TOWARDS A EUROPEAN NUMBERING ENVIRONMENT - GREEN PAPER ON A NUMBERING POLICY FOR TELECOMMUNICATIONS SERVICES IN EUROPE
Date: 1996-11-20
Institutions: European Commission
Subjects: communications policy, new technology, research and development, technological change, telecommunications

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

•ir 

-Ù 

Brussels,  20.11.1996 
COM(96)  590  final 

TOWARDS A EUROPEAN NUMBERING ENVIRONMENT 

GREEN PAPER 

ON A NUMBERING POLICY FOR 

TELECOMMUNICATIONS  SERVICES IN EUROPE 

(presented  by  the  Commission) 

EXECUTIVE  SUMMARY 

WHY  IS  NUMBERING  IMPORTANT? 

Efficient  telecommunications  services  are a key factor  for  the emergence of the  Information 

Society.  An appropriate  numbering  policy  is an essential  element to facilitate  access to 

telecommunications  services  for  all European businesses  and citizens. 

Telecommunications  operators and service providers as well as business users  increasingly 

look towards  Europe  as their future  market place. But this is an evolution which  will  affect 

more and more  every citizen.  Call centres and customer service help desks are often  organised 

on a regional  or European  basis. New  services such as teleshopping  rapidly enter the European 

market  with great  expectations  for the future.  Personal  communications  are on the doorstep  and 

are likely to be broadly  available before  the tum of the century.  At the same time, the  regulatory 

environment  is changing with  1 January  1998 as the date by which services and  infrastructures 

will be fully  liberalised  across the European  Union. 

Numbering  is a key enabler of these  developments  and is rapidly becoming a key  commercial 

and competitive factor  for the telecommunications  industry. It is therefore  important to  develop 

a European  numbering  policy.  Such  a numbering policy must be based on defined  political 

priorities. This  includes objectives  driven by the process of liberalisation  and  objectives 

resulting from  the rapidly changing economic and technological environment.  Moreover,  with 

the Union-wide introduction  of competition,  special attention must be given to the take off of 

pan-European  networks  and services  in order to overcome the effects  of commercial  forces 

which might, in the absence of a clear European policy, tend to fragment the European 

marketplace. 

WHAT  DOES  T HE  CUSTOMER  GET  OUT OF  THIS? 

The debate on numbering  must take account of the view of the users. They are the ones  that 

benefit, from  the effects  of numbering  reform  and the introduction  of new mechanisms  to 

enhance customer  choice. 

For instance, the  introduction  of carrier  selection  is likely to bring large direct and  indirect 

benefits  to the European  society  and  economy.  It is an essential  element  to bring  increased 

competition  on  long-distance  and  international  traffic  which  in turn could  save the  European 

users  as much  as  20  to 25  BECU  per year.  Number  portability  is another example  that  allows 

the users  to retain  their  number  when  they  wish  to change operators  and  allows  them  to  make 

the best  choice  in terms of quality, service and  cost. 

Acu 

The opening of  service platforms  for special pan-European services such as freephone  could 
not only bring important additional revenues to operators but also provide easy and user-
friendly  access to product marketing and sales organisations with consequential benefits  for 
Europe's economy. By way of example, 435 B$ of goods were sold on freephone  calls in the 
US in 1993. 

National numbering schemes have to be reformed because of the growth of and changes in the 

market. This presents a unique opportunity to build-in a convergence aim: that is to harmonise 

national numbering schemes such that the European users in the future will face a more 

singular structure throughout Europe which is simple to understand and hence would stimulate 

the propension of using the telephone. Moreover, important psychological barriers associated 

with making international calls could be removed within the European Union. 

KEY ISSUES FOR A NUMBERING POLICY WITHIN THE EUROPEAN UNION 

This Green Paper stresses that discussions on numbering must be part of the general 

regulatory debate. It therefore invites both general and detailed comments of all 

interested  parties on a range of issues, including comments on the timetable and 

mechanisms by which policy can be implemented and on the approaches needed to safeguard 

the interests of consumers and of all users. 

KEY ISSUES FOR NUMBERING POLICY WITHIN THE EUROPEAN UNION 

I  The  role  of  numbering  in ensuring  effective  competition, and  in  particular: 

-  Carrier  selection. 

-  Number  portability. 

-  Restructuring  of national numbering  plans to foster competition  and the role  of 
national  regulatory  authorities  in ensuring  adequate  numbers  are  available. 

(I  Facilitating  the  single  market  and, in  particular: 

-  '  The  creation  of  a European Telephony  Numbering  Space, 

and  within  that  the need  for common access  codes  for pan-European  services 
(such  as  freephone,  shared  cost, premium  rate or mobile  network  services). 

- 

The  need for  European  numbering  to be administered  by an  appropriate 
administrative  structure  at a European  level 

Adapting  Europe's  numbering  environment  to  the  needs  of  the 

III 
Information  Society,  and, in  particular: 

-  The  creation  of  a long  term  numbering  plan for  Europe 

-  Naming  and addressing  in the  Internet  and other  emerging  multi-media  and on  line 

services. 

ESTABLISHING  AN  AGENDA  FOR  EUROPE 

In order to achieve  these objectives the Commission proposes the following  targets: 

Summary  of proposals  for  action 

From  1 January 1998 

1.  The implementation  of carrier selection  (i.e. users are offered  a simple,  non 

discriminatory  mechanism  enabling  them to select the carrier of their choice  on a call 
by call  basis). 

2.  The implementation  as soon as possible of number  portability for the local  loop 

and, at the latest  by 2000  (i.e. allowing  users in all major  centres of population  to keep 
their telephone  number at a particular  location when changing to another  operator or 
service  provider). 

3.  The promotion  of action at a national  level to  open up and to ensure the convergence 
of national  number  plans  including the harmonisation of specific  access  codes and 
the adoption  of a common  standard for keypads  supporting  alpha-numeric  dialling (i.e. 
allowing  users to 'dial' names  instead of numbers, e.g. 'FLOWERS' for a florist). 

4.  The implementation  of a European  Telephony  Numbering  Space  (i.e. the 

implementation  of a common  numbering  scheme  and common  access  codes for 
special  pan-European  services  : freephone, premium  rate and shared  cost  calls,  and, 
if needed, for personal  communications  services). 

5.  The establishment  of a common  framework for the  regulation and administration 
of a common  European  numbering  scheme  (including the allocation  of  European 
service  access  codes and carrier  selection codes, as well as the promotion  of the 
Community's  interest in international  numbering  fora). 

6.  The review  of the  issues  associated with  naming and addressing  in the context of 

the  Internet  and to consider  the  need, if any, of regulatory action. 

From  1 January  2000 

7.  The implementation  of carrier  pre-selection (i.e. allowing  users  a simple,  non 

discriminatory  mechanism  enabling  them to pre-select the carrier of their  choice  on a 
permanent  or default  basis). 

8.  The extension  of number  portability for users of mobile and personal 

communications  networks as well as for users of special services  (e.g.  allowing 
users to retain  valuable  numbers for freephone or personal  communications  services), 
taking  into  account  the state of network development  and the level of demand. 

From  2000  onwards 

9.  The implementation  of a long-term  numbering  plan, involving  the creation of a 

European  country  code  ("3"-XX)  with the administration and management  of the  code 
transferred to the European  level. 

Comments  are invited  on each  of these  proposed  measures  as well  as on the 
proposed  timetable. 

The Commission  is aware that  the introduction  of new  mechanisms such  as those  for  carrier 

selection  as  well  as  measures  aimed  at a harmonisation  of the numbering plans  may  bring 

significant  costs  to  the  industry  and  more  importantly  to the user.  However,  the  increase of 

demand  for  telecommunications  services  and  the introduction  of competition  mean  that 

numbering  plans  must  be adapted  in  most countries. The  aim of this Green  Paper  is to  ensure 

that  the changes  are  made  taking  into account  long term  planning objectives  and  European 

mteuration. 

4  C 

When  establishing  the agenda and  implementation  time schedule  for Europe  we must  take 

account of the costs and benefits  that may be derived  from  the measures  implemented.  On 

balance however,  the Commission  believes that costs involved  will be more than offset  by the 

greater  choice, improved  quality of service and indeed  lower  tariffs  that numberplan  changes 

can  facilitate. 

Obviously, the propositions  made in this Green Paper reach further  than the European  Union. 

For instance, the ultimate goal of establishing a unique European  identity (e.g.  Europe 

identified  by the initial digit " 3"  of a three digit country code) would  involve the countries in 

Central  and Eastern Europe. The discussion  can therefore  not be confined  to the European 

Union only but needs to be broadened  to involve CEPT ECTRA to find  answers to important 

questions such as how to move forward  with a unified  numbering  environment  for Europe  but 

at the same time leave sufficient  room for  a phased introduction of competition  in  different 

markets  according to the different  liberalisation time scales of the countries  involved. 

And  further  mechanisms  must be sought to ensure the continuing  involvement of all interest 

groups  at a national and European  level in the development of Europe's  numbering 

environment. 

COMMENTS  ARE  INVITED 

This  Green Paper  is intended to launch an active discussion  involving the Council of the 

European  Union  and the European Parliament; the Economic and Social  Committee and the 

Committee of the Regions; the ad-hoc  high level Committee of National  Regulatory 

Authorities; consumers  and business users; fixed and mobile network operators, and  service 

providers; manufacturers  of equipment; together with the trade unions and other  organisations 

representing  the social  interests  in the sector.  Comments  and opinions are invited on all the 

positions  set out in this Green Paper and, in particular, on the proposed targets established  in 

the table above. 

On  the basis of the Consultation  political positions  will be developed.  The Commission  will 

forward  those to the Council and the European  Parliament. 

Comments  should  be sent  to the European  Commission,  DG XLII A/1,  Rue de la Loi 200, B-

1049  Brussels  to the attention of Mr.  de Cockborne (fax  +32  2 2968391)  at the latest by  Friday 

21  February  1997.  Comments  may also be sent by e-mail  to: numbering@bxl.dgl3.cec.be 

with  reference  to "Numbering  Green  Paper" (in  format  Word  for  Windows or  Wordperfect). 

siJL 

TABLE  OF  CONTENTS 

I INTRODUCTION: WHY NUMBERING  REFORM? 

II THE CURRENT SITUATION 

II. 1 The organisation of numbering policy at a global, European and national level 

11.2 Much has already been done in the field of numbering 

11.3 But key regulatory decisions arc increasingly urgent 

III THE KEY TASKS  FOR A EUROPEAN NUMBERING  POLICY 

111.1  Regulatory evolution: "making competition effective" 

111.2 Economic evolution: creating an internal market for special services 

111.3 Technological evolution: promoting innovation 

111.4 Evolution of numbering from  the customer's perspective: need for harmonisation 

111.5 European  numbering: a continuum between national and global numbering 

IV PROPOSALS  FOR ACTION 

rV.l  Ensuring effective  competition 

IV.2 Facilitating a single market 

IV.3 Adapting to the Information  Society 

V CONCLUSIONS 

1 

2 

2 

3 

6 

9 

10 

11 

12 

12 

13 

15 

15 

19 

21 

25 

ANNEX I: COMMENTS ON THE ECTRA STRATEGIC OPTIONS FOR NUMBERING AND 

ANALYSIS OF THE COST-BENEFITS 

ANNEX II: CARRIER SELECTION 

ANNEX n i:  NUMBER PORTABILITY 

ANNEX IV : PERSONAL COMMUNICATIONS 

ANNEX V : A REFERENCE SCENARIO FOR MOVING TO AN OPEN AND UNIFIED 

EUROPEAN  NUMBERING ENVIRONMENT 

ANNEX VI: ETO/ECTRA STUDIES ON NUMBERING 

LIST OF ABBREVIATIONS 

GLOSSARY 

26 

29 

32 

36 

37 

39 

40 

41 

SI  J? 

I 

INTRODUCTION:  WHY NUMBERING  REFORM? 

1 

With  the  emergence  of  a  liberalised  telecommunications  market  within  the  European 
Union,  the  availability  of  adequate  numbers,  allocated  on  a fair,  transparent  and  non 
discriminatory  basis,  is an essential  condition  for  effective  competition,  innovation  and 
consumer choice. 

Numbering  was  recognised  in  the  1995  Green  Paper  on  the  liberalisation  of 
telecommunications  infrastructure1  as "a key facilitator - a pivot in market liberalisation 
and  the  introduction  of  competition".  It  was  seen  as  necessary  to  ensure  that  the 
"development  of  telecommunications  networks and  services are  not  hampered  on 
numbering  grounds"  and  that  "this  challenge needs  to  be  addressed  by  careful 
management  of  the overall numbering schemes,  at a global,  European and national 
level". 

Moreover,  for the completion of the internal market Europe requires the availability of a 
European  numbering environment to promote the emergence of pan-European services. 
Easy  access  to these services through harmonised access codes on a European  scale is 
key for the customer and the industry2. 

In  the  transition  to  full  competition  in Europe,  numbers  are  becoming  as  important  a 
resource  as  frequencies  or rights of way3.  Over recent years, the number  of telephone 
numbers  in  use within the European Union has significantly  increased  and  exceeds  the 
growth  in  the  number  of  subscribers.  Such  an  increase  reflects  both  the  growth  in 
business  communications  and  computing.  However,  even  in  the  home,  demand  for 
numbers is increasing as users are beginning to take second or third fixed telephone lines 
for faxes or for modems4, and an increasing percentage of the population carry a mobile 
telephone or a pager. 

In addition there are the new entrants in the market such as the cable TV operators and 
the mobile network operators. These operators require equal access conditions which in 
numbering terms means equal quality or equal opportunity numbers. 

This substantial increase in demand  is putting pressure on existing national  numbering 
plans and leading to important reforms  at a national level designed to free  extra capacity 
for operators and, ultimately, for users. 

This  pattern  of  reform  shows  very  different  national  approaches.  It  does  not  resolve 
many of the  fundamental  competitive  and consumer  issues  created  by a  multi-operator 
environment,  nor  does  it  provide  an  immediate  response  to  the  demand  for  unique 

2 

3 

Green  Paper  on  the  liberalisation  of telecommunications  infrastructure  and  cable  TV  networks  -  Part  II  :  A 
common  approach  to the provision  of infrastructure  in the European  Union  (COM(94)6S2  final,  25.1.95) 

According  to  Article  129b  of  the  Treaty  "the  Community  shall  aim  at promoting  the  interconnection  and 
interoperability  of  national  networks  as  well as access  to such  networks". 

Unlike  frequencies  and  right.s of  way  which  are  physically  constrained,  numbering  is  elVeclively  constrained 
because  changes  are costly  and  highly  resented  by the public. 

More  than  6  of  the  15  Member  States  have  a  residential  main  line  penetration  rate  per  100  households  of 
over  100%,  with  the  ligure  reaching  121% in  Sweden.  See Communication  of  13 March  1996  on  universal 
service  for  télécommunications  in the perspective of a fully  liberalised  environment,  COM(%)  73. 

.  I 

Europe-wide  numbers  for  certain  operators  or certain  services  - numbers  which  can  only 
be provided  if adequately  co-ordinated  at a European or global  level. 

Solutions are urgently  needed : 

- 

- 

- 

- 

to  offer  choice  to  the  customer:  unless  users  can  easily  choose  or  even  pre-select 
competing  carriers  and  can  keep  their  fixed  or  mobile  telephone  number  when  they 
change telephone companies or service providers, competition  will be held  back. 

to  minimise  total  cost of change:  frequent  changes  in a national  numbering  scheme 
involve  high  costs  in  re-programming  equipment  and  updating  software. 
For 
companies  providing  pan-European  services  to  customers,  the  pattern  of  continual 
and  uncoordinated  change place  significant  costs  on operators  and  service  providers, 
as  do  the  existence  of  difference  numbers  and  service  access  codes  in  different 
countries.  A stable  long term  plan,  communicated  to the  market  well  in advance,  can 
lead  to  important  cost  saving  as  it  allows  businesses  to  reprint  stationary,  repaint 
vehicles  and  inform  customers  as part of their normal procedures. 

to  facilitate  easy  and  informed  access:  in  an  increasingly  complex  environment, 
simple  and  easily  understood  numbering  schemes  help  users  to  make  and  receive 
calls,  to  select  different  operators  for  different  national  and  pan-European  services 
both  inside  and  outside their  home  country.  They would  also provide  important  tariff 
indications to the customer  about what they can expect to pay for  a call. 

to  bring  about further  harmonisation  across  Europe: the possibility  of innovative 
approaches  to  numbering,  for  example  replacing  numbers  with  words,  will  further 
ease the  use of telephone  but  to  achieve this  Europe  must  have  a standard  telephone 
keypad.  Further,  a  European  Telephony  Numbering  Space  (ETNS)  could  provide 
common  service  access  codes  across  Europe  (for  example,  for  European-wide 
freephone,  value-added  or mobile services or for shared cost services5). 

The proposals  and positions set out in this Green Paper in respect of these various  issues 
are  consistent  with  the  general  approach  followed  by  the  Community  in  the  area  of 
- telecommunications  since  1987.  This  approach,  which has been  confined  to those  areas 
where action is required  and appropriate at European level, balances the gradual  opening 
up  of  markets  with  an  accompanying  regulatory  framework  ensuring  fair  competition 
and protecting the public interest,  and a case by case application of competition  rules. 

II  THE CURRENT  SITUATION 

II. 1 The organisation  of numbering  policy  at a global,  European  and  national  level 

an 

and 

Today  there  is  a complex  set  of  rules  governing  numbering  policy  established  at  a 
national  level,  through  Community  action  in  some  areas  or  by  ECTRA  /  ETO  in 
International 
others, 
Telecommunications  Union  (ITU)  with  regard  to a range of  issues  having  a  global 
impact,  from  the  allocation  of  country  codes  to  the  maximum  length  of  telephone 
numbers  and  the  introduction  of  global  numbers,  for  services  such  as  global 
freephone  (based  on the  800 number). 

established 

framework 

overall 

the 

by 

Given  that  relevant  access  codes  lor  mobile  and  value-added  services  vary  between  Member  States,  a  user 
calling  such  a  number  from  another  Member  State  may  often  be  unaware  that  he or  she  is dialling  a  number 
to which  a  premium  or higher  call  rate  will  apply. 

The  regulation  of country  codes  is one of  the  most  important  functions  of  the  ITU 
in  relation  to numbering.  A process of review  is currently  underway  as  to how  the 
World  telephony  numbering  plan  might  evolve  to  meet  the  demand.  In  particular, 
both  Governments  and  operators  are pushing  for  country  codes  to  be  allocated  not 
only  to  new  States,  but  also  to  specific  types  of  service  (for  example,  satellite-
based  personal  communications  services  -  where  each  system  operator  has 
requested  the  allocation  of a country  code  for  global  access),  and  even  to  specific 
networks  or  network  operators  .  With only  85 country  codes  remaining,  the  limits 
of the current global numbering plan are becoming  apparent6. 

At  the  national  level, numbers  have been  traditionally  owned  and  managed  by  the 
incumbent  telecommunications  organisation.  Those  companies  allocated 
the 
dialling  codes  for  particular  cities  or  particular  services  (e.g.  mobile  or  paging 
systems),  the  individual  numbers  for  their  customers  and,  where  they  existed,  the 
numbers  used  by  their  competitors.  Such  national  numbering  schemes  vary 
between  Member  States, but conform  to general  rules  established  at  a global  level 
under the auspices of the ITU. 

Whilst  the  day  to  day  administration  of  national  numbering,  in  line  with  the 
principle  of  subsidiarity,  will  remain  a  national  function  to  be  carried  out  by  an 
authority  independent of the operators, further  action is needed  at a European  level, 
both  to developing  a long term strategy  and structure  for  numbering  in Europe  and 
to  co-ordinate  and  present  common  European  positions  in  relation  to  external 
developments,  such  as  those  within  the  ITU.  Given  the  extensive  resources 
required  to follow  the work  within ITU  Working  Groups  a co-ordinated  European 
position  represents  the  only  practical  way  for  a number  of  European  countries  to 
ensure that their voice can be adequately  heard. 

This  dual  approach  will  continue  the  process  of  co-ordination  between  national, 
regional  and  global action  and complete the development  of the  internal  market  for 
telecommunications,  whilst protecting basic user needs. 

II.2 Much  has  already  been done in the field  of  numbering 

Since  the  early  1990's,  the  European  Commission,  the  Council  and  the  European 
Parliament  have  been  active  in  developing  an  open  and  unified  numbering 
environment  within  Europe.  These initiatives  are already  achieving  key  regulatory 
objectives: 

Common  Europe-wide  numbers  for  emergency  or  international 
Member  States. 

calls 

in 

- 

A  Europe-wide  access  code  for  emergency  services  (112),  to  operate  from 
1992  and  only  in  justified  cases  from  1996  alongside  existing  national 
emergency  codes  . 

The  capacity  of  the  global  numbering  plan  cannot  be easily  expanded  because  the  maximum  number  length 
is  fixed  at  15  digits.  Moreover,  it  is  increasingly  difficult  and  lime-consummg  to  obtain  the  necessary 
consensus  within  the  ITU  to  proceed  with  changes  to  the  current  global  plan  within  a  workable  limescalc. 
given  the commercial  and  political  interests  involved. 

Council  Decision  of  29  .Uily  1991  on  the  introduction  of  a  single  Huropcan  emergency  call  number 
(91/396/Hl-:c. ( ).l 1.2 17/3 1. 06.08.91) 

•4 

A  Europe-wide  access  code  for  international  dialling  (00)  to  be  introduced 
between  1992 and  19988. 

A clear role for  national regulatory authorities 

The  basic  principles  governing  numbering  and number  allocation  were  examined 
in the  1994 Mobile Green Paper9 and in the  1995 Infrastructure  Green Paper10 and 
attracted  wide  comment  and  support11.  These  positions  have  now  been 
incorporated 
liberalised 
into 
telecommunications environment. 

the  emerging  regulatory 

framework 

for  a 

-  Member States must separate operational and regulatory activities in the area 
of numbering.  National numbering plans must be controlled by the National 
Regulatory  Authority  and  adequate  details  of  them  must  be  published  at  a 
national level. 

- 

Additionally, obligations have been placed on Member States or proposed  to 
ensure that : 

adequate numbers are available for all telecommunications services (by 
1 July 1997)12. 

numbers  are  allocated 
in  an,  objective,  non-discriminatory, 
proportionate  and  transparent  manner  and  on  the  basis  of  individual 
applications by operators or service providers13. 

adequate  numbering  ranges  are  available  for  all  publicly  available 
telecommunications  services;  and  that  "number  portability"  (i.e.  the 
possibility of a user to retain his/her telephone number  when  changing 
telephone  company  at  a  particular  location)  is  introduced  within  the 
fixed  network  as early as possible and at least  in  all  major  centres  of 
population by 1  January 2003 at the latest14. 

8 

il 

12 

13 

Council Decision of  11 May  1992 on the introduction'of a standard  international  telephone access  code  in  the 
Community (92/264/EEC; OJ L137/21,  20.05.92) 

Towards  the Personal  Communications  Environment  : Green  Paper  on  a common  approach  in  the  field  of 
mobile and personal  communications  in the European Union, COM (94)  145 final,  27.4.94 

Green  Paper on  the  liberalisation  of  telecommunications  infrastructure  and  cable  TV  networks,  Part  II,  A 
commbn  approach  to  the  provision  of  infrastructure  for  telecommunications  in  the  European  Union, 
COM(94) 682  final,  25.01.95 

See Commission  Communication  on  the  consultation  on  the  Mobile  Green  Papu,  OOM(94)  492,  23.11.94 
and  Commission  Communication  on  the  consultation  of  the  Green  Paper  on  the  liberalisation  of 
telecommunications  infrastructure  and cable television  networks, COM(95)  158,  3.5.95 

Commission  Directive  96/19/EC  of  13  March  1996  amending  Directive  90/388/EEC  with  regard  to  the 
implementation  of  full  competition  in telecommunications  markets, OJ L 74/13,  22.3.96 

Directive  95/62/EC  of  the European  Parliament  and  of the  Council  of  13 December  1995 on  the  application 
of open  network  provision  (ONP)  to voice telephony. OJ  L 321/6.  3 1.12.95 

"  Common  Position  (EC)  No  34/96  adopted  by  the  Council  on  IS  June  1996  with  a  view  to  adopting  a 
European  Parliament  and  Council  Directive  on  intereonncciion  m  telecommunications  with  regard 
to 
ensuring  universal  service  and  interoperability  through  application  of  the  principles  of  Open  Network 
Provision  (ONI1),  in  particular  Articles  6, 9 and  1 2. OJ  96/C  22o/u3.  29.7.96 

Establishing  a framework  extending  beyond  the  European  Community  for  co 
operation  on  numbering. 

5 

In  1992  the  Council  set  the  establishment  of  a  European  Telephony 
Numbering  Space  as  a  major  goal  and  called  on  Member  States  to  work 
within  the  CEPT  to  develop  a  framework  for  numbering  co-ordination 
involving the European  Commission15. 

together  with  a  Framework  Contract 

In  1994  the  Commission  signed  a  Memorandum  of  Understanding  with  the 
European  Committee  of  Telecommunications  Regulatory  Authorities 
(ECTRA), 
the  European 
Telecommunications  Office  (ETO)  with the aim of part-financing  studies  and 
working  groups,  involving  representatives  from  43  European  countries,  on  a 
wide  range  of numbering  issues.  Studies  carried  out  for  the  Commission  on 
the subject of numbering  are listed in Annex VI. 

for 

- 

In  1994 a European Numbering Forum (ENF) was created  in order to  involve 
all  interested  parties  in  the  evolution  of  numbering  policy  within  Europe. 
The  ENF,  which  is  open  to  any  European  organisation  having  an  interest  in 
numbering  or  addressing1  , prepares  opinions,  recommendations  and  reports 
for  both the Community and for  ECTRA. 

-  With regard to numbering activity at a regional  and global  level,  considerable 
is  devoted  by  the  Commission  in  promoting  common  European 
effort 
positions  (within  ECTRA),  which  can  then  form  the  basis  for  negotiations 
within the ITU and other  fora. 

Towards  a European  Telephony  Numbering  Environment 

The  1992  Council  Resolution,  invited  the  Member  States  to  start  work  in  the 
context  of  ECTRA  on  the  establishment  of  a  European  Telephony  Numbering 
Space  (ETNS)  i.e.  a  numbering  space  for  parallel  implementation  to  the  existing 
national  numbering  schemes.  A  market-oriented  study  identified  demand  for  pan-
European  numbered  services 
.  A  later  study  by  ETO  concluded  that  an  ETNS 
would  provide  Europe  with  the  vital  flexibility  required  to  implement  pan-
European  services  and  necessary  to ensure Europe's  future  competitiveness  on  the 
world  scene  . 

ECTRA  defined  an  evolutionary  strategy  for  progression  from  today's  numbering 
environment  towards  an  open  and  unified  numbering  environment  with  a  clear 

Council  Resolution  of  19 November  1992  on  the  promotion  of  Europe-wide  co-operation  on  numbering  of 
telecommunications  services  (92/C  318/02; OJ C318/2,  04.12.92) 

16 

(ETNO), 

The  following  bodies  are member of the ENF: the European  Public 'lelecommunications  Network  Operators' 
Association 
the  European 
Information  Industry  Association  (EIIA),  the  European  Telecommunications  Manufacturers  Association 
(ECTEL),  the  luiropean  Computer  Manufacturers  Association  (ECMA),  the  GSM  MoU  luiropean  Interest 
Group  (EIG),  ECTRA  and  the luiropean  Commission.  Further applications  for  membership  are  expected. 

the  European  Telecommunications  Standards 

Institute  (ETSI), 

Potential  Opportunities  Afforded  by  a  New  luiropean  Telephony  Numbering  Space.  Final  Report,  Mary 
Ann  O'l.oughlin  and  Stuart  Sharrock  marketing  consultants,  20 April  1994 

Preparation  of submission  to ITU  requesting  a virtual  country  code  for  the  imple/iienta/ion  of  a  numbering 
space  for  special  ser\-ices  of pan-lùiropean  nature,  ETO,  3 I March  1995 

European  identity19 and  launched  a broad  consultation  of participating  numbering 
administrations  and  the European  Numbering Forum  (see  Annex  I).  Four options 
were proposed: 

-  Option  1  : Maintaining the current situation. 

-  Option  2  :  Implementing  an  ETNS  for  special  services  (e.g.  freephone, 

premium rate and/or shared cost services) 

-  Option 3 : Creation, in addition to providing numbers for special services, of a 
clear European  numbering identity (three digit  numbering  codes)  by using the 
number  "3" to proceed current national country codes (e.g. "333" for France or 
"344"  for  the UK).  This  would  liberate  up  to  50  new  country  codes  within 
Europe  and  allow the current  codes  starting  with  number  "4" to  be  recycled 
within the world-wide numbering plan. 

-  Option 4 : Creation of a single digit country code for Europe, (similar to the use 
of  "1"  to call  North  America from  other parts  of the world  or  "I"  + the local 
area  code  to  call  long-distance  within  North  America)  within  a  unified 
European  numbering  scheme,  which  would  over  time  merge  with  national 
schemes. 

The consultation  showed that whilst Option  1 was widely rejected  and there was 
support for rapid progress on Option 2, there was a clear split of opinion between 
incumbent  operators  and  new  market  players  with  regard  to  the  need  for  rapid 
progress on Options 3 and 4.  . 

II.3 But key regulatory decisions are increasingly urgent 

Whilst  progress  has been  made, further  action  is  required  at  a European  level  to 
respond  to  new  market  market  developments  resulting  from 
the  ongoing 
liberalisation  process  whilst  ensuring  an  adequate  protection  of  the  customer 
interests. 

Responding to user and market needs 

Numbering  schemes  must be opened for  competition,  if users* are  to have  a  real 
choice  as  to  who  provides  them  with  service.  Even  the  efforts  to  ensure 
independent allocation and management of numbering will be of limited benefit,  if 
the  regulator  is  working  with  a  numbering. scheme  designed  for  a  monopoly 
environment.  New  entrants  must  be  able  to  obtain  equal  quality  numbers  for 
example  through  dialling  parity22.  Carrier  selection  and  number  portability  are 
considered  essential  to  allow  customers  to  choose  their  long-distance  carrier  or 
retain  their  number  if they  wish  to change  operator  and  make  the  best  choice  in 

19 

Strategic options  for  numbering of telecommunications  services  m Euiope,  1  l  i AA  FT N,  27 July  1994 

20  Report  on  the  consultation  on  strategic  options  for  numbering  of  telecommunications  services  in  Europe,  by 

ECTRA  PTN.  10 July  1995 

This  split  of opinion  was  confirmed  by  the contributions  received  on  the  consultation  mi  the  Green  Paper  on 
the  liberalisation  olTelceommunieations  infrastructure  anil cable  IV  networks, COM(9-l) 6S2.  25.01.95 

22 

dialling  parity  exist  when  the  same  number  of digits  have  to  be  dialled  for  access  to  services  of  competing 
operators 

service,  service  quality  and  price.  Besides  the  direct  benefits  of  price  savings,  this 
is expected  to bring  large indirect benefits  to society  and economy. 

Numbering  will  be  a  key  facilitator  for  the  completion  of  the  internal  market  for 
telecommunications  networks  and  services,  and,  in  particular,  for  take  off  of  new 
pan-European  services  ">  (such  as  Europe-wide  freephone  services,  tele-shopping, 
easy  access  to  road-side  emergency,  transport  or  tourism  information),  based  on 
single  Europe-wide  numbers.  It  will  give  European  business  better  opportunities 
to 
the  Information  Society,  and  strengthen  Europe's 
telecommunications  industry as it competes in a more open World  market. 

take  advantage  of 

In a multi-operator  environment  and in a Europe,  where more and  more people  are 
travelling,  working  and  living  in  different  parts  of  the  Union,  expectations  are 
raised  that  use  of the  telephone  should  be simple  and  user-friendly.  Furthermore, 
users  expect  the  numbers  they  dial  to  give  some  indication  of  price  (e.g. 
international,  long-distance,  mobile  or  premium-rate  tariffs  are  today  readily 
identifiable  from  the numbers, even if there is a confusing  variation from  country  to 
country).  A  new  approach  to  numbering  at  a  European  level  may  present  an 
opportunity  to  meet  these  concerns  through  the  harmonisation  of  dialling 
arrangements 
across  Europe,  providing  this  can  be  justified  on  the  basis  of 
demand,  the level of network  developments and the costs  involved 

If Europe  wishes  to  reap  the  full  benefits  of  the  liberalised  internal  market,  it  will 
need  a  numbering  environment  that  can  fully  accommodate  present  and  future 
requirements.  This  may  involve  major  restructuring  of  national  numbering  plans, 
but  such  changes  are  proceeding  today  at national  level  in  any  event  and  they  are 
not always part  of a clear  long-term strategy  reflecting  the reality of a Europe-wide 
market. 

Users  and  the  telecommunications  industry  demand  a  clear  picture  of  the  future 
numbering  landscape.  This  involves  not  only  the  numbers  and  technical  facilities 
linked to those numbers, but who will be taking the decisions on numbering  and,  in 
the  context  of  promoting  pan-European  services  based  on  Europe-wide  numbers, 
how the tasks of operating  and  managing a European  Telephony  Numbering  Space 
can be  split. 

Finally,  the  changes  which  this Paper  envisages,  if not  adequately  managed,  could 
be  costly,  disruptive  and  unpopular24.  This  means  that  the  Paper  must  focus  not 
only  on  the  decisions  to  be  taken,  but  the  way  in  which  the  implementation  of 
numbering  decisions  will  be  managed  and  the  timescale  within  which  the  targets 
set out  in this Paper  can  be  reached.  The  long lead  times  involved  in  restructuring 
the  number  format  (e.g.  for  carrier  selection)  means  that  the  need  for  decisions  is 
seen  by operators, service providers  and equipment  manufacturers  as  urgent. 

2"  The  introduction  in  the  Union  of  earner  selection  for  international  and  long-distance  trunk  traffic  would  put 
some  40  -  50  billion  ECU  per  year  of  telecommunications  revenues  at  stake;  the  opening  of  a  freephone 
market  would  lead  to  incremental  revenues  as  high  as  4  to  5  billion  ECU  per  year;  see  The  harmonised 
European  telephone  services  market:  the  economic  stakes  and  the  need  for  numbering  solutions,  Sagalel, 
Paris,  March  1996. 

2''  One  example,  is  that  the  cost  of  changing  switchboards  and  other  customer  equipment  related  to  a  major 
numbcrplan  change  in  Germany  has  been  estimated  at  around  3000  man-years  o\  effort.  See  Private 
Network  Perspective  on  the  Cost  of  Number  Changes,  ECMA.  -I March  1996 

At the same  time,  numbering  changes have already  been  undertaken  at a national 
level and those changes may themselves need to be adapted  to decisions taken at a 
European or global  level.  Only a co-ordinated  approach  to numbering  reform  can 
minimise  this  disruption. 
This  means  that  Member  States  should  avoid 
unnecessary  changes pending the emergence of a long-term  European  strategy  for 
numbering. 

Furthermore,  users  must  be  closely  involved  in  the  formulation  of  a  long-term 
numbering  strategy  for  Europe,  and,  where  changes  are  necessary,  a  proper 
assessment  must  be  made of both the cost's involved  and  the  benefits  which  will 
follow for both business and consumers. 

Responding to the political mandate for change 

The issues of user and market need identified  above, find  a parallel  in the political 
framework  for the changes which this Paper proposes. In three specific areas, work 
remains  to  be  done  to  fulfil  the political  objectives  identified  by  Council  and  the 
European Parliament over the last three years in the numbering area.  These can be 
summarised as 

-  Completing  the  télécoms  regulatory  framework  for  Ml  liberalisation  in 
1998  and consulting on the future  regulatory framework required to ensure 
an  efficient  management  of  numbers  (i.e.  to  ensure fair  competition and 
equitable treatment for  the vatious market players26), 

This  goes  beyond  the  framework  introduced  by  the  ONP  Voice  Telephony 
.  Directive27,  the  proposed  Interconnection  Directive28,  the proposed  Licensing 
Directive29  and  the  Full  Competition  Directive""0,  whose  provisions  on 

25  Council  Resolution  93/C213/01 on the review of the situation of the telecommunications  sector and  the  need 

for  further  development  in that market, OJ C  213, 6.8.1993, p. 1 

20  Council  Resolution  on  the  implementation  of  the  future  regulatory  framework  for  telecommunications,  OJ 
. 

95/C  258/01,  18.09.95 

2'  Directive  95/62/EC  of the European  Parliament  and of the Council  of  13 December  1995 on  the  application 
of  open  network  provision  (ONP)  to  voice  telephony,  OJ  L321,  31.12.95  and;  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  95/62/EC), 
COM(96)  419,  11 September  1996, OJ...  to be published 

28  Common  Position  (EC)  No  34/96  adopted  by  the  Council  on  18  June  1996  with  a  view  to  adopting  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),  in particular  Articles  6, 9 and  12, OJ  96/C  220/13,  29.7.96 

h'  Common  Position  adopted  by  the  Council  of  27  September  1996  with  a  view  to  adopting  a  European 
Parliament  and  Council  Directive  on  a  common  framework  for  general  authorizations  and  individual 
licenses  in  the  field  of  telecommunications  services,  to  be  published  shortly,  proposal  ref:  COM(95)  545 
final,  Brussels,  14.11.1995.  Within  the  current  framework  ,  the  granting  of  numbers  can  be  implemented 
through  general  authorisations  or  individual  licenses,  conditions  and  procedures  must  be  transparent  and 
non-discriminator)',  time  limits  arc  imposed  on  Member  States  and  fees  can  be  charged.  The  reasons  for 
limiting  the  number  of  individual  licenses  (only  to  the  use  of  radio  frequencies  was  a  limitation  in  the 
Commission's  initial  proposal)  have been  extended  to numbering,  but  only  on a  temporary  basis  and  subject 
to compliance  with  applicable  Community  law,  which  inter  alia  refers  to  Commission  Directive  96/19/EC 
(OJ  1. 71/1 3,  22.3.96) 

:'°  Commission  Directive  96/19/EC  of  13  March  1996  amending  Directive  90/388/EEC  with  regard  to  the 

implementation  of  full  competition  in  telecommunications  markets. ( )..' 22.3.'?o 

numbering  were  outlined  above,  but  to  look  beyond  1998  to  the  numbering 
challenges  in a multi-operator  environment. 

Facilitating  the  rapid  introduction  of  pan-European  services  based  on  (he 
European  Telephony  Numbering  Space  (ETNS/1, 

This  proposal  was  linked  to the completion  of additional  studies.  These  studies 
have shown  an identified  demand  for pan-European  services.  Technical  studies 
on the implementation  are underway  arid will be concluded  in the mid of  1997. 
In  the  light  of  that  work,  this  Paper  makes  proposals  in  relation  to  both  the 
numbers  themselves  and  the  framework  for  their  future  management  and 
control. 

Establishing  clear  schedules  for  numbering 
communications, 

for  mobile  and  personal 

the  consultation  on  the  Mobile  Green  Paper"2, 

the  political 
Following 
discussions  in the. Council3^ and the European Parliament34  resulted  in a call  for 
action  in this  field. 

Council  Resolution  of  19  November  1992  on  the  promotion  of  Europe-wide  cooperation  on  numbering  of 
telecommunications  services  (OJ  92/C  3 18/02) 

Towards  the  Personal  Communications  Environment:  Green  Paper  on  a  common  approach  in  the  field  of 
mobile  and  personal  communications  in the European  Union, COM(94)145  final,  27.04.1994 

Council  Resolution  of  29  June  1995  on  the  further  development  of  mobile  and  personal  communications  in 
the  European  Union  (OJ  95/C  188/02) 

luiropean  Parliament  Resolution  on  the  further  development  of  mobile  and  personal  communications  in  the 
European  Union.  A4-0097/95,  ( ).l C  151/473,  19 06.95 

HI  T HE  KEY  TASKS  FOR  A  EUROPEAN  NUMBERING  POLICY 

10 

hi  responding  to  the  future  needs  of  the  market  and  the  European  customers,  the 
following  key tasks can be identified  for a European  numbering  policy: 

KEY  ISSUES  FOR A  NUMBERING  POLICY WITHIN THE  EUROPEAN  UNION 

I  The role of numbering  in ensuring effective  competition, and in  particular: 

-  Carrier selection. 

-  Number portability. 

-  Restructuring of national numbering plans to foster competition and the role of 
national regulatory authorities in ensuring adequate numbers are available. 

II  Facilitating the single market and, in particular: 

-  The creation of a European Telephony Numbering Space, 

and within that the need for common access codes for pan-European services 
(such as freephone,  shared cost, premium rate or mobile network services). 

-  The need for European numbering to be administered by an appropriate 

administrative structure at a European level 

Adapting  Europe's numbering environment to the needs of the 

III 
Information Society, and, in particular: 

-  The creation of a long term numbering plan for Europe 

-  Naming and addressing in the Internet and other emerging multi-media and on line 

services. 

III.l  Regulatory  evolution:  "making  competition  effective" 

For  competition  to  be  effective,  users  must  be  able  to  choose  easily  between  thé 
services  of  competing  carriers.  This principle of open  access  is likely to impact  all 
current numbering arrangements.  In practice, it is likely to mean, for  example : 

- 

- 

- 

the  use  of  specific  short  codes  for  access  to  directory  enquiries  or  to  different 
long-distance  carriers; 

the  need  for  operators  and  service  providers  to  have  "fully  open"  access  to 
numbering  ranges for  services such  as freephone;  or 

the  ability  for  subscribers  to  take  their  existing  numbers  with  them  when  they 
change  operators  or  service  provider  (portability  of  numbers  between 
operators). 

Competing  service  providers,  both  those  providing  telecommunications  services 
and  those  providing  services  employing  telecommunications  for  access,  will  be 
concerned  not  only  with  the  quantity  of  numbers  they  are  allocated,  but  also  with 
their  "quality".  This  may,  for  example,  involve  numbers  that  are  easy  to  learn, 
remember  or  subjectively  pleasing  or  the  user  recognition  of  the  meanings  of 

11 

certain  codes  e.g.  for  appropriate  access branding  (identification).  These  service 
providers must therefore also be given equal access to numbers. This concept must 
pervade the development of numbering schemes and the allocation of numbers. 

Under  the  framework  contract  between  the  Commission  and  ETO,  ETO  has 
carried out two numbering studies in this areaj5.  Under a new work order from  the 
Commission,  ETO  will  turn  the  outcome  of  these  studies  into  Numbering 
Conventions  which  establish  an  important  policy  baseline  for  Numbering 
Administrations  and  provide common  rules, for  example, on the  rights  associated 
with numbers and the procedures for allocating them. 

III.2 Economic evolution: creating an internal market for special services 

A  recent  study  for  the  Commission36  and  the  work  by  ECTRA  outlined  above 
show  that  there  is  a  strong  demand  for  the  development  of  a  range  of  special 
Europe-wide services, such as freephone services, shared revenue or premium rate 
services,  calling  card/country  direct services  and, emerging  service  areas  such  as 
shared  cost services.  This would allow goods and services to be offered  Europe-
wide on the basis of a single number, offering  the businesses using such numbers 
significant  cost savings in their marketing and advertising costs, whilst stimulating 
further  the growth in cross-border provision of goods and services and stimulating 
employment  in these sectors, often  in the Unions less favoured  regions37. It would 
lead  to  a  significant  increase  in  European  telephone  traffic  offering  potentially 
significant  cost-reductions for the telecommunications industry. 

The study for Commission also concluded that common Europe-wide access codes 
within a European numbering space would provide Europe with the vital flexibility 
to  meet  future  service  requirements  while  responding  to  a  clear  demand  from, 
today's  market.  Moreover;  that  it would provide  nascent  market  sectors  with the 
opportunity to develop regional services with a truly European identity. 

Thus,  the  establishment  of  a  European  numbering  space  would  provide  the 
flexibility  to  meet  the  future  demands  of  the  internal  market  for  special 
telecommunications services , offering  both business and consumers greater choice 
and reduced costs"  .  European service providers would benefit  from  economies of 

Under  a  study  on  non-discriminatory  access  to  numbering  resources,  ETO  investigated  issues  such  as  the 
allocation  and  rights  of  use  of  numbers,  number  ownership,  tradability  of  numbers,  non-discriminatory 
access  to directory  services  and  the allocation  of data  network  identification  codes  (DNICs/PNICs).  Another 
study  on  numbering  related  to  the  topic of user-friendliness  aimed  at defining  structured  and  logical  dialling 
arrangements  for  future  service  access  codes  across  Europe.  It  also  involved  the  harmonised  alpha-numeric 
keypad  in  Europe  to  allow  for  re-introduction  of alpha-numeric  dialling  in  the  future.  The  final  reports  will 
be  delivered  to  the  Commission  in  the  course  of  1996  and  will  contain  the  ECTRA  approved  findings  and 
proposals  as  well  as  any comments  individual  ECTRA  members may have on these  issues. 

Potential  Opportunities  Afforded  by  a  New  European  Telephony  Numbering  Space,  Final  Report,  Mary 
Ann  O'Loughlin  and  Stuart  Sharrock  marketing  consultants,  20  April  1994.  Comments  were  invited  from 
network  operators,  managed  service bureaux  and  information  service providers  throughout  Europe. 

One  example,  is  that  of  Call  Centres  located  in  one  Member  Stale,  handling  tclc-sales  from  all  over  Europe 
or offering  'help desk" services  within  the computer  and  software  industries.  More than  6000  companies  in a 
wide  range  of  industries  now  have  service  "call  centres"  to  provide  information  to  customers  (many  on  a 
pan-European  basis).  These  employ  around  130,000  Europeans  and  are  expected  lo  generate  another 
100,000  jobs  by  2000.  The  development  of  these  facilities  has  been  strongest  in  Ireland.  Source  K.PMG 
1996. 

In  principle,  pan-European  services  could  also  be  numbered  from  within  global  numbering  resources  where 
available  (eu.,  global  freephone  or  800).  In  question'here  are  the  perceived  threat  ol  US  dominance  with  a 

12 

scope and scale, which should  in turn be passed on to customers  in terms of lower 
prices and greater  innovation.  Moreover,  it would  put  European  service  providers 
in a better position to prepare themselves for global services competition and create 
a more outward-looking focus on emerging markets. 

III.3 Technological evolution: promoting  innovation 

the 

facilitate 

combination  of  different 

Numbering  must 
types  of 
telecommunications  services  based  on  a  mixture  of  technologies  and  standards, 
(such as a single subscription offering  the user mobile and fixed  network  services) 
instead of requiring a different  telephone number to be associated  with each of the 
systems.  At present,  users are allocated numbers  which are country,  network  and 
operator specific.  In the future  however,  users  may wish to have numbers  which 
are independent of network or service provider, service type, location and terminal 
equipment.  In  other  words,  users  should  have  personal  numbers  which  are 
allocated to the user rather than to the network. 

Such  personal  numbers  would  allow  a  user  to  be  contacted  in  his  or  her  office, 
home,  car  or  whilst  "roaming"  anywhere  in  Europe  or  beyond.  The  customer 
would  rarely  know  or  care  whether  the  communication  was  being  passed  via  a 
mobile,  satellite  or  fixed  network  (i.e.  the PSTN/ISDN),  but  would  benefit  from 
the ability to stay in touch, whilst being receiving service and being billed  from  a 
single point of contact. 

New  combined  technology  concepts  have  already  been  introduced  such  as  the 
"follow  me" functionality  or  are on the  horizon  such  as  the  concept  of personal 
communications  which  is  being  build  on  the  massive  growth  of  mobile  and 
personal  communications.  Given  the  ability  of  such  new  concepts  to  combine 
numbering  borders,  both  in  terms  of  different  numbers  associated  with  different 
technologies  and  in terms  of  geographical  boundaries  set  by  national  numbering 
plans into single combinations solutions, they require a unique numbering  solution 
at a regional and global level. 

III.4  Evolution  of  numbering  from 

the  customer's  perspective:  need 

for 

harmonisation 

In  the  emerging  liberalised  environment,  users  have  a  right  to  expect  that  more 
choice does not simply mean longer and more complex numbers.  Here regulatory 
intervention  may  be  justifiable  in  order  to  overcome  the  risk  that  commercial 
•  pressures  lead  to  users  facing  a  diverse  set  of  new  access  codes  and  different 
number  structures  for  identical  services,  fragmented  on  the  basis  of  national 
borders or any particular group of countries or even individual operators" . 

global  approach,  the  speed  of  implementation  of  ditTerent  solutions,  the  flexibility  to  respond  to  as  yet 
unknown  future  requirements and the possiblity to accommodate special numbers unique to Europe  Further, 
regional  and global  numbering  solutions  may  live alongside  each other  with the possibilities  for  a  graceful 
migration  from one to the other. 

39  In this  respect, conuncrcial  operators have  recently called  in  ITU-T Study Group-2  for  the allocation  of 
special  country  codes  lo  network/network  operators  lo  open  up  access  possibilities  and  allow  for 
"Telco branding*'  of their  services on  a global  level.  Apart  from  the  fact  that  this  would  conflict  with 
the  aim  of  portability  and  could  result  in  an  inefficient  utilisation  of  numbering  resources  as 
network/network  operator  codes  would  start  lo compete  with  general  sen ice  codes.  Tclco  branding 
seems  contradictory  to  basic  customer  needs  such  as  an  understandable  numbering  scheme  that 
allows  Iheni  lo  s:el  a  broad  indication  of  service  and  charge  before  they  make  ;i  call.  'The  growing 

13 

Beyond  action  to  harmonise  certain  access  codes  for  specific  services,  as  well  as 
number  structures,  both  consumers  and business should  be  able to benefit  from  so-
called  "alpha-numeric"  dialling.  This  facility,  which  was  once  common  in  Europe, 
and  which  has  taken  on a significant  role in the US  freephone  market,  allows  users 
to  make  calls on the basis  of  more easily  remembered  names  or  words,  rather  than 
numbers. 

For  alpha-numeric  dialling  to  take  off  once  again  in  Europe,  the  keypads  on 
telephone handsets  must be harmonised, so that the same letters are assigned  to the 
same  numbers  on  every  telephone.  At  présent  different  assignments  are  in  use 
within  Europe,  therefore  agreement  on  just  one  format  for  the  alpha-numeric 
keypad  would form  a first  important step40. 

III.5  European  numbering:  a continuum  between national  and  global  numbering 

global  versus  European  numbering  solutions 

Preparations  are  underway  in  the  ITU-T  to  open  global  service  codes  for  the 
Universal  International  Freephone  Service  (UIFS  or  global  freephone)  and  for 
Universal  Personal Telecommunications  (UPT). There is a tendency  to assume  that 
business  and  users  will  prefer  these  global  solutions  and  that  consequently  the 
demand  for  European-wide  numbers  will  be  of  a  much  lower  order.  The 
Commission  considers that that view is incorrect. 

Firstly,  ITU-T  Recommendations  offer  a  relatively  weak  enforcement  mechanism 
which,  when  the  competitive  impact  of  a  UIFS  becomes  fully  clear,  may  be 
insufficient  to  ensure  that  a  true  pan-European  freephone  market  emerges.  As 
such,  the UIFS  will provide merely a framework  for  commercial  agreement  where 
the  best  we  can  hope  for  are  fragmented  service  offerings  negotiated  between 
individual operators on a bilateral basis. 

tended 

Secondly,  the  extent  to  which  specific  Europe-wide  numbers  may  be  required 
should  not  be  underestimated.  The  internal  market  presents  opportunities  for 
services providers that do not exist at the national level. European  service  providers 
than  global,  market 
have 
opportunities41,  in  terms  of  information  and  entertainment  services  through  to 
product  marketing  and  promotion  to  direct  response  and  teleshopping  services  . 
Although  many  products  are  available  world-wide,  their  sales,  marketing  and 
customer  support  activities  are  usually  organised  on  a  regional  basis  for  cultural, 

specific  European, 

identify 

rather 

to 

power  of  commercial  forces 
transparency  and  a possible bypass of national  regulations. 

in  ITU-T  raises  also  fundamental  questions  about  objectivity, 

10  The harmonisation  of keypads  is currently  under discussion  in  ECTRA.  In  parallel,  ACTE  is  looking  into 
this matter.  It is thought to be unlikely that a hamioniscd keypad could be considered  to be covered  by the 
Terminal Directive 91/263 (OJ LI28/1, 23.05.91)  However, AC'l'E believes that harmonisation  is desirable 
and the matter is due to be discussed  further. 

Sec,  Potential Opportunities Afforded  by  a  New European Telephony Numbering Space,  Final Report, 
Mary Ann O'Loughlin and Stuart ShaiTock marketing consultants, 20 April  1994. 

c  Teleshopping  in  this context  means all  new  forms  of teleshopping  in  the  broad  sense  including  those 
meant by the  Council  Common  Position  of S July  1996 with a view  lo adopting  a Directive  amending 
Directive  89/552/ËEC of 3 October  1989 "Television  without  Frontiers" as well as other  new  forms of 
teleshopping  through  interactive  tclc-scrviccs 

14 

linguistic  and  logistical  reasons,  so  there  are  not  necessarily  significant  cost 
benefits  to be associated  with a global  rather  than  a regional  freephone  number.  In 
the  end,  multi-nationals  may  well  make  their  decision  based  on  an  assessment  of 
whichever  numbers  are  made  available  in  a  timely  and  consistent  manner  within 
the region  within which they operate. 

Thirdly,  global  developments  do  not  address  latent  demands  for  Europe-wide 
services  such  a premium  rate and shared  cost services. 

Fourthly  and  perhaps  most  importantly,  the pace of the  liberalisation  in the  Europe 
Union  is  progressing  more  rapidly  than  in many other  parts  of the  World.  Current 
work  in  the  ITU  must  inevitably  take  account  of  both  the  more  rapid  progress 
towards  liberalisation  in certain  countries  and  the slower  progress  in others.  It  is 
doubtful  whether  the  ITU  will  be  able  to  produce  the  type  of  open  numbering 
environment  that Europe requires to fully  accommodate the needs of the  liberalised 
sector 
.  Indeed,  such  an  environment  would  pose  significant  competitive  threats 
to national operators in those countries where liberalisation  is not so advanced.  The 
European  Union  cannot  wait  for  ITU  developments,  but  must  take  its  own 
initiatives  in this field. 

a European  dimension  to national  numbering 

As  Member  States  prepare  for  a competitive  environment  and  also  respond  to  the 
tremendous  growth  in the  telecommunications  lines  and  traffic,  they  are  preparing 
(or  in  some  cases  have  already  undertaken)  extensive  changes  to  their  national 
numbering  schemes  to cope  with future  demands.  Urgent  agreement  on  the  policy 
objectives  and  direction  for  European  numbering  is  of  critical  importance  if  these 
national  decisions  are to take into account the needs  of the internal  market  and  the 
framework  provided by the Community's  regulatory policy. The risk for  businesses 
and  users  is  that  national  numbering  schemes  will need  change  again,  if  reform  is 
planned  in isolation, leading to additional costs and  dissatisfaction. 

some  control  over  numbering  at the European  level is  imperative 

Although  the Commission  is supportive of global numbering  efforts  and  recognises 
that  these  global  numbering  efforts  may  provide  numbering  solutions  for  global 
businesses  such  as  Internet,  it takes  the position  that  in order  to  accommodate  the 
requirements  of  both  a  liberalised  market  and  the  development  of  pan-European 
services,  not only must  a common  strategy  for  numbering  in Europe  be  developed, 
but  the  administration  and  management  of certain  aspects  of  that  strategy  must  be 
co-ordinated  at a European  level. 

Here,  the  current  discussions  in  ITU-T  are  not  encouraging.  Discussions  on 
Recommendation  E. 190 (governing the criteria for  allocation  of country  codes)  and 
Recommendation  E. 164 (procedures  and  criteria  for  country  code  allocation)  have 
so  far  not  resulted  in  an  "open"  mechanism  which  would  allow  the  set  up  of 
regional  (read  European)  numbering  entities. 

The  Commission  believes  that  European  Administrations  and  market  players 
should  recognise  the  value  of  a  regional  numbering  scheme  and  ensure  that  new 
ITU-T  proposals  do not exclude such  a development possibility 

Note,  lor  instance,  thai  III  J-T  is  not  vet  close  to ameeine  on  the  introduction  of  carrier  selection  mechanisms 

15 

Further,  with  the  rapidly  growing  importance  of  computer  network  services  such 
as  Internet  and  other  innovative  multi-media  and  on-line  services,  any  long  term 
European  approach  to  numbering  and  addressing  should  be  extended  into  that 
domain  as well. 

IV 

PROPOSALS  FOR  ACTION 

A clear policy on numbering at a European  Union  level will need  to respond  to the  future 
needs  of  the  citizens  and  businesses  in  the  Union.  Moreover,  it  will  need  to  create  the 
legal certainty  needed for  investment  and  innovation,  whilst providing  safeguards for  a 
fair  and  open  competitive  environment  and  will  need  to ensure  that  the  internal  market 
for  special  lelecommunications  services  such  as  Europe-wide  freephone  can  and  does 
emerge on the basis of easy, user-friendly  access across Europe. 

The  Commission  does  not  believe  that,  in  the  absence  of  a  clear  and  predictable 
regulatory  framework,  market  forces  on  their  own  are  enough  to  guarantee  the 
emergence  of  an open  numbering  environment.  At the  same  time,  the  sufficiency  of  the 
current  ECTRA44  and  ITU-T  mechanisms  to  create  an  open  numbering  environment, 
capable  of  accommodating  the  needs  of  the  post-1998  liberalised  market  within  the 
necessary timescale is in question. 

The  Commission  seeks  the  views  of  the  sector  on  this.  Comments  are  invited  on 
both  the general  approach  and  on the specific  elements  detailed  hereafter. 

IV. 1 Ensuring  effective  competition 

Carrier  selection 

The  implementation  of  full  competition  will  lead  to  the  replacement  of  current  traffic 
handling  arrangements  based  on  correspondent  relationships  between  national  network 
operators  by  new  relationships  between  specialised  regional  and  global  long-distance 
operators,  with  lower  costs  due  to  higher  traffic  volumes  and  strategic  partnerships. 
Such  operators  will  be  entitled  to  sufficient  access  numbers  in  each  Member  State 
from  1 January  1998 on. This  should  result  in cost-savings  which  can  be passed  on  to 
customers  in  the  form  of  lower  tariffs.  Simple  dialling  codes  to  access  those  long 
distance carriers are essential  if users are to benefit  from  these lower prices. 

Moreover,  by  encouraging  users  to  choose  between  long-distance  carriers,  the 
development  of  regional  operators  within  Europe  will  be  encouraged,  potentially 
offering  further  improvements  in  price  and  quality  of  service,  and  at  the  same  time, 
promoting services  with a global  reach. 

The  introduction  of  long-distance  carrier  selection  potentially  offers  large  direct  and 
indirect  benefits  to consumers, business  and the telecommunications  industry.  The  cost 
of introducing carrier selection  is relatively small  if compared  with  the benefits  that can 

Whilst  ECTRA  and  the  ETO  has  provided  a  vital  forum  for  pan-European  discussion  of  numbering  issues, 
as  well as an  increasing centre of numbering expertise,  ECTRA  has  no mechanism  with  which  to enforce  the 
implementation  of  the  decisions  which  its  members  take,  nor  a  judicial  body  which  can  interpret  the 
resulting  commitments  taken  in  the case of disputes  as  to their  scope  of application.  Moreoxer,  the  majority 
of ECTRA  members  are in a very  premature  stage of their  liberalisation  programmes  and  have  indicated  that 
they arc not yet ready  to open  their  markets, and  hence, unlikely  to need or  welcome  the type of relonn  which 
the  internal  market  and  the goal  of full  liberalisation  now  lequues 

be  derived.  Carrier  selection  can  be  introduced  through  a  gradual  staged  approach. 
Annex  II sets out  three main options: 

16 

-  The default  long-distance  carriers  is determined  by the  local  access  provider  (often 
the same  company), with the possibility of the user over-riding  that  choice on  a call 
by call  basis. 

-  Carrier  pre-selection by the user with the possibility of a call by call over-ride. 

-  Assignment  of  carrier  selection  codes  for  all  calls  (including  to  access  the  long 
distance  network  of  the  local  carrier).  This  last  option  would  actually  make 
dialling  more  complex for  users and therefore does  not seem  desirable. 

Estimates  suggest  that  the  introduction  of  carrier  selection  could  substantially  assist 
users  to  benefit  from  annual  savings  of  between  20  and  25  Billion  ECU  on  long 
distance  call  charges  in  the  Community  which  competition  is  bringing  about45. 
Estimates  of  the  cost  of  these  changes  to  the  télécoms  industry  vary,  but  the 
Commission  believes that a figure of around 2 Billion ECU over a ten year  period  may 
be a reasonable  estimate. 

Carrier  selection  is  essential,  if fair  and  non-discriminatory  competitive  conditions  are 
to  be  created,  in  line  with  the  Community's  regulatory  framework.  Technical  and 
organisational  measures  will  be  required  to  ensure  equal  access  is  implemented  in 
exchanges,  whilst the assignment and management of carrier identifications  codes  must 
be  carried  out  at a European  level  and will  require  inter  alia  a European  management 
body. 

Member  States  should  introduce  carrier  selection,  starting  in  1998  with  a 
solution where  the local  operator sets the default  long-distance  carrier with  a 
carrier  selection  override  by  the  customer  and  moving  towards  a  pre 
selection  by the user with override by the year 2000. 

A range of regulatory  issues stand out, for  instance, on how to implement  pre-selection 
and  who has  a right to or qualifies  for pre-selection, given that short  codes  are  a  scarce 
resource.  Another  issue  is  whether  an obligation  to provide  pre-selection  should  apply 
to  all operators  or only  to those  with  "market  power";  and  for  international  traffic  only 
or  for  all  long-distance  traffic.  Billing  is  another  equally  significant 
issue  with 
significant  customer  implications.  The  Commission  seeks  views  and  opinions  on 
these  and  any  other  issues  related  to  the  introduction  of  carrier  selection  in  the 
Union. 

Number  portability 

Subscribers  attach  a high  value to their number.  Polls have indicated  that some  80  - 90 
percent  of  business  customers  would  not  consider  switching  operators  if  they  can  not 
take their  number  with  them. 

Number  portability  allows  subscribers  to  retain  their  number  when  they  decide  to 
switch  operators.  Number  portability  thus  is  an  important  pre-requisite,  if  users  are  to 
be  able  to  choose  from  whom  they  obtain  telecommunications  services  and  if 

Such  estimates  arc  based  on  decreases  of between  40 and  50%  in  current  tariff  rales,  whilst  resulting  traffic 
growth  -  judging  by  experience  in  markets  such  as  the  USA  or  Finland  -  could  substantially  offset  the 
potential  loss of  revenue  lo operators. 

17 

competition  is to become genuinely  effective.  As identified  in Annex III below,  number 
portability  can  in fact  relate to three issues : 

-  Location  portability  :  the  ability  of  the  user  to  keep  a  number,  when  changing 

location  either  in same exchange area or any where in a Member  State ; 

- 

- 

Service  portability 
:  the  ability  to  keep  a  number  when  changing  to  a  different 
service  in  the  same  service  area,  (e.g.  the  user  keeps  his  or  her  PSTN  number 
when  taking a subscription  to an ISDN service,  though  it is actually  provided  via  a 
different  exchange in the same areas), and -

Sen>ice provider  portability 
changing operators at the same location, or within the same exchange  area. 

:  the  ability  for  a  user  to  keep  a  number  when 

Within  the  European  Union  a  first  priority  must  be  to  promote  service  provider 
portability  within  the  local  calling  area.  As  indicated  in  Annex  ITJ, the  economic  and 
customer  benefits  derived  from  the  introduction  of number  portability  in the  local  loop 
far outweigh  the costs. 

Member  States  should  ensure  that,  where  technical  restrictions  would  still 
prohibit  local  loop  operator  portability,  all  necessary  measures  are  taken  to 
remove  these  as soon  as  possible,  and  at the latest that number  portability  is 
available  in major centres of population  by  1 January 2000 

. 

Analysis  also  shows  that  number  portability  for  mobile  services  and  for  non-
geographical  services  such  as  freephone  (e.g.  to  allow  customers  to  take  their  golden 
numbers)  should  be considered  as a matter of urgency  and  is critical  for  creating  equal 
conditions  for  access  and opportunity for new entrants. 

Member  States  should  ensure  that  any  technical  restrictions  that  still 
prohibit  number  portability  for  mobile  and  personal  communications 
services  as  well  as  non-geographic  services  are  removed  as  quickly  as 
possible,  and  at  the  latest  that  number  portability  is  available  by  1  January 
2000. 

The  Commission  invites  comments  on the importance  of number  portability  and 
the  desired  timing  for  its  introduction  for  the  different  categories  of  services,  as 
well  as  on  the  impact  that  such  a  requirement  might  have  on  entry  into  a 
competitive  market.  The  Commission  also  invites  comments  on  the  allocation  of 
costs involved  (administrative, set up and  additional  conveyance  costs).  Further, 
comments  are sought on the long term  solution  and  any  migration  strategies  that 
could  be  followed. 

Restructuring  national  numbering  schemes 

Today,  national  numbering  schemes  which  were conceived  in a monopoly  environment 
often  limit  the  possibilities  for  new market  entrants, both  on the local  or  retail  level  and 
on  the  carrier/service  provider  level.  Competition  in local  operation  or  service  retailing 

The proposed  Directive on  interconnection  (Common  Position  EC No 34/96, Oi  96/C  220/03,  29.7.96) 
requires  this  measure  to  be  realised  before  1  January  2003.  In  the  view  of  the  accelerating 
liberalisation  process  and  the  recognition  of  number  portability  as  a  key  factor  for  opening  up  local 
markets  to competition,  the  need  of  anticipating  that  date  must  be  seriously  considered.  This  Green 
Paper  requests comments  from  the sector. 

18 

requires  fair  and  equal  access  to  end-user  numbers  which  may  already  have  a  high 
level  of  consumer  recognition.  Services  with  well-known  "branding",  notably  national 
freephone,  shared  cost  and  premium  rate  services  but  also  mobile  services  should  be 
made  available to all competing operators  and service providers.  This  principle of  open 
access  is in addition  to the issue of equal access outlined  above. 

In  view  of  the  1998  date  for  full  liberalisation  of  telecommunications  services  and  the 
pivotal  role  that  national  numbering  schemes  play  in  enabling  competition,  there  is  an 
urgent  need  to open  up national  numbering  schemes  to competition.  It  is expected  that 
this will  require adaptation of most if not all national numbering  schemes. 

The  Commission's  approach  to  numbering  encompasses  a  phased  approach. 
In  the  first  stage,  and  before  1  July  1997,  except  as  regards  those  Member 
States which were  granted  additional  implementation  periods  under  Directive 
96/19/EC,  adequate  numbers  must  be  made  available  to  allow  in  particular 
new  entrants  to  provide  voice  telephony  to  the  public47.  In  a second  stage,  the 
national  schemes  should  be  reviewed  towards  further  integration  of  the 
national  numbering  plans. 

Independently  from  the adoption  of the national  numbering  schemes  in order  to  ensure 
that  adequate  numbers  are  available  by  1  July  1997,  the  Commission  will  produce 
common  guidelines,  on the basis of work  done by ETO,  for  use  by  national  regulatory 
authorities  with  a  view  to  ensure  the  further  development  of  the  national  numbering 
schemes  in  a  balanced  manner  across  the  EU  and  to  build-in  a  convergence  aim 
towards  a more unified  numbering  environment48. 

After  the  completion  of  the  technical  work  by  ETO,  Member  States  should 
start  adapting  their  national  numbering  schemes  according  to  the  agreed 
common  guidelines  and  complete  this  process  by  the  year  2000.  In  the 
meantime  and  in  order  not  to  jeopardise  a  future  European  approach, 
Member  States should  not allocate numbers  beyond  the length  of  13 digits49. 

The  Commission  invites  comments, on  the  characteristics  desirable  for  the 
national  numbering  schemes  (e.g.  dialling  parity,  flexibility  to  meet  future  demand, 
facilitate  market  development  and  innovation,  user-friendliness,  options  for  branding 
and  supply  of  "golden  numbers",  perceived  relationship  between  number  and 
geographic  location, number structure and need for  consistency  of number  length,  local 
dialling  and  tariffing  information),  and  on  the  relative  importance  of  the  various 
characteristics. 

47 

Commission  Directive  96/19/EC  (OJ  L  74/13,  22.3.96)  requires  that  Member  States  ensure  the 
availability  of  adequate  numbers  for  all  lelecommunications  services  by  1 July  1997 

Convergence  is  required  for  example  for  short  codes  e.g.  canicr  selection  codes  at  the  l-.uropean  level. 
Moreover,  consideration  should  be  given  lo  the  need  for  hannonising  the  access  codes  to  special  services 
such  as  freephone  (e.g.  800),  premium  rale  (e.g.  900)  and  personal  communications  services  and  UPT  (e.g. 
500 or  700). 

the numlvr  lenuth  includes  the counliy  code but  excludes  the  international  prelix  or canicr  selection  prchx 

19 

IV.2 Facilitating  a single  market 

Establishment  of a European  Telephony Numbering Space (ETNS) 

50 

A Universal  International  Freephone  Service  (UIFS)  has  been  agreed  in the  ITU-T 
and will be introduced  in  1997  . However,  the Commission  does not believe that the 
UIFS  can  be considered  the platform  that will create a seamless  Europe-wide blanket 
for special services. Firstly, under ITU rules, service offerings  under the UIFS will be 
subject  to commercial negotiation  between individual operators and are likely to result 
in fragmented  service offerings  Secondly,  the UTFS does not address  any other needs 
of the internal market than  freephone. 

The establishment of an ETNS, as was recently decided upon by ECTRA, would allow 
for the implementation of special pan-European services such as freephone,  shared cost 
and  shared  revenue  services  numbered  from  a  Europe-wide  numbering  space. 
Moreover,  the  emergence  of  Personal  Communications  Services  (PCS)  could  be 
facilitated  by  the  availability  of  a  European  numbering  solution52  to  support  the 
combination  of  different  services  and  technologies  via  a single  service  platform  (see 
Annex IV). 

A  well  developed  internal  market  for  special  services  would  create  new  business 
opportunities  within  telecommunications,  develop  the  internal  market  for  goods  and 
services and stimulate employment.  As indicated in Annex I strong net-benefits  can be 
derived  from  the  introduction  of  a pan-European  numbering  environment.  Estimates 
prepared  for  the  European  Commission53  suggest  on  the  basis  of  experience  in  the 
USA that the market for  freephone  and shared  revenue services could be as much  as 
4.6  Billion  ECU by 2003  (compared  with  a freephone  market  today  of around  half a 
Billion ECU) where introduction  cost  is believed  to be small  . The Commission  also 

50 

51 

Freephone  allows  the  freephone  operator  to  establish  a  direct  relationship  between  himself  and  the 
customer.  Within  a  global  scheme  such  as  a  UIFS,  the  customer  may  be  anywhere  in  the  World.  The 
freephone  operator  collects  the  charges  from  the  organisation  using  the  freephone  number.  This  control 
over  the  revenue  stream  gives  the  freephone  operator  a  strong  bargaining  position  in' relation  to  local 
network  operators  in the countries  where the calls  originated. 

The  freephone  market  has  developed  much  further  in North  America  than  in  Europe.  In the  US,  freephone 
is  a  US$  10  billion  market,  the  European  market  is  only  a  few  percent  of  that.  Estimates  suggest  that 
around  40%  of  peak  rate  long-distance  traffic  in  the  United  States  is  attributable  to  'toll-free'  calls,  in 
comparison  with  20% in Canada  and  less  than  1% in  Europe.  One  reason  for  the  success  of  freephone  in 
the  United  States  has  been  the  requirement  for  freephone  numbers  to-be  fully  ponabile  since  1993.  It  is 
commonly  beleivcd  that  this global  freephone  platform  offers  great commercial  opportunities  to operators  in 
markets  where competition  is well developed  and  scale-economies  exist such as  in the US. 

The  recently  created  UMTS  Forum  will  address  the numbering  of PCS. The  issue  is  further  supported  by  an 
ETO  study  that  has  been  contracted  under  the  framework  contract  with  the Commission.  It is  proposed  lhat, 
in  line  with  the current  agenda  of the UMTS  Forum  and  after  completion  of the HIT) study  on the  numbering 
of  PCS, the Commission  will come  by the end of  1997  with  proposals  for  a regulatory  framework  for  UMTS 
which  will,  besides  important  licensing  and  frequency  matters,  have  to  include  proposals  for  the  numbering 
of  PCS  m  Europe. 

The  harmonised  European  telephone  services  market:  the  economic  slakes  and  the  need  for  numbering 
solutions,  Sagalcl,  Paris, March  1996; and  Potential  Opportunities  Afforded  bv a At'u  European  Telephony 
Numbering  Space.  Mary  Ann  O'Loughlin  and  Stuart  Sharrock  marketing  consultants.  .0  April  1994. 

see  lor  instance  ETNO  common  position  on  the  ECTRA  exercise  ol  consultation  legarding  European 
nuinberinv..  HTN(  ).  IX  March  l')<;5 

believes  that  a  vibrant  home  market  will  allow  European  businesses  to  increase  their 
share of the emerging  global  market  for  telecommunications  services. 

20 

Member  States  should  take  the  necessary  steps  to  ensure  that  a  European 
Telephony  Numbering  Space  (ETNS)  is  implemented  following  the  completion 
of current  ECTRA  and  ETSI work  and  at the latest  by  1 January  1998. 

Rapid  creation  of  an  ETNS  could  require  adoption  of  a Resolution  by  the  Council  and 
the European  Parliament  inviting  the Member  States  to support,  inter  alia,  a request  to 
the ITU  for  the allocation  a regional  code number. 

The  Commission  invites  comments  on  the  necessity  and  desired  characteristics 
of  the  European  Telephony  Numbering  Space  and  on  the  timetable  of  its 
introduction. 

Private  and  corporate  networks 

The  development  of  the  market  will  lead  increasingly  to  so-called  network-network 
attachment  scenario's,  where  private  networks  (e.g.  Corporate  Networks,  VPNs, 
LANs,  Campus  networks,  CitylnformationHighways)  are  connected  to  the  public 
network  base with new service features  introduced  such as Direct-Dialling-In (DDI). 

These  networks  also  serve  an  important  economic  function.  A  recent  study  for  the 
Commission55  argued  that  it  is  critical  to  develop  corporate  networks  as  efficient 
telecommunications  solutions  for  the  Small  and  Medium  size  Enterprises  (SMEs)  as 
they  are the  lifeblood  of the European  economy  with  a total  of  12.9  million  businesses 
and  about  60  million  people  employed56.  SMEs  should  be  able  to  easily  establish 
corporate  networks  and  closed  user  groups  with pan-European  or  even  global  reach  to 
meet their  evolving business  requirements. 

The  handling  of  calls  to  and  from  private  or  corporate  networks  may  be  facilitated  by 
special  service  codes  to  indicate  to  the  public  network  that  the  call  needs  special 
treatment  and  routing.  Under  the framework  contract  with the Commission,  ETO  will, 
with  the  technical  support  of ETSI  and  taking  into  account  the  requirements  of  global 
corporate  networks,  carry  out  a  study  on  the  numbering  requirements  of  private  and 
corporate  networks  and  -if  a  need  is  found-  propose  harmonised  procedures  for  the 
Europe-wide  access  to private networks. 

The  Commission  seeks  commenis  on  the  importance  of  private  and  corporate 
networks  and  the need  to develop  European  solutions. 

55 

The  harmonised  luiropean  telephone  services  market:  the  economic  stakes  and  the  need  for  numbering 
solutions,  Sagalel,  Paris,  March  1996 

Compare  this  with  the  l.V"K>()  large  luiropean  businesses  (>500  people)  employing  in  total  15  million 
people.  These  businesses  do  often  have  elTieicni  corporate  networks  provideil  by  the  dominant  and  global 
telecommunications  operators. 

Need for  a new  structure  for  regulation  and  administration  of  numbers 

21 

Control  of  the  numbering  environment  at  the European  level  involves  the  development 
of  an  appropriate  administrative  structure  with  at  least  the  following  functions  being 
carried  out  a European  level : 

- 

- 

policy  making, 

dispute  resolution, 

-  maintenance of number  data bases, and  . 

- 

processing  applications  for pan-European  numbers. 

Bearing  in mind the character of numbers  as a scarce national  or  regional  resource,  any 
approach  should  accept the possibility of a commercial  value being placed on  particular 
numbering  resources,  as a means of encouraging  their efficient  use. 

Several  administrative  models  can  be  envisaged  such  as  a  single  regulatory  authority 
handling  all  functions  or a model based  around  either  a co-ordinating  role  assigned  to 
a  Numbering  Committee,  made  up  of  national  regulatory  authorities  or  industry 
representatives  (determining  policy  and  resolving  disputes  with  a  pan-European 
dimension)  while  a separate  administrator  would  maintain  administrative  number  data 
bases  and process  applications  for numbers. 

With  the  growing  importance  of European  numbering  solutions, Europe  must  urgently 
address  the  administrative  model  it  wants  to  put  in  place  to  guide  policy  and  tackle 
basic  regulatory  issues.  In  view  of the  important  role of numbering,  Europe  must  also 
ensure that European  interests  are adequately  promoted  in ITU-T. 

TheEuropean  Union, in conjunction  with  ECTRA,  should  urgently  develop  and 
propose  a  new  structure  for  regulation  and  administration  of  numbers  in 
Europe  by  1 January  1998 at the latest. 

The Commission  invites  comments  to the proposal  for  the development  of such  a 
new  structure  for  the  regulation  and  adminstration  of  number  and  its  proposed 
timetable. 

IV.3 Adapting  to the  Information  Society 

Long  term  European  numbering  plan 

The long-term  development of European  numbering  has  been  the subject  of  a study  for 
the  Commission58.  The  study  looked  at  ways  for  progressing  towards  a  more  unified 
numbering  environment  for  Europe.  On  the  basis  of  this  study  and  on-going  work  in 

A study  carried  out  for  the Commission  showed  a general  consensus  amongst  service  providers  and  network 
operators  that  the  administration  of  numbers  in  a  European  numbering  environment  should  be  the 
responsibility  oi'  an  independent  structure  which  must  be  located  in  Europe.  Many  players  consulted 
emphasised  that  European  concerns  and  commercial  requirements  differ  from  those  o[ the  USA  and  some 
expressed  openly  their  fears  that  an  inappropriate  and  under  resourced  administrative  structure  could  give 
their  US compelitois  an  unfair  advantage. 

Securing  a stable  and  long  term  approach  to luiropean  numbering, Coopers  it  Eybraiui.  April  1995 

ECTRA/ETO"v,  the  Commission  has  prepared  a  reference  scenario  for  progression 
towards an open and unified numbering environment (see Annex V). 

22 

When  implemented,  this  new  numbering  environment  would  provide  the  necessary 
numbering capacity for new services and expected future demand. It would provide for 
harmonised  access  to  pan-European  services  such  as  freephone,  premium  rate  and 
shared  cost  services  and  personal  communications  services.  It-  would  provide 
harmonised  prefixes  and  short  codes  for  services  such  as  carrier  selection,  VPN 
services and directory enquiry services. It would also provide a clear European identity 
when calling from outside Europe, for example: 

European 
code 

country 
code 

national destination or service code 

and subscriber number (maximum) 

3 

49 

XXX.XXX.XXX.XXX 

European players, through co-ordination in the ENF, should line up their contributions 
to ITU-T with the European strategic plan and work towards the necessary  degree of 
control of the numbering environment at the European level. 

A long-term strategic plan for numbering in Europe should be developed  by 1 
January  1998; this  should  include  the  creation  of  a  European  country  code 
("3-XX) with transfer of responsibility of administration and management of 
the  last  two  digits  to  Europe  and  a  unified  numbering  environment  by  the 
year 2000. 

" 

The Commission invites comments on the necessity and desired  characteristics 
of such a strategic plan and thcproposed timetable for its development. 

Naming in the Internet 

The rapid  growth  of the Internet has produced  strains  in the system  for  allocation  of 
Internet names and addresses. The Internet IP address  (usually expressed  in the  form 
158.169.50.11) has a domain name which refers to it, and which is intended to be more 
meaningful  to users (in the form "europe.eu.int"). 

These  names  and  addresses  were  originally  allocated  by  a  university  or  academic 
institution,  normally one in each country. In some countries, these activities have now 
been transferred  to private companies charging fees for their services.  Although  many 
"top  level" domain names are national such as "fr"  for France, ".de"  for  Germany  or 
",uk" for  the United Kingdom60, some domain names, of which the most  important  is 
the ".com" domain, have become global in practice61 and are administered  by the US 
svstem. 

ETO has  recently  been  given  study  contracts  under  the  framework  contract  with  the Commission  to assist  in 
the  definition  and  elaboration  of  a  long  tenu  luiropean  numbering  plan  (European  numbering  strategy  and 
transition  plan,  potential  for harmonisation  of short codes and  for  whal services). 

domain  names  refer  cither  to  Ihc  counlr)'  from  whicii  ihc  service  is  originated  (following  the  ISO  3166 
standard)  or  lo the specific  nature oflhc  service 

«I 

international  top  level  domain  thai  can  be  used  by  anyone  in  the  world.  As  o\' 
'.com""  is  a  non-geographic 
June  1V)%.  non-US  entities  account  for  about  7\00O  ol"  the  250,000  international  top  level  domain 

23 

With  the growth  of the commercial  use of the Internet,  value has  become  attached  to 
the  domain  name,  because  of  its  memorability,  and  disputes  have  arisen  between 
businesses claiming the same name. 

A series of issues have therefore been raised: 

-  managerial  issues  where some disquiet  has been  expressed  at the  fact  that  some of 
the most significant  global domains are administered by a private company in the US; 

- principles  of allocation  are regarded  as lacking transparency  and the mechanism  for 

resolving conflicts  is unsatisfactory  ; 

-  on  the  need  to  introduce  further  geographical  or  territorial  components  to  domain 

name space such as ".eu". 

The use of trade-marks,  which  are geographical  and limited to a particularly  trade, in 
the naming system and the fact that domain names may be global and are not inherently 
linked  to  a  particular  commercial  activity,  means  that  a  simple  application  of  the 
principles of trade-mark law may not resolve all the issues63. 

The  Commission  invites  comments  on the scope  for  regulatory  involvement  in 
issues  of  Internet  naming  and  addressing,  and if so what should  be done  at  the 
level of the European Union. 

Consideration  should  be  given  to  the  situation  with  regard  to  Internet  naming 
and  addressing  in  the  Member  States  and,  if  necessary,  measures  proposed  to 
safeguard  their fair and non-discriminatory allocation. 

Europe's numbering environment must also be able to cope with the growth of new and 
innovative multi-media  and on-line services which are emerging  as a key factor  in the 
Information  Society.  In general, the framework  set out above is likely to be  adequate 
with regard to ensuring the availability of numbers, but consideration  is being given in 
some  Member  States  to  the  possible  allocation  of  specific  access  codes  to  identify 
particular groups of services.  This may be an important means of providing  consumer 
and pricing information.  Developments at a, national level and the views of  interested 
parties will be noted* in reviewing the need for further action. 

For the long-term development of numbering and addressing, the interdependency with 
E.164 based telephone numbers and naming and addressing schemes based on X.400 
or Internet should be considered  and transition  mechanisms towards  a more integrated 
advanced telephone-network-addressing scenario be studied. The Commission invites 
views on how numbering  and addressing  policy should  evolve  to prepare  for the 
Information  Society. 

registrations  - and  their  relative percentage  is rising.  What  is going to happen  when  more  non-US  companies 
want  in and  start  waving  their national  trademarks  too? 

Internet  Domain  Names:  Whose  Domain 
hit p://\vw\v.itu.ch/inlreg/dns. html 

Is  This?,  Robert  Shaw.  ITU,  Geneva.  Switzerland,  see 

IXi  XV  recently  launched  a  qucstionaire  on  "Industrial  Property  in  the  Information  Society"'  The  réponses 
arc awaited  lor  the  end  of  November  1996.  Proper  follow  up actions  will  be  decided  upon  depending  on  the 
outcome  of the  qucstiomaic 

<>2 

M 

24 

In order  to achieve  these objectives  the Commission  proposes  the following  targets: 

SUMMARY  OF  PROPOSALS  FOR ACTION 

From  1 January  1998 

1. 

2. 

3. 

4. 

5. 

The  implementation  of carrier selection  (i.e. users are offered  a simple, non 
discriminatory  mechanism  enabling them to select the carrier of their choice  on a call 
by call  basis). 

The  implementation  as soon  as possible  of number  portability for the  local  loop 
and, at the  latest by  1 January  2000  (i.e. allowing  users  in all major centres  of 
population  to keep their telephone  number  at a particular  location when changing  to 
another  operator  or service  provider). 

The  promotion  of action at a national  level to  open up and to ensure  the  convergence 
of  national  number  plans including the harmonisation  of specific access codes  and 
the adoption  of a common  standard for keypads  supporting  alpha-numeric  dialling (i.e. 
allowing  users  to 'dial'  names  instead of numbers, e.g. 'FLOWERS' for a florist). 

The  implementation  of a European  Telephony  Numbering  Space  (i.e. the 
implementation  of a common  numbering  scheme and common  access  codes  for 
special  pan-European  services  : freephone, premium  rate and shared cost calls, and, 
if needed, for  personal communications  services). 

The  establishment  of a common  framework  for the  regulation  and  administration 
of  a common  European  numbering  scheme  (including the allocation  of  European 
service  access  codes and carrier  selection codes, as well as the promotion  of the 
Community's  interest  in international  numbering fora). 

6. 

The  review  of the issues  associated with  naming and addressing  in  the context  of 
the  Internet  to consider the  need, if any, of regulatory action. 

From  1 January  2000 

7. 

8. 

The  implementation  of carrier  pre-selection  (i.e. allowing  users  a simple,  non 
discriminatory  mechanism  enabling  them to pre-select the carrier  of their choice on a 
permanent  or default  basis). 

The  extension  of  number  portability for  users of mobile  and  personal 
communications  networks  as well  as for  users of special  services  (e.g. allowing 
users to  retain valuable  numbers  for freephone  or personal communications  services), 
taking  into  account the state of network  development  and the level of demand. 

From  2000  onwards 

9. 

The  implementation  of a long-term  numbering  plan, involving the creation of a 
European  country code  ("3-XX)  with the administration  and management  of the  code 
transferred to the  European  level. 

Comments  are  invited on each of these  proposed measures,  as well  as the  proposed 
timetable. 

CONCLUSIONS 

25 

The objectives  of  competition  and  the development  of pan-European  services  and trans-
European networks impact directly on the telecommunications numbering policy. 

Present numbering schemes have essentially developed in isolation and inherently lack the 
flexibility  to  accommodate  the  liberalisation  of  the  market  by  1998.  The  fragmentation 
along  national  numbering  schemes  also  poses  significant  hindrances  to  the  further 
development  of personal  communications and continues to be a psychological  barrier  for 
the creation of a single market for telecommunications services. 

A convergent European approach towards a unified  numbering scheme will benefit  users, 
allowing them to taste the real fruits of the Community's liberalisation programme and can 
become an important symbol of our common European identity. 

Further,  single  Europe-wide  numbers  will benefit  European  enterprises  by  creating  new 
pan-European 
telecommunication"  services,  stimulating  the  growth  in  cross-border 
provision  of  goods  and  services  and  employment  in these  sectors,  and giving  European 
enterprises better opportunities to take advantage of the Information Society. 

Policy  makers  today  have  an  exceptional  chance  to  prepare  Europe's  numbering 
environment  for  the future,  but they  can only  be successful  if they  take on a long-
term view in the broad  political context: This requires them  to start  the process of 
moving  towards  an  open  and  unified  numbering  environment  that  enables 
competition,  promotes  the  emergence  of  a  single  dynamic  and 
innovative 
telecommunications  market  and responds to the need  for  harmonisation  of  future 
dialling arrangements in an increasingly complex telecommunications environment. 

This Green Paper  is intended to launch an active discussion  involving the Council  of the 
European  Union  and the European Parliament; the Economic  and  Social  Committee  and 
the Committee  of the Regions; the ad-hoc high level Committee  of National  Regulatory 
Authorities;  consumers  and  business  users;  fixed  and  mobile  network  operators,  and 
service providers;  manufacturers  of equipment;  together  with  the trade  unions  and other 
organisations representing the social interests in the sector. Comments  and  opinions are 
invited  on  all  the  positions  set  out  in  this  Green  Paper  and,  in  particular,  on  the 
proposed targets established in the table above. 

On  the basis  of  the  Consultation  political  positions  will be  developed.  The  Commission 
will forward  those to the Council and the European Parliament. 

Comments should be sent to the European Commission, DG XIII A/1, Rue de la Loi 200, 
B-1049  Brussels  to the attention  of Mr. de Cockborne (fax  +32  2 2968391)  at the latest 
to: 
by  Friday  21  February  1997.  Comments  may  also  be  sent  by  e-mail 
numbering@bxl.dgl3.cec.be  with  reference  to  "Numbering  Green  Paper"  (in  format 
Word for Windows or Wordperfect). 

ANNEX  I:  COMMENTS  ON  THE  ECTRA  STRATEGIC  OPTIONS  FOR  NUMBERING  AND 
ANALYSIS  OF  THE  COST-BENEFITS 

26 

ECTRA defined strategic options 

As indicated above, ECTRA defined  four options for a European strategy to numbering64, 
which could constitute steps in an evolutionary approach towards a long-term numbering 
strategy in Europe. 

Option  1 comprises  a continuation of the present situation and only be reactive to market 
forces or ITU developments. 

Option 2 implements  a European Telephony Numbering  Space (ETNS) for  special  pan-
European  services  such  as  freephone,  premium  rate  or  shared  cost  services  without 
making  changes  to  country  codes.  (Its  implementation  was  initially  foreseen  via  the 
allocation of a virtual country code by ITU65). 

Option  3 establishes  a consistent  set of three-digit  country codes  for European  countries 
(e.g. 332 for  Belgium)  and can be realised  in  1997 when the new international  standard 
that  controls  the  maximum  length  of  telephone  numbers  comes  into  effect.  Option  3 
could: 

-  provide the  medium-term  ability to manage country code resources  at the European 

level (independently from ITU), 

-  give  Europe  a clear  numbering  identity ("3"),  comparable  with the  "1"  found  in the 

North American Numbering Plan, and 

- 

create significant  empty space for Europe, while freeing  50 country codes to be used 
as  extra  geographical  codes  for  certain  countries  with  high  demand,  as  well  as  for 
additional non-geographic service codes 

Under  Option  3  country  codes  starting  with  "4" would  be  relinquished.  This  would 
release "4XX" to meet demand elsewhere in the World. 

Option  4  would  establish  a single  digit  country  code for  Europe  linked  to  an open  and 
unified  European  numbering  scheme  with  which  national  schemes  would  gradually  be 
fully  integrated.  Option 4 would  again act as symbol of Europe's unique identity,  whilst 
facilitating  competition  through  short  dialling  for  carrier  services  and  the  take  off  of 
personal communications services 

analysis of the strategic options 

As  indicated  above, the consultation  on these four  Options  showed  that  Option  1 was 
widely  rejected  and  there  was  support  for  rapid  progress  on  Option  2 via  a number  of 
parallel  actions  (i.e.  through  requesting  ITU  for  a  virtual  country  code  and  exploring 
further  the possibilities  of using  national  numbering  ranges  and/or  numbering  resources 

Strategic options  for  numbering of telccoininunications  services  in Europe.  HCTRA  PI  N. 27 July  1994 

CounliA'  code  38X  has  been  sel  aside  and  marked  unavailable  until  mid-1997  pending  further  studies  in 
lùiropc on  the set  up  of an  HTNS. 

Report  on  the  consultation  on  strategic  options  lor  nuinbciing  of  telecommunications  services  in  Europe,  by 
EXTRA  IT  N, draft  10 July  1995 

27 

made available  for  global  service  applications  such  as global  800).  This  view  was  put 
forward,  in  particular,  by  ETNO  and  supported  by  ETSI.  Incumbent  operators  further 
suggested  that  further  opening  of  any  pan-European  services  should  be  a  matter  for 
commercial agreement between operators involved. 

At  the  same  time,  there  was  a clear  split  of  opinion  between  incumbent  operators  and 
new  market  players  with  regard  to  the  need  for  rapid  progress  on  Options  3  and  4. 
Incumbents tended to take a more conservative view, favouring only Option 2, whilst new 
entrants,  service  providers,  users  and  manufacturers  generally  stressed  the  strong 
desirability  for  opening  up the numbering environment  in Europe  in the short  term,  and 
stressed the urgent need for clear political decisions on this. 

This  split  of  opinion  was  largely  confirmed  by  the  contributions  received  on  the 
consultation  on  the  Infrastructure  Green  Paper,  where  the  competitive  and  consumer 
impact of numbering policy was also stressed. 

On this basis, ECTRA  adopted  a decision  in its October  1995 meeting  which  calls  for: 
support  by  member  states  of  a submission  to ITU  to secure  country  code  388;  further 
study on the use of national  resources  for  pan-European  needs; and  the preservation  of 
the CEPT  interests  in ITU. It  was further  decided  to review the decision  by June  1996 
which date has now been further  postponed. 

cost/benefits of special pan-European services under Option 2 

In making policy choices an assessment  must, of course, be made of the resulting  costs 
and of the financial benefits  which  the  change should  facilitate.  Both  ECTRA  and  the 
Commission  have  carried  out  such  studies.  At  the  same  time,  the  potential  costs 
identified  are only those attributable to the telecommunications  industry and not the often 
significant  costs which must be borne by business and users.  Data on those costs are not 
currently available, but comments addressing those issues are specifically invited. 

Studies  have  suggested  that  there  is  strong  latent  demand  for  special  Europe-wide 
services,  such  as  freephone,  premium  rate  or  shared-cost  services,  even  though  their 
development  until  now  has  been  held  back  by  the  absence  of  a  common  numbering 
approach,  as  well  as  by  cultural  and  linguistic  factors.  This  contrasts  with  the 
phenomenal  success of freephone  services in the USA  , where portability  of  freephone 
numbers  both  between  different  locations  and  between  different  operators  has  been 
required.  40% of US long-distance call traffic  is to freephone  numbers  against  20% in 
Canada  and  only  1%  in  Europe.  US  freephone  revenue  represents  $10  Billion 
annually against $500 Million in Europe.  In  1993, $435 billion of goods were sold via 
freephone  calls.  The average  telecommunications  cost  to the seller  was  2 - 9 % of the 

/TO 

amount of sale. At the same time, a study  suggests  a potential  in Europe for  additional 
revenues  of  up  to  4.6  Billion  ECU  by the year  2003  Europe-wide  freephone  services 
(including calling card services) and shared revenue services. 

The cost of introducing advanced service platforms  for freephone,  shared cost and shared 
revenue  services  requires  interconnection  and  interoperability  of  national  Intelligent 
Networks  (i.e.  interconnection  of  Signalling  System  7 networks  across  Europe  and  the 

The  hannonised  Euro|>can  telephone  services  niarkcl:  ihc  economic  slakes  and  the  need  for  numbering 
solutions.  Sagatel,  Paris, March  1996 

Potential  Opportunities  AlVordcd  by a  New  European  Telephony  Numbering  Space.  Final  Rc]x>rt. Mars'  Ann 
O'i.oughlin  and  Stuart  Shanock  marketing  consultants, 20 April  1994 

28 

creation  of  a pan-European  number  database  and  service  management  system  to  support 
portability)  have been  estimated  as extremely small'  . 

overall  cost  benefit  assessment  of progression  towards  an  open  and  unified  numbering 
plan  under  Options  3 and  4 

In  addition  to  the  additional  revenues  generated  by  special  pan-European  services,  an 
open  and  unified  European  numbering  plan  should  improve  the  efficiency  of  European 
operators  and  service  providers  and  offer  certain  scale  economies  At  the  same  time,  the 
costs  involved  in  adapting  national  numbering"  schemes  for  the  telecommunications 
industry  would  be  significant,  though  relatively  small  in  relation  to the  potential  benefits 
to the  customer. 

ECTRA70  has  estimated  the  direct  costs  per  subscriber  for  numbering  changes  to  be 
within  the following  ranges: the cost of a subscriber number change is estimated  at  10 -
50  ECU,  the  cost  of a change  in national  destination  code  at  1 -  10  ECU  and  the  cost 
of a country  code  change  (Option  3) at less than  0.5  ECU.  On this basis, the  total  cost 
for  Option  3  is estimated  to  be lower than  1 Billion  ECU.  The  total  cost  for  Option 
4,  which  would  involve  some  revamping  of  national  numbering  plans,  was  difficult  to 
estimate  because  it  involves  medium  to  long  term  planning  with  very  different  starting 
situations  in the Member  States. A reasonable estimate of the  direct  costs  would  amount 
to some  2 billion  ECU71. Further indirect costs may occur but there is little data  available 
to  give  reliable  indications  as  to  the  amount  of  such  costs.  Further  analysis  may  be 
required  in order  to derive a reliable overall cost/benefit  ratio. 

Report  on  costs  of  number  changes,  ECTRA  Project  Team  on Numbering,  10 July  1995 

Report  on costs  of  number  changes,  ECTRA  Project Team on Numbering,  10 July  1995 

With  about  200  million  subscriber  lines  and  a  cost  of  10 ECU  per  line,  the  direct  cost  would  amount  oC  2 
billion  ECU  onlv.  The  Council  Decision  on  the  introduction  of  the  common  emergency  number  "1 12"  and 
the  conseciucntial  resicw  ol" a  number  o\'  national  numbering  schemes  has  significantly  lacilitatcd  the 
introduction  of other  short  codes  starling with  "I" 

ANNEX  II: CARRIER  SELECTION 

options for  carrier  selection 

29 

in  front  of  the  subscriber  number 

One  possibility  for  carrier  selection  is  through  the  use  of  prefixes  (short  codes)  to  be 
in  a  single  stage  dialling  procedure. 
dialled 
Identification  of  the  calling  party  is  done  through  the  Calling  Line  Identification  (CLI). 
Another  possibility  is  by  calling  a  special  service  access  codes  to  carrier  services  after 
which  the dialled  number  is entered  together  with  a special  code for  authentication  of  the 
subscriber.  This  latter  possibility  is a two  stage  dialling  procedure  which  is  more  prone 
to  fraud  and  resembles  calling  card  services  in  use  today.  For  the  remainder  of  this 
analysis, we will  concentrate on the first option. 

The main options for carrier selection in a single stage dialling procedure are: 

A: 

B: 

C: 

default  carrier  determined  by  access  network  operator  (local  operator)  with 
possibility  of  override  by  user  on  call  by  call  basis.  This  options  is  sometimes 
referred  to as easy  access; 

pre-selection  of carrier  by the customer  plus possibility of override on call by  call 
basis.  There  are  some  variants  on this method  e.g.  change  default  carrier  through 
instant DTMF  dialling  (change pre-selected  carrier  on-line) or pre-selected  carrier 
determined  by  regulator  on the basis of market  share.  This option  is referred  to  as 
ecpial access; 

the  use  of  earner  selection  codes  for  all  calls.  Clearly,  this  option  is  in 
contradiction  with  the  Council  Decision  on  the  introduction  of  a  standard 
telephone  access  code  . 

The  Commission  believes  that  the  requirement  for  a  harmonised  access  code  should 
prevail  as,  with  the  implementation  of  Option  B,  it  does  not  form  a  barrier  to  the 
development  of effective  competition.  Option C is therefore  not considered  further. 

With the implementation  of easy  access (Option  A), operators  will not loose market  share 
in  long-distance  and  international  traffic  as  quickly  and  substantially  as  with  the 
implementation  of equal  access  (Option B) bec'ause they will normally  elect to  route  their 
long-distance  and  international  traffic  via their own channels.  Option  A could therefore  be 
an intermediate step in a phased  approach  with Option B as the medium  to long-term  goal 
and  cause  a  more  gradual  transition  towards  an  open  competitive  market  then  with  the 
implementation  of Option B right from  the start. 

cost/benefit  of carrier  selection 

Studies  carried  out  for  the  Commission  * and  ETO 
concluded  that  carrier  selection 
mechanisms  are  mandatory  to  foster  competition  in  main  telecommunications  markets. 
Users  must  be able to easily select  a carrier  wherever  they  are in Europe  for  their  national 
and  international  long-distance  telephony  services. 

72 

Council  Decision  of  I 1  May  1992  on  the  introduction  o[' a  standard  telephone  access  code  in  the 
Community,  92/264/EEC,  OJ  El 37/21,  20 05.92) 

The  harmonised  luiropean  telephone  services  market 
solutions,  Sagalel,  Paris,  March  19% 

the  economic  slakes  and  the  need  for  numbering 

" 

Carrier  .selection  studv  for  ETO,  '  >V'l !M, June  1996 

30 

The experience  with carrier selection  is strongest in the US where, after  the divestiture of 
AT&T  and  the  introduction  of  inter-exchange  long-distance  competition,  the  long 
distance  rates  have  been  slashed  by  approximately  40 %.  Another  example  is  Finland. 
Since  the  introduction  of  long-distance  competition  between  Telecom  Finland  and  the 
long-distance  carrier of the independent  local operators  in  1993, long distance tariffs  fell 
by more than  50 %. Remarkably, the total revenue did fall but not as substantial  because 
of increased telephone usage. 

The total  revenues  of the telecommunications  market  in the European  Union  in 2000 is 
estimated  at  110  -  120 Billion  ECU.  Some  50 % of the  traffic  is  business  traffic  with 
some  20  %  international  traffic.  By  introducing  carrier  selection  throughout  the EU,  it 
works  out  that  between  40 -  50 Billion ECU  of  revenues  is  at  stake.  Extrapolating  the 
effects  on  long-distance tariffs  which  were seen in the US  and Finland  to the European 
Union, the introduction of carrier selection could save the European customer as much as 
20-25 Billion ECU per year. Obviously, the reductions of tariffs  would change telephone 
calling patterns and thus offset  somewhat the loss of revenues for operators. 

The  lower  prices  of  telephone  traffic  would  make  the  diffusion  of  information  cheaper 
and thus  form  an immediate stimulus  to the European  economy. These direct effects  are 
difficult  to  quantify  in  financial  terms  but  are  believed  to  be  huge ".  Besides  that,  the 
introduction of carrier selection would assist in the migration of users from  one operator 
to the other. It would make customers more aware of competitive alternatives, customers 
would  not  have  to  invest  so  much  time  and  money  (including  any  necessary  CPE 
alterations)  in  changing to a new operator,  customers  could  try out  new operators  on a 
call-by-call  basis  with no long term  commitment,  and  customers  would  avoid  having to 
dial additional digits in order to access an other operator's network. 

The cost of introducing  carrier selection  cover local network  implementation  cost for the 
incumbent  operator  and any other  local operator  required  to provide  equal  access; costs 
for  long distance operators; any extra costs of network  capacity or operations  that  result 
from  increased customer chum; and end user equipment costs. 

An  analysis  of the  cost  of  implementation  of  equal  access  to  long-distance  carrier  was 
carried  out  in the UK76.  The  total  direct  cost  to  BT  over  the  period  1995  -  2004  was 
estimated  between  136.6 and 261.2  £M77. This included cost for  network  changes, cost 
for  information  system  changes,  and  cost for  data build  maintenance  and staff,  training 
and organisation. The cost for other operators for the same period  was estimated  at 68.6 
JEM. 

Extrapolating  this  to  the  European  Union  market  and  assuming  similar  degrees  of 
network  digitisation  and efficiency,  the introduction  of carrier  selection  at the European 
level would cost about 2 Billion ECU over the ten year period considered. 

It  is obvious  from  this very  rudimentary  analysis  that  the benefits  of introducing  carrier 
selection  by  far  outweigh  its  costs.  Even  if  the  drop  in  long-distance  tariffs  would  be 
much less than assumed, benefits of equal access to carriers will exceed costs. 

see  for  example  the  Bangemann  report  on  Europe  and  the Global  Information  Society.  Recommendations  lo 
the luiropean  Council,  26.05.1994 

7"  Cost  Benefit  Analysis  of  Equal  Access, a consultation  paper  issued  by OFTEE, July  1995 

In  sharp  contrast  is  the  cost  of carrier  selection  in  Sweden.  The  cost  of  implementing  a  new  carrier  code  m 
the network  of Telia  (incumbent  in  Sweden)  is only 60  kECU.  The  numbers  poioduccd  by the OFTEE  report 
are disputed  ami  arc  said  to be excessis'ely  high 

Pre-selection  equal  access  was  introduced  in the  US and  Australia  using  slightly  different 
methods. 

31 

move  to equal  access  in (he US 

Pre-selection  was  introduced  in  the  US  from  September  1984  as  local  exchanges  were 
given  equal  access  capabilities  in rolling conversion  programmes.  To  begin  with,  once  an 
exchange  had  been  converted  to equal  access, their  was no immediate  requirement  for  all 
customers  to  be  balloted  on  their  preferred  long-distance  carrier.  By  early  1985,  it 
became  apparent  that  only  around  30  %  of  customers  connected  to  equal  access 
exchanges  were  pre-selecting  a  long-distance  carrier  (either  AT&T  or  one  of  the  other 
long-distance  carriers)  whilst the remaining 70 % were staying with AT&T by  default. 

In  May  1985  the  FCC  released  an  Order  specifying  a balloting  and  allocation  plan  to  be 
used  by  local  exchange  carriers  (LECs)  on  the  introduction  of  equal  access  into  their 
exchanges  and  a  retroactive  balloting  process  in  cases  where  equal  access  had  already 
been  introduced.  This  process  required  a re-ballot  of  customers  who  failed  to  respond  to 
the  first  ballot,  after  which  customers  who  did  not  respond  to  either  ballot  had  to  be 
assigned  a long-distance  carrier  in proportion  to those  who did  respond  in the  first  ballot. 
Under  this system, LECs found  that between 60 % and  75 % of their  customers  now pre 
selected  a  long-distance  carrier,  whilst  the  remaining  24  %  to  40  %  were  assigned  a 
carrier.  This  increase  in pre-selection  has been argued  to have been  a major  factor  behind 
AT&T's  loss  of  market  during  the  late  1980s.  In  particular,  its  share  of  inter-state 
switched  traffic  fell  from  82  %  in  1985  (when  it  had  already  faced  eight  years  of 
competition  from  MCI  without  equal  access),  to  63  %  in  1991  when  equal  access  had 

78 
been  rolled out to over 90 % of access lines in the US  . 

move  to equal  access  in  Australia 

Australia  licensed  a second  carrier,  Optus, in December  1991. The  new  carrier's  network 
was  operational  in  major  cities  by  November  1992,  and  was  available  to  65  %  of  the 
population  by the end of  1993. Within  18 months of launch  it had captured  about  15 % of 
national  and  international  traffic.  Originally  access  to  the  Optus  network  was  through  a 
simple dialling code prefix  -  "1".  If this prefix  was omitted  calls would  be routed  over  the 
Telstra  (incumbent)  network.  However,  it  was  always  intended  to  move  to  an  equal 
access system of pre-sèlection with call-by-call override. 

Pre-selection  balloting  began  in Australia  in July  1993,  and  will  continue  on  a  sequential 
city-by-city  basis  until  1997. The  process  takes  the  form  of a first ballot,  with  the  option 
for'Optus  to  call  for  a second  ballot  in  cities  where  the  response  rate  is  less  than  60  %. 
Non-respondents  remain  with  the  existing  carrier  (in  contrast  to  the  US  system  where 
they  were  assigned).  It  is  likely  that  the  share  of  traffic  captured  by  Optus  exceeds  its 
share  of  lines  since  it  will  have  tended  to  have  captured  customers  with  higher  than 
average  calling  rates. 

On  the  basis  of  the  experience  of  the  US  and  Australia,  it  appears  that  effective  pre 
selection  would  require  the balloting  of all  customers;  and  an option  of  a second  ballot  if 
response  rates  are  low.  There  are  however  other  possibilities  than  ballots  to  let  users 
make  their  pre-selection  for  instance through  marketing  campaigns.  Unlike the ballot,  this 
latter  method  allows  a better  control  quality  and  quantity  of customers  by the  new  entrant 
and  allows  new  entrants  with  less  marketing resources  to compete  fairly. 

Cost  Benefit  Analysis  of  Equal  Access,  a  consultative  paper  issued  by  OFTEE,  .Inly  19'»5 

ANNEX  111: NUMBER  PORTABILITY 

32 

Number  portability  is a generic  term  which  comprises  three  basic  types: service  provider 
portability,  service  portability, and  location  portability  (geographic  portability). 

1) location  portability 

Location  portability  refers  to the ability of end-users to retain the same telephone  numbers 
when  moving  from  one  location  to  another,  either  within  the  area  served  by  the  same 
telephone  switch or between  areas served by different  telephone switches. 

Today  location  portability  is normally  possible  when  relocating office  or  home  within  the 
local area or district but customers  must change their telephone numbers  when they  move 
outside  the  local  or  area  served  by  their  current  switch.  Clearly,  with  full  location 
portability  of  numbers,  information  in  the  number  such  as  tariff  indications  to  the  user, 
would  be  lost. 

Businesses  and  increasingly  residential  customers  may  get  full  location  portability  by 
using  non-geographic  service  access  codes  with  national  and  -in  the future-  European  or 
even  global  scope.  Personal  numbered  services,  even  those  on  the  fixed  network,  may 
offer  full  portability in the same way. 

It must however  be mentioned  that the main  drive for  these developments  today  does  not 
emanate  from  a  demand  for  freedom  to  move  around  with  numbers  but  a  .demand  for 
easy  customer  access  to  services,  even  beyond  national  borders.  The  Commission  seeks 
views on the relative importance of location portability. 

2) service  portability 

The  need  for  service portability  arises  when  a particular  service  is  available  only  through 
a  particular  switch.  For  example,  if  operators  deploy  ISDN  by  installing  new  ISDN 
switches  within  existing  service  areas  of  switches  that  provide  POTS,  customers  that 
wish to receive ISDN services must change their telephone number. 

Clearly,  service  portability  can  only  apply  to  a  selected  set  of  services  while  for  some 
services  porting  numbers  would  imply  that  the  unique  meaning  of  certain  access  codes 
like  800  (for  freephone  services)  and  900  (for  premium  rate  services)  would  be  entirely 
lost. The Commission  seeks comments on the relative importance of service portability. 

3) service  provider  portability  (transferability  between  operators) 

The  issue  of  service  provider  portability  spans  a  broad  spectrum  from  portability  at  the 
national  level  between  local operators  all the way through  to portability  at the global  level 
for  global  services.  And,  that  any  new application  for  service can  obtain  the service  from 
any  company  at  a  local,  national,  European  or  even  global  level.  Customers  can  then 
enjoy  the  best  value  in  terms  of  features,  services,  reliability,  quality  and  cost.  Hence, 
service  provider  portability  is  considered  a  major  instrument  to  boost  competition  in  the 
market. 

The  competitive  importance  of  service  provider  number  portability  depends  primarily  on 
the  value  that  customers  assign  to  their  current  telephone  numbers.  When  users  attach  a 
significant  value  to retaining  their  telephone  numbers  while  changing  service  providers,  a 
lack  of  number  portability  would  likely  deter  entry  by  competitive  providers  of  local 
services.  A survey  in the US  indicates  that 40 - 50 % of residential  customers  and  70  - 80 
%  of  business  customers  who  otherwise  svere  willing,  to  consider  changing  their  local 

33 

telephone operator  would  be unlikely  to consider  such  a change  if they had  to change  their 
telephone  numbers 
.  Business  customers,  in  particular,  may  be  reluctant  to  incur  the 
administrative,  marketing  and goodwill  costs of changing telephone  numbers. 

79 

Four  areas  are  considered  important  for  Europe  at  the  short  to  medium  term:  number 
portability  in  the  local  loop,  number  portability  of  non-geographic  services  such  as  800 
services,  number  portability  of  mobile  services  and  number  portability  of  pan-European 
services. 

Number  portability  in the local  loop 

With  the full  liberalisation  of the telecommunications  sector,  alternative  methods  for  local 
access  (e.g.  through  cable  TV  networks  and  through  new  radio  infrastructures  such  as 
those  based  on  DECT  and  the  GSM/DCS-1800  standards)  are  being  introduced  rapidly 
often  by  new  entrants  to  the  market.  Number  portability  in  the  local  loop  is  considered 
crucial  by these new entrants to give them  a fair  chance  compete  with  the  incumbent  and 
establish  a market  position. 

Without  number  portability  between  local  operators,  new  market  entrants  face  a 
significant  barrier  to  entering  the  market.  Lack  of  portability  may  even  become  a 
disincentive  to  invest  in  alternative  local  loop  networks  with  detrimental  effects  on  the 
development  of effective  competition  in Europe. 

Number  portability  for non-geographic  services 

Number  portability  for  non-geographic  services  such  as  nation-wide  freephone  and 
premium  rate  services  is  currently  under  study  in  several  Member  States.  The  argument 
for  local number portability hold for the non-geographic  services. 

A  recent  brainstorm  in  the  context  of  the  ENF  concluded  that  number  portability  for 
freephone  services  is  key  to allow  customers  to  retain  their  valued  freephone  numbers  if 
they want  to  change service provider  and in fact  becomes  compulsory  when  applying  the 
equal access  principle on the freephone  numbering space. 

Number portability for  mobile services 

The  market  for  mobile  and  personal  communications  is  the  fastest  growing  market  in 
telecommunications  today.  Europe  now  counts  over  20  million  mobile  subscribers  with 
an  average  penetration  of  about  5 %.  The  expectations  for  the  future  are  enormous  with 
personal  communications  entering  the  mass  consumer  market  with  highly  innovative 
products  and services  and with penetration  levels exceeding  50 % of the  population. 

But  in  most  countries,  competition  in  this  market  has  not  fully  developed  where  in  some 
countries  the  second  mobile  operator  is  still  rolling  out  his  network  and  a third  operator 
has  not  even  been  appointed.  In  order  to  stimulate  competition  in  this  volatile  and 
innovative  market,  number  portability  between  mobile  service  providers  should  be 
considered  to stimulate growth  and  innovation. 

A  recent  study  carried  out  for  the  administration  of  the  Netherlands  shosvs  that  the  net 
benefits  to  be  gained  by  introducing  number  portability  for  mobile  services  accrue  to  as 

Notice  of proposed  rulemaking  in the  matter of telephone  number  portabihts',  US FCC.  July  \}.  1995 

much as 500 million ECU per year for the Dutch market onlyM . Indeed, there seems to be 
a very strong case for number portability among mobile service providers and operators. 

34 

Number portability for pan-European services 

The  market  for  pan-European  services  is  developing  quickly  with  service  codes  for 
accessing pan-European services likely to become available in the near  future. 

For  the  unconstrained  development  of  a  competitive  market,  it  is  important  that 
customers  are not locked into an early service provider  but can freely  take their  number 
with them  if they  wish to change pan-European  service  provider.  This  requires  number 
portability in the European numbering space81. 

Besides  freedom  to  the customer,  the  introduction  of number  portability  in  a European 
numbering space would also create more balanced market conditions  with the US  where 
number portability for country wide freephone services was introduced in the early 1990s 
with a highly competitive freephone market as a result. 

cost/benefit of number portability 

A study carried out recently by the UK Office of Telecommunications (OFTEL) indicates 
that number portability in the local loop delivers considerable benefits  - estimated at some 
1.8  B£ over  10 years  . Such benefits  far  outweigh  the costs. BT,  which  will  incur  the 
majority of the costs, estimates them at £ 220 million over the next five years, and  falling 
steeply thereafter.  The other operators cost was estimated at less than £ 3 million each83. 
This  is in sharp  contrast  with the conclusions  of a study  carried  out  in the  Netherlands 
where  the  initial  set  up  cost  was  estimated  at  £  12 million  with  an  additional  £  7  per 
porting line84. 

The UK's Monopolies and Mergers Commission has produced an agreed allocation of the 
costs of portability, in which BT and other operators bear 70 % of its own administrative 
costs and recover the remainder from the operators to whom portability is being provided. 
The cost for technical changes to the own network is borne by each operator himself. 

Besides number portability in the local loop, other forms of portability  such as portability 
of mobile and freephone numbers should be considered. A recent study carried out for the 
Ministry  of  Post  and  Telecommunications  in  the  Netherlands 
indicates  that  the 
economic  benefits  outweigh  the  costs  for  these  latter  services.  The  detailed  issues  will 
have to be worked out further  and are best tackled from a European level. 

Number  portability  in the Netherlands,  Final  report  for HDTP, OVUM,  14 March  1996 

The  introduction  of  number  portability  svithin  a  European  numbering  space  is  not  an  issue  svhich  stands 
entirely  by itself.  In  fact,  in  the more mature  situation  an  intelligent  system  is  required  to support  the  routing 
of  calls  placed  svithin  a  European  numbering  space.  Such  an  intelligent  system  svould  grcally  facilitate  the 
portability  of certain  pan-European  numbers. 

This  figure  includes  £  550  million  ol" direct  benefits  in  saving  cost  on  télécoms  and  £  1.2  billion  of  indirect 
benefits  llosving  to  all  customers  as  a  result  of  increasing  genuine  competition  for  all  categories  ol 
customers. 

Number  portability:  a paper  by the (Office  of telecommunications  of the  United  Kingdom.  March  1996 

Study  on  number  portability  by OVIJM  for  the  Dutch  Ministiy of Post  and  Telecommunications.  1996 

Study  on  number  portability  by ( )VUM  for  the  Hutch  Minislrv of Post  and  Telecommunications.  1996 

portability  in the  US 

35 

In order  to further  boost  competition  in freephone  services, the US  FCC,  in a  1991  ruling, 
ordered  number  portability  for  freephone  services  to  begin  by  1993.  Local  and  long 
distance  telephone  companies  have  spend  hundreds  of  millions  of  dollars  for  the 
necessary  changes  and  additions  to their  networks.  The new  post-portability  environment 
in  the  US  calls  for  a centralised  database  and  operational  management  system.  This  will 
enable all long-distance companies to reserve, activate and deactivate  freephone  numbers. 
When  considering  that  over  40  %  of  all  long-distance  calls  in  the  US  (comparable  with 
intra-European  calls) are freephone  calls, the impact of this measure on competition  in the 
US  market  is  clear.  Moreover,  it has  prepared  US  players  better  than  European  players 
for  global services  competition. 

Moreover,  the  recent  Telecommunications  Act86  specifies  that  Regional  Bell  Operating 
Companies  will  be  free  to compete  in the long-distance  market,  but  only  when  they  have 
opened  their  own  networks  by  complying  with  a  14  point  checklist  which  includes  the 
obligation  to  provide  full  number  portability.  Local  number  portability  trials  have  now 
started  all  over  the  US.  Clearly  the  Act  creates  a  lot  of  additional  impetus  to  progress 
rapidly with the introduction  of number  portability. 

US Telecommunications  Act  of  1996, adopted  February  8.  1996 

ANNEX  IV  : PERSONAL  COMMUNICATIONS 

36 

The views on Personal  Communications  Services (PCS) and on the related  issue of Universal 
Personal  Telecommunications  (UPT)  are  very  divergent87.  Conceptually  however,  UPT 
embraces  much  of the same thinking  as PCS but  was,  unlike  PCS  which  was  driven  by  the 
competitive mobile sector, defined  in ITU and driven by the wireline sector. 

UPT requires an intelligent logical layer above existing networks. The implementation of UPT 
is a commercially sensitive issue, certainly on a European or global level, in particular where it 
concerns the need  for  IN facilities  storing subscriber  data (such  as subscriber  service  profiles 
and  data  relating  personal  numbers  with  network  termination  points  or  physical  network 
numbers).  It  would  put  mobile  and  cable  operators  that  lack  these  IN  facilities  in  a 
disadvantageous  position  vis-à-vis other (incumbent) operators since the  latter  would  have to 
process  the UPT  calls  including those  calls  originating  in and  destined  for  mobile  and  cable 
networks. 

With  the  fast  evolving  mobile  communications  networks,  the  PCS  concept  is  emerging,  in 
Europe on the basis of the GSM/DCS environment. At the local level, it is likely that this PCS 
concept  is  further  enhanced  with  micro-cellular  networks  and  individual  micro-cells 
interworking  with  the  GSM/DCS  environment.  Through  service  roaming,  this  PCS  concept 
could  be readily  turned  into a global  PCS  concept  including the GSM/DCS  environment  and 
other environments such as D-AMPS, PDC and satellite PCS88. 

The PCS  concept  has  inherent  advantages over the UPT concept.  True  mobility  is  inherently 
part  of  it. It has  a large  and fast  growing  user  base.  Since customer  profiles  reside  with  the 
individual operators, it does not seem to have the same commercial barriers to implementation 
as UPT. Further, the PCS concept is driven from the highly competitive mobile sector and thus 
seems to offer  better guarantees for a level playing field for all players. 

If we would  add the possibility to port numbers  between  mobile operators  and  perhaps  even 
the possibility to port numbers between  mobile operators and fixed operators, an environment 
is created where the  telephone numbers of today (the network termination points) become the 
de-facto personal numbers of the future. 

The  Commission  solicits  views  on the  further  development  of personal  communications  and 
personal  numbering  and  on  mechanisms  to  promote  effective  competition  in  converging 
markets. 

Pan-European  roamers  represent  a significant  market  with a hugh potential  for  increase  who 
demand, besides operator-to-operator  portability, geographical portability.  New entrants argue 
that they need European  number ranges, particularly service resellers. The Commission  seeks 
views on the need for a European numbering solution for PCS  . 

87  A generally accepted  definition  of PCS  is: "PCS  is used  as a generic  term  for  services  which  provide  person-
to-person  calling,  independent  of  location,  terminal  used,  ihc  means  of  transmission  (wireline  or  svirelcss) 
and/or  the  choice  of  technology";  sec  for  instance  "I7.TO discussion  paper  for  a  svorkshop  on  numbering  of 
Personal  Communications  Services  (PCS)  in  I;.uro|>c",  19 April  1996. 

Inter-syslcm  roaming  between  various  mobile  networks  including  the  possibility  o\' SIM  card  roaming  is 
under  discussion 

The  recently  established  UMTS  Forum  has  as  one  of  ils  main 
communications  policy  for  Kurope. This  includes  inter  alia  the  issue ol  nuinbciing 

task 

the  elaboration  of  a  mobile 

ANNEX  V  :  A  REFERENCE  SCENARIO  FOR  MOVING  TO  AN  OPEN  AN!)  UNIFIED 

EUROPEAN  NUMBERING  ENVIRONMENT 

37 

At  the  European  lcsel 

At the national  level 

STEP 1 
(implements  ETNS  under Option  2) 
By  1998, introduce  pan-Europe  services  under 
virtual country code  388 (e.g.  3-888-) 
and  under  empty  space behind  national  codes 
(e.g.  3-900-,  3-500-  ) 

STEP 1 
By early  1997, define  and agree on  common 
guidelines  for  mandator)' use by  administrations 
svhen resvriting their national  numbering  schemes 
to ensure  that these open  up (for  competition) 
in a balanced  manner and converge  (harmonisation) 

I 

I 

STEP 2 
(implements  Option  3) 
By late  1998, transition  towards  a  3-digit 
country  code  for European  countries  , 

STEP 2 
By  1997, start rewrite national  numbering 
schemes  to ensure that they can  fully  accommodate 
the needs of the post-1998 liberalised  market 

I 

I 

STEP 3 
(implements  Option  3+) 
By  1999, transfer  the  responsibility 
of managing  the  last tsvo digits  of the  3-digit 
country  codes  to a European  body. 
Europe is identified  by  "3",  creates enormous  space 
for  competition,  new  services  and  market  entrants 

STEP 3 
By  1998-1999, start opening up national  numbering 
schemes  in a harmonious  and balanced  manner 
for example  for carrier  selection 

I 

STEP 4 
(implements Option  4) 
By  2000, melt national  numbering  schemes  and  the ETNS  together. 
Replace  international  dialling  for  intra-European  calls  by regional  dialling 
e.g.  replace  "003XX"  (access  code) by "IXX"  (prefix),  leading digit  "1+" represents  European  trunk  call. 
Facilitates  dialling and  remos'es psychological  barriers, 
opens  range  of common  short codes  for different  applications  e.g.  carrier  selection  etc. 

geographic  numbers 
local dialling:  2345678 
national  dialling:  02-2345678 
intra-European  dialling:  132-2-2345678 
international  dialling:  +3-32-2-2345678 
non-geographic  numbers  (pan-European  service  numbers) 
carrier  selection  :  lOXYZor  10ABCDEF 
emergency  number,  road  side assistance, director)' assistance:  1IX 
personal  numbers:  1-500-
freephone  service:  1 -888-
prcmium  rate and  shared  cost  services:  1-900-

A  REFERENCE 

SCENARIO  FOR  MOVING  TO AN  OPEN  AND  UNIFIED  EUROPEAN  NUMBERING 

ENVIRONMENT 

country  code  STEP  1  -  1998 
now 

Option  2 

STEP  2 - 1 9 98 
Option 3 

STEP 3 -  1999 
Option  3+ 

3 00 

3 09 

3 20 

3 29 

331 
3  32 
3  39 

3  49 

3 50 
3 52 

3  XX 
3 YY 

3  500 
3  888 
3  900 

31 
32 
39 

49 

350 
352 

3900 

3500 

388 

331 
332 
339 

349 

350 
352 

3500 
388 
3900 

STEP 4- 2000 
Option 4 
"003 " -> " 1 " 

" 1 " is European  prefix 

10XYZ  prefix  e.g.  carrier  selection 

common  emergency 

112 
11X  European  short service  codes 
118 

directory  services 

12X 

empty  space  (national  short  codes) 

131 
132 
139 

area code  Netherlands 
area code  Belgium 
area code Italy 

149 

area code  Germany 

150 
152 

area code  Gibraltar 
area code  Luxembourg 

IXX 
1YY 

further  geographic  area  codes 
further  European  service  codes 

1500  personal  communications  sei*vices 
1888  European  freephone 
1900  European  premium  rate  services 

+3 49  228  123456 
+3  500 <personal  number> 

Rest of the world  to Europe: 

ANNEX  VI:  ETO/ECTRA  STUDIES  ON  NUMBERING 

Titlt 

1  Non-discriminators' access  to numbering  resources 

2 

Numbering  related  to the topic of  user-friendliness 

> 

Preparation  of request  for  virtual  country  code  to  ITU 

-' 

5 

Numbering  related  to PCS  in  Europe 

Canicr  selection* 

6  Management  of a European  Telephony  Numbering 

Space  (ETNS)* 
Number  portability  for  pan-European  services* 

7 

X 

Routing  aspects  of pan-European  service calls* 

9 

Numbering  requirements  of  corporate 
telecommunications  netsvorks* 

10  Revicsv of national  numbering  schemes  on  their 

openness  to competition 

11  European  Numbering  Conventions 

12  Harmonisation  of short  codes 

1 ">  Long  tcnn  strategic  plan  for  numbering  and  addressing 

of telecommunications  services 

In conjunction  svith ETSI 

Work  requirement 
To examine  issues  of number  ownership and number  tradability  , equal  access  to  competitive 
services  such as directory  services  and  DNIC/DCC allocation  procedures 
To examine  aspects  of user-friendliness  including  the issue of alpha-numeric  dialling and  make 
proposals  hosv to promote  user-friendly  dialling 
To prepare a submission  to ITU requesting  for  a virtual  country  code  for  the  implementation  of a 
European  Telephony  Numbering  Space  for  special  services  of pan-European  nature 
To analyze developments  of télécoms services  and  netsvorks  related  to UPT/PCS numbering  issues 
and  the effects  on and  requirements  for personal  numbering 
To investigate carrier  selection  mechanisms  available  or planned  at the national  les'el  and 
alternatives  for  introducing  carrier selection  at  the European  level 
To establish  a management  plan  for a European  Telephony  Numbering  Space  including  proposals 
for number  structure, allocation  principles,  rights/obligations  and  administration 
To  investigate  technical  alternatives  for  introducing number portability  in an  ETNS  between 
European  service providers  including  IN netsvork  implementations 
To define  alternative  strategies  for handling  and  routing  of pan-European  service calls  numbered 
from  a European Telephony Numbering  Space 
To review  the current access  mechanisms  for  VPNs», define  the requirements  of corporate  netsvorks 
on the numbering  of public networks  and  propose harmonisation  measures 
To study  svhich criteria  arc important  for  opening up national  numbering  schemes, review  current 
national  numbering  schemes  and  develop common  guidelines  for restructuring  them 
To study  current  rules  and  principles  of telephone  number  allocation  and  use in  European 
countries  and  prepare proposals  for detailed  European  Numbering  Conventions 
To review  the present  and  planned  short  codes/numbers  in Europe, investigate  the expected  need 
for pan-European  short  codes  and propose a harmonised  scheme  for  Europe 
To identify  potential  future  requirements  for numbering  and  addressing  and  des'elop a long  term 
transition  strategy  for moving towards an  integrated  numbering  plan  for Europe 

. 

Target/end  date 
May Ï996 

September  1996 

September  1996 

December  1996 

August  1996 

June  1997 

June  1997 

June  1997 

June  1997 

February  1997 

February  1997 

December  1997 

December  1997 

( ) studies  lead  lo recommendations  for  ECTRA  approved  policy  positions. 

ETSI  will  produce  technical  reports  as  input  to the  ETO  svork.  ETSI  reports  may  also  form  the basis  for European  Telecommunications  Standards  (ETS)  for  reference  in  future  European  Union 
legislation  but  no agreement  exist  today  about  the need  for  ETSs. 

LIST OF  ABBREVIATIONS 

ACTE 
AMT 
AT&T 
BT 
CEPT 
CLI 
DDI 
DNS 
DECT 
DNIC 
DTMF 
ECMA 
ECTEL 
ECTRA 
EIG 
EIIA 
ENF 
ETNO 
ETNS 
ETO 
ETSI 
FCC 
GSM 
GSM 
IN 
ISDN 
ITU-T 
LAN 
LECs 
NAFTA 
NANC 
NANP 
NRA 
OECD 
OFTEL 
ONP 
PCS 
POTS 
PSTN 
PTN 
SME 
VPN 
UIFS 
UMTS 
UPT 

' 

Approvals  Committee  Terminal  Equipment 
Asian  Mobile  Telecommunications 
American  Telephone &  Telegraph 
British  Telecom 
Conference  Européenne de Post et  Telecommunications 
Customer Line  Identification 
Direct  Dial-In 
Internet Domain Name  System 
Digital  European  Cordless  Telecommunications 
Data Network  Identification  Codes 
Dual Tone Multiple  Frequency 
European  Computer  Manufacturers  Association 
European  Telecommunications  Manufacturers  Association 
European  Committee of Telecommunications  Regulatory  Affairs 
European Interest  Group 
European Information  Industry  Association 
European  Numbering  Forum 
European Public Telecommunications  Network  Operators'  Association 
European Telephony  Numbering  Spac 
European Telecommunications  Office 
European  Telecommunications  Standards  Institute 
Federal  Communications  Commission  of USA 
Global  System for Mobile  communications 
Association of GSM  operators 
Intelligent  Network 
Integrated  Services Digital  Network 
International  Telecommunications  Union - Telecommunications  sector 
Local  Area Network 
local  exchange  carriers 
North  American Free Trade  Association 
North  American  Numbering  Council 
North  American  Numbering  Plan 
National  Regulatory  Authority 
Organisation  for  Economic Construction  and  Development 
UK  Office  of  Telecommunications 
Open  Network  Provision 
Personal  Communications  Services 
Plain  Old Telephone  System 
Public  Swiched  Telephony  Network 
Private Telecommmunication  Network 
Small  and  Medium  size  Enterprise 
Virtual  Private  Netsvork 
Universal  International  Freephone Service 
Universal  Mobile Telecommunications  System 
Unts'crsal  Personal  Telecommunications 

GLOSSARY 

ACTE  (Approvals  Committee  for  Terminal 
Equipment) 

Alpha-numeric  dialling/keypad 

Call  centres 

Calling  card  services 

Carrier  selection 

Carrier  selection  os'erride 

Dialling  parity 

E.164/E.190 

Easy  access 

ECTRA 

ENF  - European  Numbering  Forum 

41 

Created  b\  Directive  91/263/KHC, and,  inter  alia 
responsible  for the adoption  of the Common  Technical 
Regulations  (C'l'Rs) on which  EU hamioniscd  type 
approval  procedures  are based 
Dialling a telephone number  by using  the 
alphanumeric  tokens on the telephone's  keypad  that 
correspond  to the name of the service or the called 
party e.g. 0-80C>-"FLOWERS', 
A place ss'here incoming and outgoing  telephone  traffic 
is handled  in a structured  manner.  Call  centres  are 
used  for activities  such as telemarketing and  sales, 
teleservice and complaints  handling 
A telephone service svhere the customer  calls an 
operator  service (often  free-of-charge),  identifies 
himself svith a unique card number and  identification 
code, and  is then connected  to any  destination(s) 
svanted.  The customer  is often  billed  afterwards 
directly by the card service  provider. 
The possibility  for customers  to choose  their 
(preferred)  long-distance or international  operator 
through  telephony dialling or other means  such as  pre 
selection. 
The possibility  to override the pre-selection  of a  long 
distance or intemational carrier by adding a  special 
carrier prefix  to the dialled  sequence. 
Exists svhen the same number of digits have to be 
dialled  svhen accessing a service which  is provided  by 
different  competing  service  providers 
ITU-T Recommendations  gos'eming  the  procedures 
and criteria  for the allocation of country  codes. 
One option for the implementation  of carrier  selection 
sshere the default  carrier is determined by the 
incumbent  operator  svith the possibility of os'erride 
through dialling by the user on a call by call  basis 
The European  Committee  for  Telecommunications 
Regulator}' Affairs  (ECTRA), created  as one of the 
three committees  under the CEPT.  It includes a 
number of project  teams covering inter  alia  licensing, 
numbering,  interconnection,  mobile  communications, 
testing and  type-approval. 

Council  Resolution  92/C318/EEC of  19 November 
1992 on the promotion of co-operation  on  Europe-svide 
numbering,  identified  several  tasks  for  ECTRA  in 
numbering co-ordination,  including  the creation  of a 
European  numbering space and the preparation  of 
European  positions  for discussion  svithin  ITU.  ECTRA 
has set  up the European  Telecommunications  Office 
(ETO). 
An  industry  Forum  to discuss  numbering  and 
numbering  related  issues. The ENF  is open lo any 
organisation  that has an  interest  in numbering  or 
addressing  and  that  is represented  at  the  European 
level. The  ENF  was established  in  1994  follosving  the 
Council  Resolution  92/C  3 18/EEC of  19 November 
1992 that called  for  industry cooperation  inThe area  of 
numbering. 

Equal  access 

ETNO 

ETNS  - European Telephony  Numbering  Space 

ETO -  European  Telecommunications  Office 

ETS 

Europe-svide  service/number 

European  area/country  code 

European  Telecommunications  Standards  Institute 
(ETSI) 

Freephone  service 

Golden  numbers 

42 

Generic term  for equal  (non-discriminators ) access  to 
numbering resources  by competing  operators  and 
service pros'idcrs e.g. equal  quality, equal  opportunity, 
equal  length. 
In relation  to carrier  selection, equal  access  refers  to 
the implementation  where the long-distance  carrier  is 
pre-selected  by the customer  svith the possibility  of 
override through dialling on a call  by call  basis.  This 
option  is generally a second  step  follosving  the 
implementation of "easy access". 
Association  of European  Telecommunications 
Netsvork  Operators, currently  comprising  the 
incumbent operators  in Europe but discussions  are 
ongoing  to open up to independent mobile operators. 
A numbering space that sits parallel to the national 
numbering  spaces. Numbers  from  the ETNS svill be 
available anywhere in the European Union  (and  later 
on Europe). When  implemented, a services  numbered 
from  the ETNS can be accessed  by a single  pan-
European  number  from  any place in the Union  (and 
later on Europe). 

The European Telecommunications  Office  (ETO)  is an 
office  svhich has been established  under the  umbrella 
of ECTRA.  With regard to numbering,  ETO's 
functions  are to undertake studies, including  studies 
for the Commission  and  to ads'ice ECTRA  on 
European  numbering  issues. 
European  Telecommunications  Standard.  Standards 
established according to the procedures  of the 
European Telecommunications  Standards  Institute 
(ETSI). 
A  service that can be accessed  by a single  number 
from  anywhere in Europe provided by a  service 
provider that can be located anywhere else in  Europe 
A  specific  single digit code assigned to Europe  under 
the  ITU global  country code scheme; like " 1 "  for  North 
America 
The European  standards organisation  in the 
Telecommunications  field,  having the task of 
producing European Telecommunications  Standards 
(ETS), having European-wide  application  and 
acceptance, in the area  of telecommunications. 
A service that  is (can be accessed)  free  of charge  to the 
customer. The access code "800" is generally 
associated  with  freephone.  There is an ongoing  debate 
in the Member  States svhether the customers  svhen 
calling a freephone  number need  to get a free  service 
or, alternatively, only the call  to the service centre  is 
free  of charge. 
Golden  numbers  are telephone  numbers  that 
distinguish  themselves  from  all other  numbers  in a 
given  number  range because they are attractive  to has-e, 
are easy  to leam or remember,  subjcctisely  pleasing  or 
are  in use and  knosvn by the general  public or client 
base. Golden  numbers  may hase a big  commercial 
value.  For  instance, the digits  that  relate to 
"FLOWERS" on the standardised  alphanumeric 
keyboard  mav have special  salue  to a tlosver  service 

Green  Paper(s) 

Information  Society 

Internet 

ISDN 

ITU  - Intemational  Telecommunications  Union 

MoU  - Memorandum  of  Understanding 

Non-geographic  services 

NRA  - National  Regulator}' Authority 

Number  portability 

Numbering  Conventions 

Numbering  plan/scheme 

43 

Green  Papers, in the  European  Union  context,  arc 
Eurojx;an  Commission  consultative  documents  setting 
out  basic policy goals  for public debate. 
Kev Green  Papers  issued  in the  telecommunications 
sector, arc the  1987 Green  Paper  on  the development  of 
a common  market  for  telecommunications  services  and 
equipment  (COM  (87) 290) and  the  1994 Green  Paper 
on the further  development  of mobile and  personal 
communications  in the European  Union  (COM  (94) 
145). 
A society  that becomes more dependent  on  information 
and communication.  In the report entitled  "Europe  and 
the global  information  society" (the Bangemann  Group 
report) it is presented  as a revolutionary  challenge 
svhich will change the svays of living and  svorking 
together. 
Data communications  netsvork based  on the  Internet 
protocol TCP/IP. TCP/IP was developed  as a  US 
military computer based communications  standard 
svhich has o\'er  recent years met great  success  in 
academic and  later in commercial  applications  -
particularly for intemetsvorking among  different  LAN 
ens'ironments and servers. 
Integrated  Services Digital Netsvork.  Standard  defined 
by the ITU for the modem  telecommunications  bearer  • 
netsvork.  Is end-to-end  digital  and  integrates  different 
type of services e.g. circuit and packet  ssvitched 
services. 
International  Telecommunications  Union  (ITU), the 
United  Nations  specialised  agency  for 
telecommunications. 
MoUs  in the telecommunications  field  in Europe  have 
been entered  into betsveen operators  and/or  equipment 
manufacturers  or other market participants  for  the roll 
out of new products and  services. 
MoUs  have been entered  inter  alia  for  GSM,  ERMES 
and  TETRA. 
Telecommunications  services  that are numbered  from 
(national) number ranges that are not identified  with 
one specific  geographic region, city area  or  local 
community. A country svide freephone  service or a 
service numbered  from  the ETNS are examples  of non-
geographic  services. 
National  Regulatory  Authority.  Directise  88/301  and 
90/388 both require Member  States  to ensure  the 
separation  of regulatory activities  from  the  operation 
and  provision of services by  Telecommunications 
Organisations. 
Can  has'e ditTerent meanings  (see Annex  III).  Is  often 
referred  to as the possibility  to transfer  a telephone 
number  from  one operator to the other.  Number 
portability  thus allows customers  to retain  their 
telephone  number  svhen they decide  to change  operator 
and  rcmoscs an  important  barrier  lo  competition. 
Consentions  laying dosvn rules  about  e.g.  rights  and 
obligations  associated  svith numbers,  the  modification 
of" numbering  schemes,  number  pricing  and  number 
trading. 
1 Jndci  the  framework  contract  svith the  Commission, 
ETO has been  tasked  to define  European  Numbering 
Conventions  svhich  should  create a  common 
framework  lor European  Administrations 
A plan/scheme  that  structures  the number  space 
available  to  a  ctumtiv,  operator  or  other  organisation. 

Numbering  space/environment 

ONP 

Open  numbering  environment 

PCS  - Personal  Communications  Services 

Personal and  portable  numbers 

Pre-selection of carriers 

PSTN 

Service access  code 

Service  Providers 

Shared cost  services 

Shared revenue of premium  rate  services 

Special pan-European  services 

TEN  - Trans-European  Networks 

Trans-European  carriers 

UIFS  - Universal  International  Freephone  Service 

Unified  numbering  environment 

UPT - Universal  Personal  Telecommunications 

44 

Generic  tcnn  for  the total  set of numbers  available 
behind  a country code or service access  code or  the 
collection  of them 
The Open  Netsvork  Provision  concept  defined  in 
Council  Directis'e 90/387/EEC. 
A numbering environment  that  is open  to  competition 
e.g. that provides equal  quality and equal  opportunity 
numbers  to competing operators and  service  providers. 
Personal  Communications  Services (PCS)  is a  generic 
term  for services svhich provide  person-to-pcrson 
calling, independent of location,  terminal  used,  the 
means of transmission  (wired or wireless) and/or  the 
choice of technology 
Unique number assigned  to the individual  independent 
of netsvork or location. 
Mechanism  svhere the local operator/service  provider 
will automatically route the long-distance  and 
international calls of a customer to the  long-distance 
carrier of hios choice (pre-selected  by the customer). 
The customer does not have to dial  special  carrier 
selection codes with every call. 
Public  Ssvitched Telephone Network. The  basic 
telephone network as it exists  today. 
The first  part of a service number through  svhich  the 
service is accessed. Often,  service access codes  are 
uniquely identifiable  codes e.g. "800" for  freephone  or 
"900"  for premium rate services. 
Service providers offer  services to end users  involving 
the use of mobile and fixed networks and services.  The 
role of service providers may very between  that of 
airtime reseller to the provision of sophisticated  value 
added  services. Service providers  may be  independent 
or form  part of a network  operator. 
These services provide special tariff netsvork  access  in 
svhich the cost are shared betsveen the caller  and  the 
service provider. The caller pays the call at a  tariff 
generally equivalent to a local call. The  netsvork 
provider charges the service provider  for any  additional 
transport to the service provider termination  point. 
Services provided on a shared revenue  infrastructure 
permitting the charging of calls to certain prefixes  at a 
premium rate. The calls are billed  to the subscriber  by 
the operator and a "share" of this revenue  is paid  to  the 
service pros'ider,  in general an  independent  company. 
Generic term  for service platforms  for e.g.  freephone, 
shared cost and  shared revenue (premium  rate) 
services that are Europe-wide as'ailable. 
Generic term  for interconnected  networks  and  services 
available on a pan-European  basis. 
Long-distance and  international  carriers  that  carry 
trunk  (volume) traffic  betssreen different  European 
locations (or Points of Presence). 
ITU-T Recommendation  establishing a  global 
freephone  sen ice behind  the country code 800.  The 
implementation  is a matter of commercial  negotiation 
between  individual  operators. 
A numbering environment  created  by melting  together 
a  set of national  numbering  schemes  svith a  singular 
structure and  e.g.  single service access  codes  for 
general  public  services 
ITU-T Recommendation  for establishing  a j->crsonal 
communications  ens ironment  svhere the individual  can 
be reached  through  a single (personal)  number 
independent  ol  network  or  location. 

ISSN 0254-1475 

COM(96) 590 final 

DOCUMENTS 

EN 

15 

Catalogue number  :  CB-CO-96-607-EN-C 

ISBN 92-78-11826-5 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg