Opinion of the Committee of the Regions on the 'Proposal for a European Parliament and Council Decision on the coordinated introduction of mobile and wireless communications (UMTS) in the Community'
Date: 1998-09-17
Institutions: European Committee of the Regions
Subjects: approximation of laws, communications systems, harmonisation of standards, information network, telecommunications, transmission network

2.12.98

EN

Official Journal of the European Communities

C 373/23

Opinion of the Committee of the Regions on the ‘Proposal for a European Parliament and
Council Decision on the coordinated introduction of mobile and wireless communications
(UMTS) in the Community’

THE COMMITTEE OF THE REGIONS,

(98/C 373/04)

having regard to the proposal for a European Parliament and Council Decision on the
co-ordinated introduction of mobile and wireless communications (UMTS) in the Community
[COM(1998) 58 final — 98/0051 (COD)] (1);

having regard to the Council Decision of 24 March 1998, in accordance with the first paragraph
of Article 198c of the Treaty establishing the European Community, to consult the Committee
on the subject;

having regard to the Bureau Decision of 15 July 1998 to instruct Commission 3: Trans-European
Networks, Transport and the Information Society to draw up the relevant opinion;

having regard to the draft opinion (CdR 159/98 rev.) adopted by Commission 3 on 7 July 1998
(rapporteur: Mr Nordström),

at its 25th plenary session of 16 and 17 September 1998 (meeting of 17 September) adopted
unanimously the following opinion.

1.

Introduction

2. Background

1.1.
The Commission proposal lays down conditions
with a view to the coordinated introduction by Member
States of the third generation mobile and wireless
communications (UMTS) in the European Union on the
basis of the existing European Union legal framework.
UMTS will offer users a wireless access to the Internet
and other multi-media services in addition to mobile
telephony and messaging services already available
today.

1.2. On 15 October 1997 the Commission presented
a Communication on the strategy and policy orientations
with regard to the further development of mobile and
wireless communications (UMTS). This communication
reported on the consultations with Member States and
sector players on the basis of a previous communication
of 29 May 1997 and set out an action plan for creating
a favourable environment for the development of UMTS.

This decision proposal

1.3.
is a response to the
Council’s invitation to the Commission ‘to submit by
early 1998, a proposal for a European Parliament and
Council Decision which would enable orientations to
be established on the substance of the issue and facilitate
within the existing Community legal framework the
early licensing of UMTS services and, if appropriate and
on the basis of the existing repartition of competencies,
in respect of coordinated allocation of frequencies in the
Community and pan-European roaming’.

The 1994 Green Paper on mobile and personal
2.1.
communications already stressed the importance of the
future development of mobile and personal communi-
cations in the Community and at global level. The
Community has played a major role in the development
of the second generation of mobile communications
including GSM and related digital communications
services; this is now a great market success with more
than 70 million users in more than 110 countries. Mobile
communications used to connect computers and to
access the Internet as well as satellite-based personal
communications
systems are also appearing and
developing against the background of full opening to
competition of telecommunications markets in most
Member States on 1 January 1998.

2.2.
Building on these developments, the communi-
cations industry is developing a strategic vision on the
next generation of digital mobile systems referred in
Europe as the Universal Mobile Telecommunications
System (UMTS). Details of future service concepts and
user requirements therefore need to be considered in
order to formulate regulatory, frequency and standard-
ization responses at a Community and national level.

(1) OJ C 131, 29.4.1998, p. 9.

2.3.
The European market for cellular mobile services
including UMTS is expected to reach in the year 2005
over ECU 100 billion in annual revenue with some

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2.12.98

200 million subscribers. The global market is expected
to grow even faster, in particular in Asia. UMTS should
lead to the creation of tens of thousands of new jobs in
the Community in a highly advanced and strategic sector
of the economy.

technological progress and work done at the ITU and
in the industry. A clear definition of UMTS will be of
great help in facilitating the harmonization of UMTS in
the European Union.

The first phase of UMTS development will lead

2.4.
to the introduction of UMTS services by 2002.

3.2.3.
nated authorization by Member States.

Article 3 outlines the key principles of coordi-

2.5.
A strategy for the introduction of UMTS in the
European Union, taking into consideration the need to
promote the UMTS standard as a key element of
the recommendation for the next generation mobile
communications (named IMT-2000),
is currently in
preparation at the International Telecommunications
Union (ITU) for implementation in the year 2000: the
agreement reached in ETSI on 29 January 1998 on the
UMTS radio interface technology now positions UMTS
as a strong candidate for acceptance as a global standard
in this global context.

3. Gist of the proposal

3.1. Aims and objectives

3.1.1.
The purpose of the decision is to provide
without delay at Community level for specific Member
State measures regarding the harmonized introduction
of UMTS in the European Union; the Licensing Directive
or individual action by Member States are not sufficient
for this purpose.

A European Union decision is considered to be
3.1.2.
the most effective way to ensure harmonized and rapid
introduction of compatible UMTS services so as to
secure Europe-wide roaming of future UMTS services
through the timely and Europe-wide availability of
frequency spectrum for UMTS as well as common, open
and internationally competitive standards to ensure the
development of Community-wide and pan-European
services.

3.1.3.
This decision extends the harmonization pro-
cess of the Licensing Directive, which involves the CEPT
(European Conference of Postal and Telecommuni-
cations Administrations) and comitology. This will
apply to both general authorizations and to individual
licences. The decision also requires that licences be
based on European standards developed by the ETSI
(European Telecommunications Standards Institute)
where available.

3.2. Summary and content of the proposed decision

3.2.1.
decision.

Article 1 defines the basic purpose of the

3.2.2.
Article 2 contains the definition of UMTS.
Orientations on the substance of the issue are required
by the Council. UMTS is a new generation of services
which needs to be defined taking into consideration

3.2.4.
Article 3.1 requires Member States to take all
actions necessary in order to allow the harmonized
provision of UMTS services on their territory by
1 January 2002 at the latest; Member States will have to
establish authorization systems by 1 January 2000.

3.2.5.
Article 3.2 provides for frequency harmon-
ization through CEPT and in reference to European
standards developed by the ETSI and in particular a
common, open and internationally competitive air-
interface standard. Moreover, licences need to support
roaming throughout the Community.

3.2.6.
Article 3.3 requires that the basic characteristics
of UMTS as described in Annex I be required by Member
States when granting licences.

Article 3.4 provides for a safeguard clause in
3.2.7.
the case of incompatibility of systems and lack of
sufficient frequency spectrum to accommodate all sys-
tems: Member States will have to coordinate their
authorization procedures in order to authorize compat-
ible UMTS services in the Community.

3.2.8.

Article 4 covers roaming rights and obligations.

3.2.9.
Article 4.1 requires Member States to ensure
that organizations providing UMTS networks have
rights and obligations to negotiate roaming agreements
with other similar organizations to ensure seamless
Community-wide coverage.

3.2.10.
Article 4.2 allows Member States to take
action, including the promotion of agreement among
operators to ensure coverage of less populated areas,
within the limits of Community law.

Article 5 establishes cooperation with CEPT.
3.2.11.
Mandates will be granted to CEPT/ECTRA and CEPT/
ERC to harmonize frequency use and conditions
attached to authorizations for UMTS networks and
services. A timetable is provided in Annex II. On the
completion of the mandates,
it shall be decided in
accordance with the type II b comitology procedure
whether the result of the work done pursuant to the
mandates shall be made applicable in the Community.
Article 5.3 provides for a safeguard in the event of delay
in the process.

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3.2.12.
Article 6 provides for cooperation with the
ETSI, where necessary, to promote a common and open
standard for the provision of compatible UMTS services,
taking into account the global environment at the
International Telecommunications Union.

3.2.13.
Article 7 establishes the comitology pro-
cedure. The committee will be the licensing Committee
created by the Licensing Directive 97/13/EC.

3.2.14.
Article 8 provides that the Commission shall
regularly inform the committee on the results of its
consultations and that the committee encourages the
exchange of information between the Commission and
the Member States on UMTS.

3.2.15.
Article 9 covers international aspects. The
Commission shall take all necessary measures to facili-
tate the introduction of UMTS services in third countries
and the free circulation of UMTS equipment. It shall seek
implementation of existing international agreements and
may ask for specific mandates for negotiation of new
agreements.

Article 10 requires Member States to provide
3.2.16.
all information requested by the Commission for the
implementation of the decision.

3.2.17.
regarding confidentiality.

Article 11 contains

standard obligations

3.2.18.
remain valid for a period of four years.

Article 12 provides that the decision will

3.2.19.
Article 13 imposes a reporting obligation on
the Commission to the Council and the Parliament after
two years.

3.2.20.
regarding implementation by Member States.

Article 14 contains the standard provision

3.2.21.
addressed to the Member States.

Article 15 provides that the decision shall be

4. COR comments

4.1.
The Committee of the Regions welcomes the
Commission proposal providing for the effective, far-
sighted exploitation of UMTS within the Community.
Given the pace of technological change in this field, it is
particularly important to give the flexibility needed to
update the proposal should future circumstances so
demand.

4.2.
UMTS will play an important role for the general
public and for companies, and — not least — for public
authorities which provide important services to the
general public.

4.3.
UMTS will make it possible to disseminate
information and communication, independently of fixed
line installations, and thus reach peripheral groups and
areas which have proved expensive to service with
traditional technology. The Committee of the Regions
feels it is particularly important to highlight the UMTS
service as just one of the many ways of facilitating the
provision of services to, and development of, all regions
and municipalities within the European Union.

4.4.
The Committee of the Regions would particu-
larly emphasize the importance of the Commission’s
assertion in the 33rd recital that ‘the implementation of
UMTS systems and services should take into consider-
ation the needs of potential groups of users working in
services of public interest (health, education, transport,
environment, etc.)’. These services are largely run by
regional and local bodies.

4.5. National governments or regions, according to
the level at which authority presently lies are expected
to be responsible for licensing UMTS services, and this
should make it possible to ensure that the operator will
guarantee coverage for sparsely populated areas at
reasonable prices. The Committee of the Regions feels
this is a particularly important right, and that follow-up
provisions should be included to assess whether the
right has been respected in practice.

4.6.
The licensing authority should see to it that
competition is established in the multimedia and Internet
services market. This applies to both operators and
technology, so that the services can be brought to as
many people as possible with transparent pricing.

The Committee of the Regions would also point
4.7.
out that the UMTS licensing procedure should enable
individual countries to give priority to requests for
authorization from companies and organizations which
are called upon to meet the public communication needs
of regional and local bodies. Otherwise, the supply of
information and communication services might end up
being concentrated on large centrally located companies
and organizations.

4.8.
The Committee of the Regions would also point
out that regional and local bodies are potentially major
users of UMTS services. In order to provide them with
cost-effective solutions, it is important to have sufficient
competition in the various regions and local areas of the
Community, and to avoid local or regional monopolies.
The Committee of the Regions calls for a licence
allocation system which will not raise the price of the
licence unnecessarily.

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4.9.
Finally, the Committee of the Regions would
emphasize that the pace of technological change is such
that new technology is constantly being introduced;
consequently, there is a continuous need for standard-
ization. In connection with this ongoing process, it is

important that the Committee of the Regions — which
represents the general public and political bodies at local
and regional level — should continue to be involved at
an early stage.

Brussels, 17 September 1998.

The President

of the Committee of the Regions

Manfred DAMMEYER

Opinion of the Committee of the Regions on the ‘Green Paper on the convergence of the
telecommunications, media and information technology sectors and the implications for
regulation: Towards an information society approach’

THE COMMITTEE OF THE REGIONS,

(98/C 373/05)

having regard to the Green Paper on the convergence of the telecommunications, media and
information technology sectors, and the implications for regulation: Towards an information
society approach (COM(97) 623 final);

having regard to the decision taken by the European Commission on 5 December 1997, under
the first paragraph of Article 198c of the Treaty establishing the European Community, to
consult the Committee of the Regions on the matter;

having regard to the decision taken by the Bureau of the Committee of the Regions on 13 May
1998 to instruct Commission 3 — Trans-European Networks, Transport, Information Society
— to draw up the relevant opinion;

having regard to the draft opinion (CdR 149/98 rev) adopted by Commission 3 on 7 July 1998
(rapporteurs: Mr Koivisto and Mr Nash),

adopted unanimously the following opinion at its 25th plenary session of 16 and 17 September
1998 (meeting of 17 September).

The Committee of the Regions

general social objectives; these objectives will undoubt-
edly accentuate the need for competition legislation;

considers the launch of a debate on the develop-
1)
ment of regulation in response to convergence to be of
the utmost importance;

endorses the Commission’s view that regulation

2)
should be kept to the bare minimum;

3)
believes that extensive international standard-
ization and the global competition it leads to is a
better option from the regional standpoint than market
protection based mainly on pan-European standards
and regulation;

notes that, while convergence entails risks for

5)
regions, it offers new opportunities for active players;

6)
in assessing the effects of convergence, draws
attention to the existence of large regional disparities as
regards media and infrastructure, a factor which does
not receive adequate attention in the green paper;

points out that the green paper places too much
4)
emphasis on market development and not enough on

7)
notes that it is considers the threat posed by
convergence to content production in Europe to be a
cause for serious concern;