Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the implementation of the telecommunications regulatory package
Date: 1997-05-29
Institutions: European Commission
Subjects: approximation of laws, competition, liberalisation of the market, telecommunications

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.05.1997 
COM(97) 236 final 

COMMUNICATION FROM THE COMMISSION 

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

on the  implementation  of the telecommunications  regulatory package 

Communication  from the Commission to the Council, the European Parliament, the 
Economic and Social Committee and the Committee of the Regions on the 
implementation  of the telecommunications  regulatory  package 

1. 

Background 

The  Community  telecommunications  regulatory  framework,  which  has  as  its  objective  the 
creation  of a liberalised  and  harmonised  European  market on the basis of Articles  90 and 
100a  of  the  Treaty,  is  now  nearing  completion.  A  relatively  small  number  of  directives, 
already  in  a  more  or  less  finalised  state,  remains  to  be  adopted  formally.  The  date  for  full 
liberalisation,  set for  1 January  1998, is little more than six months away, and indeed many of 
the intermediate deadlines laid down in the framework  are approaching or have passed. 

In  its  Resolution  of  21  November  19961,  the  Council  recognised  that  the  "liberalisation  of 
telecommunications  markets,  within  the  agreed  timetable,  will  stimulate  (the)  private  and 
public  investment  necessary  for  the development  of the  information  society  in Europe".  This 
would  in  turn  "support  the  promotion  of  high  level  employment  and  the  raising  of  living 
standards and quality of life in the Community". 

In this context, the Council stressed that 

"rapid  adoption  and  effective  implementation  of  the  regulatory  framework  ...  is 
crucial for ensuring the development of competition  for the benefit  of all users". 

and urged the Member States to 

"ensure  the  consistent  and  effective  transposition  of  the  ...  package  within  the 
agreed time scales". 

The  importance  of  the  1  January  1998  deadline  was  reinforced  by  the  conclusion  of  the 
agreement  in the World Trade Organisation  on basic telecommunications  services  on  15 
February  1997. Under the agreement, GATS general obligations will apply to the supply of all 
public  and  private  telecommunications  services.  The  Community's  commitment  to  open  its 
télécoms  market  in  most  EC  Member  States  by  1 January  1998  will  therefore  be  subject  to 
WTO dispute settlement rules and procedures, including telecoms-specific  disciplines. 

This  Communication  reviews  briefly  the  current  status  of  the  legislation  involved  and  the 
progress  made  to  date  in  implementing  it,  assesses  some  of  the  problems  remaining  to  be 
surmounted,  and,  finally,  indicates  how  the  Commission  intends  to  continue  its  efforts  to 
ensure full  implementation by  1  January  1998. 

1 Council  Resolution  of 21 November  1996 on new policy priorities regarding the  information  society, OJ No C 

376,  12.12.1996, p. 1 

This  Communication  deals  exclusively  with the  state of  implementation  of  EC  legislation  on 
telecommunications  liberalisation  and  regulatory  disciplines  by  the  EC  Members  States.  It 
does not  deal  with the implementation  of the commitments  made by  the EC  and  its  Member 
States in the framework  of WTO. 

2. 

The regulatory  package 

The  Community  regulatory  framework  has evolved  out  of three basic  principles,  first  set  out 
in  the  1987  Green  Paper  on  the  development  of  a  common  market  for  telecommunications 
services and equipment. These are: 

(a) 

Liberalisation  of areas under monopoly 

The  supply  of  terminal  equipment  was  liberalised  in  1988, followed  by  the  supply  of  value-
added  services, data communications  and voice  and data  services  for  corporate  networks  and 
closed  user  groups  in  1990  ("Services  Directive"2).  The  process  was  completed  by  the 
adoption of four directives3 amending the latter measure, liberalising 

the provision of satellite services and equipment ("Satellite  Directive); 

the use of cable TV networks for the provision of liberalised  services  ("Cable 
Directive"); 

the provision of mobile communications services and infrastructure  ("Mobile 
Directive"); 

the provision of voice telephony and infrastructure  ("Full  Competition Directive"). 

The  latter  directive  leaves  open  the  possibility  of  additional  implementation  periods  for  full 
liberalisation of up to five years for Member States with less-developed networks or up to two 
years  for  those  with  small  networks,  provided  they  are  needed  to  achieve  the  necessary 
structural  adjustments. 

(b) 

Harmonisation  of the European  market 

The harmonisation  legislation  lays down a body of rules for the creation of a European  market 
based  on  common  principles  for  access  to  public  telecommunications  networks  and  services 

2  Commission  Directive  90/388/EEC  of  28  June  1990  on  competition  in  the  markets  for  telecommunications 

services, OJ No  192, 24.7.1990, p. 10. 

3  Commission  Directive  94/46/EC  of  13 October  1994  with  regard  to  satellite  communications,  OJ  No  L 268, 
19.10.1994,  p.  15;  Commission  Directive  95/51/EC  of  18  October  1995  with  regard  to  the  abolition  of 
restrictions  on 
liberalised 
telecommunications  services,  OJ  No  L  256,  26.10.1995,  p.  49;  Commission  Directive  96/2/EC  of  16 
January  1996 witif regard to mobile and personal  communications, OJ No 20, 26.1.1996, p. 59; Commission 
Directive  96/19/EC  of  13  March  1996  with  regard  to  the  implementation  of  full  competition  in 
telecommunications  markets, OJ No L 74, 22.3.1996, p. 13. 

the  provision  of  already 

television  networks 

the  use  of  cable 

for 

("open  network  provision"  -  "ONP"),  a  common  regulatory  environment  and  harmonised 
standards for services and technologies. 

A  framework  for  access,  laying  down  rules  for  technical  interfaces,  tariffing  principles  and 
usage  conditions,  was  adopted  in  1990  ("ONP  Framework  Directive").  In  1992,  a  Council 
Directive  was  adopted  concerning  the  harmonised  provision  of  leased  lines. The  1995  Voice 
Telephony  Directive  extends  the  rules  on  access  and  use,  in  particular  to  the  fixed  public 
telephone  network  and the voice telephony  service, and thereby  defines  the basic elements  of 
a  universal  service.  Proposals  have  been  tabled  to  amend,  first,  the  Framework  Directive  to 
include  in  particular  a  requirement  concerning  the  independence  of  national  regulatory 
authorities, and  second, the Leased  Lines and Voice Telephony  Directives  to adjust  them to a 
liberalised  environment.  The  adaptation  of  the  Leased  Lines  and  Framework  Directives  is 
expected  to  be  agreed  in  mid  1997;  a  Common  Position  on  the  adaptation  of  the  Voice 
Telephony  Directive was agreed by the Council in March  1997. 

The  final  text  has  been  agreed  of  an  Interconnection  Directive,  which  lays  down  rules 
governing  access  for  new entrants to  existing  telecommunications  networks  for  the  provision 
of public telecommunications  services, on the basis of ONP principles. A Licensing  Directive 
adopted  on  10 April  1997 provides  for  a Community  licensing  framework  based  on  a  'light' 
regulatory  approach  designed  to  encourage  the  entry  of  service  providers  and  operators.  A 
decision  concerning  a licensing  system  for  satellite-based  Personal  Communications  Systems 
using  harmonised  licensing  conditions  has  also  been  adopted.  A  conciliation  will  shortly  be 
initiated  on a directive on data protection  and privacy,  laying down principles, on the basis  of 
common  rules  and  agreed  standards,  governing  the  confidentiality  of  communications  over 
public networks or involving the use of publicly available services. 

Three  directives  were  adopted  between  1987 and  1991  on  the  reservation  of  frequency  band 
for  the  provision  of  GSM  and  DECT  (Digital  Cordless  Telephone)  services  and  of  channels 
for ERMES (European Radio Messaging  System) services. 

As regards terminal  equipment,  a directive  was adopted  in  1991 on the mutual  recognition  of 
conformity  with  Community  essential  requirements,  and  amended  in  1993.  These  rules  were 
also  extended  to  satellite  earth  station  equipment  in  1993. A replacement  directive  based  on 
self-declaration  of conformity  with non-mandatory  standards  will be proposed  before  the  end 
of the second quarter of this year. 

(c) 

Application  of competition  rules 

In  1991 the  Commission  published  guidelines on the full  application  of EC competition  rules 
(Articles  85,  86,  and  the  Merger  Regulation)  to  the  emerging  liberalised  Community 
telecommunications  market.  In  addition  the  Commission  issued  in  1996  a  notice  on  the 
application of the competition rules to access to telecommunications  networks. 

Despite  the  fact  that  the  liberalisation  and  harmonisation  directives  are  based  on  different 
Treaty  provisions,  Articles  90  and  100a  respectively,  it  should  be  clear  that  market  opening 
and  Community  regulatory  reform  are  two  aspects  of  the  same  process.  It  is  therefore 

inevitable  that  there  will  be  a  very  tight  interlinkage  between  the  directives  adopted  under 
each of these legal bases. 

Annex  I  gives  an  overview  of  the  competition  and  harmonisation  legislation,  including 
the  main  elements  remaining  to  be  adopted,  and  sets  out  the  principal  provisions  of 
each, including key indicators, with deadlines for implementation. 

3. 

The Commission's  approach 

The  adoption  and  implementation  of  the  telecommunications  regulatory  package  have 
presented,  and  continue  to  present,  considerable  challenges.  The  Commission  has,  therefore, 
taken  great  care  to  employ  an  approach  which  is  flexible  but  which  maintains  as  its  sole 
objective  the  effective  implementation  of a body  of uniform  liberalisation  and  harmonisation 
rules  throughout  the  Union.  It  has,  in  consequence,  and  subject  to  the  constraints  on  the 
resources available, attempted a 'twin-track'  approach to ensuring compliance using 

informal  channels  to  support  the Member  States'  efforts  to  implement,  involving  bi 
lateral  meetings  (see  below),  bilateral  contacts  in  committees  (ACTE,  ONP)  and 
national capitals, and a series of  workshops/conferences, 

backed up if necessary by rapid recourse to 

the  formal  procedures  laid  down  in the  Treaty  (Article  169 - infringement  proceed 
ings, and Article  171 - enforcement  of Court of Justice judgements). 

This  approach  has  been  endorsed  inter  alia  by  the  High  Level  Group  of  national  regulators 
meeting on 25 October  1996. 

As  far  as  informal  measures  are  concerned,  the  Commission's  services  have  in  particular 
carried  out  a  programme  of  bilateral  meetings  with  the  authorities  in  each  of  the  Member 
States responsible  for  the transposition  of the  legislation  into national  law. In  some  cases  the 
National Regulatory Authority or ministerial department constituting the embryo regulator has 
been  involved.  The  object  of  these  meetings  was,  first,  to  assist  Member  States  in  the 
implementation  process; second, to carry out an assessment  of the state of  implementation 
of the regulatory package; and third, to examine the prospects for full  implementation  by 1 
January  1998. 

4. 

State of implementation 

In  arriving  at  an  assessment  of  the  state  of  implementation,  the  Commission  has  taken  into 
account a number of factors: 

(i) 
Member  States  with  less-developed  networks  or  very  small  networks  have  requested 
additional  implementation  periods  for  certain  of  the  deadlines  laid  down  in  the  Mobile  and 
Full Competition  Directives. The Commission has decided to grant additional  implementation 
periods  to  Ireland,  Luxembourg  and  Portugal.  Decisions  regarding  Greece  and  Spain  are 

pending.  These  derogations  relate  only  to  certain  provisions  of  the  competition  directives, 
however,  and  are  without  prejudice  to  the  obligation  on  the  part  of  the  Member  States 
concerned to implement on time all other provisions of the regulatory package. 

The first  priority  for  the  Commission  is to ensure the  full  and  correct  transposition  of 
(ii) 
the  legislation  into  national  law.  Given  that  a number  of  the  deadlines  for  transposition  and 
notification  to  the  Commission  under  the  package  have  not  yet  passed,  the  process  of 
monitoring this process will continue at least until the deadlines for implementation  laid down 
in the directives, which in most cases is the end of  1997, and beyond  for those Member  States 
granted additional  implementation periods. 

* 

Full  and  effective  implementation  requires,  moreover,  an  effort  on  the  part  of  the 
(iii) 
Member  States  to  ensure  that  the  measures  transposed  into  law  are  correctly  applied. 
Monitoring  of  full  implementation  calls  for  a  corresponding  judgement  on  the  part  of  the 
Commission  as  to  whether  the  measures  concerned  have  had  the  desired  effect  on  the 
operation  of  the  market.  For.example,  the  Interconnection  Directive  will  require  cost-
orientated  interconnection rates, which can be regarded  as a key element on the opening up of 
the market.  The Full  Competition  Directive,  in accordance  with the logic  of the  liberalisation 
process,  requires  that  tariff  rebalancing  be  carried  out  by  1  January  1998  to  remove  the 
distortions  previously  set up  by  the  cross-subsidisation  of  certain  areas  of  activity  by  others. 
Pending the adoption of the whole package, the Commission has begun testing the state of the 
market  against  these  and  other  key  indicators.  Work  on  this  aspect  will  naturally  increase 
in importance as 1 January  1998 approaches, and beyond. 

(iv) 
The  Commission  has  identified  a  series  of  regulatory  issues  such  as  carrier  pre 
selection,  and  carrier  selection  (see  in  particular  the  Communication  on  Numbering4), 
unbundled  access  to  the  local  loop  and  number  portability.  National  measures  addressing 
these  and  similar  matters  are  evidence  of  the  carrying  forward  of  the  liberalisation  and 
harmonisation processes in advance of any Community initiatives. 

The  Commission  is  currently  assessing,  in  the  light  of  these  factors,  the  legislation  and 
draft  legislation  communicated  to  it  by  the  Member  States;  further  verification  will  be 
necessary.  On  this  basis,  the  Commission's  assessment  of  the  current  state  of 
implementation  of the framework  and  the prospects  for  1 January  1998  is as  follows.  A 
breakdown  of  the  Commission's  view  of  Member  States'  performance  as  measured 
against  the  transposition  of  certain  key  indicators  is  given  at  Annex  II.  A  country-by-
country analysis is given in Annex III. 

As far as the objectives of the directives are concerned, the Commission's  view is that there is 
a full  commitment  on the part of all of the Member  States to give effect  to the principles  laid 
down  in  the  package,  and  indeed,  a  considerable  degree  of  progress  appears  to  have  been 
made throughout the Community  in translating that commitment  into legislative action. 

4  COM 97/203. 

As  far  as  the  transposition  of  the  package  into  national  law  is  concerned,  the  Member 
States can in the Commission's view be divided into the following  broad categories: 

those (Denmark, Finland, Sweden, UK) which have introduced a wide  measure 
of liberalisation  and harmonisation.  Apart  from  minor points remaining  to be clarified  and  in 
certain cases the need for formal  transposition of particular aspects of the directives  remaining 
to  be  adopted,  these  countries  can  be  regarded  as  having  transposed  virtually  the  entire 
package  and,  in  all  four  cases,  to  have  taken  account  of  some  of  the  additional  regulatory 
issues referred to above; 

those  (France, Germany,  The Netherlands)  where wide-ranging  measures  have 
recently  been, or are in the process of being, adoptee}, and where transposition  of the  package 
can  be  expected  by  end  1997. In  addition,  Germany  and  France  have  taken  account  in  their 
legislation of certain of the additional regulatory issues; 

those  (Austria,  Ireland,  Italy,  Luxembourg)  where,  subject  to  the  derogations 
referred  to above for  Luxembourg  and Ireland,  significant  steps to transpose  have been  taken. 
In the  case  of these  countries, the  main principles  of the package  will  have  been  transposed, 
but the national legislative timetable is tight, and considerable efforts  will be required by these 
Member  States  to  enable  the  adoption  of  all  the  secondary  legislation  necessary  to  ensure 
complete transposition by end  1997; 

those where transposition  is less advanced  for  other reasons (Belgium,  Greece, 

Portugal and Spain). 

To be taken  into account are those where full  liberalisation  is likely to be deferred  as a result 
of  circumstances  of  the  kind  for  which  additional  implementation  periods  pursuant  to 
Directives  96/2/EC  and  96/19/EC  have  been  requested  (Greece,  Ireland,  Luxembourg, 
Portugal  and  Spain  having  submitted  their  request,  the  Commission  has  so  far  granted 
derogations to Ireland, Luxembourg and Portugal). 

This  assessment  together  with  that  in  the  annexes  is  of  necessity  a  synthesis  of  widely 
diverging  factors  and  conditions  in  the  Member  States  and  of  starting  points  in  the 
liberalisation process. 

5. 

Future action 

During  the  period  leading  up to  1 January  1998, the  Commission  will  continue  its  efforts  to 
ensure full  implementation  of the regulatory  package, on the basis of the twin-track  approach 
outlined  above,  with  expedited  recourse  to  infringement  proceedings  in  the  event  of 
failure to implement in correct and timely  fashion: 

Effective  application  of national transposition  measures 

As the transposition  process is completed, the Commission  will turn its attention to  providing 
an  "operational"  assessment  of  whether  the  national  rules  in  place  are  being  applied 
effectively.  In order to do so, it will 

monitor the effectiveness  of transposition  on the basis of the key 
indicators identified  in Annex II; 

monitor the extent to which new operators and services are appearing on 
the market; 

invite market players to keep it informed  of areas where the rules are not 
being applied correctly. Any substantiated  complaints will naturally be 
followed  up as appropriate in the context of the infringement  procedure; 

monitor the adoption of advanced regulation supplementary to that contained 
in the package. 

Transparency 

The  Commission  will  continue  to  provide  the  European  Parliament  and  Council  with 
assessments  of the  ongoing  implementation  process, and  will  forward  these  to the  Economic 
and Social Committee. It also proposes to provide information  on its web site, to keep a wider 
public informed  of progress.. 

Assessment of national licensing schemes 

Under the Full Competition Directive the Member  States must notify  by  1 January  1997 their 
draft  licensing  schemes.  The  Commission  is  required  to  take  à  formal  position  on  these 
schemes before  1  July  1997. 

High Level Meeting of National Regulators and other committees 

The  High  Level  Meeting,  the  ONP  and  ACTE  Committees  and,  once  set  up,  the  Licensing 
Committee, are also appropriate fora for fostering  exchanges of  information. 

Bilaterals 

Further such meetings will be held at the initiative of the Commission or Member States. 

Internal Commission  measures 

The  Commission  has  taken  a  number  of  internal  organisational  measures  to  ensure  an 
integrated  approach, in particular the setting up of a joint team involving the relevant  services. 
These measures will if necessary be strengthened  in the period leading up to  1  January  1998. 

:;:i&II!t$&*Sll;;:;: 

This  annex  lists  the  main  provisions  of  the  regulatory  package,  with  the 
deadlines  set  in  the  Directives  for  the  communication  of  the  national 
measures  adopted,  and  highlights  certain  key  indicators  of  progress  in 
implementation, the status of which is analysed in Annex II. 

TELECOMMUNICATIONS REGULATORY FRAMEWORK 

M A IN  P R O V I S I O NS 

ADOPTED MEASURES 

LIBERALISATION 

Main  provisions 

Directive 

Date  of 
Adoption 

Deadlines  for 
communication 
of  measures 
adopted 

Services 

28.06.1990 

Liberalised  provision  of  value  added  services  and  of  data  and  voice 
services to corporate network and closed groups of users 

31 December  1990 

90/388/EC 

Liberalised provision of data communications 

31 December  1992 

Separation between regulatory and operational activities 

Satellites 

13.10.1994 

Liberalisation of satellite services and terminals 

94/46/EC 

1 July 1991 

August 1995 

Cable TV 

18.10.1995 

Liberalisation  of  the  use  of  Cable  TV  for  the  provision  of 
services 

liberalised 

1 November  1996 

95/51/EC 

Mobile 
communications 

96/2/EC 

16.01.1996 

Liberalisation of mobile communications 

15 November 1996 

All  restrictions on direct interconnection wim PSTN abroad and between 
mobile networks to be lifted 

15 November 1996 

Mobile operators to be allowed to build their own fixed infrastructure and 
to use that of third parties 

15 November 1996 
(operators allowed 
since 15.02.1996) 

Full competition 

13.03.1996 

Full liberalisation of voice telephony and  infrastructure 

1 January  1998 

96/19/EC 

Alternative  infrastructure  can  be  used  for  the  provision  of  liberalised 
services 

1 July 1996 

Member States to co*nœuntcate draft  licensing or declaration  procedures 
regarding  voice telephony and the provision of public télécommunications 
networks 

1 January 1997 

Member States to decide that a  national  scheme is necessary  to share the 
net cast of providing. Universal Service 

1 January  1997 

Member  States to publish  licensing  or  declaration procedures  for  voice 
telephony and public telecommunications networks 

1 July  1997 

Member  States  to ensure  availability of  adequate  numbers for telecom 
munications services 

1 July 1997 

Telecommunications  organisations  (TOs)  to  publish  standard  terms  and 
conditions for  interconnection 

1 July 1997 

Member States to ensure that tariff  rebalancing is completed 

1 January  1998 

10 

«WWWWWWWWWWW 

HARMONISATION 

Directive 

Date  of 
Adoption 

Main  provisions 

ONP  Framework 

28.06.1990 

90/387/EEC 

Harmonised  conditions  of  access  to  public  networks  and  services  not  yet 
opened  to  competition  (harmonisation  concerning  technical 
interfaces, 
tariffing  principles,  usage  conditions) 

Deadlinesfor 
communication 
of  measures 
adopted 

31 December  1990 

ONP  leased  lines 

5.06.1992 

Provision  of minimum set of leased  lines 

5 June  1993 

92/44/EEC 

Member  States to make available information  on leased  lines 

1 January  1993 

ONP  Voice 
Telephony 

95/62/EEC 

Member  States to ensure that offerings  continue for a reasonable period of 
time 

5 June  1993 

Member  States to ensure that, when access and usage of leased  lines is 
restricted,  this is only at ensuring compliance  with essential  requirements 

5 June  1993 

Member States to ensure cost orientation and transparency  of  tariffs 

5 June  1993 

Member States to ensure that télécoms organisations establish a cost 
accounting system 

31 December  1993 

NRAs  (National  Regulatory  Authorities)  establish  procedures  to  authorise 
TOs to refuse/interrupt  the provision of leased  lines 

5 June  1993 

NRAs to ensure that TOs adhere to the principle of non  discrimination 

NRAs  to  establish  procedures  to  authorise  télécoms  organisations  to  vary 
tariffs  and supply  conditions 

5 June  1993 

5 June  1993 

13.12.1995 

Member  States to notify  its NRAs 

13 December  1996 

Member  State  to  ensure  that  the  TOs  provide  a  fixed  public  telephone 
network  and a voice telephony  service 

TOs  to  establish  a  cost  accounting  system  which  is  suitable  for  cost 
oriented  tariffs 

TOs to respond to user connection  request with estimate date 

TOs  to  respond  to  reasonable  request  for  interconnection  from  other  TOs 
and mobile operators, and to  reasonable user requests for special  access 

NRAs  to  establish  procedures  to  authorise  the  TOs  to  refuse/interrupt 
connection 

NRAs  to  ensure supervision on interconnection  agreements 

Right to appeal to NRAs 

11 

Directive 

Date  of 
adoption 

Main  provisions 

Deadlinesfor 
communication 
of  measures 
adopted 

Licensing 

10.04.1997 

Conditions and procedure for  general  authorisation /  individual  licences to 
be published 

31 December  1997 

Appeal  procedures  to be established 

Gênerai authorisations to be used as mush as possible and to include only 
conditions to line with EC law 

Individual  licences 
- scape limited; 
- can only include conditions in line with  EC law 

No  limitation  to the number  of  individual  licences  except for  frequencies 
or for the time necessary to make available sufficient  numbers in 
accordance  with EC law (see Directive 96/19/EC) 

Fees  to cover only the administrative costs (except for scarce resources) 

Authorisation  to be granted  for  new  services 

Satellite 
(Decision) 

-  PCS 

24.03.1997 

(entry  into 
force  on the 
20th day 
after 
publication) 

Member  States  to  ensure  that  any  national  licensing  regime  for  the 
provision  of  S-PCS  services  is  "organised  in  frequency  bands"  which  are 
harmonised  by the  CEPT 

Member  States  allowed  to  attach  to  authorisations  the  same  conditions  as 
those defined  by the Licensing  Directive 

Member  States to support  a one-stop-shopping  procedure  for  licensing 

Member  States  to co-ordinate  their authorisation  procedures  in some case 

Directive 

Date  of 
Adoption 

FREQUENCIES 

Main 

provisions 

Deadlinesfor 
communication 
of  measures 
adopted 

GSM 

25.06.1987 

Reservation  of  frequency  band  for  the provision  of the  service 

1 January  1991 

87/372/EEC 

ERMES 

9.10.1990 

Reservation  of channels  for  the provision  of  the  service 

31 December  1992 

90/544/EEC 

DECT 

3.06.1991 

Reservation  of frequency  band for  the provision  of the  service 

1 January  1992 

91/287/EEC 

12 

TMEcoMmmcATiam TERMINAI SQu&mNT 

Directive 

Date of 
Adoption 

Main  provisions 

Deadlinesfor 
communication 
of  measures 
adopted 

Terminal 
equipment 

29.04.1991 

Mutual  recognition  of conformity  regarding  terminal  equipment  intended 
for connection to public telecommunications networks 

6 November 1992 

EC type  approval  procedures  based  on  CTRs  (binding)  and  harmonised 
standards (voluntary) 

CE marking 

29.10.1993 

Extension of the same rules to satellite earth station equipment 

1  May 1995 

91/263/EEC 
as amended by 
93/68/EEC 

Satellite earth 
station 
equipment 

93/97/EEC 

Decision 

Date  of 
Adoption 

EUROPEANWIDBNUMBERS 

Main  provisions 

Deadlinesfor 
communication 
of  measures 
adopted 

Emergency call 
number (112) 

91/396/EEC 

International 
access code 

92/264/EEC 

29.07.1991 

Introduction of a single European emergency call number (112) 

31 December 1992 

11.05.1992 

Introduction  of  a  standard  international  telephone  access  code  in  the 
Community 

31 December 1992 

13 

Directive 

Current 
status 

Interconnection 

Joint text 
approved by 
the 
Conciliation 
Committee on 
20.03.1997 

FUTURE MEASURES 

HARMONISATION 

Main  provisions 

Adoption 
expected 

All restrictions on interconnection between organisations authorised to 
provide public telecommunication networks and publicly available 
telecommunication services to be lifted 

end of second 
quarter 1997 

Organisations having a significant market power: 
* to meet all reasonable request for access to the network 
- to maintain separated and transparent cost accounting systems* and to 
offer cost-oriented tariffs 
- to publish an adequate reference interconnection o£fer 

Dispute resolution procedures to be put in place 

NRAs  to  ensure  ootHàiscrimination  and  to  inspect  «U  roterconnection 
agreements m their entirety 

. 

NRAs to; 
- ensure adequate availability of numbers; 
- control/publish numbering plans; 
- ensure .numbering portability between networks in all major centres of 
population ï?y \ January 2#33 

Member  States  to  establish  a  mechanism  to  share;  the  net  cost  of 
universal  service (if  universal services obligations -GSOs- represent an 
unfair burden) 

Costing  of  USOs  to  be  subject  to  transparency  and  accounting 
requirements 

Amendment 
of 
Directives  ONP 
framework 
and 
ONP leased lines 

Common 
Position: 
12.09.1996 

Conciliation 
procedure to 
start formally 
by end 
May/early 
June 

(Amendment  to  existing  directives  to  adjust  them  to  a  competitive 
environment) 

end of second 
quarter  1997 

Independence of NRAs: 
'  NRAs to be iegaliy distinct from and functionally independent of all 
organisations operating in télécoms markets; 
- effective  structural separation to be ensured in case Member States 
retain ownership or control of organisation providing: network or 
services 

NRAs may decide not to apply transparency and cqjsfrprjenfatip, n: 
- to organisations which do not have sipifirant market power 
- where sufficient  competition is in place in. the relevant market 

Member States to encourages the provision of additional types of leased 
lines 

14 

Directive 

Amendment 
of 
Directive  ONP 
Voice Telephony 

Current 
status 

political 
agreement 
reached on 
6.03.1997 

Adoptioh/CP 
expected 

common position 
expected by end 
of second quarter 
1997 

Main  provisions 

Member States to ensure afaftahftfttf  ^  affôrdàbi|ity  ofc 
- fixed tetepaone network connection and access to telephone services 
- directories services 
- public pay phones 
+ operator assistance 
- emergency services 

Member States to ensure that operators (including mobile) provide users 
with contracts and publish or give access to information 

Member  States  to  promote  quality  of  service,  and  availability  of 
itemised billing, tone dialling and selective call barring 

Member States to ensure that telecommunication  organisations  having a 
significant  market  power  do  not  deny  negotiations  for  special  network 
access 

Requirement for  cost accounting  to be  imposed only on some telecom 
munications organisations 

Consultative mechanism with users to be in place 

Data  protection 
and  privacy  for 
digital services 

Common 
Position: 
12.09.1996 

Member  State  to  ensure  security  of  services  and  network  and 
confidentiality  of communications 

end of second 
quarter 1997 

Operators  providing  a  telecommunications  services  to  take  appropriate 
measures to safeguard  securirv of  its services and right to privacy  of its 
customers 

Conciliation 
procedure to 
start formally 
by end May 

15 

This  annex  analyses  the  Commission's  view  of  the  status  of  certain  key 
indicators  of  progress  by  the  Member  States  in transposing  the  regulatory 
package as a whole. 

Nothing in the Annex should be construed as representing a definitive  legal 
assessment by the Commission of conformity  with Community law. 

16 

i l il 

Existing  directives 

Alternative  infrastructure  for 
liberalised  services  by  1.7.96 
(by  15.11.96  for  mobile 
infrastructure) 
(96/2/EC  ;  96/19/EC) 

Direct  interconnection  of 
mobile  networks  with  mobile 
and  PSTN  in  other  M Ss  by 
15.11.96 
(96/2/EC) 

Full  competition  by  1.1.98 
(measures notified  by  11.1.97) 
(96/19/EC) 

• 

voice  telephony 

• 

infrastructure  for  voice 
services 

• 

international  services 

• 

infrastructure  for 
international  services 

Availability  of  n u m b e rs  by 
1.7.97 
-  fixed 
-  mobile 
(96/19/EC; I/C  dir.) 

F u n d i ng  mechanism  for  U S O,  if 
any,  notified  to  the  Commission 
by  1.7.97 
(96/19/EC; I/C  dir.) 

T e r ms  and  conditions  for 
interconnection  published  by 
télécoms  organisations  by  1.7.97 
(96/19/EC; L/C dir.) 

Cost  accounting  system  for 
pricing  interconnection  in  place 
(96/19/EC; I/C  dir.) 

Tariff  rebalancing 
- by  1.1.98 
-  if  not,  plans  for  phasing  out 
(96/19/EC) 

PACKAGE - STATES OF KEY ÏŒBÏCATOR$ 

B 

JDK 

T> 

EL 

E 

F 

IRL 

1 

h 

NL 

A 

F 

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TJK 

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D 
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d 

d 

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D 
1.1.200 
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=> 

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1.7.199 
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D 
1.7.199 
8 

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=> 

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D 
1.1.200 
0 

D 
1.1.200 
0 

y 

• 

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Y 

d 

d 

y 

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d 

d 

y 

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=s 

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d 

d 
d 

Y 

D 

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D 

y 

Y 

• 

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Y 

Y 

Y 

Y 
Y 

n.a. 

n.a 

d 

=> 

=> 

D 

=> 

• 

=> 

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D 

n.a. 

n.a 

n.a. 

• 

• 

d 

• 

y 

D 

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D 

y 

Y 

• 

S 

• 

=> 

y 

=> 

=> 

=> 

=> 

=> 

• 

S 

y 

s 

Y 

Y 

17 

Draft  licensing/declaration 
procedures  notified  to  the 
Commission  by 1.1.97 (96/19/EC) 

Y 

Y 

d 

d 

D 

D 

=> 

=> 

D 

• 

Y 

Y 

Forthcoming directives 

; 

Independent  NRA 
(new leased lines dir.) 

with  powers  on: 
-I/C 
-  licensing 
-numbers 
- Universal  service 
- dispute  resolution 
(Licensing dir. ;I/C dir. ; new leased 
lines dir.; new voice telephony dir) 

Universal service  obligations 
defined 
Affordability  defined 
(I/C dir.;new voice telephony dir.) 

Funding  mechanism  for  USO, if 
any, in  place 
(I/C dir.) 

Cost accounting system  verified 
and  approved  by NRA 
- for  I/C 
- for  leased  lines 
-  for  voice  telephony 
(I/C dir.; new leased lines dir.; new 
voice telephony dir) 

Tariff  principles 
- for  I/C 
-  for  leased  lines 
- for  voice  telephony 
(I/C dir. ; new leased lines dir. ; new 
voice telephony dir) 

Procedures  for  allocating 
numbers 
(I/C dir.) 

Provisions  on  licensing 
(Licensing dir.) 

B 

"M' 

"w 

HKk; 

B 

"F " 

'im' 

1  ; 

h 

"lit 

\  A  \ 

• 

• 

Y 

• 

Y 

• 

• 

^> 

• 

=> 

=> 

• 
• 
• 

• 

• 

Y 
Y 
Y 
Y 
Y 

Y 

Y 

Y 
Y 
Y 
Y 
Y 

Y 

Y 

• 

Y 
Y 
=> 
Y 
Y 

=> 

Y 
Y 
Y 
Y 
Y 

Y 

Y 

=> 
=> 
=> 
=> 
=> 

=> 

=> 
=> 
=> 

=> 

=> 

JWONf" 

j  S 

UK 

Y 

• 

Y 

Y 
Y 
Y 
Y 
Y 

Y 
Y 
Y 
Y 
Y 

=> 

=> 

Y 
Y 
Y 
Y 
Y 

• 

r 

• 

Y 
Y 

Y 

• 

• 

• 

n.a. 

n.a. 

=>  . 

=> 

D 

=> 

• 

=>: 

=z> 

n.a. 

n.a. 

n.a. 

Y 
Y 
Y 

Y 
Y 
Y 

• 
• 
• 

Y 
Y 

=> 
• 

Y 

• 
Y 
Y 

Y 
Y 
Y 

=> 

=> 

=> 
• 
• 

=> 
• 
• 

=> 

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=> 

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• 
• 

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• 
• 
• 

• 
• 
• 

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Y 

Y 

=> 

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• 

=> 

• 

=> 

=> 

• 

• 

• 

• 

n.a. 

Y 

• 

=> 

Y 

=> 

• 

=> 

=> 

• 

=> 

=> 

• 

Y  = main provisions  in place 
•  = some provisions in place 
=>  = draft  measures communicated  to the Commission 

n.a. = not applicable 

D  = derogation granted 
d  = derogation  requested 

18 

Legenda 

96/2/EC: Commission  Directive amending Directive 90/388/EC with regard to personal and mobile communications. 

96/19/EC:  Commission  Directive  amending  Directive  90/388/EC  with  regard  to  the  implementation  of  full  competition  in 
telecommunications markets. 

Licensing  directive: EP and  Council  Directive on a common  framework  for  general  authorisation  and  individual  licences  in the field of 
telecommunications  services. 

I/C  directive: proposed  EP and  Council  Directive  on  Interconnection  in  telecommunications  with  regard  to  ensuring  universal  service 
and interoperability  through application  of the principles of open network provision (ONP). 

New  leased  lines  directive:  proposed  EP  and  Council  Directive  amending  Council  Directives  90/387/EEC  and  92/44/EEC  for  the 
purpose of adaptation  to a competitive environment  in telecommunications. 

New voice telephony  directive: proposed  EP and Council  Directive on the application  of ONP to voice telephony  and on  universal 
service for telecommunications  in a competitive environment (replacing directive 95/62/EEC). 

19 

This  annex  gives  a  short  assessment  for  each  Member  State  of  the 
Commission's  view  of  the  state  of  transposition  of  the  regulatory 
framework. 

Nothing in the Annex should be construed as representing a definitive  legal 
assessment by the Commission of conformity  with Community law. 

20 

BELGIUM 

Transposition 

The current framework is based on the Law of 21 March  1991, as amended by the Law of 
20 December  1995. Three Royal Decrees were adopted on 28 October  1996, under which 
a  system  for  authorising  alternative  infrastructures  for  the  provision  of  non-reserved 
services  is  established.  The  general  principles  for  the  provision  of  universal  service  are 
also laid down. Further Royal Decrees are expected in the coming months. 

Outstanding matters 

is  needed 

to  complete 

The regulatory  framework  is largely  incomplete  (with, as stated  above, only three  of the 
39  Royal  Decrees  envisaged  having  been  adopted  so  far).  Essential  further  secondary 
legislation 
framework 
(interconnection,  universal  service  financing  scheme,  new  numbering  plan).  On 
interconnection,  in particular,  no  implementing  measure  is available  nor  is  it possible  to 
foresee  whether the incumbent will publish its interconnection conditions by  1  July  1997. 
The Commission  also considers the transposition  of the existing  Leased  Lines  Directive 
to be incomplete. 

reform  of 

regulatory 

the 

the 

Some  concern  exists  regarding  Belgium's  approach  to the  regime  for  new  infrastructure 
(only existing alternative infrastructure  is liberalised and can be licensed). 

Another  outstanding  problem  concerns the National  Regulatory  Authority  (IBPT/BIPT), 
the legislation for which would not appear to endow it with the powers and independence 
necessary to carry out the range of tasks laid down in the package. 

DENMARK 

Transposition 

restructuring 

relatively  early  on 

the 
Denmark  began  work 
corresponding  legal framework,  with basic legislation being  adopted  in  1990. The  main 
liberalisation  framework  is  in place  although  some  provisions  will  not  come  into  force 
before  1  January  1998.  The  body  of  harmonisation  legislation  also  appears  to  have 
been  transposed.  An  independent  regulatory  authority  (Telestyrelsen)  has  been 
established,  the  rules governing  which state explicitly  the NRA's  independence  of  both 
operators  and the Ministry. 

the  market  and 

Outstanding  matters 

A  detailed  Interconnection  Bill  was  released  for  public  comment  in  April  1997.  Apart 
from  the  fact  that  the  Commission  has  been  consulted  on  the  interpretation  of  a 
particular  aspect  of  the  Interconnection  Directive,  there  would  appear  to  be  no 
difficulties. 

Other regulation 

Carrier  selection for  national  long-distance  and international calls  is  implemented. 

21 

GERMANY 

Transposition 

telecommunications  package.  From  1  January  1998  onwards, 

A  Law  on  Telecommunications  (TKG)  was  adopted  in  July  1996,  coming  partly  into 
force  on  1 August  1996.  This  provides  a broad  framework  for  the  transposition  of  the 
the  voice 
whole 
telephony  market  will  be  liberalised,  removing  the  remaining  exclusive  rights  of 
Deutsche  Telekom  AG.  The  TKG  establishes  a  national  regulatory  authority 
(Regulierungsbehorde)  from  1 January  1998  which  in  formal  terms  is  independent  in 
relation  to the telecommunications  operators  and  also to a certain extent  to the  Ministry 
for  Economic  Affairs.  Possible  problems  in  regards  of  the  independence  of  the  NRA 
may be caused  through the  influence  of the advisory  council,  which  in certain  areas  has 
certain  rights  of  co-decision.  Planned  licence  fees  of  up  to  DM  40  million  do  not 
reflect  the  obligation  in the  Licensing  Directive  of  cost-orientation,  and  could  have  the 
effect  of deterring  new entrants. 

Outstanding  matters 

The  secondary  legislation  necessary  to  implement  a  number  of  important  areas  of  the 
package  have  not  yet  been  adopted  (e.g.  ordinances  concerning  fees  for  licences  and 
numbers,  numbering  and  frequency  plans).  However,  these  acts  are  in preparation  and 
a detailed  timetable  for  adoption laid down. 

Other  regulation 

The  obligation  to provide unbundled  access  to  the  local  loop  is  laid  down  in the  decree 
on  access  to  networks  (NetzzugangsVO),  although  doubts  remain  as  to  the  technical 
feasibility  of  such access. 

GREECE 

Transposition 

In  October  1994,  Greece  adopted  a  new  telecommunications  law  (Law  n°  2246/94) 
establishing  the  National  Telecommunications  Committee  ("EET")  as  the  regulatory 
authority.  EET  began  to  operate  in,July  1995. The  Presidential  Decree  defining  EET's 
internal  rules  has  not  yet  been  adopted.  On  6  February  1997  the  Law  was  amended  to 
bring  into  general  use  a  declaration  procedure  for  the  provision  of  already  liberalised 
services.  A  licence  is  still  required  in  cases  where  there  is  a  need  for  access  to  radio 
frequencies,  numbers  or  satellites.  Certain  of  the  provisions  are  not,  however,  in 
conformity  with the Licensing Directive. 

The  Greek  Authorities  requested  additional  implementation  periods  on  the  basis  of 
Directive 96/19/EC, and in particular until  1 January 2003 (instead of  1 January  1998) as 
regards the abolition of the exclusive rights currently granted to OTE for the provision of 

22 

voice telephony and the underlying network infrastructure;  and until  1 July 2001  (instead 
of  1  July  1996)  for  the  liberalisation  of  alternative  infrastructure.  The  Commission 
Decision is expected for the end of May 1997. 

Outstanding matters 

initiatives  by 

Despite  recent 
the  Greek  Government,  Greece  has  accumulated 
considerable  delay  in  transposing.  In  particular,  Directives  93/97/EEC,  94/46/EEC, 
95/51/EC,  95/47/EC,  95/62/EC  and  96/2/EC  are  not  yet  transposed  in  Greece.  The 
Commission  also  regards  the  transposition  of  the  Leased  Lines  Directive  as  being 
incomplete.  In  addition,  the  granting  of  a third  mobile  licence  to  OTE  raises  problems 
concerning  its  conformity  with  Community  legislation  (in  particular  as  regards  the 
procedure). A time-table has been transmitted  to the Commission  on the  implementation 
of these directives. 

As  far  as  the  Commission  is  aware,  there  are  no  drafts  on  the  implementation  of  the 
forthcoming  directives. 

SPAIN 

Transposition 

Basic provisions are set up in the  1987 Law on Telecommunications as amended in 1992. 
By Royal Law-Decree 6/1996 adopted on 7 June  1996, the  Spanish Government  created 
a  new  regulatory  body,  the  structure  and  functions  of  which  were  laid  down  in  Royal 
Decree  1994/1996.  A  second  operator  was  created  by  Royal  Law  Decree  6/1996  and  a 
licence  granted.  A  provision  is  included  in  the  Budget  Law  of  1997  concerning  the 
liberalisation  of  the  provision  of  telecommunications  services  using  alternative 
infrastructures  from  1  January  1997. Newly-established networks are not yet liberalised. 

The  Spanish  Authorities  are  drafting  a  new  basic  bill  (to  replace  the  1987  Law).  The 
adoption of the bill is expected by the end of 1997.. 

Outstanding matters 

A considerable  quantity  of the package remains to  be transposed,  in particular  the  ONP 
Voice  Telephony  Directive.  In  addition,  the  Spanish  Government  requested  derogations 
on the basis of Community  Directive 96/19/EC. Additional  periods were requested  until 
1 January  1998  (instead  of  1 January  1997) as regards  notification  of  licensing  schemes 
for  the provision  of voice telephony  and the establishment  of public  telecommunications 
networks;  until  1 August  1998  (instead  of  1 July  1997)  as  regards  publication  and  the 
entry  into  force  of  declaration  and  licensing  procedures  for  the  provision  of  voice 
telephony  and  the  establishment  of  public  telecommunications  networks;  and  until  30 
November  1998  (instead  of  1 July  1997) to  ensure  that  adequate  numbers  are  available 
for all operators of telecommunications services 

23 

FRANCE 

Transposition 

In July  1996 the French Parliament adopted a new framework  law ("Loi de régulation des 
télécommunications", N° 96-659). The main objective  of the new legislation, which  is to 
be  supplemented  by  a  series  of  Decrees,  is  to  liberalise  the  telecommunications  market 
before  1 January  1998. The Law establishes  a new regulatory  body, the ART  ("Autorité 
Réglementaire  des Télécommunications") and secures a minimum  level of  independence 
for  ART's  board  members. ART  is  charged  with  the  implementation  of  legislation  and 
the control of the effective  application of regulation. However, in spite of the transfer  of a 
number  of  significant  competences to the new body, key  regulatory  powers remain  with 
the  Telecommunications  Minister  (granting  of  individual  licences,  establishment  of 
tariffs  for universal service). 

Outstanding matters 

The Law is generally in conformity  with the Community regulatory framework.  However 
some  aspects  are clearly  not  in line, in particular the  obligation  on  licensees to  spend  at 
least  5%  of  their  annual  turnover  on  research  and  development.  Most  of  the  individual 
decrees  implementing  the  most  important  provisions  of  the  Law were  adopted  recently; 
their  conformity  is  under  examination,  although  the  drafts  previously  submitted  appear 
largely to implement the  framework. 

Other regulation 

France has introduced a system of carrier selection based on digit codes. 

IRELAND 

Transposition 

A  National  Regulatory  Authority  (the  post  of  Director  of  Telecommunications)  was 
formally  established  in  December  1996,  but  is  not  yet  operational.  Ireland  has 
implemented the Frequencies Directives as well as the main principles of the Framework 
Directive and the Leased Lines Directive. 

Ireland  requested  additional  implementation  periods  for  certain  obligations  under 
Directive 96/2/EC and 96/19/EC, and the Commission decided on 22 November  1996 to 
them.  These  were:  1)  for  the  liberalisation  of  voice  telephony  and 
grant  certain  of 
underlying  networks:  until  1 January  2000,  2)  for  the  liberalisation  of  the  provision  of 
already  liberalised  services  on  own/alternative  networks:  until  1 July  1997  and  3)  for 
direct  international  interconnection  of  mobile  networks  with  other  networks  (mobile  or 
fixed): until  1 January  1999. 

No drafts  are available of  legislation transposing the forthcoming Directives. 

Outstanding matters 

24 

The  ONP  Voice  Telephony  Directive  has  not  been  transposed,  although  legislation  is 
currently  under  preparation,  but  without  a  set  date  for  adoption.  For  the  Terminal 
Directives,  there  are  still  no  formal  notifications  (although  the  Irish  authorities  have 
notified  informally  transposing  measures  for  the  Terminal  Directive  (Directive  91/263) 
and its amending  directive 93/68). 

ITALY 

Transposition 

Italy  is currently  engaged  in  an effort  to  remove  its past  implementational  deficit  and  to 
bring  its  legislation  in  line  with  Community  law.  Two  Bills  have  been  submitted  to  the 
Parliament  to  review  thoroughly  the  regulatory  framework  and  to  establish  a  National 
Regulatory  Authority  for  the telecommunications  and TV  sectors.  In parallel, the  Italian 
government  is in the process  of adopting  a ministerial  regulation,  based  on a mandate  by 
the  Parliament,  with  the  aim  of  transposing  those  directives  which  are  not  yet 
implemented  (Cable  TV,  Mobile  Communications,  Full  Competition,  ONP  Voice 
Telephony), together with forthcoming  Community  legislation. 

The  draft  regulation  is  expected  to  cover  the  basic  principles  of  the  "1998  package", 
including interconnection,  universal service, licensing, data protection. 

Outstanding  matters 

The  Bill  on  the  new  Authority  is  expected  to  be  adopted  by  end  May;  adoption  of  the 
draft  regulation  is envisaged  in June  1997. However,  a number  of detailed  implementing 
measures  will remain to be enacted  afterwards  (including  licensing procedures,  universal 
service  scheme)  to  render  the  new  framework  operational.  There  is  also  some  concern 
regarding  the  licensing  of  the  third  mobile  operator  (DCS  1800)  and  the  allocation  of 
frequency  (extension  band) to GSM services pursuant to Directive  87/372/EEC,  although 
solutions  appear  to  be  in  view  following  adoption  of  Decree-Law  n.  115  on  30  April 
1997. 

LUXEMBOURG 

Transposition 

The  Frequencies  Directives  (Directives  87/372,  90/544  and  91/287)  have  been 
implemented.  Further  progress  in  implementation  has  been  made  with  the  adoption  of  a 
new  framework  law  on  21  March  1997,  which  provides  a basis  for  the  transposition  of 
the  package  of  EC  Directives.  In  addition,  two  regulations  have  been  adopted  on 
terminals (including  satellite earth station equipment)  and mobile services. 

Outstanding  matters 

The  Luxembourg  authorities  have  been  granted  additional  implementation  periods  for 
certain  obligations  under  Directive  96/19/EC:  1) for  the abolition  of  exclusive  rights  for 
the provision  of voice telephony  and the underlying  network  structure, until  1 July  1998, 

25 

and  2)  for 
telecommunications  services on own and alternative infrastructure,  until  1  July  1997. 

the  provision  of  already 

lifting  of  restrictions  on 

the 

liberalised 

Regulations  are  being  drafted  on  licences,  universal^service  and  spectrum  management 
and  fees.  The  Commission's  assessment  is that  a  small  number  of  key  issues  have  not 
been addressed  in the new law. Concern also exists over the use of tendering  in the issue 
of licences, and possible  lack of powers on the part of the NRA to settle  interconnection 
disputes. 

THE NETHERLANDS 

Transposition 

to  establish  a  new 

The  Netherlands  is  in  the  process  of  reforming  thoroughly  the  current  regulatory 
framework,  based  on the  1988  "Telecommunications  Act"  n.  520  and  on  the  June  1996 
"Interim  Law",  which  was  adopted 
for 
telecommunications  infrastructure.  A  new  Telecommunications  Law  has  been  drafted 
and is expected  to be adopted  before  end  1997. The new Law should transpose  the  basic 
principles  of  existing  and  forthcoming  Community  legislation  and  introduce  a  liberal 
approach,  by  removing  all  limitations  to  market  entry  (no  licensing  requirement)  and 
simplifying  access  to  resources.  A  new  National  Numbering  Plan  has  been  recently 
approved  by  the  Minister  and  will  be  updated  regularly.  Two  national  infrastructure 
licences have been granted. 

licensing  regime 

Outstanding matters 

Secondary 
legislation  is  in  the  pipeline  to  implement  specific  aspects  such  as 
Interconnection  and  Universal  service,  and  is  due  to  be  adopted  by  end  1997.  Another 
Bill  is  currently  under  discussion  in  Parliament  concerning  establishment  of  an 
independent NRA. The NRA  will be created by detaching  a division  within the  Ministry 
and could be in place before  summer. The new law will also define  the divisions of tasks 
between  the  NRA  and  the  Ministry.  Moreover,  a  law  regarding  the  granting  of  further 
mobile  licences  which  could  be  implemented  via  auction  procedures  has  been 
communicated  to  the  Commission  for  examination.  Otherwise,  the  only  outstanding 
matter would appear to be certain minor problems relating to the Leased Lines Directive. 

AUSTRIA 

Transposition 

A  number  of  EC  issues  were  covered  in  the  1994  Telecommunications  Act  and  in 
secondary  legislation  on  services  as  well  as  terminal  equipment.  It  is  intended  to 
complete  formal  transposition  with  the  adoption  of  the  draft  Telekommunikationsgesetz 
(TKG),  which  provides  a  framework  covering  the  outstanding  matters,  including  those 
contained  in the forthcoming  directives,  and which  is now out  for  consultation. 

Outstanding  matters 

26 

The  structure  of  the  future  NRA  is  excluded  from  the  TKG  and  will  be  the  subject  of 
future  legislation,  although  its  powers  will  be  laid  down  in  the  new  law.  A  current 
concern  is  ensuring  that  the  NRA  is  endowed  with  resources  sufficient  for  its  tasks. 
Allocation  of  frequencies  for  DCS  1800  is  problematic.  Although  the  transposition  of 
the Voice Telephony  Directive  appears to address  most  of  the  issues  in the  Directive,  a 
review  will be  needed  on the basis  of  the  legislation  adopted  under  the TKG.  As  far  as 
the  Directive  on  satellite  earth  station  equipment  is  concerned,  valid  transposition 
would  appear  to require an explicit  legal act referring  to the Directive. 

Other regulation 

Issues  such  as  carrier  selection  are  in  the  process  of  evolving.  As  regards  number 
portability, it is intended to make available a suitable block of numbers in the near  future. 

PORTUGAL 

Transposition 

"Basic  Law  on 

the  Establishment,  Management  and  Exploitation  of 
The 
Telecommunications Infrastructures  and Services" (Law 88/89, adopted on  11 September 
1989),  remains  the  main  legal  instrument  covering  telecommunications.  Decree  Law 
283/89  establishes the Institute  for  Communications  of Portugal  ("ICP") as the National 
Regulatory Authority. The ICP began operations in November  1989. 

Portugal  requested  additional  implementation  periods  on  the  basis  of  Commission 
Directives  96/2/EEC and 96/19/EC. By Decision adopted on  12 February  1997, Portugal 
was  authorised  to  postpone  until  V  January  1999 the  lifting  of  restrictions  on  the  direct 
interconnection  of  mobile  telecommunications  networks  with  foreign  networks;  until  1 
January  2000  for  the  abolition  of  the  exclusive  rights  currently  granted  to  Portugal 
Telecom as regards the provision of voice telephony and the establishment  and provision 
of  public  telecommunications  networks;  and  until  1  July  1997  for  the  lifting  of 
restrictions  on  the  provision  of  already  liberalised  telecommunications  services  on 
alternative  infrastructures. 

Outstanding matters 

The  Portuguese  Authorities  notified  to  the  Commission  Decree-Law  198/94  and 
Ministerial  Decision  ("portaria")  n°  1318/95  as  transposition  measures  for  the  Leased 
Lines  Directive  (92/44/EEC  ).  The  Commission  considers  that  this  transposition  is 
incomplete. By  Ministerial  Decision  ("portaria")  n°477/96, Portugal  formally  liberalised 
the  provision  of  voice  telephony  services  to  closed  user  groups.  The  Commission  is  of 
the view that  the  licensing requirements  imposed  by this  Decision  are not  in  conformity 
with Community law. 

FINLAND 

Transposition 

27 

Finnish legislation appears to comply broadly with existing EC Directives. A completely 
new  Telecommunications  Act  has  been  proposed  which  is  intended  to  replace  the 
Telecommunications  Act  of  1987  in  its  amended  version.  The  new  Act  will  be  adopted 
soon  and  is planned  to  enter  into  force  in June  1997. The  complete  overhaul  of  the  law 
in  order  inter  alia  to  meet  the  EU's  harmonisation 
was  considered  necessary 
requirements.  The  law  also  brings  Finnish  legislation  in  line  with  the  EU  legislation 
remaining  to  be  adopted.  The  draft  law  takes  into  account  in  particular  the  main 
principles of the Interconnection Directive. 

Outstanding matters 

Most  outstanding  problems  appear  to  be  resolved  by  the  new  draft  law,  and  the 
subsequent decisions/regulations that will be issued under it. 

Other regulation 

Finnish  legislation  has  addressed  certain  regulatory  issues  in  advance  of  EU  legislation. 
In  particular,  automatic  operator  pre-selection  has  been  introduced,  as  well  as  selection 
on  a  call-by-call  basis  as  referred  to  in  the  Communication  of  the  Commission  on 
Numbering. 

SWEDEN 

Transposition 

All  the  EC  Directives  currently  in  force  have  been  transposed  on  time.  The  legislation 
appears  to  be  broadly  in  conformity  with the  Directives,  and  the  key  issues  have  in  the 
main  been  transposed  correctly,  subject  to  verification  of  certain  details.  Many  of  these 
are  settled  in 
draft  amendments  to  the  Telecommunications  Act  and  secondary 
legislation currently before  the Swedish Parliament. The draft  also takes  into account the 
principles  of  the  recently-finalised  Directives,  in  particular  the  Interconnection  and 
Licensing Directives. 

Outstanding matters 

An  outstanding  problem  concerns  the  re-allocation  of  frequencies  to  enable  GSM  to 
occupy the whole band allocated to it in accordance with commercial demand as required 
in the  GSM frequencies  Directive  87/372/EEC. A solution to the problem  is expected  in 
the near  future. 

Other regulation 

Work is ongoing on a numbering policy which would  introduce number portability  and a 
competitively  neutral  way  of  gaining  access  to  operators.  The  new  draft  law  introduces 
accounting separation for the local loop. 

UNITED KINGDOM 

Transposition 

28 

The United  Kingdom  has transposed  a large majority  of the existing  EC  Directives.  The 
United  Kingdom  is  also  well  ahead  with  regard  to  transposition  of  forthcoming 
Directives. The main principles  of the forthcoming  Interconnection  Directive  are already 
in place in BT's  licence conditions, even though  some  further  changes appear  necessary. 
A  Statutory  Instrument  is  expected  in  the  early  autumn.  The  transposition  of  the  other 
forthcoming  Directives  (the  Licensing  Directive,  the  Directive  amending  the  Leased 
Lines  Directive  and  the  Framework  Directive,  and  the  Directive  amending  the  Voice 
Telephony  Directive)  appears  to  require  some  minor  legislative  changes,  but  no  major 
problems are expected. 

29 

Outstanding  matters 

The  UK  government  has  requested  and  been  granted  a  deferment  of  certain  of  its 
obligations  under  the  ONP  Leased  Lines  Directive:  1)  for  3  years  of  the  obligation  to 
provide a minimum  set of leased  lines under Article 7.1 as regards BT and Kingston; and 
2)  for  5 years  for  the tariff  and  cost-accounting  obligations  under  Article  10.1  and  10.2 
as  regards  Mercury.  Furthermore,  the  UK  authorities  have  not  formally  notified  any 
transposing  measures  for  the  Voice  Telephony  Directive.  However,  draft  regulations 
implementing  the Voice Telephony  Directive were recently  sent for  consultation,  and the 
intention is that the regulations will be in force  in the summer. 

Other  regulation 

The UK authorities have often  defended  "easy access" (i.e. the use of 'smart phones'  with 
stored digits) rather than equal access, as proposed  in the Communication  on Numbering, 
that  represents  a  balance  between  encouraging  network  competition  and 
since 
encouraging  competition  in  services.  A  cost-benefit  analysis  carried  out  by  OFTEL  in 
1994 showed that the additional  benefits  of dialling parity  and presubscription  would  not 
outweigh  the  costs of introducing  it. The UK  authorities  also  claim  that  the  introduction 
of access to the copper  loop (i.e. direct access to each  subscriber) would  not  do  anything 
to  promote  local  competition  in  the  UK,  and  could  jeopardise  the  development  of 
competition already under way (alternative  infrastructure). 

30 

ISSN 0254-1475 

COM(97) 236 final 

DOCUMENTS 

EN 

15  08 

Catalogue number  :  CB-CO-97-262-EN-C 

ISBN  92-78-20769-1 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg