It  is  also  necessary  to  focus  ICT  R&D  efforts  on 
themes of general interest addressing specific user needs in the information  society and 
them.  This  implies  the  establishment  and 
to  the  technologies  needed  to  fulfil 
management  of  inter-disciplinary,  inter-programme  co-ordinated  efforts  which  will 
reflect the convergence of industries and technologies. 

The  Information  society  supports  the  vision  of  a  "global  research  village".  Europe 
needs  high-speed  research  networks  to  be  fully  integrated  into  the  international 
research  world,  as  well  as  to  improve  cross-border  collaboration  between  Member 
State national and European research institutes. 

b. Improving Education  and  Training 

The pace of change is increasingly fast  and  skills must be  constantly  adjusted  to  meet 
the  changing  needs  of  the  work  place  as  well  as  in  the  home.  New  information  and 
communication technologies and new ways of learning have already been integrated in 
the  Commission's  education  and  training  programmes8.  The  Commission  has  taken 
specific  initiatives9,  issued  a White Paper  on  "Teaching and Learning  -  Towards the 
Learning Society" and will stimulate a wider discussion on the challenges of countering 
skills obsolescence of the adult workforce  through a pro-active approach to  adaptation 
and change through the Green Paper "Living and working in the information society: 
People  first". 

7  Preliminary  guidelines  for  the  5th  Framework  Programme  of  research  and  technological 
development COM/96/332/7 
8SOCRATES and LEONARDO DA VINCI as well as in the Telematic Applications Programme 
9The Task Force on Educational  Software and Multimedia.  1996 has been proclaimed European year 
of life-long  learning in order to raise public awareness of the importance of learning  not only within 
the educational system but also at home and at work. 

6 

The  Information  Society  Forum10  believes  that  the  education  and  training  must  be 
quickly  revised  so  that  learning  institutions  are  more  responsive  to  the  needs  of  the 
emerging  industries.  The  Forum  also  stresses  that  introducing  the  information  society 
in schools  means changing the way  schools work.  This will  not be easy  because  of the 
financial implications  and traditional  inertia.  Education  in the  information  society  must 
move away from a system centred  solely  around  teachers  to  focus  more on  learners.  It 
must be build around learning and less around teaching. 

In  recognition  of  the  importance  of  the  role  of  education  and  training  the  European 
Council  at Florence  has  asked  the  Commission  to  quickly  elaborate  an  action  plan  on 
"Learning  in  the  Information  Society".  It  will  include  the  interconnection  of  school 
networks at European  level,  the promotion  of multimedia  educational  content,  and the 
stimulation  of  awareness  and  training  of  teachers  and  trainers  to  the  use  of  new 
information  society tools. 

In  this  respect,  a  major  contribution  is  expected  from  the  private  sector  through  the 
establishment  of public and private partnerships. 

c. Addressing  Sustainable  Development 

The  concept  of  sustainable  development  reflects  a  growing  awareness  that  current 
generations  should  meet  their  needs  without  compromising  the  quality  of  life  of  the 
future  generations,  without  causing  resource  depletion  and  without  causing 
environmental  destruction. 

By  way  of  example,  telematic  applications  can  help  to  reduce  the  requirement  for 
transport  infrastructure  investment,  urban  congestion  and  pollution.  This  can  be 
achieved  both  directly,  with  traffic  management  systems,  and  indirectly,  as  a result  of 
professional  applications  such  as  teleconferencing  and  teleworking  which  will  reduce 
the  need  for  physical  mobility.  Monitoring  of  air  pollution  levels  with  links  to  traffic 
management  systems could be used to  re-route  or stop traffic  when  air quality  reaches 
a certain threshold limit. 

ICT  can  be  a  major  tool  for  sustainable  development  even  though  environmentally 
is  not  automatically  guaranteed.  Much  depends  on  the 
friendly  development 
framework  within  which  the  new  technologies  are  used.  As  the  Information  Society 
Forum  states,  there  is  a  risk  of  a  "rebound"  effect  where  by  collectivity  gains  -  as  it 
happened  in  the  past  -  may  create  additional  demands  for  material  consumption  and 
sustainability is lost. 

Influencing  the behaviour of both citizens  and of the businesses  towards  a sounder  use 
of  resources,  will  require  the  increase  of  awareness  as  well  as  the  provision  of  the 
appropriate economic incentives (e.g.  tax incentives). 

10  The  Information  Society  Forum  has  been  set  up  by  the  Commission  to  provide  advice  on 
information society issues and brings together all relevant sectors and interest groups. Its first report is 
entitled "Networks for people and their communities". 

7 

2.3. 

PEOPLE AT THE  CENTRE 

The  information  society  provides  opportunities  for  enhancing  individual  lifestyles  and 
the  public  interest  in  general.  European  citizens  will  enjoy  a  wider  range  of  new 
services which  will  contribute  to  improving  their  quality  of  life,  both  at  home  and  at 
work. In addition, the new technologies can potentially contribute towards  overcoming 
social  exclusion  and  regional  disparities.  However,  the  changes  introduced  by  the 
information  society also present new challenges for  society, and care needs to be taken 
to  ensure that  the benefits  are evenly  distributed  between  different  parts  of the Union 
and citizens. 

Ensuring the public interest means that consumer protection will have to be adapted  to 
the  new  conditions  resulting  from  the  rapid  emergence  of  ICT-based  products  and 
services. 

a. Enhancing European  Integration 

Active  participation  in  society  is  more  and  more  linked  to  having  access  to  the 
information  services  while  physical  proximity  is  less  important.  The  relevant 
disadvantages  of  peripheral  regions  can  thus  be  reduced  through  direct  connection. 
This  offers  new  opportunities  to  participate  in  markets;  in  education  and  training;  as 
well  as  having  access  to  culture  through  on-line  electronic  libraries,  museums  and 
galleries. However, the participation in the information  society of all European regions 
will not happen automatically, but requires active policy measures. 

One  of  the  key  factor  for  access  to  the  information  society  is  the  availability  of 
telecommunications  infrastructure.  However,  a  number  of  analyses11  suggest  that, 
though  converging  in  many  ways,  significant  differences  in  levels  of  infrastructure 
development  among Member States and regions remain or may even be newly created. 

Liberalization  will  increase  the  quality  of  services  and  will  drive  prices  down.  At  the 
same time the obligation of universal service12 will ensure that basic telephony  services 
which  already  include  access to  on-line  services  will be  available  for  all  at  affordable 
prices.  However,  as  private  infrastructure  investments  are  demand  driven  it  is  to  be 
expected  that  access to  the  new and  advanced  services will be introduced  at  different 
speeds and conditions in the Community. 

To  reduce  the  risks,  local,  regional  and  national  initiatives  are  needed,  not  only  to 
attract  infrastructure  investments but also to stimulate the demand for  new  information 
services. The transfer  of experiences  and best  practice  already developed  by advanced 
regions  could  help  in  this  respect  (e.g.  in  strategy  development,  in  the  use  of  "tele-
cottages", 
in  teleworking).  However,  there  is  still  a  great  reluctance  and  lack  of 
awareness. Rural  areas and less favored  regions need  to  develop  specific  initiatives in 
order  to  encourage  private-public  or  cross-regional  partnerships,  elaborate  regional 
strategies and launch pilot applications 

11 See  in  particular  the  study  on  "Assessment  of  the  social  and  economic  cohesion  aspects  of  the 
development  of  the  information  society  in  Europe" prepared  for  the  Commission  on  the  basis  of 
COM(94)347 final, Third Chapter, paragraph b). 

12Universal  service  is  an  evolving  and  dynamic  concept.  The  Commission  in  its  Communication 
COM  (96)73  has  undertaken  to  report  by  1st  of  January  1998  on  the  scope,  level,  quantity  and 
affortability  of universal service and to consider the need for  adaptation. 

8 

Some  local  and  regional  initiatives  already  benefit  from  support  at  European  Union  level 
under the relevant instruments in particular the ERDF (but also Social  Fund, Trans-European 
Networks,  R&D).  Building  on  the  experiences  of  existing  initiatives,  the  Commission  will 
further  address these issues in the near future  in order to advance towards a closer integration 
of  information  society  aspects in the  Structural  Funds policies. 

The European information  society also needs to reflect  the shared values which form  the basis 
of  the  European  social  model,  including  democracy  and  individual  rights,  equality  of 
opportunity  and  social  welfare  and solidarity.  In  our rapidly  changing world,  it is important 
to  ensure  that  the  information  society  reinforces,  rather  than  undermines  these  values. 
Emphasis  must also be given  to the specific  needs of women, of  older and  disabled people, 
of  less  educated  workers  as well  as of  minorities. 

Against this background, the Commission  has initiated  a number  of  actions with the general 
objective  of  placing  European  men  and  women  at  the  center  of  the  European  Union 
information  society  strategy.  An  Information  Society  Forum  and  a  High-Level  Group  of 
Experts  on  social  and  societal  aspects  of  the  information  society  has been  established.  The 
deepening of  the political, social  and  civil  dialogue  on these issues will  be addressed  by  the 
Green  Paper  "Living and  Working  in  the  Information Society:  People first".  After  the 
completion of the relevant consultation process the Commission will present action proposals. 

b. Protecting Consumer Interests 

Consumer  interests  must  be  safeguarded  by  systematically  taking  them  into  consideration 
during the  development  of  European  Union  policies  applicable  to the information  society. 

As a part of  a this general  approach,  the Commission  will  initiate  research  actions  aimed at 
developing information  and communications  technologies which  are more user-friendly,  and 
will  seek  to  test  pilot  applications  with  the  co-operation  of  consumer  organizations.  The 
Commission will also encourage the systematic involvement of consumer representatives both 
in the standardization process and in the consultation process which is an essential part of the 
development  of  any  legislation  applicable  to  information  society  issues. 

At the same time, unwanted or offensive  information  content disseminated on on-line services, 
as  well  as  on  the  Internet  and  the  protection  of  minors  are  of  particular  concern.  The 
Commission  is  currently  studying  this issue, inter  alia in  the  context  of  the  Green  Paper  on 
"New Audiovisual  Services". It is  also  clear  that  solutions  also have to be found  within  the 
international  context. 

Consumer  awareness  and  understanding  of  the  impact  and  implications  of  the  information 
society  on their daily  lives should be further  improved  in order to enable them to  appreciate 
the benefits  of  opening  up of  telecommunication  markets but  also  of  the  risks  arising  from 
the  ICT  developments.  In  this  context,  the  theme  of  "Count-down  to  1998"  should  be 
promoted. It is also important to help the consumer to navigate and to make informed  choices 
between  alternative  media  content  (i.e.  media  competences).  This  will  imply  a  greatly 
increased  effort  in  consumer  education, not  only  in  schools but  also for  adults. 

c. Improving Public Sector  Services 

The  public  sector  must  increasingly  use  new  technologies  to  improve  the  quality, 
openness, transparency and user-friendliness  of public services. The use of ICTs is also 
required to boost the efficiency  of public administrations, something which is becoming 
a key requirement in the context of economic globalization and budgetary restrictions. 

The  Commission  ought  to  become  a  front-runner  in  the  use  of  ICT  tools  in  its 
operations,  thus  setting  a  Europe-wide  example  for  public  administrations.  This 
concerns  the  procedures  and  tools  used  in the  daily  work  of  civil  servants;  the  links 
with the Commission's  decentralized  agencies; as well  as relations with Member  State 
administrations  and the general  public. In this respect,  the  Commission  has  started  to 
use electronic submission of proposals in the ACTS and ESPRIT R&D programmes. 

In addition,  coherence must be enhanced  between  the  public  services networks  of the 
Member  States in order to ensure seamless communication between  all levels of public 
administration across the European Union. 

All levels of public administration,  whether  local, regional,  national  or European  must 
facilitate public access to public information  by the use of  new applications (i.e. public 
information  kiosks or on-line systems). 

d. Ensuring Cultural Diversity 

Content  is  an  essential  component  of  the  information  society,  both  as  a  major  and 
growing source of business revenue and as a vehicle of ideas and values contributing to 
the preservation  and promotion of Europe's cultural and linguistic diversity.  Therefore, 
while the  integration  of the European  content  industry  into  the  global  economy  must 
gain momentum maintaining European cultural diversity is a central issue. 

Europe's  vast  cultural  heritage  could  offer  a  major  potential  advantage  in  economic 
terms.  Its  optimal  exploitation  will  largely  depend  upon  the  development  of  a 
consistent  regulatory  framework  for  new products,  services  and  content.  This  in turn 
will to a large extent depend on content protected by copyrights and related rights. 

The  European  Union  recognizes  the  growing 
programme industry and has launched a number of initiatives13. 

importance  of  the  audiovisual 

The  media  sector  is  undergoing  profound  structural  changes.  On  the  one  hand,  big 
media  conglomerates  are  extending  their  activities  from  printing  and  traditional 
broadcasting  to  electronic  publishing and digital television  services. It  is clear  that  the 
large  capital  investments  that  are  necessary  for  the  participation  in  the  new  media 
market  are  possible  only  for  actors  of  a  certain  size.  Nevertheless,  pluralism  and 
cultural diversity are central values to the European democracies. 

13  This is reflected  ii. the MEDIA  II and INFO 2000 Program, the proposal  for  multi-lingualism, the 
preparation  of  a  Green  Paper  on  "New Audiovisual  Services"  and  the  revision  of  the  "Television 
without Frontiers" Directive. 

10 

On  the  other  hand,  the  information  society  allows  more  individualized  content 
production  and  distribution  and  will  widen  the  spectrum  of  information  services.  A 
good  example  of  this  is  the  Internet.  The  future  interactive  digital  services  will  not  be 
characterized  by  a limited  availability  of  information,  but  by  the  opposite,  the  surplus 
of  information.  Thus  the  development  of  new  services  and  specialized  channels  will 
contribute significantly  to  pluralism and cultural  diversity. 

The  mass  media  have  a  strong  influence  on  public  opinion.  Therefore,  in  all  Member 
States  regulation  on  media  concentration  is  in  place.  However,  an  initiative  at 
European  Union  level  has  become  necessary  in  order  to  coordinate  regulation,  to 
accordingly  strengthen  the  internal  market  and  to  avoid  re-fragmentation  from  the 
inconsistent  implementation  of  regulation  across  the  Member  States.  The  Commission 
is  examining  whether  additional  measures  will  also  be  necessary  so  that  licensing  can 
promote open access. 

2.4.  MEETING THE GLOBAL CHALLENGE 

The  increasing  competitive  pressure  resulting  from  the  progress  in  communication 
networks  leads  to  a  radical  restructuring  of  companies  and  is  prompting  a  wave  of 
major  global  corporate  alliances.  The  restructuring  of  the  economy 
is  further 
reinforced  by  the  technological  convergence  of  information-related  industries,  i.e. 
telecommunications,  computers,  electronics  and content. 

Globalization  also  dictates  a  change 
institutional 
organization  of  Member  States  towards  greater  flexibility  and  efficiency  in  an  already 
difficult  context  of  high unemployment.  At  the  same time,  globalization  is  opening  up 
new  market  opportunities  which  can  help  to 
increase  economic  growth  and 
employment,  not  only  for  the  industrialized  countries  but  also  for  the  developing 
countries which launch actions in order to participate in the global  information  society. 

in  the  socio-economic  and 

a. Defining  Global  Rules 

liberalization  of  telecommunications  will  offer  many  opportunities 

Global 
for 
community  Information  Industries.  It  is  important  to  complete  by  15  February  1997, 
the  WTO  negotiations  on  the  liberalization  of  basic  telecommunications  services.  The 
overall  outcome  must  reflect  in  comparable  and  effective  access  to  our  major 
competitors markets and sufficient  commitments from newly  industrialized  countries in 
particular.  This agreement  must also include fair and open  arrangements relating to  the 
global  satellite  communications  systems.  Successful  participation  in  the  negotiations 
will  depend  on  the  establishment  of  effective  coordination  mechanisms  in  order  to 
ensure that the Union  speaks with one voice. 

In addition,  discussions  on an Information  Technology  Agreement  could  help to  lower 
the  cost  of  IT  products  for  multimedia  through  the  removal  of  trade  obstacles  for  IT 
products  and the  promotion  of  mutual  recognition.  In this  context  it  is  becoming  also 
necessary  that  the  Commission  reviews  and  redefines  a  new  policy  for  multimedia 
content  classification. 

Basic  global  rules  have  to  be  established  in  order  to  create  a  level  playing  field,  for 
example:  securing  network  interconnection  and  service  interpretability,  protecting 

11 

intellectual  property  rights  (IPRs),  information  security,  protecting  privacy  and 
personal  data,  promoting  global  standards,  removing  trade  barriers,  securing  the  free 
flow  of  information,  avoiding  distortions  of  competition,  and  addressing  the  cultural 
and linguistic dimension. 

the  G7, 

Many  of  these  questions  are  already  being  addressed  in  appropriate  multilateral  fora 
International 
such  as 
Telecommunications  Union  (ITU),  the  Organization  of  Economic  Co-operation  and 
Development  (OECD),  World  Intellectual  Property  Organization  (WIPO)  and  the 
World Bank. 

the  World  Trade  Organization 

(WTO), 

the 

However,  where  multilateral  negotiations  with  industrialized  countries  and  emerging 
economic  powers  do  not  bring  effective  openness  of  foreign  markets,  bilateral 
for 
negotiations  must  be  pursued,  especially  as  regards  procurement 
telecommunication equipment and Mutual Recognition Agreements (MRAs). 

rules 

The  European  Union  competition  policy  must  continue  to  be  based  on  a  dual 
approach.  On the  one  hand,  it  acknowledges  that  alliances  are  required  to  ensure  the 
critical size of European businesses necessary for global presence and  competitiveness. 
On the  other  hand,  it  should  prevent  the foreclosure  of markets  and  reduce  dominant 
positions. 

b. Collaborating with our Neighbours 

The  European  Union  also  bears  a  particular  political  responsibility  in  integrating  its 
neighbours  from  Central  and  Eastern  Europe  (CEEC),  the  Commonwealth  of 
Independent  States (CIS) and the Mediterranean.  These countries already benefit  from 
Community development and co-operation  instruments, in particular from  PHARE and 
MEDA.  A  regional  dialogue  on  the  information  society  has  also  been  launched  with 
the setting up in June  1995 of an EU-CEEC Forum  and the organization  in May  1996 
of a Euro-Mediterranean  Conference. 

As far as candidate countries for European membership are concerned,  special effort  is 
required to associate them more closely with Community information  society activities. 
In particular for the associated  countries in Central  and Eastern  Europe,  such dialogue 
will  be  pursued  in  the  context  of  the  association  agreements  and  the  structured 
dialogue.  A progressive  convergence  of regulatory  frameworks  and  better  integration 
into European  networks and R&D programs must also be achieved.  A specific  actions 
plan will be presented  at the next  plenary meeting of the EU-CEEC  Forum  to be held 
in Prague in September  1996. 

Proactive  support  for  regulatory  reforms,  application  and  infrastructure  development 
as well  as R&D  efforts  must  also be a priority  in the  context  of the  follow-up  to  the 
Euro-Mediterranean  conference.  Helping 
the  European  Union's  Mediterranean 
neighbours  meet  the  challenges  of  the  information  society  thus  supporting  their 
integration in to the global economy is an issue of utmost importance. 

c. Improving the Integration of Developing Countries 

12 

At  a  global  level,  the  Conference  on  the  Information  Society  and  Development 
(ISAD),  hosted  by  South  Africa  in  May  1996,  was  an  important  step  towards  the 
better integration of developing countries into the global information society. Based on 
the  results  of  this  conference  a  Communication  on  "Information Society  and 
development"  will  be  presented  by  the  end  of  1996.  The  existing  co-operation  and 
development instruments must be redefined  and re-orientated  to give the development 
of  the  telecommunications  infrastructures  and  applications  a  higher  priority  in 
development  policies.  This is  not  only  a prerequisite  for  participating  successfully  in 
international trade, but also offers new opportunities for their internal development. 

The  Council  of  Ministers  and  the  European  Parliament,  the  Economic  and  Social 
Committee and the Committee of the Regions are invited to give their views on the key 
elements  in this  Communication.  In the  light  of  these  consultations  the  Commission 
will  table  an adapted  and updated  action  plan before  the  end  of  the year,  as  well  as 
submitting new proposals for a number of measures which are already identified  in the 
text. 

13 

ISSN 0254-1475 

COM(96) 395 final 

DOCUMENTS 

EN 

16  15 

Catalogue number  : CB-CO-96-417-EN-C 

ISBN 92-78-07887-5 

Office for Official  Publications of the European Communities 

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