Proposal for a Directive of the European Parliament and of the Council on access to, and interconnection of, electronic communications networks and associated facilities
Date: 2000-07-12
Institutions: European Commission
Subjects: approximation of laws, high-definition television, new technology, telecommunications, transmission network

19.12.2000

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Official Journal of the European Communities

C 365 E/215

Proposal for a Directive of the European Parliament and of the Council on access to, and inter-
connection of, electronic communications networks and associated facilities

(2000/C 365 E/16)

(Text with EEA relevance)

COM(2000) 384 final (cid:16) 2000/0186(COD)

(Submitted by the Commission on 25 August 2000)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of
Committee,

the Economic and Social

Having regard to the opinion of the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty,

Whereas:

States under Directive

(1) Directive (. . ./. . ./EC of the European Parliament and of
the Council of . . . on a common regulatory framework
for electronic communications networks and services) lays
down the objectives of a regulatory framework to cover
electronic communications networks and services in the
Community,
including fixed and mobile telecommuni-
cations networks, cable television networks, networks
used for terrestrial broadcasting, satellite networks and
Internet networks, whether used for voice, fax, data or
images. Such networks may have been authorised by
the
Member
European Parliament and of the Council of . . . on the
authorisation of electronic
communications networks
and services) or have been authorised under previous
regulatory measures. The provisions of
this Directive
apply to those networks that are used for the commercial
provision of publicly available electronic communications
services or for transmission of broadcasting signals. This
Directive covers access and interconnection arrangements
between service suppliers. It does not apply to networks
services
used for
available only to a specific end-user or to a closed user
group, nor does it deal with access for end-users or others
who are not supplying publicly available services.

the provision of

communications

(. . ./. . ./EC of

(2) The term 8access9 has a wide range of meanings, and it is
therefore necessary to define precisely how that term is
used in this Directive, without prejudice to how it may be
used in other Community measures. The term 8operator9

implies control of the relevant network or facilities, but
does not imply ownership; a network operator may own
the underlying network or facilities or may rent some or
all of them.

(3) Directive 95/47/EC of the European Parliament and of the
Council of 24 October 1995 on the use of standards for
the transmission of television signals (1) did not mandate
any specific digital
television transmission system or
service requirement, and this opened an opportunity for
the market actors to take the initiative and develop
suitable systems. Through the Digital Video Broadcasting
Group, European market actors have developed a family
of television transmission systems that have been adopted
the world. These trans-
by broadcasters
missions
the
European Telecommunications Standards Institute (ETSI)
International Telecommunications
and have become
Union Recommendations.
In relation to wide-screen
digital television, the 16:9 aspect ratio is the reference
format
and
programmes, and is now established in Member States’
markets as a result of Council Decision 93/424/EEC of
22 July 1993 on an action plan for the introduction of
advanced television services in Europe (2).

throughout
have

been standardised

for wide-format

television

services

systems

by

(4) In an open and competitive market, there should be no
restrictions that prevent undertakings from negotiating
access and interconnection arrangements between them-
selves, in particular on cross border agreements, subject to
the competition rules of the Treaty.
In markets where
in negotiating
there continue to be large differences
power between undertakings, and where some under-
takings rely on infrastructure provided by others for
delivery of their services, it is appropriate to establish a
framework to ensure that the market functions effectively.
National regulatory authorities should have the power to
secure, where commercial negotiation fails, adequate
access
interoperability of
services in the interest of end-users. This would be the
case for example if network operators were to unreas-
onably restrict end-user choice for access to Internet
portals and services. The use of ex-ante rules by national
regulatory authorities should be limited to those areas
where ex-post application of the remedies available under
competition law cannot achieve the same results in the
same time-scale.

interconnection and

and

(1) OJ L 281, 23.11.1995, p. 51.
(2) OJ L 196, 5.8.1993, p. 48.

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(5) National

legal or administrative measures that link the
terms and conditions for access or interconnection to
the activities of the party seeking interconnection, and
specifically to the degree of its investment in network
infrastructure, and not to the interconnection or access
services provided, may cause market distortion and may
therefore not be compatible with competition rules.
In
any case national regulatory authorities should take into
account the case-law of the Court of Justice and Court of
First Instance of the European Communities and may not
confirm pricing practices or prices contrary to Article
81(1) or Article 82 of the Treaty.

(6) Network operators who control access

to their own
customers do so on the basis of unique numbers or
addresses from a published numbering or addressing
range. Other network operators need to be able to
deliver traffic to those customers, and so need to be
able to interconnect directly or indirectly to each other.
The existing rights and obligations to negotiate intercon-
nection should therefore be maintained. It is also appro-
priate to maintain the obligations formerly laid down in
Directive 95/47/EC requiring all electronic communi-
cations networks used for
the distribution of digital
television services to be capable of distributing wide-
screen television services and programmes, so that users
are able to receive such programmes in the format in
which they were transmitted.

(7) Directive

95/47/EC provided

an
the nascent digital

regulatory
initial
framework for
television industry
which should be maintained, including in particular the
obligation to provide conditional access on fair, reasonable
and non-discriminatory terms. Technological and market
developments make it necessary to review these obli-
gations on a regular basis,
in particular to determine
whether there is justification for extending obligations to
new gateways,
such as electronic programme guides
(EPGs) and applications program interfaces (APIs) for the
benefit of European citizens.

for

access

(8) In order to ensure continuity of existing agreements and
it is necessary to ensure that
to avoid a legal vacuum,
obligations
and interconnection imposed
under Articles 4, 6, 7, 8, 11, 12 and 14 of Directive
97/33/EC of
the
the European Parliament
Council of 30 June 1997 on interconnection in telecom-
munications with regard to ensuring universal service and
interoperability through application of the principles of
Open Network Provision (ONP) (1), as amended by
Directive 98/61/EC (2), obligations on special
access

and of

as

last

imposed under Article 16 of Directive 98/10/EC of the
European Parliament and of the Council of 26 February
1998 on the application of open network provision (ONP)
to voice telephony and on universal service for telecom-
munications in a competitive environment (3), and obli-
gations concerning the provision of
leased line trans-
mission capacity under Council Directive 92/44/EEC of
5 June 1992 on the application of open network
provision to leased lines (4),
amended by
Commission Decision 98/80/EC (5), are initially carried
over into the new regulatory framework, but are subject
to immediate review in the light of prevailing market
conditions. Such a review should also extend to those
organisations covered by Regulation (EC) No . . ./. . . of
the European Parliament and of the Council of . . . on
unbundled access to the local
loop. The review should
be carried out using an economic market analysis based
on competition law methodology. The aim is to reduce
ex-ante sector-specific rules progressively as competition in
the market develops. However, the procedure also takes
account of the possibility of new bottlenecks arising as a
result of technological development, which may require
ex-ante regulation, for example in the area of broadband
access networks. It may well be the case that competition
develops at different speeds in different market segments
and in different Member States, and national regulatory
authorities should be able to relax regulatory obligations
in those markets where competition is delivering the
desired results. In order to ensure that market players in
similar circumstances are treated in similar ways
in
different Member States, the Commission should be able
to ensure harmonised application of the provisions of this
Directive. The Community and its Member States have
taken commitments on interconnection of telecommuni-
cations networks in the context of
the World Trade
Organisation agreement on basic telecommunications
that need to be respected.

transparency,

non-discrimination,

(9) Directive 97/33/EC laid down a range of obligations to be
imposed on undertakings with significant market power,
namely
accounting
separation, access, and price control, including cost orien-
tation. This range of possible obligations should be main-
tained but, in addition, they should be established as a set
of maximum obligations that can be applied to under-
takings, in order to avoid over-regulation. Exceptionally,
in order to comply with international commitments or
Community law it may be appropriate to impose obli-
interconnection on all market
gations
players, as is currently the case for conditional access
systems for digital television services. In all cases, ex-ante
regulation is only justified where the remedies available
under competition rules cannot achieve the desired results
as quickly.

for access or

(1) OJ L 199, 26.7.1997, p. 32.
(2) OJ L 268, 3.10.1998, p. 37.

(3) OJ L 101, 1.4.1998, p. 24.
(4) OJ L 165, 19.6.1992, p. 27.
(5) OJ L 14, 20.1.1998, p. 27.

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prices,

including
avoid disputes

(10) Transparency of terms and conditions for access and inter-
up
connection,
negotiation,
to
market players that a service is not being provided on
discriminatory terms. Openness and transparency of
technical
in
ensuring interoperability.

interfaces can be particularly important

to
speed
confidence

serve
and give

(11) The principle of non-discrimination ensures that under-
takings with market power do not distort competition,
in particular where they are vertically integrated under-
takings that supply services to competitors with whom
they compete on downstream markets.

(12) Accounting separation allows internal price transfers to be
rendered visible, and allows national regulatory authorities
to check compliance with obligations for non-discrimi-
nation where applicable. In this regard the Commission
published Recommendation 98/322/EC of 8 April 1998
on interconnection in a liberalised telecommunications
market
(Part 2 E accounting separation and cost
accounting) (1).

(13) Mandating access

to network infrastructure

can be
increasing competition, but
justified as a means of
national regulatory authorities need to balance the rights
of an infrastructure owner to exploit its infrastructure for
its own benefit, and the rights of other service providers
to access facilities that are essential for the provision of
competing services. The imposition by national regulatory
authorities of mandated access that increases competition
in the short
for
in alternative facilities that will
competitors to invest
secure more
term. The
long
Commission has published a Notice on the application
of the competition rules to access agreements in the tele-
communications sector (2), which addresses these issues.

competition in the

term should not

reduce incentives

for

carrier

reveals

(14) Price control may be necessary when market analysis in a
particular market
inefficient competition. The
regulatory intervention may be relatively light, such as
an obligation that prices
selection are
reasonable as laid down in Directive 97/33/EC, or much
heavier such as an obligation that prices are cost oriented
those prices where
justification for
to provide full
to prevent
strong
sufficiently
competition is not
excessive pricing. In particular, operators with significant
market power should avoid a price squeeze whereby the
difference between their retail prices and the intercon-
nection prices charged to competitors who provide
similar retail services is not adequate to ensure sustainable
In its Recommendation 98/195/EC of 8
competition.

January 1998 on interconnection in a liberalised telecom-
munications market (Part 1 E interconnection pricing) (3),
the Commission recommended the use of
long-run
average incremental costs as the basis for interconnection
prices in the Community that serves to promote efficiency
and sustainable competition.

(15) Publication of information by Member States will ensure
entrants
that market players
understand their rights and obligations, and know where
to find the relevant detailed information. Publication in
the National Gazette helps interested parties in other
Member States to find the relevant information.

and potential market

(16) In order

correct

to determine

application of
the
Community law, the Commission needs to know which
undertakings have been designated as having significant
market power and what obligations have been placed
upon market players by national regulatory authorities.
In addition to national publication of this information, it
is therefore necessary for Member States to send this
information to the Commission.

(17) Given the pace of technological and market developments,
the implementation of this Directive should be reviewed
within three years of its entry into force to determine if it
is meeting its objectives.

(18) Since the measures necessary for the implementation of
this Directive are measures of general scope within the
meaning of Article 2 of Council Decision 1999/468/EC of
28 June 1999 laying down the procedures for the exercise
of implementing powers conferred on the Commission (4),
they should be adopted by use of the regulatory procedure
provided for in Article 5 of that Decision,

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I

SCOPE, AIM AND DEFINITIONS

Article 1

Scope and aim

1. Within the framework set out in Directive (on a common
regulatory framework for electronic communications networks
this Directive harmonises the way in which
and services),
Member States regulate access to, and interconnection of, elec-
tronic communications networks and associated facilities. The
aim is to establish a regulatory framework, in accordance with
internal market principles, for the market between suppliers of
in sustainable
that will
networks
competition, interoperability of services and consumer benefits.

services

result

and

(1) OJ L 141, 13.5.1998, p. 6.
(2) OJ C 265, 22.8.1998, p. 2.

(3) OJ L 73, 12.3.1998, p. 42.
(4) OJ L 184, 17.7.1999, p. 23.

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The Directive establishes rights and obligations for under-
2.
takings owning or operating public communications networks
and associated facilities, and undertakings seeking intercon-
nection and/or access to those networks or associated facilities.
It sets out objectives for national regulatory authorities with
regard to network access and interconnection, and lays down
procedures to ensure that obligations imposed by national
regulatory authorities are reviewed and where appropriate
withdrawn once the desired objectives have been achieved.

Article 2

Definitions

The definitions
framework for
services) shall apply, where relevant.

in Directive
electronic

(on a

communications networks

common regulatory
and

The following definitions shall also apply:

(a) 8access9 means the making available of

for

inter alia: access

facilities and/or
services, to another undertaking, under defined conditions,
the
on either an exclusive or non-exclusive basis,
purpose of providing electronic communications services.
It covers
to network elements and
associated facilities and services, which may involve the
connection of equipment, by wire or wireless means;
access to physical infrastructure including buildings, ducts
and masts; access to software systems including operational
support systems; access to number translation or systems
offering equivalent functionality; access to mobile networks,
in particular for
roaming; access to conditional access
systems for digital television services. Interconnection is a
specific
implemented between public
network operators. Access in this Directive does not refer
to access by end-users;

type of

access

(b) 8interconnection9 means the physical and logical linking of
public electronic communications networks used by the
same or a different undertaking in order to allow the
users of one undertaking to communicate with users of
the same or another undertaking, or to access services
provided by
Services may be
provided by the parties involved or other parties who
have access to the network;

another undertaking.

(c) 8operator9 means an undertaking providing, operating or
controlling a publicly available electronic communications
network or an associated facility such as a conditional
access system, by means of which it can restrict or deny
service providers’ access to the end-user or the end-user’s
choice of services;

(d) 8wide-screen digital television service9 means a television
service that consists wholly or partially of programmes

produced and edited to be displayed in a full-height wide-
screen format using anamorphic expansion. The 16:9
format is the reference format for wide-screen television
services;

(e) 8end-user9 means a user not providing publicly available

electronic communications networks or services.

CHAPTER II

GENERAL FRAMEWORK FOR REGULATING ACCESS AND
INTERCONNECTION

Article 3

General framework for access and interconnection

1. Member States shall ensure that there are no restrictions
which prevent undertakings in the same Member State or in
different Member States from negotiating between themselves
agreements on technical and commercial arrangements for
access
with
Community law. The undertaking requesting access or inter-
connection does not need to be authorised to operate in the
Member State where access or interconnection is requested,
where it is not providing services in that Member State.

interconnection,

accordance

and/or

in

2. Without prejudice to Article 26 of Directive (on universal
service and users’ rights relating to electronic communications
networks and services), Member States shall not maintain legal
or other administrative measures obliging operators, when
granting network access or interconnection, to offer different
terms and conditions to different undertakings for the same
services, and/or imposing obligations that are not related to
the actual access and interconnection services provided.

Article 4

Rights and obligations for undertakings

to

All

operate

undertakings

authorised
for

electronic
1.
the provision of publicly
communications networks
shall have a
available electronic communications
right and, when requested by other undertakings so authorised,
an obligation to negotiate interconnection with each other for
the purpose of providing the services in question, in order to
ensure provision and interoperability of services throughout
the Community.

services

Electronic

communications networks used

the
2.
distribution of digital television services shall be capable of
distributing wide-screen television services and programmes.
Network operators that receive and re-distribute wide-screen
television services or programmes shall maintain that wide-
screen format.

for

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3. Without prejudice to Article 11 of Directive on (author-
isation of electronic communications networks and services),
national regulatory authorities shall ensure that undertakings
that acquire information from another undertaking during the
process of negotiating access or interconnection arrangements
use that information solely for the purpose for which it was
supplied and respect at all
the confidentiality of
information transmitted or stored. The information shall not
in particular other
be passed on to any other party,
for whom such
departments,
information could provide a competitive advantage.

subsidiaries or partners,

times

Article 5

Powers and responsibilities of

the national regulatory

authorities with regard to access and interconnection

National regulatory authorities shall, acting in pursuit of
1.
the objectives set out in Article 7 of Directive (on a common
regulatory framework for electronic communications networks
and services), encourage and secure adequate network access
and interconnection, and interoperability of services, exercising
efficiency,
their
sustainable competition, and gives the maximum benefit to
end-users.

responsibility in a way that promotes

2. Member States shall ensure that national regulatory auth-
orities are empowered to impose the obligations identified in
Articles 6 to 13 of this Directive on operators that have been
designated as having significant market power in a relevant
In the absence of agreement between undertakings
market.
on access and interconnection arrangements, Member States
is
shall
empowered to intervene at
the
parties involved or at its own initiative, taking account of the
policy objectives and procedures included in Articles 6, 7 and
13 to 18 of Directive (on a common regulatory framework for
electronic communications networks and services).

authority
the request of either of

the national

regulatory

ensure

that

CHAPTER III

OBLIGATIONS ON OPERATORS AND MARKET REVIEW
PROCEDURES

Article 6

Conditional access systems and other associated facilities

1. Member States shall ensure that, in relation to conditional
access to digital television services broadcast to viewers in the
Community,
the
conditions laid down in Part I of the Annex apply.

irrespective of

the means of

transmission,

Conditions relating to access to other associated facilities
the Annex may be adopted in

2.
referred to in Part
accordance with the procedure referred to in Article 14(2).

II of

3.
In the light of market and technological developments,
the Annex may be amended in accordance with the procedure
referred to in Article 14(2).

Article 7

Review of former obligations for access and intercon-
nection

1. Member States shall maintain all obligations on under-
takings providing publicly available electronic communications
networks concerning access and interconnection that were in
force prior to the date of entry into force of this Directive
under Articles 4, 6, 7, 8, 11, 12 and 14 of Directive
97/33/EC, Article 16 of Directive 98/10/EC, Articles 7 and 8
of Directive 92/44/EC and Article 3 of Regulation (on
unbundled access to the local loop), until such time as these
obligations have been reviewed and a determination made in
accordance with paragraph 3.

2.
The relevant markets for the obligations referred to in
paragraph 1 will be included in the initial Decision on
Relevant Product and Service Markets to be published by the
Commission in accordance with the procedure laid down in
Article 14 of Directive (on a common regulatory framework for
electronic communications networks and services).

3. Member States shall ensure that, immediately following
the entry into force of
this Directive, and periodically
thereafter, national regulatory authorities undertake a market
analysis, in accordance with the procedure laid down in Article
14 of Directive (on a common regulatory framework for elec-
tronic communications networks and services) to determine
whether to maintain, amend or withdraw these obligations.
An appropriate period of notice shall be given to parties
affected by such amendment or withdrawal of obligations.

Article 8

Imposition, amendment or withdrawal of obligations

1. Where an operator is deemed to have significant market
power on a specific market as a result of a market analysis
carried out in accordance with Article 14 of Directive (on a
common regulatory framework for electronic communications
networks and services), national regulatory authorities shall
impose one or more of the obligations set out in Articles 9
to 13 of
in order to avoid
distortions of competition. The specific obligation(s) imposed
shall be based on the nature of problem identified.

this Directive as appropriate,

2.
National regulatory authorities may, without prejudice to
including
the provisions of Article 6,
operators other than those with significant market power, the
obligations set out in Article 9 to 13 in relation to intercon-
nection, in order to comply with international commitments.

impose on operators,

Exceptionally, with the prior agreement of the Commission,
national regulatory authorities may impose on operators with
significant market power obligations for access or intercon-
nection that go beyond those set out in Articles 9 to 13 of
this Directive, provided that all such obligations are justified in
the light of
this
Directive and in Article 7 of Directive (on a common regu-
latory framework for electronic communications networks and
services), and are proportionate to the aim pursued.

the objectives laid down in Article 1 of

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regulatory

authorities

In relation to the first subparagraph of paragraph 2,
3.
national
to
impose, modify or withdraw obligations on market players to
the Commission, in accordance with the procedures in Article
(3) and (4) of Directive on (a common regulatory
6(2),
framework for
and
services).

communications networks

shall notify decisions

electronic

company

integrated

In particular, a national regulatory authority may require a
vertically
its
wholesale prices and its internal transfer prices, in situations
where a market analysis indicates that the operator concerned
to other service
facilities that are essential
provides input
providers, while competing itself on the same downstream
market.

transparent

to make

Article 9

Obligation of transparency

National regulatory authorities may, in accordance with
1.
the provisions of Article 8, impose obligations for transparency
in relation to interconnection and/or network access, requiring
operators to make publicly available specified information, such
as technical specifications, network characteristics, terms and
conditions for supply and use, and prices.

national

In particular, where an operator has obligations of
2.
non-discrimination,
authorities may
require that operator to publish a reference offer, sufficiently
unbundled, giving a description of
the relevant offerings
broken down into components according to market needs,
and the associated terms and conditions including prices.

regulatory

2.
To facilitate the verification of compliance with obli-
gations of transparency, national regulatory authorities shall
have the power to require that accounting records, including
data on revenues received from third parties, are provided on
regulatory authorities may publish such
request. National
information as would contribute to an open and competitive
market, while respecting national and Community rules on
commercial confidentiality.

Article 12

Obligations of access to, and use of, specific network
facilities

1.
A national regulatory authority may, in accordance with
the provisions of Article 8, impose obligations on operators to
grant access to, and use of, specific facilities and/or associated
services, inter alia in situations where the national regulatory
authority considers that denial of access would hinder the
emergence of a sustainable competitive market at the retail
level, or would not be in the end-user’s interest.

National regulatory authorities may specify the precise
3.
information to be made available, the level of detail required
and the manner of publication.

Operators may be required inter alia:

Article 10

Obligation of non-discrimination

1.
A national regulatory authority may, in accordance with
the provisions of Article 8, impose obligations of non-discrimi-
nation, in relation to interconnection and/or network access.

that

Obligations of non-discrimination shall
the operator applies

in
2.
particular,
in
similar circumstances to other undertakings providing similar
services, and provides services and information to others under
the same conditions and of the same quality as they provide for
their own services, or those of their subsidiaries or partners.

ensure,
similar conditions

Article 11

Obligation of accounting separation

(a) to give third parties access to specified network elements

and/or facilities;

(b) not to withdraw access to facilities already granted;

(c) to provide resale of specified services;

(d) to grant open access to technical interfaces, protocols or
other key technologies that are indispensable for the inter-
operability of services;

(e) to provide collocation or other forms of facility sharing,

including duct, building or mast sharing;

1.
A national regulatory authority may, in accordance with
the provisions of Article 8, impose obligations for accounting
separation in relation to specified activities related to intercon-
nection and/or network access.

(f)

to provide specified services needed to ensure interoper-
ability of end-to-end services to users,
including facilities
for intelligent network services or roaming on mobile
networks;

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(g) to provide access to operational support systems or similar
software systems necessary to ensure fair competition in
the provision of services;

the rules used for the allocation of costs. Compliance with the
cost accounting system shall be verified by a qualified inde-
pendent body. A statement concerning compliance shall be
published annually.

(h) to interconnect networks or network facilities.

National regulatory authorities may attach to those obligations
conditions covering fairness, reasonableness, timeliness, trans-
parency and/or non-discrimination.

2. When imposing the obligations referred to in paragraph
1, national
in
particular of:

regulatory authorities

take account

shall

(a) the technical and economic viability of using or installing
competing facilities, in the light of the rate of market devel-
opment;

(b) the feasibility of providing the access proposed, in relation

to the capacity available;

(c) the initial investment by the facility owner, bearing in mind

the risks involved in making the investment;

CHAPTER IV

PROCEDURAL PROVISIONS

Article 14

Committee

The Commission shall be assisted by the Communications
1.
Committee instituted by Article 19 of Directive (on a common
regulatory framework for electronic communications networks
and services).

2. Where reference is made to this paragraph, the regulatory
procedure laid down in Article 5 of Decision 1999/468/EC
shall apply, in compliance with Article 7 and 8 thereof.

(d) the need to safeguard competition in the long term;

The period provided for in Article 5(6) of Decision

3.
1999/468/EC shall be three months.

(e) where appropriate, any relevant intellectual property rights.

Article 13

Article 15

Price control and cost accounting obligations

Publication of, and access to, information

for

interconnection and/or network access,

A national regulatory authority may, in accordance with
1.
including
the provisions of Article 8, impose price controls,
for cost orientation of prices and obligations
obligations
the provision of
concerning cost accounting systems,
specific types of
in
situations where a market analysis indicates that a potential
lack of
the operator
competition means
sustaining prices at an
concerned might be capable of
excessively high level, or applying a price squeeze,
to the
detriment of end users. National regulatory authorities shall
take into account the investment made by the operator and
the risks involved.

effective

that

National

regulatory authorities

2.
shall ensure that any
pricing methodology that is mandated serves to promote effi-
ciency and sustainable competition and maximise consumer
benefits.

3. Where an operator has an obligation regarding the cost
orientation of its prices, the burden of proof that charges are
derived from costs including a reasonable rate of return on
lie with the operator concerned. National
investment shall
regulatory authorities may require an operator to provide full
justification for its prices, and may, where appropriate, require
prices to be adjusted.

4.
National regulatory authorities shall ensure that, where
implementation of a cost accounting system is mandated in
order to support price controls, a description of
the cost
accounting system is made publicly available, showing at
least the main categories under which costs are grouped and

1. Member States shall ensure that the specific obligations
imposed on undertakings under this Directive are published
and that
and geographical
markets are identified. They shall ensure that up-to-date
information is made publicly available in a manner that guar-
antees all interested parties easy access to that information.

specific product/service

the

2. Member States shall send to the Commission a copy of all
such information published. The Commission shall make this
information available in a readily accessible form, and shall
distribute the information to the Communications Committee
and the High Level Communications Group as appropriate.

Article 16

Notification

1. Member States shall notify to the Commission by 31
December 2001 at the latest the national regulatory authorities
responsible for the tasks set out in this Directive.

National

regulatory authorities

2.
shall notify to the
Commission the names of operators deemed to have significant
market power for the purposes of this Directive, and the obli-
gations imposed upon them under this Directive. Any changes
affecting the obligations imposed upon undertakings or of the
undertakings affected under the provisions of this Directive
shall be notified to the Commission without delay.

C 365 E/222

EN

Official Journal of the European Communities

19.12.2000

Article 17

Review

The Commission shall periodically review the functioning of
this Directive and report to the European Parliament and to the
Council, on the first occasion not later than three years after
the date of entry into force of this Directive. For this purpose,
the Commission may request from Member States information,
which shall be supplied promptly on request.

Article 18

Transposition

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive by 31 December 2001 at
the latest. They shall
forthwith inform the Commission thereof.

When Member States adopt those provisions, they shall contain
a reference to this Directive or be accompanied by such a

their official publication.
reference on the occasion of
Member States shall determine how such reference is to be
made.

2. Member States shall communicate to the Commission the
text of the provisions of national law which they adopt in the
field governed by this Directive and of any subsequent
amendments to those provisions.

Article 19

Entry into force

This Directive shall enter into force on the twentieth day
following that of its publication in the Official Journal of the
European Communities.

Article 20

Addressees

This Directive is addressed to the Member States.

Conditions for access to digital television services broadcast to viewers in the Community

ANNEX

Part I E Conditions for conditional access systems to be applied in accordance with Article 6(1).

In relation to conditional access to digital television services broadcast to viewers in the Community, irrespective of the
means of transmission, Member States must ensure in accordance with Article 6 that the following conditions apply:

(a) conditional access systems operated on the market in the Community shall have the necessary technical capability
for cost-effective transcontrol allowing the possibility for full control by network operators at local or regional level
of the services using such conditional access systems;

(b) all operators of conditional access services, irrespective of the means of transmission, who produce and market

access services to digital television services shall:

E offer to all broadcasters, on a fair, reasonable and non-discriminatory basis compatible with Community
competition law, technical services enabling the broadcasters’ digitally-transmitted services to be received by
viewers authorised by means of decoders administered by the service operators, and comply with Community
competition law,

E keep separate financial accounts regarding their activity as conditional access providers;

(c) when granting licences to manufacturers of consumer equipment, holders of industrial property rights to conditional
access products and systems shall ensure that this is done on fair, reasonable and non-discriminatory terms. Taking
into account technical and commercial factors, holders of rights shall not subject the granting of
licences to
conditions prohibiting, deterring or discouraging the inclusion in the same product of:

E a common interface allowing connection with several other access systems, or

E means specific to another access system, provided that the licensee complies with the relevant and reasonable
conditions ensuring, as far as he is concerned, the security of transactions of conditional access system operators.

Part II E Other associated facilities to be considered under the review procedure in Article 6(2).

E Access to application program interfaces (APIs);

E Access to electronic programme guides (EPGs).