Decision No 128/1999/EC of the European Parliament and of the Council of 14 December 1998 on the coordinated introduction of a third-generation mobile and wireless communications system (UMTS) in the Community
Date: 1998-12-14
Institutions: Council of the European Union, European Parliament
Subjects: Internet, competition, cross-frontier data flow, market access, multimedia, radio telecommunications, satellite, telecommunications, trade licence

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I

(Acts whose publication is obligatory)

DECISION No 128/1999/EC OF THE EUROPEAN PARLIAMENT AND OF
THE COUNCIL

of 14 December 1998

on the coordinated introduction of a third-generation mobile and wireless
communications system (UMTS) in the Community

THE EUROPEAN PARLIAMENT AND THE COUNCIL
OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community and in particular Articles 57, 66 and 100a
thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Having regard to the opinion of the Committee of the
Regions (3),

Acting in accordance with the procedure laid down in
Article 189b of the Treaty (4),

(1) Whereas on 29 May 1997 the Commission
presented to the European Parliament, the Council,
the Economic and Social Committee and the
Committee of the Regions a communication on
the further development of mobile and wireless
communications;

(2) Whereas on 15 October 1997 the Commission
presented a communication on strategy and policy
orientations with regard to the further development
of mobile and wireless communications (UMTS);

(3) Whereas on 1 December 1997 the Council invited
the Commission to submit, by early 1998, a
proposal for a European Parliament and Council
Decision which would enable orientations to be
established on the substance of the issue and facil-

(1) OJ C 131, 29. 4. 1998, p. 9 and OJ C 276, 4. 9. 1998, p. 4.
(2) OJ C 214, 10. 7. 1998, p. 92.
(3) Opinion delivered on 16 September 1998 (OJ C 373, 2. 12.

1998).

(4) Opinion of the European Parliament of 18 June 1998 (OJ C
210, 6. 7. 1998), Council Common Position of 24 September
1998 (OJ C 333, 30. 10. 1998, p. 56) and European Parlia-
ment Decision of 18 November 1998 (OJ C 379, 7. 12. 1998).
Council Decision of 30 November 1998.

itate, within the existing Community legal frame-
work, the early licensing of UMTS services and, if
appropriate and on the basis of the existing alloca-
tion of competences, in respect of coordinated al-
location of
frequencies in the Community and
pan-European roaming; whereas on 29 January
1998 the European Parliament adopted a resolution
expressing its strong support for the Commission’s
communication of 15 October 1997;

(4) Whereas a new generation of innovative systems
needs to be developed for the provision of wireless
wideband multimedia services, including Internet
and other Internet Protocol (I/P) based services, for
the provision of flexible and personalised services
and for the support of high volume data rates, each
combining the use of terrestrial fixed and mobile as
well as satellite components; whereas this Decision
will apply to satellite components without preju-
dice to European Parliament and Council Decision
710/97/EC of 24 March 1997 on a coordinated
authorisation approach in the field of satellite
personal-communication
the
Community (5); whereas there is a need to ensure
rapid market access for seamless, global coverage
and low cost and innovative service offering
through a sufficient level of competition;

services

in

(5) Whereas in 1992 the International Telecommun-
ications Union (ITU) World Administrative Radio
Conference (WARC 92) identified the frequency
spectrum for the development of both the satellite
the Future Public Land
and terrestrial parts of
Mobile Telecommunications System (FPLMTS),
later renamed IMT-2000; whereas, according to
ITU Resolution 212 and to the World Radiocom-
munications Conference in 1995 (WRC 95), the
implementation of the terrestrial element
initial
should take place around the year 2000;

(5) OJ L 105, 23. 4. 1997, p. 4.

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(6) Whereas the concept of Universal Mobile Telecom-
munications System (UMTS)
in the Community
needs to be compatible with the third-generation
mobile system concept called International Mobile
Telecommunications-2000 (IMT 2000) developed
by the ITU at world level on the basis of ITU
Resolution 212;

(7) Whereas mobile and wireless communications are
of strategic importance both for the development
of
the Community telecommunications industry
and the information society as well as for the
economy and employment in the Community as a
whole; whereas on 3 December 1997 the Commis-
sion adopted a Green Paper on the convergence of
the telecommunications, media and information
technology sectors, and the implications for regula-
tion; whereas on the basis of
the consultations
resulting from that Green Paper, the Commission
will take into consideration the impact of conver-
the
gence on UMTS considering,
review of Community telecommunications regula-
tion by 1999;

in particular,

(8) Whereas in order to create a favourable climate for
investment and deployment of UMTS and to allow
the development of Community-wide as well as
pan-European and global services with the widest
possible territorial coverage, early and specific
action at Community level is necessary; whereas
Member States should allow the rapid and coordi-
nated introduction of compatible UMTS networks
and services in the Community on the basis of
internal market principles and pursuant to Euro-
pean standards for UMTS approved or developed
by the European Telecommunications Standards
including in
Institute (ETSI), where available,
particular a common, open and internationally
competitive
whereas
diverging national laws, regulations and adminis-
trative action would hinder or prevent the provision
of Community-wide and global UMTS services and
the free movement of related equipment;

air-interface

standard;

(9) Whereas Community legislation,

including the
competition rules, apply to this sector, in particular:
Commission Directive 96/2/EC of 16 January 1996
amending Directive 90/388/EEC with regard to
mobile and personal communications (1), Commis-
sion Directive 96/19/EC of 13 March 1996
amending Directive 90/388/EEC with regard to the
implementation of
full competition in telecom-
munications markets (2), European Parliament and

Council Directive 97/13/EC of 10 April 1997 on a
common framework for general authorisations and
individual licences in the field of telecommunica-
tions services (3), European Parliament and Council
Directive 97/33/EC of 30 June 1997 on intercon-
nection in telecommunications with regard to
service and interoperability
ensuring universal
through application of
the principles of Open
Network Provision (ONP) (4) and European Parlia-
ment and Council Directive 97/66/EC of 15
December 1997 concerning the processing of
personal data and the protection of privacy in the
telecommunications sector (5); whereas the list of
conditions which may be attached to authorisations
to Directive 97/13/EC is
for UMTS pursuant
without prejudice to measures taken by Member
States in accordance with public interest require-
ments
in particular
Articles 36 and 56, especially in relation to public
security including the investigation of criminal
activities;

recognised by the Treaty,

(10) Whereas organisations providing UMTS networks
or services over those networks should be able to
enter the market without unnecessary constraints
or excessive fees to allow for a dynamic market and
a broad competitive service offering;

(11) Whereas pursuant to Community law, in particular
European Parliament and Council Directive 97/
13/EC and Commission Directive 96/2/EC: firstly,
individual licences should be limited to the estab-
lishment and/or the operation of UMTS networks,
secondly, the number of UMTS licences may be
limited only for reasons of demonstrated lack of
frequency spectrum capacity and thirdly, licences
should be granted on the basis of objective, non-
discriminatory, detailed and proportionate criteria,
regardless of whether or not individual applicants
for licences are existing operators of other systems;

(12) Whereas licences should allow, and Member States
should encourage, transnational roaming in order
to secure Community-wide and pan-European
services; whereas there should be cooperation with
the European Conference of Postal and Telecom-
munications Administrations (CEPT) through the
for Telecommunications
European Committee
Regulatory Affairs (ECTRA) for UMTS; whereas in
particular mandates may be issued when necessary,
to establish a one-stop shopping procedure for
services;

(1) OJ L 20, 26. 1. 1996, p. 59.
(2) OJ L 74, 22. 3. 1996, p. 13.

(3) OJ L 117, 7. 5. 1997, p. 15.
(4) OJ L 199, 26. 7. 1997, p. 32.
(5) OJ L 24, 30. 1. 1998, p. 1.

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(13) Whereas the amount of spectrum made available
will have a direct impact on how competitive the
market will be; whereas estimated demand should
therefore be taken into account when determining
the amount of spectrum to be allocated; whereas
sufficient spectrum must be allocated and cleared
sufficiently in advance to foster a broad competitive
offering of mobile multimedia services;

(18) Whereas

spectrum availability and appropriate
pricing, coverage and quality will be essential
aspects
to the success of UMTS development;
whereas any spectrum pricing method should not
adversely impact on the competitive structure of
the market, and respect the public interest, while
ensuring efficient use of the spectrum as a valuable
resource;

(14) Whereas spectrum allocation is most efficiently
pursued in the context of the CEPT by the Euro-
(ERC);
pean Radiocommunications Committee
whereas it should be ensured that appropriate and
timely regulatory measures are taken to achieve the
implementation in the Community of ERC deci-
sions if necessary; whereas Member States should
be encouraged to provide the Commission with
regular information as to the implementation of
ERC
complementary
Community action may be required to ensure the
timely implementation of CEPT decisions within
Member States;

measures;

whereas

(15) Whereas sufficient spectrum will be necessary to
foster the development of a market with a broad
competitive offering of mobile multimedia services;
whereas on 30 June 1997 the ERC adopted
Decision ERC/DEC/(97)07 on the frequency bands
for the introduction of UMTS which entered into
force on 1 October 1997;

(16) Whereas this ERC decision has designated the
frequency bands 1900-1980 MHz, 2010-2025 MHz
and 2110-2170 MHz to terrestrial UMTS applica-
tions, and accommodates UMTS satellite compo-
nent applications within the bands 1980-2010 MHz
and 2170-2200 MHz; whereas sufficient spectrum
must be allocated within the bands identified by
WARC 92 according to the increasing needs for
this spectrum before UMTS services are commer-
cially deployed; whereas additional frequency spec-
trum may become necessary within a few years;

(17) Whereas at ITU level the review of spectrum and
regulatory issues relating to UMTS and the facilita-
tion of multimode terminal operation and world-
wide roaming of IMT-2000 have been included in
the next WRC agenda in order to identify addi-
tional
spectrum to satisfy market
demand by 2005 to 2010; whereas therefore Euro-
pean common positions need to be developed and
promoted at global level with the participation of
all parties interested;

frequency

(19) Whereas specific cooperation among operators may
be necessary to provide coverage of less-populated
this Decision does not prevent
areas; whereas
Member States from imposing appropriate forms of
national roaming between authorised operators on
their
territory to the extent needed to ensure
balanced and non-discriminatory competition;

(20) Whereas a proposal was presented by the Commis-
sion for a Council and European Parliament
Directive on connected telecommunications equip-
ment and the mutual recognition of the conformity
of equipment to replace European Parliament and
Council Directive 98/13/EC of 12 February 1998
relating to telecommunications terminal equip-
earth station equipment,
ment
including
their
conformity (1); whereas appropriate harmonised
standards developed by ETSI and recognised under
Directive 98/13/EC will ensure free movement of
terminal equipment including for UMTS;

and satellite

the mutual

recognition

of

(21) Whereas

such

second

whereas

generation;

the second generation cellular digital
mobile communications systems were originally
defined in Council Directive 87/372/EEC of 25
June 1987 on the frequency bands to be reserved
for the coordinated introduction of public pan-
European cellular
land-based mobile
digital
communications in the Community (2) as oper-
ating in the 900 MHz bands; whereas DCS-1800
has to be considered as part of the GSM family and
the
of
Community should build on the success of the
current generation of mobile digital
technology
including GSM both in Europe and in the world,
taking into consideration interworking between
UMTS and second-generation systems; whereas
there should be, pursuant to Community law, no
discrimination between GSM operators and new
entrants in UMTS markets; whereas UMTS should
develop in one seamless environment including
full roaming with GSM as well as between the
terrestrial
and satellite components of UMTS
networks, which is likely to make hybrid terminals
such as dual mode/band GSM/UMTS terminals and
terrestrial/satellite terminals necessary;

(1) OJ L 74, 12. 3. 1998, p. 1.
(2) OJ L 196, 17. 7. 1987, p. 85.

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(22) Whereas it is important for UMTS networks to
provide secure and reliable communications and
ensure high level security,
including protection
against fraudulent use, at least commensurate with
that of second-generation mobile communications;

(23) Whereas UMTS aims at a global market; whereas a
common European UMTS standard should be
adopted and proposed as a member of the ‘IMT
2000 family concept' developed by the ITU in
order to increase the chances of UMTS being
adopted in markets outside Europe; whereas the
deadlines set by the ITU therefore need to be met
within the Community and the final ITU technical
requirements to be taken into account;

(24) Whereas while voluntary application of standards
remains the general rule, recourse to mandatory
standards may be required for interfaces and situa-
tions where necessary to ensure interoperability
and facilitate roaming of mobile networks and
services; whereas harmonised standards are adopted
by standardisation bodies such as ETSI, which
facilitates regulatory action;

(25) Whereas in 1995 the Commission granted to ETSI
a general standardisation mandate related to UMTS
pursuant to Council Directive 83/189/EEC of 28
March 1983 laying down a procedure for the provi-
sion of
technical
information in the field of
standards and regulations (1) and Council Decision
87/95/EEC of 22 December 1986 on standardisa-
tion in the field of information technology and
telecommunications (2),
and may issue further
mandates in the future;

(26) Whereas social and societal effects should be taken
into account in the transition towards the wireless
information society; whereas development of
UMTS and relevant standards should be coordi-
nated with related efforts, such as the development
of a Community-wide information society, support
of training on UMTS related technologies, access
for elderly and disabled persons and research into
the possible health hazards of mobile communica-
tions;

(1) OJ L 109, 26. 4. 1983, p. 8. Directive replaced by Directive

98/34/EC (OJ L 204, 21. 7. 1998, p. 37).

(2) OJ L 36, 7. 2. 1987, p. 31.

(27) Whereas Community undertakings should benefit
fully from international trade agreements such as
agreements signed within the World Trade Organ-
isation (WTO), including those relating to tariffs,
such as in the Information Technology Agreement,
and from the Istanbul Convention on the elimina-
tion of customs duties on personal effects and
professional equipment and have effective market
access under the specific terms and conditions,
treatment, binding on the
including national
member countries of
the
the WTO; whereas
Commission may take all necessary actions to
implement international agreements; whereas these
may need to be supplemented by specific bilateral
or multilateral agreements and negotiations which
the Commission may start on the basis of mandates
from the Council;

(28) Whereas

in implementing this Decision,

the
Commission should be assisted by the Licensing
Committee established by Directive 97/13/EC;
whereas
this Decision the
Commission, assisted by the committee, should
cooperate closely with relevant outside bodies,

in implementing

HAVE ADOPTED THIS DECISION:

Article 1

Purpose

The aim of this Decision shall be to facilitate the rapid
and coordinated introduction of compatible UMTS
networks and services in the Community on the basis of
internal market principles
and in accordance with
commercial demand.

Article 2

Definition

For the purpose of this Decision, ‘Universal mobile tele-
communications system (UMTS)' shall mean a third-
generation mobile and wireless communications system
capable of supporting in particular innovative multimedia
services, beyond the capability of
second generation
systems such as GSM, and capable of combining the use
of terrestrial and satellite components. This system shall
at
supporting the characteristics
least be capable of
referred to in Annex I.

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Article 3

Coordinated authorisation approach

2. Member States may where necessary take action, in
accordance with Community law, to ensure the coverage
of less-populated areas.

1. Member States shall take all actions necessary in
order to allow, in accordance with Article 1 of Directive
97/13/EC, the coordinated and progressive introduction
of the UMTS services on their territory by 1 January 2002
at the latest and in particular shall establish an author-
isation system for UMTS no later than 1 January 2000.

2. Member States shall be granted on request an addi-
tional implementation period of up to 12 months beyond
the dates referred to in paragraph 1 for establishing an
authorisation system and the introduction of UMTS
services, to the extent justifiable by exceptional technical
difficulties in achieving the necessary adjustments in their
frequency plan. Such a request must be filed before 1
January 2000. The Commission shall assess such requests
and take a reasoned decision within a period of three
months. Any information provided shall be made avail-
able to any interested party on demand having regard to
legitimate interests in the protection of business and
security secrets.

3. When preparing and applying their authorisation
systems, Member States shall ensure, in compliance with
Community legislation, that the provision of UMTS is
organised:

— in frequency bands which are harmonised by CEPT in
accordance with the procedure laid down in Article 5,

— pursuant to European standards for UMTS approved
or developed by ETSI, where available, including in
common, open and internationally
particular
competitive air-interface standard. Member States
shall ensure that licences allow transnational roaming
in the Community.

a

in line with efficient use of

4. Given that,
radio
frequencies, it may be necessary to limit the number of
UMTS systems authorised in Member States, if it is estab-
lished in accordance with the procedure laid down in
Article 17 of Directive 97/13/EC and in conjunction with
CEPT, that potential types of systems are incompatible,
Member States shall coordinate their approach with a
view to authorising compatible types of UMTS systems in
the Community.

Article 5

Cooperation with CEPT

The Commission shall,

1.
in accordance with the
procedure laid down in Article 16 of Directive 97/13/EC
give CEPT/ERC and CEPT/ECTRA mandates, inter alia,
to harmonise frequency use. Those mandates shall define
the tasks to be performed and lay down a timetable.

The timetable for the first mandates is that set out in

2.
Annex II.

the mandates,

it shall be
3. On the completion of
decided in accordance with the procedure laid down in
Article 17 of Directive 97/13/EC whether the result of the
work done pursuant
to the mandates shall be made
applicable in the Community.

4. Notwithstanding paragraph 3, if the Commission or
any Member State considers that work done pursuant to
the mandate given to the CEPT/ECTRA or CEPT/ERC is
not progressing satisfactorily having regard to the time-
table laid down, it may refer the matter to the Licensing
Committee, which shall act in accordance with the proce-
dure laid down in Article 17 of Directive 97/13/EC.

Article 6

Cooperation with ETSI

The Commission shall take all necessary measures, where
to promote a
appropriate in cooperation with ETSI,
common and open standard for the provision of compat-
ible UMTS services throughout Europe,
in accordance
with market requirements, taking into account the need
to present a common standard to the ITU as an option for
the worldwide ITU IMT 2000 recommendation.

Article 4

Roaming rights and obligations

Article 7

The committee

States

organisations
1. Member
providing UMTS networks to negotiate among themselves
cross-border
to ensure seamless
roaming agreements
Community-wide service coverage.

encourage

shall

In the implementation of this Decision the Commission
shall be assisted by the Licensing Committee set up by
Article 14 of Directive 97/13/EC.

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Article 8

Exchange of information

Article 11

Confidentiality

The Commission shall

1.
inform the
the outcome of consultations with the
committee of
representatives of organisations providing telecommuni-
cations services or networks, users, consumers, manufac-
turers and trade unions.

regularly

taking into account

The committee shall,

the
2.
Community’s telecommunications policy, encourage the
exchange of information between the Member States and
the Commission on the situation and the development of
regulatory activities regarding the authorisation of UMTS
services.

Article 9

International aspects

1.
The Commission shall take all necessary measures to
facilitate the introduction of UMTS services and the free
circulation of UMTS equipment in third countries.

For this purpose, the Commission shall seek the
2.
implementation of international agreements applicable to
UMTS, and shall,
in particular and where necessary,
submit proposals to the Council for appropriate mandates
for the negotiation of bilateral and multilateral agree-
ments with third countries and international organ-
isations. The Council shall decide by qualified majority.

3. Measures taken pursuant
to this Article shall be
without prejudice to the Community’s and Member
international
States’ obligations pursuant
agreements.

to relevant

Article 10

Notification

The provisions of Article 20 of Directive 97/13/EC shall
apply to information pursuant to this Decision.

Article 12

Report

The Commission shall keep developments in the field of
UMTS under review and report to the European Parlia-
ment and to the Council within two years on the effec-
tiveness of action taken pursuant to this Decision.

Article 13

Implementation

Member States shall take all measures necessary, by law or
administrative action, for the measures provided for in, or
agreed on pursuant to, this Decision to be implemented.

Article 14

Duration

This Decision shall enter into force on the day of its
publication in the Official Journal of the European
Communities and shall remain in force for four years after
that date.

Article 15

Addressees

This Decision is addressed to the Member States.

Done at Brussels, 14 December 1998.

Member States shall give the Commission such informa-
tion as it may require for the purpose of verifying the
implementation of this Decision.

For the European Parliament

For the Council

The President
J. M. GIL-ROBLES

The President
W. MOLTERER

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ANNEX I

CHARACTERISTICS WHICH UMTS IS TO BE CAPABLE OF SUPPORTING

System capabilities needed to accommodate service features

1. Multimedia capability; full mobility and low mobility applications in different geographical environments

beyond the capability of the second-generation systems such as GSM.

2. Efficient access to the Internet, Intranets and other Internet Protocol (I/P) based services.

3. High-quality speech transmission commensurate with that of fixed networks.

4. Service portability across distinct UMTS environments where appropriate (e.g. public/private/business;

fixed/mobile).

5. Operation in one seamless environment including full roaming with GSM as well as between the terrestrial

and satellite components of UMTS networks.

Radio access networks

— new terrestrial air interface for access to all services including to packet data based services, supporting
asymmetric traffic and allowing for band width/data rate on demand in harmonised frequency bands,

— good overall spectral efficiency including the use of paired and unpaired frequency.

Core network

— call handling, service control and location and mobility management including full roaming functionality
based on an evolution of existing core network systems, for example on an evolved GSM core network,
taking the convergence between mobile/fixed networks into account.

ANNEX II

TIMETABLE

From February 1999 issue mandates to CEPT on further spectrum allocation including availability of
additional spectrum beyond WARC-92 FPLMTS bands for UMTS.

From February 1999 issue mandates to CEPT to establish one-stop-shopping procedure for services where
necessary.