Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on the application of open network provision (ONP) to voice telephony and on universal service for telecommunications in a competitive environment - (replacing European Parliament and Council Directive 95/62/EC)
Date: 1996-11-04
Institutions: European Commission
Subjects: competition, liberalisation of the market, telecommunications, telephone, transmission network

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  04.11.1996 
COM(96) 419  final 

96/  0226(COD) 

Proposal  for  a 

EUROPEAN  PARLIAMENT  AND  COUNCIL  DIRECTIVE 

on  the  application  of open  network  provision  (ONP)  to  voice telephony  and  on 
universal  service  for  telecommunications  in a competitive  environment 

(replacing  European  Parliament  and  Council  Directive  95/62/EC  ) 

(presented  by  the  Commission) 

List of Contents 

Summary 

Explanatory memorandum 

Introduction 

Background 

Universal telecommunications  Service in the European Union 

Aims of the Revision of Directive 95/62/EC 

The entities covered 

Major  areas of change with respect to Directive 95/62/EC 

Consultation  process 

Conclusion 

Proposal for a European Parliament and Council Directive  on the application ÔT open 

network provision (ONP) to voice telephony and on universal service for 

telecommunications in a competitive environment (replacing European Parliament and 

Council Directive 95/62/EC) 

Chapter I 

-  Scope, aims and  definitions 

Article  1  Scope and aim 

Article 2  Definitions 

I-  3 

Chapter II  -  Provision of a defined set of telecommunications services 

Article 3  Availability of telecommunications services 

Article 4  Affordability 

Article 5  Provision of network connections and access to telephone services 

Article 6  Directory services 

Article 7  Public pay-telephones 

Article 8  Specific measures for disabled users and users with special needs 

Chapter III -  General Provisions concerning public telephone 

networks and publicly available telephone services 

Article 9  Connection of terminal equipment and use of the network 

Article 10  Contracts 

Article 11  Publication of and access to information 

Article 12  Quality of service 

Article 13  Conditions of access and use and essential requirements 

.* 

Chapter  IV  -  Specific  Provisions  concerning fixed public  telephone  networks  and 

publicly 

available  telephone services 

Article  14  Itemized billing tone dialling and selective call barring 

Article  15  Provision of additional  facilities 

Article  16  Special network access 

Article  17  Tariff principles 

Article  18  Cost accounting principles 

— 

Article  19  Discounts and other special tariff  provisions 

Article 20  Specifications  for network access, including the socket 

Article 21  Non-payment  of bills 

Article 22  Conditions for the termination of  offerings 

Article 23  Variation of published  conditions 

Chapter V  -  Procedural  provisions 

Article 24  Consultation 

.  * 

Article 25  Notification  and reporting 

Article 26  Conciliation and national dispute resolution 

Article 27  Deferment  of certain obligations 

Article 28  Technical  adjustment 

Article 29  Advisory Committee procedure 

Article 30  Review 

Article 31  Transposition 

Article 32  Repeal of Directive 95/62/EC 

Article 33  Entry into force 

~ 

Article 34  Addressees 

Annexes 

Annex I  Description of  facilities referred to in articles 14 and 15 

Annex II  Headings for information to be published in accordance with article 11 

Annex III  Supply-time and quality-of-service indicators, definitions and measurement 

methods 

Annex IV  Timescale referred to in Article 33 

Annex V  Comparative Table 

Evaluation of the Impact 

SUMMARY 

The purpose of this Directive is to revise and replace the existing Directive 95/62/EC on 

the application of Open Network Provision (ONP) to voice telephony, to take account of 

the forthcoming  libéralisation of the telecommunications market by 1st January  1998, and 

to  guarantee  the  provision  of a defined  universal  service for  telecommunications  in the 

European Union. 

— 

The European Parliament and the Council have committed themselves to decide before 1 

January  1998, on the basis of a proposal submitted in good time by the Commission, on 

the revision of the existing Directive  -  see Article 32(1). 

This  proposal  for  a  revised  Directive  describes  the  scope  of  the  universal  service  for 

telecommunications which must be available to all users in the EU, and requires Member 

States to ensure that this service is affordable, taking into account national situations.  The 

Directive also  sets out harmonised conditions for  the provision  of fixed public telephone 

networks and publicly available telephone services in the European Union. 

^ 

The revised Directive forms part of the regulatory framework  for the telecommunications 

sector being put in place for the post-1998 environment of open and competitive markets. 

EXPLANATORY MEMORANDUM 

1.  Introduction 

In the emerging information  society more and more people - in private life and at work -

depend on modern communications.  To be able to communicate and interact whether by 

telephone, fax, e-mail or electronic media is a crucial and decisive factor  for every_citizen 

and business. 

' 

The telecommunications  sector is an area of startling innovation and rapid  technological 

evolution.  It is critical for the overall competitiveness of Europe's economy. 

Alongside the growing  importance of data and facsimile  services in the business  sector, 

and the spectacular growth of the Internet,  and the potential of new information  society 

services, telephone services remain the most important telecommunications services today 

from  both an economic and a social stand-point. 

The liberalisation of public telephone networks and services from 1 January T 998l  makes 

it vital that  beyond  that  date both business  and  residential users  are guaranteed  choice, 

quality and the best possible prices for telephone services. 

2.  Background 

1  See Commission Directive 96/19/EC amending Commission  Directive 90/388/EEC regarding  the  implementation 

of full  competition  in telecommunications  markets.  OJ L 74,22.03.1996, p.13. 

8 

In the telecommunications  sector the European Union (EU) is following  a balanced policy 

of  liberalization  and  harmonization,  building  on  the  1990  Commission  Directive  on 

telecommunications  services2  and  the  Council  Directive  on  open  network  provision3, 

adopted simultaneously. 

Council  Resolution  of  22  July  19934,  which  set  the  date  of  1st  January  1998  for 

liberalisation of telecommunications  services (with transitional periods for certain Member 

States), identified as major policy goals for the Community's telecommunications policy: 

i) 

the adoption of legislative proposals in the field of ONP 

[ie the then draft ONP Voice Telephony Directive] 

ii) 

the adaptation in the light of further liberalisation, of ONP principles in respect of the 

entities covered,  and of such issues  as universal  service,  interconnection  and  access 

charges 

Institutional  problems  associated  with  the  entry-into-force  of  the  current  Treaty  of 

European  Union  in  November  1993  led  to  delay  in  the  adoption  of  the  ONP  Voice 

Telephony Directive, with the result that final adoption by the EP and the Council did not 

occur until December 19955. 

In keeping with paragraph ii) above, the Directive is now being adapted in the light of the 

date of  1st January  1998 for full liberalisation of public telecommunications  networks and 

voice  telephony  services.  At the  same time,  ongoing  discussion on universal  service has 

2  Commission Directive 90/388/EEC, OJ  L  192, 24.7.1990, p. 10 
3  Council Directive  90/387/EEC, OJ  L  192, 24.7.1990, p. 1 
4  OJC  213, 06.08.1993, p.l 
5  Directive  95/62/EC  on  the  application  of  Open  network  provision  (ONP)  to  voice  telephony  ("the  Voice 

Telephony Directive"), OJ L321, 30.12.1995, p.6. 

emphasised  the  need to  strengthen  some  of the  provisions  of this Directive  to  safeguard 

users'interests. 

The  European  Parliament  and  the  Council  have  committed  themselves  to  review  the 

present Directive 'on the basis of a proposal which the Commission will submit to them in 

good time', as stated in Article 32(1) of Directive 95/62/EC. 

3.  Universal telecommunications  Service in the European Union 

__ 

Universal  service  in  the  telecommunication  sector  has  been  the  subject  of  continuous 

consultation  and debate since the Commission first put forward  its proposals for  complete 

liberalisation of the telecommunications  sector in October  1992. 

In the light  of the  political  agreements of  1993 and  1994 resulting from the  Commission's 

1992  Telecommunications  Review6  in  favour  of  the  full  liberalisation  in  the  sector,  the 

Council7,  the  European  Parliament8,  the  Economic  and  Social  Committee9  and  the 

Committee  of the Regions10 have all recognised  that  liberalisation goes hand  in hand with 

parallel  action to  create a harmonised  regulatory framework which  secures the delivery  of 

universal service. 

"~" 

6  Commission  Communication  on  the  consultation  on  the  Review  of  the  situation  in  the  Telecommunications 

Services Sector,  COM(93)  159. 

7  Council Resolution  94/C48 of 8 February  1994 on Universal  Service principles  in the telecommunications  sector, 
OJ  C48,  16.2.1994  and  Council  Resolution  95/C258  of  18 September  1995 on  the  implementation  of  the  future 
regulatory  framework  for telecommunications, OJ C258, 3.10.1995. 

8  European  Parliament  Resolution  of  19 May  1995 on the Green Paper on the  liberalisation  of  telecommunications 

infrastructure  and cable television networks - Part IIA4-0111/95; OJ C151,  19.6.1995. 

9  Opinion of the Economic and Social Committee of  13 September  1995 on the Green Paper on the liberalisation of 

telecommunications  infrastructure  and cable television networks - Part II, OJ C301, 13.11.1995. 

10  Opinion  of the  Committee  of the  Regions  on  the Commission  Communication:  Europe's  way  to  the  information 
society.  An  action  plan  (COM((94)  347  final).  CdR  21/95  ESP/ET/AG/ym  and  CdR  21/95  Appendix 
D/BAN/JKB/NF/as. 

10 

The  European  Parliament  emphasised:  "the central  importance  of  universal  service 

principles,  in order  to ensure the complementarity between economic and social goals  ... 

and  the  balance  between  liberalisation  and  the  need  to  maintain  basic,  affordable 

services  for  all  consumers",  whilst  Council  identified  universal  service  as  permitting 

"access to a defined minimum service of specified quality to all users everywhere and, in 

the light of specific national conditions, at an affordable price ". 

Public consultation  during  1995 on the Commission's Green Paper  on the liberalisation  of 

telecommunications  infrastructure11  focused  the universal  service discussion  on  theJssues 

of  scope,  costing  and  financing,  and  in  the  light  of  this  discussion  the  Commission 

addressed  these  specific  issues  in  its  proposal  for  an  EP  and  Council  Directive  on 

interconnection  in  telecommunications  with  regard  to  ensuring  universal  service  and 

interoperability through application of the principles of Open Network Provision (ONP)12 

The  Commission  Communication  on  universal  service  for  telecommunications13  reports 

on the  results  of  a  survey  of the  level  and  quality  of  service  found  in the Member  States 

and  of  a  public  consultation  on  universal  service  issues  during  Autumn  1995.  The 

Communication  notes  that  the  current  concept  of  universal  service,  found  in  the  ONP 

Voice  Telephony  Directive,  corresponds  to  the  obligation  to  provide  access_to the fixed 

public  telephone  network  and  to  deliver  an  affordable  telephone  service  to  all  users 

reasonably requesting it.  It goes on to identify  areas where the Voice Telephony Directive 

can  be  strengthened  to  better  reflect  the  needs  of  universal  service  in  a  liberalised 

environment. 

11  Commission  Green  Paper  on  the  liberalisation  of  telecommunications  infrastructure  and  cable  television 

networks, part H  COM(94) 682, 25.01.1995 

12  COM(95) 379, OJ C 313, 24.11.1995,  p.7 
13  COM(96) 73,  13 March  1996. 

11 

The  proposed  revision  pf  the  ONP  Voice  Telephony  Directive  includes  these  changes. 

The Directive does not apply to mobile telephone networks or services. 

— 

Universal service and market forces 

The telephone  service  is considered  to be so important  to the  social  and  economic life  of 

the Community that it is appropriate to maintain a regulatory 'safety  net' to  guarantee  that 

all  users  can  continue  to  have  access  to  a  good  basic  telephone  service  at  affordable 

prices.  Market  failure is recognised  as a significant  problem, which cannot  be allowed  to 

occur  in  view  of  the  serious  consequences  it  would  have  for  users  of  basic  telephone 

services. 

The  regulatory  safety  net  that  this  Directive  puts  in  place  therefore  requires  Member 

States  to  ensure  that  all  reasonable  requests  for  access  to  the  fixed  public  telephone 

network  and  provision  of telephone  service  at  a fixed location  are met. 

In  accordance 

with  the  proposed  European  Parliament  and  Council  Directive  on  interconnection  in 

telecommunications  with regard to  ensuring universal  service and interoperability  through 

application  of  the  principles  of  Open Network  Provision  (ONP)14,  where  this  universal 

service  obligation  represents  a  demonstrable  net  cost  to  an  operator, 

this  cost  can  be 

shared  at the national  level with  other  organizations  operating  public  telecommunications 

networks  and/or  publicly  available  voice telephony  services.  There  is  no  requirement  to 

provide mobile telephone services as part of universal service. 

4.  Aims of the Revision  of Directive  95/62/EC 

14  OJ  C220,  29.07.1996,  p  13. Common  Position  (EC) No.34/96  adopted  by the  Council  on  18 June 

1996 

12 

The aim of the revised  Directive is to  adapt  the existing voice telephony  Directive  to a 

competitive  market  with  multiple  players,  and  to  guarantee  the  provision  of  a-defined 

universal telephone service in the European Union. 

The  revised  Directive  identifies  the  telephone  services  and  associated  facilities  to  be 

publicly available to all users;  it ensures that  all users can on request  gain access to the 

fixed  public telephone network15, at à fixed location, for communication by voice, data or 

facsimile, and have access to a basic range of facilities including itemised billing16 and tone 

dialling. 

— 

It sets out a mechanism whereby quality of service can be monitored using a common set 

of parameters and measurement methods.  Where necessary, quality targets can be set by 

the national regulatory  authorities at the national  level,  and the results  published.  In a 

liberalised  market,  quality  is  one  of  the  differentiating  factors  for  competing  market 

players,  and  therefore  it  is  not  considered  appropriate  to  lay  down  standard  levels  of 

quality  for  all  at  this  stage.  Nevertheless  a  procedure  is  envisaged  whereby  minimum 

quality targets could be set at the EU level. 

The  revised  Directive  introduces  a new requirement  for  Member  States  to  ensure  that 

telephone service is affordable,  taking into account national circumstances.  This principle 

exists alongside the principle of cost-orientation, which is leading to the current process of 

tariff  re-balancing.  The principle of affordability  ensures that  tariff  rebalancing  proceeds 

at a pace which is consistent with the introduction of competition, but which at the same 

15  In  a  liberalised  environment,  the  'public  telephone  network'  in  a  Member  State  will  be  made  up  of  many 

separately owned and operated telecommunications  networks, interconnected  together. 

16  The  proposed  European  Parliament  and  Council  Directive  96/  ..  /EC  of  [to  be  adopted]  concerning  the 
processing  of  personal  data  and  protection  of  privacy  in  the  telecommunications  sector,  in  particular  in  the 
Integrated  Services  Digital Network  (ISDN)  and  in digital  mobile  networks, will  safeguard  the  privacy  of  users 
with regard  to itemised  billing; 

13 

time does not  result in unacceptably  steep price rises for users.  The Directive  emphasises 

the place of targetted tariff schemes as a better option than uniformly  low tariff as~a means 

of securing affordable  service for all. 

The  revised  Directive  calls upon  Member  States  to  set  up  consultative  mechanisms  with 

users, consumers, suppliers and manufacturers  at the national level on issues related to  the 

level,  quality  and  affordability  of  universal  service.  The  Commission  may  also  set  up 

consultative mechanisms at the European level. 

In  those  Member  States  which  have  transition  periods  for  the  liberalisation  of  public 

telecommunications  networks  and  publicly  available  voice  telephony  services, 

in 

accordance  with  Community  law,  the  revised  Directive  maintains  the  relevant  provisions 

of Directive 95/62/EC. 

5.  The entities  covered 

In its revised form,  the Directive contains three types of provisions: 

Chapter  II  contains  provisions  that  apply  to  organisations  designated' bV  Member 

States as having specific universal service obligations. 

Chapter  III  contains provisions that  apply to  all organisations  providing fixed public 

telephone networks and/or publicly available telephone services. 

Chapter  IV  contains  provisions  that  apply  to  specific  categories  of  organisations, 

including: 

14 

organisations  providing  telephone  services  over  the  fixed  public 

telephone network 

organisations  providing  telephone  services  over  the  fixed  public 

telephone network  designated  by Member  States as having  significant 

market power 

organisations which, for a transition period, retain special or exclusive 

rights of the provision of fixed public telecommunications networks or 

publicly  available  voice  telephony  services,  in  accordance  with 

Community law.. 

Provisions  relating  to universal service  obligations 

These provisions cover three areas: 

- the provision of a connection to the fixed public telephone network as described 

above 

- the provision of directories and directory enquiry services 

— 

- the provision of public pay telephones. 

Member  States  must  ensure  the  availability  of  these  services  for  all,  and  in  accordance 

with  the  principle  of  subsidiarity,  can  decide how'to  achieve that  objective  at  a  national 

level. 

Where  such an obligation results in a justified  net cost to  an organisation,  Member  States 

may  allow  that  net  cost  to  be  shared  with  other  organizations  operating  public 

15 

telecommunications  networks  and/or  publicly  available voice  telephony  services,  under  a 

universal  service  funding  scheme.  However  universal  service  obligations  musFnot  be 

imposed  in  a  way  which  leads  to  duplication  of  universal  service  costs,  i.e.  only  one 

organisation  should  receive  support  from  a  universal  service  financing  scheme  for 

provision  of  a  particular  element  in  a  particular  area.  The  proposed  EP  and  Council 

Directive  on  interconnection  requires  that the  calculation  of costs  must  be  independently 

audited,  and  that  the  rules  for  calculating  the  contributions  from  other  market  players 

must  be  in  accordance  with  the  principles  of  non-discrimination,  proportionality  and 

transparency. 

Provisions  affecting  all  providers  of  fixed  public  telephone  networks  and  publicly 

available  telephone  services 

Provisions affecting  all providers of fixed public telephone networks and publicly available 

telephone  services  concern  access  to  emergency  numbers,  subscriber  contracts,  the 

publication  of  information  relating  to  their  service  offering  including  tariffs  and  technical 

interfaces,  and keeping available statistics on quality of service. 

^ 

Provisions for  specific  types of  organisations 

Provisions  in the  existing Directive concerning cost orientation  of tariffs, 

implementation 

of  specific  cost  accounting  systems,  and  discount  schemes  are  carried  over  into  the 

revised  Directive,  but  with  the  possibility  for  the  national  regulatory  authority  to  relax 

these  requirements  once  competition  is  sufficiently  developed  to  allow  market-driven 

pricing to take over as the best means of keeping down prices for users.  The provision  on 

special  network  access  is  consistent  with  the  obligation  in  Article  4(2)  of  the  proposed 

16 

Directive  on interconnection,  and  is retained  in this Directive  because  it  offers  additional 

safeguards  for the user which are not provided in the Interconnection Directive.  ~ 

Provisions  concerning  certain  facilities  (itemised  billing,  selective  call  barring  and  tone 

dialling),  and  non-payment  of  bills  apply  to  all  organisations  providing  voice  telephony 

services over fixed public telephone networks. 

Mobile  telephone services 

_ 

The  existing  Directive  does  not  apply  to  mobile  telephone  services,  and  the  proposed 

adaptation does not change that  situation. 

At  present  the  mobile  market  can  be  considered  as  a  separate  market  to  the  fixed 

telephone  market,  but  in view  of the forecast  convergence  of fixed and  mobile  telephone 

services,  the  applicability  of  the  Directive  with  respect  to  mobile  services  will  be  re 

examined  when  the  Directive  is  reviewed  by  31  December  1999. 

Individual  Member 

States  may take  steps to  improve  protection  of the consumer  at  the  national  level by,  for 

example,  ensuring  that  mobile  telephone  users  have  access  to  inexpensive  and  easily 

accessible dispute resolution procedures similar to those described in this Directive. 

6.  Summary  of contents  of the  proposed  Directive 

The articles of Directive 95/62/EC have been re-grouped  into the following  chapters: 

Chapter I 

-  Scope, aims and  definitions 

17 

Chapter II  -  Provision of a defined  set of telecommunications  services 

Chapter III -  General Provisions  concerning public telephone 

networks and publicly available telephone services 

Chapter IV  -  Specific Provisions concerning fixed public  telephone networks and 

publicly available telephone services 

Chapter V  -  Procedural  provisions 

Certain provisions in Directive 95/62/EC are relaxed or removed: 

provisions on interconnection  (former  Article  11), and numbering  (former 

Article 21), which will be superseded by the proposed Directive on 

Interconnection 

provisions  on  technical  standards  (former  article  24)  which  will  covered  by 

Council  Directive  90/387/EC,  once  this  is  amended  as  proposed  in  EP  and 

Council Directive 96/ .. /EC  [to be adopted] 

provisions on telephone pre-payment cards (the former  article  18) 

Certain  specific  provisions  are  strengthened  in  response  to  user  demand  in  relation  to 

universal service: 

firm dates  are given for the provision  of the facilities  of tone  dialling,  itemised 

billing and selective call barring; 

the procedures in the event of non-payment of bills have been further  defined 

18 

requirement is introduced for directory enquiry services to be available. 

19 

7.  Consultation  process 

As  indicated  in  section  3  above,  there  has  been  widespread  public  consultation  on  the 

issues  of  universal  service,  and  the  results  are  summarised 

in  the  Commission 

Communication  on  Universal  Service  for  Telecommunications  published  in March  1996. 

The  proposed  revisions to  the Directive take into account  the positions  expressed  in that 

Communication. 

On the question  of to whom ONP obligations  should  apply in a competitive  environment, 

this issue was addressed  in the  Green Paper  on Infrastructure  published  in January  1995, 

and  the  subsequent  public  hearings. 

The  application  of  specific  obligations 

to 

organisations  with  significant  market  power  allows  the  regulatory  framework  to  be 

applied  in a way  that  takes  account  of the  degree  of  competition  in  a  particular  market, 

and has been accepted by the EP and the Council in other ONP Directives. 

Revision of the voice telephony Directive was the subject  of two discussions involving the 

Commission  and Member  States  and  other  representative  bodies at  meetings  of the  ONP 

Committee on  15 May and 4 June 1996. 

8.  Conclusion 

The  proposed  revision  of  the  ONP  voice  telephony  Directive  95/62/EC  has  been 

requested  by the  EP  and  the  Council,  and  takes  account  of  the  liberalisation  of  public 

voice  telephony  services  in  1998.  It  will  guarantee  the  provision  of  universal  telephone 

service to all EU users.  The proposal  is part  of the package of legislative measures being 

20 

put  in  place  for  the  post-1998  liberalised  telecommunications  market  in  the  European 

Union. 

.  '  "~ 

21 

Proposal for a 

EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 

on the application of open network provision (ONP) to voice telephony and on universal 

service for telecommunications in a competitive environment 

' '  \ 

(replacing European Parliament and Council Directive 95/62/EC) 

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 Commission1, 

22 

Having regard to the Opinion of the Economic and Social Committee2, 

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  Council4,  the  European  Parliament5,  the  Economic  and 

Social  Committee6  and  the  Committee  of  the  Regions7  have  all  recognised  that 

liberalisation goes hand in hand with parallel action to create a harmonised regulatory 

framework  which secures the delivery of universal  service;  whereas the concept  of 

universal  service  must  evolve  to  keep  pace  with  advances  in  technology,  market 

developments and changes in user demand;  whereas progress has been made in the 

Community towards defining the scope of universal service and laying down rules for 

4 

5 

6 

7 

Council  Resolution  94/C48  of  7  February  1994  on  Universal  Service  principles  in  the  telecommunications 
sector, OJ C48,  16.2.1994, p.l,  and  Council Resolution  95/C258  of  18 September  1995  on the  implementation 
of the future  regulatory framework for telecommunications, OJ C258, 3.10.1995, p. 1. 

European Parliament Resolution of  19 May  1995 on the Green Paper on the liberalisation of  telecommunications 
infrastructure  and cable television networks - Part TJ A4-0111/95; OJ C151, 19.6.1995 

Opinion  of the Economic and  Social Committee of  13 September  1995 on the Green  Paper  on the  liberalisation 
of telecommunications  infrastructure  and cable television networks - Part H, OJ C301,  13.11.1995 

Opinion  of the  Committee  of the  Regions on the Commission  Communication:  Europe's  way  to  the  information 
society.  An  action  plan  (COM((94)  347  final).  CdR  21/95  ESP/ET/AG/ym  and  CdR  21/95  Appendix 
D/BAN/JKB/NF/as. 

23 

its  costing  and financing8; whereas  the  Commission  has  undertaken  to  publish  a 

report on the monitoring of the scope, level, quality and affordability  of the~universal 

telephone service in the Community before  1 January  1998, and at regular intervals 

thereafter;9 

2.  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,10  provides  a general framework for  the  application  of  ONP 

principles in specific areas; 

— 

3.  Whereas Article 32(1) of European Parliament and Council Directive 95/62/EC of 13 

December  1995  on  the  application  of  open  network  provision  (ONP)  to  voice 

telephony11  calls  for  the  European  Parliament  and  the  Council  to  decide  by  1 

January  1998,  on  the  basis  of  a  proposal  submitted  by  the  Commission,  on  the 

revision  of  the  Directive  to  adapt  it  to  the  requirements  of  market  liberalisation; 

whereas Directive 95/62/EC does not apply to mobile telephony services;  whereas in 

moving to. a competitive market, there are certain obligations that should apply to all 

organisations  providing  telephone  services  over  fixed  networks,  and  others  that 

should  be  retained  only  for  as  long  as  certain  organisations  continue  to  enjoy 

significant  market  power  and  thus  have  the  ability  to  influence  market  conditions 

independently of their competitors;  whereas full  account has been taken of the user 

8  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 the  Council  on  interconnection  in  telecommunications  with  regard  to 
ensuring universal  service and interoperability through application of the principles of open network provision 
(ONP). OJ C220, 29.07.1996, p 13 

9 

See  Commission  Communication  on  Universal  service  for  telecommunications  in  the  perspective  of  a  fully 
liberalised environment,  COM(96) 73,  13 March 1996. 

10  OJL192,  28.06.1990, p. 1. 

11  OJL321, 30.12.1995, p.6 

24 

and  consumer  requirements  for  affordability,  cost  control  and  user  facilities  as 

expressed  in the  public  consultation  on  universal  service  for  telecommunications12; 

whereas,  since the modifications  required to  Directive  95/62/EC are substantial,  it is 

convenient  for  the  sake  of  clarity  to  reformulate  the  said  Directive;  whereas  the 

present  Directive  does  not  affect  the timescales  for  Member  States'  implementation 

of Directive 95/62/EC as set out in Annex IV; 

Whereas the basic universal service requirement is to provide users on request with a 

connection to the fixed public telephone network at a fixed location,  at an  affordable 

price; whereas  there  should  be  no  constraints  on  the  technical  means by  which  the 

connection  is  provided,  allowing  for  wire  or  wireless  technologies;  whereas 

affordability  is  a  matter  to  be  determined  at  national  level  in  the  light  of  specific 

national  conditions,  including  town  and  country  planning  aspects;  whereas  the 

affordability  of  telephone  service  is  related  to  the  information  users  receive  about 

telephone usage expenses as well as the relative cost  of telephone usage compared  to 

other services; 

Whereas  tariff  rebalancing  is  leading  to  a  move  away  from  uniformly  low  and  non 

cost-oriented  tariffs;  whereas  until  competition  is  effectively  establishecLsafeguards 

may be necessary to  ensure that  price increases in remote or rural  areas are not  used 

to  compensate  for  losses  in  revenue  resulting  from  price  decreases  elsewhere; 

whereas price caps and  similar  schemes may be used to  ensure that  the necessary re 

balancing  does  not  affect  users  adversely,  and  that  the  differences  between  prices  in 

high  cost  areas  and  prices  in  low  cost  areas  do  not  endanger  the  affordability  of 

telephone services; 

12  See COM(96) 73,  13 March  1996 

25 

5.  Whereas  the  importance of the telephone  network  and  service  is such that  it  should 

be  available  to  anyone  reasonably  requesting  it;  whereas  in  accordanccwith  the 

principle of subsidiarity, it for Member  States to decide which organisations have the 

responsibility  for  providing  the  various  elements  of  the  universal  service  for 

telecommunications  as defined  in this Directive;  whereas  corresponding  obligations 

could be included as conditions in authorisations to provide voice telephony services; 

whereas  only  the  net  cost  of  obligations  covered  in this Directive  should  be  shared 

under a universal service financing scheme; 

6.  Whereas  provision  of directory  services is a competitive  activity; whereas  European 

Parliament  and Council Directive 95/46/EC of 24 October  1995 on the protection  of 

individuals with regard  to the processing  of personal  data and on the  free  movement 

of  such data  regulates the processing  of personal  data13;  whereas progress  has been 

made in the Community  on a proposal  for  a Directive  on the  protection  of  personal 

data  and  privacy  in  the  telecommunications  sector  which  will  give  subscribers  the 

right  to  be  omitted,  or  to  have  certain  data  omitted,  from  a  printed  or  electronic 

directory at his or her request14;  whereas users and consumers desire  comprehensive 

directories  and directory  enquiry service covering all listed telephone  subscribers and 

their  numbers  (including fixed, mobile  and  personal  telephone  numbers);  whereas 

the  situation  whereby  certain  telephone  directories  and  directory  services  are 

provided  in a manner that is perceived to be free of charge to the user  is not  affected 

by this Directive; 

13  OJL281,  23.11.1995, p.31. 

14  Common Position (EC) No  /96 adopted by the Council on [date] with a view to adopting Directive 96/ .. /EC of 
the European Parliament and the Council concerning the processing of personal data and protection of privacy in 
the telecommunications  sector, in particular  in the Integrated Services Digital Network  (ISDN) and  in digital 
mobile networks 

26 

7.  Whereas Council Decision of 29 July  1991 on the introduction  of a single  European 

emergency  call  number15  called  for  Member  States  to  ensure  that  no  later lhan  31 

,  December  1996 the number <112> is introduced  in public telephone networks  as the 

single European  emergency call number;  whereas  it is important  that  users  are  able 

to  call  emergency  telephone  numbers,  and  in  particular  the  single  European 

emergency  call  number  <112>,  free  of  charge  from  any telephone,  including  public 

pay-telephones, without the use of coins or cards; 

8.  Whereas  quality  and  price  are  key  factors  in  a  competitive  market,  and  national 

regulatory  authorities  should be able to monitor  achieved  quality  of service  and  take 

appropriate corrective measures where necessary;  whereas these powers  are without 

prejudice  to  the  application  of  competition  law  by  national  and  Community 

authorities; 

9.  Whereas  conditions  on the  access to  and  use  of fixed  public  telephone  networks  or 

publicly  available  telephone  services  may  be  imposed  exceptionally  by  a  Member 

States  on  the  grounds  of  essential  requirements;  whereas  national  regulatory 

authorities may authorise procedures whereby an organisation  can act immediately  to 

restrict  access,  in  particular  in  the  case  of  fraud;  whereas,  except __in  cases  of 

..  * 

persistent  late payment  or non payment  of bills,  consumers  should be protected  from 

immediate  disconnection  from  the  network  on the  grounds  of  an unpaid  bill,  and  in 

particular  in  the  case  of  disputes  over  high  bills  for  premium  rate  services,  should 

continue  to  have  access  to  essential  telephone  services  pending  resolution  of  the 

dispute; 

15  OJ L 217, 06.08.1991, p.31. 

27 

10.  Whereas  the  facilities  of tone  dialling  and  itemised  billing  are  normally  available  on 

modern  telephone  exchanges  and  can  therefore  be  provided  inexpensivelyonce  old 

exchanges  are  modernised  or  new  exchanges  installed;  whereas  tone  dialling  is 

increasingly  being  used  for  interaction  with  special  services  and  facilities,  including 

value  added  services,  and  lack  of  this  facility  can  prevent  users  accessing  certain-

services;  whereas  itemised  billing and  selective call barring  are valuable  means  for 

users  to  control  and  monitor  their  usage  of telephone  networks;  whereas  progress 

has been made in the  Community  on a proposal  for  a Directive  on the protection  of 

personal data and privacy in the telecommunications  sector which will  safeguard  the 

privacy  of  users  with  regard  to  itemised  billing;  whereas  harmonised  technical 

interface  standards  have  been  drawn  up  by 

the  European  standardisation 

organisations  for  access to  the Integrated  Services Digital Network  (ISDN)  at  what 

is known as the S/T reference  point; 

11.  Whereas  certain prior obligations concerning tariffs  and cost  accounting  systems will 

no  longer  be  appropriate  once  competition  is introduced,  and  others  can be  relaxed 

by the  competent  national  regulatory  authority  as  soon  as  competition  achieves  the 

desired  objectives;  whereas  in  all  cases  the  non-discrimination  requirements  of  the 

competition rules of the Treaty apply; 

12.  Whereas  issues  related  to  the  level  of  affordability,  the  quality  of  service  and  the 

future  scope of the universal  service  should be the subject  of consultation  at  national 

level and  at the European  level with  all interested  parties; whereas  such  consultation 

requires  that  adequate  information  about  the  level,  quality  and  affordability  of 

universal  service  is  available;  whereas  disabled  users  should  wherever  possible 

28 

\ 

; | i H | p i > }/  •'•'receive a broadlyçsiriïïlârjlével of services  compared to other users in terms of their 

^^MipiïSlMWhèrèas the Gômniissidnlhàs to be able to monitor, effectively  the. application of this 

•fttNllll^ 

to  know where to find published  information 

;•,;••'-.-a;. 

14. v Whereas in-view'pf the forecast convergence of fixed and mobile telephone services,, 

v  the  applicability  of  the  Directive  with  respect  to  mobile  services  should  be  re 

examined when the Directive is reviewed;  whereas the review date of  31 December 

1999 will allow for a coordinated  review of all the ONP Directives  in the light  of 

experience with the liberalisation of public telecommunications  networks  and voice 

telephony services; 

15.  Whereas the essential goals of ensuring universal service for telecommunications  for 

all European  users  and  of harmonising  conditions  for  access  to  and  use  of fixed 

public  telephone  networks  and  publicly  available  telephone  services,  cannot  be 

realised satisfactorily at Member State level; 

29 

HAVE ADOPTED THIS DIRECTIVE: 

CHAPTER  1.  SCOPE,  AIM AND DÉFINITIONS 

Article 1 

Scope and aim 

1. 

This Directive  concerns the harmonisation  of conditions for  open  and  efficient 

access  to  and  use  of  fixed  public  telephone  networks  and  publicly  available 

telephone  services  in  an  environment  of  open  and  competitive  markets,in 

accordance with the principles of open network provision (ONP). 

The  aims  are  to  ensure  the  availability  throughout  the  Community  of  good 

quality  telephone  services,  and  to  ensure  that  all  users,  including  consumers, 

have access to a defined  set of telephone services at affordable  prices. 

2. 

This Directive replaces Directive 95/62/EC. 

Article 2 

Definitions 

1. 

The  definitions  given  in Directive 90/387/EEC  shall  apply,  where  relevant,  to 

this Directive. 

30 

2. 

For the purposes of this Directive: 

"users"  means  individuals,  including  consumers,  or  organisations 

using or requesting publicly available telecommunications services 

31 

"consumer"  means  any  natural  person  who  uses  a  fixed  public 

telephone network or publicly available telephone service for  purposes 

which are outside his or her trade, business or  profession. 

"fixed  public telephone  network"  means those  elements  of the  public 

switched  telecommunications  network  which  are  used,  in  all  or  in 

part,  for  the  provision  of  voice  telephony  service  between  network 

termination points which are at fixed locations; 

"public  pay-telephone"  means  a  telephone  available  to  the  general 

public,  for  the  use  of  which  the  means  of  payment  are  coins, 

credit/debit cards and/or pre-payment cards. 

"publicly  available  telephone  service"  means a service  made  available 

to  telephone  users  over  a  connection  to  the  fixed  public  telephone 

network,  which  includes  the  availability  of the  facilities  specified  in 

this Directive 

"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. 

"national  regulatory  authority"  means  the  body  or  bodies  in  each 

Member  State,  entrusted  by  that  Member  State,  inter  alia,  with  the 

regulatory functions  addressed in this Directive; 

"ONP  Committee"  means  the  Committee  created  by  Article 9(1)  of 

Directive 90/387/EEC; 

32 

"organisation  with  significant  market  power"  means  an  organisation 

providing fixed public telephone  networks  and/or  publicly "available 

telephone services in a Member  State which has been designated by 

the  national  regulatory  authority  in  that  Member  State  as  having 

significant market power and notified to the Commission. 

An organisation  shall be presumed  to  have significant  market  power 

when it has a share of 25% or more of the relevant voice telephony 

market  in a Member State. 

National  regulatory  authorities  may  determine  that  an  organisation 

with a market share of less than 25% in the relevant voice telephony 

market  has significant  market power.  They may also determine that 

an organisation with a market share of more than 25% in the relevant 

voice telephony  market  does not  have  significant  market  power.  In 

either  case, 

the  determination  shall 

take 

into  account 

the 

organisation'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,  its  experience  providing 

products and services in the market. 

CHAPTER n.  PROVISION OF A DEFINED SET OF TELECOMMUNICATIONS SERVICES 

Article 3 

Availability of telecommunications services 

33 

1.  Member  States  shall  ensure  throughout  their  territory  the  availability  of  the 

services set out in this Chapter 

Where  these  services  cannot  be  commercially  provided  on  the  basis  of 

conditions  laid  down  by  the  Member  State,  Member  States  may  set  up 

universal  service  schemes  for  the  shared  financing  of  these  services,  in 

conformity with Community law. 

Article 4 

Affordability 

1.  Member  States  shall  ensure,  in  the  light  of  their  national  conditions,  the 

affordability  of the services specified  in this Chapter. 

Taking  into  account  the  progressive  adjustment  of  tariffs  towards  costs, 

Member  States  shall  in  particular  maintain  the  affordability  of  the  specified 

services  for  users  in  rural  or  high  cost  areas,  where  necessary  by  taking 

measures  to  ensure  that  price  increases  in  rural  areas  are  not  used  to 

compensate losses in revenue resulting from price decreases elsewhere,  and  for 

vulnerable  groups  of  users  such  as  the  elderly,  those  with  disabilities,  those 

who do not use the telephone very much. 

To this end, Member  States shall remove  obligations which  prevent  or  restrict 

the use  of  special  or  targetted  tariff  schemes  for  the provision  of  the  services 

specified  in  this  Directive  and  may,  in  accordance  with  Community  law, 

implement  price  caps or  other  similar  schemes for  some or  all of the  specified 

services, for  a appropriate period of time. 

34 

Member  States  shall publish the  rules  and  criteria for  ensuring  affordability  at 

the national level, taking into account the consultation called for in Article 24. 

2.  Member States shall publish regular reports on the evolution of tariffs. 

Article 5 

Provision  of network connections and access to telephone services 

1.  Member  States  shall ensure  that  all  reasonable  requests  for  connection  to  the 

fixed  public  telephone  network  and  access  to  publicly  available  telephone 

services, at a fixed location, are met. 

The  connection  provided  shall  allow  users  to  make  and  receive  national  and 

international calls, supporting speech, facsimile and/or data communications. 

2.  Where,  taking  into  account  the  revenues  generated  as  a  result  of  that 

.. 

•* 

connection,  the  network  provider  states  that  the user  concerned-6an  only  be 

served  at  a  loss  or  under  cost  conditions  falling  outside  normal  commercial 

standards,  the  net  cost  of  serving  that  user  may  be  shared  with  other 

organisations under a universal service financing scheme. 

Article 6 

Directory  services 

35 

1. 

Subject  to  the  requirements  of  relevant  legislation  on  the  protection  of 

personal  data  and  privacy,  such  as  Directive  95/46/EC,  Member  States  shall 

ensure that: 

(a) 

subscribers  have  the  right  to  have  an  entry  in  publicly  available 

directories,  and  to  verify  and  if necessary  correct  or  request  removal 

of that entry; 

(b) 

directories of all subscribers who  consent  to  be listed,  including fixed 

and  personal  numbers,  are  available  to  users  in  printed  and  where 

appropriate,  electronic form,  and updated on a regular basis; 

(c) 

directory  enquiry  services covering  all  listed  subscribers  numbers  are 

available to all users, including users of public pay-telephones. 

2. 

In  order  to  ensure  provision  of  the  services  in  paragraph  2,  Member  States 

shall ensure that all organizations who assign telephone numbers to  subscribers 

make  available  on  request  the  relevant  information  in  an  agreed  format  on 

terms which are fair,  reasonable and non-discriminatory. 

3.  Member  States  shall  ensure  that  organisations  providing  the" service  in 

paragraph  2  follow  the  principle  of  non  discrimination  in  their  treatment  and 

presentation of information  provided to them. 

4.  Where  a Member  State finds that  no organisation  is willing to  make  telephone 

directories  publicly  available,  or  to  provide  directory  enquiry  services  to  all 

telephone  users  including  users  of  public  pay  telephones,  the  net  cost  of 

providing  these  services  may  be  shared  amongst  all  organisations  providing 

publicly  available  voice  telephony  services  under  a universal  service  financing 

scheme,  in accordance  with  Community  law. 

36 

Article 7 

Public pay-telephones 

1.  Member  States  shall  ensure  that  public  pay  telephones  are  provided  to  meet 

the  reasonable  needs  of  users,  in  terms  of  both  numbers  and  geographical 

coverage. 

2.  Member  States  shall  ensure  that  it  is possible  to  make  emergency  calls  from 

public pay-telephones  using  the single European  emergency  call number  '112' 

referred  to in Decision 91/396/EEC, and other national emergency numbers, all 

free of charge. 

3.  Where  a  Member  State  finds  that  certain  public  pay  telephones  can  only  be 

served  at  a  loss  or  under  cost  conditions  falling  outside  normal  commercial 

standards,  the net cost of providing those public pay telephones may be shared 

amongst  all  organisations  providing  public  telecommunications  networks 

and/or  publicly  available  voice  telephony  services  under  a  universal  service 

financing scheme, in accordance with Community law. 

Article 8 

Specific measures for  disabled users and users with special  needs 

Member  States  shall,  where  appropriate,  take  specific  measures  to  ensure 

access  to  and  affordability  of  telephone  services  for  disabled  users  and  users 

with special  needs. 

37 

CHAPTER  HI.  GENERAL  PROVISIONS  CONCERNING  FIXED  PUBLIC 

TELEPHONE  NETWORKS  AND  PUBLICLY  AVAILABLE  TELEPHONE 

SERVICES 

Article 9 

Connection of terminal equipment and use of the network 

Member States  shall  ensure  that  all  users  provided  with  a  connection  to  the 

fixed public telephone network can: 

(a) 

connect  and  use  terminal  equipment  suitable  for  the  connection 

provided,  in accordance with national and Community law; 

(b) 

access operator  assistance  services,  and  directory  enquiry  services  in 

accordance with Article 6; 

(c) 

access Emergency  Services at no charge,  using the dialling code '112' 

and  any  other  dialling  codes  specified  by  national  regulatory 

authorities for use at a national level. 

All  connections  to  the  fixed  public  telephone  network  installed  after  1st 

January  1998  should be  of a quality  that  supports,  in addition  to  speech,  data 

communications  at  rates  suitable  for  access  to  online  information  services,  ie 

14400 bit/s or more. 

Article 10 

Contracts 

38 

1. 

National  regulatory authorities shall ensure that organisations providing  access 

to  fixed  public  telephone  networks  provide  a  contract  which  specifies  the 

service and  service quality levels to be provided,  and the  compensation  and/or 

refund  arrangements for users that apply if the contracted  service quality levels 

are not  met. 

Contracts  shall contain  a summary of the  method  of  initiating 

procedures for the settlement of disputes in accordance with Article 26. 

2.  Without  prejudice  to  other  rights  of  appeal  provided  for  by  national  law, 

Member  States  shall  ensure  that  users,  and  where  national  law  so  provides, 

organizations representing user and/pr consumer interests, can bring before  the 

national  regulatory  authority  cases  where  compensation  and/or 

refund 

arrangements are deemed to be unsatisfactory  for users. 

National  regulatory  authorities  shall  be  able  to  require  the  alteration  of  the 

conditions  of  contracts  referred  to  in  paragraph  1,  and  the  conditions  of  any 

compensation  and/or refund  schemes used. 

Article  11 

_ 

Publication  of and access to information 

1.  Member  States  shall  ensure  that  all  organisations  providing  fixed  public 

telephone  networks  or  publicly  available  telephone  services  publish  adequate 

and  up-to-date  information  on access to  and use of the fixed public  telephone 

networks  and/or  publicly  available  telephone  services.  In  particular,  national 

regulatory  authorities  shall  ensure  that  tariffs  are  presented  clearly  and 

accurately. 

39 

2. 

National  regulatory  authorities  shall  ensure that  organisations  providing  fixed 

public  telephone  networks  provide  them  with  details  of  technical  interface 

specifications  for  network  access, as identified  in Annex II, part  1, to be made 

available  in  accordance  with  paragraph  4.  Changes  in  existing  network 

interface 

specifications 

and 

information  on  new  network 

interface 

specifications  shall  be  communicated  to  the  national  regulatory  authority  in 

advance of implementation.  The national regulatory authority may lay down  a 

suitable period of notice. 

3.  Where and for  as long as the provision of public telecommunications  networks 

and  publicly  available  voice  telephony  services  are  subject  to  special  or 

exclusive rights in a Member  State, national regulatory  authorities  shall  ensure 

that  adequate  and  up-to-date  information  on  access  to  and  use  of  the  fixed 

public  telephone  networks  and  publicly  available  telephone  services 

is 

published  according  to  the  list  of  headings  given  in  Annex II,  part  2  in  the 

manner laid down in paragraph 4. 

4. 

National  regulatory  authorities  shall  ensure  that  the  information  is  made 

available  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. 

5. 

National  regulatory  authorities  shall  notify  to  the  Commission  no  later  than  1 

July  1997  the manner in which the information  referred  to  in paragraph 2  and 

3  is  made  available.  The  Commission  shall  regularly  publish  a  reference  to 

such  notifications  in the  Official  Journal  of the  European  Communities.  Any 

changes shall be immediately  notified. 

40 

Article 12 

Quality of service 

1.  Member  States  shall take the necessary  steps to  ensure quality  of the  services 

identified  in this Directive.  In  particular,  they  may  set  performance  targets  in 

the  authorisations  that  apply to  organisations  providing fixed public  telephone 

networks and/or publicly available telephone services. 

In  the  case  of  organisations  who  retain  special  or  exclusive  rights  for  the 

provision  of fixed public telecommunications  networks and/or voice  telephony 

services, Member  States  shall ensure that targets  are  set  and  published  for  the 

relevant parameters laid down in Annex HI, in accordance with Article  11(4). 

2. 

National  regulatory  authorities  shall  ensure  that  organisations  who  have  been 

providing fixed public telephone  networks  and/or  publicly  available  telephone 

services  for  more  than  18  months  start  to  keep  up-to-date 

information 

concerning  their  performance  based  on  the  parameters,  definitions  and 

measurement  methods  laid  down  in  Annex  III.  This  information  shall  be 

provided to the national regulatory authority on request. 

3.  Where appropriate,  and  in particular  as a result  of consultation  with  interested 

parties  in  accordance  with  the  provisions  of  Article  24,  national  regulatory 

authorities  shall  ensure  publication  of  the  performance  data  referred  to  in 

paragraph  1, and may set performance targets for organisations  providing fixed 

public  telephone  networks  and/or  publicly  available telephone  services  where 

these do not exist already, in accordance with Article  11(4). 

Hl~ 42 

Persistent  failure  of an organisation  to  meet  performance  targets  may result  in 

specific  measures  being  taken  in  accordance  with  conditions  set  out  in  the 

relevant authorisation for that  organisation. 

4. 

National  regulatory  authorities  shall  have  the  right  to  call  for  independent 

audits  of  the  performance  data  in  order  to  ensure  the  accuracy  and 

comparability  of  the  data  made  available  by  the  organisations  referred  to  in 

paragraph  1. 

Article 13 

Conditions  of access and use and essential requirements 

1. 

National  regulatory  authorities  shall have procedures  in order  to  decide,  on  a 

case-by-case  basis  and  in the  shortest  possible time period,  whether  or  not  to 

allow  organizations  providing fixed public telephone  networks  and/or  publicly 

available  telephone  services  to  take  measures  such  as  the  refusal  to  provide 

access to the fixed public telephone network  or the interruption  or reduction in 

availability of service, for  reasons of a user's alleged failure to  comply with the 

conditions of use.  These procedures may also provide for the possibility of the 

national  regulatory  authority  authorizing  a  priori  specified  measures  in  the 

event  of defined  infringements  of the conditions of use, in particular  fraudulent 

use. 

The  national  regulatory  authority  shall  ensure  that  these  procedures  provide 

for  a transparent  decision-making  process in which  due respect  is given to  the 

rights  of the parties.  The  decision  shall be taken  after  both  parties  have been 

given  the  opportunity  to  state  their  case.  The  decision  shall  be  duly 

substantiated  and notified  to the parties within one week of its adoption. 

43 

A  summary of these procedures  shall be published  in the  manner  laid  down  in 

Article 1.1(4). 

This provision  shall not  prejudice  the  rights  of the  parties  concerned  to  apply 

to the courts. 

2.  Member  States  shall  ensure  that,  when  access  to  or  use  of  fixed  public 

telephone networks and/or publicly available telephone services is restricted  on 

the  basis  of  essential  requirements;  the  relevant  national  provisions  identify 

which of the essential requirements  set  out  in (a) to  (e) below  are the basis  of 

such restrictions. 

These  restrictions  shall be  imposed  through  regulatory  means  which  can  be 

challenged  in court,  and  shall be published  in the  manner  laid  down  in  Article 

11(4). 

Without  prejudice  to  action  which  may  be  taken  in  accordance  with 

Articles 3(5)  and  5(3)  of  Directive 90/387/EEC,  the  following  essential 

requirements  shall  apply  to  the  fixed  public  telephone  network  and  publicly 

available telephone services in the following  manner: 

(a) 

Security of network operations 

Member  States  shall  take  all  necessary  steps  to  ensure  that  the 

availability  of fixed public  telephone  networks  and  publicly  available 

telephone  services is maintained  in the  event  of  catastrophic  network 

breakdown  or  in  cases  of force  majeure,  such  as  extreme  weather, 

earthquakes, flood,  lightning or fire. 

44 

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 authorities. 

National  regulatory  authorities  shall  ensure  that  any  restrictions  on 

access  to  and  use  of  the  fixed  public  telephone  network  on  the 

grounds  of  the  security  of  networks  are  proportionate  and  non 

discriminatory,  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 fixed public  telephone  networks  is  maintained.  National 

regulatory  authorities  shall  ensure  that  restrictions  on  access  to  and 

use  of  the  fixed  public  telephone  network  on  the  grounds  of 

maintenance  of  network  integrity,  in  order  to  protect  inter  alia 

network equipment,  software  or stored  data,  are kept to tr^e minimum 

necessary  to  provide  for  normal  operation  of  the  network.  Such 

restrictions  shall  be  non-discriminatory,  and  be  based  on  objective 

criteria identified  in advance. 

(c) 

Interoperability  of services 

When 

terminal  equipment 

is  operating 

in  compliance  with 

Directive 91/263/EEC, no further  restrictions  on use shall be  imposed 

on the grounds of interoperability of services. 

45 

(d)  Protection of data 

Conditions  on access to  and use  of fixed public telephone  networks 

and/or publicly available telephone services based  on the grounds of 

protection  of data may be imposed  only in accordance with relevant 

legislation  on  the  protection  or  personal  data  and  privacy,  such  as 

Directive 95/46/EC. 

(e)  Effective use of the frequency spectrum 

Member  States  shall take  all necessary  steps to  ensure the  effective 

use  of  the  frequency  spectrum  and  the  avoidance  of  harmful 

interference  between radio-based  systems that  could  restrict  or limit 

access  to  or  use  of  fixed  public  telephone  networks  and  publicly 

available telephone services. 

3.  Where  and for  as long as Member  States maintain  special or exclusive rights 

for  the provision of public telecommunications  networks  and voice telephony 

services, conditions imposed on users on the basis of such special or exclusive 

rights shall be imposed  through regulatory  means and with  the agreement  of 

the national regulatory authority. 

CHAPTER TV.  SPECIFIC PROVISIONS CONCERNING PUBLIC  TELEPHONE 

NETWORKS AND PUBLICLY AVAILABLE TELEPHONE  SERVICES 

46 

Article 14 

Itemized billing, tone dialling and selective call barring 

» " 

1.  Member  States  shall  ensure  that  all  organisations  providing  publicly  available 

telephone  services  over  fixed  public  telephone  networks  make  available,  as 

early as possible, the facilities of: 

- 

tone dialling 

- 

itemized billing and selective call barring as facilities available on request. 

Tone dialling and selective call barring are specified  in Annex I, part  1. 

National  regulatory  authorities  shall  ensure  that  these  facilities  are  offered  to 

most  telephone  users  before  31  December  1998,  and  are  generally  available 

before  31 December 2002. 

2. 

Subject  to  the  requirements  of  relevant  legislation  on  the  protection  of 

personal  data  and  privacy,  such  as  Directive  95/46/EC,  itemized  bills  shall 

show a sufficient  level of detail to allow verification  and control of the  charges 

incurred  in using the fixed public telephone  network  and/or  publicly  available 

telephone services. 

"~~ 

A basic level of itemised billing shall be available at no extra charge to the user. 

Where  appropriate,  additional  levels  of  detail  may  be  offered  to  users  at 

reasonable tariffs.  National regulatory authorities may lay down the basic level 

of itemised bill. 

Calls to helplines which are free of charge to the caller shall not be identified  in 

the caller's itemized bill. 

47 

Article 15 

Provision of additional facilities 

1. 

National  regulatory  authorities  shall  ensure that  organisations  with  significant 

market  power  in  the  provision  of  telephone  services  over  fixed  public 

telephone  networks  provide,  subject  to  technical  feasibility  and  economic 

viability,  the facilities listed in Annex I, part 2. 

2. 

National  regulatory  authorities  shall  facilitate  and  encourage  provision  of  the 

services  and  facilities  listed  in  Annex. I  part  3,  in  compliance  with  the 

competition rules of the Treaty. 

3. 

National  regulatory  authorities  shall  ensure  that  dates  for  the  introduction  of 

the  facilities  listed  in  Annex  I  part  2  are  set,  taking  into  account  the  state  of 

network  development,  market  demand  and  progress with  standardization,  and 

are published in the manner laid down in Article  11(4). 

Article 16 

Special network access 

1. 

National  regulatory  authorities  shall  ensure  that  the  organisations  with 

significant  market  power  in the  provision  of fixed public  telephone  networks 

deal  with 

reasonable 

requests 

from 

organisations 

providing 

telecommunications  services  for  access  to  the fixed public  telephone  network 

at  network  termination  points  other  than  the  commonly  provided  network 

termination points referred  to in Annex II, part 1. 

48 

2. 

The organisation making such a request  shall be granted the opportunity to  put 

its  case to  the  national  regulatory  authority  before  a final decision  is taken  to 

restrict or deny access in response to a particular request. 

Where a request for  special network  access is denied, the organisation  making 

the request  should  be given a  prompt  and justified  explanation  as to  why  the 

request has been  refused. 

3. 

Technical  and  commercial  arrangements  for  special  network  access  shall  be  a 

matter  for  agreement  between  the parties  involved,  subject  to  intervention  by 

the national  regulatory  authority  as laid  down  in paragraphs  2,  4  and  5.  The 

agreement may include reimbursement  to the organization  of its costs  incurred 

inter alia  in providing the network  access requested;  these  charges  shall  fully 

respect 

the  principles  of  cost  orientation  set  out 

in  Annex  H 

to 

Directive 90/3 87/EC. 

4. 

National  regulatory  authorities  may  intervene  on  their  own  initiative  at  any 

time, and shall do so if requested by either party, in order to  set conditions that 

are  non discriminatory,  are  fair  and  reasonable  for  both  parties  ar^i  offer  the 

greatest benefit to all users. 

5. 

National  regulatory  authorities  shall  also  have  the  right,  in  the  interest  of  all 

users,  to  ensure  that  the  agreements  include  conditions  that  meet  the  criteria 

set  out  in  paragraph 4,  are  entered  into  and  implemented  in  an  efficient  and 

timely  manner  and  include  conditions  on  conformity  with  relevant  standards, 

compliance  with  essential  requirements  and/or  the  maintenance  of  end-to-end 

quality. 

49 

6. 

Conditions  set  by  national  regulatory  authorities 

in  accordance  with 

paragraph 5 shall be published in the manner laid down in Article  11(4). 

7. 

National  regulatory  authorities  shall  ensure  that  organizations  with  significant 

market  power  referred  to  in  paragraph  1  adhere  to  the  principle  of  non 

discrimination when they make use of the fixed public telephone  network,  and 

in  particular  use  any  form  of  special  network  access,  for  providing  publicly 

available telecommunications services. 

8.  Where  appropriate,  the  Commission  shall,  in  consultation  with  the  ONP 

Committee,  acting  in  accordance  with  the  procedure  laid  down  in  Article 29, 

request  ETSI  to  draw  up  standards  for  new  types  of  network  access. 

Reference  to  such  standards  shall  be  published  in  the  Official  Journal  of  the 

European Communities in accordance with Article 5 of Directive 90/387/EEC. 

9. 

Details of agreements  for  special network  access shall be made available to  the 

national regulatory authority upon its request. 

Article  17 

~ 

Tariff principles 

1.  Without  prejudice  to  the  specific  provisions  of  Article  4  in  relation  to 

affordability,  national regulatory authorities shall ensure that organisations with 

significant  market  power  for  the  provision  of  voice  telephony  services  over 

fixed public telephone networks comply with the provisions of this Article. 

2. 

Tariffs  for  use  of  the  fixed  public  telephone  network  and  publicly  available 

telephone services shall follow the basic principles of cost  orientation  set out in 

50 

Annex  II  to  Directive 90/387/EC. 

In  particular,  the  facilities  referred  to  in 

Article  14 of this Directive shall be provided at affordable  prices! 

3. 

Tariffs  for  access  to  and  use  of  the  fixed  public  telephone  network  shall  be 

independent  of the  type  of  application  which  the  users  implement,  except  to 

the extent that they require différent  services or facilities. 

4. 

Tariffs  for facilities additional to the provision of connection to the fixed public 

telephone  network  and  publicly  available 

telephone  services  shall, 

in 

accordance with Community law, be sufficiently  unbundled,  so that the user  is 

not  required  to  pay  for  facilities  which  are  not  necessary  for  the  service 

requested. 

5. 

Tariff  changes  shall  be  implemented  only  after  an  appropriate  public  notice 

period,  set by the national regulatory authority, has been observed. 

6. 

A  Member  State  may  authorise  its  national  regulatory  authority  not  to  apply 

the  requirements  of  paragraphs  2,  3,  4  or  5  in  a  specific  geographical  area 

where  it is satisfied  that there is effective  competition in the relevant  telephone 

services market. 

Article 18 

Cost accounting principles 

1.  Member  States  shall  ensure  that,  where  an  organisation  has  an  obligation  for 

its tariffs  to  follow  the  principle of cost  orientation  in accordance  with  Article 

17,  the  cost  accounting  systems  operated  by  such  organizations  are  suitable 

51 

for the implementation of Article  17 and that compliance with such systems are 

verified  by  a  competent  body  which  is  independent  of  those  organizations. 

National  regulatory  authorities  shall  ensure  that  a  statement  concerning 

compliance is published annually. 

2. 

National  regulatory  authorities  shall  ensure  that  a  description  of  the  cost 

accounting  system  referred  to  in  paragraph  1,  showing  the  main  categories 

under which costs are gathered and the rules used for the allocation of costs to 

the  voice  telephone  service,  is  made  available  to  it  on  request.  National 

regulatory  authorities  shall  submit  to  the  Commission  on  request  information 

on the cost accounting systems applied by the organizations  concerned. 

3.  Where and as long as the provision of public telecommunications networks and 

voice telephony  services are subject  to  special  or exclusive rights in a Member 

State,  the system referred  to in paragraph  1 shall, without  prejudice to the last 

subparagraph of this paragraph, include the following  elements: 

(a) 

the  costs  of the voice telephony  service  shall in particular  include  the 

direct  costs  incurred  by  the  telecommunications  organizations  in 

setting up,  operating  and maintaining the voice telephony  service  and 

in marketing and billing the service. 

(b) 

common  costs,  that  is  costs  which  cannot  be  directly  assigned  to 

either the voice telephony  service or other activities,  shall be allocated 

as follows: 

(i)  whenever  possible,  common  cost  categories  shall  be  allocated  on 

the basis of direct analysis of the origin of the costs themselves; 

52 

(ii) when direct  analysis is not possible, common  cost  categories  shall 

be  allocated  on  the  basis  of  an  indirect  linkage  to  another  cost 

category  or group  of cost categories for  which a direct assignment  or 

allocation 

is  possible;  the  indirect  linkage  shall  be  based  on 

comparable cost structures; 

(iii)when neither direct nor indirect measures of cost allocation can be 

found,  the  cost  category  shall  be  allocated  on  the  basis  of  a  general 

allocator  computed  by  using  the  ratio  of  all  expenses  directly  or 

indirectly  assigned  or  allocated,  on  the  one  hand,  to  the  voice 

telephonysservice and, on the other hand, to other services. 

Other  cost  accounting  systems  may  be  applied  if  they  are  suitable  for  the 

implementation  of  Article  17 and  have been  approved  as  such by the  national 

regulatory  authority  for  application  by the  telecommunications  organizations, 

subject to the Commission being informed  prior to their  application. 

4.  Member  States  shall  ensure  that  the  financial  accounts  of  all  organisations 

providing  fixed  public telephone  networks  and/or  publicly  available, telephone 

services are drawn up, submitted to audit and published in accordance with the 

provisions  of  national  and  Community  legislation  applying  to  commercial 

undertakings.  Detailed  accounting  information  shall  be  made  available  to  the 

national regulatory authority on its request and in confidence. 

Article 19 

Discounts and other special tariff  provisions 

53 

Member  States  shall ensure that,  where an organisation has an obligation  for 

its tariffs to follow the principle of cost orientation in accordance with" Article 

17, discount schemes for end users (including consumers)  are fully transparent 

and  published  and  applied  in  accordance  with  the  principle  of  non 

discrimination. 

National  regulatory  authorities  may  require  such  discount  schemes  to  be 

modified or withdrawn. 

Article 20 

Specifications for  network access, including the socket 

1. 

Standards  suitable  for  access  to  fixed  public  telephone  networks  shall  be 

published  in the  ONP  List  of  Standards  referred  to  in  Article  5  of  Directive 

90/387/EC. 

2.  Where  telephone  services are supplied  to  users over the ISDN  network  at  the 

S/T  reference  point,  national  regulatory  authorities  shall ensure that  the  ISDN 

network  termination  points  comply  with  the  relevant  physical 

interface 

specifications,  in particular those for the socket,  referenced  in the ONP List  of 

Standards. 

Article 21 

Non-payment of bills 

Member  States 

shall  authorize  specified  measures,  which 

shall  be 

proportionate,  non-discriminatory  and  published  in  the  manner  laid  down  in 

54 

Article 11(4),  to  cover  non-payment  of  telephone  bills  for  use  of  the fixed 

public telephone network.  These measures  shall ensure that  due warning is 

given to  the  subscriber beforehand  of any consequent  service interruption  or 

disconnection. 

Except in cases of persistent late or non payment, these measures shall ensure, 

as far  as is technically feasible, that any service interruption is confined  to the 

service  concerned,  and that  complete  disconnection  takes  place  only  after  a 

stated  period  during which calls are permitted  that  do not  incur  a charge  to 

that subscriber. 

55 

Article 22 

Conditions for  the termination of offerings 

. 

1. 

The provisions of this article shall apply where and for  as long as the provision 

of public telecommunications  networks  and publicly  available voice  telephony 

services are subject to special or exclusive rights in a Member State. 

2. 

National 

regulatory  authorities  shall  ensure 

that  service  offerings  of 

organisations  with  such  special  or  exclusive  rights  continue  for  a  reasonable 

period  of time and that termination  of an  offering,  or  a change  that  materially 

alters the use that  can be made of it, can be done only  after  consultation  with 

users  affected  and  an  appropriate  public  notice  period  set  by  the  national 

regulatory  authority. 

3.  Without  prejudice  to  other  rights  of  appeal  provided  for  by  national  law, 

Member  States  shall  ensure  that  users,  and  where  national  law  so  provides, 

organizations representing user and/or consumer interests, can bring before  the 

national  regulatory  authority  cases where the users affected  do  not  agree  with 

the termination date as envisaged by the organization  concerned. 

Article 23 

Variation of published  conditions 

1. 

The provisions of this article shall apply where and for  as long as the provision 

of public telecommunications  networks  and  publicly  available voice  telephony 

services are subject to  special or exclusive rights in a Member State. 

56 

2.  Where in response to a particular request an organisation with such special or 

exclusive rights considers it unreasonable to provide a connection to the  fixed 

public telephone network  under its published  tariffs  and  supply  conditions, it 

must  seek  the  agreement  of the  national  regulatory  authority  to  vary  those 

conditions in that case. 

57 

CHAPTER  V.  PROCÉDURAL PROVISIONS 

Article 24 

Consultation 

Member  States  shall  ensure  consultation,  in  accordance  with  national 

procedures,  with  the  representatives  of  organisations  providing  public 

telecommunications  networks, of users,  consumers,  manufacturers  and  service 

providers  on issues related  to the  scope,  affordability  and  quality  of  telephone 

services.  Where  appropriate,  the  Commission  shall  ensure  additional 

consultation at the European level on these issues. 

Article 25 

Notification and reporting 

1.  Member  States  shall notify  to the Commission  any changes  in  the4nformation 

which  had  to  be  published  under  Directive  95/62/EC.  The  Commission  shall 

publish this information  in the Official  Journal of the European  Communities. 

2.  Member  States shall also notify to the Commission: 

-  organisations  with  significant  market  power  for  the  purposes  of  this 

Directive 

-  details  of  situations  where  organizations  providing  fixed  public  telephone 

networks  and/or  publicly  available  telephone  services  no  longer  have  to 

58 

'•'  follow  the principle of cost  orientation  of tariffs,  in accordance  with  Article 

: 

17(6) 

The  Commission  may  request  national  regulatory  authorities  to  provide  their 

reasons for classifying  or not classifying  organisations in these two categories. 

3.  Where  a Member  State  maintains  special  or  exclusive rights for  the  provision 

of  public  telecommunications  networks  and  publicly  available  telephone 

services,  national  regulatory  authorities  shall keep  available  and  submit  to  the 

Commission  on request  details  of individual  cases brought  before  them,  other 

than  those  covered  by  Article 21,  where  access  to  or  use  of  the  fixed  public 

telephone  network  or  voice  telephony  service  has  been  restricted  or  denied, 

including the measures taken and their justification. 

Article 26 

Conciliation and national dispute  resolution 

. 

«* 

Without prejudice to: 

(a) 

any action that the Commission or any Member  State may take pursuant to  the 

Treaty; 

(b) 

the  rights  of the  person  invoking  the  procedure  in paragraphs  3  and  4,  of  the 

organizations  concerned  or  of any other  person  under  applicable  national  law, 

except  insofar  as  they  enter  into  an  agreement  for  the  resolution  of  disputés 

between them; 

59 

(c) 

the  provisions  of Article  10(2) which  allow the  national  regulatory  authorities 

to alter  the conditions of subscriber contracts, 

— 

the following procedures shall be available: 

(1)  Member  States shall ensure that any party, including for  example users, service 

providers,  consumers,  or  other  organizations  having  an  unresolved  dispute 

with an organization  providing fixed public telephone networks and/or publicly 

available  telephone  services  concerning  an  alleged 

infringement  of  the 

provisions  of  this  Directive,  shall  have  a  right  of  appeal  to  the  national 

regulatory  authority  or  another  independent  body.  Easily  accessible  and  in 

principle inexpensive procedures  shall be available at a national level to  resolve 

such  disputes in a fair,  transparent  and timely manner.  These  procedures  shall 

in  particular  apply  in  cases  where  users  are  in  dispute  with  an  organization 

about  their telephone  bills, or the terms  and  conditions under  which  telephone 

service is provided. 

(2)  A  user  or  an  organization  may,  where  the  dispute  involves  organizations  in 

more  than  one Member  State,  invoke the  conciliation  procedure  provided  for 

in  paragraphs  3  and  4  by  means  of  a  written  notification  to  the  national 

regulatory  authority  and  to  the  Commission.  Member  States  may  also  allow 

their national regulatory authority to invoke the conciliation  procedure. 

(3)  Where the national regulatory authority  or the Commission finds that there is a 

case  for  further  examination,  following  a notification  based  on  paragraph  2, it 

can refer  the matter to the Chairman of the ONP Committee. 

60 

(4) 

In  the  circumstances  referred  to  in  paragraph  3,  the  Chairman  of  the  ONP 

Committee  shall  initiate  the  procedure  described  below  if  satisfied-that  all 

reasonable steps have been taken at national level: 

(a) 

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  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 be  chaired  by  the  representative  of  the  Commission  and 

shall  normally  meet  within  ten  days  of  having  been  convened.  The 

Chairman of the working group may decide, upon  proposal  by any  of 

the members of the working group, to invite a maximum of two  other 

persons as experts to advise it; 

(b) 

the  working  group  shall  give  the  party  invoking  this  procedure,  the 

national  regulatory authorities of the Member  States involved  and  the 

organizations  involved  the  opportunity  to  present  their  opinions  in 

oral or written form; 

_ 

(c) 

the  working  group  shall  endeavour  to  reach  agreement  between  the 

parties  involved  within  three  months  of  the  date  of  receipt  of  the 

notification  referred  to  in  paragraph  2.  The  Chairman  of  the  ONP 

Committee  shall  inform  that  Committee  of  the  results  of  the 

procedure so that it may express its views. 

(5)  The  party  invoking  the  procedure  shall  bear  its  own  costs  of  participating  in 

this procedure. 

61 

Article 27 

Deferment of certain obligations 

1. 

The dates laid down in any deferments granted in relation to Article  12 and 13 

of Directive 95/62/EC shall remain unchanged. 

62 

Article 28 

Technical adjustment  . 

~ 

Modifications  necessary  to  adapt  Annexes  I,  II  and  HI  to  this  Directive  to 

technological  developments  or  to  changes  in  market  demand  shall  be 

determined in accordance with the procedure laid down in Article 29. 

Article 29 

Advisory Committee procedure 

1. 

The Commission shall be assisted by the ONP Committee. 

The  Committee  shall,  in  particular,  consult 

the  representatives  of  the 

organizations  providing  fixed  public  telephone  networks,  publicly  available 

telephone services, users, consumers and  manufacturers. 

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 me urgency 

of the matter, if necessary by taking a vote. 

The  opinion  shall be  recorded  in the  minutes; in  addition,  each Member  State 

shall have the right to ask to have its position recorded in the minutes. 

The Commission shall take the utmost  account  of the  opinion delivered  by the 

Committee.  It  shall inform  the  Committee  of the manner  in which  its  opinion 

has been taken into account. 

63 

Article 30 

Review 

The  Commission  shall examine  and  report  to  the European  Parliament  and  to 

the Council  on the functioning  of this Directive, on the first occasion  not  later 

than  31  December  1999,  taking  into  account  the Report  on Universal  service 

to be published by the Commission before  1  January  1998.  The review shall be 

based  inter  alia  on  the  information  provided  by  the  Member  States  to  the 

Commission, and shall in particularexamine: 

the  scope  of  the  Directive,  and  in  particular  whether  some  of  its 

provisions should apply to mobile telephony 

the  provisions  in  chapter  II  in  the  light  of  changes  in  market 

conditions, users demand and technological  progress 

the maintenance of the obligations imposed under Articles  17,  18  and 

19 in the light of the emergence of competition. 

Where necessary, further  periodic reviews may be proposed in the report. 

Article 31 

Transposition 

1.  Member  States shall take the measures necessary to comply with this Directive 

before  31  December  1997.  They  shall  forthwith  inform  the  Commission 

thereof. 

When  Member  States  adopt  these  measures,  they  shall  contain  a  reference  to 

this  Directive  or  shall  be  accompanied  by  such  reference  on  the  occasion  of 

64 

their  official  publication.  The  methods  of making  such  reference  shall be  laid 

down by the Member States. 

— 

2.  Member  States shall inform the Commission of the main provisions of national 

law which they adopt in the field governed by this Directive. 

Article 32 

Repeal of Directive  95/62/EC 

Directive  95/62/EC  is hereby repealed  with  effect  from  31 December  1997,  without 

prejudice  to  Member  States'  obligations  for  implementation  of  that  Directive 

according to the timescales laid down in Annex IV. 

References  made to  the  repealed  Directive  shall be  construed  as being  made to  this 

Directive. 

Annex V provides  a table showing the relationship between the Articles  of Directive 

95/62/EC and the Articles of this Directive. 

Article 33 

Entry into force 

This  Directive  shall  enter  into  force  on  the  twentieth  day  following  that  of  its 

publications in the Official  Journal of the European  Communities. 

65 

Article 34 

Addressees 

This Directive is addressed to the Member States. 

Done at Brussels, [date] 

For the European Parliament 

The President 

For the Council 

The President 

66 

ANNEX  I 

DESCRIPTION OF  FACILITIES REFERRED TO IN ARTICLES  14 AND 15 

Part  1. Facilities referred to in Article  14(1) 

(a)  Tone dialling  or DTMF  (dual-tone multifrequency  operation) 

i.e. the fixed public telephone network  supports  the use  of DTMF  telephones 

for  signalling 

to 

the  exchange,  using 

tones  as  defined 

in 

ITU-T 

Recommendation  Q.23, and supports the same tones for  end-to-end  signalling 

through  the  networjc,  both  within  a  Member  State  and  between  Member 

States. 

(b)  Selective  call barring for  outgoing calls 

i.e. the facility whereby the subscriber can,  on request to the telephone  service 

provider, bar outgoing calls of defined types or to defined  types of numbers. 

Part 2 

List of facilities referred  to in Article  15(1): 

(a)  Calling-line  identification 

i.e. the  calling  party's  number is presented  to  the  called  party  prior to  the call 

being established. 

This  facility  should  be  provided  in  accordance  with  relevant  legislation  on 

protection  of personal data and privacy, such as Directive 95/46/EC. 

67 

(b)  Direct  dialling-in  (or facilities  offering equivalent  functionality) 

i.e. users on a private branch exchange (PBX) or similar private system can be 

called  directly  from  the fixed public telephone  network,  without  intervention 

of the PBX attendant. 

(c)  Call  forwarding 

i.e. incoming calls sent to another  destination  in the  same or  another  Member 

State (e.g. on no reply, on busy, or unconditionally). 

This  facility  should  be  provided  in  accordance  with  relevant  legislation  on 

protection of personal data and privacy, such as Directive 95/46/EC. 

Part 3 

.  List of services and facilities referred  to in Article  15(2): 

(a)  Community-wide access to green/freephone services 

These  services,  variously  known  as  green  numbers,  freephone  services, 

0800 numbers etc. cover dial-up services where the caller pays nothing for  the 

call to the number dialled. 

(b)  Shared  cost services 

These  services  cover  dial-up  services  where  the  caller  pays  only  part  of  the 

cost  of the call to the number dialled. 

(c)  Community-wide premium  rate services / shared revenue  sennces 

63 

Premium  rate  service  is  a  facility  whereby  charges  for  the  use  of  a  service 

accessed  through  a  telecommunications  network  are  combined  with  the 

network call charges. 

(d)  Community-wide calling-line  identification 

i.e. the  calling party's number is presented  to  the called  party prior to  the  call 

being established. 

' 

This  facility  should  be  provided  in  accordance  with  relevant  legislation  on 

protection of personal data and privacy, such as Directive 95/46/EC. 

(e)  Access  to operator services in other Member  States 

i.e.  users  in  one  Member  State  can  call  the  operator/assistance  service  in 

another Member State. 

(f)  Access  to directory enquiry services in other Member  States 

i.e. users in one Member State can call the directory enquiry service in another 

Member State. 

This facility  should be provided in accordance with relevant legislation on 

protection of personal data and privacy,  such as Directive 95/46/EC. 

69 

ANNEX  H 

HEADINGS FOR INFORMATION TO BE PUBLISHED 

IN ACCORDANCE WITH ARTICLE  11 

. 

PARTI  -  INFORMATION TO BE SUPPLIED TO THE NATIONAL 

REGULATORY AUTHORITY IN ACCORDANCE WITH ARTICLE  11(2) 

TECHNICAL  CHARACTERISTICS  OF NETWORK  INTERFACES 

Technical  characteristics  of  interfaces  at  commonly  provided  network  termination 

points  are required,  including  where  applicable  reference  to  relevant  national  and/or 

international standards or recommendations: 

-  for  analogue and/or digitally presented networks: 

(a) single line interface; 

(b) multiline interface; 

(c) direct dialling-in (DDI) interface; 

(d) other interfaces  commonly provided; 

-  for ISDN: (where provided) 

(a) 

specification  of basic and primary rate interfaces  at the  S/T 

reference  points, including the signalling protocol; 

70 

(b) 

details of bearer services able to carry voice telephony 

services; 

(c) 

other interfaces  commonly provided; 

-  and any other interfaces  commonly provided. 

In  addition  to  the  above  information  to  be  submitted  to  the  National  regulatory 

authority  on  a  regular  basis  in  the  manner  laid  down  in  Article  11(2),  all 

organizations  providing fixed public telephone  networks  must  inform  their  National 

regulatory  authority,  without  undue  delay,  of  any  particular  network  characteristics 

which are found  to affect  the correct operation of terminal  equipment.  The national 

regulatory  authority  shall  make  this  information  available  on  request  to  terminal 

equipment  suppliers. 

PART 2  -  INFORMATION TO BE PUBLISHED  IN ACCORDANCE WITT! 

ARTICLE  11(3) 

Note.  The  national  regulatory  authority  has  a  responsibility  to  ensure  that  the 

information  in this Annex is published,  in accordance with Article  11(3).  It is for  the 

national  regulatory  authority  to  decide which  information  is  to  be  published  by  the 

organisations  providing  telecommunications  networks  and/or  publicly  available 

telephone services, and which by the national regulatory authority itself. 

71 

1. 

Name(s) and address(es) of organisation(s) 

i.e.  names and head office  addresses of organizations  providing fixed 

public 

telephone  networks  and/or  publicly  available 

telephone 

services. 

2 

Telephone services  offered 

2.1 

Scope of the basic service 

Description  of the basic telephone  services offered,  indicating what  is included 

in  the  subscription  charge  and  the  periodic  rental  charge  (e.g.  operator 

services,  directories,  directory  services,  selective  call barring,  itemised  billing, 

maintenance etc). 

Description  of  optional  facilities  and  features  of  the  telephone  service  which 

are  tariffed  separately  from  the  basic  offering,  including  where  applicable 

reference  to  the  relevant  technical  standards  or  specifications  to  which  they 

conform. 

2.2 

Tariffs 

- * 

covering  access, all types of call charges, maintenance, and  including details of 

discounts applied and special and targetted tariff schemes. 

2.3 

Compensation/refund policy 

including  specific  details  of  any  compensation/refund  schemes 

offered. 

2.4. 

Types of maintenance service offered 

72 

2.5. 

Standard contract conditions  " 

including any minimum contractual period, if relevant. 

73 

3. 

Conditions for attachment of terminal equipment 

This  shall include a complete overview  of requirements for  terminal  equipment  in 

line with the provisions of Directives 91/263/EEC or 93/97/EEC, including, where 

appropriate,  conditions  concerning  customer  premises wiring  and  location  of  the 

network termination point. 

4. 

Restrictions on access and use 

This shall include any restrictions on access and use imposed in accordance with the 

requirements of Article 13 

74 

ANNEX  m 

S U P P L Y - T I ME  A ND 

Q U À L I T Y - O F - S E R V I CE 

INDICATORS,  DEFINITIONS AND MEASUREMENT METHODS 

IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 12 

T ^ T ^ . ™™ 
INDICATOR 
/ïTATr  1X 
(NOTE 1) 

r.r.T.^TT^T^KT 
DEFINITION 

j 

M E A S U R E M E NT 

METHOD 

supply time for initial 

E T SI  E TR  1 3g 

£ T SI  E TR  1 3g 

connection 

fault rate per access line 

ETSI ETR  138 

ETSI ETR  138 

fault repair time 

ETSI ETR  138 

ETSI ETR  13 8 

unsuccessful  call ratio 

ETSI ETR  138 

ETSI ETR  13 8 

call set up time 

ETSI ETR  138 

ETSI ETR  138 

*  * 

response times for operator 

E T SI  E TR  1 3g 

E T SI  E TR  1 3g 

services 

response times for directory  as for operator services 

as for operator  services 

enquiry services 

proportion of coin and card 

E T SI  E TR  ng 

E T SI  E TR  1 3g 

operated public pay-

telephones in working order 

75 

billing accuracy 

see note 2 

see note 2 

Note 1. 

Indicators should allow for performance to be analysed at a regional level (ie no less than level 2 in 

the Nomenclature of Territorial Units for Statistics (NUTS) established by Eurostat.) 

Note 2 

Billing accuracy.  National definitions  and measurement methods should be used until such time 

as a common definition and measurement method are agreed at the European level. 

76 

'  s. 

ANNEX IV 

TIMESCALE REFERRED TO IN ARTICLE 33 

Date by which Member  States must take the necessary measures 

to comply with  Directive 95/62/EC 

13 December  1996 

77 

ANNEX  V 

COMPARATIVE  TABLE 

Article  No.  in 

, 

Title  of Article 

Article  Number  in  this 

Directive  95/62/EC 

Directive 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

Scope and aim 

Definitions 

Availability  of telecommunications  services 

Affordability 

1 

2 

3 

4 

Provision  of service,  connection  of terminal 

5,9 

equipment  and use of the network 

Publication  of and access to information 

Quality of service 

Conditions for  the termination  of offerings 

User Contracts 

Variation of published  conditions 

Provision  of additional facilities 

Special  network access 

Interconnection 

Tariff principles 

Cost accounting principles 

Discounts  and other special  tariff provisions 

Itemized  billing and other facilities 

Directory services 

Public pay-telephones 

Telephone pre-payment  cards 

Specific  measures for  disabled  users 

Specifications for  network access,  including 

the socket 

11 

12 

22 

10 

23 

15 

16 

17 

18 

19 

14 

6 

7 

.8 

20 

78 

Numbering 

Conditions  of access and use and essential 

13  — 

21 

22 

23 

24 

requirements 

Non-payment  of bills 

Technical  standards 

,25 

Provisions for  Community wide  convergence 

Consultation 

Notification  and reporting 

Conciliation  and national dispute resolution 

Deferment 

Technical adjustment 

Advisory  Committee procedure 

Regulatory  committee  procedure 

Review 

Implementation 

Repeal  of directive  95/62/EC 

Entry into force 

Addressees 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

21 

24 

25 

26 

27 

28 

29 

50 

31 

32 

33 

34 

Annex  1 

Headings for  information to be published 

Annex  II 

Annex  II 

Supply-time  and quality-of-service  indicators, 

AnnexIÏÏ 

Annex  III 

Description  of facilities 

Annex  I 

79 

EVALUATION OF THE IMPACT 

Impact of the proposal on the enterprises and, in particular, 

on the small and medium enterprises  (SMEs) 

Title  of  the  Proposal:  Proposal  for  a  European  Parliament  and  Council  Directive 

amending  Council  Directive  95/62/EC  on  the  application  of  open  network  provision 

(ONP)  to  voice  telephony,  for  the  purpose  of  adaptation  to  a  competitive  environment 

and to ensure universal service for  telecommunications 

Document  reference  number: 

The proposition 

1. 

The need of the legislative measure 

The  full  liberalization  of telecommunications  services  and  infrastructures  in  1998  lifts  the 

remaining  restrictions  for  organizations  to  enter  into  the  telecommunications  market, 

80 

allowing  more  competition  in  the  sector  with  the  consequential  benefit  for 

the 

telecommunications  enterprises, the users and the whole economy of Europe. 

~~ 

The  existing  ONP  voice  telephony  Directive  95/62/EC  was  adopted  in  1995  at  a  time 

when most Member  States retained  special and exclusive rights for the provision of public 

telecommunications  networks  and  voice  telephony  services.  Article  32(1)  of  Directive 

notes that the European  Parliament  and the Council will review  the  said  Directive  by  1st 

January  1998  'on  the  basis  of  a  proposal  which  the  Commission  will  submit  to  them  in 

good time'. 

The purpose of the revision is to adopt Directive 95/62/EC to a liberalised market.  At the 

same time,  the  Commission  has  indicated  in  its  Communication  on  universal  service  for 

telecommunications  in the perspective  of a fully  liberalised  environment1  that  it intends  to 

strengthen certain provisions of the Directive in response to user demand. 

The revised  Directive will form  part  of the  post-1998  legislative  framework  designed  to 

ensure that  all organizations  competing  in the European  telecommunications  market  have 

a  stable  and  predictable  regulatory  environment  complementing  the  competition  rules  of 

the Treaty. 

- 

^ 

The  open  and  competitive  markets  in  telecommunications  will  improve  the  social  and 

economic  well-being  of  European  users  and  the  competitiveness  of  the  European 

enterprises. 

The  impact  on  enterprises 

COM(96)73,  13.03.1996 

61 

2.  Who will be affected  hv the proposal 

The  existing  Directive  affects  telecommunications  organisations,  and  the  revised  version 

will  affect  the  same  types  of  organisation  ie  the  suppliers  of  fixed  public  telephone 

networks and publicly available telephone services. 

A  number  of  requirements  placed  on  telecommunications  organisations  in  the  existing 

Directive  are  no  longer  appropriate  in  a  competitive  environment  and  these  have  been 

removed.  Others will be phased out as competition develops. 

New  entrants  who  seek  to  provide  public  telephone  networks  and  publicly  available 

telephone  services  will  be  subject  to  some  form  of  authorisation  within  each  Member 

States.  The  Commission has proposed  a separate Directive  on a common  framework  for 

general  authorisations  and individual licences in the field of telecommunications  services2, 

which  provides  straightforward,  harmonised  procedures  for  granting  authorisations  or 

licences.  The  revised  ONP  Voice  Telephony  Directive  will  lead  to  a  common  set  of 

requirements  in  national  authorisations  for  the  provision  of  telephone  services  thus 

avoiding  the  burden  of  having  different  authorisation  requirements  in  different  Member 

States. 

The provisions  affecting  new entrants (some of which may start  out  as small and  medium 

enterprises)  concern  the  offering  of  certain  facilities  to  users,  user  contracts,  the 

publication  of  information  about  technical  interfaces,  and  the  keeping  of  statistics  on 

quality of service.  These requirements are justified  by the need to protect  consumers,  and 

2  COM(95) 545, 14 November 1995 

82 

to  ensure  a  competitive  market  for  telecommunications  terminal  equipment.  These 

requirements are not such as to create additional market entry barriers. 

— 

Users  stand  to  benefit  in terms  of  more  choice,  better  services  and.facilities,  and  lower 

prices.  Lower  communications  costs  have  a  positive  impact  all  the  way  up  the  value 

chain,  for  commercial  enterprises  of  all  sizes  and  all  types.  Experience  in  liberalised 

markets  reveals  how  new  and  cheaper  telecommunications  services  stimulate  enterprises 

to develop new products and services in many other sectors. 

At  the  same time,  new  markets  are  opening within  the telecommunications  sector  itself. 

Liberalisation  will  bring  significant  . new  investment  to  the  telecommunications  industry 

over the coming years.  New network  operators will be seeking technologically  advanced 

products  which 

reduce  costs  and  offer  competitive  advantage, 

including  both 

telecommunications  specific  products  and  also  more  general  administrative  and 

productivity  tools.  Opportunities  exist  here for  innovative  small  and  medium  enterprises 

to sell into the telecommunications  sector. 

Different  rules  for  market  entry  in  different  Member  States  would  slow  down  this 

investment.  This  Directive  will  have  a  positive  impact  by  providing  a  harmonised 

regulatory  framework  for  telephone  networks  and  services  throughout  the  European 

Union. 

Conformance  with the proposal 

The  national  regulatory  authorities  in the Member  States  will be  responsible  for  ensuring 

that the organizations concerned  comply with the provisions of the Directive.  In addition, 

83 

the  national  regulatory  authorities  must  notify  to  the  Commission  the  names  of  certain 

organizations in their territory to whom the Directive will apply. 

~ 

4. 

Economic  effects 

New  investment  in  the  telecommunications  sector  will  be  stimulated  by  a  stable  and 

predictable  regulatory  environment.  The  harmonized  framework 

to  be  established 

throughout  the Union by this Directive will foster  investment  and create job  opportunities 

in  new  enterprises  in  the  sector  -  particularly  SMEs  -  and  stimulate  growth.  The 

proposed  framework  is designed  to  promote  productivity  and  to  encourage  efficient  and 

sustainable  market  entry,  and  at  the  same  time  to  guarantee  the  provision  of  universal 

service for telecommunications throughout the European Union. 

In  the  absence  of  such  a  Directive,  the  fragmented  national  markets  that  would  result 

would  be  less  attractive  to  new  market  entrants  than  a  single European  market,  and  the 

goal  of  strengthening  economic  and  social  cohesion  set  out  in  the  Treaty  would  be 

undermined. 

™~ 

Specific provisions for  SMEs 

There  are  no  specific  measures  in the  proposal  addressing  SMEs.  However,  SMEs  will 

find  new  business  opportunities  in  the  services  and  facilities  called  for  in  this  revised 

Directive. 

84 

6. 

Consultation 

The Commission's  Green Paper  on the liberalisation  of telecommunications  infrastructure 

(part  II)3  outlined  the  general  direction  in which  the  existing  ONP  Directives  would  be 

adapted  to  take  account  of  full  liberalisation  in  1998.  More  specific  proposals  for 

adaptation  of  the  ONP  voice  telephony  Directive  95/62/EC  were  proposed  in  the 

Commission'  Communication  on  Universal  service  for  Telecommunications,  based  on  a 

survey of Member  States and  extensive public consultation,  including  a public hearing  on 

universal service held in Brussels in October  1995 and attended by a number of MEPs. 

Following  this  public  hearing  some  60  organisations  submitted  written  comments  to  the 

Commission - see Appendix  1. 

One  of  the  greatest  concerns  of  potential  new  entrants  (such  as Bell  South,  Compagnie 

Générale  des  Eaux,  MF S  Communications)  is  that  universal  service  obligations  could 

become  excessive  and  thus  result  in  a  significant  market  entry  barrier.  Such  enterprises 

stress  the  need  for  EU  legislation  to  specify  exactly  what  can  be  included  in  universal 

service costs. 

Existing  network  operators  (eg  BT,  Deutsche  Telekom,  PTT  Telecom)  emphasise  that 

they  should  not  carry  unfair  obligations  with  respect  to  new  market  entrants,  and  are 

looking  to  EU  legislation  to  minimise  differences  in  the  rules  and  regulations  between 

different  Member  States. 

3  COM(94) 682,  25.01.1995 

2^-  m 

The  proposed  adaptation  to  Directive  95/62/EC  fulfils  these  requirements,  while  at  the 

same time ensuring that all users have access to an affordable basic telephone service. 

The  principles  of  the  Directive  have  been  discussed  in  detail  in  the  ONP  Committee, 

which  brings  together  the  representatives  of  national  regulatory  authorities  for 

telecommunications  in  the  Union  and  the  EEA,  under  the  Chairmanship  of  the 

Commission,  and  which  is  also  attended  by  people from user  groups,  manufacturers, 

service providers and operators. 

87 

APPENDIX 1  :  LIST  OF ORGANISATIONS  PROVIDING  WRITTEN  RESPONSES  ON  UNIVERSAL 

SERVICE 

COST 219 The Mike Martin  Consultancy 

CRID 

CURDS - University of Newcastle 

Dansk Industri (DI) 

Department of Trade and Industry (UK) 

Deutsche  Postgewerkschaft 

ANGA 

Antelope Consulting 

APEC - Association of Private European 

Deutsche Telekom 

Cable Operators 

ARD - Radio + TV 

ASIMILEC 

A T &T 

ATC Finland 

Direction Générale des Postes et 

Télécommunications  (FR) 

ETNO 

EU Committee of the American chamber of 

Commerce in Belgium 

Austrian Ministry of economy and transport 

European Conference of Data  Protection 

Belgacom 

BellSouth 

British Telecom 

Commissioners 

.  * 

Forschungsinstitut  fur  anwendungsorientierte 

Wissensverarbeitung 

Bureau  Européen des Unions des 

France Telecom 

Consumateurs 

Fundesco 

Conseil National du Patronat Français 

GEF - Global Electronic Finance 

Compagnie General des Eaux 

Management 

COST 219 - National Research & 

Development Centre for Welfare  & Health 

88 

PTT Force Ouvrière 

PTT Telecom 

_ 

STET 

TAG - Telecommunications  Action Group 

TELECEL  S.A. 

Telecom Eireann 

Telefonica  de Espana 

Telenor 

TELIA AB 

INESC 

The Finnish Consumers  Association 

Ingeneria y Gestion de Redes 

Thyssen Telecom A.G 

INTEL 

The Telecommunications  Managers 

International  Council of Aircraft  Owner and 

Association 

Pilot Associations 

IPTT 

Kooperativa  Institutet 

Erika Mann M.E.P. 

United States Council for  International 

Business 

Universidad de Valencia 

Universitat Potsdam 

Mercury Communications  Ltd 

VEBACOM 

MFS  Communications 

Ministerie Van Verkeer en Waterstaat  (NL) 

Ministry of Transport  &  Communications 

(FIN) 

Ministry of Transport  & Communications 

(SWED) 

OFTEL 

Oinnitel Pronto Italia 

Portugal  Telecom 

89 

ISSN 0254-1475 

COM(96) 419 final 

DOCUMENTS 

EN 

15  08 

Catalogue  number  ;  CB-CO-96-458-EN-C 

ISBN  92-78-08837-4 

Office  for  Official  Publications of the European  Communities 

L-2985 Luxembourg