Communication from the Commission to the Council and for information to the European Parliament, the Economic and Social Committee and the Committee of the Regions on the implementation and functioning of the mobile communication frequency directives
Date: 1998-10-09
Institutions: European Commission
Subjects: national implementing measure, new technology, radio telecommunications, waveband

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 09.10.1998 
COM(1998) 559  final 

COMMUNICATION FROM THE COMMISSION 

To  THE COUNCIL 

AND FOR INFORMATION TO THE EUROPEAN  PARLIAMENT, 

THE ECONOMIC AND SOCIAL  COMMITTEE 

AND THE COMMITTEE OF THE REGIONS 

ON THE IMPLEMENTATION AND FUNCTIONING 

OF THE MOBILE COMMUNICATION FREQUENCY DIRECTIVES 

TABLE  OF  CONTENTS 

1. 

INTKOIH ICTION 

2. 

COMMUNITY  MEASURES  IN THE AREA  OF RADIO  FREQUENCIES 

2.1 
2.2 
2.3 
2.4 

FREQUENCY  DIRECTIVES 
FURTHER  DEVELOPMENTS  IN CO-ORDINATION  01" I'RI.QUENCIES 
OTHER COMMUNITY  MEASURES CONCERNING  MOBILE COMMUNICATIONS 
EVOLUTION TOWARDS THIRD GENERATION MOBILE COMMUNICATIONS SYSTEMS 

3. 

DIRECTIVE  87/372/EEC 

3.1  BACKGROUND 
3.2 

CURRENT SITUATION 

3.2.1  Market Development 
3.2.2 
.?. 2.3 
3.2.4 

Impact of Frequency Directive on the Market 
Spectrum Management and A vailahility 
Transposition/Implementation issues 

3.3 

SIGNIEICANT  ISSUES 

4. 

DIRECTIVE  90/544/EEC 

4.1  BACKGROUND 
4.2 

CURRENT SITUATION 

4.2.1  Market Development 
4.2.2 
4.2.3 
4.2.4 

Impact of the Frequency Directive 
Spectrum A vailahility and Management 
Transposition/Implementation issues 

4.3 

SIGNIEICAN TISSUES 

5. 

DIRECTIVE  91/287/EEC 

5.1  BACKGROUND 
5.2 

CURRENT SITUATION 

5.2.1  Market Development 
5.2.2 
5.2.3 
5.2.4 

Impact of the Frequency Directive 
Spectrum Management and A vailahility 
Transposition/Implementation issues 

5.3 

SIGNIEICANT  ISSUES 

6.  CONCLUSIONS 

(iENEKAl 
IMPLEMENTATION 

6.1 
6.2 
6.3  On IER  ISSUES: SPECTRUM  MANAGEMENT,  LICENSING  AND SAIETYOI'  FREQUENCY USAGE 
6.4 
6.5 
6.6 

PARTICULAR-  (JSM 
PARTICULAR - ERMES 
PARTICULAR - DECT 

ANNEXES 

ANNEX  l:  COUNCIL DIRECTIVE 87/372/EEC:  NATIONAL  REGULATORY  FRAMEWORKS 

Table I 
Table 2 

ANNEX 2: COUNCIL DIRECTIVE 90/544/EEC: NATIONAL  REGULATORY  FRAMEWORKS 

Table 3 

ANNEX 3:  COUNCIL DIRECTIVE 91/2S7/EEC: NATIONAL  REGULATORY  FRAMEWORKS 

J-

1 

2 

2 
4 
5 
7 

7 

7 
7 
7 
8 
9 
10 
12 

13 

13 
13 
13 
15 
15 
15 
16 

17 

17 
17 
17 
IS 
IS 
19 
19 

20 

20 
20 
21 
23 
23 
23 

24 

25 
29 
35 

38 
43 
46 

1. 

INTRODUCTION 

In the  last  decade mobile communications  has  arguably  been  the  most  dynamic  market  in 
the  telecommunications  sector.  Analogue  and  digital  cellular  telephony,  paging  and 
cordless  telephony  are  now  an  integral  part  of  developed  telecommunications  markets. 
And  all 
in  mobile 
telecommunications. 

to  continued  and  sustained  growth 

trends  point 

the  market 

Of particular  note  has been  the world-wide  success of the GSM  family  (GSM,  DCS  18(M), 
IX\S  l()(H))  with  220  GSM  networks  in  operation  in  1()6  countries  with  more  than  44 
million  users. 

Whilst  GSM  has  swept  the  world,  the  growth  of  the  ERMES  paging  system  and  the 
DECT  systems  has  been  much  less  dramatic.  Substantial  regional  variation  between  the 
far  East,  the  TAJ and  the  USA  can  be observed  in the paging  market,  with  Europe  lagging 
behind  Far  Eastern  countries.  Cordless  telephony,  including  DECT,  is  now  well 
established  and  could  be  on  the  verge  of  substantial  growth,  though  competing 
technologies  may contain  this  growth. 

Further  expansion  in  the  mobile  market  is to be  expected  within  the  next  few  years  with 
the 
introduction  of  a  third  generation  mobile  system  UMTS  (Universal  Mobile 
Telephony  Services). 

This  Communication: 

• 

reports  on  the  implementation  and  functioning  of  the  three  Council  Directives  which 
reserved  frequency  spectrum  for  the co-ordinated  introduction  of GSM1,  ERMES2  and 
DECT3  and  reviews  the  extent  with  which  Member  States  have  complied  with  the 
requirements  of the  Directives; 

•  assesses  the  impact  of  the  frequency  directives  on  the  development  of  the  markets  for 

each  of these three  technologies. 

•  considers  additional  action  needed  to ensure  full  compliance  of the  national  regulatory 
framework  with  the  requirements  of  the  directive,  in  order  to  further  encourage  the 
development  of the  market. 

Following  this  Communication,  the  Commission  will  initiate  a  wide  discussion  on  the 
appropriateness  of  the  current  regulatory  framework  for  frequency  allocation  in  the 
Community,  with  a  view  to  considering  the  need  for  additional  Community  measures  in 
the area, where  appropriate. 

Council  Directive  87/372/EEC  (GSM)  of  25  June  1987  on  the  frequency  bunds  to  be  reserved  for  the 
co-ordinated  introduction  of  public  pan-1 European  cellular  digital  land-based  mobile  communications 
in the  Community. 

Council  Directive  90/544/EEC  (ERMES)  of 9 October  1990 on  the  frequency  bands  designated  for  the 
co-ordinated  introduction  of pan-European  land-based  public  radio  paging  in the  Community. 

Council  Directive  91/287/EEC  (DECT)  of  3  June  1991  on  the  frequency  bands  to  be  designated  for 
the  co-ordinated  introduction  of  digital  European  cordless  telecommunications  (DECT)  into  the 
Community. 

A 1 

2.  COMMUNITY  MEASURES  IN THE  AREA  OF  RADIO  FREQUENCIES 

2.1 

Frequency  Directives 

Fostering  the  development  of  mobile  services  has  always  been  a  key  issue  of  the 
European  Community's  policy  for  telecommunications.  Initiatives were  launched  as early 
as  1987  to promote  the Community-wide  introduction  of digital  cellular  communications 
systems,  of  digital  radio-messaging  systems,  and  of  digital  cordless  communications. 
Three  Recommendations  have  been  adopted  by  the  Council  promoting  the  co-ordinated 
introduction  of  services  based  on  these  systems,  while  the  Commission  has  used  its 
powers  to propose  three  Directives  reserving  frequency  band  for  the same  services,  which 
have  been  adopted  by  the  Council.  The  Directives  do  not  link  frequency  reservation  to  a 
specific  technology  to  be  applied.  They  only  have  as  objective  to  reserve  frequency 
necessary 
introduction  of  modern  cellular 
communications  and  paging. 

for  a  co-ordinated  Community-wide 

All  these  measures  can  be described  as  follows:-

•  Council  Recommendation  of  25  June  1987 on  the co-ordinated  introduction  of  public 
pan-European  cellular  digital  land-based  mobile  communications  in  the  Community4, 
Council  Resolution  of  14  December  1990  on  the  final  stage  of  the  co-ordinated 
land-based  mobile 
introduction 
communications  in  the  Community5,  accompanied  by Council  Directive  87/372/EEC 
of  25  June  1987  on  the  frequency  bands  to  be  reserved  for  the  co-ordinated 
introduction 
land-based  mobile 
communications  in the  Community6. 

pan-European 

pan-European 

cellular 

cellular 

digital 

digital 

public 

public 

of 

of 

The  Directive  is  aimed  at  ensuring  reservation  of  adequate  frequency  in  the  900  MHz 
band  for  the  introduction  of  public  pan-European  cellular  digital  land-based  mobile 
the  Community  which,  under  Council  Recommendation 
communications 
87/371/EEC of  25  June  1987, should be started by  1991 at the  latest. 

in 

In  particular,  Article  1(1)  of  the  Directive  requires  Member  States  to  ensure  that  the 
905-914  and  950-959  MHz  frequency  bands  (often  referred  to  as  "core  band")  or 
equivalent  parts  of  the  band  mentioned  in  paragraph  2  are  reserved  exclusively  for 
CJSM services  by  1 January  1991. Under  Article  1(2), Member  States  shall  ensure that 
the  necessary  plans  are  prepared  for  GSM  to  be  able  to  occupy  the  whole  of  the  890-
915  and  935-960  MHz  bands  according  to commercial  demand  as quickly  as  possible. 
No  deadline  is set out  concerning  the  latter obligation.  Member  States  were  given  18 
months  after  notification  of  the  Directive  to  bring  into  force  the  provisions  necessary 
to comply  with  the  Directive, and  were requested  to inform  the Commission  thereof. 

•  Council  Recommendation  of  9  October  1990  on  the  co-ordinated  introduction  of 
land-based  public  radio  paging  in  the  Community7,  coupled  with 

pan-European 

4  OJn. LI 96, 17.7.1987, page 81. 

5  OJn. Cn. 329, 31.12.1990, page 25. 

6  OJ n. L 196, 17.7.1987, page 85. 

7  OJn. L 310 of 9.11.1990, page 23. 

Council  Directive 90/544/EEC  of 9 October  1990 on the frequency  bands  designated 
for  the co-ordinated  introduction  of pan-European  land-based  public  radio  paging  in 
the Community**. 

The  Directive  is  aimed  at  ensuring  adequate  frequency  band  in  the  169.4 to 169.8 
MHz  range  for the provision  of pan-European  land-based  radio  paging  service  which, 
under  Council  Recommendation  90/543/1 iIIC of 9 October  1990,  should  be started by 
31  December  1992 at  the latest.  In  particular.  Article  2(1)  of the  Directive  requires 
Member  Stales,  in  accordance  with  CEPT  Recommendation  T/R  25-07,  to  give 
protection  and priority  to four  channels  in the 169.4 to  169.8  MHz range  for the pan-
European  land-based  radio  paging  service  by 31  December  1992 at the latest.  These 
four channels  should  be,  preferably: 

•  169,6 MHz 

•  169.65  MHz 

•  169,7  MHz 

•  169.75  MHz 

Under  Article  2(2) Member  States  shall  ensure  that  plans  arc prepared  as quickly  as 
possible  to enable  ERMES  services  to occupy  the whole  of  the  169.4  to  169.8  MHz 
band  (i.e.  16  channels)  according  to  commercial  demand.  No  deadline  is  set out 
concerning  this  obligation.  Member  States  were 
requested  to  bring  into  force  the 
provisions  necessary  to comply  with  the Directive by 18 October  1991. 

Council  Recommendation  of 3 June  1991  on the co-ordinated  introduction  of digital 
European  cordless  telecommunications  (DECT)  into  the Community9,  coupled  with 
Council  Directive  91/287/EEC  of  3  June  1991  on  the  frequency  bands  to  be 
designated 
cordless 
telecommunications  (DECT)  into the  Community10. 

introduction  of  digital  European 

the  co-ordinated 

for 

The  Directive  is aimed  at ensuring  adequate  band  in the 1880-1900  MHz  range  for the 
provision  of  DECT  services  which,  according 
to  Council  Recommendation 
91/288/EEC  of 3 June  1991",  should  be  implemented  by 31  December  1992 at the 
latest. 
In  particular,  Article  2(1)  of  the  Directive  requires  Member  States,  in 
accordance  with  CEPT  Recommendation  T/R 22-02,  to designate  the frequency  band 
1880-1900  MHz  for digital  European  cordless telecommunications  by  1 January 1992. 
In accordance with  the CEPT  Recommendation,  DECT shall  have a priority  over  other 
services  in the same  band  and be protected  in the designated  band.  Under  Article 
3(1)  Member  States  were  requested  to  bring  into  force  the provisions  necessary  to 
comply  with the Directive by 31 December  1991, and inform  the Commission  thereof. 

K  O J n.  I,  310 of 9.11.1990,  page 28. 

k>  OJ n. L  144 of  8.06.1991,  page 47. 

10  OJ n. L  144 of  8.06.1991,  page 45. 

11  OJn.  L  144 of,  8.06.1991, page 47. 

in  a  wider  European  context,  the  application  of  three  Directives  have  been  extended  to 
CEPT countries by  Decisions adopted  by the CEPT/ERC  in  199412. Moreover, in  1997 a 
further  ERC  Decision  identified  the  "extended  bands"  to  be  used  for  GSM  when 
additional  spectrum  is needed beyond the frequency  band mentioned  in the previous ERC 
Decision on GSM1J. 

2.2  Further developments  in co-ordination  of frequencies 

Council  Resolution  90/C  166/02 of 28 June  1990 on the strengthening  of the European-
wide  co-operation  on  radio  frequencies,  in  particular  with  regard  to  services  with  pan-
European dimension14 recognised the importance of a co-ordinated  approach to  frequency 
allocation  for  Europe-wide systems and noted  with  satisfaction  that a reform  of the radio 
frequency  planning  and  co-ordination  mechanisms  was  being  developed  within  the 
framework  of  CEPT.  five  major  policy  goals  in  the  area  of  frequency  allocation  were 
identified. 

• 

• 

• 

• 

• 

to  strengthen  European  co-operation  in  the  field  of  radio  frequency  co-ordination, 
with the objective of providing  for a sufficient  frequency  spectrum  for new services; 

to  work  towards  the  timely  allocation  of  sufficient  frequency  resources  for  mobile 
and satellite applications; 

to promote the most efficient  use of the frequency  spectrum; 

to  develop  common  European  positions  in  relation  to  the  use  of  the  frequency 
spectrum,  in  particular  with  regard  to  the  ITU  and  its  relevant  administrative  radio 
conferences,  using mechanisms set up by CEPT. 

to support  these objectives, encouraging  the  further  development  of the  framework  of 
co-operation  between  frequency  experts  from  national  authorities  responsible  for 
frequency  management, 
telecommunications  organisations  and  other  service 
providers,  industry  and  users,  developing  the  existing  co-ordination  mechanisms  set 
up by CEPT. 

In the Resolution,  the Council  invited  the Commission,  the  Member States and  CEPT to 
support the further development of the new framework  set up by CEPT. 

12  ERC  Decision  of  24  October  1994  on  the  frequency  bands  to  be  designated  for  the  co-ordinated 
introduction  of  the  GSM  digital  pan-European  communications  system  (ERC/DEC/(94)01);  ERC 
Decision  of  24  October  1994  on  the  frequency  bands  to  be  designated  for  the  co-ordinated 
introduction  of the European  Radio Messaging  System (ERMES) (ERC/DEC/(94)02);  ERC Decision 
of 24 October  1994 on the frequency  bands  to be designated  for  the co-ordinated  introduction  of the 
Digital  European Cordless Telecommunications system (ERC/DEC/(94)03). 

1 '  ERC Decision of* 21 March  1997 on the extended  frequency  bands to be used  lor lite (iSM digital pan-
European  communications  system  (EU(7DEC7(97)02).  Not  all  CEPT  Members  have  yet  committed 
themselves to apply the terms of this Decision 

14  OJ n. C 166 of 7.07.1990, page 4. 

The  Resolution  has  certainly  played  a  role  for  the  development  of  a  Europe-wide 
framework  for  frequency  co-ordination,  and  a  number  of  important  initiatives  have  been 
taken  by  CEPT  European  Radiocommunications  Committee  (ERC)  in  response  to  this 
initiative,  including  the  selling  up  of  a  European  Radiocommunications  Office  (ERO) 
and  the adoption  of a mechanism  to secure  implementation  by  members  of CEPT of  ERC 
Decisions concerning  radio  frequencies. 

the 
Subsequent  Council  Resolution  92/C  318/01  of  19  November  1992  on 
implementation 
in  the  Community  of  European  Radiocommunications  Committee 
decisions15 reaffirmed  support  to the CEPT method  of co-operation  as the primary  means 
for  Europe-wide  frequency  co-ordination.  This  was  followed  by  a Communication  of  the 
Commission  in  September  1993,  concerning  a  new  approach 
to  the  co-ordination  of 
frequency  in the Community10  and  by  another  Communication  of the Commission  on  the 
ERC  Decision  mechanism  in  April  199517. 

in  force  between  ERC  and 

A  Memorandum  of  Understanding 
the 
is  currently 
Commission,  and  a  framework  contract  between  the  Commission  and  ERO,x  setting  out 
arrangements  for  co-operation  and  procedures.  The  framework  contract  allows  the 
Commission  to  mandate  ERO  to conduct  work  of a technical  nature  in  the  form  of "work 
requirements",  with  a  view  at  reaching  Decisions  concerning  designation  of  harmonised 
frequencies  for  certain  services.  So  far,  Decisions  have  been  adopted  by  ERC  on,  inter 
alia,  TETRA,  DCS  1800,  Terrestrial  Digital  Audio  Broadcasting,  Satellite  Personal 
Communications  Services (S-PCS)  and UMTS. 

frequency 
Lastly,  the  Commission  has  also  issued  a  Communication  on  "Radio 
requirements  for  Community  policies  in  the  context  of  the  World  Radiocommunications 
Conference  1999 (WRC-99)"19. 

2.3  Other Community  measures  concerning  mobile  communications 

Building  on  the  consensus  achieved  on  the  basis  of  the  Mobile  Green  Paper20  and,  in 
particular,  on  the  support  of  the  Council  and  the  European  Parliament  to  abolition  of 
special  and  exclusive  rights  in  the  mobile  sector,  the  Commission  adopted  in  January 

15  O J n .C  318 of 4.12.1992, page  1. 

16  COM  (93) 382  final  of  10.09.1993. 

17  COM  (95)  85  final  of 26.04.1995. 

IS  The  framework  contract  expired  at  the  end  of  April  1998,  but  a proposal  has  been  put  forward  by  the 

Commission  to grant  a  prolongation. 

|,}  COM(98)298,  13.05.1998. 

20  Towards  the  Personal  Communications  Environment:  Green  Paper  on  a  common  approach  to  mobile 

and  personal  communications  in the  European  Union,  COM(94)145  final,  of  27.04.1994. 

1996 a  Directive  amending  the  Services  Directive21  to  include  mobile  communications, 
which had so far been excluded  from  its scope:-

•  Commission  Directive  96/2/EC  (Mobile  Directive)  of  16  January  1996  amending 

Directive 90/388/EC with regard to mobile and personal communications22. 

Besides  requiring  the  removal  of  any  remaining  special  and  exclusive  rights  by 
February  1996, the  Directives provides  for:  i) an early  liberalisation  of  infrastructure, 
so  that  restrictions  on  mobile operators  are  lifted  with  regard  to the  establishment  of 
their own  infrastructure,  the use of infrastructures  provided  by third and the sharing of 
ii)  the  right  for  mobile  operators  to 
infrastructure,  other  facilities  and  sites; 
interconnect  directly with other mobile networks or with the public fixed network;  iii) 
the  licensing  of  DCS  1800  systems  by  I  of  January  1998  and  of  public 
access/telepoint applications, including systems based on DECT. 

Essential  provisions  concerning  frequency  allocation  are  set  out  by  Article  3b  of 
Directive  90/388/EC,  as  amended  by  the  Mobile  Directive,  under  which  Member 
States must  publish  every  year or  make available  on  request  the  allocation  scheme 
of  frequencies,  including  plans  for  future  expansion  of  such  frequencies.  This 
designation  must be reviewed by Member States at regular appropriate intervals. 

Other Community  measures containing provisions related to frequency  assignment are: 

•  Directive  97/13/EC  (Licensing  Directive)  of  the  European  Parliament  and  of  the 
Council  of  10  April  1997  on  a  common  framework  for  general  authorisation  and 
individual  licences in the field of telecommunications services23. 

The  Directive  aims  at  establishing  a  common  framework  for  general  authorisations 
and  individual  licences  in a liberalised  environment, to avoid that an undue burden  is 
imposed on operators through  licensing conditions or procedures. Article 7(1) makes it 
possible  for  Member States to issue individual  licences inter alia to allow the licensee 
to access radio  frequencies  or numbers; the efficient  use of radio  frequencies  is among 
the  reasons justifying  a limitation  of the  number  of  licences  under  Article  10(1), and 
the charging of additional  fees under Article  11(2). 

•  Decision  710/97/EC  (S-PCS)  of  the  European  Parliament  and  of  the  Council  of  24 
March  1997 on a co-ordinated  authorisation  approach  in the field of satellite personal-
communications services in the Community24. 

In  the  light  of  the  growing  importance  of  satellite  personal  communications,  in 
particular  through  systems  comprising  low-earth  orbiting  satellites  (LEOs),  the 
Decision  aims  at  facilitating  the  rapid  introduction  of  compatible  satellite  personal-

21  Commission  Directive  90/388/EC  of  28  June  1990  on  competition 

in 

the  market 

for 

telecommunications services (OJ n. L 192 of 24.07.1990, page 10). 

22  OJ n. L 20 of 26.01.1996, page 59. 

23  OJn.L  117 of 7.05.1997, page 15. 

24  OJn.L  105 of 23.04.1997, page 4. 

communications  services  in  the  Community  by  means  of  a co-ordinated  approach  to 
selection  and  authorisation.  An  important  role  is  to  be  played  by  CEPT,  which  is 
being given  mandates  to  make  proposals  concerning  harmonisation  of  frequency  use 
and of the conditions attached  to general authorisations  for S-PCS. 

2.4 Evolution  towards third  generation  mobile communications  systems 

the  co-ordinated 

On 3 March  1998 the Commission  submitted  a proposal  for  a European  Parliament  and 
Council  Decision  on 
introduction  of  mobile  and  wireless 
communications  (UMTS)  in  the  Community  (98/C  131/05)25.  The  proposed  Decision 
aims  at  supporting  gradual  evolution  towards  third  generation  mobile  communications 
systems, capable of providing  in particular  innovative  wireless  multimedia  services and 
combining  the  use of  terrestrial  and  satellite  components,  by  means  of  co-ordination  of 
national  licensing  regimes.  Under  the  proposed  framework,  CEPT  should  be  given 
mandates  by  the  Commission  to  harmonise  frequency  use  and  the  conditions  to  be 
attached  to  authorisations  for  UMTS  networks  and  services,  without  prejudice  to  the 
provisions of the Licensing Directive regarding individual licences. 

3.  DIRECTIVE  87/372/EEC 

3.1  Background 

The development  of the digital  mobile communications  market over the past  decade has 
been  dramatic.  It is recognised  that  this development  has been  supported  by  the policy 
initiatives taken by the Commission ten years ago to encourage the introduction of digital 
mobile  communications  in  the  Member  States.  Council  Recommendation  87/371/EEC 
made proposals for the co-ordinated  introduction  of a pan-European  cellular digital  land-
based  mobile  system  in  the  Community;  Council  Directive  87/372/EEC  reserved  the 
In  addition,  the  standardisation  activity  received 
frequency  bands  for  such  a  system. 
considerable support  from the Commission by means of mandates to ETSI. 

3.2  Current  situation 

3.2.1  Market Development26 

Today  there  are  more  than  42  million  users  of  digital  mobile  communications  in  the 
Community.  Another  8  million  subscribers  use  analogue  systems.  Penetration  rates 
currently  average  13%  across  the  EU.  The  most  successful  countries  have  achieved 
penetration  rates  between  31.5%  (Finland)  and  26.6%  (Sweden).  Given  the  dramatic 

25  OJn.C  131 of 29.04.1998, page 9. 

26  Sources:  ERC  (March  1998);  data  provided  to  the  Commission  by  the  National  Regulatory 
Authorities;  two  studies  realised  for  the  Commission:  "UMTS  Market  Forecast",  Analysis/Intercai, 
February  1997; "The  effectiveness  of  the  Mobile  Communications  Frequency  Directives  in  Member 
States",  Eurostrategies,  November  1997.  Data  provided  reflects  status  at  1  January  1998,  unless 
otherwise indicated. 

growth  in the  mobile  market  in  Europe over  the  last  two to  three years, current  level  of 
penetration  in the  Scandinavian  countries  and  the  expected  increase  of  competition  and 
availability  of  services  across  Europe,  it  is  expected  that,  even  in  less  optimistic 
scenarios, penetration rates could achieve 40% to 50% levels in 2005 in some of the more 
developed  markets, with  an average 22% for the whole of the  EU. GSM  (and  its related 
technologies,  DCS  1800 and  PCS  1900) has also emerged  as a world  standard  for mobile 
communications, with services provided  through  nearly  220 networks with  more than 44 
million  users  in  over  100 countries.  The success  of  GSM  can  be  seen  from  its  global 
market share of 60% for all digital mobile markets. 

The number of authorisations  granted  varies between  Member  States, which  is partly to 
be explained  by  the different  liberalisation  dales  and  the  size  and  opportunities  of each 
national  market.  There  are currently  at  least  two  digital  mobile  systems  (GSM)  in each 
Member  Slate, although  some of  them  were  not  yet  operational  at  1 January  1998 (e.g. 
Luxembourg, where the second licence was awarded at the end of 1997)27. 

Analogue systems are still  in operation  in nine Member States (Denmark,  Spain, Ireland, 
Italy, Netherlands,  Austria,  Finland,  Sweden  United  Kingdom). Despite  the gradual  and 
steady  shift  from  analogue to digital  mobile  services  in the  last  years, analogue  systems 
continue to maintain  a relatively  high  number of subscriptions  in a few  countries, owing 
to the relatively  limited  need  for international  roaming for certain categories of users and 
to the lower priced service packages for the analogue systems. 

There is no doubt  that the mobile communications  sector  is currently  the  fastest  growing 
area of telecommunications.  By 2010 there could  be nearly  200 million  mobile  users in 
the  EU  for  all  mobile  services,  including  UMTS.  Ultimately  mobile  communications 
penetration  could  be as high  as 80% of the population,  whereas  fixed  penetration  is not 
expected  to exceed  50% of the population.  In many  Member States 35% penetration  rates 
will  be  feasible  within  the  next  10  years.  With  the  forecasts  of  GSM  subscriber 
population  for  Europe running  so high, many operators of GSM  networks complain  that 
the current allocation of frequencies  will be a major  constraint. 

3.2.2  Impact of Frequency Directive on the Market 

A recent study28 on the effectiveness  of the Frequency  Directives has assessed  the impact 
of  the  GSM  Frequency  Directive  on  the  GSM  market.  All  respondents  (regulators, 

27 

II  is  worth  providing  a  short  overview  of  DCS  1800 systems,  given  their  close  relations  with  GSM 
systems  (without prejudice  to any market assessment that the Commission  may carry out, on a case by 
case basis, in the framework  of the application of competition  rules). As of 30 June  1998, "pure" DCS 
1800  licences, or  combined  GSM/DCS  1800  licenses  have  been  awarded  in  14  countries  (Belgium, 
Denmark,  Germany,  Greece,  France,  Ireland,  Italy,  Luxembourg,  Netherlands,  Austria,  Portugal, 
Finland,  Sweden  and  United  Kingdom)  and  tendering  procedures  are  very  close  to  conclusion  in 
Spain.  In  this  respect,  it  is recalled  that  according  to  the  Mobile  Directive,  at  least  one  DCS  1800 
licence should have been  granted  before  1 January  1998.  In recent  years the tendency  has grown to 
grant  frequencies  in  the  1800  MHz  band  to  the  existing  GSM  operators  (e.g.  Denmark,  Italy, 
Luxembourg),  and  to  award  combined  licences  GSM/DCS  1800.  It  is  recalled  that  frequencies  for 
DCS  1800 have been reserved through ERC Decision of  1 December  1995 on the frequency  bands to 
be designated for the introduction of DCS  1800 (ERC/DEC/(95)03). 

28  Sources:  study  realised  for  the  Commission:  "The  effectiveness  of  the  Mobile  Communications 

Frequency  Directives in Member States", Eurostrategies, November  1997. 

operators,  manufacturers,  users)  confirmed  that  the  Directive  had  made  a  positive 
contribution  to  the  early  introduction  of  GSM.  Some  respondents  also  pointed  out  that 
the liming of the Directive coincided with technological  opportunity  and market demand. 
The  Directive  had  also  enabled  the  availability  of  frequencies  in  a binding  way  across 
Europe. The implementation  of international  roaming and the free circulation of handsets 
were  also  cited  as  major  achievements  which  had  been  factors  in  the  success  of  the 
Directive. 

Some  concerns  were  also  expressed.  In  particular,  the  lack  of  implementation  dates 
outside  the  "core  band"  is  causing  concern  in  relation  to  the  phasing-out  of  analogue 
networks, which  in many Member States still occupies part of the GSM reserved bands. 
Similarly the lack of a date, at  European  level, for the phasing out of analogue  networks 
was seen as a problem.  In short,  it would  appear that the  Directive has raised  the  profile 
of the GSM system both politically and legally. 

3.2.3  Spectrum Management and Availability 

The "core band" as set out by the Directive  is now  used  for  GSM  in all Member States. 
As far as the "extension band" is concerned  (i.e. 890-905 MHz and 935-950 MHz), often 
occupied by other analogue systems despite  formal  reservation  under national  legislation, 
this  is being gradually  cleared  by  Member States, although  at different  paces: owing to 
the lack of compulsory deadline  for  full  GSM occupation, different  time limits or no time 
limits at all, in some cases, have been  set out by  Member States. Estimates  indicate that, 
even  when  these bands arc cleared  and  fully  used, there will be a need to use the  further 
GSM extension bands, i.e. 880-890 MHz and 925-935 MHz. 

Despite  international  co-ordination  in  the  use  of  frequency  bands,  there  are  large 
differences  in  the  amount  of  spectrum  allocated  to  operators  in  different  countries  and 
even  to operators  within  the  same  country.  In  some  cases, differences  can  be  justified 
between  countries  due  to  different  market  conditions,  but  it  is  harder  to  understand 
differences  within  countries.  Very  often,  these  are  due  to  the  fact  that  the  incumbent 
operator  with  a mobile  subsidiary  enjoys  access to both  analogue  and  digital  frequency 
bands,  as  it  is  the  case  in  Austria,  Denmark,  Finland,  Ireland,  Italy,  the  Netherlands, 
Portugal, Spain, Sweden and the United Kingdom. 

Given  the growth  rates exhibited  by GSM  operators  throughout  Europe, it  is  likely  that 
lack of availability of spectrum  could  inhibit  market growth. Network  operators arc able 
to  alleviate  the  problem  of  a  lack  of  new  spectrum,  up  to  a  point,  by  introducing 
micro/pico  cells,  particularly  in  urban  areas  which  allow  greater  frequency  re-use  and 
hence  can  accommodate  a higher  degree  of  traffic  loading  on  the  network.  There  is  a 
limit,  however,  beyond  which  further  investments  in  network  infrastructure  cannot 
provide  for  a more  efficient  use  of  the radio  frequency  spectrum.  In this  case  the  only 
solution seems to be availability of more spectrum. 

It would  appear  that  a  further  element  impeding  fair  allocation  of  frequency  is the  fact 
that publishing of existing and intended future  frequency  allocation does not appear to be 
obligatory in most countries, despite the requirements of the Community directives. 

3.2.4  Transposition/Implementation issues 

Key issues of Directive 87/372/EEC 

While a clear deadline  is fixed  by  Article  1(1) of the  Directive concerning  allocation  of 
the "core  band",  no such date  is established  concerning  the obligation  to make  available 
the remainder of the band reserved  for GSM: allocation of the "extension  band" is left  for 
assessment by Member States in accordance with the principle of subsidiarity. 

An indication  is, however, provided by Recital  11 of the Directive which states that "on 
the  basis  of  present  technological  and  market  trends  it  would  appear  to  be  realistic  to 
envisage the exclusive  occupation  of the  890-915  and  935-960 MHz  frequency  band by 
the  pan-European  system  within  10 years  of  1 January  1991".  The  date  of  1 January 
2001  is, therefore,  suggested to  Member  States  as  a realistic  deadline  for  occupation  of 
the  whole  reserved  band,  given  market  and  technology  tendencies  early  in  1987. Since 
more recent surveys confirm  that a clear move towards digital technologies  is under way 
throughout  Europe  and  that  market  demand  is  buoyant,  such  an  indication  seems  to 
remain  valid. 

Even in the lack of a binding date under the Directive, the Commission  is of the view that 
Member  States  should  identify  clearly  time  limits  for  the  phasing  out  of  analogue 
systems,  bearing  in  mind  that  such  phasing  out  should  not be  excessively  delayed.  The 
Commission  is aware of difficulties  linked  to the closure  of  analogue  services, but  it is 
also  concerned 
cellular  digital  mobile 
communications should not be hampered. 

that  development  of  pan-European 

The  lack  of  a deadline  in the  Directive  does  not  affect  the  main  obligation  on  Member 
States under Article  1(2) of the Directive, which is to draw  up plans to allow  expansion 
of  GSM  into  the  complete  band  as  quickly  as  possible,  according  to  commercial 
demand  and  to communicate  these plans  to the Commission  in accordance  with  Article 
4(2).  In  this  context,  it  is  essential  that  Member  States  carry  out  an  accurate 
assessment  of  commercial  demand,  repeated  ni  regular  intervals,  and  of  the  related 
need  for  expansion  of  frequencies,  with  a view  to  drawing  up and  reviewing  allocation 
plans,  in  order  to  ensure  effective  spectrum  management.  Member  States  should, 
therefore,  ensure that effective  mechanisms  are in place to measure evolution  of demand 
at regular  intervals. Only  if such  mechanisms  arc  in place can  allocation  plans be drawn 
up  and  reviewed  in  an  effective  way,  including  identification  of  a deadline  for  phasing 
out  analogue  system  and  of  a  time-schedule  be  fixed  for  gradual  assignment  of  new 
frequencies  to GSM. 

This  approach  is  confirmed  by  the  Mobile  Directive  (96/2/EC):  under  Article  3b  of 
Directive 90/388/EC, as amended by the Mobile Directive, Member States must  publish 
every year or make available on request the allocation  scheme of frequency,  including 
plans  for  future  expansion  of  such  frequencies,  according  to  the  scheme  described  in 
Annex.  This  designation  must  be  reviewed  by  Member  States  at  regular  appropriate 
intervals. 

The  Commission  considers  that  establishment  of  final  deadlines  for  closing  analogue 
systems is not sufficient  to implement the requirement of Article  1(2) of the Directive. In 
order  to  ensure  legal  certainty  and  transparency  to market  players,  Member  States  are 

10 

required  to  lay  down  precise  plans  and  to  review  them  regularly.  The  Commission 
takes the view that revision  of plans  should  take place  at least  every  year. Plans  should 
include a clear time-scale for  further  expansion  and  identify  intermediate dates and steps 
for migration; they should be communicated  to the Commission. 

The Commission  will investigate closely whether the obligation  of publishing of existing 
and  planned  frequency  allocation  scheme  has  been  clearly  set  out  in  the  national 
regulatory  framework  and implemented by Member States. 

Status of transposition 

The  Directive  has  been  transposed  by  a  majority  of  Member  States  by  adoption  of 
specific  regulations 
(details  in  Annex  1).  In  some  other  countries  reservation  of 
frequencies  has  been  ensured  either  by  decision  of  the  national  regulatory  authorities 
responsible  for  frequency  allocation  (Portugal,  Finland)  or  through  the  published 
National  frequency  allocation table, and subsequent  licensing decisions (Sweden).  In one 
case (United Kingdom) no legislation  has been enacted to implement  the Directive, since 
the existing legislation was considered  sufficient  to permit provision of GSM. 

In  general,  most  of  the  Member  States  had  difficulties  in  meeting  (he  transposition 
deadline,  and  at  an  early  stage  the  Commission  had  to  open  infringement  proceedings 
against  a number  of  Member  States  for  non-communication  of  national  implementation 
measures.  Proceedings  were  only  closed  against  notification  of  relevant  implementing 
measures. 

Transposition  is, however, only part of the process necessary to ensure implementation of 
the Directive.  Member  States have also  an obligation  to ensure  effective  application  of 
transposition  measures,  and  it  is part  of the  Commission's  responsibility  to  ensure  that 
Member States fulfil  this obligation. 

In  particular,  the  requirement  of  Article  1(1)  of  the  Directive,  under  which  Member 
States have to ensure that the 905-914 and 950-959  MHz frequency  bands ("core  band") 
or  equivalent  part  of  the  band  mentioned  in  paragraph  2  are  reserved  exclusively  for 
GSM  service  by  1 January  1991, has  been  implemented  in  all  Member  States,  even 
though with some delay. Only one country (Ireland) has reserved "an equivalent part".  In 
all  Member  Stales  at  least  two operators  have  been  granted  licences  and  frequencies  to 
provide services nation-wide. 

As far as Article  1(2) of the Directive is concerned,  legislation  is in place which  reserves 
the  whole  of  890-915  and  935-960  MHz  bands  exclusively  for  GSM  virtually  in  all 
Member  States.  However,  only  four  countries  (Germany,  France,  Luxembourg,  United 
Kingdom)  have  actually  assigned  all  relevant  frequencies  to  GSM  operators.  In  these 
countries coexistence of analogue and digital networks is not problematic since GSM and 
analogue systems (where existing) do not operate in the same band. In two other Member 
States,  although  no  analogue  or  other  system  is  reported  to  be  operational,  some 
frequencies  remain  to be  assigned:  Belgium,  with  914-915  and  959-960  MHz  bands  to 
assign, and Greece, where only 2x10 MHz of the overall band have been  assigned to two 
GSM providers, the remaining 2x5 MHz being free and available for future operators. 

In  the  remaining  Member  States,  full  occupation  of  the  above-mentioned  range  of 
frequencies  seems to be delayed  mainly by the existence, in the bands reserved  for GSM, 

11 

of analogue  services  like NMT900, TACS and  E-TACS (Denmark, Spain,  Ireland,  Italy, 
Netherlands,  Austria,  Sweden,  Finland),  or  of  cordless  systems  like  CT1  or  SLT1 
(Denmark,  Italy,  Netherlands,  Austria,  Portugal,  Sweden,  Finland),  or  of  fixed  service 
systems  (Spain).  In-these  countries,  given  the  wide  geographical  coverage  and  the 
sizeable  and  still  increasing  number  of  subscribers  (though  at  a slower  pace  than  GSM 
subscriptions),  national  authorities  seem  reluctant  to take short  term  initiatives  to reduce 
spectrum  allocated  to analogue systems and phase these systems out.  Plans are said  to be 
in  place  in  several  countries  for  closing  existing  analogues  networks,  and  virtually  all 
Member  States  have  set  out  the  date  for  phasing  out  analogue  systems  (ranging  from 
1.1.2001,  in  the  case  of  Spain,  to  2007-2012  in  Finland)  or  are  preparing  to  take  a 
decision  on  the  issue  (Netherlands).  However,  apart  from  these  deadlines,  only  a  few 
countries  (Austria  and  Sweden)  have  provided  the  Commission  with  detailed 
information  about  the  time-scale  for  the  migration  of  the  concerned  frequencies  to 
GSM, as required by the Directive. Information  on frequency  assignment and licensing is 
provided by Tables  1  and 2. 

3.3  Significant  Issues 

The  phasing  out  of  Ihe  analogue  systems  needs  to  be  addressed  in  a  specific  way,  in 
consultation  with  Ihe  national  regulatory  authorities  and  the  relevant  market  players. 
With  respect  to  the  existing  GSM  service,  the  main  concern  is that,  in  the  absence  of a 
compulsory  deadline  in the Directive  for the phasing out of analogue systems, transition 
from  the  analogue  use  of  GSM  frequency  bands  is  proceeding  at  uneven  paces  in 
Member  States,  and  generally  very  slowly.  This  issue  is  also  linked  to  the  setting  of 
tariffs  in the  Member States.  At present there are wide differences  between  tariffs  set in 
all  the  Member  States.  This  is  a key  factor  in  the  rate  of  migration  from  analogue  to 
digital systems and hence the clearing of the GSM reserved bands. 

One of the reasons  for the slow migration from analogue to digital  is that both NMT and 
TACS analogue services tend to be highly profitable  and still  represent  large investments 
for  operators.  The  situation  which  now  occurs  is  that  new  entrants,  who  do  not  have 
access  to  the  analogue  frequency  pool  of  incumbent  operators,  have  to  implement 
technical  solutions 
traffic  densities  within  spectrum 
increasing 
allocations  in some instances as small as 5.4 MHz. 

to  accommodate 

The  Commission  will  continue  to  support  the  migration  to digital  systems.  The crucial 
question  which  needs  to  be  addressed  is  how  to  ensure  the  phasing  in  of  (additional) 
digital  frequency  bands and equipment while at the same time taking account of the state 
of  development  of,  and  investment  in,  current  mobile  systems,  including  analogue 
networks. In particular, the Commission will continue to monitor the situation  in Member 
States in order to determine whether: 

• 

incumbent operators tend to support or restrict the migration to digital systems; 

• 

incumbent  operators  use  their  monopoly  use  of  analogue  frequencies  to  strengthen 
their  already  dominant  position  and  also  slow  down  the  migration  to  digital 
technologies; 

•  new GSM operators are on an equal competitive footing  with the incumbent GSM and 

analogue service operators; 

12 

it  is realistic  and  desirable  to set  deadlines  by which  digital  services  should  have the 
exclusive  disposal  of  frequency  bands  which  are  currently  partly  used  by  analogue 
services. 

The Commission  will  review,  in co-operation  with  the NRAs, their plans to allocate the 
full  range  of  frequencies  set  out  in  the  Directive,  in  particular  raising  the  issue  of  the 
phasing  out  of  the  analogue  use  of  the  GSM  bands.  In  case  Member  Stutes  do  not 
communicate their plans, the Commission will open infringement  proceedings. 

In phasing out analogue service, Member States should  ensure that consumers  are given 
clear and transparent information by the operator marketing these services of any time 
limits attached to the continuation of the service. 

4.  DIRECTIVE 90/544/EEC 

4.1  Background 

Paging  is the  longest  established  form  of  mobile  communications  in  Europe.  ERMES 
was  developed  as  a  European  digital  paging  system  in  the  same  way  that  GSM  was 
developed  for  the  cellular  telephony  market,  i.e.  to  provide  greater  functionality, 
intelligence and pan-European  roaming. 

The  Community  launched  similar  initiatives  as  were  taken  for  the  digital  mobile 
communications  service to encourage the introduction  of ERMES in the Member States. 
Council  Recommendation  90/543  made  proposals  for  the  co-ordinated  introduction  of 
pan-European  public  radio  paging  in  the  Community.  In  addition  Council  Directive 
90/544/EEC reserved the frequency  bands for such a system. The standardisation process, 
undertaken  in ETSI, also received considerable support  from  the Community. 

4.2  Current Situation 

4.2.1  Market Development29 

Globally, paging  has emerged  in the  1990s as an  important  sector in the total  market of 
mobile  communications.  The  world  paging  market  is  estimated  at  approximately  120 
million units-in-service at the end of  1996. About 38% of all pagers are in North America 
where the market has been growing at an average rate of nearly 25% per year for the past 
seven years.  Today  there are 44 million  pagers, giving a penetration  rate of  15% of the 
population.  Another  56% of the total base are in the Asia-Pacific  region, which is home 
to  some  of  the  world's  highest  paging  networks,  such  as  China,  Korea  and  Japan.  The 
total  number  of  pagers  in  use  in  this  region  amount  to  67  million.  Some  of  the 
penetration  rates  are  also  very  high,  with  countries  like  Singapore  reaching  more  than 
30% penetration. 

29  Sources:  see  footnote  28. Data provided  reflects  status at  i  January  1998, unless  otherwise  indicated. 

13 

On  the  other  hand,  the paging  market  in Europe  seems  underdeveloped  compared  with 
the rest of the world.  The European penetration rate is only  1.5% with a total number of 
5.8  million  pagers  in Western  Europe.  In some countries the number  of subscribers has 
increased  significantly  (France,  Germany,  UK,  Portugal,  Netherlands),  whereas  in other 
countries  the  market  would  appear  to  be stagnant  (Denmark,  Greece). The  reasons  why 
Europe  lags  behind  vary,  depending  on  the  commentators,  but  most  of  them  agree that 
the main  reasons are historical  in nature, i.e. that  paging  in the US was introduced  much 
earlier  than  cellular  telephony  (as  compared  to  Europe)  and  marketed  by  stand-alone 
paging  operators  whose  livelihood  depended  on  their  core  business,  as  opposed  to  the 
European telecommunications operators for whom paging was only a secondary activity. 

ERMES licences have been granted in nine Member States (Denmark, Germany, Greece, 
France, Italy, Netherlands, Finland,  Sweden, United Kingdom). In addition to that, in no 
country have plans been drawn up to assign the complete band, largely owing to the lack 
of  clear  obligations  and  compulsory  deadlines  under  the  Directive.  Analogue  paging 
networks  are  also  in  operation  in  all  Member  States,  mainly  based  on  the  POCSAG 
technology. They operate over a different  frequency  band  except  in Austria,  Finland  and 
Sweden.  The  number  of  operators  runs  from  one  (Greece,  Italy,  Finland)  to  440 
(Finland). 

So  far,  the  mass  acceptance  and  implementation  of  ERMES  services  across  Member 
States  has  been  somewhat  delayed.  Among  the  possible  reasons  the  following  can  be 
identified:  i) some existing paging operators still  have excess capacity  on their analogue 
networks,  and  foresee  no  major  costs  or  service  benefits  from  introducing  ERMES;  ii) 
most of the major  markets had  not until  very recently  licensed  ERMES operators, which 
has reduced  the attractions  of the roaming  facility;  iii) the success of cellular  telephony, 
and  in particular  GSM, may have absorbed  some potential  ERMES customers; iv) there 
have been technical difficulties,  especially interference with adjacent  channels utilised by 
cable  TV  operators;  v)  national  frequency  management  bodies  seem  to  have  been 
reluctant to release spectrum. 

There  arc  now  signs  that  ERMES  is  becoming  more  successful.  Over  the  past  year 
ERMES  has  gained  strength  and  licences  have  been  granted  in  several  Member  States, 
with  a  promise  of  more  networks  being  opened.  In  spite  of  the  fact  that  Europe  lags 
behind  the  rest  of the  world  in  pager  penetration  rates, the  European  market  has  one of 
the highest  untapped  potential  for paging.  It is predicted  that  the market  could  grow by 
25% per annum  in Europe over the next few years.  The total number of users could triple 
by the beginning of the 21st century, with potential  for penetration  levels of  10% in later 
years, if the right market conditions are created to sustain this growth. 

Even  though  this  growth  will  have  to  be  shared  between  several  technologies  owing to 
considerable  competition  between  different  systems  in  this  market  (FLEX,  analogue 
POCSAG),  ERMES  is  gaining  increasing  support  from  the  paging  industry.  It  is 
recognised  that  ERMES  has  unique  qualifications  not  only  for  providing  traditional 
paging  services  at  enhanced  quality  (e.g.  longer  messages)  but  also  for  supporting 
emergence  of  new  services  (e.g.  broadcasting  high  speed  data  services  with  pan-
European dimension). 

14 

4.2.2  Impact  of the Frequency  Directive 

A  recent  study  on  the  effectiveness  of  the  ERMES  Frequency  Directive  revealed  mixed 
perceptions  of  its  impact-*0.  A  majority  of  regulators  did  not  consider  that  the  Directive 
had  contributed  to  the  early  introduction  of  ERMES  in  Europe,  while  a  majority  of 
paging  operators,  manufacturers  and  users  have  agreed  that  the  Directive  had  been 
in  promoting  a  pan-European  paging  service,  and  that  there  were  clear 
successful 
incentives  on  using specified  frequency  bands and  implementation  dates. 

4.2.3  Spectrum  A vailability  and  Management 

In  all  Member  Slates  national  regulatory  measures  have  been  adopted  giving  protection 
and  priority  to  four  channels  in  the  169.4  to  169.8  MHz  range  for  ERMES  (see  chapter 
4.2.5).  However,  not  all  channels  have  been  actually  assigned,  allegedly  for  lack  of 
sufficient  commercial  demand.  The  major  difficulty 
that  had  been  encountered  for 
ERMES  spectrum  allocations  (see  Annex  2)  seems  to  have  been  the  problems  caused  by 
joint  usage  of  the  same  frequencies,  associated  with  interference  between  ERMES 
transmitters  and cable TV  signals, particularly  in Germany  and  Austria. 

4.2.4  Transposition/Implementation 

issues 

Key  issues of  Directive  90/544/EEC 

The remarks  made  in section  3.2.4  apply, mutatis  mutandis,  to Directive  90/544/EEC. 

Status of  transposition 

The  Directive  has  been  transposed  by  a  majority  of  Member  States  by  adoption  of 
(details  in  Annex  2).  In  some  other  countries  reservation  of 
specific  regulations 
frequencies  has  been  ensured  either  by  decision  of  the  national  regulatory  authorities 
responsible  for  frequency  allocation  (Portugal,  Finland)  or  through  the  published 
National  frequency  allocation  table, and  subsequent  licensing  decisions  (Sweden).  In  one 
case (United  Kingdom) no  legislation  has been  enacted  to implement  the  Directive,  since 
the existing  legislation  was considered  sufficient  to permit  provision  of  ERMES. 

The  requirement  of  Article  2(1)  of  the  Directive,  under  which  Member  Stales  must  give 
protection  and  priority  to  four  channels  in  the  169.4  to  169.8  MHz  range  for  the  pan-
European  land-based  radio  paging  service  by  31  December  1992  at  the  latest  (and, 
preferably,  to  the  following  channels:  169.6  MHz,  169.65  MHz,  169.7  MHz  and  169.75 
MHz)  has been  transposed  in  all  Member  States,  with  some  variations.  In  particular,  on 
the  basis  of  information  collected  from  national  regulators,  which  in  some  cases  is  not 
fully  complete or accurate, the  following  overview  can be  drawn: 

• 

in  seven  Member  States  (Denmark,  Greece,  Ireland,  Italy,  Austria,  the  Netherlands 
and  Portugal),  the  transposition  measure/allocation  decision  has  explicitly  reserved 
four  channels for ERMES  systems (three in the Netherlands), which  are in three  cases 
the  same  as  those  recommended  by  the  Directive.  In  some  cases  the  whole  band  is 
although  it  is  laid  down  that  the 
also  in  principle  reserved  fully  to  ERMES, 

30  See  footnote  28. 

15 

remaining  channels  of this  band  will  be  made  available  when  necessary,  taking  into 
account expansion of the service. Of these countries only Denmark, Greece, Italy, and 
the Netherlands have subsequently assigned channels to operators. 

• 

in  five  further  Member  States (Belgium,  Germany,  Spain,  France,  Luxembourg)  the 
transposition  measures reserve the band  for ERMES, but without specific  reference to 
any  channels.  Channels  have  been  subsequently  assigned  in  Belgium,  Germany, 
France. 

• 

in  Finland,  Sweden  and  United  Kingdom,  channels  have  been  reserved  (three 
channels in Finland) and then assigned to ERMES systems in various ways. 

The  description  above  is  to  be  read  in  conjunction  with  information  concerning  the 
effective  implementation  of the Directive. Despite adoption of legal acts, implementation 
of the directive, including frequency  assignment, has proved difficult  in several countries, 
owing apparently to the lack of sufficient  demand  for ERMES services. This alleged lack 
of  commercial  demand  can  be  explained,  in  some  cases,  by  the  existence  of  analogue 
paging  systems  in the national  markets, often  licensed  at a time when  the Directive had 
already entered  into  force. 

ERMES  licences  have  been  granted  in  Denmark  (two), Germany  (three),  Greece (one), 
France  (three),  Germany  (three),  Italy  (one),  Netherlands  (two),  Finland  (one),  Sweden 
(two), United  Kingdom (four).  In Belgium, Spain, Ireland, Austria and Portugal there are 
still  no  ERMES  operators,  but  the  grant  of  some  licences  is  envisaged.  In  the  United 
Kingdom  licences  have  also  been  granted  recently  allowing  to  use  the  FLEX  standard. 
In  none  of  the  Member  States  have  plans  been  drawn  up  to  make  the  whole  band 
available;  the  decision  is  left  for  future  assessment. 
Information  on  frequency 
assignment and licensing is provided by Table 3. 

4.3  Significant  Issues 

Other  technical  solutions  are  currently  available  for  paging,  in  some  cases  with 
comparable features.  For example, some Member States are licensing the Motorola based 
FLEX™ technology which is now coming into direct competition  with ERMES. There is 
no  evidence  to  substantiate  the  view  that  ERMES  is  more  expensive  than  FLEX  or 
POCSAG.  On  the  contrary,  estimates  show  that  the  ERMES  pagers  themselves  are 
comparable  in  price  to  FLEX  or  POCSAG  quality  pagers  and  the  network  components 
(base stations and switches) arc also similar in cost. 

The  frequency  band  is  a  critical  factor.  At  equal  power  levels,  a  high  speed  network 
operating at  169 MHz (e.g. ERMES at 6400 bps or FLEX at 6250 bps) requires as many 
base stations as a low rate 300 bps FLEX or POCSAG network operating at 900 MHz.  In 
other  words,  the  investment  in  an  ERMES  high  speed  network  operating  at  169  MHz 
would  require  the  same  investment  as  a  low  speed  FLEX  network  at  450-900  MHz. 
Hence the interest in the 169 MHz band. 

The  existence  of  a Europe-wide  harmonised  frequency  allocation  for  ERMES  is  a very 
attractive  element  and  one  of  the  reason  for  its  success.  In  this  context,  pressure  is 
growing  from  non  ERMES  operators  for  the  release  of  the  unused  channels  which  are 
"reserved" in the ERMES Frequency Directive for use with other technologies.. 

16 

The  Commission  will  continue  to  encourage  the  full  implementation  of  the  ERMES 
Directive,  in  particular  by  monitoring 
the  channel  utilisation  plans  of  the  Member 
States. 

The Commission  has initiated a study on the future of the paging market, investigating in 
particular  growth  prospects  and  likely  scenarios  for  evolution  of  the  paging  market  in 
Europe. 

5.  DIRECTIVE 91/287/EEC 

5.1  Background 

The  Digital  Enhanced  Cordless  Telephone  (DECT)  system  has  been  developed  and  is 
now commercially  available. Thanks to the extreme  flexibility  of the technical  standards, 
the DECT technology can be used to provide cordless access to a range of networks, both 
mobile  and  \~\xa\.  In  this  context,  DECT  can  be  used  either  for  offering  "limited" 
mobility  in urban areas (Cordless Telephone  Mobility, CTM) as a low cost alternative to 
full-Hedged  cellular  mobile systems  which  is particularly  attractive  in densely  populated 
areas, or as access technology  in wireless  local  loop configurations  (WLL), where  it can 
provide high  capacity  transmission  links. DECT products  have been  on the market  only 
since  1994, but  have  achieved  success  particularly  in  the  residential  cordless  telephone 
and cordless  PBX domains. 
Its development  has been  further  enhanced  by adoption  of 
Common Technical  Regulations under Directive 91/263/EEC. 

As  for  GSM  and  ERMES  the  development  of  DECT  has  been  assisted  by  policy 
measures taken by the community  in  1991 to encourage the introduction  of DECT in the 
Member  States.  Council  Recommendation  91/288  made  proposals  on  the  co-ordinated 
introduction  of  DECT  into  the  Community.  Council  Directive  91/287  reserved  the 
frequency  bands  for  such  a  system. 
In  addition,  standardisation  activities  have  been 
supported by the Commission by means of standardisation  mandates to ETSI. 

5.2  Current Situation 

5.2.1  Market Development31 

DECT  was  engineered  as  a  successful  product  of  European  co-operation  and  is 
developing well.  Between  1994 and mid  1997, more than 50 suppliers shipped more than 
8  million  units.  The  most  successful  application  of the  DECT  technology  has been  for 
residential  cordless  telephones  which  accounts  for  7  million  units  out  of  the  total 
shipments.  DECT  based  wireless  PBXs  are  also  available  in  the  majority  of  Member 
States. 

31  Sources: see  footnote  28. Data provided  reflects  status  at  1 January  1998, unless  otherwise  indicated. 

17 

Since  DECT  was  conceived  to  be  a  flexible  radio  access  technology,  one  of  its  target 
applications  was  to  provide  the  public  with  limited  mobility  access  capability  to fixed 
networks.  This  was  seen  to  be  particularly  attractive  in  densely  populated  areas,  for 
instance  in  shopping  centres,  petrol  stations  etc.  This  application  of  DECT  remains 
underdeveloped  with  one operational  DECT network  in  Finland, two  licenses granted- in 
France and one in Italy. 

The potential  for  introducing  the  DECT technology  at commercial  level  remains largely 
under-exploited.  It is expected  that the cordless telephone applications  for the residential 
and cordless  PBX markets will continue to be successful.  The DECT Forum predict that 
7 million  units will be sold  in  1997 and that by the turn of the century, annual  shipments 
will reach more than 30 million units. 

It  does  not  have  the 
DECPs  future  as  a  public  networking  technology  is  unclear. 
intelligent  networking  abilities  of  GSM  or  DCS  1800.  A  number  of  operators  are 
currently  carrying  out  trials  which  combine  DECT  with  other  technologies  (most 
commonly  with  GSM  or  DCS  1800).  DECT  would  then  complement  GSM  in  high 
traffic  density  zones  and  pico-cellular  indoor  environments.  In  this  respect,  it  would 
appear  that  some  operators  are  preparing  to  launch  commercially  DECT  in  dual  mode 
during 1998. 

The  future  for  DECT  as  a  WLL  technology  is  also  not  fully  clear.  The  potential  is 
certainly  there.  Wireless  local  loops  are  seen  as  a  cost  effective  way  of  extending  the 
fixed network,  particularly  in  urban  areas,  and  can  shorten  waiting  lists  dramatically. 
DECT  could  have  competition  in  this  field  from  such  technologies  as  CTM  and  CT2. 
Outside  Europe,  systems  such  as  the  Public  Access  Cordless  Systems  (PACs)  and  the 
Personal  Handyphone System (PHS) seems to provide serious competition to DECT. 

5.2.2  Impact of the Frequency Directive 

The  views  of  NRAs  and  manufacturers  support  the  notion  that  the  DECT  Frequency 
Directive  has contributed  to  the  extensive  introduction  of  DECT  and  had  improved  the 
European  market opportunities.  Market opportunities ought to be realised more quickly. 
Also,  the  Directive  had  encouraged  less  expensive  equipment  as  a  result  of  the  larger 
market  for  a  single  standard,  and  by  providing  a  clear  incentive  to  use  a  specified 
frequency  band with implementation dates. 

Some  manufacturers  suggest  that  there  had  been  only  limited  success  in  achieving  the 
aim  of  promoting  Pan-European  DECT  services  for  customers,  owing  to  two  main 
reasons.  Firstly, lack of clarity over the regulatory  status of DECT-based wireless in the 
local  loop  services  is  limiting  market  development,  particularly  in  relation  to  the 
development of public services DECT networks.  A second reason would appear to be the 
delay  by  some  national  regulatory  authorities  to  develop  DECT  regulations,  again 
particularly  in respect to public services. 

5.2.3  Spectrum Management and A vailability 

Operators  and  manufacturers  have  expressed  concerns  that  the  current  frequencies 
allocation  is  limiting  demand  and  that  this  is  closely  related  to  national  spectrum 
management. Other points of concern include the view that some national procedures are 

18 

"minor  deterrents"  and  that  spectrum  availability  for  public  service  users  is  being 
generally delayed. 

There  is  a  general  concern  in  CEPT  on  the  spectrum  available  for  DECT  studies  arc 
being  undertaken  in  conjunction  with  the  planning  for  FLMTS/UMTS.  There  is  also 
pressure to extend the currently allocated hand  1800-1900 MHz to  1920 MHz. 

5.2.4  Transposition/Implemen tat ion issues 

The  Directive  has  been  transposed  by  a  majority  of  Member  States  by  adoption  of 
(details  in  Annex  3).  In  some  other  countries  reservation  of 
specific  regulations 
frequencies  has  been  ensured  either  by  decision  of  the  national  regulatory  authorities 
responsible  for  frequency  allocation  (Portugal,  Finland)  or  through  the  published 
National  frequency  allocation  table, and subsequent  licensing decisions (Sweden). In one 
case (United  Kingdom) no legislation  has been enacted to implement the Directive, since 
the existing legislation was considered  sufficient  to permit provision of DECT. 

It seems that the requirement of Article 2(1) of the Directive, under which  Member Slates 
must  designate  the  frequency  band  1880-1900  MHz  for  digital  European  cordless 
telecommunications  by  1  January  1992, has been  implemented  by all  Member States. In 
some  countries,  however,  the  band  reserved  for  DECT  is  partly  occupied  by  other 
systems (mainly military telecommunications networks, or digital fixed links). 

5.3  Significant  Issues 

•  Whilst  interest  in  the  licensing  of  DECT  operators  is  increasing,  so  far  only  a  few 
operators  have  been  licensed  to  provide  DECT  services,  in  some  cases  already 
enjoying  a dominant  position  in  the  public  switched  telephone  network  market.  The 
Commission  is  concerned  that  competition  is  ensured  for  DECT  services  and  has 
already taken action against certain member States. 

• 

• 

In  most  countries  DECT  is  used  as  a  terminal  technology  rather  than  as  a  service 
provided to third parties. 

There was consensus  that  the  Directive  has contributed  to the  introduction  of  DECT 
across the Member States. The Commission will continue to encourage the use of the 
DECT standard. 

19 

6.  CONCLUSIONS 

6.1  General 

There is consensus  that  reservation  of frequency  band, harmonised  at  European  level, 
through  a binding  instrument  such  as a Directive, has contributed  to  the  introduction 
of GSM, ERMES and DECT in Europe. Success of the three services has been uneven, 
with  considerable  variations  also between  Member  States, owing  not  only  to  regulatory 
aspects but also to market conditions and commercial demand. 

In general, the  Directives  have proved  particularly  effective  when  clear  implementation 
deadlines  have  been  fixed:  this  is  the  case  for  the  designation  of  the  "core  band"  for 
GSM,  of  the  four  channels  in  the  169.4  to  169.8  MHz  range  for  ERMES  and  of  the 
frequency  band  for  DECT,  which  have  been  fully  transposed  and  implemented  in  all 
Member  Slates.  On  the  other  hand,  the  absence  of  binding  provisions  concerning  full 
occupation  of whole  range of  frequencies  reserved  (for  GSM  and  ERMES)  is to be seen 
as a major  reason  for  uneven  implementation  by  Member  States: different  deadlines, or 
no deadline at all in some cases, have been set out by Member States, often  giving rise to 
slowness and delays  in making available the necessary  frequency,  with  special  reference 
to GSM. 

The  Commission  will  take  account  of  these  elements  when  reviewing  its  current 
spectrum  policy  with  a view  to  identify  the best  solutions  for harmonised  allocation  of 
frequencies. 

6.2  Implementation 

The three  Directives  have been  transposed  by all  Member States either by means of 
regulatory  measures,  or  through  decisions  of  the  national  regulatory  authorities 
responsible  for  frequency  allocation.  As  regards  practical  implementation,  however, 
problems  have  emerged  in  some  countries  concerning  full  occupation  of  the  reserved 
bands. 

In  particular,  as  far  as  the  GSM  and  the  ERMES  Directives  are  concerned,  where  the 
obligation  is imposed  on  Member States to drawn  up plans to allow expansion  of GSM 
and  ERMES  into  the  complete  band  as quickly  as possible,  according  to  commercial 
demand  and  to  communicate  them  to  the  Commission,  these  plans  have  been  notified 
only by a limited number of Member States so far (see Annexes  1  and 2). 

The Commission  is of the view that, despite the lack of a mandatory deadline in the GSM 
and  ERMES  Directives  for  full  occupation  of  the  entire  band  reserved,  this  obligation 
has to be fully complied with by Member States. Member States are therefore  required, 
also  in  accordance  with  the  requirements  of  Article  3b  of  Directive  90/388/EEC  as 
amended  by  the  Mobile  Directive, 
to  lay  down  plans  for  future  expansion  of  such 
frequencies  and to review them regularly, at least every year. Plans should  include a clear 
time-scale  for  further  expansion  and  identify  intermediate  dates and  steps  for  migration; 
they should be communicated to the Commission. 

20 

The Commission  will continue  to monitor  implementation  of the  Frequency  Directives, 
putting a particular  emphasis on the need to ensure  that all obligations  are  satisfied. 

In  order  lo ensure  full  implementation  of  the  Directives,  the  Commission  will  use  all  ils 
powers,  including  recourse  to  its  formal  powers  under  the  Treaty  to  launch  formal 
infringement  procedures  against  Member States. 

6.3 Other  issues: spectrum  management,  licensing  and safety  of frequency  usage 

is  concerned,  the  Commission  notes  that  in  general 
As  far  as  spectrum  management 
there  are  large  differences  in  the  amount  of  spectrum  assigned  to  operators  in  different 
countries and  even  to operators  within  the same country  for the three  systems,  for  reasons 
which  are not always  clear. 

The  Commission,  while  reaffirming  that  frequency  assignment  is  a  matter  for  the 
national  authorities  to  decide,  in  conformity  with  EC  law  (often  dealt  with  in  the 
framework  of  licensing  procedures),  recalls  the  main  principles  applicable  under  the 
Community  legal  framework 

frequency 

•  Under  Article  3a  of  Directive  90/388/EEC  as  amended  by  the  Mobile  Directive 
(96/2/EC)  "as far  as frequencies  are  available,  member  States  shall  award  licenses 
according  lo open,  non-discriminatory  and  transparent  conditions.  Member  States  may 
limit  the  number  of  licenses  for  mobile  and  personal  communications  systems  to  be 
issued  only  on  the basis of essential  requirements  and  only where  related  to the lack  of 
availability  of 
the  principle  of 
and 
proportionality."  In  addition  to  that,  Article  10(1)  of  Directive  97/13/EC  lays  down 
that  Member  States  "may  limit  the  number  of  individual  licences  for  any  category  of 
telecommunications 
the  establishment  and/or  operation  of 
telecommunications  infrastructure,  only  to  the  extent  required  to  ensure  the  efficient 
use  of  radio  frequencies  (...)".  It  follows  that  only  the  lack  of  sufficient  spectrum, 
when  justified  under  the  principle  of  proportionality,  can  be  invoked  to  limit  the 
number  of  licences  granted.  Therefore,  when  frequencies  are  available,  they  have  to 
be  assigned. 

services  and 

spectrum 

justified 

under 

for 

•  These  principles  should  be  read  in  conjunction  with  other  essential  principles  under 
EC  law.  In  particular,  when  granting  licenses  Member  States  should  also  take  into 
account,  under  Article  2(4)  of  Directive  90/388/EEC  as  amended  by  the  Mobile 
to  ensure  effective  competition  between  operators 
Directive,  "the  requirement 
competing  in  the  relevant  markets"  and  should  give,  under  Art.  10(3)  of  Directive 
97/13/EC,  "due  weight  to the need  to facilitate  the  development  of  competition  and  to 
maximise  benefits for  users".  Frequencies  should be  granted  in  an  adequate  way  so  as 
to allow  real competition  between  operators, bearing in mind  that there is no  unique 
solution:  Member  States  have  to  identify  the  most  appropriate  assignment 
in  the 
specific  national  context  on  the  basis  of  a  thorough  evaluation  of  market  needs.  An 
inadequate  frequency  assignment  could in fact  result  into  increasing  the operators'  roll 
out  costs  of  the  networks  (especially  in  urban  areas  where  the  effort  to  acquire  sites 
might be substantial,  given  planning  rules  and  the cost  of negotiating  agreements  with 
a  great  number  of  individual  owners  and  landlords)  thus  affecting,  especially  in  the 
case of new entrants, its ability to compete  in the  market. 

21 

The  Commission  takes  the  view  that,  when  granting  frequencies  through  licensing 
procedures,  Member  States  should  make  sure  that  all  available  frequencies  are 
assigned,  in so  far as appropriate allocation  decisions have been  made.  In doing so they 
should ensure efficient  use of the spectrum and should allow operators to compete in an 
effective  way in the relevant market. 

Member  States  should  review  the  extent  to  which  claims  of  shortage  of  frequency  are 
justified  as against inefficient  use of frequency by operators. Member  States should also 
verify  that frequencies  granted are actually used for the intended purposes. They should 
report to the Commission on these matters. 

t 

The Commission will prepare a report on the implementation  of the Mobile Directive. 
In  this  context,  the  measures  adopted  by  Member  States  on  frequency  planning  and 
management will be further  reviewed. 

licensing  procedures, 

As far as licensing  is concerned  the  Licensing Directive, although  it does not aim at  full 
harmonisation  of  national 
introduce  more 
homogeneity  between  the  latter.  If,  in  accordance  with  the  principle  of  subsidiarity, 
Member  States  are  free  as  regards,  for  instance,  choice  of  procedures  and  level  of 
licensing  charges,  they  have  nevertheless  to  comply  with  the  relevant  principles  laid 
down  by  the  Directive  (such  as: priority  to  be given  to  "lighter"  authorisation  regimes; 
granting of  individual  licences only  in specific  circumstances;  maximum  duration  of the 
licensing  procedures;  licence  fees  to  reflect  the  administrative  costs  incurred  in  the 
issuing of the licence, etc.). 

is  expected 

to 

The  Commission  notes  that,  in  practice,  divergent  authorisation  procedures  for  voice 
telephony  and public  telecommunications  networks have been  implemented  by Member 
States, although  virtually  in all cases individual  licences are required  to apply  for  scarce 
resources,  i.e.  numbers  and/or  frequencies.  In  some  Member  States  auctioning  systems 
arc  under  consideration  or  already  being  put  in  practice  for  attributing  certain 
frequencies. 

The number of authorisations granted  also varies between  Member Stales, which  is partly 
to be explained  by the different  liberalisation  dates and the size and opportunities of each 
national  telecommunications  market.  In the same way,  fees  vary  widely  from  country to 
country. 

The Commission will  review by 2000, on the basis of the results of the application of the 
Licensing  Directive,  the  extent  to  which  licensing  procedures  can  be  improved  and 
harmonised within the Community. 

Finally,  as regards  safety  of frequency  usage,  even  though  this  issue  is not  covered by 
the current Communication, it is worth mentioning it given its growing sensitiveness and 
importance. Work is being carried out by the Commission  on the subject,  and a  Scientific 
Steering  Committee  has  been  set  up  for  this  purpose,  which  has  recently  provided  an 

22 

opinion  on  the  possible  health  effects  from  exposure  to  electromagnetic  fields  (011/-
300011/.)". 

•The  Commission  will  consider  reviewing  whether  safety  of  frequency  usage 
adequately  addressed  by  the current  regulatory  framework. 

is 

6.4  Particular  - GSM 

•  The  Commission  reviews  and  assesses  national  plans,  to  be  prepared  by  NRAs, 

to 
allocate  the  full  range  of  frequency  set  out  in  the  Directive,  in  particular  raising  the 
issue  of  the  phasing  out  of  the  analogue  use  of  the  GSM  bands.  In  the  lack  of 
notification  of plans, the Commission  will  open  infringement  procedures. 

•  The  Commission  is  of  the  view  that  member  States  should  ensure  that  adequate  and 
transparent  information  is provided  to consumers  as to the  phasing  out  of the  analogue 
services. 

•  The  Commission  will  consider discussing  with  NRAs  about  a mechanism  to assess  the 

effective  use of  frequencies  already  granted. 

•  The  Commission  will  considers  mechanisms 

to  ensure  binding  designation  of 

frequencies  to be reserved  for  DCS  1800. 

6.5  Particular -  ERMES 

•  The  Commission  reviews  and  assesses  national  plans,  to  be  prepared  by  NRAs, 

to 
allocate  the  full  range  of  frequency  set  out  in  the  Directive,  in  particular  raising  the 
issue  of  the  phasing  out  of  the  analogue  use  of  the  ERM ES  bands.  In  the  lack  of 
notification  of plans, the Commission  will  open  infringement  procedures. 

•  The  Commission 

is  carrying  out  a  study  on  the  future  o(  the  paging  market, 
investigating  in  particular  growth  prospects  and  likely  scenarios  for  evolution  of  the 
paging  market  in  Europe. 

•  The Commission  will  continue to encourage  use of  ERM ES. 

6.6  Particular-DECT 

•  The  Commission  will  consider  investigating  the  extent  to  which  existing  frequencies 
are  sufficient  and  if  more  frequencies  should  be  made  available,  given  the  market 
demand  for  DECT  systems. 

•  The  Commission  will  consider  reviewing  the  frequency  implications  of  integration  of 

GSM  and  DECT. 

•  The Commission  will  continue  to encourage use of  DECT. 

}1  Opinion  adopted  at the  meeting  of the  Scientific  Steering  Committee  of  25-20  June  1998. 

23 

A N N E X ES 

(DATA  AT 1 JANUARY  1998) 

24 

A N N EX  1 

COUNCIL DIRECTIVE 87/372/EISC: NATIONAL REGULATORY FRAMEWORKS 

Belgium 

Transposition  has been achieved by Royal Decree of 21 May  1991 {Arrêté Royal  relatfà 
l'attribution des fréquences  destinées au service mobilophone pan-européen,  published 
in  the  Moniteur  Belge  of  5  September  1991)  and  by  Royal  Decree  of  7  March  1995 
concerning  provision  of  GSM  services  (now  repealed  by  the  Royal  decree  concerning 
GSM  of  24  October  1997).  The  1991  Decree  allocated  905-914  and  950-959  MHz 
frequencies  to  GSM,  in  accordance  with  article  1 of  the  directive,  and  called  for  the 
whole  of the reserved  band  (890-915  and  935-960  MHz)  to be  attributed  by  1 January 
1996 at the latest; the  1995 Decree has completed the attribution. 

Frequencies  currently  allocated  to  GSM  include  890-914  and  935-959  MHz.  It  would 
appear that  that  there  is still  some band  available  for  further  licences (880-890 and 925-
935  MM/).  There  is  one  analogue  system  (NMT450),  operating  in  a  different  band 
(451.3-455.74  and  461.3-465.74  MHz), with  an  unknown  expected  lifetime  since  there 
are still over 300.000 subscribers. 

Denmark 

The directive has been transposed by the Radiocommunications Act n. 297 adopted on 22 
April  1992.  Frequencies  are  currently  allocated  as  follows:  890-895.6  and  935-940.6 
MHz to analogue NMT900, 896-914 and 941-959 MHz to GSM, and 914-915 and 959-
960- MHz to cordless telephone system CT-1. The two analogue systems are expected to 
be phased out by 2005, but no plans have been communicated to the Commission on that. 

Germany 

Transposition  has  been  achieved  by  the  Law  for  Telecommunications  Equipment  of  3 
July  1989 (Gesetz ùber Fernmeldeanlagen  (FAG) in der Fassung der Bekanntmachung, 
BGB1. I S.  1455).  There is no analogue system  in the band devoted to GSM. 

Greece 

the  Ministry  of  Transports  and 
issued  by 
The  National  Allocation  Table, 
Communications, was revised in  1994 (FEK  157/B/1994). Frequency band  890-915 and 
935-960 MHz are reserved to GSM. Of this band,  10 MHz have been allotted twice in the 
two relevant bands.  There are no analogue systems. 

Spain 

The directive has been  transposed by Order of 29 December  1989 (Cuadro Nacional de 
Atribuciones de  Frecuencias, C.N.A.F.),  by  Royal  Decree  1486/1994  of  15  July  1994 
concerning  regulation  on  GSM, and  by Order of  26 September  1994 concerning  tender 
for the granting of GSM licences. 

The bands 890-915 and 935-960 MHz are reserved  for GSM, although  full  occupation of 
the band  will  be reached  gradually:  905-915  and  950-960 were moved  to  GSM  in June 

25 

1995,  899-905  and  944-950  MHz  in  January  1996.  A  remaining  890-899  and  935-944 
MHz band should be attributed to GSM by January 2001. Apparently, the main problems 
with  implementation  of the directive  arc  linked  to occupation  of the concerned  band by 
fixed  service systems.  There arc still  two analogues  services: TACS, which  operates in 
890-905  and  935-950  MHz,  is  expected  to  be  phased  out  by  1  January  2007,  and 
TMA450 (464-468 and 454-458 MHz) should be closed by 31 December  1997. 

France 

The  directive  has  been  transposed  by  Decree  of  27  April  1987  which  modifies  the 
national  frequency  allocation  table  established  by  the  Comité  de  coordination  des 
fréquences,  under  which  the  whole  of  the  band  890-915  and  935-960  MHz  has  been 
reserved and assigned to GSM operators. 

There are two analogue  systems, which  make use of a different  band: NMT450 (441.5-
443.55  and  451.5-453.55  MHz),  operated  by  SFR,  and  Radiocom2000  (414.8-418  and 
424.8-428  MHz;  part  of  174-223  MHz;  884.8-888  and  929.8-933  MHz  in  some  big 
towns), operated by France Telecom. 

Ireland 

The directive has been transposed  by European Communities / Co-ordinated  introduction 
of  public  cellular  digital  land-based  mobile  communications  GSM  Regulations  1995 
(Statutory Instrument n. 416 of 8 December 1994),  under which frequency  band 900-915 
and 945-960 MHz are reserved to GSM. 

Frequency band 890-895 and 935-940 MHz is currently allocated to the analogue system 
(TACS); an indicative  date of December  2003 exists  for  TACS to  cease  operation.  The 
frequency  band  895-900 MHz  and  940-945  MHz will be  allocated  to the winner  of the 
third  mobile telephony  licence (i.e. 2x4.8 MHz). The third  mobile operator  will  also be 
allocated  2x  14.4 MHz of DCS 1800 spectrum. No plans  for full  occupation of the band 
have been have been communicated to the Commission. 

Italy 

Transposition  has  been  achieved  by  Ministerial  Decree  of  4  May  1993, by  Ministerial 
Decree  of  3 June  1997 and  by  Ministerial  Decree  of  20  March  1998. According  to  the 
latter,  which  amends  note  58  of  the  national  frequency  plan,  frequencies  894,5-913,7 
MHz  and  939,5-958,7  MHz have  been  made  available  to  GSM  as  from  15 Aprill998, 
while  892,3-813,7 MHz and 937,3-958,7  MHz will be made  available  form  15 October 
1998. Before,  only  frequencies  897.1-913.7 and  942.1-958.7  are exclusively  assigned  to 
GSM. The remaining  band  which  is reserved  to  GSM but  is  still  currently  allocated  to 
analogue, may be attributed for exclusive occupation to GSM on the basis of commercial 
demand. 

The  914-915  MHz  and 959-960  MHz band  is occupied  by  a cordless  telephone  system 
using  the  standard  CT-1,  which  is  currently  being  phased  out  to  accommodate  GSM. 
There  is  also  one  analogue  system  (E-TACS),  provided  by  Telecom  Italia  Mobile, 
operating  in the 880-894.5  and 925-937.5  MHz band.  It is expected  to be phased  out by 
31 December  2005, as set out by the July  1997 Decree. However, detailed  plans  for the 
occupation of the whole of the band have not been yet communicated  to the Commission. 

26 

Luxembourg 

The  directive  was  transposed  by  decision  of  the  Administration  des  Postes  et 
Telecommunications  of  20  March  1990, under  which  frequencies  905-914  and  950-956 
MHz  were  reserved  immediately  to  GSM.  The Commission  has  no  information  about 
subsequent allocation of the entire range prescribed by article  1(2) of the Directive. 

Netherlands 

The directive was transposed  by the Telecommunications  Act of  1988 (WTV -  Wet of de 
Telecommunicatievoorzieningen,  Stb. n. 552/1988), as modified  by the Law  of  16 June 
1994  (Stb.  n.  628/1994),  by  the  Mobile  Telecommunications  (GSM)  Decree (Besluit 
mobiele telecommunicatie GSM, Stb. n. 629/1994) and other secondary legislation of the 
same year. 

Frequencies allocated to GSM include, in principle, the whole of the range laid down by 
article  1(2) of the directive. However, part of the "extension" band  is currently occupied 
by an analogue service (NMT900) operated by KPN Telecom. The analogue service will 
be  phased  out before  1 January  2000. As from  1 July  1998 KPN Telecom  will have to 
make available  18 channels  out  of this band, which  will  be reassigned  to the two GSM 
operators (KPN  Telecom and  Liberté!); between  1  October  1999 and  31  December  1999 
the remaining  23 channels  will  be reassigned  to the same operators.  As  from  1 January 
2000  KPN  Telecom  will  use 62  of  the  total  of  119 GSM  channels  and  Libertel  57The 
914-915 MHz and 959-960 MHz band is used for CT-1 applications. 

Austria 

Transposition has been achieved by Ordinance BGB1. n. 313/1996 of 5 July  1996, which 
sets  out  a gradual  allocation  of frequencies to  GSM.  Current  allocation  covers  898-914 
and 943-959 MHz; by  1 January  1998 898-903  and 943-948 MHz was moved to GSM, 
and by  1  January 2005 the whole of the band foreseen  by the directive will be attributed 
to GSM, after phasing out existing analogue services. 

There are currently  two analogue  systems: TACS, which  operates on  890-898  and 935-
943 MHz, and  SLT1 (a relatively  small  networks, with only  500.000 subscribers) which 
is  operated  in  914-915  and  959-960  MHz.  They  are  expected  to  be  phased  out  by  1 
January 2005. 

Portugal 

On 3 February  1994, in  accordance with  the powers  granted  by Decree-law  283/89, the 
Instituto  des  Comunicaçôes de  Portugal  reserved  frequency  bands  for  pan-European 
digital  cellular  land-based  mobile  communications  in  the  850-914  and  935-959  MHz 
band. 

At  present  the  890-914  and  935-959  MHz  frequencies  are  allocated  to  GSM.  In  the 
medium  term  full  occupation  of  the  whole  of  the  range  890-915  and  935-960  is 
envisaged, but this will only be possible after  the 914-915 and 959-960 MHz bands have 
been  made  available  from  cordless  telephones  (CT-1).  There  is  also  another  analogue 
system  operating  in the band  450-470  MHz  ("C-network" system),  for  which  a  licence 
has  been  issued  until  2007.  However,  it  is  probable  that  the  system  is  closed  before, 
owing to limited number of subscribers. 

27 

Sweden 

The directive  has been  implemented  through  the published  National  frequency  allocation 
table, and a complex of subsequent  licensing decisions and secondary  legislation. 

Following reallocation  of  frequency  in  1996 and  1997 (decision  by the National  Post and 
Telecom  Agency of  1 December  1996; decision  by the same authority  of 25 April  1997, 
PTSFS:5  1997), the 890-915 and 935-960 MHz band has been re-attributed to GSM. Part 
of this band, however,  is currently  occupied by analogue services (NMT: 890-893.1 and 
935-938.1  MHz;  CT-1:  914-915  and  959-960  MHz).  Under  PTSFS:5  1997,  which 
contains plans  for  making frequency band  available  to GSM, the whole band  should be 
allocated  to GSM by 2010 at the latest, but the deadline could be anticipated  due to very 
high  commercial  demand  for  GSM.  Assessment  of  the  need  for  further  frequency  to 
GSM  will  be  carried  out  every  six  months,  based  on  traffic  measurements  and  each 
operator's  forecasts concerning expansion of the service. 

Finland 

A  first  set  of  frequencies  were  reserved  for  GSM  in  August  1987  by  decision  of  the 
Telecommunications  Administration  Centre  (TAC).  Further  decisions  were  taken  by 
TAC  in  February  1990,  December  1993,  August  1994,  May  1996,  November  1996, 
February  1997,  April  1997  and  May  1998. TAC's  decision  of  December  1993, which 
formally  transposes  the  directive, refers  to  future  allocation  of  additional  band  to  GSM 
according to commercial demand. 

Current  frequency  allocation  is described  in the table attached. Part of the band reserved 
for GSM is currently occupied by analogue services, including NMT900 and CT-1 (914-
915 and 959-960 MHz). Frequencies are being gradually transferred from NMT to GSM 
based on traffic  loading information,  as set out by the decision of April  1997. NMT900 is 
expected  to  be  phased  out  in  10-15  years  from  now  (2007-2012),  but  no  decision  has 
been made concerning phasing out of CT-1. 

Besides  NMT900,  there  is  another  analogue  service  operating  in  a  different  band 
(NMT450: 463-467.5 / 453-457.5  MHz), and  an analogue/digital  service (ARP/Mobiltex 
147.9-149.9  and  152.9-154.9  MHz)  which  is  also  based  on  different  frequencies.  They 
should  be phased out in  10-15 years the former and after  2000 the latter. 

United  Kingdom 

No laws have been enacted to implement  the Directive, since current  existing  legislation 
is considered  sufficient  to permit provision of GSM. This technology and the licensing of 
GSM  base  stations  is  covered  by  the  1949  Wireless  Telegraphy  Act,  and  GSM  mobile 
equipment  is exempted from licensing under the Wireless Telegraphy  Regulation, which 
should  have  been  published  in  September  1997.  The  provision  of  GSM  network  is 
covered by the 1984 Telecommunications Act. 

GSM  is  operated  in  the  890-915  and  935-960  MHz  frequency  band.  Both  TACS 
operators are reported  to have been migrating TACS traffic  out of the primary GSM band 
over the  past  year  to  enable  GSM  expansion  into  the  whole  band.  E-TACS  systems  are 
also  operated  in the band  872-888 and  917-933  MHz at  present.  Both  analogue  systems 
are expected  to be closed  by 2005. The Commission  has not, however,  received  any plan 
for the phasing out. 

28 

TABLE  1 -  G SM  FREQUENCY  A S S I G N E M E NT  (1  JANUARY  1998  -  Update at 30 June 1998 in italics, where  available) 

Country 

Licences granted 

Belgium 

GSM: 
- Proximus 
- Mobistar 

Denmark 

DCS 1800: 
KPN Orange (June 1998) 

GSM/DCS 1800: 
-  Sonofon 
-TDM 

DCS 1800: 
-Telia 
-  Mobilix 

Germany 

GSM: 
- DeTeMobilNet  GmbH 
-  Mannesmann  Mobilfunk  GmbH 

DCS 1800: 
-E-Plus 
- VTAG Iuterkom  GmbH 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers4 

890-914 935-959MHz 

2x24 MHz 

956.832 

896-904.8'941-949.8 MHz 
905-913.8/950-958.8 MHz 

2x17.6 MHz 

1.260.0001 

890.1-914.9/935  1-959.9 MHz2 

2x24.8 MHz 

7.800.0003 

Source: ERC +  data provided  to the Commission by the National Regulatory Authorities. 
* 

Figures take account of the fact, where appropriate, that DCS  1800 frequencies have also been granted to GSM operators. 

1 

Subscribers of Telia and Mobilix (DCS 1800) at 1  January  1998: 0 

2  Frequencies assigned in the  1800 MHz band: E-Plus:  1758.1-1780.5/1853.1-1875.5 MHz; VTAG International GmbH: 1730.1-1752.5/1825.1-1847.5  MHz. 

3  Of which  1.000.000 with E-plus. VIAG International GrabH's subscribers at 1  January  1998: 0. 

29 

Country 

Licences granted 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers* 

1 

Greece 

Spain 

France 

GSM: 
- Panafon SA 
- TeleSTET 

DCS 1800: 
- Cosmote 

GSM: 
- Telefonica Moviles 
-Airtel 

Licensing procedure  in progress for 
DCS 1800. 

GSM: 
. - France Telecom 
-SFR 

DCS 1800: 
- Bouygues Telecom 

890-900/935-945 MHz 
905-915/950-960 MHz 

2x20 MHz 

975.2604 

899.2-906.8/944.2-951.8 MHz 
907.2-914.8/952.2-959.8 MHz 

2x16 MHz 

3.237.000 

890-915/935-960 MHz5 

2x25 MHz 

5.396.900 

4  Cosmote's subscribers at 1  January 1998: 0. 
5  Frequencies assigned in the 1800 MHz band: 1770-1785/1865-1880 MHz 

30 

Country 

Ireland 

Italy 

Licences granted 

GSM: 
- Eircell 
-  Esat-Digifone 

GSM/DCS 1800: 
- Meteor (June 1998) 

GSM: 
-TIM 
- Omnitel7 

GSM/DCS 1800: 
-WIND  (June 1998) 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers" 

900-915/945-960 MHz 

2x15 MHz 

325.000 

(June 1998: 895-915/940-960 
MHz)6 

(June 1998: 2x20 
MHz) 

897.1-905.3/942.1-950.3 MHz 
905.5-913.7/950.5-958.7 MHz 

2x16.4 MHz 

8.340.000 

(June 1998: 894.5-913.7/939.5-
958.7 MHz)* 

(June 1998: 2x19.4 
MHz) 

Luxembourg 

GSM/DCS 1800: 
- PTT Luxembourg 
- Millicom Luxembourg (Tango) 

890.2-894.6/935.2-939.6 MHz 
895.2-899.6/940.2-944.6 MHz 
900-907.2/945-952.2 MHz 
907.6-914.8/952.6-959.8 MHz 

2x23.2 MHz 

67.2109 

In June 1998 the frequencies 895-900/940-945 MHz were assigned to Meteor, the winner of the third mobile licence, which also obtained 2x14.4 MHz in the  1800 MHz 
band. 
The GSM operators are entitled to receive frequencies in the 1800 MHz band. 

Following  adoption of Ministerial Decree of 20.3.1998, amending the national frequency plan, frequencies 894.5-913.7  MHz and 939.5-958.7 MHz have been made 
available to GSM as from 15.4.1998, while 892.3-813.7 MHz and 937.3-958.7 MHz will be made available as from 15 October  1998. The winner of the third mobile 
licence will obtain 2x10 MHz within the band 1755-1785/1850-1880 MHz, and another 2x5 MHz as from 1.1.2002. 

Tango's subscribers at 1 January 1998: 0. 

Country 

Licences granted 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers* 

Netherlands 

*• 

Austria 

Portugal 

GSM: 
-KPN 
- Libertel 

GSM/DCS 180010: 
- Telfort 
-  Federa 

DCS 1800: 
- sixteen regional operators 

GSM: 
- Mobilkom Austria 
- Max Mobil 

DCS 1800: 
- Connect Austria 

GSM/DCS 1800: 
-TMN 
- Telecel 
- Main Road 

890.2-892 935.2-937 MHz 
896.2-899 941.2-944 MHz 
903.8-906.2/948.8-951.2 MHz 
906.4-913.8/951.4-958.8 MHz 

(as from 1.7.1998: 
890.2-893.6/935.2-938.6 MHz 
896.4-899.4/941.4-944.4 MHz 
906.6-910/951.6-955 MHz 
902-906.4/947-951.4 MHz 
910.2-913.8/955.2-958.8 MHz) 

2x16.4 MHz 

1.458.000 

(as from 1.7.1998: 
2x17.8 MHz) 

898-914 943-959 MHz11 

2x16 MHz 

914.000 

890.2-898.2/935.2-943.2  MHz 
898.2-905.8/943.2-950.8  MHz 
906-913.8/951-958.8 MHz12 

2x23.8 MHz 

1.715.15613 

10  These operators have been assigned frequencies in the "extended band" for GSM (under ERC Decision). 

11  Frequencies assigned in the  1800 MHZ band to Connect Austria:  1758.1-1774.9/1853.1-1869.9  MHz. 

12  2x18.8 MHz in total have been assigned in the 1800 MHz bans. 

13  Main Road's subscribers at  1  January  1998: 0. 

32 

Country 

Licences granted 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers* 

Finland 

GSM: 
- Alands Mobiltelefon 

GSM/DCS 1800: 
- Sonera 
- Radiolinja 

DCS 1800: 
- Telia LTD 
- Finnet Group 

GSM/DCS  1800: 
- Telia Mobile 
- Tele2/Netcom 
- Europolitan 

DCS 1800: 
- Tele 8 Kontakt 

Sweden 

Helsinki area: 
894.1-905.5/939.1-950.5  MHz 
905.8-913.8/950.8-958.8 MHz 
Lapland: 
890.1-892.3/935.1-937.3 MHz 
900.4-907.2/945.4-952.2  MHz 
907.5-913.9/952.5-958.9 MHz 
rest of the country: 
895.7-906.3/940.7-951.3 MHz 
906.5-913.9/951.5-958.9 MHz 

893.1-899.9/938.8-944.9  MHz 
900.1-906.9/945.1-951.9 MHz 
907.1-913.9/952.1-958.9 MHz 

1.594.00014 

Helsinki area: 
2x19.6 MHz 

Lapland: 
2x15.6 MHz 

rest of the country: 
2x18 MHz 

2x20.4 MHz 

2.426.000 

14  Subscribers of Telia LTD and of Finnet Group at 1  January  1998: 0. 

33 

Country 

Licences granted 

United Kingdom 

GSM/DCS  1800: 
-  Vodafone 
-  Cellnet 

DCS 1800: 
- One20ne 
-  Orange 

Frequencies  assigned  in  the  900 
MHz band (total) 

MHz  assigned  in  the 
900 MHz band (total) 

Subscribers* 

890-905/935-950 MHz 
905-915/950-960 MHz15 

2x24.4 MHz 

6.579.00016 

15  Frequencies assigned in total in the 1800 MHz band:  1710-1785/1805-1880 MHz. 

16  Of which 2.214.000 with the two DCS  1800 operators. 

34 

TABLE 2  -  ANALOGUE SERVICES IN THE 900  MHz  BAND: FREQUENCY ASSIGNEMENT (1  JANUARY  1998) 

Country 

Licences granted 

Frequencies assigned (total)* 

MHz 
(total) 

assigned 

Subscribers 

Plans for full 
allocation  notified 
to the Commission 

Belgium 

None 

Denmark 

TDM 

890-895.6/935-940.6 MHz 

2x5.6 MHz 

240.000 

CT1: 914-915/959-960 MHz 

Germany 

Greece 

Spain 

None 

None 

Telefonica Moviles 

874-890/919-935 MHz 

2x25.2 MHz 

1.100.000 

France 

none 

Ireland 

Eircell 

890-905/935-950 MHz 

-

890-895/935-940 MHz and 
880-885/925-930MHz 

2x10 

MHz 

184.500 

Source: ERC  +  data provided  to the Commission by the National Regidatory Authorities. 

*  In italics when the spectrum  assigned to the analogue  system is included  in the band reserved for  GSM. 

no 

no 

no 

no 

no 

no 

no 

35 

Country 

Licences granted 

Frequencies assigned (total)" 

MHz 
(total) 

assigned 

Subscribers 

Plans for full 
allocation  notified 
to the Commission 

Italy 

TIM 

Luxembourg 

none 

Netherlands 

KPN Telecom 

3.394.000 

no 

Nation-wide: 
880-883.8/925-928.8 MHz and 
888-896.8/933-941.8 MHz 

In 9 large cities: 
880-896.8/925-9241.8 MHz1 

CT1: 914-915/959-960 MHz 

Nation-wide: 
2x12.6 

In  9  large  cities: 
2x16.8 

2x7 MHz 

248.214 

no 

no 

892.3-896.1/937.3-941.1 MHz 
899.5-902.7/944.5-94 7.7 MHz2 

CT1: 914-915/959-960 MHz 

Austria 

Mobilkom Austria 

890-898/935-943 MHz 

2x8 MHz 

250.000 

yes 

NB: 914-915/959-960 MHz is 
used for SLT1 

Portugal 

none 

CT1: 914-915/959-960 MHz 

2x1 MHz 

no 

1  Following adoprion of Ministerial Decree of 20.3.1998, amending the national frequency plan, the following frequencies have been assigned to analogue services 
nation-wide as from 15 April 1998: 880-894.2 and 926-939.2 MHz (2x14.2 MHz nation-wide). As from  15 October  1998 analogue services will operate in the 
band 880-892 and 926-937 MHz (2x12 MHz nation-wide). 

2  Frequency assignment for NMT 900 as from  1 July 1998: 893.7-896.3/938.7-941.3 MHz and 899.5-901.9/944.5-946.9 MHz. 

36 

Country 

Licences granted 

Frequencies assigned (total)*  MHz 
(total) 

assigned 

Subscribers 

Plans for full 
allocation notified 
to the Commission 

Finland 

Sonera 

Helsinki area: 
890-893.9/935-938.9 MHz 

Helsinki area: 
2x3.9 MHz 

380.000 

no 

Lapland 
892.6-900/93 7.6-945 MHz 

rest of the country: 
890-895.5/935-940.5 MHz 

CT1: 914-915/959-960 MHz 

Lapland 
2x7.4 MHz 

rest of the 
country: 
2x5.5 MHz 

Sweden 

Telia Mobile 

890-893.1/935-938.1 MHz 

2x3.1 MHz 

548.000 

CT1: 914-915/959-960 MHz 

United 
Kingdom 

Cellnet 
Vodafone 

872-880/917-925 MHz 
880-888/925-933 MHz 

2x16 MHz 

1.765.000 

yes 

no 

aatagBaaaBBaaOBBeaaBtaaiEi 

37 

A N N EX  2 

COUNCIL  DIRECTIVE  90/544/EEC:  NATIONAL REGULATORY  FRAMEWORKS 

Belgium 

Royal  Decree  of  30  October  1991  established  the  legal  framework  to  enable  ERMES 
services  to  be  established.  The  whole  band  has  been  reserved  exclusively  to  ERMES  but 
only  four  frequencies  can  be  used  on  a  preferential  basis  over  the  complete  territory. 
Allocation  of the  full  169.4-169.8 MLIz range will  depend  on commercial  demand,  but  no 
definite  plans have been  drawn  up so  far. 

A  "cahier  des  charges"  has  been  published  with  a  view  to  granting  three  ERMES 
licences.  Two  candidates  have  been  selected  but.  no  licence  has  been  granted  yet, 
allegedly  owing  to  the  lack  of  interest  shown  by  the  selected  operators.  The  regulator  is 
of  the  view  that  there  is  no  real  demand  to  grant  more  licences  and  is  reflecting  on  the 
future  of  paging  taking  into  account  a  possible  return  path..  There  are  currently  three 
analogue  paging  networks  using  the  POCSAG  standard,  operating  in  a  different  band. 
Their  expected  lifetime  is  unknown. 

Denmark. 

The  Directive  was  implemented  by  the  Radio  Communications  Act  of  22  April  1992, 
which,  allowed  for  ERMES  operators  to  be  established,  and  two  ERMES  licences  were 
issued  in  1997,  running  for  10  years.  The  four  channels  recommended  by  the  Directive 
have  been  allocated  to  ERMES; two  frequencies  have been  assigned  to the  two  operators 
(169.7  MHz  and  169.75  MHz). 

There  are  no  plans  to  make  available  the  full  169.4-169.8  MHz  range  for  ERMES,  and 
the  national  regulator  does  not  consider  that  there  is sufficient  demand  to  grant  additional 
licences.  It  also  seems  that  no  spare  frequency  is  available  for  further  licences.  There  is 
currently  one  analogue  service,  using  the  POCSAG  standard,. operating  over  three 
channels  around  the  4f>9 MHz hand.  !i  is expected  to be phased  out  in 2005. 

Greece 

The  Directive  was  transposed  by  the National  Allocation  Table  issued  by  the  Ministry  of 
Transports  and  Communications  and  revised  in  1994,  under  which  the  four  channels 
recommended  by  the  Directive  were  allocated  to ERMES.  Occupation  of the  whole  band 
is currently  under  consideration, but  it seems that no plans have been drawn up  so  far. 

The  Greek  operator  OTE  was  licensed  in  1995,  and  the  national  regulatory  authority 
seem  to consider  that  there is sufficient  demand  to guarantee  the  grant  of  further  licences. 
There  is  also  an  analogue  sendee  (POCSAG  standard),  operating  in  155  MHz  band, 
which  will be phased  out according  to evolution  in  demand. 

Spain 

The  directive  was  transposed  by  Order  of  29  December  1989  (Cuadro  Nacional  de 
Airibuciones  de  Frecuencias,  C.N.A.F.).  Current  allocation  covers  169.4  to  169.8  MHz 
38 

which  is exclusively  assigned  to  ERMES;  channels  will  be  allocated  starting  from  the 
highest ones. The Order does not provide for any specific  allocation of channels. 

There are no ERMES operators  licensed  at the moment, but three licences are foreseen  in 
the  medium  term.  There  arc  a  number  of  POCSAG  analogue  paging  systems  (three 
national  systems  and  35  with  local  coverage  only)  occupying  the  band  146-174  MHz, 
which  are  expected  to  be  closed  depending  on  market  demand  or  medium  term 
replacement by ERMES systems. 

France 

The directive  has been  transposed  by  a regulatory  act  which  has  included  note F036  in 
the National  frequency  allocation  table. The whole band  has been  reserved  for  ERMES 
and it is not foreseen  that parts of this band are used for other technologies. 

Three  operators  have  been  licensed  in  1993  to  provide  ERMES:  TDR,  Infomobile, 
FTMR,  the  sole  former  using  three  channels  and  the  reminder  using  two  channels. The 
French  authorities  envisage  to  attribute  more  channels  to  existing  operators  or  to  new 
applicants,  if  any,  but  they  do  not  think  that  the  demand  is  sufficient  for  the  moment. 
There are no analogue systems operating in the same band. 

Germany 

The  Telecommunications  Equipment  Law  (FAG) of  3  July  1989  established  the  legal 
framework  for  ERMES  services  and  the  169.4-169.8  MHz  frequency  band  has  been 
identified  for exclusive use for ERMES. 

Three ERMES licences have been granted. It seems that there is not sufficient  demand to 
grant  additional  licences;  however,  spare  frequencies  are  available  which  could  be 
utilised  for  further  licences  should  the  need  arise.  It  also  seems  that  some  of  the 
frequencies  reserved to ERMES are used for the broadband cable network. 

Ireland 

The directive was transposed by European Communities/Pan-European  land-based public 
paging  service  -  ERMES  Regulations  1995  (Statutory Instrument  n. 28  of  31  January 
1995), under  which  four  channels  in  the prescribed  band  were  reserved  immediately  to 
ERMES  (169.450;  169.550;  169.750;  169.800).  As  to  the  other  channels  in  the  band 
reserved  by  the  directive,  the  Regulation  lays  down  that  they  will  be  designated  to 
ERMES  according  to commercial  demand.  No  indications  have been  given  about  plans 
for full  occupation of the band. 

So  far,  no  licences  for  ERMES  have  been  granted.  There  is  also  an  analogue  system, 
based on the POCSAG technology and occupying the 153 MHz frequency band, which is 
not expected to be phased out. 

Italy 

The  legal  framework  for  ERMES  was  established  by  Ministerial  Decree  of  25  March 
1992, under which the  169.4-169.8 MHz frequency band was reserved  for the system in 
question.  The  four  channels  recommended  by  the  Directive  have  been  allocated  to 

.39 

ERMES, and the remaining channels will be made available according to development of 
the service. There are no plans for exclusive occupation of the entire band. 

There  is  one  ERMES  operator  (Telecom  Italia  Mobile).  Licences  are  granted  on 
application,  but  it seems that  there  is no demand  for other  licences  at  present.  There arc 
also two analogue systems which  make use of a different  band: Teledrin  (161.175 MHz), 
operated  by  Telecom  Italia  Mobile,  and  Euromessage  (466.075  MHz), whose  expected 
lifetime remains unknown. 

Luxembourg 

The  legal  framework  for  ERMES  was  established  by  administrative  decision  (Decision 
by  the  Director  of  the  Administration des  Postes  et  des  Télécommunications)  of  16 
August  1991,  under  which  the  169.4-169.8  MHz  frequency  band  was  reserved  for  the 
system in question. 

Netherlands 

The  directive  was  transposed  by  Telecommunications  Act  of  1988  (WTV  -Wet  of  de 
Telecommunicatievoorzicningen,  Stb.  n.  552/1988),  as modified  by  the  Law  of  16 June 
1994  (Stb.  n.  628/1994),  by  the  Mobile  Telecommunications  (GSM)  Decree (Besluit 
mobiele telecommunicatie  GSM,  Stb.  n.  629/1994)  and  by  a  notice  of  the  Ministry  of 
Transport,  Communications  and  Water works of  1995. The  169.4-169.8 MHz frequency 
band has been  reserved  for  ERMES  and, in particular, the  following  channels have been 
made  available:  169.450;  169.550;  169.750.  Full  allocation  of  the  band  will  depend  on 
development  of  market  demand;  it  seems  that  no  plans  have  been  established  in  this 
respect. 

Two  ERMES  licences  have  been  granted  so  far  (KPN  Telecom  and  CallMax,  one 
channel  each); a third  operator has shown serious interest  for  the remaining  channel but 
no formal  application has yet been received. There are also  five  analogue systems using 
the  POCSAG  standard,  operated  in  the  VHF  and  UHF  bands;  they  are  expected  to  be 
closed in about ten years 

Austria 

Ordinance BGB1 n. 313/1996 was passed on 5 July  1996 to allow  for  ERMES operations 
to commence. The following channels have been allocated to ERMES:  169.450 MHz and 
169.600  MHz  nation-wide;  169.550 MHz  except  for  southern  regions;  169.700  MHz in 
southern regions only. 

There  are  no  ERMES  operators  nor  ERMES  licences  are  foreseen:  the  commercial 
demand  for  this  system  is  considered  non-existent  since  there  are  already  three  nation 
wide paging  systems  in operations. Three  analogue paging  systems  are in place, as well 
as a number of private networks  and networks  for  safety  purposes, which  operate in the 
frequency  band  reserved  Tor  ERMES  under  the  directive  (169.425,  169.450,  169.475, 
169.500, 169.525, 169.550, 169.575, 169.600). 

40 

Portugal 

On  3 February  1994, in  accordance  the with  powers  granted  by  Decree-law  283/89, the 
Instituto des  Comunicacacs dc  Portugal designated  the  band  169.4125-169.8125  MHz 
for use by ERMHS. 

In the beginning of  1998 seven channels within this band were identified  and a licensing 
procedure  based  on  the  "first-come-first-served"  approach  was  opened.  However,  unitl 
now  no  ERMES  licences  have been  required.  A part  of the remaining  frequency  in the 
designated  for  ERMES  is  still  occupied  by  private  mobile  radio  systems  based  on 
analogue  technology,  but  it  seems  that  there  are  no  plans  for  making  this  frequency 
available.. 

There  are  four  national  analogue  networks  and  two  regional  networks  (Madeira  and 
Azores), based  on the  POCSAG standard, operating over different  frequencies  (164.925, 
167.200,  167.325  MHz,  167.375  MHz,  168.950  MHz).  Three  of  the..nation^  analogue 
networks arc also entitled  to  use the  FLEX standard. The relevant  licences will  expire in 
2007  -• 

•  • 

•- 

; 

, 

Finland 

The  first  frequency  assignments  were  granted  in  August  1991  by  Telecommunications 
Administration  Centre  (TAC).  A  TAC's  decision  of  December  1993,  which  formally 
transposes  the  directive,  refers  to  future  allocation  of  additional  band  according  to 
commercial demand. 

Only Channel  11 is currently  in use (with Sonera) and it is considered  sufficient  to meet 
traffic  needs.  There  are  no  plans  to  allocate  the  full  169.4-169.8  MHz  range  at  the 
moment,  owing  to  lack  of  sufficient  demand.  One  ERMES  network  is  currently  in 
operation, and it seems that demand would not justify  other networks.  No difficulties  are 
foreseen, however, in opening new channels to ERMES if the need arises. 

There are, on  the other  hand, 440 analogue  PMR-nctworks (minly  only  mobile  stations) 
in  the  band  reserved  to  ERMES  under  the  directive,  with  an  expected  lifetime  of  5-10 
years. 

Sweden 

The directive has been implemented through the published National frequency allocation 
table,  and  subsequent  licensing  decisions.  Two  ERMES  licenses  have  been  issued,  and 
channels allocated  accordingly within, the  169.425-170.0375  MHz. , although no details 
have been given as to the precise channels; the service, however, has not yet been started. 
The  band  reserved  for  ERMES  by  the  directive  is  still  partly  occupied  by  analogue 
networks,  including  national  ones,  and  there  are  no  plans  to  move  this  frequency  to 
ERMES given the seemingly limited demand for this service. 

United Kingdom 

No laws have been  enacted  to implement the Directive, since current  existing  legislation 
is considered  sufficienl  to permit provision of ERMES. The technology and the licensing 
of  base  station  are  covered  by  the  existing  1949  Wireless  Telegraphy  Act.  ERMES 
paging  receivers  are  exempt  from  licensing  under  the  Wireless  Telegraphy  Apparatus 

41 

(Receivers) (Exemption) Regulation  1989. The provision of ERMES  telecommunications 
networks is covered by the existing  1984 Telecommunications Act. 

ERMES is operated  in the range  169.4125-169.8125. One  licence has been  issued  and a 
further  four  are envisaged.  Each operator  has been  allocated  a single channel;  remaining 
channels arc held  in reserve to accommodate  future  expansion  in the paging  market, but 
no  plans  have  been  drawn  up  so  far  nor  the  demand  is  considered  sufficient  to  grant 
additional licences. There are also seven POCSAG analogue paging systems in operation 
(four  national  licences,  three  geographically  restricted),  making  use  of  different 
frequency.  A survey  is under way which  should  determine  paging growth  rates  for  next 
ten years so as to allow definition of spectrum strategy proposals. 

42 

TABLE 3 - ERMES  FREQUENCY ASSIGNEMENT (MARCH 1998) 

Country 

Licences granlliilll'l"--

Frequency allocation under 
the National Frequency Plan 

Channels 
assigned* 

Plans for full 
occupation 
notified to the 
Commission 

Analogue 
systems in 
operation 

Band reserved 
for ERMES 
and used for 
analogue 
systems 

Belgium 

None 

band reserved + priority to the 
four channels indicated by the 
directive 

None 

Denmark 

- TeleDanmark 
-  Infocall 

band reserved + priority to the 
four channels indicated by the 
directive 

-169.7 MHz 
-169.75 MHz 

Germany 

- DeTeMobileNet  GmbH 
- InfoCom  GmbH 
-  Miniruf  GmbH 

band reserved 
(169.40-169.80 MHz) 

Greece 

-OTE 

Spain 

None 

priority to the four channels 
indicated by the directive 

band reserved + priority to the 
four channels indicated by the 
directive 

Source: Data provided to the Commission by the National Regulatory Authorities 

* Where available, channel/s assigned to each operator are indicated. 

-5 
-4 
-4 

n.a. 

None 

no 

no 

no 

no 

no 

3 (POCSAG) 

no 

1 (POCSAG) 

no 

3 (POCSAG, 
FLEX) 

no 

1 (POCSAG) 

no 

3 nation-wide + 
35 with local 
coverage 

no 

43 

*  » 

|  Country 

Licences granted . 

Frequency allocation under 
the National Frequency Plan 

Channels 
assigned 

1 

--•-rmmmm;^ 

j France 

-TDR 

band reserved 

Plans for full 
occupation 
notified to the 
Commission 

Analogue 
systems in 
operation 

Band  reserved 
for ERMES 
and used  for 
analogue 
systems 

no 

n.a. 

no 

-169.475 MHz 
169.725 MHz 
169.750 MHz 
-169.550 MHz 
169.575MHz 
-  169.625 MHz 
169.650 MHz 

-FTMR 

- Infomobile 

Ireland 

None 

Italy 

-TIM 

band reserved + priority to four 
channels 

None 

no 

1 (POCSAG) 

no 

band reserved + priority to the 
four channels indicated by the 
directive 

-169.6 MHz 

no 

2 

no 

• Luxembourg 
s 
: Netherlands 

i 

n.a. 

band reserved 

n.a. 

- KPN Telecom 
- CallMax 

band reserved + priority to three 
channels 

-  169.750 
-  169.550 

Austria 

None 

band reserved + priority to four 
channels 

None 

no 

no 

no 

n.a. 

n.a. 

5 (POCSAG) 

No 

3 (POCSAG) + 
private/safety 
networks 

Yes 

Country 

Licences granted 

Frequency allocation under 
the National Frequency Plan 

Channels 
assigned 

Plans for full 
occupation 
notified to the 
Commission 

Analogue 
systems m 
operation 

Portugal 

None 

band reserved + 7 channels 
identified 

None 

no 

4 (POCSAG), of 
which E can 
also use FLEX 

Band reserved 
for ERMES 
and used for 
analogue 
systems 

Part of the band 
reserved  for 
ERMES is still 
occupied by 
private  mobile 
radio systems 

Finland 

• Sonera 

band reserved + priority to three 
channels 

-  169.675 MHz 

no 

Sweden 

United 
Kingdom 

-Telia 
- Tele Danmark 

band reserved + priority to four 
channels 

-169.650 MHz 
-169.725 MHz 

- PageNet(UK) Ltd 
.  Page One 
Communications Ltd 
- Vodapage Ltd 
BT Mobile Ltd 

band reserved 
(169.425-169.800 MHz) 

169.425-169.800 
MHz (total) 

no 

no 

Yes 

440 small  PMR 
networks 
(mainly only 
mobile  stations) 

1 nation wide 
paging network 

Yes 

8 (POCSAG), of 
which 5 nation 
wide 

no 

45 

A N N EX  3 

COUNCIL DIRECTIVE91/287/EEC:  NATIONAL REGULATORY  FRAMEWORKS 

Belgium 

A Royal  Decree was passed  on  8 January  1992 to enable DECT technology  to be used. 
The  1880-1900  MHz  frequency  band  has  been  allocated  for  DECT  use  with  priority 
being  given  to  DECT  usage  in  this  band.  It  seems,  however,  that  there  are  practical 
problem in making spectrum available owing to existing military radio links. 

There arc currently no DECT operators. DECT systems are mainly used only for wireless 
telephones  and  wireless  PBXs  which  do  not  require  any  licence.  Licensing  of  wireless 
local  loop  applications  is, however,  under  consideration.  Three  analogue  PAMR  trunk 
systems arc in operation in a different  band (410-430 MHz). 

Denmark 

The Directive was implemented  by the Radio Communications Act of 22 April  1992. The 
whole  1880-1900 MHz band  has been allocated  to DECT, and priority  is given to DECT 
usage  within  this  band.  Use  of  DECT  was  wholly  liberalised  in  1996  and  requires  no 
licence (it may be provided under a general class licence). No DECT licences have been 
granted nor the demand is considered sufficient  to envisage more operators. No analogue 
systems are in operation. 

Germany 

The Telecommunications  Equipment Law (Gesetz ûber Fernmeldeanlagen  (FAG)  in der 
Fassung  der  Bekanntmachung, BGB1.  I  S.  1455),  adopted  on  3  July  1989  (BGBI.IS 
1455), allows  for the use of DECT. The whole  1880-1900 MHz band has been allocated 
exclusively  for  this  system.  Licences  are  required  for  WLL  applications,  and  currently 
seven licences have been granted  for experimental purposes. 

Greece 

The Directive was transposed by the National Allocation Table issued by the Ministry of 
Transports and Communications and revised in  1994 (FEK  157/B/1994) under which the 
whole 1880-1900 MHz band has been allocated for the priority use of DECT, and priority 
given to this system within the band in question.  Under its Special Operating Licence of 
1995,  granted  pursuant  to  Law  2246/1994,  the  Greek  operator  OTE  has  the  right  to 
provide  DECT  services  nation-wide  using  allocated  frequency  between  the  band 
designated  for  DECT. The  system,  however,  is  not  yet  in  operation,  nor  it  seems  that 
there  is  sufficient  demand  to  justify  the  granting  of  further  licences.  There  are  no. 
analogue systems in operation. 

Spain 

The  directive  was  transposed  by  Order  of  29  December  1989  (Cuadro  Nacional  de 
Atribuciones de Frecuencias, C.N.A.F.)  and subsequent modifications.  The whole  1880-
1900 MHz band has been allocated to DECT, and priority is given to DECT usage within 
this  band.  For  the  time  being  there  is  no  public  DECT  operator,  DECT  systems  being 

46 

used  only  for  wireless telephones  and  wireless PBXs which  do not  require  any licence. 
There are no analogue systems in operation. 

France 

The directive  has been  transposed  by  a regulatory  act  which  has  included  note  F075 in 
the  National  frequency  allocation  table.  A  Ministerial  Decree  concerning  introduction 
and private use of DECT equipment  has been adopted on  13 May  1995.  The whole band 
has been  reserved  for  DECT, and priority given to this system. However, some problems 
remain owing to the existence of some military telecommunications systems operating in 
the same band. 

Two licences have been granted  so far: CEGETEL (covering the areas of Saint-Maurice-
des-Fossés, Nice and La Défense)  and ADP (Paris). No analogue system is in operation, 
with the exception of the above mentioned military systems. Use and licensing of DECT 
technology in the local loop is currently under consideration. 

Ireland 

The  directive  was  transposed  by  European  Communities/digital  European  cordless 
telecommunications  -  DECT  Regulations  1994  (Statutory Instrument n.  168 of  1 July 
1994), under  which  the whole  1880-1900 MHz band  has been  allocated  exclusively  for 
this system  and shall enjoy  priority. There are no DECT Tclepoint or wireless  local  loop 
operators in Ireland. 

Staly 

The legal framework  for DECT was established by Ministerial Decree of 18 March 1994, 
under  which  the  whole  band  has  been  reserved  for  DECT,  and  priority  given  to  this 
system.  A  DECT  licence  was  granted  to  the  incumbent  operator,  Telecom  Italia,  in 
December  1997.  Operation  have  started  in  28  cities.  It  seems  that  there  is  sufficient 
demand for granting further  licences. 

Luxembourg 

The legal framework  for  DECT was established  by administrative decision  (Decision by 
the  Director  of  the  Administration des  Postes  et  des  Télécommunications)  of  30 
September  1991, under which  the whole band has been reserved  for  DECT, and  priority 
given to this system. 

Netherlands 

The directive was transposed by the Telecommunications Act of 1988 (WTV -  Wet of de 
Telecômmunicatievoorzieningen,  Stb.  n.  552/1988),  and  by  other  secondary  legislation 
(Ministerial decision of 13 January  1992). The whole band has been reserved  exclusively 
for  DECT,  and  priority  given  to  this  system.  Licences  are  not  required  for  DECT 
operations,  and  the  number  of  existing  operators  has  not  been  specified.  No  analogue 
systems are in operation. 

>*''•u 

Austria 

Ordinance BGB1 n.  313/1996 of 5 July  1996 was passed to enable DECT technology- to 
be  used.  The whole  1880-1900 MHz band  has been  allocated  to  DECT  and the  system 

47 

has  been  given  priority  within  this  band.  There  are  no  DECT  licences,  nor  analogue 
systems  in operation. DECT-SLT  application require  a licence, while no DECT  licences 
have been issued  for wireless local loop. 

Portugal 

On  3  February  1994,  in  accordance  with  the powers  granted  by  Decree-law  283/89, the 
Institute) des Comunicaçôes de Portugal reserved to DECT systems the whole band  1880-
1900  MHz.  For  the  time  being,  no  licences  have  been  issued,  and  the  way  different 
types of DECT applications will be authorised  is still  under consideration.  In this respect, 
the Portuguese  authorities  have  launched  a call  for  interest  which  should  help assess the 
actual  market  demand  and  establish  licensing  procedures.  There  are  a  number  of 
authorised  indoor  applications  of  cordless  telephones,  based  on  CT-1,  CT-2  and  CT-0, 
which operate in different  bands. 

Finland 

The  directive  was  implemented  by  decisions  of  TAC  of  25  August  1993  and  of  30 
December  1993.  The  whole  1880-1900  MHz  frequency  band  has  been  allocated  to 
DECT, and priority given to this system within the prescribed  band. There are currently a 
number of digital fixed links (point-to-point) operated  in the DECT band, which are to be 
phased  out  by  30  June  1998.  Licences  are  not  required  for  DECT  operations,  but  the 
number of existing operators has not been  specified. 

Sweden 

The directive has been  implemented  through  the published National  frequency  allocation 
table, and  subsequent  licensing  decisions. In the band  1880-1900 MHz priority  is  given 
to DECT  and  it  is not used  for  any  other purpose. DECT  equipment  is  exempted  from 
radio licensing. Use of DECT as public mobile network might not even require a licence, 
depending on the size of the operations; so far, no licences have been requested.. 

United Kingdom 

No  new  law  has been  enacted  in the  UK to  implement  Directive  91/287/EEC  since  the 
existing  legislation  is sufficient  to permit  operation  of  DECT  services. This  technology 
and  the  licensing of  DECT base stations and  DECT terminal  equipment  is exempt  from 
licensing  under 
the  1949  Wireless  Telegraphy  Apparatus  (Cordless  Telephone 
Apparatus) (Exemption) Regulation  1996. The provision  of a DECT  telecommunications 
network  is covered  under the existing  1984 Telecommunications  Act. DECT  equipment 
used  in a cordless  system  must be covered by  a valid  approval  certificate  covering both 
EMC and radio requirements  and connection  to the public telecommunications  network. 
The  1880-1900 MHz band has been available to DECT since the early  1990s and DECT 
is given priority access to this band. 

Selling DECT service to third parties require a Wireless Telegraphy Act licence from the 
Radiocommunications  Agency,  and  a  general  Telecommunications  Act  Class  Licence 
covers  the  networks.  There  are  no  DECT  licences  at  present,  but  the  recent  launch  of 
Public Access Cordless Telephony (PACT) licence may alter this figure in the future. 

48 

There  are analogue  cordless  and digital  systems,  occupying  respectively  8 channels at 
1.7/47 MHz and 8 channels at 31/39 MHz (CT-0) and 40 channels between  854.1-868.1 
MHz (CT-2). Analogue channels at 1.7/47 MHz arc going to be phased out. 

49 

ISSN 0254-1475 

COM(98) 559 final 

DOCUMENTS 

EN 

15  06  16  10 

Catalogue  number  :  CB-CO-98-566-EN-C 

ISBN  92-78-39629-X 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

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