COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS - EU Action Plan: Satellite communications in the Information Society
Date: 1997-03-05
Institutions: European Commission
Subjects: action programme, harmonisation of standards, research and development, satellite communications, single market

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels,  05.03.1997 
COM(97) 91 final 

COMMUNICATION FROM THE COMMISSION 

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

EU Action Plan: 
Satellite communications in the Information Society 

page 2 

1. 

Introduction 

Europe must take a more proactive and consistent approach in the satellite communication area. 
Under  the  combined  influence  of  strong  technological  progress,  deregulation  and  the  drive  for 
convergence  between  the  broadcasting  and  telecommunications  sectors,  developments  in 
satellite communication sector are of strategic and commercial importance. 

New  requirements  emerging  for 
the  Information  Society  are  demanding  high  performance 
access  and  back-bone  infrastructures.  Space-based  infrastructures  will  increasingly  meet  key 
user  requirements  such  as  personal  mobility,  access  to the  powerful,  high  capacity,  broadband 
evolution of Internet, fast response times, and global connectivity. 

Global  satellite  infrastructures  will  thus  become  a  critical  part  of  the  world's  economic 
system. 

Furthermore,  satellite  communications  systems  are  becoming  an  important  tool  in  supporting 
peace-time operations  and space-based  systems  in general  have a distinct  defence  implication. 
Moreover,  the  geographic  coverage  of space-based  infrastructures  favours  improved  social and 
economic cohesion in connecting peripheral and less advanced regions. 

As a  result,  a strong  and  coherent  satellite  communications  industry  and services  sector 
is of high economic  and political importance for Europe. 

It  will  provide  critical  leverage  over  the  development  and  spread  of  new  applications  in  the 
Information Society and over  their geographical distribution. 

US led initiatives for satellite based communication systems of global coverage, particularly  in the 
area  of  Satellite  Personal  Communications  (S-PCS)  and  advanced  broadband  multimedia 
satellite  systems  are  clearly  emerging today. Should  Europe  not  react  in a coordinated  manner, 
there  is  a  high  risk  from  being  kept  out  of  the  most  promising  market  segments  (services  and 
equipment), in the long run this would have consequences on the European position in launching 
services.  Furthermore,  keeping  control  over  space  segment  design  is  important  to  maintain  the 
control over end-to-end service provision definition and terminal design. 

The  key  driving  force  for  being  a major  player  in  space  is the  achievement  of  successful 
commercial  services  and  applications. 

The  revenues  generated  in  the  various  market  segments  (satellite,  terminals  and  services)  by 
the  innovative  satellite  personal communications  systems  and the advanced  broadband  satellite 
systems are expected to  reach 400 billion US$ over the next ten years. 

Expected  revenues over the next 10 years 

Traditional 
Geostationary 
15-20 BnUS$ 
60-90 Bn US$ 
100-150 Bn US$ 

Satellites 
Terminals 
Services 

Satellite Personal Communications 
and Advanced Broadband Systems 

15BnUS$ 
130BnUS$ 
>250 Bn US $ 

Satellite 
Navigation 
0.8-1  Bn US$ 
27-38 Bn  US$ 
30-45 Bn US$ 

page 3 

Satellite  Personal Communications  Services  (S-PCS)  systems will offer  voice, low data  rate and 
fax services to small, inexpensive  pocket  size terminals from a global constellation  of  Low Earth 
Orbiting  (LEOs)  satellite  constellations.  However,  out of the  17 such systems  notified todate, all 
of  them  but  one  is  of  US  origin,  although  only  a  limited  number  is  expected  to  be  viable. 
Although  European  industry  participates  in these  projects  with various  degrees  of  involvement, 
none of the systems have gotten a European leading position. 

For advanced  broadband  multimedia services, satellite systems with very  high capacity  allow for 
high  rate  direct  user  access  with  interactive  low  cost  user  terminals.  These  systems  are 
expected to play  an important  role as advanced  Internet  access  and will be launched early  next 
century.  Again,  the  majority  of  proposed  systems  is  of  US  origin.  Out  of  the  16  proposed  US 
systems, all of them but  two are based on geostationary  constellations. Of these,  the Teledesic 
system  proposes  a  Low  Earth  Orbit  constellation  with  a  blossoming  840  satellites  costing  9 
billion US$, while Motorola has announced its M-STAR  project for 6.1 Billion US$. 

European  reactions  to  the  many  US systems,  although  late, were  introduced  at  the  end  of  95. 
Four entities have so far declared interest in the matter and have booked frequencies  and orbital 
positions  in the  Ka  band.  However,  the  absence  of  a critical  mass  of  initiatives  and  of  a public-
private  partnership which could provide the  necessary  confidence to the financial  markets,  have 
thusfar  limited the  prospects for  such  European ventures. The  situation  is even worse  in the  S-
PCS case, where no European proposal yet exists. 

So,  despite  the  tremendous  efforts  over  the  last  30  years,  the  European  satellite  equipment 
and  service  industry  is  not  well  placed  to  achieve  the  position  in  the  commercial  space 
sector  needed to support  the ambitions  of the  European  Union to  remain a major  player  in this 
sector. 

The  potential  consequences  of  this  perspective  should  not  be  underestimated  as  first 
movers will have clear advantages in the market. 

The recently adopted Communication on the European Union and Space1 highlights the need for 
action  in  order  to  establish  an  appropriate  environment  for  the  development  of  space 
applications  and  to  improve  the  competitiveness  of  European  industry  at  world  level.  In  the 
Communication, the Commission stated its intention to launch a specific Action  Plan on Satellite 
Communications2. 

In this  Communication,  the  Commission  presents  the Action  Plan to  Council  and the  European 
Parliament, a draft of which has been consulted with industry. 

"The European Union and Space: Fostering Applications, Markets and Industrial Competitiveness" 

In addition an action plan on global Navigation by Satellite Systems is being prepared by the 

COM(96)617, of 4 December  1996 
2 
Commission, which should be presented to the Council and the European Parliament before the summer. 
Synergies between these two fields of activities should be developed notably in the areas of R&D and 
product  development. 

page 4 

2. 

Objectives  of  the Action  Plan 

In  1996  two  major  reports  were  made  available  by  Industrial  Groups:  the  High  Level  Industry 
Group3  and  the  IRDAC  working  group  on  space  telecommunications  and  navigation4.  The 
Reports  underlined  urgent  need  for  political  action  in  view  of  the  important  role  of  satellite 
communications  in the Information Society. 

Further to these  initiatives,  a meeting was  held on  10 October  1996 in Paris  by  Commissioners 
Bangemann  and  Cresson  with  EU  Ministers  and  Representatives  of  Industry  with  a  view  to 
reinforce co-operation in satellite communications between the private and public sector. 

The  meeting  confirmed  that  Europe  risks  missing  out  on very  important  emerging  markets  for 
global  satellite  communications  systems,  for  reasons  attributed  to  a  number  of  factors, 
including  the  regulatory  and  financial  environment,  industrial  structures,  and  technological 
elements. 

Consequently,  the  need  to  react  was  stressed  by  all  participants.  Actions  should  primarily 
emerge  through  private  sector  initiatives.  The  public  partners  on  the  other  hand,  including  the 
Commission,  committed  themselves  to  support,  on  the  basis  of  their  respective 
competences and roles, these initiatives from the industry. 

It was also recognised that, although European industry capabilities are in many respects  similar 
to those  of their  competitors,  a market  perspective  is  lacking  and  a strategic  vision  needs  to 
be developed  in close concertation with all relevant actors, including industry, operators and 
Member  States. The  elaboration  of  such  a vision  is thus  a primary  objective  of this Action  Plan 
and  should  form  the  basis  for  action  at  the  European  level,  which  in  view  of  the  subsidiarity 
principle should concentrate on: 

•  completing  the  EU  internal  market  and  removing  the  remaining  barriers  to the  creation 
of  the  home  market  for  European  satellite  communications  manufacturing  and  services 
industry; 

• 

improving  co-ordination  between  the  actors  in  order  to  reinforce  the  European 
position in international fora and in international markets; 

•  reinforcing  market  orientation  of  EU  research  and  development  in  the  satellite 
communications  sector  and  increasing  synergies  between  R&D  for  various  areas  of 
satellite technology  and applications. 

The  meeting  also  underlined  the  need  to  promote  competition  on  European  markets  and  to 
compete actively on international markets. 

The  Action  Plan  hereafter  outlined  is  thus  aimed  at  the  elaboration  of  a  strategic  vision 
particularly  relating to: 

•  strengthening  the  role  for  European  services  and  manufacturing  industry  in  global, 

advanced  broadband, multimedia satellite systems, services, and applications; 

"Report of Industry  High Level Group on Space", chaired by Mr.Delaye, 30 Jan 1996 
"Final Report on Priority Actions for Satellite Communications and Satellite Navigation", IRDAC 

3 
4 
(Industrial Research and Development Advisory Committee of the European Commission) Working Group 
on Satellites, October  1996 

page 5 

advancing the  European  position  in global satellite  personal communications  systems, 
services,  and  applications,  particularly  in  relation  to  its  integration  in  the  future  Universal 
Mobile Telecommunications  Services (UMTS) environment. 

The  following  sections  present  a  set  of  actions  aimed  at  completing  the  Internal  Market, 
reinforcing  Europe's  industrial  and  political  position  internationally,  and  reinforcing  European 
research and development efforts. 

3. 

The  completion  of  the  Internal  Market  in satellite 

communications 

3.1.  Identification of remaining barriers to the internal market 

Despite  the  liberalisation  of  the  EU  satellite  communication  market,  the  penetration  of  satellite 
technologies for the creation of transborder  services  and applications  remains significantly  lower 
in the EU than in other industrialised countries. There are three main reasons for this: 

•  The  implementation  of  relevant  EU  legal  measures,  especially  the  Directive  liberalising  the 
satellite  communications  services  and equipment  sectors, faces difficulties  in certain  Member 
States  thereby  hampering  the  development  of  a  substantial  home  market  for  the  European 
satellite communications  industry5. 

•  There may be cases where existing of planned EU legal measures do not suffice to effectively 
create a competitive  internal market and further measures may be required in order to ensure 
that the regulatory framework is completed. 

•  Recent  reports  indicate  that  insufficient  harmonisation  of  authorisation  procedures  and  the 
absence  of  co-ordination  between  national  authorisation  procedures  are  an  insurmountable 
barrier to the use of satellite communications. 

This  lack  of  harmonisation  may  seriously  hamper the  imminent  introduction  of  satellite  personal 
communications  and advanced broadband multi-media satellite services in Europe. 

The following action will be taken: 

A1.  The  Commission  will 

step-up  efforts  to  achieve  full  implementation  of  all  EU 
legislation  relevant  for  satellite  communications.  The  Commission  will  also  request 
industry  to  provide  regular  information  on the  basis  of  a  systematic  overview  of  all 
barriers  found  in  relation  to  the  introduction  of  satellite  communications  systems  and 
services. 

In  particular,  the  timely  and  effective  implementation  of  the  Council  and  European  Parliament 
Decision on Satellite  PCS6 and the Council and European Parliament  Directive  on licensing7 will 
be a priority. 

For example, Satellite Directive 94/46/EC (based on Article 90) is not yet implemented in 5 Member 

States: the Commission has started infringement procedures. The Satellite Equipment Directive 93/97/EEC 
(based on Article  100a) is not yet implemented in 4 Member States: the Commission has sent reasoned 
opinions to them. 
6 
and of the Council on a co-ordinated authorisation approach in the field of satellite-personal  communications 
services in the European Union". Final adoption foreseen for March 1997. 

Council adopted a Common Position with a view to adopt a "Decision of the European  Parliament 

page 6 

3.2.  Review of effectiveness and timeliness of CEPT measures and procedures 

The  work  achieved  by  the  CEPT8  in  recent  years  has  contributed  substantially  to  the  further 
development  of  the  satellite  communications  market  in  Europe.  Furthermore,  CEPT  measures 
increasingly  become a basis for the implementation of Union regulatory policies. 

The CEPT framework  of  intergovernmental  co-operation  and voluntary  adoption  of  its  proposed 
measures by its members however have not yet proven to be sufficiently  effective. The demands 
which the marketplace  puts on CEPT will only increase with the imminent full liberalisation of the 
EU  telecommunications  market.  As  evidenced  by  the  efforts  in  the  area  of  satellite  PCS,  it 
appears that the harmonisation tasks in particular  are more complex than anticipated whereas is 
of utmost importance for CEPT procedures and measures to be efficient  and timely. 

The following actions will be taken: 

A2.  The  Commission  will  request  industry  to  identify  regulatory  barriers,  allowing  the 
Commission  to  formulate  regulatory  measures  needed  in the  satellite  communications 
sector, as well as report on the effectiveness  of the measures taken to date. 

A3.  The  Commission  will  request  CEPT  to  accelerate  efforts  in  the  harmonisation  of 
authorisation  conditions  and in harmonised  use  of frequency  bands, to  review  its  current 
structure  and  procedures  with  a  view  to  increase  the  efficiency  of  its  regulatory 
decisions  making  procedures  and  their  implementation.  The  Commission  will  seek  to 
improve  its  co-operative  efforts  with CEPT  in order  to  enable  CEPT to support  better  the 
EU policies. 

This concerns  both CEPT measures which affect the internal market as well as those which 
affect the international position. 

3.3.  Review of effectiveness and timeliness of European standardisation efforts. 

Since  its  creation  in  1988,  ETSI  has  been contributing  very  effectively  to  global  standardisation 
in  the  satellite  communications  area,  particularly  in  developing  standards  needed  for  type-
approval  purposes  under  EU  legislation.  The  ETSI  effort  has  largely  concentrated  on  the 
standards for traditional satellite earth station equipment. 

In view  of  the  next  generation  of  personal  and  advanced  multimedia  services,  a  redirection  of 
ETSI's work  programme  may  be required, aimed at integrating satellite communications  into the 
overall  mobile  communication  and  intelligent  network  activities  and  into  the  multi-media 
environment. 

The following actions will be taken: 

A4.  The  Commission will  request  ETSI to  review  its  overall  satellite  communications  work 
programme  with  the  aim  to  ensure,  whilst  allowing  innovation,  continued,  efficient  and 
appropriate,  standard  development  in accordance  with  the  priority  actions  identified  in this 
Action Plan with the aim to ensuring the development  of a fully competitive  market. 

Council adopted a Common Position a view to adopting a "Directive of the European  Parliament 

7 
and of the Council on a common framework for general authorizations and individual licences in the field of 
telecommunications  services". Final adoption foreseen for March 1997. 
8 

CEPT = Conférence Européenne des Postes et Télécommunication 

page 7 

A5.  In  particular, 

the  standardisation  of  advanced,  broadband  multi-media  satellite 
terminals for  mass market  use is an urgent  and continuing  requirement  which  needs to be 
addressed with ETSI, CENELEC and industry. 

3.4.  Review of future functioning of the International Satellite  Organisations 

The  International  Satellite  Organisations  INTELSAT,  INMARSAT,  and EUTELSAT  have  been of 
major importance  in the development  of satellite communications  over the last decades. As they 
face  increased  competition  in large  parts of the world, the  ISO's  are discussing  their  future  role 
and  structure  in  the  evolution  from  the  current  intergovernmental  nature  of  the  organisations. 
The  European  Union  needs  to  develop  a  common  policy  vis-à-vis  the  future  of  these 
organisations  and their commercial spin-offs  in order to develop a fully competitive framework  in 
Europe.  Moreover, 
International  Satellite 
Organisations' structure and behaviour in the context of the Compton rules of the Treaty. 

the  Commission  will  continue 

to  review 

the 

The following action is foreseen: 

A6.  On  the  basis  of  information  to  be  supplied  by  Member  States  and  the  private  sector,  the 
Commission  will  continue  to  review  of  the  developments  concerning  the  International 
Satellite  Organisations  and  take  the  appropriate  steps  with  a  view  to  ensure  that  these 
developments  contribute to the  achievement  of a fully  competitive  satellite  communications 
marketplace. 

4. 

The reinforcement  of the  European  position  at a international 

level 

In order to increase the viability  of its satellite communications  sector, the following  major  issues 
that Europe needs to address are: 

the 

results  of 

•  effective  access to  markets, served  by  increasingly  global  satellite  systems,  taking  fully  into 
recently  concluded  WTO  Negotiations  on  Basic 
account 
Telecommunications  which  are  a major  step forward  in this  context.  Most  of the  offers  from 
the 69 countries  in the  Negotiations  include the  liberalisation  of the  satellite  communications 
services  sector.  It will  be crucial to ensure that the  commitments  made  by  each  country  are 
fully implemented; 

the 

•  access to orbital slots and frequencies,  needed to position satellites, particularly  in relation to 
Ka-band  spectrum  for  advanced,  broadband  multimedia  satellites;  The  WTO  agreement  on 
basic  telecommunications  include,  for  most  countries,  specific  provisions  on  the  need  to 
allocate frequencies  in an objective  and transparent  manner  and not  more burdensome  than 
necessary.  It is essential that each country fully respects these GATS disciplines. 

•  a  successful  strategy  of  co-operation  and  partnerships  with  nations  around  the  world  as  a 
basis to develop further the European technological  base in global markets and for the social 
and economic  benefit of these nations. 

The following actions will be taken: 

Improve market access: 

A7.  The  Commission  will  now  focus  on  the  full  implementation  of  the  commitments  of 
countries  in  the  framework  of  the  recently  concluded  WTO  Negotiations  on  Basic 

page 8 

Telecommunications.  Furthermore,  the  Commission  will  carry  out,  whilst  consulting 
industry,  an  in-depth  analysis  of  trade  policy  implications  regarding  international 
satellite  communications  issues  and,  for  those  areas  where  appropriate,  make 
proposals to remove in a systematic fashion the remaining market access barriers. 
The Commission will also put forward  proposals for the co-ordination  of positions  of 
EU Member States in international fora. 

Secure access to orbits and frequencies: 

A8.  The  Commission  will  review 

to 
orbits/frequencies  in the  light  of the  new  GATS  obligations  and  report  to  Council  and 
Parliament. 

the  economic  and 

related 

issues 

trade 

A9.  The Commission, together with CEPT and industry, will  review the  European  strategy 
in  Tl  sectors  i.e.  standardisation,  radiocommunications,  development  on  satellite 
communications. 

Enhance the industrial position in international markets: 

A10.  The  Commission,  in  partnership  with  industry,  will  assess  on  a  systematic  basis  the 
global  market  opportunities, 
issues  relating  to 
technology,  and  the  role  of  potential  European-led  initiatives  and  formulate  the 
appropriate supporting political actions. 

intellectual  property  rights 

A11.  The  Commission,  assisted  by  industry,  will  evaluate  the  opportunities  arising  from 
increased  political  and  technological/industrial  co-operation  between  EU  and 
third  countries  including  the  US,  Russia,  Canada,  Japan,  China  and  developing 
countries.  In view of the  importance to associate the developing  countries  in this area, 
the Commission will also evaluate the use of the  EU development  funds. Moreover,  the 
Commission  will  propose  the  necessary  measures  to  stimulate  a stronger  presence  of 
Europe in international markets. 

A12.  The Commission will take the appropriate  measures to promote effective  competition in 
this  field  at  a world  level  and  continue  to  ensure  that  the  operation  of  global  satellite 
systems  does  not  impede  competition  on the  relevant  European  markets,  in  conformity 
with Treaty. 

5. 

Reinforcement  of  European  R&D  and  Applications  Development 

Considering  the  key  role  of  R&D  support  in  the  sector,  the  reinforcement  of  the  R&D  and 
applications  development  is  crucial  and  should  aim  at  the  implementation  of  market  driven 
advanced  satellite  communication  systems,  services  and  applications.  R&D  and  applications 
development  could  be  carried  out  in  the  context  of  the  4th  and  of  the  preparation  of  the  5th 
Framework  Programmes  as  well  as  the  TEN-Telecom  programme  in  conformity  with  the 
procedures  in force,  in  close  co-operation  with  industry  (including  SMEs),  space  agencies  and 
Member States through the development of a long term plan and associated priorities. 

Concrete actions to be taken in the R&D field could include: 

A13.  Identification  of  possible  complementary  actions  at  the  framework  programme 
level  with  Space  Agencies,  industry  and  Member  States  ensuring  complementarity  of 
work programmes  . Specific objectives will be: 

page 9 

• 

• 

• 

to ensure that the various  policies  adopt  a coherent  and synergetic  approach  based 
on those areas where the European Union dimension provides added value. 

to put in place co-operation  mechanisms  between the Commission, Space  Agencies 
notably  ESA,  and  industry  to  identify  priorities  and ensure  complementarity  of  work 
programmes. 

to  review,  in  order  to  improve  complementarity  of  R&D  actions,  possibilities  offered 
by Article  130 K and  L. 

A14.  R&D  actions  in  view  of  the  early  implementation  of  the  recommendations  already 

elaborated on the basis of market requirements and hereafter outlined: 

•  Development  of  generic  technologies  in  common  with  related  sectors.  This 
concerns  miniturisation  and  cost  optimisation  of  the  basic  building  blocks  allowing 
construction of communication  payloads including baseband components,  RF blocks, 
and  subsystems,  high  power  platforms  technologies  including  power  systems, 
software  and  networking  technology.  For  the  ground  segment,  a  key  factor  is  the 
development  of technologies leading to the manufacturing of low cost user terminals. 
Experience is available in Europe in these fields but needs to be developed further. 

• 

Implementation  of  early  demonstrations/pilot  networks.  Pilot  systems  involving 
potential  operators,  terminal  manufacturers  and  service  providers  should  be 
stimulated,  as  they  constitute  the  best  way  to  prove  the  system's  viability  when 
deployed over a significant user base. 

•  Specification  of  innovative  systems  supporting  advanced  services.  Recent 
system  developments  (particularly  in  the  US)  have  shown  how  complex  satellite 
systems  will  support  advanced  and  improved  services.  The  availability  of  enhanced 
tools would benefit European industry  by allowing it to minimise design risks from the 
outset,  especially  in the fields of  network  management  and  reconfiguration  of  global 
constellations of many satellites. 

• 

• 

technologies  and 
Improvement  of  manufacturing  processes.  Advanced 
applications  deployment,  and  the  development  of  mass  production  technologies  is 
essential for the manufacturing of inexpensive terminals  in a highly competitive  mass 
market, especially  by small and medium sized enterprises. 

Identification  of  European  R&D  and  applications  development  actions  with 
value-added 
industrial 
competitiveness  as well as to social and economic cohesion. 

for  Europe,  particularly 

those  which  contribute 

to 

The  above  R&D  actions  will  also  benefit  other  areas  of  space,  notably  in  the  field  of 
navigation  and  earth  observation.  These  synergetic  effect  are  most  useful  and  will  be 
stimulated  and  closely  coordinated  in the  context  of  the  overall  R&D  action  for  space 
which  is  presently  considered  in  the  Commission  Working  Paper  "Towards  the  5th 
Framework  Programme: Scientific and Technological Objectives" (COM(97)47 final). 

A15.  In the  context  of  the  preparation  of  the  5th  Framework  Programme,  the  need  for  pre-
normative research  in this field will be considered  in order to  assist  notably  in the  area 
of  a  multimode  (terrestrial-satellite)  user  terminal  for  broadband  satellite  mobile 

page 10 

applications  and  in  the  area  of  transmit-receive  broadband  terminals  to  be  used  in 
uncoordinated mode with broadband multimedia space communication systems. 

6. 

Conclusions 

The  key  importance  for  Europe  of  satellite  communications  and  the  need  to  move  ahead  and 
establish a private/public  partnership in this area were identified through a number of studies and 
confirmed at a high level the meeting between Commission, Member States and industry. 

The Commission anticipates that industry, in parallel to the work on the Action Plan and as a first 
step  in  its  adoption, will  move  ahead  and  initiate  the  necessary  actions  within  industry  itself  to 
facilitate  the  development  of  a  longer-term  vision  of  EU  satellite  communications  policy  in  its 
international  context  and to  implement  the  corresponding  actions  and  priorities  in  co-ordination 
with CEPT, ESA, and other entities in the satellite sector. 

A16.  To  facilitate  the  development  of  a  longer-term  vision  of  EU  satellite  communications 
policy  in  its  international  context,  the  Commission  will  ensure  an  appropriate 
interface with  industry  comprising  of representatives  of relevant industry  sectors 
(network  operators,  service  providers,  equipment  manufacturers,  content  providers, 
users  and  consumers)in  view  of  supporting  the  Commission  in  the  implementation  of 
the Action Plan and on the priorities and requirements for their supporting actions. 

The following tentative timeschedule is foreseen for the Actions presented in this plan: 

1. 

Internal Market 

o 
implementation of legislation: 
<=>  requests to industry, CEPT, ETSI: 
«=>  first industry input: 
^>  completion CEPT review: 
«=>  completion ETSI review: 

2. 

International level 

analysis general trade policy implications: 

«=>  Implementation of WTO obligations: 
^ 
•=>  review trade issues orbits/frequencies: 
<=>  review relations with third countries: 

3. 

R&D and applications  development 

January  1998 
July 1997 
October  1997 
October 1997 
October  1997 

January  19989 
July 1997 
July 1997 
end 1997 

=>  completion of a first review of  complimentary  actions:  October 1997 
last half 1997 
=>  Actions under 4th Framework Programme: 
according to time 
•=>  Actions for 5th Framework  Programme: 
tables foreseen 

4. 

Creation of an appropriate interface  EC-industry 

May 1997 

A  number  of  actions  are  of  a  continuous  nature  and  will  be  reviewed  regularly  in  consultation 
with industry. 

Unless otherwise stipulated in the agreement 

this  Communication, 

With 
Communications  in the Information Society. 

the  Commission  presents 

page 11 

its  EU  Action  Plan:  Satellite 

The  Commission  underlines  its  belief  that  coherent,  joint  Actions  between  private  and  public 
partners  as  well  as  the  political  support  of  EU  Member  States,  Council,  and  European 
Parliament,  will  provide  an  important  boost  to  this  high technology  sector  vital for  employment, 
competitiveness  and control over end-to-end service provision. The Commission further  believes 
that the conditions must be created to ensure that effective competition  is created at all levels of 
the  market  in  the  satellite  sector  to  enable  the  European  Union  to  play  an  important  role  in 
putting in place the much needed global information  infrastructures  and associated services  and 
applications which are critical to the Information Society and the world's economic system. 

page 12 

The completion of the Internal Market 

A1.  The  Commission  will  step-up  efforts  to  achieve  full  implementation  of  all  EU 
legislation  relevant  for  satellite  communications.  The  Commission  will  also  request 
industry to provide regular information on the basis of a systematic  overview of all 
barriers  found  in  relation  to  the  introduction  of  satellite  communications  systems  and 
services. 

A2.  The  Commission  will  request  industry  to  identify  regulatory  barriers,  allowing  the 
Commission 
the  satellite 
communications  sector,  as well  as  report  on the effectiveness  of the  measures  taken to 
date. 

regulatory  measures  needed 

formulate 

to 

in 

A3.  The  Commission  will  request  CEPT  to  accelerate  efforts  in  the  harmonisation  of 
authorisation  conditions  and  in  harmonised  use  of  frequency  bands,  to  review  its 
current  structure  and  procedures  with  a  view  to  increase  the  efficiency  of  its 
regulatory  decisions  making  procedures  and  their  implementation.  The  Commission  will 
seek  to  improve  its  co-operative  efforts  with  CEPT  in order  to  enable  CEPT to  support 
better the EU policies. 

A4.  The  Commission  will  request  ETSI  to  review  its  overall  satellite  communications 
work  programme with the aim to ensure, whilst  allowing  innovation,  continued,  efficient 
and  appropriate,  standard  development  in accordance  with  the  priority  actions  identified 
in this Action Plan with the aim to ensuring the development  of a fully competitive  market. 

A5.  In  particular,  the  standardisation  of  advanced,  broadband  multi-media  satellite 
terminals  for  mass  market  use is an urgent  and continuing  requirement  which  needs to 
be addressed with ETSI, CENELEC and industry. 

A6.  On the  basis  of information to  be supplied by  Member  States  and the  private  sector,  the 
the 
Commission  will  continue 
International  Satellite  Organisations  and  take  the  appropriate  steps  with  a  view  to 
ensure  that  these  developments  contribute  to  the  achievement  of  a  fully  competitive 
satellite communications  marketplace. 

to  review  of  the  developments 

concerning 

The reinforcement of the European position at an international level. 

A7.  The  Commission  will  now  focus  on  the  full  implementation  of  the  commitments  of 
countries  in  the  framework  of  the  recently  concluded  WTO  Negotiations  on  Basic 
Telecommunications.  Furthermore,  the  Commission  will  carry  out,  whilst  consulting 
industry,  an  in-depth  analysis  of  trade  policy  implications  regarding  international 
satellite  communications  issues  and,  for  those  areas  where  appropriate,  make 
proposals to remove in a systematic fashion the remaining market access barriers. 
The Commission will also put forward  proposals for the co-ordination  of positions  of 
EU Member States in international fora. 

page 13 

A8.  The  Commission  will  review 

the  economic  and 
orbits/frequencies  and report to Council and Parliament. 

trade 

issues  related 

to 

A9.  The  Commission, together with  CEPT and industry, will  review the  European  strategy 
in  ITU  sectors  i.e.  standardisation,  radiocommunications,  development  on  satellite 
communications. 

A10.  The  Commission,  in  partnership  with  industry,  will  assess  on  a  systematic  basis  the 
global  market  opportunities, 
to 
technology,  and  the  role  of  potential  European-led  initiatives  and  formulate  the 
appropriate supporting political actions. 

intellectual  property  rights 

issues  relating 

A11.  The  Commission,  assisted  by  industry,  will  evaluate  the  opportunities  arising  from 
increased  political  and  technological/industrial  co-operation  between  EU  and 
third  countries 
including  the  US,  Russia,  Canada,  Japan  and  developing 
countries.  In view  of the importance to associate the developing  countries  in this  area, 
the Commission  will  also evaluate the  use of the  EUdevelopment funds.  Moreover,  the 
Commission  will  propose  the  necessary  measures  to  stimulate  a  stronger  presence  of 
Europe in international markets. 

A12.  The Commission will take the appropriate  measures to promote effective  competition  in 
this  field  at  a world 
level  and  continue  to  ensure  that  the  operation  of  global  satellite 
systems  does  not  impede  competition  on the relevant  European  markets,  in  conformity 
with Treaty. 

Reinforcement of EU R&D support and Applications  Development 

A13.  Identification  of  possible  complementary  actions  at  the  framework  programme 
level  with  Space  Agencies  notably  ESA,  industry  and  Member  States  ensuring 
complementarity  of work programmes . 

A14.  R&D actions  under the Fourth Framework  Programme and use of such actions as 
preparatory  work  for  the  Fifth  Framework  Programme  in  view  of  the  early 
implementation  of  the  recommendations  already  elaborated  on  the  basis  of  market 
requirements. 

A15.  In the  context  of the  preparation  of the  5th  Framework  Programme,  the  need  for 
pre-normative  research  in this field will  be considered  in order to assist  notably in 
the area of a multimode (terrestrial-satellite)  user terminal for broadband satellite  mobile 
applications  and  in  the  area  of  transmit-receive  broadband  terminals  to  be  used  in 
uncoordinated mode with broadband multimedia space communication systems. 

Conclusions 

A16.  To  facilitate  the  development  of  a  longer-term  vision  of  EU  satellite  communications 
policy  in  its  international  context,  the  Commission  will  ensure  an  appropriate 
interface with industry  comprising  of representatives  of relevant  industry  sectors 
(network  operators,  service  providers,  equipment  manufacturers,  content  providers, 
users  and  consumers)  in view  of  supporting  the  Commission  in the  implementation  of 
the Action Plan on the priorities and requirements for their supporting actions. 

M 

ISSN 0254-1475 

COM(97) 91 final 

DOCUMENTS 

EN 

15  16 

Catalogue number  : CB-CO-97-089-EN-C 

ISBN 92-78- 16660-X 

Office for Officiai  Publications of the European Communities 

L-2985 Luxembourg