Green Paper on radio spectrum policy in the context of European Community policies such as telecommunications, broadcasting, transport, and R&D
Date: 1998-12-09
Institutions: European Commission
Subjects: EU policy, broadcasting, common transport policy, research and development, telecommunications

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 09.12.1998 
COM(1998) 596 final 

GREEN PAPER ON RADIO SPECTRUM POLICY 

in the context of European Community policies such as telecommunications, 
broadcasting, transport, and R&D 

(presented by the Commission) 

Green Paper on Radio Spectrum Policy 

Executive summary 

GREEN  PAPER  RADIO  S P E C T R UM  POLICY 
in the  context  of  European  Community  policies such  as  telecommunications, 
broadcasting, transport,  and  R&D 

EXECUTIVE  SUMMARY 

T HE  B A C K G R O U N D:  E C O N O M IC  A ND  POLITICAL  IMPORTANCE  OF  RADIO  S P E C T R UM 

Radio  spectrum  is the  backbone for  a wide  range  of  industrial  activities  in sectors  including 
telecommunications,  broadcasting,  transport,  R&D  and  services  of  general  interest.  It  is 
therefore  of  considerable  economic  importance  both  in  terms  of  market  values  and 
employment.  Since  many  of these  areas  are covered  by  Community  policies, the  European 
Community  has  a  substantial  interest  in  the  development  of  a  consistent  radio  spectrum 
policy. 

Although the direct contribution of spectrum to the activities mentioned above may vary,  radio 
spectrum is an essential and increasingly scarce resource.  In economic terms, the value 
of radio spectrum is determined  by the value of the services which can be provided over it. 
However,  the  value  of  radio  spectrum  is  not  a  predominant  factor  commonly  taken  into 
account in spectrum management today. 

The  means  by which  decisions  are  made and  priorities  established  in  respect  of  usage and 
users of radio spectrum is a key issue for the European Community for three main reasons: 

•  The  success  of  a  number  of  important  sector  specific  policies  pursued  by  the 
European  Community  (telecommunications,  broadcasting,  transport,  R&D,  etc.) 
depends on radio spectrum being made available and adequately  safeguarded. 

•  Decisions  on  radio  spectrum  access  must  comply  with  a  certain  number  of 
horizontal  policies  at  Community  level,  notably  with  respect  to  supporting  the 
development  of  the  Internal  Market,  ensuring  competition,  and  developing  and 
preserving social standards and public interest at Community level. 

•  With radio spectrum being increasingly  used for commercial activities,  the rules and 
commitments governing trade at international level of related goods and services 
need to be taken into account. These obligations are of relevance to the international 
commitments of the European Community and its Member States. 

O B J E C T I V ES  A ND  KEY  ISSUES:  INTERESTS  OF  T HE  E U R O P E AN  C O M M U N I TY  IN  T HE 

CONTEXT  OF  RADIO  S P E C T R UM 

From  a  European  Community  perspective,  policy  objectives  associated  with  the 
availability of and access to radio spectrum include 

• 

• 

• 

• 

to  allow  the  development of  new  services to  meet  consumer  and  governmental 
demands for radio services; 

to  foster  the  development  of  the  internal  market  for  and  competition  in 
radiocommunications  equipment  and  services,  in  particular  in  the  context  of  the 
deployment and operation of pan-European and global systems and services; 

to  meef  public  policy  objectives with  regard  to  considerations  such  as  safety, 
cultural and social aspects etc; 

to safeguard the Community's interests in multilateral and bilateral negotiations 
where radio spectrum is discussed; 

1^ 

Green Paper on Radio Spectrum  Policy 

Executive  summary 

• 

to stimulate technological  innovation  and support European  competitiveness 

•  more  broadly  to  develop  economic  growth,  create  employment,  and  promote 

general  welfare. 

Bearing  these  general  objectives  in  mind,  certain  key  issues  need  to  be  considered  in 
relation to the way in which radio spectrum is made available: 

s 

s 

s 

s 

s 

s 

s 

s 

to secure radio spectrum availability for pan-European radio systems, services and 
equipment; 

to  ensure  the  appropriate  balancing  of  commercial  and  public  interest  in  radio 
spectrum policy; 

to reflect  the economic  value of radio  spectrum  as a scarce commodity; 

to provide legal certainty as regards radio spectrum availability and use; 

to  ensure  open,  transparent,  objective,  and  non-discriminatory  procedures 
support of the competitive provision of radio services and equipment; 

in 

to ensure  the efficient  use of radio  frequencies; 

to  ensure 
technological 

innovation; 

that 

radio  spectrum 

regulation  encourages  competition 

and 

to  support  the  development of  economies of  scale  for  the  introduction  of  new 
equipment which matches the needs of users; 

s 

to ensure coherence  between radio  spectrum  and standardisation  policies. 

THE FACTORS FOR CHANGE: 
THE EVOLVING CONTEXT FOR RADIO SPECTRUM POLICY 

Technological  developments,  market  trends  and  the  evolution  of  policy  /  regulation  -  all 
interrelated  -  have a substantial  impact on the  availability  of  radio spectrum  and  make  both 
the  search  for  radio  spectrum  for  new  applications  and the  harmonisation  of  radio  spectrum 
usage  increasingly  complex.  Many of these trends are still developing  but already  trigger  the 
following changes: 

s  The  convergence  of different  services  using  radio spectrum and the development  of 
new systems which aggregate ranges of different services call into question the traditional 
classification of spectrum users and the resulting conditions for spectrum access. 

s  The  globalisation  of services  and  of  market  players  (through  alliances  or  world-wide 

business deployment) has introduced a new dimension to radio spectrum policy. 

s  The  growing  share  of commercial  applications  using spectrum,  partly  as  a  result of 
that  commercial  applications  now  compete  with  non 
liberalisation,  means 
commercial  ones  (including with  those  resulting  from  public  interest  considerations)  for 
radio  spectrum access; applications  from different  sectors  compete  with  each  other 
for radio spectrum access. 

s  Decisions on radio spectrum have a wide-ranging impact on the relative strength of 
market  players,  between  players  which  use  radio  spectrum,  but  also  between  users  of 
radio-based and non-radio based infrastructures. In the latter case the impact of spectrum 
decisions  may  go  beyond  spectrum  access  and  cause  major  structural  changes  in 
markets. 

•s  Decisions  on  radio  spectrum  usage  influence  the  performance  of  societies  not  only  in 
economic  terms,  but also  increasingly with  respect to  industrial  competitiveness  and  the 
capacity for innovation. 

ik 

Green Paper on Radio Spectrum Policy 

Executive summary 

THE CHALLENGE: ACHIEVING A CONSISTENT COMMUNITY RADIO SPECTRUM POLICY 

At Community  level, several of the factors for change suggest that it is time to verify  whether 
the  present  environment  governing  radio  spectrum  issues  is  suitable  to  preserve  the 
European  Community's  interests  and to  reflect  the  need for a Community  approach  to  radio 
spectrum policy. They include: 

s  Coherence  of  radio  spectrum  access  conditions  for  like  services  at  Community 
level: In particular the globalisation of radio systems, i.e. the introduction of pan-European 
or global systems  relying  on  radio  spectrum,  require  an efficient  spectrum  management 
policy  in order to avoid delay  or unnecessary  hurdles  in the introduction and deployment 
of  such  systems  resulting  from  unharmonised  radio  spectrum  allocation  throughout  the 
Community. 

s  Preserving the coherence of the existing Community  regulatory environment:  Some 
of  the  main  sectors  using  radio  spectrum  are  subject  to  Community  regulations,  as  in 
telecommunications  but  also  in  some  aspects  of  broadcasting.  A  fragmentation  of 
planning,  access  and  usage  of  radio  spectrum  makes  it  difficult  to  preserve  a  coherent 
regulatory  framework  at  Community  level.  In  the  case  of  global  systems  using  radio 
spectrum  a coherent  approach  at  Community  level would  strengthen  the  position  of  the 
European Community  in international co-ordination and negotiation exercises. 

s  A  coherent  and  balanced  approach  across  all  sectors:  Radio  spectrum  policy  at 
Community  level  has  to  date  evolved  out  of  separate  sector-specific  consideration  and, 
with  the  exception  of telecommunications,  as an  issue  not necessarily  requiring  specific 
regulation. A coherent and balanced approach across all sectors concerned  needs to  be 
considered  so  as  to  minimise  conflict  between  radio  spectrum  aspirations  of  different 
sector-specific activities, notably where Community  policies apply. 

s  Radio  spectrum  in  the  context  of  the  internal  market:  Existing  radio  spectrum 
management  in  CEPT  has  been  traditionally  pursued  mainly  on  the  basis  of  technical 
considerations.  Given  the  increasing  importance  of  commercial  applications,  market 
considerations  need to  be taken further  into  account.  In the context of a growing  market 
integration,  radio  spectrum  policy,  for  example,  on  access  conditions  inevitably  has  a 
Community  dimension,  especially  where  spectrum  users  are  global  market  players. 
Besides 
issues  such  as  the  competitiveness  of 
Community  industry are at stake. 

internal  market  considerations, 

s  Radio  spectrum  in  the  global  trade  context:  Increasingly,  the  European  Community 
within the context of its responsibility for external trade matters is being approached by its 
main trading  partners on the issue of radio spectrum. In order for it to be able to respond, 
the  Community  position  on  radio  spectrum  must  be clearly  defined, so  as  to  be  able  to 
defend it, both in bilateral contacts and in the global organisations. 

io 

Green Paper on Radio Spectrum Policy 

Executive summary 

ISSUES FOR COMMENTS:  KEY QUESTIONS 

Issues1  on which  the  present  Green  Paper  requests  comments  are  structured  according  to 
the different layers which are identified as key ones in the context of spectrum policy: 

1.  Strategic planning of the use of radio frequencies 

The  European Commission would welcome views on the strategic  planning of the  use of 
radio  spectrum  in  the  European  Community,  particularly  as  regards:  the  scope  of  and 
information  needed  for  planning  exercises;  whether  a  political  and  legal  commitment  to 
plan  radio  spectrum  for  pan-European  services  is  needed;  and  to  what  extent  a 
harmonised  Community  approach  is  needed  to  develop  and  implement  re-farming  and 
substitution policies as part of the planning of frequency. 

2.  Harmonisation of radio spectrum allocation 

The European Commission would welcome views on radio spectrum harmonisation  in the 
European  Community  and  the  wider  context;  whether  a  priori  Community  agreement  is 
required  as  regards  the  need  for  harmonisation  measures  and  on  the  basis  of  what 
criteria this can be determined; and the level of legal certainty  required with respect to the 
implementation of such measures by Member States. 

3.  Radio spectrum assignment and licensing 

The  European  Commission  would  welcome  views  on  radio  spectrum  assignment  and 
licensing,  particularly  as  concerns  which  mechanism  is  most  suitable  to  secure  the 
efficient use of radio spectrum and the harmonised introduction of pan-European services; 
the  extent  to  which  a  common  Community  approach  is  required  on  the  valuation  and 
possible trading of radio spectrum as well as the possible costs of relocating existing radio 
spectrum users; and the level of legal certainty needed in the Community context. 

4.  Radio equipment and standards 

The  European  Commission would welcome views on the link  between Community  policy 
on  radio  equipment,  standards,  and  radio  spectrum,  with  particular  regard  to  the  co 
operation  between  standards  and  radio  spectrum  management  bodies and  measures  at 
the operational level of radio spectrum management. 

5.  The institutional framework for radio spectrum co-ordination 

The  European  Commission  would  welcome  views  on  whether  the  present  institutional 
arrangements  for  radio spectrum co-ordination  are appropriate  to  meet the  Community's 
policy  objectives  on  radio  spectrum,  i.e.  to  contribute  to  economic  growth, employment, 
and welfare, to stimulate technological  innovation  and the development  of  new services, 
to foster  competition  in the internal  market,  and to strengthen  European  competitiveness 
in the establishment of pan-European and global radio systems. 

See detailed questions under these headings in chapter 4 of the Green Paper. 

IV 

id 

Green Paper on Radio Spectrum Policy 

Executive summary 

THE GENERAL CONTEXT OF THE GREEN PAPER:  RELATED DEBATES 

The  objective  pursued  with  the  proposed  Green  Paper  is  to  identify  how  best  to 
approach  and  implement  Spectrum  Policy  at  Community  level. At  the  same  time,  the 
results from the Green  Paper will also feed  into several  specific debates which  are  currently 
under way. 

The  Green  Paper  on  Convergence  between  telecommunications,  media  and  information 
technologies  already  covered  certain  radio  spectrum  issues  in  respect  of  specific  sectors. 
These  findings  will  need to  be  put  in  context  with  respect  to  the  overall  approach  for  radio 
spectrum  policy  to  be discussed  in the  present  Green  Paper.  In return, the  spectrum  policy 
debate will profit from the convergence debate, e.g. when discussing the evolving category of 
uses and users or the definition of  public interest in the areas subject to convergence. These 
results  will  be  important  in order  to  be able  to  recommend  suitable  modalities  of  accessing 
radio spectrum. 

the 

telecommunications  sector, 

For 
the 
the 
telecommunications  regulatory  framework  ("99  Review")  which  is under  preparation  will use 
the  findings  of  the  radio  spectrum  debate  to  identify  where  existing  regulation  needs  to  be 
complemented or revised to help the implementation of a Community radio spectrum policy. 

the  effectiveness  of 

review  of 

In the  transport  sector,  the  Community  is  currently  considering  re-enforcing  the  European 
presence  in  the  area  of  global  navigation  satellite  systems  (GNSS)  which  both  enable  the 
provision  of  services  of  public  interest  (navigation,  positioning,  timing)  and  which  have 
considerable  market  potential. Potentially,  these  systems  will  also form the  basis  for  a wide 
range of industrial / commercial activities. The allocation and protection of radio spectrum will 
need to be ensured in European and international negotiations  in order to implement such an 
initiative. In the medium term, the Green Paper on Radio Spectrum Policy will help to  identify 
how  to  accommodate  in  a  practical  way  the  specific  needs  of  this  sector  in  terms  of  co 
ordination  modalities  and  protection  of  radio  spectrum  within  the  overall  framework  of  a 
generic approach to radio spectrum policy, i.e. covering all sectors. 

The  reflection  of the issues raised by the present Green  Paper will also help preparing  in an 
optimal  way  for  international  negotiations  on  radio  frequencies  at  the  forthcoming  World 
Radiocommunications  Conference  WRC-2000  The  Commission  has 
in  an  earlier 
Communication  presented  the  major  agenda  items  of this conference  and  indicated  in detail 
how these relate to Community  policies. The findings of the consultation on the present Green 
Paper will be used to help define Community positions on the critical issues of the conference. 

re 

Green Paper on Radio Spectrum Policy 

Table of Content 

TABLE OF CONTENT 

EXECUTIVE  SUMMARY 

pages l-V 

1. 

INTRODUCTION 

THE  ECONOMIC  AND  POLITICAL  IMPORTANCE  OF  RADIO  SPECTRUM 

4 

2.1 

2.2 

2.3 

The radio communications market 

Community  policies involving radio spectrum 

Factors for change 

EU  POLICY  ON  RADIO  SPECTRUM: PRESENT  SITUATION 

3.1 

3.2 

Defining EL) policy on radio spectrum 

Present practice of Community involvement in radio spectrum policy 

EU  POLICY  ON  RADIO  SPECTRUM: ISSUES  FOR  COMMENTS 

(1) 

(2) 

(3) 

(4) 

(5) 

Strategic planning of the use of radio spectrum 

Harmonisation of radio spectrum allocation 

Radio spectrum assignment and licensing 

Radio equipment and standards 

The institutional framework for radio spectrum co-ordination 

CONCLUSIONS 

4 

8 

10 

12 

12 

13 

16 

16 

17 

18 

20 

21 

23 

ANNEX I 

European Community policies involving radio spectrum 

ANNEX II 

EU policy on radio spectrum 

ANNEX III 

List of Abbreviations 

pages l-VI 

pages l-IX 

pages l-ll 

V 

Chapter! 

Introduction 

1. 

INTRODUCTION 

The  essential  backbone  for  activities  in  European  Community  policy  areas  such  as 
mobile  and  satellite  communications,  broadcasting,  transport,  R&D  is  the  radio 
spectrum.  These  areas  have  developed  over  recent  years  into  a key  area  of  growth  in  the 
European Community.  In view of the requirement of the  Information Society for  instantaneous 
access to and dissemination of information, irrespective of time or location,  radio spectrum is 
becoming of increased importance for the development of the European economy. 

Demand  for  radio  spectrum  is  increasing  steadily  due  to  technological,  market,  and 
regulatory developments. This is not counter-balanced  by additional radio spectrum becoming 
available  through  the  introduction  of  new  and  more  efficient  technologies  (e.g. digital  radio 
the  areas  of  broadcasting  and  mobile/personal  communications).  The 
systems 
consequence is that the scarcity of radio spectrum is increasing. Where the radio spectrum is 
congested,  choices  need  to  be  made  to  balance  the  demand  and  supply  for  radio 
spectrum. 

in 

The  use  of  the  radio  spectrum  is  regulated.  Since  radio  waves  do  not  stop  at  borders, 
countries  historically  co-ordinate  the  use  of  the  radio  spectrum  in  the  framework  of  the 
International Telecommunication  Union (ITU), a specialised  body of the United Nations. In 
World  Radiocommunications  Conferences  (WRC)  of  ITU,  186 countries  biannually  adopt 
measures in order to achieve the international harmonisation of the use of the radio spectrum. 
This  is  necessary  in  order  to  achieve  economies  of  scale  for  the  production  of  radio 
equipment,  to  facilitate  the  global  availability  of  services,  and  to  avoid  that  that  the 
transmissions  by one user do not cause unacceptable interference to use by another.  Further 
detailed co-ordination takes place at the regional and national level. 

in 

the 

framework  of 

In  Europe,  43  countries,  including  the  Member  States,  co-ordinate  the  use  of  the  radio 
spectrum 
the  European  Conference  of  Postal  and 
Telecommunications  administrations  (CEPT). Also CEPT adopts harmonisation  measures 
which its member countries implement on a voluntary  basis. Both ITU/WRC and CEPT cover 
all uses of the radio spectrum, including for telecommunications, broadcasting, transport, and 
R&D. 

With the exception of radio spectrum availability  for  mobile and personal communications,  in 
which areas  Community  legislation  exists,  the  European  Community  mainly  relies  on the 
work undertaken in ITU/WRC and CEPT to achieve the harmonisation of radio spectrum 
necessary  for the  pan-European  and  global  provision  of services  and equipment.  The 
assignment  of  radio  spectrum  to  individual  users  is  done  at  the  national  level,  subject  to 
certain  conditions  agreed  in  the  World  Trade  Organisation  (WTO)  and  in  the  European 
Community. 

As demand for radio spectrum has increased, the co-ordination and management tasks 
have  grown  more  complex  as  compared  to  the  past.  Previously,  countries  co-ordinated 
the use of the radio spectrum on behalf of a relatively limited number of radio users and on the 
basis of technical considerations, i.e. for the defence sector and for public telecommunications 
and broadcasting organisations, which were mainly active at the national level. 

The  environment  for  radio  spectrum  policy  has  changed  significantly.  Radio  services 
and equipment are developed for global rather than national markets. The traditional  users 
of radio spectrum  providing  public  services  at the  national  level are  now  in  competition  for 
radio spectrum  use with  increasing  numbers  of  global commercial  players,  particularly  in 
the areas of telecommunications and broadcasting. Radio spectrum availability  is emerging as 
a key issue in trade negotiations.. All these developments point to the need for  international 
co-operation  on  radio  spectrum  policy  issues  in  order  to  facilitate  the  international 
introduction  and provision  of services  and equipment.  It is therefore essential to  ensure 

> 

Chapter I 

Introduction 

that  the  interests  of the  European  Community  and all off  Member  States  are fully  taken  into 
account where radio spectrum availability is discussed. 

As a result of the changing environment  for  radio spectrum  policy, the  main challenges  the 
European Community is facing include the following: 

>  The  strategic planning of  the  use  of  the  radio  spectrum  now  needs  to  take  into 
account  the  varying  interests  and  requirements  of  an  increased  number  of  new 
systems and commercial and non-commercial players acting at the global level. 

>  Due  to  globalisation,  the  allocation  and  harmonisation of  the  use  of  the  radio 
spectrum  increasingly  requires  international  co-operation  but  countries  and  radio 
spectrum  users  attach  different  priorities  as  for  which  services  harmonised 
radio  spectrum should  be internationally  available.  The  balancing  of  the  various 
interests  between  commercial  and  non-commercial  uses  as  well  as  between  the 
priorities  of  individual  countries  goes  beyond  the  technical  management  of  radio 
spectrum.  Recent  experience  at  ITU/WRC  negotiations  has  shown  that  where  the 
European  Community  is  not  united  and  where  the  proposals  are  not  politically 
supported, common objectives are difficult to be pursued. 

>  The  assignment  of  radio  spectrum  to  individual  users  should  be  done  under 
reasonable  conditions.  However,  demand  for  radio  spectrum  has  increased  to  such 
an  extent that  administrations  increasingly  require  users to  pay  a  price  for  the 
use of the radio spectrum so as to reflect the market value and the actual need for 
the  service  to  be  provided.  This  approach  is  criticised  since  it  may  hamper 
technological  innovation  and  competition  and  may  possibly  lead  to  increased 
consumer prices. The introduction and international provision of services might be 
hindered  since  licenses  need  to  be  obtained  in  individual  countries  which  in 
addition may deploy different radio spectrum award mechanisms and conditions. 

>  The availability and use of radio equipment across borders is subject to the extent to 
which  radio  spectrum  is  harmonised  and  common  standards  are  available  so  as  to 
ensure interoperability. The importance of monitoring the use of radio equipment 
and the surveillance of markets is increasing and will require a considerable effort 
from  the  part  of  administrations  in  co-operation  with  industry  and  radio  spectrum 
users. 

>  The institutional  arrangements  for the co-ordination, planning, and harmonisation of 
the  use  of  radio  spectrum  were  set  up  to  deal  with  the  requirements  of  a  limited 
number of players. With the liberalisation and globalisation of the radio market, these 
institutional  arrangements  have  come  under  pressure  from  commercial 
interests  which  pursue  interests  which  not  necessarily  coincide  with  those  of  the 
administrations  representing  them  in the  organisations  concerned.  Furthermore,  the 
balancing  of  the  various  national  interests  renders  the  achievement  of  radio 
spectrum  harmonisation  difficult  and  may  result  in  a  legally  uncertain  situation 
regarding radio spectrum availability and harmonisation. 

This  Green  Paper  is  aimed  to  initiate  a  public  debate  on  the  question  whether  the  present 
practice of radio spectrum policy can deal with the described challenges or whether  change is 
needed in order to meet the European Community's policy objectives: 

> 

to  facilitate  technological innovation  and  competition through  flexible  but  firm 
planning of the use of radio spectrum and through the appropriate assignment of radio 
spectrum by administrations; 

Chapter! 

Introduction 

> 

> 

> 

to  establish  a  predictable and  legally certain regulatory framework for  the  co 
ordination  of the  use of  radio  spectrum which  is transparent  and which  responds  to 
the  needs of commercial and  non-commercial  interests  across  sectors,  inter alia as 
concerns telecommunications, broadcasting, transport, and R&D; 

to  ensure  an  appropriate  representation  and  balancing  of  interests  of  the 
individual  Member  States  and  of  the  European  Community  in  the  decisions  to  be 
taken in the area of radio spectrum; and 

to strengthen the position of the European Community in the global market for 
radio  services  and  equipment  by  combining  the  necessary  technical  and  political 
strengths of the Member States and the European Community. 

All  concerned  parties  -  radio  spectrum  users,  services  providers  using  radio  spectrum, 
equipment  manufacturers,  public  authorities, sector-specific  organisations,  consumers  -  are 
invited to contribute their  comments and views. On the basis  of the comments  received, the 
Commission intends to produce a Communication to report and to draw first conclusions. 

All interested parties are invited to contribute to the debate by responding to the issues raised 
in this Green Paper and by making any submission they wish on the subject 15 April 1999. 

Submissions may be sent preferably via E-mail in HTML format to2: 

European Commission, DGXIII/A 
Attn. Mr. R. Niepold 
200 rue de la Loi, BU31 2/52 
B-1049 BRUSSELS 
Belgium 
e-mail:  spectrum.greenpaper@bxl.dg13.cec.be 
Fax: (+32 2) 29 68 395 

Unless  explicitly  specified  by  their  authors,  all  submissions  will  be  considered  public  documents  and  will  be 
made  available  through  Spectrum  Green  Paper  Web-page  (http:// 
).  While  electronic  submission  in  HTML 
format  are  strongly  encouraged,  fax  or  ordinary  mail  contributions  can  alternatively  be  accepted  (4  copies 
please). 

Chapter 2 

The economic and political importance of radio spectrum 

2. 

THE  ECONOMIC  AND  POLITICAL  IMPORTANCE  OF  RADIO  SPECTRUM 

The  aim  of  chapter  2  is  to  highlight  the  economic  and  political  importance  of  radio 
spectrum and to provide the basic elements governing the European Community approach to 
radio spectrum policy. 

This chapter  gives an overview  of the growing number of applications  and sectors  relying on 
the  availability  of  radio  spectrum and  highlights the economic  importance  of  radio  spectrum 
activities  (section 2.1). Technological, market, and regulatory  developments  are changing  the 
ways radio spectrum is used as well as the context for radio spectrum policy  making  (section 
2.2). The implementation of a number of sector-specific Community  policies depends on radio 
spectrum  availability  but their  radio  spectrum  requirements  are addressed  in different  policy 
frameworks; in addition, horizontal European Community legislation applies (section 2.3). 

2.1 

The  radiocommunications  market 

Radio  spectrum3  is  the  wireless  infrastructure  for  a  large  number  of  activities.  Each 
radio  application,  for  example  garage  door  openers,  baby  monitors,  cellular  telephones, 
global  positioning  systems,  has  its  own  frequency  band  within  the  radio  spectrum 
although  much  of  it  is  used  on  a  shared  basis.  The  location  and  amount  of  radio 
spectrum  allocated  for  each  service  may  differ  significantly  between  countries, 
depending on the national need for and importance given to the various radio-based services. 
Only  a relatively  small amount of the actual use of the radio spectrum  is  harmonised  among 
countries.  The  international  availability  of  the  same  service  depends  on  the  extent  to 
which the use of the radio spectrum is harmonised. 

Certain  frequency  bands  are  better  suited  for  particular  radiocommunications  services  than 
others and are  relatively  easy to exploit  using existing technologies. Actual  use and  demand 
for certain frequency  bands has created or will soon create a situation of congestion:  demand 
for frequencies  is greater than what is available. Therefore, choices need to be made. 

Other frequency  bands are currently  less valuable because they are useful for fewer services, 
or because they  can only  be exploited at increased cost or following technological innovation. 
The issue of congestion might not present itself in these frequency bands. 

Like for all scarce  resources, trade-offs  have to be made when deciding which  uses and 
users  should  be  awarded  radio  spectrum.  In  radio  spectrum  policy,  such  trade-offs  may 
include the following: 

s  New  entrants  are  awarded  frequencies  on  the  condition  that  they  share  the 
frequencies  with  existing  users.  However,  sharing  may  require  the  deployment  of 
more  costly  techniques  for  both  parties  as  compared  to  the  case  where  radio 
spectrum is made available to users on a primary/exclusive basis. 

A radio wave  is  an electromagnetic  wave propagating  between a transmitting  and a receiving  antenna.  Radio 
waves  are  characterised  by their frequency,  and by  tuning  a radio  receiver  to  a  specific  frequency  one  can 
pick  up  a  specific  signal.  Regulatory  authcrities  decide  who  is  able  to  use  what  frequency  band  for  what 
purpose,  and  issue  licenses  for  specific  services. Frequency  bands define  the  specific  location  of  services  in 
the radio spectrum. 

Chapter 2 

The economic and political importance of radio spectrum 

s  The  incumbent  radio  spectrum  user  is  moved  to  less  congested  parts  of  the  radio 
spectrum  in  order  to  make  room  for  new  users.  This  is  known  as  're-farming'  of 
radio  spectrum  and 
incumbent  user. 
Obviously,  the  incumbent  user  is  forced  in  this  situation  to  replace  or  adapt  existing 
equipment  in order  to comply  with  the  different  characteristics  of  the  frequency  bands 
he  is  moved  to.  In  some  countries,  the  new  entrant  may  be  requested  to  pay  a 
financial contribution  in this  respect. 

is  associated  with  a  relocation  of  the 

s  The  incumbent  radio  spectrum  user  has  to  move  out of the  radio spectrum  altogether. 
In  the  latter  case,  an  option  could  be  to  use  alternative  transmission  media  (i.e. 
'substitution'  of  transmission  technology).  Also  in this  case, the  incumbent  user  has 
to  invest  in alternative transmission  equipment. 

S  Where  sharing  with,  or  re-farming/relocation  and  substitution  of  incumbent  users  is 
technically  not  possible  or  politically  not  desirable,  access  to  frequencies  by  new 
entrants  may  not  be granted. 

Although  not  exhaustive  in  its  scope  of  the  use  of  radio  frequencies,  the  following  table 
provides  an  overview  of  the  various  types  of  radio  applications  which,  for  the  main  part,  are 
subject  to  some  kind  of  authorisation  to  use  radio  equipment  or  to  provide  radio-based 
services. 

Table  1 : Radio-based  sectors  and  activities4 

I 

I  >  Telephony  (GSM, DCS, DECT, S-PCS, IMT2000/UMTS, WLL, CB) 

>  Paging (ERMES, Pocsag, FLEX) 

Telecommunications 

^  Wireless  multi-media/Internet  (UMTS,  satellite  broadband,  LMDS, 

MMDS) 

>  Data transmission (GSM, IMT2000 / UMTS, satellite broadband, FS) 

>  Private business radio (PMR, TETRA) 

>  Terrestrial TV (analogue/digital -  free to air, pay TV) 

>  Satellite TV (analogue/digital -  free to air, pay TV, NVOD) 

Broadcasting 

^  Ancillary  services  (Teletext  and  home  banking,  Teleshopping,  for 

.digital TV) 

>  Radio  (analogue/digital) 

>  Airtransport (traffic control, navigation) 

Transport 

>  Maritime transport (GMDSS, VTMIS) 

>  Road transport (RTT systems) 

>  Rail transport and inland waterways (localisation) 

~>  Defence (communication & control, radar) 

>  Emergency  (police, fire departments) 

Government 

^  Law enforcement (TETRA; earth observation) 

>  Space  science  (e.g.  Earth  observation,  radio  astronomy,  radio 

navigation) 

>  Applications  deriving from Commitments  under international 

conventions  (navigation aids, positioning and timing; environment) 

I 
J 

See Annex I for a detailed description of European Community policies in these areas. 

Chapter 2 

The economic and political importance of radio spectrum 

R&D 

>  Earth observation 
>  Radio astronomy 

There is no comprehensive  information available for the European Community  as a whole on 
which radio services are located in the various parts of the radio spectrum and which amounts 
of frequencies these services have at their disposal. Insofar as it is available, such information 
can only be found at the national level, as can be illustrated by the following example. 

Table 2: Allocation of radio spectrum by services (United Kingdom)5 

Telecommunications 

>  Mobile and cellular communications 

>  Fixed  services 

(PTO  and  private 

fixed 

services) 

>  Fixed links 

>  Satellite 

Broadcasting 

9 kHz to 1 
GHz 

1 GHz to 3 
GHz 

3 GHz to 30 
GHz 

23% 

— 

„ 

.. 

7% 

26% 

„ 

„_ 

-

~ 

38% 

5% 

(incl. services ancillary to broadcasting) 

40% 

12% 

3% 

Transport 

>  Civil Aviation/aeronautical 

>  Maritime 

Government 

>  Defense 

>  Emergency services 

>  Space observation 

Other 

3% 

~ 

29% 

2% 

~ 

3% 

14% 

2% 

31% 

3% 

2% 

3% 

100% 

100% 

4% 

-

38% 

~ 

~ 

12% 

100% 

The  economic  contribution  of  radio-based  services  and  equipment  to  the  EU  economy  is 
difficult to determine in a comprehensive manner. For example, the provision of mobile and 
audio-visual  services  entirely  depend  on  radio  spectrum  availability.  The  economic 
output  of  these  sectors  may. therefore  be  used  as  indicators  for  the  economic  relevance  of 
radio  spectrum  in  European  and  global  markets,  while  taking  account  of  the  non-economic 
benefits to society resulting from the strategic, public, and cultural use that is made of radio 

5 

Source: Approaches to the  allocation and assignment of the  radio spectrum  resource,  Report for the  European 
Commission, NERA, Smith System Engineering, KPMG, November 1997. 

Chapter 2 

The economic and political importance of radio spectrum 

spectrum  for  non-commercial  purposes  such  as  defence,  emergency  services,  and  for 
universal  services  in the areas of telecommunications  and  broadcasting. 

Table  3:  Estimated  market  and  market  forecasts  (BECU):  telecommunications,  mobile 
and satellite  communications,  broadcasting  (and audio-visual), and  radio  navigation 

I  Estimated market  Market forecast 

150.7 

162.2(1998) 

Telecommunications 
(EEA, 1997)6, of which 

~>  Fixed service 

. 
__  _ _ _ _ __ 

_ 

_ _ _ _ _ _ __ 

Satellite communications 
(world, 2005)7 
>  Mobile Satellite Service (MSS) (world)8 

Audio-visual services 
(EU, 1995)9, of which 

/ 

; 

[ 

>  Content provider revenues (EU, 1995)10 
>  Annual pay TV revenues (Europe, 1997)11 
>  Public  broadcasting  revenues  (revenues 

98Tl 

__ 

__ 

41.5 

8.9 
5 

from  TV  14 

licence fees, advertising and sponsoring) (EU, 1996)12 

>  Radio sector (license fees and advertising revenue) 
Radionavigation services and equipment13 

(5 

(172.3 (1999) 

101.0(1998) 
103.9(1999) 

29.7 (1998) 

~~ 

33.6(1999) 
31.4(1998) 
34.8 (1999) 

62 

. 

1 (2000) 
7.2 (2005) 
24.1 (2010) 
46.8(2000) 
59.0 (2005) 
71.4(2010) 
16.1 (2005) 
22 (2005) 

4  (2000, Europe) 

40 (2005, world) 

European  Information  Technology  Observatory  98,  Yearbook  for  the  Information  and  Communications 
Technology (ICT) industry in Europe, 1998,  page 350. 

Via  Satellite,  September  1998. Global  Satellite  Telecommunications  Review. Joe  N.  Pelton  and the  Global 
Satellite Communications Review Panel, page,  19. 

Global Mobile, Volume 5, Baskerville Communications Corporation, 9 July 1998, page 12. 
Market developments of telecommunications and integrated communications services to the year 2010, IDATE, 
December 1997, pages 14 and  175. 
Norcontel,  Economic  Implications  of  New  Communication  Technologies  on the  Audio-Visual  Markets. April 
1997, page 6. 
N. Bertolotti for JP Morgan Securities Ltd, The European Pay-TV Industry, January 1998. See Commission Staff 
Working Paper on WRC-99, page 7. 
Source: EUROSTAT 

Communication by the Commission :* Towards a Trans-European Positioning and Navigation Network, including 
a European Strategy for Global Navigation Satellite Systems (GNSS) COM(98)29,final, 21.1.1998, page 15. 

10 

u 

12 

13 

Chapter  2 

The economic  and political  importance  of radio  spectrum 

2.2 

Community  policies  related to  radio  spectrum 

A  number  of  sector-specific  Community  policies  rely  on  the  availability  of  radio 
spectrum, particularly  in the areas of telecommunications, broadcasting, transport and 
R&D  (see  Annex  I  for  an  outline  of  the  main  policies).  However,  the  political  context  in 
which  radio  spectrum  availability  for  such  policies  are  addressed  differs  significantly 
from sector to sector. 

s 

s 

In the telecommunications sector, especially where pan-European or global systems are 
concerned  (e.g. mobile  and  mobile-satellite  services),  political and  legislative  agreement 
is  established  in, the  European  Community  as  concerns  the  harmonised  availability  of 
radio spectrum.14 Furthermore, the provision of services is governed by Community  rules 
on licensing which aim to promote technological  innovation and competition. The  number 
of telecommunications  applicants seeking radio spectrum has increased  significantly  due 
to  technological  innovation  and  the  global  liberalisation  of  telecommunications  markets. 
This trend is reflected in the growing importance of international negotiations on frequency 
harmonisation.15 

In contrast, radio spectrum availability for broadcasting has so far not been addressed in 
the  European  Community  as  an  issue  requiring  political  or  legislative  action,  partly 
because  sufficient  radio  spectrum  was  made  available  by  Member  States  before 
broadcasting  began  to  take  on  an  increasingly  commercial  orientation.  However,  the 
interrelation  between  radio  spectrum  availability  and  the  Community  policy  on  the  free 
movement  of  radio  and  TV  programmes  has  been  manifest  since  the  arrival  of 
transfrontier  satellite TV, which prompted the Television without  Frontiers  Directive. Apart 
from  the  general  growth  of  broadcasting  and  audio-visual  markets,  the  boundaries 
between  telecommunications  and  broadcasting  are  converging  and  challenge  the 
historical  availability  of  radio  spectrum for  these  activities.16  Competition  for  scarce  and 
valuable  radio  spectrum  between  broadcasters  and  other  potential  users  is  likely  to 
intensify. 

14  Communication  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 
communications frequency  Directives, COM(1998)559, 09.10.1998. 

15  Communication  from  the  Commission  to  the  European  Parliament  and  the  Council  on  radio  frequency 
requirements for Community policies in the context of the World Radiocommunications  Conference  1999 (WRC-
99),  COM(1998)298,  13.05.1998.  Commission  Staff  Working  Paper  on 
the  World 
Radiocommunications  Conference  1999  (WRC-99)  in  the  context  of  Community  policies,  SEC(1998)839, 
12.05.1998.  It should be  noted that, after  the  publication  of these  documents,  it was  decided  to  hold the  next 
WRC in the year 2000; this has, however, no effect upon the substance of the documents. 

issues  at 

16  Green  Paper  on  the  convergence  of the  telecommunications,  media  and  information  technology  sectors,  and 
the  implications  for  regulation  -  towards  an  Information  Society  approach,  COM(97)623,  03.12.1997.  See  in 
particular:  Summary  of the  results  of  the  public  consultation  on  the  Green  Paper  on  the  convergence  of  the 
telecommunications,  media  and  information  technology  sectors:  areas  for  further  reflection,  SEC(98)1284, 
29.07.1998.  The  comments  showed  widespread  concerns  about  the  possible  auctioning  of  radio  spectrum, 
accompanied  by  assertions  that  this  would  raise  market  entry  barriers  and  lead  to  increased  prices  for 
consumers.  Others  pointed  out  the  risk  of discrimination  either  by favouring  incumbents  or  by  treating  sectors 
differently. The issue of whether dates should be set or co-ordinated at a European level for the switching-off  of 
analogue  broadcast  services  attracted  considerable  comment  from  broadcasters,  equipment  manufacturers, 
consumer  groups  and Member  States. Opinion was split between those who saw any  transition  from  analogue 
to  digital  broadcasting  as  market-led,  and  not  requiring  government  or  EU  level  intervention,  and  those  who 
considered  that  a  deadline  set  at  a' national  level  would  be  a  useful  stimulus  to  the  development  of  digital 
broadcasting in the EU. Further details will be dealt with in chapter 4 of this Green Paper. 

Chapter 2 

The economic and political importance of radio spectrum 

s  The  European  Community  has  so  far  not  adopted  specific  measures  to  secure  radio 
spectrum availability for the implementation of its  transport  policies (i.e. air and maritime 
transport,  radio  navigation  and  positioning).  These  policies  benefit  from  radio  spectrum 
being  available  on  an  almost  exclusive  and  international  basis  to  ensure  safety-of-life 
communications  of  air  and  maritime  transport.  However,  this  situation  has  come  under 
pressure as a result of the increased demand for radio spectrum. For instance, providers 
of commercial mobile satellite services  have  proposed to share radio spectrum  reserved 
for  navigation  and  positioning  applications.  It  was  decided,  however,  that  the  need  to 
ensure the interference-free operation of such applications  should prevail. The possibility 
of developing a European component to the global navigation satellite system means that 
full account need to be taken of the  need to secure and protect  radio spectrum, and this 
has been endorsed by the Council. 

s 

In  the  area  of  R&D  (e.g.  Earth  observation  and  radio-astronomy),  radio  spectrum 
availability  has  not  been  addressed  as  a  matter  requiring  legislative  or  political  action. 
However,  radio spectrum which  historically  has  been available for such applications  has 
come  under  pressure,  either  because  new  entrants  wish  to  use  the  radio  spectrum 
available for  R&D or because  interference  from other services  has increased to such an 
extent that the performance of R&D activities becomes technically difficult. 

Considering  that demand  for  certain  frequency  bands  exceeds  supply,  the  implementation 
of the  EU policies  mentioned  above  is faced  with  the situation  where  radio  spectrum 
availability  can  no  longer  be  taken  for  granted.  Therefore,  radio  spectrum  availability 
needs to be addressed as a key issue in the EU decision-making  process. Furthermore, 
where trade-offs  need to be made as  regards which services should  receive priority  in 
accessing and using radio spectrum, the various interests involved need to be carefully 
balanced in a coherent manner. 

Irrespective of the specific use of radio spectrum, horizontal EU policies and legislation 
are relevant (e.g. competition, internal market, standardisation/certification of radio equipment, 
consumer protection). 

s  The aim of the Community's  competition  rules  is to ensure that choices with  regard to 
the  attribution  of  radio  spectrum  do  not  privilege  technical  solutions  at  the  expense  of 
competing  technologies,  which  could  better  match  user  needs,  and  do  not  limit 
production,  output  or  technical  development  in  the  sense  of  Article  86  of  the  Treaty. 
Competition  rules  have  to  be  considered  also  in  relation  to  the  use  of  radio  spectrum, 
notably  when  public  interests  are  involved  in  the  context  of  Article  90.  In  the  areas  of 
broadcasting and transport, for instance, it is becoming  increasingly  difficult to define the 
boundary between public and commercial services. 

s  As  regards  internal market considerations,  radio spectrum availability  affects  the scope 
for  the  pan-European  provision  and  free  movement  of  services  and  equipment.  The 
harmonisation  of  the  use  of  radio  spectrum  is  particularly  important  in  this  context  to 
facilitate  the  introduction  of  pan-European  and  global  systems  and  to  realise  the 
economies  of scale  necessary  to  make  European  industry  competitive  in world  markets. 
With regard to the latter point, standardisation and type approval policies need to be taken 
into account. 

s  The  Community's  consumer  policy  should  be  seen  as  a  flanking  policy  to  the 
establishment of the internal market and stresses  the benefit to all consumers of greater 
choice  and diversity,  including  as  regards  the availability  of  radio  services  and  products 
which  meet  consumer  demand  and  needs.  Consumer * health  protection  against 
electromagnetic  radiation  is  also  becoming  an  important  issue  which  is  undergoing 
extensive  research  and  requires  a  transparent  and  harmonised  approach  in  order  to 
secure safe use of radio services  and to avoid conflicting  national policies in this regard. 

Chapter 2 

The economic and political importance of radio spectrum 

Action  has  been  initiated  in the  European  Community  in the  context  of  health  and  R&D 
policies to examine the possible health effects related to the use of the radio spectrum so 
as to ensure consumer confidence in radio services and products. 

Radio spectrum has been addressed as an important issue in international negotiations 
on the liberalisation of trade in telecommunications. 

s 

In accordance with the agreements established in the World Trade Organisation (WTO), 
member  countries  have  to  manage  radio  spectrum  in  a  manner  which  is  objective, 
transparent,  non-discriminatory  and  no  more  burdensome  than  necessary.  Furthermore, 
they  are  committed  to  make  publicly  available  the  current  state  of  allocated  frequency 
bands.  It follows that any  regional or  national radio spectrum management  measure 
which  has  the  purpose  or  effect  of  blocking,  or  unreasonably  limiting,  market 
access for operators from other WTO member countries in a discriminatory  manner 
would violate the agreement established in WTO since discriminatory,  anti-competitive 
or  arbitrary  frequency  management  decisions  are  outlawed.  These 
international 
commitments  need  to  be  taken  into  account  where  third-country  operators  seek 
access  to  the  European  Community  market  and  where  Europe's  industry  seeks 
access to the global market. 

In  conclusion,  the  establishment  of  agreement  on  the  EU  policies  to  be  pursued  on 
telecommunications,  broadcasting,  transport,  and  R&D  needs  to  carefully  balance 
economic,  political, social, and  cultural  interests.  It  is  therefore  important  to  ensure 
that  the  trade-offs  to  be  made  at  a  technical  level  take  full  account  of  this.  This  is 
particularly  important considering that radio spectrum availability  cannot  be taken for granted 
due to the increase of applications vying for the use of the radio spectrum. 

2.3 

Factors  for  change 

Radio  spectrum  policy  has  become  more  complex  due 
technological 
developments, the introduction of new services (e.g. broadband  multimedia), the evolution of 
markets,  and  policy  and  regulatory  changes.  These  trends  are  often  interrelated  and  their 
relative weight is taken into account to varying degrees when trade-offs are made in deciding 
to which uses and users radio spectrum should be put. 

to  rapid 

The  major  factors  which  have  transformed  perceptions  of  radio  spectrum  policy  are 
described below. 

Technological  developments 

s  Services  using  spectrum  are 

in  many  cases  converging 

(fixed-mobile 
telecommunications,  broadcasting  with  telecommunications  and  IT-sector).  This  has 
several  consequences:  (a)  traditional  radio  systems  offer  new  types  of  services  (e.g. 
broadcasters  offering  Internet-services,  telecommunications  operators  offering  video 
services,  military  using  civil  radiocommunications  applications);  (b)  the  traditional 
definitions on the basis of which radio spectrum is distributed are called into question as is 
the  current  distribution  of  radio  spectrum  among  service  categories  and  users  (e.g. the 
mobile  telephony  service  traditionally  regulated  as  a  telecommunications  service  is 
evolving towards a mobile multi-media service with a greater focus on content). 

*  Technological  developments  lead  to  the  development  of  new  services  which  require 
certainty  as  regards  the  future  availability  of  radio  spectrum  in  order  for  investment 
decisions  to  be  made.  Furthermore,  substitution  phenomena  are  encountered  (e.g. 
cable/satellite  broadcasting offers a wider choice of service than terrestrial  broadcasting) 

10 

Chapter 2 

The economic and political importance of radio spectrum 

which  could  result  in  a  different  use  of  radio  spectrum  by  new  or  more  spectrally 
efficient systems and services. 

s  New  systems  are  proposed  which  aggregate  a  range  of  services.  For  example, 
mobile and satellite  broadband communications  systems, as planned to  be introduced  in 
the  near  future,  combine  traditional  services  such  as  telephony,  data  transmission, 
internet distribution, and positioning. 

Market developments 

s  The  increasing  demand  for  radio  spectrum  is  not  counter-balanced  by  additional 
radio  spectrum  becoming  available  as  new  technology  can  stretch-up  the  availability  of 
usable  radio  spectrum.  In  order  to  distribute  the  limited  radio  spectrum  available  for 
certain  applications  in  a  transparent  manner  on  the  basis  of  objective  criteria,  some 
regulatory authorities deploy  pricing mechanisms with the aim to reflect the market value 
of  radio  spectrum.  The  valuation  of  radio  spectrum  therefore  becomes  relevant  in 
decisions  on  radio  spectrum,  although  experience  with  such  approaches  is  still  rather 
limited. 

s  The trend is towards global systems which  require the formation  of global alliances of 
players  to  cope with  the significant  investment  and operational  demands  (e.g. obtaining 
access to frequencies and national licences, provision of services). Radio spectrum policy 
will  need  to  take  account  of  this  trend  and .regulatory  action  should  support  the 
harmonised  introduction  of  such  systems  and  ensure  appropriate  involvement  in  their 
development and deployment. 

Policy and regulatory developments 

v  The  share  of  commercial  applications  using  radio  spectrum  is  growing  following  in 
particular  the  liberalisation  of  telecommunications  markets.  This  puts  pressure  on  the 
availability  of  radio  spectrum  for  other  applications  of  importance  to  the  public 
interest  (emergency  services, transport).  Setting  priorities  as to who  should  be allowed 
access to spectrum can no longer be taken solely on the basis of technical information but 
requires careful balancing of interests taking economic and political factors into account. 

s  Decisions on radio spectrum availability and use may impact on the relative strength 
of market players and on the level of competition in markets. This is not only the case 
with respect to radio services (similar services or services of a different nature) competing 
for access to radio spectrum. Decisions on spectrum access may also significantly  impact 
on  the  relative  market  strength  of  players  offering  comparable  services  albeit  through 
competing radio and non-radio infrastructures (e.g. fibre vs. satellite communication; wired 
local loop vs. wireless local loop). 

s  Radio spectrum is relevant to trade since market access for radio activities cannot be 
realised  without  access  to  radio  spectrum.  Trade  aspects  in  the  context  of  radio 
spectrum  are  gaining  momentum  with  the  general  trend  towards  thé  liberalisation  of 
international trade in goods and services, which, for a large part, relies on the availability 
of radio spectrum. 

s  A significant  number of spectrum users do not operate in a commercial environment,  but 
have to compete with commercial users when obtaining spectrum. A key regulatory task is 
to  find  the  balance  between  certain  well-defined  public/non-commercial  uses  of 
radio  of  radio spectrum and the  need for  radio spectrum  as an  essential  resource 
for doing business. 

s  Radio spectrum use represents a significant and growing economic activity. The impact of 
radio  spectrum  availability  on  the  performance  of  society  in  terms  of  employment, 
industrial  competitiveness  and  capacity  for  innovation  has  significantly  increased  as 
compared to the past. 

11 

Chapter 3 

EU policy on radio spectrum: present situation 

3. 

EU  POLICY  ON  RADIO  SPECTRUM:  PRESENT  SITUATION 

The aim of  chapter  3  is to describe  the  European  Community's  policy  objectives  with 
regard to radio spectrum (section 3.1) and to explain the present practice of Community 
involvement  in  radio  spectrum  matters  with  regard  to  the  strategic  planning  of  radio 
spectrum  availability,  radio  spectrum  harmonisation,  the  assignment  and  use  of  radio 
spectrum,  radio  equipment  and  standards,  and  the  institutional  framework  for  the  co 
ordination of radio spectrum (section 3.2). 

A  detailed  description  of  the  present  practice  of  EU  policy  on  radio  spectrum,  including  as 
regards its political and legal base, is given in Annex II. 

3.1 

Defining  EU  policy  on  radio  spectrum 

The  economic,  social, or  political  value  of  radio spectrum  depends  on  the  actual  use 
that  is  made  of  this  bottleneck  facility  and  on  how  it  is  managed.  EU  policy  on  radio 
spectrum is concerned with both dimensions. 

Irrespective of whether radio spectrum is used for Community policies on telecommunications, 
broadcasting, transport, or R&D, the main objectives to  be achieved with  radio spectrum 
are the following. 

• 

• 

• 

• 

to  allow  the  development of  new  services to  meet  consumer  and  governmental 
demands for radio services; 

to  foster 
the  development  of  the  internal  market  for  and  competition  in 
radiocommunications  equipment  and  services,  in  particular  in  the  context  of  the 
deployment and operation of pan-European and global systems and services; 

to  meet  public  policy  objectives with  regard  to  considerations  such  as  safety, 
cultural and social aspects etc; 

to safeguard the Community's interests in multilateral and bilateral negotiations 
where radio spectrum is discussed; 

• 

to stimulate technological innovation and support European competitiveness, 

•  more  broadly  to  develop  economic  growth,  create employment, and  promote 

general welfare. 

Wthin this context, the European Community  has specific responsibilities to ensure that 
the management of radio spectrum is done in accordance with vested legal principles, 
such  as  openness,  transparency,  objectivity,  and  non-discrimination,  as  well  as  with  the 
Community's competition rules. 

Bearing  these  general  objectives  in  mind,  certain  key  issues  need  to  be  considered  in 
relation to the way in which spectrum is made available: 

s 

s 

to secure radio spectrum availability for pan-European radio systems, services and 
equipment; 

to  ensure the appropriate balancing of  commercial  and public interest  in  radio 
spectrum policy; 

12 

Chapter 3 

' 

EU policy on radio spectrum: present situation 

s 

to reflect the economic value of radio spectrum, 

s 

s 

s 

s 

to provide legal certainty as regards radio spectrum availability and use; 

to  ensure open,  transparent, objective, and  non-discriminatory  procedures in 
support of the competitive provision of radio services and equipment; 

to ensure the efficient use of radio frequencies; 

to ensure that radio spectrum policy encourages competition and technological 
innovation, 

S 

to  support  the  development of  economies  of  scale  for  the  introduction  of  new 
equipment which matches the needs of users; 

s 

to ensure coherence between radio spectrum and standardisation policies. 

3.2 

Present  practice  of Community  involvement  in radio spectrum  policy 

In  1987,  the  European  Community  for  the  first  time  acknowledged  the  need  for  the 
harmonisation  of  radio  spectrum  for  the  provision  of  pan-European  mobile  services.  Since 
then,  a  number  of  initiatives  have  been  taken  to  implement  the  aims  of  EU  radio  spectrum 
policy in the following areas: 

1.  The strategic  planning of the use of radio spectrum: when will radio spectrum be 

available? 

2.  The  availability  and  harmonisation  of  radio  spectrum:  how  much  radio  spectrum 

will be available and will its use be harmonised? 

3.  The assignment of radio spectrum: how is radio spectrum assigned, how can it be 

obtained, and under what conditions? 

4.  Radio  equipment  and  standards:  what  are  the  rules  and  conditions  for  the 

marketing and use of radio equipment, including as regards standards? 

5. 

Institutional framework: where are the decisions  made and what is the role of the 
European Community? 

The  political  and  legal  base  for  the  involvement  of  the  European  Community  vary  in  these 
areas,  as  shown  in  the  following  table.  The  present  practice  of  Community  involvement  in 
these  areas  is  summarised  below  (see  Annex  II  for  a  detailed  description  of  EU  policy  on 
radio spectrum). 

13 

Chapter 3 

EU policy on radio spectrum: present situation 

Table 4:  Political and  legal  base for Community  involvement  in radio spectrum  policy 

Political  base 

Legal  base 

>  Directive 87/372/EEC (GSM) 
>  Directive 90/544/EEC (ERMES) 
>  Commission Directive 96/2/EC 
>  Directive 87/372/EEC (GSM) 
>  Directive 90/544/EEC  (ERMES) 
>  Directive 91/287/EEC (DECT) 
>  EP and Council Decision on S-

PCS 

>  Proposal for an EP and Council 

Decision on UMTS 

>  ONP Framework  Directive 

97/51/EC 

>  Commission Directive 96/2/EC 
>  Licensing Directive 97/13/EC 
>  Proposal for an EP and Council 

Directive on radio and 
telecommunications terminal 
equipment (RTTE) 

Planning of the use 
of radio spectrum 

Harmonisation of 
radio spectrum 
allocation 

>  Councif Resolution 90/C 166/02 

>  Council Resolution 90/C 166/02 
>  Council Resolution 92/C 318/01 

- 

Radio spectrum 
assignment 

- 

J 
^ 

Radio equipment and 
standards 

| 

>  Council Resolution 90/C 166/02 

Framework for radio 
spectrum  co- 
ordination 

>  Council Resolution 90/C 166/02 
>  Council Resolution 92/C 318/01 
>  Council Conclusions of 3 

February 1992 

>  Council Conclusions of 7 

December 1993 

>  Council Conclusions of 22 

September 1997 

The  strategic  planning  of radio  spectrum 

availability 

s  The  longer-term  planning,  development,  and  marketing  of  pan-European  radio  services 
and  products  depends  on the  availability  of  radio  spectrum.  Under  European  Community 
Directives,  Member  States  are  obliged  to  plan  and  publish  radio  spectrum 
for  mobile  and  personal  communications  services. 
availability,  particularly 
the  European  Conference  of 
Furthermore,  by  means  of  Council  Resolutions, 
Telecommunications  administrations  (CEPT)  is  requested  to  recommend  to  regulatory 
authorities  or to  the  Community  long-term  requirements  for  the  radio  spectrum  and  to 
achieve  a better-balanced  allocation of radio spectrum  between  its various  uses. 

The  strategic  planning  of  radio  spectrum  availability  in  the  context  of  Community  policies 
is  particularly  needed  in  the  areas  of  mobile  and  satellite  communications  (mobile  and 
satellite  broadband  systems),  broadcasting 
to  digital 
transmission),  and  transport  (the  establishment  of  a  global  navigation  satellite  system, 
GNSS). 

from  analogue 

(the  switch 

Securing 

the  harmonised  availability  of  radio 

spectrum 

s  Radio  spectrum  harmonisation  is achieved  by  means  of  frequency  allocation  measures, 
i.e.  measures  which  identify  frequencies  for  the  provision  of  defined  services  as  well  as 
the  technical  conditions  to  be  taken  into  account.  Frequency  harmonisation  has  been 
achieved  in the  European  Community  through the  adoption  of  Directives  on  GSM,  DECT, 
and  ERMES.  The  harmonised  availability  of  radio  spectrum  for  S-PCS  and  (in  future) 

14 

Chapter 3 

EU policy on radio spectrum: present situation 

UMTS  is  achieved  through  the  adoption  of  Council  and  European  Parliament 
Decisions which refer to the Member State co-ordination in the CEPT framework. In case 
work  in CEPT or the implementation  by  Member  States  is not satisfactory,  further  action 
at  Community  level  can  be  taken.  In  other  cases,  and  as  requested  in  Council 
Resolutions,  radio spectrum  harmonisation  should  be achieved  at the  initiative  of 
CEPT.  Where  this  happens,  Member  States  are  not  obliged  to  implement 
the 
harmonisation measures adopted in CEPT. 

The establishment of Community rules  to assign  and use radio spectrum 

s  Frequency assignment is the  process  where  administrations  authorise  individual  users 
to  use  radio  stations  or  to  provide  radio  services  within  identified  frequency  bands.  In 
certain  cases,  frequency  assignment  is  linked  to  the  licensing  of  users,  including  as 
regards the collection of fees (i.e. administrative  costs and charges)  for the  use of  radio 
spectrum.  Radio  spectrum  assignment  is  governed  by  European  Community 
Directives and is subject to competition law. They aim to establish a level playing field 
for all users of radio spectrum which is based on open, objective, non-discriminatory,  and 
transparent grounds. 

The establishment of Community rules as regards radio equipment and standards 

s  Common frequency  bands are required  in order to  permit  the  use of  radio equipment  in 
different  countries,  to  minimise  co-ordination  problems  at  frontiers  and  to  facilitate  the 
large production  runs for equipment necessary to make European industry competitive at 
world  markets.  The  marketing  and  use  of  radio  equipment  is  governed  by  a 
(proposal  for  a)  European  Community  Directive.  Community  policy  with  respect  to 
standards is aimed at allowing non-discriminatory and technology-neutral access to radio 
spectrum while ensuring interoperability and pan-European provision of services. 

The institutional framework for the co-ordination of radio spectrum 

s  Taking  into  account  that  radio  spectrum  does  not  stop  at  the  Community  borders,  the 
Council  of  Telecommunications  Ministers  found  it  appropriate  in  the  early  1990s  to 
achieve the Community's policy objectives on radio spectrum through international 
agreements rather than via internal instruments. For this reason, a number of Council 
Resolutions  and  Council  Conclusions  were  adopted  which  refer  to  the  International 
its  World 
(ITU, 
Telecommunication  Union 
Radiocommunications  Conferences 
frequency 
harmonisation  and  to  the  European  Conference  of  Postal  and  Telecommunications 
organisations  (CEPT,  43  member)  to  achieve  radio  spectrum  harmonisation  in  Europe 
and to develop corresponding European positions for ITU/WRC. 

186  member 
(WRC) 

to  achieve 

international 

countries) 

and 

In  accordance  with  these  Council  Resolutions  and  Council  Conclusions,  the  European 
Commission and CEPT entered into a formal relationship in the form of a Memorandum of 
Understanding  (1994).  In  its  role  as  observer  in  ITU/WRC  and  counsellor  to  CEPT, 
the  European  Community  seeks  to  ensure  that  its  interests  are  appropriately 
represented in these bodies. 

15 

Chapter 4 

EU policy on radio spectrum: issues for comments 

4. 

EU  POLICY  ON  RADIO  SPECTRUM: ISSUES  FOR  COMMENTS 

The aim of chapter 4 is to invite comments from all interested parties so as to stimulate 
debate  on  whether  the  present  political  and  legal  base  as  well  as  the  practical 
implementation  of Community  radio spectrum policy requires adaptation  in the  light of 
technological, market, and regulatory developments. 

The  issues  presented  are  not  exhaustive  but  are  meant  to  focus  discussion  as  to  where 
Community  policies  currently  apply  and  where  adaptation  may  be  required.  Comments  on 
additional  issues which  require  further  consideration  in the  Community  context will  be taken 
into account  in a further Communication  reporting on the results of the public consultation on 
the Green Paper. 

(1) 

Strategic  planning  of  the  use  of radio  spectrum 

The European Commission would welcome views on the strategic planning of the use 
of radio spectrum in  the  European Community,  particularly as regards: the scope of 
and  information  needed  for  planning  exercises;  whether  a  political  and  legal 
commitment to plan radio spectrum for pan-European services is needed; and to what 
extent a  harmonised  Community approach is  needed to  develop and  implement re-
farming and substitution policies as part of the planning of radio spectrum, including 
as  regards  the  phasing-out  of  analogue services in  the  areas  of  broadcasting and 
mobile telephony. 

_^ 

1 (a) 

Does  the  strategic  planning  of the  use of  radio  spectrum  respond  to  the 
needs  of  commercial  and  non-commercial  uses, in particular  in the  areas 
of  mobile  and  personal  communications,  broadcasting,  transport,  and 
R&D? 

„ 

There are no specific  Community  requirements for the planning of the use of radio  spectrum 
for  services  other  than  telecommunications,  although  the  obligation  to  publish  national 
frequency allocation tables should also comprise information on radio spectrum availability  for 
broadcasting,  transport,  and  R&D  applications.  CEPT's  detailed  spectrum  investigations 
covers  all  uses  of  radio  spectrum,  but,  due to  its voluntary  nature, divergences  may  persist 
between  the  radio  spectrum  planning  of  Member  States.  The  result  may  be  that  the 
development  and  implementation  of  Community  policies  which  depend  on  radio  spectrum 
availability,  as  weil  as  the  general  business  planning  of  radiocommunications  interests,  is 
hampered due to a lack of information. 

1(b) 

information  on 

What 
radio  spectrum 
assignment,  and  licensing  should  be  publicly  available  for  industry  and 
policy  makers?  Where  should  this  information  be  collected  and  how 
should it be presented in the European Community? 

radio  spectrum  allocation, 

Radiocommunications  players not only  need regulatory  certainty as regards the availability  of 
radio spectrum for the provision of services, they also need to know the procedures  for,  and 
conditions  for  use  of  radio  spectrum.  Information  of  this  kind  is  generally  not  included  in 
frequency allocation tables and this information is not available at the Community level. 

1 (c) 

Should  re-farming  and  substitution  policies  form  part  of  the  strategic 
planning  of  radio spectrum for  pan-European  services, what  could  be the 
modalities for this (e.g. actors to be involved, timing), and to what extent is 
a  common  Community  approach  required, for  instance with  regard to  the 
phasing-out  of  analogue  broadcasting  and  analogue  mobile  telephony 
services? 

16 

Chapter  4 

EU  policy  on  radio  spectrum:  issues  for  comments 

The  strategic  planning  of  the  use  of  radio  spectrum  also  requires  regulatory  certainty  with 
regard to any foreseen measures to move existing  users to less congested frequency  bands 
(re-farming  or  re-location within the  radio  spectrum)  or to encourage them to  use alternative 
transmission  infrastructure  (substitution),  taking  also  into  consideration  existing  competition 
rules. Information of this kind is generally  not available. A specific issue is whether  regulatory 
intervention is needed to support the introduction of spectrally  efficient technologies, e.g. is a 
common Community approach needed to support the transition from analogue transmission of 
mobile telephony and broadcast signals to digital forms of transmission.17 

(2) 

Harmonisation  of radio  spectrum  allocation 

ISSUE 2 

The European Commission  would welcome views on radio spectrum harmonisation  in 
the  European  Community  and  the  wider  context;  whether  a  priori  Community 
agreement is  required as  regards the  need  for  harmonisation measures and  on the 
basis of what criteria this can be determined; and  the level of legal certainty required 
with respect to the implementation of such measures by Member States. 

2(a) 

for 

Are  specific  Community  measures  necessary  to  ensure  radio  spectrum 
availability 
areas  of 
telecommunications,  broadcasting, transport,  and  R&D, or should  criteria 
be  established  which  determine  when  radio  spectrum  harmonisation  is 
required? 

pan-European 

applications 

the 

in 

Currently,  no  pre-defined  regulatory  criteria  exist  which  determine  when  radio  spectrum 
harmonisation  is  needed.  Applicants  for  radio  spectrum  seek  political  support  from  the 
European Commission in order to enforce decisions to be taken by CEPT. At the same time, 
the technical proposals in CEPT and ITUA/VRC are increasingly  influenced by commercial and 
political lobbies. Pre-defined criteria appear to be lacking which would comprise both technical 
and socio-economic  elements, on the basis of which  objective  and transparent  decisions  on 
the need for radio spectrum harmonisation can be taken. 

2 (b) 

Where  and  on  the  basis  of  what  criteria  should  priorities  be  set  and 
arbitration  take  place where  radio  spectrum  requirements  for  Community 
policies  on telecommunications,  broadcasting, transport,  and  R&D  are  in 
conflict?  How can it  be ensured  that  commercial and  public  interests  are 
defined and appropriately balanced in this process? 

Pre-defined criteria are also lacking when determining which services  should  receive  priority 
in  accessing  (harmonised)  frequency  bands.  This  fact  causes  problems  where  there  are 

17  The  comments  received  following  the  publication  of  the  Commission's  Green  Paper  on  convergence  on  the 
issue of the switch-off of analogue services were  not conclusive  and showed  a split between those who saw  any 
transition from analogue to digital broadcasting  as  being  market-led, and  not requiring governmental  or EU  level 
intervention,  and  those who  considered  that  a  deadline  set  at  a  national  level would  be  a  useful  stimulus to  the 
development  of digital broadcasting  in the  EU.  Many  of the  commentators  saw  the  role of the  EU  as  one  of  co 
ordination  of  switch-off  dates  rather  than  setting  a  single  date  for  all  Member  States.  A  number  of  mobile 
operators  and  equipment  manufacturers  saw  some  merit  in dates  being  set for  shutting down  analogue  mobile 
communications  systems,  in  order  to  free  spectrum  for  further  digital  communications;  Most  commentators 
considered  that  radio  spectrum  would  continue  to  be  a  scarce  resource  for  the  foreseeable  future, 
notwithstanding  the  efficiency  gains  flowing  from  the  use  of  digital  communications  and  the  analogue  radio 
spectrum  made  available.  In particular  broadcasters  pointed  out that,  for  a  lengthy  period  of time,  broadcasting 
would  be  simultaneously  transmitted  via  digital  and  analogue  frequencies,  thereby  occupying  additional 
frequencies.  For further details, see  COM(98)1284,  29.07.1998,  p.29,30. 

17 

Chapter 4 

EU policy on radio spectrum: Issues for comments 

conflicting  radio spectrum  requirements, i.e. where  radio sectors  compete for access to  (the 
same) radio spectrum on different economic, political, or social, grounds, and where there are 
differences in radio spectrum usage in neighbouring countries. 

2(c) 

Can  the  implementation  of  radio  spectrum  harmonisation  measures, 
necessary for the provision of pan-European services, be left to voluntary 
decisions  by Member States or is there a need for  legal obligation  in that 
respect?  Should  the  European  Community  collect  and  publish  relevant 
information in both cases? 

Where  there  is  no  Community  requirement  for  the  harmonisation  of  frequency  bands,  the 
implementation  of  CEPT  measures  by  Member  States  takes  ,place  on  a  voluntary  basis. 
Currently,  no  comprehensive  information  is  available  as  to  which  Member  States  have 
implemented  CEPT  harmonisation  measures  according  to  which  national  transposition 
measures.18  The  availability  of such information is important for  commercial decisions to be 
taken. 

(3) 

Radio  spectrum  assignment  and  licensing 

ISSUE 3 

The European Commission  would welcome views on radio spectrum assignment and 
licensing, particularly as  concerns which mechanism is  most  suitable  to  secure the 
efficient  use  of  radio  spectrum and  the  harmonised  Introduction  of pan-European 
services;  the  extent  to  which  a  common  Community approach  Is  required  on  the 
valuation and  possible  trading of  radio  spectrum as  well  as  the  possible  costs  of 
relocating existing radio spectrum  users; and the level of legal certainty needed in the 
Community context. 

3 (a) 

Where there  are differences  in Member  States  as  regards  radio  spectrum 
availability  for  pan-European  services,  what  is  the  overall  impact  on 
competition? 

The  Commission  Communication  on  the  implementation  and  functioning  of  the  frequency 
Directives  has  found  that  in general there  are  large  differences  in  the  amount  of  spectrum 
assigned to operators in different countries and even to operators within the same country for 
reasons  which  are  not  always  clear.  Diverging  licensing  conditions,  including  duration  of 
licenses,  can  make  Community-wide  harmonisation  of  radio  spectrum  allocation  and 
assignment difficult.  It may also have an effect on competition, particularly  where it concerns 
pan-European services. 

18 

In  order  to  ensure  clear  regulatory  arrangements  in  this  respect,  the  Commission  proposed  to  make  the 
implementation of CEPT measures obligatory by a specified deadline and to oblige Member States to inform the 
Commission so as to publish national implementation  measures. See: A  new approach to the co-ordination  of 
radio frequencies  in the Community, Communication from the Commission concerning a proposal for a Council 
Decision on the implementation by the Member States of measures concerning radio frequencies, COM(93)382, 
10.09.93.  In this document, the Commission furthermore  proposed that:  Commission  shall ensure  Community 
involvement  in  organisations  dealing  with  radiocommunications;  Council  shall  draw  up  guidelines  on  the 
positions to be adopted by Member States in ERC and ERO; and a representative committee shall be created to 
deliver opinions on the measures to be taken. 

18 

Chapter  4 

EU  policy  on  radio  spectrum:  issues  for  comments 

3(b) 

Is  there  a  need  to  agree  in  the  European  Community  on  which  radio 
spectrum assignment  mechanism  leads to the  most efficient  use of  radio 
spectrum for the different types of services? 

, 

Where  radio  spectrum  is  scarce  and  the  number  of  available  licences  therefore  limited, 
Member States have several mechanisms at their disposal to assign radio spectrum (e.g. first 
come-first  served  procedure,  comparative  bidding,  auctions)  while  taking  into  account  the 
requirement to ensure efficient use of radio spectrum. However, since different  interpretations 
exist  as  regards what  constitutes  efficient  use of  radio spectrum, no consensus  exists  as  to 
which mechanism is best in which cases.19 

3 (c) 

What  is  the  impact  on  pan-European  services  of  diverging  national 
mechanisms to assign radio spectrum, which mechanism is most suitable 
to  support  pan-European  services,  and  to  what  extent  is  a  Community 
approach required in this regard? 

Since the availability  of radio spectrum for  pan-European services is expected to continue to 
be limited, a number of Member States are considering and introducing the use of auctions to 
award the licenses available, e.g. in case of UMTS. Also in this context, no consensus exists 
as to which mechanism is best to support the provision of pan-European services or what the 
impact will be of diverging national approaches in this regard. 

3 (d) 

What  is  the  impact  of  charges  and  fees,  including  relocation  costs, 
associated with the use of radio spectrum on the development of services 
and on the competitive situation? 

Member States may  impose non-discriminatory charges in addition to administrative costs  in 
order to ensure that optimal use is made of radio spectrum and to foster the development  of 
innovative  services  and  competition.  Opinions  diverge  on  the  impact  of  radio  spectrum 
charges. Where licenses have already  been granted, it has been argued that auctions tend to 
strengthen  the  dominance  of  the  incumbent  players  by  increasing  the  costs  for  the  new 
entrants.20  Some  telecommunications  operators  argue that the  costs  involved  with  auctions 
will  reduce  the  readiness  to  invest  in  networks  and  lead to  higher  consumer  prices.  Others 
argue  that  potential  users  are  bidding,  in  effect,  a  part  of  their  future  profits,  without  any 
significant impact on prices to the consumer. 

Some operators have also expressed reservations with the requirement, where applicable, to 
pay  for  the  relocation  costs  of  existing  users,  particularly  where  their  competitors  are  not 
bound  by  such  obligations.  Other  issues  concern  the extent to which  the  revenue  raised  is 

19  The  comments  received  on  the  Green  Paper  on  convergence  show  agreement  on the  overall  need  for  greater 
efficiency  in radio spectrum  use,  although there  are widespread  concerns about the  possible  auctioning  of  radio 
spectrum.  Some  commentators  recognised  that  by  placing  a  commercial  value  on  frequencies,  greater 
efficiency  might  be  promoted  and  that  civil  users  of  frequencies  might  be  encouraged  to  release  some  of  their 
existing  radio spectrum. Other  pointed out the risk of discrimination where later market entrants were  required  to 
pay  a  market  value,  whilst  existing  users  had  much  lower  fees.  However,  for  a  large  majority  of  broadcasters, 
telecommunications  operators  and  equipment  manufacturers,  current  mechanisms  such  as  so-called  "beauty 
contests"  or  comparative  bidding  provided  the  most  effective  way  of  balancing  the  need  to  ensure  efficient  use 
of  frequencies  and  the  need  to  avoid  excessive  charges  for  the  players  involved,  as  ultimately  those  charges 
would  be  passed  on  to the  consumer.  Such  high  charges  were  felt  to  often  be  motivated  by  national  budgetary 
considerations  rather  than  by  the  concern  of  radio  spectrum  efficiency.  At  the  same  time,  a  number  of 
broadcasters,  including  those  representing  community  and  local  radio,  made  the  point that where  higher  values 
were  attached  to  radio  spectrum,  provision  should  be  made  to  ensure  that  certain  public  service  broadcasters 
could still obtain frequencies  at an  affordable  price.  For further details, see  COM(98)1284,  29.07.1998,  p.29,30. 

20 

The  Commission  is currently  dealing with complaints  regarding the effects of auctions. 

19 

Chapter 4 

EU policy on radio spectrum: issues for comments 

used  for  radio  spectrum  policy  and  frequency  management,  e.g.  to  make  further  radio 
spectrum available (for pan-European services). 

3 (e) 

Should the awarding of  radio spectrum  be separated  from the granting of 
service authorisations or licences? What would be the impact of creating a 
secondary  market  for  radio  spectrum  for  the  provision  of  similar  or 
different services, and which safeguards are needed in this regard? 

It is argued that the efficient use of radio spectrum would be best served by separating service 
authorisations  and  licenses  from  radio  spectrum  assignments.  It  is  claimed  that  the 
advantages of spectrum trading would be that single assignments  could be transferred  (for a 
price)  from  one  user  to  another  with  no  change  of  use  of  the  spectrum.  Alternatively, 
assignments  may  be  subdivided  or  combined  and,  where  appropriate,  used  to  provide  a 
different  radio service for which there is market demand. Since radio spectrum is a bottleneck 
facility,  consideration  should  be given  to  the  potential  impact  of  secondary  trading  on  anti 
competitive behaviour and on abuses of dominant positions. Also, the possible risk of a further 
fragmentation  of  radio  spectrum  use  should  be  taken  into  account.  For  the  European 
Community,  a  particular  issue  to  be  addressed  in  this  regard  is whether  diverging  national 
approaches  or  the  absence  of  a  common  Community  approach  to  such  matters  will  affect 
pan-European service provision and the efficient use of radio spectrum. 

(4) 

Radio  equipment  and  standards 

The  European  Commission would  welcome  views  on  the  link  between Community 
policy on radio equipment, standards, and radio spectrum, with particular regard to the 
co-operation between bodies responsible for  standards  and  radio spectrum and the 
measures needed at the operational level of radio spectrum management 

4 (a) 

Is there  a need to  improve  the  link  between  the  elaboration  of  standards 
and  the  harmonisation  of  radio  spectrum  allocation  for  pan-European 
services  in the areas of telecommunications,  broadcasting, transport, and 
R&D? 

The  implementation  of  a  number  of  Community  policies,  for  instance  in  the  areas  of  radio 
navigation and road transport telematics, depends on standards developed in fora other than 
ETSI, which is mainly concerned with the elaboration of telecommunications standards. 

4 (b) 

Which  practical arrangements  are needed  to ensure that the full  potential 
of  Community  policy  on  radio  equipment  is  supported  by  appropriate 
action at the level of radio spectrum management? 

The  RTTE  Directive will  remove  many  regulatory  barriers  for the  placing  on the  market  and 
free  movement  and putting  into service  in the  Community  of  novel and  innovative  radio and 
telecommunications  terminal  equipment,  rt- will  ease  the  marketing  of  such  equipment 
throughout  the  Community,  and  will  avoid  the  need  for  ad  hoc  mutual  recognition 
arrangements  between  Member  States  (e.g.  such  as  those  developed  by  CEPT  in  recent 
years).  However,  if consumers  and industry  are to benefit from this, the timely  availability  of 
harmonised  spectrum  is  a  prerequisite  and  close  consultation  is  required  between  policy 
makers,  manufacturers,  and  users  to  address  the  following  issues:  the  establishment  of  a 
database  of  national  regulations- for  the  use  of  the  radio  spectrum,  one-stop  notification 
procedures, and arrangements in support of market surveillance. 

20 

Chapter 4 

EU policy on radio spectrum: issues for comments 

(5) 

The  institutional  framework  for radio  spectrum  co-ordination 

/ S S ( y£  5 

The European Commission  would welcome views on whether the present institutional 
arrangements  for  the  co-ordination of  radio  spectrum  are  appropriate  to  meet  the 
Community's policy objectives, i.e. to contribute to economic growth, employment,  and 
welfare, to stimulate technological innovation and the development of new services,  to 
foster competition in the internal market,  and to strengthen European  competitiveness 
in the establishment of pan-European and global radio systems. 

5 (a) 

In  view  of  the  need  to  have  a  predictable  environment  in  the  European 
Community  for  the  use  of  radio  spectrum,  is  the  framework  for  the  co 
ordination  of  radio  spectrum  sufficiently  open,  transparent,  and  legally 
certain? Is it clear where and on the basis of which principles the need for 
radio spectrum harmonisation or for Community positions is established? 

Both  new  and  existing  users  of  radio  spectrum  are  likely  to  benefit  from  a  high  level  of 
openness  in the regulatory framework and should therefore be more involved in the decision 
making  process.  Certain  parts  of  the  radio  spectrum  are  congested  and,  in  order  for  new 
telecommunications,  broadcasting,  transport,  and  R&D  applications  to  be  introduced,  radio 
spectrum might need to be shared or existing users might need to give up their occupancy of 
frequency  bands or limit their expansion. In this context, Community competition rules need to 
be fully  applied. Any  change  in the  use of  radio spectrum will affect  new  and existing  users 
alike  and  they  therefore  need to  be consulted  in order to assess the appropriateness  of the 
decisions to be taken. 

Particularly  where  applicants  for  radio  spectrum  in  various  economic  sectors  compete  on 
different  economic,  political, or social grounds, priorities  in radio spectrum use are difficult to 
set where  no objective  principles  (whether technical, economic,  political, and social)  exist on 
the basis of which priorities to spectrum access can be set. The result of this situation is also 
that  (both  European  and  third  country)  applicants  for  radio  spectrum  address  their 
requirements  in parallel at the level of the Member States, CEPT, and the Community, which 
is inefficient, and which in turn may trigger European operators to seek governmental support 
in other parts of the world for the introduction of new systems, both in terms of radio spectrum 
allocation and assignment. 

5 (b) 

Is  the  establishment  of  a  priori  Community  agreement  necessary  to 
achieve  radio spectrum  harmonisation or is it sufficient to co-ordinate the 
positions of the Member States in CEPT on an ad hoc and technical basis? 

Common  Community  positions  in  CEPT  can  only  be  ensured  where  political  and  legal 
agreement  is  reached  in  the  Community  context.  In  all other  cases,  experience  has  shown 
that it is difficult to assess whether the economic and general interests of the Community  are 
safeguarded  on  the  basis  of  technical  information  provided  during  the  development  of 
harmonisation  measures  or  of  European  positions  in  CEPT.  This  points  to  the  need  to 
substantiate  the technical  information  available with economic,  political, and social  elements 
in order  to establish whether  and at which  stage of the development  of  positions  a common 
Community approach in CEPT and ITUAA/RC is needed. 

5 (c) 

In which fora should Community  positions  be developed where  needed in 
discussions  on radio spectrum  between the  European  Community  and  its 
trading partners? 

Radio spectrum is increasingly  being raised as a market access issue in discussions  between 
the European Community and its trading partners. Availability of and access to radio spectrum 
is  a  key  condition  for  organisations  to  provide  radio  services  and  products  abroad  and  for 

21 

Chapter 4 

EU policy on radio spectrum: issues for comments 

internal and external communications.  However, the European Community  does not have the 
information  to discuss current or future availability  of radio spectrum for the Community  as a 
whole.  According  to  the  current  regulatory  arrangements,  CEPT  should  develop  such 
common  European positions when needed. However, the process  by which  CEPT arrives at 
such positions can be lengthy and does not always reflect the Community position. 

5(d) 

Should  procedures  be  introduced  to  ensure  that  the  Member  States 
support  CEPT  positions  for  ITU/WRC,  particularly  in  view  of  the  need  to 
uphold Community interests in the international arena? 

The  Member  States  in CEPT are not obliged to comply with the European  positions  worked 
out  for  ITUAA/RC.21  In  practice,  the  European  Commission  is  not  in  a  position  to  secure  a 
common Community approach in ITUAWRC nor is it able to arbitrate in case Member States in 
CEPT disagree on the positions to be taken. 

21  European  Common  Proposals  (ECP)  are  proposals  adopted  by the  Conference  Preparatory  Group  (CPG)  of 
CEPT  in preparation for  ITU  meetings which reflect the position of the CEPT  members who have  expressed 
their  intention to co-sign the ECP.  ECP approval requires the support of at least  10 CEPT members, and not 
more than 6 members opposing. Those who have opposed are expected to co-operate with all CEPT members 
in WRC on a consensus basis and refrain from defending separate individual or multilateral proposals, but there 
is no strict legal obligation for them to do so. 

22 

Chapter 5 

Conclusions 

5. 

CONCLUSIONS 

Major technological,  market,  and  regulatory  developments  have an impact on the way  radio 
spectrum  policy  is  made  in  the  European  Community  and  at  the  international  level. 
Furthermore, the availability of radio spectrum has become a key issue for the implementation 
of Community policies on telecommunications, broadcasting, transport, and R&D. Considering 
that radio spectrum  is a  bottleneck  facility,  it is appropriate  to discuss  radio spectrum  policy 
issues with all interested  parties  in the  light of these  changes  so as to ensure  that the  best 
possible use is made of the radio spectrum resource. 

. Against the background of the Community  policy objectives with regard to radio spectrum and 
in the context of the political and legal base and practical  reality  for Community  involvement 
with regard to the  European framework  for the co-ordination  of radio spectrum, the  strategic 
planning  of the  use of  radio  spectrum, the  harmonisation  of  radio spectrum allocation,  radio 
spectrum assignment  and  licensing,  and  radio  equipment  and  standards,  this  Green  Paper 
invites  interested  parties  to  give  views  on  a  number  of  issues  pertinent  in  the  Community 
context. 

The issues require a wide public debate so as to determine whether further Community action 
is required. 

The Commission will report on the findings of the consultation period and propose Community 
measures to the European Parliament and the Council, where appropriate. 

23 

Annex I 

European Community policies involving radio spectrum 

ANNEX  I 

EUROPEAN  COMMUNITY  POLICIES  INVOLVING  RADIO  SPECTRUM 

The  implementation  of a number of sector-specific  Community  policies  depends  critically  on 
the  availability  of  radio  spectrum. An  overview  of  these  policies  is  outlined  in  this  Annex22; 
horizontal Community policies are referred to in the main body of the text of the Green Paper. 

Telecommunications  policy 

With the introduction of the digital generation of public mobile communications systems (GSM, 
DECT, ERMES) at the end of the eighties through spectrum co-ordination as well as through 
liberalisation  measures from the regulatory  point of view, the European Community  helped to 
create  a pan  European service range which  has now  been successfully  implemented  and is 
recognised as responding to a user demand as well as being an important industrial activity in 
itself.  In  view  of  the  future  demand  for  public  mobile  communication  both  in  volume  and 
service enhancement  and diversity, Community  action  is currently  undertaken to support the 
development  and  deployment  of  a  European  proposal  for  the  3rd generation  mobile  system 
(IMT2000),  UMTS  (Universal  Mobile  Telecommunications  System),  for  which  spectrum 
availability  is  a  crucial  element  to  be  discussed  at  the  forthcoming  World  Radiocommu 
nications Conference (WRC-2000). Wireless communication is also considered in the context 
of the convergence  between mobile and fixed services. In this context the usage of wireless 
local  loop  (WLL)  is  potentially  an  important  means  to  achieve  the  necessary  competition  in 
telecommunications. 

The  development  of  mobile  terrestrial  communication  has  been  subject  to  intensive  R&D 
.activities  at  European  Community  level  through  the  RACE  and  the  ACTS  programmes. 
Projects have been funded with approximately  176 MECU during the period 1986-98. 

Satellite Communication  has equally  been  recognised  as a necessary  component  in view of 
realising  the  Information  Society.  Besides  the  liberalisation  of  the  satellite  sector  through 
Community  measures in the early nineties, action is undertaken to support the synergy of the 
players  involved  through  the  Satellite  Action  Plan.  Furthermore,  the  European  Community 
actively  contributes  to  efforts  to co-ordinate  the  introduction  of  global  S-PCS  systems.  This 
includes the harmonisation of radio spectrum bands. 

European  Community  funding  for  satellite  communications  projects  from  RTD-programmes 
has been 85 MECU in 1987-97. The 5th Framework  Programme for  RTD foresees a funding 
of  Information  Society  technologies  of 3.3  billion  ECU in the period  1998-2002. The share of 
the satellite communications is expected to be around 15 million ECU per year.23 

At  the  level  of  trans-European  networks,  initial  projects  to  stimulate  the  usage  of  satellite 
system-based infrastructure as a communication backbone are under preparation. 

22  A detailed description on spectrum aspects related to these policies can be found in the in the Commission Staff 
Working  Paper:  "Issues  at  the  World  Radiocommunications  Conference  1999  (WRC-99)",  SEC(1998)839, 
12.5.98 

23  The Space Co-ordination Group, The Fifth Framework  Programme and Space Applications, SEC(1998)1055. 

& 

Annex  I 

European  Community  policies  involving  radio  spectrum 

Broadcasting  policy 

The Television  Without  Frontiers  Directive  establishes  the free  movement  of  TV  broadcasts 
within  the  European  Community  and  is  therefore  essentially  a  single  market  measure  to 
ensure the free movement of services. The Directive has recently  been amended by  Directive 
EC/97/36  to  take  account  of  changes  of  the  market,  in  particular  arising  from  technological 
developments. The MEDIA programme  (Community  budget: 310 MECU  1996-2000)  aims at 
promoting and developing the European audio-visual industry. 

Digitisation  and the development  of new services  such as specialist channels  and Video-on-
Demand  will  create  increased  demand  for  audio-visual  content.  Community  policy  is  to 
ensure, for cultural, industrial and employment reasons, that this demand is met  by European 
audio-visual production. 

European  Community  policy  on  advanced  television  and  digital  broadcasting  aims  at 
facilitating  the  market-led  introduction  of  digital  and  wide-screen  television24.  It  has  both  a 
regulatory  and  a  promotional  strand.  The  Directive  on  the  use  of  television  transmission 
standards25  set  up  a  light  regulatory  framework  to  support  the  launch  of  digital  television 
services,  providing certainty  for  investors, and ensuring that  public  interest  requirements  are 
met. 

On  the  promotional  front,  the  Commission  has  supported  the  activities  of  the  Digital  Video 
Broadcasting  (DVB)  group26.  The  group  has  defined  the  European  digital  broadcasting 
standards  for  cable,  satellite  and  terrestrial  television  which  are  increasingly  being  used  all 
over the world. In addition, the Union launched a four-year Action Plan in 199327  to overcome 
the  market  failure  that  had  prevented  the  introduction  of wide-screen  television  in the  16 :9 
format. Wide-screen is now an established part of the broadcast services and TV set markets, 
ready for an increasing role in digital TV markets. 

The  Commission  also  follows  the  activity  of  the  World  Digital  Audio  Broadcasting  (DAB) 
Forum . The aim of this forum, which has more than 100 member organisations world-wide, is 
to speed  up the introduction of  Digital Audio  Broadcasting  in  Europe.  DAB was created  by a 
consortium  of  European  manufacturers,  research 
institutes,  network  operators  and 
broadcasters  under the  umbrella  of the  Eureka  technology  programme  and with  Community 
support. This system has received ITU recognition as a world standard. 

Today,  one  Member  State  has  launched  digital  terrestrial  broadcasting  and  several  other 
Member  States  are  looking  to  do  the  same.  What  the  effect  of  a  general  cut-off  date  for 
analogue  terrestrial  broadcasting  would  be on the  market  overall  is a  complicated  matter  in 

24  See  Council  Decision  on  an  Action  Plan  for  the  Introduction  of  Advanced  Television  Services  in  Europe, 
93/424/EEC,  OJ No L196/48 5.8.93. This Action  Plan has facilitated  the  market  introduction  of the  16:9 wide-
screen format ready for digital TV. 

25  European  Parliament and Council Directive  95/47/EC of 24 October  1995 on the  use of television  transmission 

standards OJ 95/L28/51, 23.11.1995. 

26  The Digital Video  Broadcasting group (DVB) is an association of broadcasters, transmission  companies  as well 
as consumer and professional electronics manufacturers. The group comprises over 200 organisations  in more 
than  30  countries.  The  DVB  group  has  developed  a  complete  family  of  interrelated  television  systems  for  all 
transmission  media (including terrestrial, cable, satellite) and at all quality  levels (standard definition through to 
high definition) and with the possibility to offer new convergent services like Internet access. DVB systems have 
been standardised by ETSI and are recognised by the ITU at the global level. 

27  Council  Decision  93/424/EEC  of  93/424  of  22  July  1993  on  an Action  Plan  for  the  Introduction  of  Advanced 
Television  Services  in  Europe,  OJ  L-281, 23.11.1995. The  Council  Decision  made  available  up  to  228  MECU 
over 4 years, ending on June 30th 1997 

/ 

à) 

Annex I 

European Community policies involving radio spectrum 

view  of  the  widely  differing  characteristics  of  the  television  markets  in  each  of  the  Member 
States. This issue is currently subject to a political debate which touches upon several issues, 
only one of which is spectrum policy. 

The digitalisation of terrestrial broadcasting would potentially allow for reduced radio spectrum 
occupancy  for  existing broadcast services, thereby freeing up radio spectrum. However,  it is 
very  likely  that  in  many  countries,  a  lengthy  transition  period  to  digital  will  be  needed. 
Consumers will need time to replace their radio sets. They will also need to purchase one or 
more  decoders  to  upgrade  their  analogue  TV  sets  or  to  buy  one  or  more  new  integrated 
digital TV sets.  A  period of "simulcasting" will therefore  be necessary  (of anything  up to  15 
years) and this will in fact put additional strains on the availability of radio spectrum. Moreover, 
the  range  of  broadcast  services  is  already  increasing  rapidly,  with  more  NVOD,  thematic 
channels  and  interactive  TV  becoming  available.  On  the  other  hand,  as  TV  broadcasting 
develops from its origins (a few public terrestrial channels) towards pay TV and transactional, 
retail  style  delivery  of  programmes  "on  demand",  and  as  wireless  communications  evolves 
towards multimedia, the  terms for access to spectrum which terrestrial broadcasters currently 
enjoy are increasingly  being called into question by economic actors in other sectors. 28 

As  far  as  the  introduction  of  digital  radio  is  concerned,  it  has  to  be  outlined  that  DAB 
operational  services  have  already  been  launched  in  various  Member  States  like  Sweden 
(covering  80% of the population),  UK (a public and a commercial service  have already  been 
licensed),  France  and  Italy.  Other  Member  States  are  planning  to  start  soon  regular  DAB 
services (i.e. Germany in Spring 1999). 

Transport  policy 

The European Community  has  become active in several sectors  related to transport  such as 
aeronautical  service  sector,  satellite  navigation  and  positioning,  maritime  navigation  and 
communication  sector  as  well  as  the  development  of  inter-modal  transport  telematics 
applications. 

As a result of the efforts  undertaken to establish as single air transport  market  based on the 
free  market  access,  the  air  transport  sector  has  been  considerably  stimulated  leading  to  a 
strong  demand  for  the  improvement  and  further  development  as  well  innovation  of 
aeronautical 
typically  based  on 
radiocommunications  techniques  and  thereby  requiring  spectrum  allocation.  Having  radio 
spectrum  available  becomes 
the  successful 
implementation of an air transport policy. 

thereby  an  essential  pre-requisite 

communication  and  navigation 

support29,  all 

for 

Maritime  communications  remains  an  important  sector,  especially  given 
its  specific 
requirements  for  safety  and  security30,  and  is  defined  as  such  in  the  trans-European 
Transport  Network  Guidelines31.  The  European  Community  has  therefore  supported  the 

28  The  Commission  is  currently  dealing  with  complaints  involving  non-transparent  and  potentially  discriminatory 

attribution of radio spectrum in this sector. 

29  Communication from the Commission on congestion and crisis in air traffic, COM(95)318 final, 5.7.1995. 

30  Green Paper on Sea Ports and Maritime Infrastructure, COM(97)678 ,10.12.97 

31  Decision  1692/96/EC of the  European  Parliament  and of the  Council of 23 July  1996, which  specifies  that  the 
trans-European  shipping  management  and  information  network  is  composed  of  coastal  and  port  shipping 
management  systems,  vessel  positioning  systems,  reporting  systems  for  vessels  transporting  dangerous  or 
polluting goods, communication systems for distress and safety at sea. 

U, 

Annex I 

European Community policies involving radio spectrum 

development  of  maritime  systems  through  research  actions  under  the  TELEMATICS 
programme of the Fourth Framework Programme. 

Satellite  positioning,  navigation  and timing  systems  such  as GPS and  GLONASS,  originally 
developed  for  military  applications,  are expected  to allow for widely  varying  usagé  including 
aeronautical  and  maritime  navigation,  fleet  management  and  tracking,  provision  of  precise 
time  references,  and  positioning  in  the  consumer  sector,  etc.  The  European  Community  is 
currently  assessing  its  role  in  the  development  of  the  next  generation  global  satellite 
positioning and navigation system and, particularly, the scope for cooperation with the US and 
the  Russian  Federation.  The  availability,  planning  and  protection  of  spectrum  for  GNSS  is 
seen as a priority  and the Council  has confirmed that adequate  protection of  radio  spectrum 
for GNSS needs to be recognised in the relevant international fora.32 

Total investments in the European augmentation of GNSS are estimated to 570-4000 MECU 
depending  on which  alternative  is  chosen.  The  European  Community  funding  for  GNSS  in 
1998 is 21 MECU which is expected to substantially increase beyond 2000.33 

A  growing  number  of  additional  transport  telematics  systems  are  emerging,  many  resulting 
from related R&D projects in Community  programmes such as the TELEMATICS  programme 
where approximately  220 MECUs have been spent during the period 1984-1998 on transport 
R&D  activities  New  proposals  such  as  comprehensive  transport  information  systems  or  a 
European  wide  "GSM  for  Railways"  service  are  being  developed.  For  road  transport, 
Dedicated  Short  Range  Communications  (DSRC)  systems  are  already  used  for  Electronic 
Fee Collection and will increasingly  support driver information and various other systems that 
depend  on  vehicle  to  vehicle/infrastructure  communications.  It  is  expected  that  these 
applications will increase the overall demand for spectrum.34 

Earth  observation 

Earth observation has considerable importance as a basic tool for a certain number of specific 
policies  such  as  global  scale  measurements35,  implementation  of  environmental  and  civil 
protection  policies36,  and  agricultural  policies37.  Consequently  Europe  has  developed  a 
technological  basis  in  co-operation  with  the  Member  States  represented  in  ESA  (European 
Space  Agency)  as  well  as  through  national  programmes.  Examples  of  application  are  the 

32  Communication by the Commission: Towards  a Trans-European  Positioning  and Navigation  Network,  including 
a European Strategy for Global Navigation Satellite Systems  (GNSS), COM(98)29 final, 21.1.1998  and Council 
conclusions of 17 March 1998. 

33  Communication by the Commission: Towards  a Trans-European  Positioning  and Navigation  Network,  including 

a European Strategy for Global Navigation Satellite Systems (GNSS), COM(98)29 final, 21.1.1998. 

34  Designation  of  further  frequency  bandwidth  for  road  transport  and  traffic  telematics  within  Dedicated  Short 

Range Communication Systems,  study commissioned by the Commission, January 1998 

35  Earth observation (EO)  aiming at global scale measurements of parameters such as ocean colour, sea surface 
temperature, weather  forecasts,  continental  land  cover  and  biomass  burning, vital for  initiating  and  validating 
models of global change, heavily rely on satellite EO. Earth system science entails a global partnership in which 
Europe has clear obligations. 

36  EO  can  be  a  cost-effective  tool  for  the  implementation  of  environmental  and  civil  protection  policies.  EO  is 
already  used pre-operationally for  monitoring changes  in land cover for the Natura 2000 network  as part of the 
Habitats  Directive,  and for  detecting  oil  spills  in the  context  of  the  Bonn  Convention. The  information  offered 
from  space  can  help  in the  management  and  even  prediction  of  natural  hazards  such  as  floods,  storms  and 
forest  fires.  Particularly  if  the  frequency  and  magnitude  of  these  events  increase  with  a  changing  climate  or 
effects such as the "El Nino", the contribution of EO to their mitigation can have considerable economic impact. 

37  EO is already  used in the  EU to  check  claims  for  agricultural subsidy, and for gathering  statistics.  EO will  also 
play a role in the context of an evolving Common Agricultural Policy, particularly with an increasing emphasis on 
environmental impact. 

IV 

& 

Annex  I 

European  Community  policies  involving  radio  spectrum 

weather  satellites  for  European  meteorological  services  operated  through  EUMETSAT.  More 
recently, the demand for new environmental monitoring services  has increased in the context 
of binding international agreements such as the as the Montreal Protocol, The Kyoto Protocol, 
the Biodiversity Convention and the Framework Convention on Climate Change. 

The  European  Commission  pursues  efforts  to  stimulate  the  Earth  observation  technological 
background  through  R&D programmes.  Under  the  Fourth  Framework  Programme  (1995-98) 
around 275 MECU were dedicated on Earth observation  related research. The Commission's 
proposal for the Fifth Framework Programme of the European Communities for Research and 
Development  Activities  (1998-2002)38  includes  research  activities  on  the  development  of 
generic  Earth  observation  technologies,  notably  satellite  technologies  for  environmental 
monitoring  and  resources.  RTD  activities  on  Earth  observation  are  also  considered  in  the 
Communication on space applications and their market perspective39. 

Radio  Astronomy 

Radio-astronomy  has been recognised as an activity in which the European Community  has a 
general  interest  in participating. However, substantial investment  in suitable  infrastructures  is 
required and large-scale installations are increasingly  operated on a shared and global basis. 
Currently,  Community  activities  are  implemented  through  Action  4  of  the  Framework 
Programmes  on  RTD,  in  particular  Research  Networks  and  Access  to  Large-Scale 
Facilities.40 Both activities are foreseen to be continued under Framework Programme 5.41 

The  involvement  of  the  Community  on  an  international  level  is  organised  through  the 
participation  at  the  OECD  Megascience  Forum  (Working  Group  on  Radio-astronomy).  The 
financial  contributions  for  the  period  of  1994-98  are  estimated  at  7.3  MECU.  Besides  co 
ordination  of  R&D  activities,  radio-astronomers  have  identified  a  need  to  take  action  at  a 
global  level to tackle  the rapidly  increasing  problem of  radio  interference  which  results  from 
the  heavy  utilisation  of  radio  spectrum  and  related  phenomena,  such  as  out-of-band 
emissions  by  satellites.  Because  of  the  extreme  sensitivities  required  to  carry  out  radio-
astronomical experiments, such radio interference could inhibit most ground based (on Earth) 
observations in future. 

38  COM(97)142 final, The Commission proposal for the Fifth  Framework  Programme of the  European  Community 

for Research and Development Activities (1998-2002), 30.4.1997. 

39  COM(96)617  final,  Communication  from  the  Commission  the  European  Parliament  and  the  Council  on  the 

European Union and Space: Fostering Applications, Markets and Industrial Competitiveness, 4.12.1996. 

40  Council  Decision on the specific programme  on "training  and mobility  of researchers"  (TMR), OJ No. L361/90, 

31.12.94. 

41  Proposal for a Council Decision on the specific programme on "improving the human research potential and the 

socio-economic knowledge base, COM(98)305. 

J$ 

Annex II 

EU policy on radio spectrum 

EU  POLICY  ON  RADIO  SPECTRUM 

ANNEX  II 

The  aim  of  this  annex  is  to  explain  the  political  and  legal  base  for,  and  present  practice  of 
Community  involvement  in  radio  spectrum  policy  in  the  following  areas:  (1)  the  strategic 
planning of the use of radio spectrum; (2) the making available of harmonised  radio spectrum 
for pan-European and global radio services; (3) the application of the rules for the distribution 
and use of  radio spectrum; (4) the marketing and use of radio equipment;  (5) the  institutional 
framework for the co-ordination of radio spectrum. 

Strategic  planning  of the  use  of  radio  spectrum 

Main  objective:  creating a predictable environment for current and future use of radio 
spectrum 

In  order  to  create  an  environment  for  radio  spectrum  which  allows  for  the  longer-term 
planning  and  development  of  pan-European  radio  services  and  products,  particularly  in 
the telecommunications  area, the use of  radio  spectrum  should  be strategically  planned. 
Where  necessary,  action  should  be  taken  where  technological,  market,  or  regulatory 
developments  require  an  adjustment  in  the  distribution  of  radio  spectrum  among  its 
various uses. 

Political  and  legal  base 

I

Directive 87/372/EEC 
(GSM) 
Directive 90/544/EEC 
(ERMES) 
Council Resolution 
90/C 166/02 
Council Resolution 
95/C 18870242 

Commission  Directive 
96/2/EC43 

Strategic planning of the use of radio spectrum 

I 

•  Member  States  shall  prepare  plans  for  GSM to  fully  occupy  the  reserved 

frequency bands according to commercial demand 

•  Member  States  shall  prepare  plans  for ERMES  to fully  occupy  the reserved 

frequency bands according to commercial demand 

•  CEPT to recommend  to regulatory  authorities  or to the Community  long-term 

requirements for the radio spectrum 

J 

•  CEPT  to  achieve  a  better-balanced  allocation  of  the  frequency  spectrum 

• 

between its various uses 
In  the context  of  ERC,  to  provide  for  frequencies  for  mobile  and  personal 
communications complying with European standards 

•  Member  States  shall  publish the frequency  plans  and the procedures  for the 

designation of frequencies for specific services 

•  Member  States  shall  publish  every  year,  make  available  on  request,  and 
communicate  to  the  Commission  the  allocation  scheme  of  frequencies 
reserved for mobile and personal communications  services,  including the plan 
for future extension of such frequencies 

•  Current  frequency  allocation  shall  be  reviewed  at  regular  intervals;  detailed 
knowledge of the actual  state of allocation  and use of radio  spectrum  is also 
required 

•  Where  the number  of  licenses  is  limited  due to  spectrum  scarcity,  Member 
States will review whether advances in technology would allow spectrum to  be 
_ ^ ^ ^ _ _ _ _ _ _ _ _ _ _ _ __ 
made available for additional licenses 

4^  Council Resolution of 29 June 1995 on the further development of mobile and personal communications in the 

European Union, 95/C 188/02, OJ C188/3, 22.07.95. 

43  Commission Directive 96/2/EC of 1& January  1996 amending Directive 90/388/EEC with regard to mobile and 

personal communications, L20/59, 26.01.96. 

tà 

Annex II 

EU policy on radio spectrum 

Present  practice 

The strategic planning of the use of radio spectrum is dealt with in the Community  context 
in the following ways: 

•  Community  requirements  for the  planning of the  use of  radio spectrum for  mobile 

and personal communications are monitored 

The  Commission  Communication  on  the  implementation  and  functioning  of  the  mobile 
frequency  Directives44 has found that only a limited number of Member States have so far 
notified the Commission about their plans as regards radio spectrum availability for mobile 
and  personal  communications.  However,  in  particular  in the  area  of  mobile  and  satellite 
communications  (GSM,  UMTS,  S-PCS),  market  players  seek  clarity  as  regards  future 
availability  of  radio  spectrum  for  such  applications.  This  is  also  true  for  activities  other 
than telecommunications.  For example, common European frequency  bands are  needed 
to in support of Community policies on transport, broadcasting, and R&D. 

•  The European Community contributes to the establishment of an European table of 

frequency allocation 

The Community  partly funds the CEPT process of detailed spectrum investigations (DSI), 
which  should  contribute  to  the  establishment  of  a  harmonised  European  table  of 
frequency allocation and utilisation (planned to be finalised by CEPT by the year 2008). In 
addition,  external  studies  carried  out  on  behalf  of  the  Commission  on  market 
developments of radiocommunications services have been made available to CEPT. 

Q  Member States are  not obliged  in their  planning of radio spectrum to  comply  with 

the provisional European table of frequency allocation of CEPT 

No  information  is  publicly  available  as  regards  the  extent  to  which  Member  States' 
national  planning  of  the  use  of  radio  spectrum  complies with the  preliminary  version  of 
CEPT's  European  table  of  frequency  allocation  since  its  implementation  occurs  on  a 
voluntary  basis. Member States increasingly  make available national frequency  allocation 
tables.  However,  significant  national  divergences  exist  as  regards  the  format  and 
presentation  of  such  tables.  Information  as  regards  the  situation  of  radio  spectrum 
allocation for the Community as a whole is not available. 

•  No  specific  recommendations  are  made  to  the  European  Community  as  regards 

long-term requirements for the radio spectrum 

The Commission  has so far  neither  been informed about any  national reviews of current 
radio spectrum allocation, nor whether advances in technology would allow for  additional 
licenses  to  be  made  available.  CEPT  has  so  far  not  recommended  to  the  Community 
long-term requirements for the radio spectrum, nor has it taken concrete steps to achieve 
a better-balanced allocation of the radio spectrum between its various uses. 

44  See footnote 17. 

Jo 

Annex  II 

EU policy  on radio  spectrum 

2. 

Harmonisation of  radio  spectrum  allocation 

Main  objective:  securing  the  harmonised  availability  of  radio  spectrum  for  pan-
European services 

The  establishment  of  EU  and  international-wide  frequency  bands  is  critical  to  the  free 
movement  of goods,  persons  and to the free  provision of  services. The co-ordination  of 
radio  spectrum  therefore  falls  within  the  core  area  of  EC  internal  market  competence. 
Radio spectrum harmonisation is achieved by means of frequency allocation measures, 
i.e. measures which identify frequency  bands for the provision of defined services as well 
as the technical conditions to be taken into account. 

Political  and  legal  base 

Directive  87/372/EEC 
(GSM)45 
Directive  90/544/EEC 
(ERMES)46 
Directive  91/287/EEC 
(DECT)47 
Council  Resolution  90/C 
166/02 

Harmonisation of radio spectrum allocation 

•  Member  States  shall  reserve  specific frequency  bands for  GSM 

•  Member  States  shall  reserve  specific frequency  bands for  ERMES 

•  Member  States  shall reserve  specific frequency  bands for  DECT 

• 

CEPT  to  recommend  to  regulatory  authorities  or to  the  Community  suitable 
frequencies  for  pan-European  sen/ices 

Council  Resolution-92/C 
318/01 

•  Member  States  should  participate  in the development  of  ERC  decisions 
•  Member  States  should  commit  themselves  to 

implementing  the  ERC 

EP and  Council  Decision 
on S-PCS48 

Proposal for an  EP and 
Council  Decision  on 
UMTS49 

• 

• 

• 

* 

decisions  on TFTS  and  RTT, according to ERC  procedures 
CEPT  is  tasked  to  harmonise  frequencies  and  authorisation  conditions  for 
S-PCS 
In  case  work  by  CEPT  or  the  implementation  by  Member  States  is  not 
satisfactory, further  action at Community  level shall be taken 
CEPT  is  tasked  to  harmonise  frequencies  and  authorisation  conditions  for 
UMTS 
m  c a se  w o r'<  Dv  CEPT  or  the  implementation  by  Member  States  is  not 
satisfactory,  further  action  at Community  level shall  be taken 

45 

46 

47 

48 

49 

Council Directive 87/372/EEC on the frequency  bands to be reserved for the co-ordinated introduction of public 
pan-European  cellular  digital  land-based  mobile  communications  in  the  European  Community,  OJ  L196/85, 
17.07.87. This Directive was adopted in parallel with: Council Recommendation 87/371/EEC of 25 June 1987 on 
the co-ordinated  introduction  of  public  pan-European  cellular  digital  land-based  mobile  communications  in the 
European Community, OJ L196/81,17.07.87. 

Council  Directive  90/544/EEC  of  9  October  1993  on  the  frequency  bands  designated  for  the  co-ordinated 
introduction  of  pan-European  land-based  public  radio  paging  in  the  Community,  OJ  L310/28,  09.11.90.  This 
Directive  was  adopted  in  parallel  with:  Council  Recommendation  90/543/EEC  of  9  October  1990  on the  co 
ordinated  introduction of public pan-European  land-based  public  radio  paging in the Community, OJ L310/23, 
09.11.90. 

Council  Directive  91/287/EEC  of  7 June  1991  on  the  frequency  bands  to  be  designated  for  the  co-ordinated 
introduction  of  digital  European  cordless  telecommunications  (DECT)  into  the  Community,  OJ  L  144/45, 
08.06.91. This Directive was adopted in parallel with: Council Recommendation 91/288/EEC of 3 June 1991 on 
the  co-ordinated  introduction  of  digital  European  cordless  telecommunications  into  the  Community,  OJ 
L144/476, 08.06.91. 

Decision 710/97/EC of the European Parliament and of the Council on a co-ordinated authorisation approach in 
the field of satellite personal communications services in the Community, OJ L105, 23.04.1997. 

Proposal for a Decision of the European Parliament and the Council on the co-ordinated introduction of a third-
generation  mobile  and wireless  communications  system  (UMTS)  in the  Community,  COM(1998)58, OJ  C131, 
29.04.98. 

Ill 

21 

Annex II 

EU policy on radio spectrum 

Present  practice 

At  operational  level,  the  availability  in  the  European  Community  of  harmonised 
frequency bands is ensured in one of the following ways: 

•  The European Community adopts specific legal measures which require harmonised 

frequency  bands to be made available by the Member States 

This  approach  has  been  used  in the  past  in case  of  GSM, ERMES,  and  DECT. Where 
Member States dp not implement these measures, appropriate action at Community  level 
can be taken. 

•  The Community adopts legal measures for the harmonised introduction of systems 

and refers to CEPT for the harmonisation of required frequency bands 

This  new  methodology  is  being  used  for  S-PCS  and  UMTS  and  allows  for  Community 
action to be taken where Member States do not comply with the measures taken. 

•  The Community partly funds CEPT to carry out the technical work necessary for the 

harmonisation of radio spectrum allocation 

By means of the MoU and framework agreement with CEPT ERC/ERO, the  Commission 
may  entrust  technical  work  to  ERC/ERO  with  the  aim  of  harmonising  radio  spectrum 
allocation.  However,  under this approach, the  members  of  CEPT,  including  the  Member 
States, decide whether to follow-up on the work carried out by ERC/ERO, i.e. by adopting 
radio spectrum  harmonisation measures.  Furthermore,  individual  CEPT members decide 
individually whether or not to implement the measures adopted by CEPT. 

•  CEPT  decides  on  its  own  initiative  whether  to  develop,  adopt,  and  implement 

harmonisation measures 

For all other cases than described above, CEPT itself takes the initiative to achieve radio 
spectrum harmonisation. CEPT recommendations  are always proposed to its 43 member 
countries,  not  to  the  Community  specifically.  Where  CEPT  develops  measures  not 
formally  requested  by  the  Community,  adoption  and  implementation  by  Member  States 
occurs  on  a  voluntary  basis.  Even  where  Community  funding  is  used  to  identify  radio 
spectrum  availability  and  the  scope  for  harmonisation  for  pan-European  services,  no 
formal or legal mechanism exist to ensure adoption of appropriate  measures  by CEPT or 
their implementation by the Member States. 

3. 

Radio  spectrum  assignment  and  licensing 

Main  objective:  application  of  the  rules  according  to  which  users  obtain  and 
regulatory authorities assign radio spectrum 

Frequency assignment is the process where  administrations  authorise  individual  users 
to  use  radio  stations  or to  provide  radio  services  within  identified  frequency  bands. The 
assignment  of 
licensing  of 
radiocommunications  operators  are  governed  by  European  Community  legal  principles, 
including  competition  law.  They  aim  to  establish  a  regulatory  level  playing  field  for  all 
users  of  radio  spectrum  which  is  based  on  open,  objective,  non-discriminatory,  and 
transparent grounds and which supports technological innovation and competition. 

individual  users  and 

radio  spectrum 

the 

to 

IV 

3Z 

Annex II 

Legal base 

ONP Framework 
Directive50 

Commission  Directive 
96/2/EC 

EU policy on radio spectrum 

Radio spectrum  assignment  and  licensing 

• C o n d i t i o ns  regarding  access to and usage of frequencies  should  be objective,  I 

• 

• 

• 

non-discriminatory, transparent, and proportionate to the objective sought 
In  order  to  ensure  effective  use  of  frequencies  and  to  avoid  harmful 
interference. Member States may restrict access to frequencies 
Limiting  the  number  of  licenses  for  mobile  and  personal  communications 
systems  only  allowed  where  radio  frequencies  are  scarce  and  to  ensure 
fulfilment  of  essential  requirements  (i.e.  security  of  network  operation, 
maintenance  of  network  integrity,  interoperability  of  services,  data  protection, 
protection of the environment, town and country planning) 
As soon as frequencies  become available, Member States shall award licenses 
and available frequencies  shall be assigned  in an open, transparent,  and non 
discriminatory  manner 
Efficient use of radio spectrum and effective competition to be ensured 

• 
•  Member  States  shall  not  restrict  the  combination  of  mobile  technologies  or 
systems, in particular where  multi-standard  equipment  is available, and adopt, 
where required, measures to ensure effective competition among competitors 

I

Licensing  Directive51 

•  Access  to  frequencies  to  be  secured  pursuant  to  strictly  defined  procedures 

and deadlines 

»  Frequency licenses can be separated from service authorisations 
• 

The number of licenses  may be limited only to ensure the efficient  use of radio 
frequencies  and  maximise  user  benefits,  develop  competition,  publish  and 
review the limitation decision, invite license applications 
Individual license conditions shall be published and granted through open, non 
discriminatory and transparent procedures within reasonable time limits 

• 

•  Non-discriminatory  charges  may  be  imposed  in  the  granting  of  individual 
licenses  but  this  may  not  negatively  affect  the  development  of  services  and 
competition 

Present 

practice 

Radio  spectrum  assignment  and  licensing 
follows: 

in  the  European  Community 

takes  place  as 

a  The  licensing  of  individual  operators  is  done  at  Member  State  level  but  subject  to 
legal  principles,  notably  the  competition  rules  and  the 

European  Community 
modalities  established  by the  Licensing  Directive 

Member  States  in  principle  have the  choice  to  use  individual  licences  or to accept  general 
authorisations,  but  normally 
licence  for  radio  communication 
systems  and  related  services.  Licensing  conditions  and  assignment  methods  may  vary 
from  Member  State  to  Member  State.  This  applies  to  the  assignment  procedures  as  well 
as to the  licensing  conditions  imposed on applicants.  Pan-European  or global systems  are 
equally  subject  to such  differences. 

impose  an 

individual 

5^  Directive  97/51/EC  of  the  European  Parliament  and  of  the  Council  of  6  October  1997  amending  Council 
Directives  90/387/EEC  and  92/44/EEC  for  the  purpose  of  adaptation  to  a  competitive  environment  in 
telecommunications, OJ L 295/23, 29.10.1997. 

51  Directive 97/13/EC of the European Parliament and of the Council of 10 April 1997 on a common framework for 
general authorisations and individual licenses in the field of telecommunications services, OJ L117/15, 05.05.97. 

73 

Annex II 

EU policy on radio spectrum 

• 

In  most  cases,  a  licence  to  provide  a service  is  coupled  to  the  authorisation  to  use 
radio  spectrum 

Although  legally  possible  according  to  the  Licensing  Directive,  the  separation  of  service 
licenses  and  spectrum  usage authorisation  is not a common  practice. 

•  Where  radio spectrum  is available, it has to  be assigned  upon  request 

This  means  that,  where  radio  spectrum  allocation  measures  have  been  adopted  and 
implemented,  Member  States  should  deal  with  requests  for  radio  spectrum  use  in  a 
responsive  and timely 'manner. 

a  The  assignment  and  use  of  radio  spectrum  should  facilitate  the  development  of 

competition  and maximise the  benefits for  users 

Within  the  specific  national  context  and  in  view  of  market  and  societal  needs,  radio 
spectrum  assignment  mechanisms  should  lead  to  the  most  efficient  use  of  the  radio 
spectrum  through  the  competitive  provision  of  services  so  as to  maximise  the  benefits  for 
users. 

4. 

Radio equipment and standards 

Main  objective:  application  of  the  rules  according 
marketed  and  used 

to  which  radio  equipment  can  be 

Common  frequency  bands  are  required  in  order  to  permit  the  use  of  radio  equipment  in 
different  countries,  to  minimise  co-ordination  problems  at  frontiers  and  to  facilitate  the 
large  production  runs  for  equipment  necessary  to  make  European  industry  competitive  at 
world  markets.  Community  policy  with  respect  to  standards  is  aimed  at  allowing  non 
radio  spectrum  while  ensuring 
discriminatory  and 
interoperability  and  pan-European  provision of services. 

technology-neutral  access 

to 

Political  and  legal  base 

Council  Resolution 90/C 
166/02 

I

Radio equipment  and  standards 

•  Common  frequency  bands  are  required  in  order  to  permit  the  use  of 
equipment  in  different  countries,  to  minimise  co-ordination  problems  at 
frontiers and to facilitate the large production runs for equipment  necessary 
to make European industry competitive on the world market 

•  CEPT to interact closely with ETSI in order to ensure the vital link  between 

frequency planning and standards 

Proposal for an EP and 
Council  Directive on radio 
and telecommunications 

I terminal equipment 

(RTTE)52 

•  Radio equipment can move freely in the European Community 
• 

The introduction of a general framework for the authorisation of use of radio 
equipment 
T ne  a D O|jtjon  of  a prion  market  access  controls  (3rcJ  party  certification);  4 

# 

week advance notification period before putting on the market of equipment 
using non-harmonised frequencies 

•  Member  States  are  required  to  plan  the  use  of  radio  spectrum  in  a 

52  COM(97)257, OJ C248,  14.8.1997. A  Common Position  has been established:  Common Position  (EC) No. 
39/980  of  the  Council  of  08.06.98,  OJ  C227/37,  20.07.98.  The  proposed  Directive  will  replace  Directive 
98/13/EC of the European Parliament and of the Council of 12 February  1998 relating to telecommunications 
terminal equipment and satellite earth station equipment, including the mutual recognition of their conformity, OJ 
L074, 12.03.1998. 

transparent manner 

VI 

_74 

Annex  II 

EU policy  on radio  spectrum 

Present  practice 

The  relation between radio spectrum harmonisation and standards is  governed  in  the 
following ways: 

•  Common European standards for telecommunications  are elaborated in the context 

of ETSI 

The elaboration of common European telecommunications  standards is achieved in ETSI 
(European  Telecommunications  Standards  Institute).  Where  required,  e.g.  when  a 
Community  regulation requires a common technical basis, the European Community  may 
support  ETSI  to  develop  such  standards  and  may  request  CEPT  to  identify  and 
harmonise the necessary radio spectrum. 

a  CEPT and ETSI have established working arrangements 

As  regards  the  relationship  of  radio  spectrum  with  standards,  a  memorandum  of 
understanding governs the co-ordination  between CEPT/ERC and ETSI. ETSI and CEPT 
representatives are mutually involved in the respective work programmes. 

The  free  movement  and  putting  into  service  of  radio  equipment  is  governed  at 
Community level in the following way: 

•  Community legislation will govern the free movement and use of radio equipment 

Radio equipment is covered by the proposed RTTE Directive which will remove regulatory 
barriers  to  the  free  movement  and  use  of  equipment,  whilst  providing  safeguards  for 
Member  States to  protect  the  radio  spectrum.  The  Directive  will  abolish  a priori  market 
access controls and rely on the responsibility  and liability of manufacturers and suppliers, 
whilst Member States will have an increased responsibility for surveillance. Under the new 
regime, the  rendering  of  mandatory  standards  or  national  specifications,  common  in the 
regimes it replaces, will be abolished. 

5. 

The  institutional  framework  for frequency  co-ordination 

Main  objective:  ensuring that the framework for the co-ordination  of radio spectrum 
complies with Community interests and international obligations 

The  main  principle  governing  Community  action  in this  area  has  been  to  pay  particular 
attention to the possibility in certain cases of achieving the objectives set out in the Treaty 
through  international  agreements,  rather  than  via  internal  instruments.  In  other  words, 
when  appropriate  and  effective  action  is  already  taken  at  international  level,  the 
Community  may  abstain  from  adopting  specific  Community  measures.  Following  the 
adoption in the early  1990s of a number of Council Resolutions and Council Conclusions, 
the European Community seeks to ensure that the Member State co-ordination of the use 
of  radio  spectrum  in  the  European  Conference  of  Postal  and  Telecommunications 
administrations  (CEPT)  and  in  the  World  Radiocommunications  Conferences  (WRC)  of 
the International Telecommunication  Union (ITU) comply with Community interests. 

VII 

>( 

Annex II 

EU policy on radio spectrum 

Political 

base 

Framework  for  frequency  co-ordination 

in  Europe 

I  Council Resolution 90/C 

166/0253 

Council  Resolution 92/C 
318/0154 

Council Conclusions of 7 
December 1993 

Resolution 90/C 166/02 
Council Conclusions of 3 

I February  1992 

Council Conclusions of 22 
September 1997 

Present 

practice 

•  Commission  and  Member  States  should  support  the  CEPT  framework, 
including the setting up of ERO (European Radiocommunications Office) 
•  CEPT  should  take  account  of  the  opinions  of  national  frequency  experts, 
telecommunications  organisations,  and  other  service  providers,  industry, 
and users 

•  CEPT to recommend to regulatory  authorities  or to the  Community  suitable 

frequencies for pan-European services 

•  CEPT  to  recommend  to  regulatory  authorities  or  to  the  Community  long-

term requirements for the frequency  spectrum 

•  Commission to give full consideration to the mechanism of  ERC  (European 
Radiocommunications  Committee)  decisions  as  the  primary  method  of 
ensuring  the  provision  of  the  necessary  frequencies  for  new  Europe-wide 
radio services 

•  Confirmation of Council Resolution 92/C 318/01 
•  ERC decision mechanism should be implemented, and 
•  Commission  shall  sign a memorandum  cf  understanding  and a framework 

agreement with ERC/ERO to this end 

European  co-ordination  towards 

ITU/WRC 

«  CEPT to develop common European positions for ITU/WRC 
•  Community co-ordination at WRC will take place only if CEPT  co-ordination 
does not arrive at the agreements necessary  in order to uphold the interests 

• 

of the Community and the Member States 
The  Community  alone  is  able  to  enter  into  external  commitments  at WRC 
as far as the frequency Directives (GSM, DECT, ERMES) are concerned 

•  Confirmation of the Council Conclusions of 3 February 1992 
•  Commission  to  participate  closely  in  and  with  CEPT/CPG,  including  as 
regional 

contacts  with 

countries 

third 

and 

regards 
telecommunications  organisations 

bilateral 

•  Commission to set up industry consultation  mechanism 

With  regard  to  the  European  co-ordination  framework,  the  European  Community  seeks  to 
ensure  compliance  of  the  positions  of  the  Member  States  in  CEPT  and  ITU/WRC  with  legal 
obligations  and agreed  policies  in the following  ways: 

a  The  positions  of  the  Member  States  in  CEPT  and  ITU/WRC  are  subject  to  specific 

political  and  legal objectives to  be achieved  in the  European  Community 

This  procedure  is  followed  in the  case  of  mobile  and  satellite  communications  (i.e.  GSM, 
DECT,  ERMES,  S-PCS  and  UMTS).  Where  the  work  of  CEPT  or  the  implementation  of 
harmonisation  measures  by  Member  States  is  not  satisfactory,  appropriate  action  at 
Community  level can  be taken. 

53 

54 

Council Resolution of 28 June 1990 on the strengthening of Europe-wide co-operation on radio frequencies, in 
particular with regard to services with a pan-European dimension, OJ C166/4, 07.07.90. 

Council  Resolution  of  19  November  1992  on  the  implementation  in  the  Community  of  the  European 
Radiocommunications Committee decisions, OJ C318//1, 04.12.92. 

VIII 

5fc 

Annex  II 

EU policy  on radio  spectrum 

• 

In  the  absence  of  specific  Community  objectives  to  be  achieved,  the  European 
Commission  assesses  on the  basis of technical  information  available  in CEPT and 
ITU/WRC  whether  the  political  and  economic  interests  of  the  Community  are 
safeguarded 

The  Commission  is  counsellor  to  CEPT  and  represents  the  Community  as  observer  in 
ITU/WRC. These bodies address the need for the harmonisation of radio spectrum on the 
basis  of  technical  information.  In  this  process,  the  Member  States'  positions  are  not 
subject to any form of Community  co-ordination  and CEPT and Member  States have the 
final  say  over  whether  or  not  to  support  the  adoption  and  implementation  of  radio 
spectrum  harmonisation  measures.  The  Member  States'  positions  are  generally  not 
subject to any form of Community co-ordination in this process. 

•  The  Community  contributes  to  the  development  by  CEPT  of  radio  spectrum 

harmonisation measures or of European positions for ITU/WRC 

Through  the  memorandum  of  understanding  and  framework  agreement  with  ERC/ERO, 
the Community can financially contribute to the development of appropriate measures and 
positions although it does not have the legal means to enforce decisions to be taken or to 
be  implemented. The  Member  States'  positions  are generally  not subject  to  any  form  of 
Community co-ordination in this process. 

IX 

J/-

Annex III 

List of abbreviations 

ANNEX III 

LIST OF ABBREVIATIONS 

Advance Communications Technology Systems 

European Conference of Postal and Telecommunications 

Administrations 

Conference Preparatory Group of the CEPT 

Digital Enhanced Cordless Communications 

Detailed  Spectrum Investigation 

Digital Video Broadcasting 

European Broadcasting union 

European Common Proposals 

Association of the European Telecommunications and Professional 

Electronics Industry 

European Authorities for Telecommunications  Regulation ? 

European Economic Area 

Earth Observation 

European Radiocommunications Committee of CEPT 

ACTS 

CEPT 

CPG 

DECT 

DSI 

DVB 

EBU 

ECP 

ECTEL 

ECTRA 

EEA 

EO 

ERC 

ERMES 

European Radio Messaging system 

ERO 

ESA 

ETNO 

ETSI 

EC 

EU 

European Radiocommunications Office of CEPT 

European Space Agency 

European Telecommunication Network Operators Association 

European Telecommunications Standardisation Institute 

European Commission 

European Union 

EUMETSAT 

European Meteorological Satellite 

GATS 

GLONASS 

General Agreement of Trade in Services 

Global Orbiting Navigation Satellite System of the Russian 

Federation 

GNSS 

Global Navigation for Satellite Systems 

GMPCS MoU 

Global Mobile Personal Communications Services Memorandum of 

understanding 

GPCS 

Global System for Mobile communications 

?Z 

List of abbreviations 

Annex III 

ICAO 

IMT 

IMO 

IT 

ITA 

ITU 

International Civil Aviation Organisation 

International mobile Telecommunications 

International Maritime Organisation 

Information Technology 

International Technology Agreement 

International Telecommunications Union 

ITURR 

International Telecommunications  Union Radio Regulations 

MoU 

MRA 

MRC 

MSS 

NTFA 

OECD 

ONP 

RACE 

RR 

RTD 

RTTE 

S-PCS 

TENs 

WLL 

WRC 

WTO 

UMTS 

Memorandum of Understanding 

Mutual Recognition Agreement 

Milestone Review Committee 

Mobile Satellite Services 

National Tables of Frequency Allocation 

Organisation of Economic Co-operation and Development 

Open network Provision 

Research and technology development in advanced communications 

in Europe 

Radio Regulations of the ITU 

Research and Technological  Development 

Radio and Telecommunications Terminal Equipment (Directive) 

Satellite Personal Communications Services 

Trans European networks 

Wireless Local Loop 

World Radiocommunications  Conference 

World Trade Organisation 

Universal Mobile Telecommunications System 

^ 

ISSN 0254-1475 

COM(98) 596 final 

DOCUMENTS 

EN 

15  10  16 

Catalogue number  :  CB-CO-98-759-EN-C 

Office  for Official  Publications of the European  Communities 

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