OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP)
Date: 1996-11-11
Institutions: European Commission
Subjects: competition, liberalisation of the market, systems interconnection, telecommunications, transmission network

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COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

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Brussels,  11.11.1996 
COM(96)  535  final 

95/0207  (COD) 

OPINION  OF  THE  COMMISSION 
pursuant  to  Article  189 b  (2)  (d)  of  the  EC  Treaty, 
on  the  European  Parliament's  amendments 
to  the  Council's  common  position  regarding  the 

proposal  for  a 
EUROPEAN  PARLIAMENT  AND  COUNCIL  DIRECTIVE 

on interconnection  in telecommunications with regard to ensuring universal  service 

and interoperability through  application of the principles of Open  Network 

Provision  (ONP) 

AMENDING  THE  PROPOSAL  OF  THE  COMMISSION 
pursuant  to  Article  189 a  (2)  of  the  EC  Treaty 

EXPLAN A TORY  MEMORANDUM 

Article  189b(2)(d)  requests  the  Commission  to  express  its  opinion  on  the 
qmendments proposed  by the European Parliament  in its second  reading. 

The Commission  hereby presents  its opinion  on these amendments  to the  Council's 
common position  regarding  the proposal for  a European  Parliament  and  Council 
Directive  on  Interconnection  in  Telecommunications  with  regard  to  ensuring 
universal  service  and  interoperability  through  application  of  the  principles  of 
Open Network Provision  (ONP).  This includes a modified proposal  incorporating 
the  amendments  proposed  by  the European  Parliament  at  Second  Reading  which 
were accepted  by the Commission. 

OPINION  OF  THE  COMMISSION 

l. 

BACKGROUND 

a)  The Commission  adopted  its proposal  on  19.07.95, and  it was  formally  transmitted 

to the EP and the Council on  12.09.951. 

b)  The Economic and  Social Committee gave a favourable  Opinion on  28.02.962. 

c)  The  European  Parliament  adopted  a favourable  Resolution  at  its  First  Reading  on 

14.02.96, and proposed  69 amendments to the Commission  proposal3. 

d)  The Council adopted  its Common Position  on  18.06.96. 

e)  The  Commission  accepted  this  Common  Position  and  informed  the  European 

Parliament  of its position  on  14.06.96. 

f)  The  European  Parliament  voted  on  Second  Reading  on  19.09.96,  adopting  a 
favourable  resolution which included 31 amendments to the Common Position4. 

2. 

PURPOSE OF THE DIRECTIVE 

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

1 
2 
3 
4 

OJ C 313,  24.11.1995,  p.7 
TRA/301  ,28.02.1996 
A4-0017/96, PV  14.02.1996 
A4-276/96,  PV  19.09.1996 

- 2-

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

The Directive lays down harmonized  principles for interconnection to be implemented  at 
a national level, under supervision of the national regulatory authorities, in accordance 
with the principle of subsidiarity. 

3. 

POSITION OF THE  COMMISSION ON THE EP  AMENDMENTS 

3.1 

EP  AMENDMENTS  ACCEPTED  BY THE  COMMISSION 

Of the 31 amendments adopted by the European Parliament at  Second Reading,  the 
Commission accepts  12 in full  and 9 in part or in principle (ie with some  reformulation 
of the text), making a total of 21. 

The Commission is consistent with its position  during the First Reading,  and is 
supportive of amendments which can improve the Common Position.  On this basis, the 
Commission position  on each amendment is the  following: 

Amendments  accepted  in full  : 

4, 5, 7,  13, 14, 21, 22, 23, 24, 27, 29, 30 

Amendments  accepted  in part  or in principle  :  1, 3, 8, 9,  10,  16,  17, 25, 31 

The Commission's  position on each of these amendments is explained  in the attached 
table.  The most important  amendments accepted by the Commission concern the eight 
following  areas: 

Study  of creation  of a European  regulatory  authority 
[Amendments  8 and  31(part)] 

The Commission  accepts the request in Amendments 8 and 31 (last part) for  examination, 
in the report that the Commission is required to present before the end  of  1999, of the 
possibility of establishing a European regulatory authority for telecommunications,  but 
considers that  at this stage it would  be premature to specify  the tasks to be carried  out by 
such a European  regulator.  The Council did not accept the EP amendment  on this issue 
at First Reading. 
In supporting the EP amendment,  the Commission  notes that the issue could be dealt 
with in the report proposed  for  1999, even if this is not explicitly stated  in the Directive, 

-3 

Procedure for resolution  of cross-border interconnection  disputes 
[Amendments  5 and 27] 

The Commission  supports EP Amendments  5 and 27 which re-introduce a binding 
dispute resolution procedure at the EU-level, as called for in the original  Commission 
proposal. 

Deferment  of some obligations  of this Directive for some Member  States 
[Amendments  7 and 29] 

As expressed  in its Communication  on the Council Common Position, the  Commission 
considers that the Common Position text meets the main concerns expressed  by 
Parliament  in First Reading, as it links any deferments  from  some of the obligations of 
this Directive to the transition periods for full  liberalisation  of telecommunications 
services, indicating clearly that  such deferments  should be valid  "for  as long as and to the 
extent that" such transition periods exist. 
However,  the Commission gives preference  to the texts proposed  by Parliament in 
Amendments 7 and 29, which require Member  States benefiting  from  transition  periods 
for full  liberalisation granted under Commission  Art. 90 Directive on full  competition in 
telecommunications  markets (96/19/EC) to request  a corresponding  deferment  of some 
obligations of this Directive, to the extent justified  by any special or exclusive rights  for 
telecommunications. 

Definition  of  interconnection 
[Amendment  10] 

One of the main-aims of this Directive is to facilitate  the establishment  of  effective 
competition  at all levels of the telecommunications  market.  This means competition in 
services and competition  in network infrastructures.  For this reason,  the Commission 
can support the principle in Amendment  10 where it is made clear that  service  providers 
are included in the scope of the definition  of interconnection.  However,  the wording  of 
this definition  in the Commission's original proposal is technically  more correct  than that 
proposed  in the EP Amendment  (ie the linking of the facilities  of organisations 
providing telecommunications  services, not the linking of telecommunications  services, 
as in the proposed  amendment). 
The Commission  does not  support the other part  of the amendment  which introduces a 
reference  to  'interconnection  points', since this term  is neither defined  nor used  in the 
Directive. 

Reconsideration  of need for Directive when  effective  competition  is  achieved 
[Amendment  9] 

The Commission  agrees with the principle in Amendment  9 that the competition  rules of 
the Treaty will have a predominant  role when effective  competition  is achieved  in the 
telecommunications  market,  and that at that time the need for this Directive should be 

reconsidered.  However,  the Commission considers that such principle should be stated 
in a recital, rather than in an article as proposed by Parliament,  as it is not a legal 
requirement.  In addition, it would be premature to specify  at this stage which  provisions 
will still be (or will no longer be) appropriate in an effective  competitive  environment. 

Number  portability 
[Amendments  25 and 31 (part)] 

The Commission supports the requirement in Amendment  25 call for rerouting  or 
indication of the new number to be implemented if number portability is not yet available, 
due to the importance for telephone users of such facilities.  The Commission  also agrees 
with the Parliament  on the specification  that such facilities  should either cost a 
reasonable fee approved by the national regulatory authority (for  number portability and 
call rerouting),  or be free  of charge (for  indication of new number).  The  Commission, 
however,  cannot  agree to the extension of the requirement for number portability to all 
national numbers, rather than the numbers on the fixed public telephone network,  as this 
would excessively broaden the requirement for number portability and delay its 
implementation. 

The Commission can support EP Amendment  31 (first  part), which explicitly mentions 
the possibility of anticipating the timetable for introduction  of number  portability. 

Position  in international  numbering  organisations  and  fora 
[Amendments  4 and  23] 

The Commission  supports Amendments 4 and 23, which strengthen  the requirements  for 
coordination  of the positions of Member  States and the Community in international 
organisations and fora where numbering decisions are taken. 

Commission  guidelines 
[Amendments  3(part)  and  17] 

Guidelines are considered  the most appropriate tool for addressing complex  financial 
issues, in that they are flexible  and more easily updated than EU legislation.  The 
committee procedure proposed  will ensure that the guidelines have the backing of 
Member  States.  The Commission  can thus support Amendments 3(first  part) and 
17(first  part), re-introducing the call for guidelines on cost accounting  systems and 
accounting  separation  (rather than transparency) in relation to interconnection  to be 
drawn by the Commission.  However,  such guidelines cannot have a mandatory 
character. 

3.2. 

EP  AMENDMENTS NOT ACCEPTED BY THE  COMMISSION 

The Commission  has not accepted  10 of the 31 amendments proposed by the European 
Parliament. 

The amendments not accepted by the Commission are the following: 

Amendments  not accepted  : 

2, 6,  11, 12, 15, 18, 19, 20, 26, 28 

The reasons are given below, where the amendments are grouped  into four  broad 
categories. 

Universal  service 
[Amendments  l(part),  11,12,15  and  18] 

The Commission  can not accept the EP Amendments calling for Member  States to be 
required to set up a universal service fund  mechanism for financing the net cost of 
universal  service obligations (Amendments  1 (last part),  11,  12 and  18).  It is for  Member 
States to decide whether a system for financing universal service is necessary.  Some 
Member  States may decide not to establish any mechanism for  sharing the net cost of 
universal service obligations, where this cost is very low.  Depending on the way a 
Member  State imposes universal service obligations, it may be appropriate to set up a 
universal  service fund,  or to collect contributions to universal service costs through an 
extra charge on interconnected  parties.  In both cases, the requirements for  transparency 
and objectivity  are the same, and the contributions by market players will be the same. 
The Commission has expressed  a preference  for universal service funds  in its 
Communication  on the consultation on the Infrastructure  Green Paper.  However,  given 
the relatively low cost of universal telephone service in some Member  States, the 
overhead  of an independently administered universal  service fund  may not be justified  in 
all cases. 

The Commission can neither accept Amendment  15, which calls on the Commission  to 
draw up, before  31 October  1996, a proposal for a European Parliament  and Council 
Directive on the costing and financing of universal service.  As announced  in its 
Communication  on universal service issued in March of this year5, the Commission is 
planning to issue guidelines on costing and financing universal service, which will 
provide further  guidance on costing and financing universal service.  The need for a 
specific Directive on costing and financing  of universal  service is not foreseen  by the 
Commission  at this stage. 

Accounting  separation 
[Amendments  2, 19 and 20] 

The purpose of accounting separation is to ensure full  transparency of internal cost-
transfers,  and to avoid discrimination.  Accounting separation is not as effective  in 

COM (96) 73,  13.03.1996 

preventing discrimination  as structural  separation, but it is less disruptive.  Proposed  EP 
Amendments 2,  19 and 20 would weaken the requirements for accounting  separation by 
calling for  'transparent  accounts'.  The weaker approach  suggested  by the Parliament 
would place much greater demands on the NRAs, in terms of both resources and 
expertise, in checking that there were no anti-competitive cross transfers  taking place. 

Comitology 
[Amendments  6, 26 and  28] 

As expressed in its position on the Council Common Position, the Commission  regrets 
that Council insisted  on introduction  of a type Ilia regulatory committee procedure in 
this Directive.  However, the Commission  also accepts that this gives consistency with 
other Directives in the field of ONP, where the same regulatory procedure is being used. 
Therefore,  the Commission, while restating its preference  for  an advisory committee, was 
able to accept the change in procedure, in order to allow Council to reach a  qualified 
majority  for  adoption of the Common Position.  An inter-institutional  agreement  was 
reached in  1994 between the EP, Council and Commission  on Comitology,  and a modus 
vivendi was drawn up to cover the situation where regulatory  committees are used.  For 
these reasons, the Commission does not accept EP Amendments 6, 26 and 28. 

Other  amendments 
[Amendment  16(part)] 

The Commission  can not accept the first part of Amendment  16 which links charges  for 
interconnection  with contributions to the net fixed costs of the local network.  Such 
costs - a form  of access deficit  - should be phased  out as soon as possible, in accordance 
with EU law, and, where they exist, must be separately identified  and not included  in the 
interconnection  charges. 

4. 

CONCLUSION 

The Commission has accepted  21 of the 31 amendments proposed  by the European 
Parliament  at  Second Reading either in whole, in part or in principle. 

In accordance with Article  189a paragraph  2 of the EC Treaty, the  Commission's 
modified  proposal  incorporates these amendments. 

AMENDED PROPOSAL FOR A 

EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 

ON INTERCONNECTION IN TELECOMMUNICATIONS WITH REGARD TO ENSURING 

UNIVERSAL SERVICE AND INTEROPERABILITY THROUGH APPLICATION OF 

THE PRINCIPLES OF OPEN NETWORK PROVISION (ONP) 

- 8-

Common Position  text 

Amended  text 

Recital 8 
(based  on EP Amendment  1) 

of 
Council  Resolution 
Whereas 
the 
7 February  1994 
for 
conditions 
sets  out 
financing  a  universal  voice  telephony  service; 
the  provision  of 
for 
whereas  obligations 
universal  service  contribute  to  the  Community 
objective  of  economic  and  social  cohesion  and 
territorial  equity;  whereas  there  may  be  more 
than  one  organization  in  a Member  State  with 
universal  service  obligations;  whereas 
the 
calculation  of the  net  cost  of  universal  service 
should take due account  of costs  and  revenues, 
as  well  as  economic  externalities  and  the 
intangible  benefits  resulting  from  providing 
universal  service  but  should  not  hinder  the 
on-going  process  of tariff  rebalancing;  whereas 
costs  of universal  service  obligations  should  be 
calculated  on 
transparent 
procedures;  whereas  financial  contributions 
related  to  the  sharing  of  universal  service 
obligations  should  be  unbundled  from  charges 
for  interconnection;  whereas,  when  a  universal 
service  obligation  represents  an  unfair  burden 
on  an  organization,  it  is  appropriate  to  allow 
Member  States  to  establish  mechanisms  for 
sharing  the  net  cost  of  universal  provision  of a 
fixed  public  telephone  network  and  a  fixed 
other 
public 
public 
organizations 

service  with 
operating 

the  basis  of 

telephone 

telecommunications  networks  and/or  publicly 
available voice telephony  services; whereas this 
should  respect  the  principles  of  Community 
law,  in  particular  those  of  non-discrimination 
and  proportionality  and  should  be  without 
prejudice to Article  100a(2) of the Treaty; 

Whereas  obligations  for 
the  provision  of 
universal  service  contribute  to  the  Community 
objective  of  economic  and  social  cohesion  and 
territorial  equity;  whereas  there  may  be  more 
than  one  organization  in  a Member  State  with 
universal  service  obligations;  whereas  the  aim 
should  be  to  introduce  new  technologies  like 
the  integrated  services  digital  network  (ISDN) 
as  soon  as  possible  and  on  as  broad  a basis  as 
possible  in the  Member  States:  whereas  at  its 
current  stage  of  development  in  the  Member 
States. ISDN is not  accessible for  all users  and 
as  such  cannot  yet  be  subject  to  universal 
service  obligations;  whereas  the  calculation  of 
the  net  cost  of  universal  service  should  take 
due  account  of  costs  and  revenues,  as  well  as 
economic  externalities  and 
intangible 
benefits  resulting  from  providing  universal 
service  but  should  not  hinder  the  on-going 
process  of  tariff  rebalancing;  whereas  costs  of 
universal 
be 
should 
transparent 
calculated  on 
procedures;  whereas  financial  contributions 
related  to  the  sharing  of  universal  service 
obligations  should  be  unbundled  from  charges 
for  interconnection;  whereas,  when  a  universal 
service  obligation  represents  an  unfair  burden 
on  an  organization,  it  is  appropriate  to  allow 
Member  States  to  establish  mechanisms  for 
sharing the  net  cost  of universal  provision  of a 
fixed  public  telephone  network  and  a  fixed 
other 
public 
public 
organizations 

service  with 
operating 

obligations 
the  basis  of 

telephone 

service 

the 

telecommunications  networks  and/or  publicly 
available voice telephony  services; whereas this 
should  respect  the  principles  of  Community 
law,  in  particular  those  of  non-discrimination 
and  proportionality  and  should  be  without 
prejudice to Article  100a(2) of the Treaty; 

Common Position  text 

Amended  text 

Recital  12 
(based on EP Amendment 3) 

of 

of 

services; 

networks 

Whereas national regulatory authorities have an 
important  role in encouraging  the  development 
of  a  competitive  market  in  the  interests  of 
Community  users,  and  of  securing  adequate 
interconnection 
and 
whereas 
interoperability 
negotiation  of  interconnection  agreements  can 
be  facilitated  by  national  regulatory  authorities 
setting  down  certain  conditions  in  advance  on 
the basis  of  common  guidelines  defined  by  the 
Commission  so as to  facilitate  the  development 
of  a  seamless  harmonised  European  home 
identifying  other  areas  to  be 
market,  and 
covered 
agreements; 
in 
whereas 
the  event  of  a  dispute  over 
interconnection  between  parties  in  the  same 
Member  State, an aggrieved  party must  be able 
to  call  on  the  national  regulatory  authority  to 
resolve 
national 
regulatory  authorities  must  be  able  to  require 
organizations  to  interconnect  their  facilities, 
where  it can be demonstrated  that  this  is in the 
users' interests; whereas  each  operator  must  be 
responsible  for  carrying  calls  and  setting  the 
tariffs  for 
the  most 
appropriate interconnection  point; 

its  subscribers  up 

dispute;  whereas 

interconnection 

the 

to 

in 

of 

of 

services; 

networks 

Whereas national regulatory authorities have an 
important  role in encouraging  the  development 
of  a  competitive  market  in  the  interests  of 
Community  users,  and  of  securing  adequate 
interconnection 
and 
whereas 
interoperability 
negotiation  of  interconnection  agreements  can 
be  facilitated  by  national  regulatory  authorities 
setting down certain  conditions in advance, and 
identifying  other  areas 
in 
interconnection  agreements;  whereas  in  the 
event  of  a  dispute  over 
interconnection 
between  parties  in  the  same Member  State,  an 
aggrieved  party  must  be  able  to  call  on  the 
national  regulatory  authority  to  resolve  the 
dispute; whereas national  regulatory  authorities 
must  be  able  to  require  organizations 
to 
interconnect  their  facilities,  where  it  can  be 
demonstrated that this is in the users' interests; 

to  be  covered 

- 10 

Common Position  text 

Amended  text 

Recital  15 
(based on EP Amendment  4) 

this 

services 

responsibility, 

Whereas  numbering  is  a key  element  for  equal 
access;  whereas  national  regulatory  authorities 
should  have the responsibility  for  administering 
and  controlling  national  numbering  plans,  and 
those  naming  and  addressing  aspects  of 
telecommunications 
where 
coordination  at  a  national  level  is  required,  so 
as  to  ensure  effective  competition;  whereas  in 
national 
exercising 
regulatory  authorities  must  have  regard  to  the 
principle  of  proportionality,  particularly  as  to 
the  effect  of  any  measures  on  network 
operators,  resellers  and  consumers;  whereas 
number  portability  is  an  important  facility  for 
users,  and  should  be  implemented  as  soon  as 
schemes 
practicable;  whereas 
should  be  developed  in  full  consultation  with 
all  the  parties  involved  and  in  harmony  with  a 
long-term  Europe-wide  numbering  framework 
and  international  numbering  schemes  as  being 
considered  in  the  European  Conference  of 
Postal 
Telecommunications 
Administrations (CEPT);  whereas  numbering 
requirements 
the 
provision  of  pan-European  and  new  services 
the  globalization  and  synergy  of  the 
and 
the 
telecommunications  market  make 
coordination 
in 
international  organizations  and  fora  desirable 
where numbering decisions are taken; 

the  need  for 

in  Europe, 

numbering 

positions 

national 

and 

of 

this 

services 

responsibility, 

Whereas  numbering  is a key  element  for  equal 
access;  whereas  national  regulatory  authorities 
should  have the responsibility  for  administering 
and  controlling  national  numbering  pians,  and 
those  naming  and  addressing  aspects  of 
telecommunications 
where 
coordination  at  a  national  level  is  required,  so 
as  to  ensure  effective  competition;  whereas  in 
national 
exercising 
regulatory  authorities  must  have  regard  to  the 
principle  of  proportionality,  particularly  as  to 
the  effect  of  any  measures  on  network 
operators,  resellers  and  consumers;  whereas 
number  portability  is  an  important  facility  for 
users,  and  should  be  implemented  as  soon  as 
schemes 
practicable;  whereas 
should  be  developed  in  full  consultation  with 
all  the  parties  involved  and  in  harmony  with  a 
long-term  Europe-wide  numbering  framework 
and  international  numbering  schemes  as  being 
considered  in  the  European  Conference  of 
Postal 
Telecommunications 
Administrations  (CEPT);  whereas  numbering 
requirements  in  Europe, 
the 
provision  of  pan-European  and  new  services 
the  globalization  and  synergy  of  the 
and 
telecommunications  market 
a 
coordinated  position by the Member  States and 
the» Community  in  international  organizations 
and fora where numbering decisions are taken; 

the  need  for 

numbering 

require 

and 

Recital  18 
(based  on EP Amendment  5) 

Whereas  in  addition  to  the  rights  of  recourse 
granted  under  national  or  Community  law, 
there  is  a  need  for  conciliation  procedures  for 
cross-border  disputes  which  lie  outside  the 
competence  of  a  single  national  regulatory 
authority;  whereas  these  procedures,  to  be 
initiated  by  any  of  the  national  regulatory 
authorities  concerned,  should  be  responsive, 
inexpensive  and 
should 
transparent, 
involve all the parties  concerned; 

and 

-11  -

Whereas  in  addition  to  the  rights  of  recourse 
granted  under  national  or  Community  law, 
there is a need  for  simple procedures to  resolve 
cross-border  disputes  which  lie  outside  the 
competence  of  a  single  national  regulatory 
authority;  whereas  these  procedures,  to  be 
initiated  by  any  of  the  parties  concerned, 
should 
and 
transparent,  and  should  involve  all  the  parties 
concerned; 

inexpensive 

responsive, 

be 

Common Position text 

Amended text 

Recital 22 
(based on EP Amendment  7) 

of 

the 

implementation 

Whereas 
certain 
obligations  must  be  linked  to  the  date  of 
liberalization  of  telecommunications  services 
and infrastructure  and, in particular in regard  to 
the  relevant  Member  States,  take  full  account 
of the  transition  periods  granted  by the  Article 
2(2)  of  Commission  Directive  90/3 88/EEC  as 
amended  by  Commission  Directive  96/19/EC2. 
including  the  retention  of  special  or  exclusive 
rights  in  relation  to  direct 
interconnection 
between the mobile networks  of those  Member 
States  and  the  fixed  or  mobile  networks  of 
other Member  States; whereas deferment  of the 
obligation  to  provide  number  portability  may 
be  granted  where  the  Commission  agrees  that 
impose  an  excessive 
the  obligation  would 
burden on certain  organizations; 

in 

of 

of 

the 

the 

the 

situation 

implementation 

Whereas 
certain 
obligations  must  be  linked  to  the  date  of 
liberalization  of  telecommunications  services 
and infrastructure  and, in particular in regard to 
the  relevant  Member  States,  take  full  account 
the 
of 
in 
transition  periods  granted 
the 
Council Resolution  of  22 July  1993  on 
review 
the 
telecommunications  sector  and  the  need  for 
further  development  in  that  market  and  the 
Council  Resolution  of  22 December  1994  on 
and 
the 
the 
telecommunications 
of 
liberalization 
infrastructures2. 
the  retention  of 
including 
special  or  exclusive  rights  in  relation  to  direct 
interconnection  between  the  mobile  networks 
of those Member  States and the fixed or mobile 
networks  of  other  Member  States;  whereas 
deferment  of the  obligation  to  provide  number 
portability  may  be  granted  where 
the 
Commission  agrees  that  the  obligation  would 
impose  an  excessive  burden  on  certain 
organizations; 

principles 

timetable 

for 

OJ No C 379. 31.12.1994. p. 4. 

OJL74, 22.3.1996, p. 13. 

- 1 2-

Common Position  text 

Amended  text 

Recital 24 
(based  on EP Amendment  9) 

Whereas 
the  functioning  of  this  Directive 
should  be  reviewed  by  31 December  1999,  in 
particular  to  examine  the  scope  of  universal 
service 
number 
portability; whereas the situation with regard  to 
interconnection with third countries should  also 
be  periodically  reviewed,  to  allow  appropriate 
action to be taken; 

timetable 

and 

the 

for 

for 

the 

and 

timetable 

Whereas 
the  functioning  of  this  Directive 
should  be  reviewed  by  31 December  1999,  in 
particular  to  examine  the  scope  of  universal 
service 
number 
portability; whereas the situation with regard  to 
interconnection with third countries should  also 
be  periodically  reviewed,  to  allow  appropriate 
action  to  be  taken;  whereas  when  effective 
competition  is  achieved  in  the  market,  the 
competition  rules of the Treaty  will in principle 
be  sufficient  to  monitor  fair  competition  ex-
post  so that  the  need  for  this Directive  may  be 
reconsidered; 

Recital  25 
(based  on  EP Amendment  8) 

Whereas  the  essential  goal  of  interconnection 
of  networks  and  interoperability  of  services 
be 
the  Community 
throughout 
sufficiently  achieved  at  Member  State  level, 
and  can 
therefore  be  better  achieved  at 
Community level by this Directive; 

cannot 

cannot 

Whereas  the  essential  goal  of  interconnection 
of  networks  and  interoperability  of  services 
be 
the  Community 
throughout 
sufficiently  achieved  at  Member  State  level, 
and  can 
therefore  be  better  achieved  at 
Community  level  by  this  Directive;  whereas  it 
is desirable, when this Directive  is reviewed,  to 
the  possibility  of  establishing  a 
envisage 
European 
be 
responsible  for  those  tasks  carried  out  by  the 
Commission 
regulatory 
authority  under  this Directive,  which  would  be 
more efficiently  carried  out by such a European 
regulatory  authority; 

regulatory 

authority 

national 

the 

or 

to 

Article  2(l)(a) 
(based  on EP Amendment  10) 

logical 

linking  of 

"interconnection"  means  the  physical 
(a) 
and 
telecommunications 
networks  used  by  the  same  or  a  different 
organization  in order  to  allow the users  of  one 
organization  to  communicate  with  users  of  the 
same  or  another  organization,  or  to  access 
services provided by another  organization; 

13 

the 

logical 

linking  of 

(a) 
"interconnection"  means  the  physical 
and 
facilities  of 
telecommunications 
organisations  providing 
networks  and/or  telecommunications  services 
used  by the  same or  a different  organization  in 
order to  allow the users  of one organization  to 
communicate with users  of the  same or  another 
organization,  or to  access  services  provided  by 
another  organization; 

Common Position  text 

Amended  text 

Article 5(5), first  subparagraph 
(based  on EP Amendment  13) 

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

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

inspection 

in 

Article 5(6) 
(based on EP Amendment 14) 

regulatory  authority.  Where 

6.  Until  such time  as the  procedure  described 
in  paragraphs 3, 4  and  5  is  implemented,  any 
charges  payable  by  an  interconnected  party 
which  include  or  serve  as a contribution  to  the 
cost  of  universal  service  obligations  shall  be 
notified,  prior  to  their  introduction,  to  the 
national 
the 
national  regulatory  authority  finds  on  its  own 
initiative,  or  after  a  substantiated  request  by an 
interested  party, 
such  charges  are 
excessive,  the  organization  concerned  shall  be 
required  to  reduce  the  relevant  charges.  Such 
reductions  shall  be  applied 
retrospectively, 
from  the  date  of  introduction  of  the  charges, 
but not before  1  January  1998. 

that 

regulatory 

6.  Until  such  time  as the  procedure  described 
in  paragraphs 3, 4  and  5  is  implemented,  any 
charges  payable  by  an  interconnected  party 
which  include  or  serve  as a contribution  to  the 
cost  of  universal  service  obligations  shall  be 
notified,  prior  to  their  introduction,  to  the 
national 
authority.  Without 
prejudice  of Article  17 of this Directive,  where 
the  national  regulatory  authority  finds  on  its 
own  initiative,  or  after  a  substantiated  request 
by  an  interested  party,  that  such  charges  are 
excessive,  the  organization  concerned  shall  be 
required  to  reduce  the  relevant  charges.  Such 
reductions  shall  be  applied 
retrospectively, 
from  the  date  of  introduction  of  the  charges, 
but not before  1  January  1998. 

Article 7(2) 
(based  on EP Amendment  16) 

2.  Charges  for  interconnection  shall  follow 
transparency  and  cost 
the  principles  of 
orientation.  The  burden  of  proof  that  charges 
are  derived  from  actual  costs  including  a 
reasonable  rate  of  return  shall  lie  with  the 
organization  providing  interconnection  to  its 
facilities.  National  regulatory  authorities  may 
request 
full 
justification  for  its interconnection  charges, and, 
where  appropriate  shall  require  charges  to  be 
adjusted.  This  paragraph  shall  also  apply  to 
organizations  set  out  in  Part  3  of  Annex  I 
which have significant  market  power. 

an  organization 

to  provide 

2.  Charges  for  interconnection  shall  follow 
transparency  and  cost 
the  principles  of 
orientation.  The  burden  of  proof  that  charges 
are  derived  from  actual  costs 
including  a 
reasonable  rate  of  return  shall  lie  with  the 
organization  providing  interconnection  to  its 
facilities.  National  regulatory  authorities  may 
request  an  organization 
full 
justification  for  its interconnection  charges, and 
where  appropriate  shall  require  charges  to  be 
adjusted.  This  paragraph  shall  also  apply  to 
organizations  set  out  in  Part  3  of  Annex  I 
which have been notified  by national  regulatory 
authorities  as  having  significant  market  power 
on the national  market  for  interconnection. 

to  provide 

14 

Common Position  text 

Amended  text 

Article 7(5), first  subparagraph 
(based  on EP Amendment  17) 

5.  National  regulatory  authorities  shall  ensure 
that  the  cost  accounting  systems  used  by  the 
organizations 
for 
implementation  of  the  requirements  of  this 
Article, and are documented  to a sufficient  level 
of detail, as indicated  in Annex V. 

concerned 

suitable 

are 

separation 

5.  The  Commission  shall,  acting  in  accordance 
with the procedure laid down  in Article  15. draw 
up  guidelines  on  cost  accounting  systems  and 
accounting 
to 
interconnection.  National  regulatory  authorities 
shall  ensure  that  the  cost  accounting  systems 
used by the  organizations  concerned  are  suitable 
for  implementation  of  the  requirements  of  this 
Article,  and  are documented  to  a  sufficient  level 
of detail, as indicated in Annex V. 

relation 

in 

Article 9(1) 
(based  on EP Amendment  21) 

interconnection 

1.  National  regulatory  authorities  shall  encourage 
the 
and  secure  adequate 
interests of all users, exercising their  responsibility 
in  a  way  that  provides  maximum  economic 
efficiency  and  gives  the  maximum  benefit  to  end-
users.  In particular,  national  regulatory  authorities 
shall take into account; 

in 

interconnection 

1.  National  regulatory  authorities  shall  encourage 
the 
and  secure  adequate 
interests of all users,  exercising their  responsibility 
in  a  way  that  provides  maximum  economic 
efficiency  and  gives  the  maximum  benefit  to  end-
users. In particular,  national  regulatory  authorities 
shall take into  account: 

in 

-  the  need 
communications for  users; 

to  ensure  satisfactory  end-to-end 

the  need  to  ensure  satisfactory  end-to-end 

- 
communications for users; 

-  the need to stimulate a competitive  market; 

- 

the need to stimulate a competitive  market; 

the  need 

to  ensure 

- 
the  fair  and  proper 
.development  of  a  seamless  harmonised  European 
telecommunication  home  market,  thus  coordinate 
their  policies,  guidelines  and  actions  with  their 
counterparts  in other  Member  States  and  with  the 
Commission  and  provide them  help  and  assistance 
when  necessary; 

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

interconnection 

and 

the 

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

interconnection 

and 

the 

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

the  principles  of  non-discrimination  (including 

- 
equal access) and  proportionality; 

-  the  need  to  maintain  and  develop  universal 
service. 

the  need  to  maintain  and  develop  universal 

- 
service. 

15-

Common Position  text 

Amended  text 

Article 11 
(based  on EP Amendment  22) 

to 

legislation 

Where  an  organization  providing  public 
telecommunications  networks  and/or  publicly 
available  telecommunications  services  has  the 
right  under  national 
install 
facilities  on,  over  or  under  public  or  private 
land, or may take advantage  of a procedure  for 
the  expropriation  or  use  of  property,  national 
regulatory  authorities  shall  encourage 
the 
sharing  of  such  facilities  and/or  property  with 
other 
providing 
telecommunications  networks  and  publicly 
available services. 

organizations 

to 

legislation 

Where  an  organization  providing  public 
telecommunications  networks  and/or  publicly 
available  telecommunications  services  has  the 
right  under  national 
install 
facilities  on,  over  or  under  public  or  private 
land, or may take  advantage  of a procedure  for 
the  expropriation  or  use  of  property,  national 
regulatory  authorities  shall  encourage 
the 
sharing  of  such  facilities  and/or  property  with 
other 
providing 
telecommunications  networks  and  publicly 
available  services,  in  particular  where  essential 
requirements  deprive  other  organisations  of 
access to viable alternatives. 

organizations 

Agreements  for  collocation  or  facility  sharing 
shall  normally  be  a  matter  for  commercial  and 
technical  agreement  between 
the  parties 
concerned.  The  national  regulatory  authority 
may  intervene  to  resolve  disputes,  as  provided 
for in Article 9. 

Agreements  for  collocation  or  facility  sharing 
shall  normally  be  a  matter  for  commercial  and 
technical  agreement  between 
the  parties 
concerned.  The  national  regulatory  authority 
may  intervene  to  resolve  disputes,  as  provided 
for in Article 9. 

impose 
In  particular.  Member  States  may 
facility  and/or  property  sharing  arrangements 
(including  physical  collocation)  only  after  an 
appropriate  period  of  public  consultation 
during  which  all  interested  parties  must  be 
given  an  opportunity  to  express  their  views. 
include  rules  for 
Such  arrangements  may 
facility  and/or 
apportioning 
property sharing. 

the  costs  of 

sharing 

arrangements 

Member  States  may  impose  facility  and/or 
(including 
property 
physical  collocation)  only  after  an  appropriate 
period  of  public  consultation  during  which  all 
interested  parties must be given  an  opportunity 
to express their views.  Such  arrangements may 
include  rules  for  apportioning  the  costs  of 
facility  and/or property  sharing. 

Article 
(based  on  EP 

12 par. 2 
Amendment  23) 

2. 
In  order  to  ensure  full  interoperability  of 
Europe-wide  networks  and  services,  Member 
States  and  the  Community  shall  ensure  the 
coordination  of  their  positions  in  international 
fora  where  numbering 
organizations  and 
decisions  are 
into  account 
possible  future  developments  in  numbering  in 
Europe. 

taking 

taken, 

2. 
In  order  to  ensure  full  interoperability  of 
Europe-wide  networks  and  services,  Member 
States  shall  take  all  necessary  steps  to  ensure 
the  coordination  of  their  national  positions  in 
international  organizations  and  fora  where 
numbering  decisions  are  taken,  taking  into 
in 
account  possible 
numbering in Europe. 

future  developments 

- 1 6-

Common Position text 

Amended text 

Article  12(3) 
(based  on EP Amendment  24) 

numbering  plans 

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

ranges  are 

interest 

numbering  plans 

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

Article  12(5) 
(based  on EP Amendment  25) 

5. 
National  regulatory  authorities  shall 
encourage  the  earliest  possible  introduction  of 
the  number  portability 
facility  whereby 
end-users  who  so  request  can  retain  their 
number(s)  on 
telephone 
network  at  a  specific  location  independent  of 
the  organization  providing  service,  and  shall 
ensure that this facility  is available at least in all 
major  centres  of  population  before  1  January 
2003. 

fixed  public 

the 

independent  of 

fee  approved  by 

5. 
National  regulatory  authorities  shall 
encourage  the  earliest  possible  introduction  of 
the  number  portability 
facility  whereby 
end-users  who  so  request  can  retain,  against  a 
reasonable 
the  national 
regulatory  authority,  their  number(s)  on  the 
fixed  public  telephone  network  at  a  specific 
location 
the  organization 
providing  service,  and  shall  ensure  that  this 
facility  is available  at  least  in  all  major  centres 
of  population  before  1  January  2003. 
If  this 
facility  is  not  yet  in  use,  national  regulatory 
authorities  shall  ensure  that,  once  a  user  has 
changed  supplier,  a  telephone  call  to  his  old 
number  can  be  rerouted  to  the  user  against  a 
the  national 
reasonable 
a 
regulatory 
reasonable  period 
callers  are  given  an 
indication of the new number, without  charging 
the user or the callers for this service. 

fee  approved  by 
authority,  or 

that  during 

17 

Common Position text 

Amended text 

Article 17 
(based on EP Amendment  27) 

Conciliation procedure for disputes between 

Dispute resolution  at Communitv-level 

organizations operating under  authorizations 

provided by 

different  Member  States 

1.  Without prejudice to: 

1.  Without  prejudice to: 

(a) 
any  action  that  the  Commission  or  any 
Member  State may take pursuant to the Treaty; 

(a) 
any  action  that  the  Commission  or  any 
Member  State may take pursuant to the Treaty; 

(b) 
the  rights  of  the  party  invoking  the 
procedure  in  paragraphs  2  and  3,  of  the 
organizations  concerned  or  of  any  other  party 
under applicable national law; 

the  rights  of  the  party  invoking  the 
(b) 
procedure 
in  paragraphs  2  and  3,  of  the 
organizations  concerned  or  of  any  other  party 
under applicable national law; 

the  procedure  set  out  in paragraphs  2,  3 and  4 
shall  be  available 
the  event  of  an 
in 
interconnection  dispute  between  organizations 
operating  under  authorizations  granted  by 
different  Member  States,  where  such  dispute 
does not fall within the responsibility of a single 
national  regulatory  authority  exercising 
its 
power in accordance with Article 9. 

the  procedure  set  out  in paragraphs  2,  3 and  4 
shall  be  available 
the  event  of  an 
in 
interconnection  dispute  between  organizations 
operating  under  authorizations  granted  by 
different  Member  States,  where  such  dispute 
does not fall within the responsibility of a single 
national  regulatory  authority  exercising 
its 
power in accordance with Article 9. 

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

in  accordance  with 

the  dispute, 

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

in  accordance  with 

the  dispute, 

3. 
If  the  national  regulatory  authorities 
concerned  do not  agree between  themselves on 
a  solution  within  six  months  of  referral,  the-
procedure  provided  for  in  paragraph  4  may  be 
invoked  by  one  of 
them  by  way  of  a 
notification  to  the  Commission,  with  copies  to 
regulatory 
all 
authorities  concerned.  The  solution  shall  have 
binding effect  only if all parties are agreed. 

and  national 

the  parties 

3. 
If  the  national  regulatory  authorities 
concerned  do not  agree between  themselves on 
a  solution  within  six  months  of  referral,  the 
procedure  provided  for  in  paragraph  4  may  be 
invoked  by  any  of  the  parties  or  national 
regulatory  authorities  concerned  by  way  of  a 
notification  to  the  Commission,  with  copies  to 
all 
regulatory 
authorities  concerned.  The  solution  shall  have 
binding effect  only if all parties are agreed. 

and  national 

the  parties 

18 

Common Position  text 

Amended  text 

4.  Following  a notification  to the  Commission 
based  on  paragraph  3,  the  Commission  shall 
refer  the  matter  to  the  chairman  of  the  ONP 
Committee. 

The  chairman  of  the  ONP  Committee  shall 
convene  as  soon  as  possible  a  working  group 
including  at  least  two  members  of  the  ONP 
Committee  and  one  representative  of  each  of 
the  national  regulatory  authorities  concerned 
and  the  chairman  of  the  ONP  Committee  or 
another  official  of  the  Commission  appointed 
by  him.  The  working  group  shall  normally 
meet  within  10  days  of  the  meeting  being 
convened.  The  chairman  may  decide,  upon 
proposal  of any of the members  of the  working 
group,  to  invite  a  maximum  of  two  other 
persons as experts to advise it. 

4.  Following a notification  to the  Commission 
based  on  paragraph  3,  the  Commission  shall 
convene  as  soon  as  possible  a  working  group 
including  at  least  two  members  of  the  ONP 
Committee  and  one  representative  of  each  of 
the  national  regulatory  authorities  concerned 
and  the  chairman  of  the  ONP  Committee  or 
another  official  of  the  Commission  appointed 
by  him.  The  working  group  shall  normally 
meet  within  10  days  of  the  meeting  being 
convened.  The  chairman  may  decide,  upon 
proposal  of any of the  members of the working 
group,  to  invite  a  maximum  of  two  other 
persons as experts to advise it. 

The  working  group  shall  give 
the  party 
invoking the procedure,  the national  regulatory 
authorities  of  the  Member  States  and  the 
to 
organizations 
present their opinions in oral or written  form. 

the  opportunity 

involved 

The  working  group  shall  give 
the  party 
invoking the procedure,  the national  regulatory 
authorities  of  the  Member  States  and  the 
to 
organizations 
present their opinions in oral or written  form. 

the  opportunity 

involved 

its  position  within 

if  an  agreed  position 

The  working  group  shall  endeavour  to  reach 
agreement  between  the  parties  involved  or 
otherwise  define 
three 
months.  This  position  shall  form  the  basis  of a 
solution  to  be  implemented  at  a  national  level 
without  delay.  If  an  agreed  position  is  not 
reached,  or 
is  not 
implemented  within  a reasonable period  of time 
in  justified  cases, 
which  shall  not,  except 
exceed  two  months,  the  appropriate  solution 
shall  be  adopted  by 
in 
accordance  with  the  procedure  laid  down  in 
Article  16. This  solution  shall not  prejudice  the 
possibilities  which  exist  in  national  legislation 
for  one party to  claim in the relevant  courts  for 
the  granting  of  damages  if  it  appears  that  the 
behaviour  of  another  party  has  led  to financial 
losses  due 
to  distortion  of  competition. 
However, issues which  have been  settled  at EU 
level cannot be questioned  under these claims. 

the  Commission 

The  working  group  shall  endeavour  to  reach 
agreement  between  the  parties  involved.  The 
chairman  shall  inform  the  ONP  Committee  of 
the results of this procedure. 

-19 

Common Position  text 

Amended  text 

Article 20(1) 
(based  on EP Amendment  29) 

concern 

obligations 

1.  Deferment  of the obligations under  Articles 
3(1),  3(2),  4(1),  4(2),  9(1)  and  9(3)  insofar  as 
those 
direct 
interconnection  between  the  mobile  networks 
of  that  Member  State  and  the  fixed  or  mobile 
networks  of  other  Member  States,  and  under 
Article 5,  shall  be  granted  to  those  Member 
States  identified  in  the  Council  Resolutions  of 
22 July  1993  and  22 December  1994  which 
benefit  from  an  additional  transition  period  for 
the 
telecommunications 
of 
services  for  as  long  as  and  to  the  extent  that 
transition 
they  avail 
themselves  of  such 
periods.  Member  States  shall  inform 
the 
Commission  of  their  intention  to  make  use  of 
them. 

liberalization 

request 

in  which 

96/19/EC  may 

Member  States  with 

less  developed 
1. 
networks  which  are  granted  an  additional 
period  of  up 
to 
to  five  years 
implement  all or  some of the  obligations  under 
a 
Directive 
corresponding  deferment  of  some  or  all  the 
requirements  of  Articles  3(1),  3(2),  4(1),  4(2), 
9(1)  and  9(3)  insofar  as  those  obligations 
concern  direct  interconnection  between  the 
mobile networks  of that  Member  State and  the 
fixed  or  mobile  networks  of  other  Member 
States,  and  under  Article 5.  to  the  extent 
justified  by  any  special  or  exclusive  rights  for 
telecommunications  services  and  infrastructure 
allowed under Community law. 

Article 20(2) 
(based  on EP Amendment  30) 

2.  Deferment  of the  obligations  under  Article 
12(5)  may  be  requested  where  the  Member 
State  concerned  can  prove  that  they  would 
impose  an  excessive  burden  on  certain 
organizations  or  classes  of  organization.  The 
Member  State  shall  inform  the  Commission  of 
the reasons for  requesting a deferment,  the date 
by which  the  requirements  can  be  met,  and  the 
measures  envisaged 
this 
deadline.  The  Commission  shall  consider  the 
request 
the  particular 
into  account 
situation  in that  Member  State  and  the  need  to 
ensure  a  coherent  regulatory  environment  at  a 
Community  level,  and  shall  inform  the Member 
State  whether  it  deems  that  the  particular 
situation 
in  that  Member  State  justifies  a 
deferment  and,  if  so,  until  which  date  such 
deferment  is justified. 

in  order  to  meet 

taking 

2.  Deferment  of the  obligations  under  Article 
12(5)  may  be  requested  where  the  Member 
State  concerned  can  prove  that  they  would 
impose  an  excessive  burden  on  certain 
organizations  or  classes  of  organization.  The 
Member  State  shall  inform  the  Commission  of 
the reasons for requesting a deferment,  the date 
by which  the  requirements  can be  met,  and  the 
measures  envisaged 
in  order  to  meet  this 
deadline.  The  Commission  shall  consider  the 
request 
the  particular 
into  account 
situation  in that  Member  State  and  the  need  to 
ensure  a  coherent  regulatory  environment  at  a 
the  existing 
level,  and  also 
Community 
possibilities  of otherwise meeting the requirements, 
and  shall  inform  the  Member  State  whether  it 
in  that 
deems  that  the  particular  situation 
Member  State justifies  a  deferment  and,  if  so, 
until which date such deferment  is justified. 

taking 

-20 

Common Position text 

Amended text 

Article 22(2) 
(based on EP Amendment  31) 

2.  The  Commission  shall  examine  and  report 
periodically to  the European  Parliament  and  to 
the  Council  on 
this 
Directive,  on  the  first  occasion  not  later  than 
For  this  purpose,  the 
31 December  1999. 
Commission  may  request  information  from  the 
Member States. 

functioning  of 

the 

2.  The  Commission  shall  examine  and  report 
periodically  to the European  Parliament  and  to 
the  Council  on 
this 
Directive,  on  the  first  occasion  not  later  than 
For  this  purpose,  the 
31 December  1999. 
Commission  may  request  information  from  the 
Member States. 

functioning  of 

the 

The  report  shall  examine  what  provisions  of 
this Directive  should  be  adapted  in the  light  of 
the  developments  in  the  market,  the  evolution 
of technology  and the changes  in user  demand, 
in particular: 

The  report  shall  examine  what  provisions  of 
this Directive  should  be  adapted  in the  light  of 
the  developments  in  the  market,  the  evolution 
of technology and the changes  in user  demand, 
in particular: 

(a) 

for the provisions under Article 5; 

(a) 

for the provisions under Article 5; 

to  confirm  the  timetable  laid  down  in 

(b) 
Article  12(5). 

to confirm  or advance the timetable laid 

(b) 
down in  Article  12(5). 

The  Commission  shall  also  investigate  in  the 
report  the  possibility  of  setting  up  swiftly  a 
European  regulatory  authority  to  carry  out 
those  tasks  carried  out  by  the  Commission  or 
the national  regulatory  authorities  according  to 
this  Directive,  which  can  better  be  undertaken 
at Community level. 

21 

ISSN 0254-1475 

COM(96) 535  final 

DOCUMENTS 

EN 

15  16  08  06 

Catalogue  number  :  CB-CO-96-543-EN-C 

ISBN  92-78-10675-5 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

2 ">